Atlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the
“Company”) today reported financial and operating results for the
fourth quarter and fiscal year ended December 31, 2024.
Year End 2024 Financial Highlights and Operational
Updates
- Total sales of $1.1 billion
- Net income of $59.9 million (6% Net Income Margin)
- Adjusted EBITDA of $288.9 million (27% Adjusted EBITDA Margin)
(1)
- Net cash provided by operating activities of $256.5
million
- Adjusted Free Cash Flow of $251.3 million (24% Adjusted Free
Cash Flow Margin) (1)
- Increased quarterly dividend to $0.25 per share, payable
February 28, 2025
- Completed previously announced acquisition of Moser Energy
Systems
Financial
Summary
Year Ended
December 31,
2024
December 31,
2023
December 31,
2022
(in thousands, except
percentages)
Sales
$
1,055,957
$
613,960
$
482,724
Net income
$
59,944
$
226,493
$
217,006
Net Income Margin
6
%
37
%
45
%
Adjusted EBITDA
$
288,902
$
329,655
$
264,026
Adjusted EBITDA Margin
27
%
54
%
55
%
Net cash provided by operating
activities
$
256,460
$
299,027
$
206,012
Adjusted Free Cash Flow
$
251,340
$
291,131
$
228,553
Adjusted Free Cash Flow Margin
24
%
47
%
47
%
(1) Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
are non-GAAP financials measures. See Non-GAAP Financial Measures
for a discussion of these measures and a reconciliation of these
measures to our most directly comparable financial measures
calculated and presented in accordance with GAAP.
John Turner, President & Chief Executive Officer, commented,
“The acquisition of Moser Energy Systems is a platform investment
that provides Atlas with exposure to the production-end of the oil
and gas value chain, along with new distributed power end-markets.
The acquisition strengthens Atlas's market position as a leading
provider of energy solutions and we expect the acquisition to help
mitigate the volatility of future cash flows. This acquisition,
coupled with our January equity offering, provides the company with
a compelling runway for future growth. We expect 2025 to be a year
of operational excellence as we continue to ramp up Dune Express
operations, execute upon our leading last-mile and logistics
platform, and look to enhance our new distributed power solutions
offerings."
Year End 2024 Financial Results Total sales for the year
ended December 31, 2024 increased $442.0 million, or 72.0% when
compared to the year ended December 31, 2023, to $1.1 billion.
Product sales increased $47.3 million, or 10.1% when compared to
the prior year, to $515.4 million. Service sales increased by
$394.7 million, or 270.7% when compared to the prior year, to
$540.5 million.
Cost of sales (excluding depreciation, depletion and accretion
expense) (“cost of sales”) for the year ended December 31, 2024
increased by $464.8 million, or 178.5% when compared to the prior
year, to $725.2 million. The increase in our cost of sales was
primarily driven by an increase in product and service sales
associated with the addition of the Hi-Crush operations acquired in
March 2024, higher costs incurred in the second and third quarters
of 2024 due to fire-related temporary loadout operations at one of
our Kermit facilities, our operational improvement initiatives, and
delays in dredge commissioning.
Selling, general and administrative expenses (“SG&A”) for
the year ended December 31, 2024 increased by $57.6 million, or
118.5% when compared to the prior year, to $106.2 million. Included
within our SG&A is $22.4 million in stock-based compensation
and $19.2 million in other acquisition related costs.
Net income for the year ended December 31, 2024 was $59.9
million, and Adjusted EBITDA for the year ended December 31, 2024
was $288.9 million.
Fourth Quarter 2024 Financial Results Fourth quarter 2024
total sales decreased $33.1 million, or 10.9% sequentially, to
$271.3 million. Product sales decreased $16.9 million, or 11.6%,
sequentially, to $128.4 million. Fourth quarter sales volumes
decreased to 5.1 million tons or by 15%, coupled with lower average
pricing recognized during the period. Service sales decreased by
$16.2 million, or 10.2%, sequentially, to $142.9 million.
Fourth quarter 2024 cost of sales decreased by $34.3 million, or
15.2%, sequentially, to $191.0 million, which consists of product
costs of sales, inclusive of royalties, of $66.7 million and
services cost of sales of $124.3 million. SG&A for the fourth
quarter of 2024 increased $0.05 million, or 0.2%, sequentially, to
$25.5 million. Net Income for the fourth quarter of 2024 was $14.4
million, representing an increase of $10.5 million, or 269.2%,
sequentially. Adjusted EBITDA for the fourth quarter of 2024 was
$63.2 million, representing a decrease of $7.9 million, or 11.1%,
sequentially.
Liquidity, Capital Expenditures and Other As of December
31, 2024, the Company’s total liquidity was $206.5 million, which
was comprised of $71.7 million in cash and cash equivalents, $54.8
million of availability under the Company’s ABL Facility, and $80.0
million of availability under the Company's Delayed Draw Term Loan
Facility. The Company had $70.0 million of borrowings outstanding
under the ABL Facility and $0.2 million of outstanding undrawn
letters of credit.
Net cash used in investing activities was $512.7 million for the
year ended December 31, 2024, driven largely by costs associated
with the construction of the Dune Express, the acquisition of
Hi-Crush, and additional OnCore deployments.
As of December 31, 2024, the Company had 110,217,322 shares of
its commons stock, par value $0.01 per share ("common stock"),
outstanding.
Subsequent Events Acquisition of Moser Energy Systems On
February 24, 2025, Atlas acquired Moser Acquisition, Inc. and its
wholly-owned subsidiary Moser Engine Service, Inc. (d/b/a Moser
Energy Systems) ("Moser"), a leading provider of distributed power
solutions, in a transaction valued at $220.0 million (the “Moser
Acquisition”). The transaction consideration included $180.0
million of cash and approximately 1.7 million shares (the “Stock
Consideration”) of common stock, valued at $40.0 million based on
the 20-day trailing volume-weighted average price ending at the
close of trading on Friday, January 24, 2025. The Stock
Consideration is subject to revision for customary post-closing
adjustments. For 90 days following the closing, all or any portion
of the Stock Consideration is subject to redemption at the option
of Atlas, with any such redemption to be paid in cash. For more
information regarding the transaction, please refer to the
Company’s website at https://ir.atlas.energy/ for the acquisition
press release and related presentation.
Underwritten Public Offering of Common Stock On February 3,
2025, the Company completed an underwritten public offering (the
“Offering”) of an aggregate of 11,500,000 shares of its common
stock at a public offering price of $23.00 per share, for total
gross proceeds of $264.5 million and net proceeds of approximately
$254.1 million, after deducting underwriting discounts and
commissions. The Company granted the underwriters a 30-day option
to purchase up to 1,725,000 additional shares of its common
stock.
The Company used $171.3 million of the net proceeds it received
from the Offering to repay indebtedness, including a portion of its
secured PIK toggle seller note and outstanding borrowings under its
ABL facility. The remainder of the net proceeds may be used to fund
the redemption of the Stock Consideration, if exercised by the
Company, subject to market conditions, and for general corporate
purposes, including power-related growth capital expenditures
following completion of the Moser Acquisition.
2025 Term Loan Credit Facility On February 21, 2025, the Company
entered into a credit agreement (the “2025 Term Loan Credit
Agreement”) with Stonebriar Commercial Finance LLC (“Stonebriar”),
as administrative agent and initial lender, pursuant to which
Stonebriar extended Atlas LLC a term loan credit facility comprised
of a $540.0 million single advance term loan that was made on
February 21, 2025 (the “2025 Term Loan Credit Facility”). The
Company used the proceeds from the 2025 Term Loan Credit Facility
(i) to refinance the existing 2023 Term Loan Credit Facility and
the ADDT Loan, (ii) to finance the cash consideration for the Moser
Acquisition, and (iii) for general corporate purposes.
Quarterly Cash Dividend On February 11, 2025, the Board of
Directors (the “Board") declared a dividend to common stockholders
of $0.25 per share, or approximately $30.4 million in the aggregate
to shareholders. The dividend will be payable on February 28, 2025
to shareholders of record at the close of business on February 21,
2025.
Conference Call Information The Company will host a
conference call to discuss financial and operational results on
Tuesday, February 25, 2025 at 9:00am Central Time (10:00am Eastern
Time). Individuals wishing to participate in the conference call
should dial (877) 407-4133. A live webcast will be available at
https://ir.atlas.energy/. Please access the webcast or dial in for
the call at least 10 minutes ahead of the start time to ensure a
proper connection. An archived version of the conference call will
be available on the Company’s website shortly after the conclusion
of the call.
The Company will also post an updated investor presentation
titled “Investor Presentation February 2025”, in addition to a
"Year-End 2024 Capital Projects Update" video, at
https://ir.atlas.energy/ in the "Presentations” section under “News
& Events” tab on the Company’s Investor Relations webpage prior
to the conference call.
About Atlas Energy Solutions Atlas Energy Solutions Inc.
(NYSE: AESI) is a leading solutions provider to the energy
industry. Atlas’ portfolio of offerings includes oilfield
logistics, distributed power systems, and the largest proppant
supply network in the Permian Basin. With a focus on leveraging
technology, automation, and remote operations to enhance
efficiencies, Atlas is centered around a core mission of improving
human beings’ access to hydrocarbons that power our lives and, by
doing so, maximizing value creation for our shareholders.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the “Securities Act”), and Section 21E of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). Statements that are
predictive or prospective in nature, that depend upon or refer to
future events or conditions or that include the words “may,”
“assume,” “forecast,” “position,” “strategy,” “potential,”
“continue,” “could,” “will,” “plan,” “project,” “budget,”
“predict,” “pursue,” “target,” “seek,” “objective,” “believe,”
“expect,” “anticipate,” “intend,” “estimate” and other expressions
that are predictions of or indicate future events and trends and
that do not relate to historical matters identify forward-looking
statements. Examples of forward-looking statements include, but are
not limited to, statements regarding the anticipated financial
performance of Atlas following the Moser Acquisition; expected
accretion to Adjusted EBITDA; expectations regarding the leverage
and dividend profile of Atlas following the Moser Acquisition; the
expected synergies and efficiencies to be achieved as a result of
the Moser Acquisition; expansion and growth of Atlas’s business;
future investments in our new distributed power platform; our
business strategy, industry, future operations and profitability;
expected capital expenditures and the impact of such expenditures
on our performance; statements about our financial position,
production, revenues and losses; our capital programs; management
changes; current and potential future long-term contracts; and our
future business and financial performance. Although forward-looking
statements reflect our good faith beliefs at the time they are
made, we caution you that these forward-looking statements are
subject to a number of risks and uncertainties, most of which are
difficult to predict and many of which are beyond our control.
These risks include but are not limited to: uncertainties as to
whether the transaction will achieve its anticipated benefits and
projected synergies within the expected time period or at all;
Atlas’s ability to integrate Moser’s operations in a successful
manner and in the expected time period; risks that the anticipated
tax treatment of the Moser Acquisition is not obtained; unforeseen
or unknown liabilities; potential litigation relating to the Moser
Acquisition; unexpected future capital expenditures; the effect of
the completion of the Moser Acquisition on the parties’ business
relationships and businesses generally; potential difficulties in
retaining employees as a result of the Moser Acquisition; risks
related to future investments in our new distributed power
platform; potential negative effects of the completion of the Moser
Acquisition on the market price of Atlas’s common stock or
operating results; our ability to successfully execute our stock
repurchase program or implement future stock repurchase programs;
commodity price volatility, including volatility stemming from the
ongoing armed conflicts between Russia and Ukraine and Israel and
Hamas; increasing hostilities and instability in the Middle East;
adverse developments affecting the financial services industry; our
ability to complete growth projects on time and on budget; the risk
that stockholder litigation in connection with our recent corporate
reorganization may result in significant costs of defense,
indemnification and liability; changes in general economic,
business and political conditions, including changes in the
financial markets; transaction costs; actions of OPEC+ to set and
maintain oil production levels; the level of production of crude
oil, natural gas and other hydrocarbons and the resultant market
prices of crude oil; inflation; environmental risks; operating
risks; regulatory changes; lack of demand; market share growth; the
uncertainty inherent in projecting future rates of reserves;
production; cash flow; access to capital; the timing of development
expenditures; the ability of our customers to meet their
obligations to us; our ability to maintain effective internal
controls; and other factors discussed or referenced in our filings
made from time to time with the U.S. Securities and Exchange
Commission (“SEC”), including those discussed under the heading
“Risk Factors” in Annual Report on Form 10-K, filed with the SEC on
February 27, 2024, and any subsequently filed Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. Readers are cautioned
not to place undue reliance on forward-looking statements, which
speak only as of the date hereof. Factors or events that could
cause our actual results to differ may emerge from time to time,
and it is not possible for us to predict all of them. We undertake
no obligation to publicly update or revise any 3 forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as may be required by law.
Atlas Energy Solutions Inc.
Condensed Consolidated Statements of Income (in thousands,
except per share data)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
December 31,
2022
(unaudited)
(unaudited)
(unaudited)
Product sales
$
128,445
$
145,347
$
99,988
$
515,434
$
468,119
$
408,446
Service sales
142,893
159,087
41,150
540,523
145,841
74,278
Total sales
271,338
304,434
141,138
1,055,957
613,960
482,724
Cost of sales (excluding depreciation,
depletion and accretion expense)
190,967
225,347
66,567
725,196
260,396
198,918
Depreciation, depletion and accretion
expense
30,476
26,069
11,625
98,747
39,798
27,498
Gross profit
49,895
53,018
62,946
232,014
313,766
256,308
Selling, general and administrative
expense (including stock and unit-based compensation expense of
$6,420, $6,289, $3,749, $22,381, 7,409 and $678, respectively.)
25,511
25,463
13,648
106,248
48,636
24,317
Amortization expense of acquired
intangible assets
3,743
3,744
—
12,316
—
—
Loss on disposal of assets
—
8,574
—
19,672
—
—
Insurance recovery (gain)
(10,098
)
—
—
(20,098
)
—
—
Operating income
30,739
15,237
49,298
113,876
265,130
231,991
Interest (expense), net
(12,018
)
(11,193
)
(2,230
)
(38,647
)
(7,689
)
(15,760
)
Other income, net
101
289
(8
)
551
430
2,631
Income before income taxes
18,822
4,333
47,060
75,780
257,871
218,862
Income tax expense
4,420
415
11,010
15,836
31,378
1,856
Net income
$
14,402
$
3,918
$
36,050
$
59,944
$
226,493
$
217,006
Less: Pre-IPO net income attributable to
Atlas Sand Company, LLC
$
54,561
Less: Net income attributable to
redeemable noncontrolling interest
313
66,503
Net income attributable to Atlas Energy
Solutions Inc.
$
14,402
$
3,918
$
35,737
$
59,944
$
105,429
$
217,006
Net income per common share
Basic
$
0.13
$
0.04
$
0.36
$
0.55
$
1.50
Diluted
$
0.13
$
0.04
$
0.36
$
0.55
$
1.48
Weighted average common shares
outstanding
Basic
110,216
109,883
99,566
108,235
70,450
Diluted
111,262
111,078
100,242
109,176
71,035
Atlas Energy Solutions Inc.
Condensed Consolidated Statements of Cash Flows ( in
thousands)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
December 31,
2022
(unaudited)
(unaudited)
(unaudited)
Operating activities:
Net income
$
14,402
$
3,918
$
36,050
$
59,944
$
226,493
$
217,006
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and accretion
expense
31,342
26,972
12,266
102,207
41,634
28,617
Amortization of debt discount
1,038
1,045
292
3,573
761
457
Amortization of deferred financing
costs
117
122
67
435
337
442
Amortization expense of acquired
intangible assets
3,743
3,744
—
12,316
—
—
Loss on disposal of assets
—
8,574
—
19,672
—
—
Stock and unit-based compensation
6,420
6,289
3,749
22,381
7,409
678
Deferred income tax
4,569
154
10,142
15,002
29,201
(2
)
Commodity derivatives gain
—
—
—
—
—
(1,842
)
Settlements on commodity derivatives
—
—
—
—
—
2,137
Other
62
(906
)
(4
)
(1,593
)
139
293
Changes in operating assets and
liabilities:
9,160
35,277
22,941
22,523
(6,947
)
(41,774
)
Net cash provided by operating
activities
70,853
85,189
85,503
256,460
299,027
206,012
Investing activities:
Purchases of property, plant and
equipment
(76,431
)
(86,276
)
(119,793
)
(373,983
)
(365,486
)
(89,592
)
Hi-Crush acquisition, net of cash
acquired
(11,192
)
—
—
(153,425
)
—
—
Proceeds from insurance recovery
4,700
10,000
—
14,700
—
—
Net cash used in investing
activities
(82,923
)
(76,276
)
(119,793
)
(512,708
)
(365,486
)
(89,592
)
Financing Activities:
Proceeds from term loan borrowing
20,000
(3,039
)
—
168,500
—
—
Proceeds from ABL credit facility
20,000
—
—
70,000
—
—
Principal payments on term loan
borrowings
(4,452
)
(4,333
)
—
(14,383
)
(16,573
)
(28,544
)
Issuance costs associated with debt
financing
(6
)
(37
)
—
(1,189
)
(4,397
)
(233
)
Payments under finance leases
(851
)
(863
)
(69
)
(2,625
)
(2,001
)
(1,010
)
Repayment of equipment finance notes
(1,036
)
(1,456
)
(3,563
)
—
—
Dividends and distributions
(26,451
)
(25,271
)
(20,005
)
(96,895
)
(62,163
)
—
Taxes withheld on vesting RSUs
(2,067
)
—
—
(2,067
)
—
—
Prepayment fee on 2021 Term Loan Credit
Facility
—
—
—
—
(2,649
)
—
Net proceeds from IPO
—
—
—
—
303,426
—
Payment of offering costs
—
—
—
—
(6,020
)
—
Member distributions prior to IPO
—
—
—
—
(15,000
)
(45,024
)
Net cash provided by (used in)
financing activities
5,137
(34,999
)
(20,074
)
117,778
194,623
(74,811
)
Net decrease in cash and cash
equivalents
(6,933
)
(26,086
)
(54,364
)
(138,470
)
128,164
41,609
Cash and cash equivalents, beginning of
period
78,637
104,723
264,538
210,174
82,010
40,401
Cash and cash equivalents, end of
period
$
71,704
$
78,637
$
210,174
$
71,704
$
210,174
$
82,010
Atlas Energy Solutions Inc.
Condensed Consolidated Balance Sheets (in thousands)
As of
As of
December 31,
2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
71,704
$
210,174
Accounts receivable, net
165,967
71,170
Inventories, prepaid expenses and other
current assets
51,747
37,342
Total current assets
289,418
318,686
Property, plant and equipment, net
1,486,246
934,660
Right-of-use assets
18,666
4,151
Goodwill
68,999
—
Intangible assets
105,867
1,767
Other long-term assets
3,456
2,422
Total assets
$
1,972,652
$
1,261,686
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable, including related
parties
119,244
61,159
Accrued liabilities and other current
liabilities
80,085
31,433
Current portion of long-term debt
43,736
—
Total current liabilities
243,065
92,592
Long-term debt, net of discount and
deferred financing costs
466,989
172,820
Deferred tax liabilities
206,872
121,529
Other long-term liabilities
19,170
6,921
Total liabilities
936,096
393,862
Total stockholders' and members'
equity
1,036,556
867,824
Total liabilities and stockholders’
equity
$
1,972,652
$
1,261,686
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash
Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow
Conversion and Maintenance Capital Expenditures are non-GAAP
supplemental financial measures used by our management and by
external users of our financial statements such as investors,
research analysts and others, in the case of Adjusted EBITDA, to
assess our operating performance on a consistent basis across
periods by removing the effects of development activities, provide
views on capital resources available to organically fund growth
projects and, in the case of Adjusted Free Cash Flow, assess the
financial performance of our assets and their ability to sustain
dividends or reinvest to organically fund growth projects over the
long term without regard to financing methods, capital structure,
or historical cost basis.
These measures do not represent and should not be considered
alternatives to, or more meaningful than, net income, income from
operations, net cash provided by operating activities or any other
measure of financial performance presented in accordance with GAAP
as measures of our financial performance. Adjusted EBITDA and
Adjusted Free Cash Flow have important limitations as analytical
tools because they exclude some but not all items that affect net
income, the most directly comparable GAAP financial measure. Our
computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted
Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash
Flow Conversion and Maintenance Capital Expenditures may differ
from computations of similarly titled measures of other
companies.
Non-GAAP Measure
Definitions:
- We define Adjusted EBITDA net income before
depreciation, depletion and accretion expense, amortization expense
of acquired intangible assets, interest expense, income tax
expense, stock and unit-based compensation, loss on extinguishment
of debt, loss on disposal of assets, insurance recovery (gain),
unrealized commodity derivative (gain) loss, other acquisition
related costs, and other non-recurring costs. Management believes
Adjusted EBITDA is useful because it allows management to more
effectively evaluate the Company’s operating performance and
compare the results of its operations from period to period and
against our peers without regard to financing method or capital
structure. We exclude the items listed above from net income in
arriving at Adjusted EBITDA because these amounts can vary
substantially from company to company within our industry depending
upon accounting methods and book values of assets, capital
structures and the method by which the assets were acquired.
Certain prior period non-recurring costs of goods sold are now
included as an add-back to adjusted EBITDA in order to conform to
the current period presentation and to more accurately describe the
Company’s operating performance and results
period-over-period.
- We define Adjusted EBITDA Margin as Adjusted EBITDA
divided by total sales.
- We define Adjusted Free Cash Flow as Adjusted EBITDA
less Maintenance Capital Expenditures. Management believes that
Adjusted Free Cash Flow is useful to investors as it provides a
measure of the ability of our business to generate cash.
- We define Adjusted Free Cash Flow Margin as Adjusted
Free Cash Flow divided by total sales.
- We define Adjusted Free Cash Flow Conversion as Adjusted
Free Cash Flow divided by Adjusted EBITDA.
- We define Maintenance Capital Expenditures as capital
expenditures excluding growth capital expenditures and
reconstruction of previously incurred growth capital
expenditures.
Atlas Energy Solutions Inc. –
Supplemental Information Reconciliation of Adjusted EBITDA and
Adjusted Free Cash Flow to Net Income (unaudited, in
thousands)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
December 31,
2022
Net income
$
14,402
$
3,918
$
36,050
$
59,944
$
226,493
$
217,006
Depreciation, depletion and accretion
expense
31,342
26,972
12,266
102,207
41,634
28,617
Amortization expense of acquired
intangible assets
3,743
3,744
—
12,316
—
—
Interest expense
12,257
11,831
4,731
43,078
17,452
15,803
Income tax expense
4,420
415
11,010
15,836
31,378
1,856
EBITDA
$
66,164
$
46,880
$
64,057
$
233,381
$
316,957
$
263,282
Stock and unit-based compensation
6,420
6,289
3,749
22,381
7,409
678
Unrealized commodity derivative (gain)
loss
—
—
—
—
—
66
Loss on disposal of assets (1)
—
8,574
—
19,672
—
—
Insurance recovery (gain)(2)
(10,098
)
—
—
(20,098
)
—
—
Other non-recurring costs (3)
—
6,918
441
14,335
4,838
—
Other acquisition related costs (4)
750
2,390
451
19,231
451
—
Adjusted EBITDA
$
63,236
$
71,051
$
68,698
$
288,902
$
329,655
$
264,026
Maintenance Capital Expenditures (5)
$
15,302
$
12,382
$
12,180
$
37,562
$
38,524
$
35,473
Adjusted Free Cash Flow
$
47,934
$
58,669
$
56,518
$
251,340
$
291,131
$
228,553
Atlas Energy Solutions Inc. –
Supplemental Information Reconciliation of Adjusted Free Cash Flow
to Net Cash Provided by Operating Activities (unaudited, in
thousands, except percentages)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
December 31,
2022
Net cash provided by operating
activities
$
70,853
$
85,189
$
85,503
$
256,460
$
299,027
$
206,012
Current income tax expense
(benefit)(5)
(149
)
261
868
834
2,177
1,858
Change in operating assets and
liabilities
(9,160
)
(35,277
)
(22,941
)
(22,523
)
6,947
41,774
Cash interest expense (5)
11,102
10,664
4,371
39,070
16,354
14,904
Maintenance capital expenditures (5)
(15,302
)
(12,382
)
(12,180
)
(37,562
)
(38,524
)
(35,473
)
Other non-recurring costs (3)
—
6,918
441
14,335
4,838
—
Other acquisition related costs (4)
750
2,390
451
19,231
451
—
Insurance recovery (gain)(2)
(10,098
)
—
—
(20,098
)
—
—
Other
(62
)
906
5
1,593
(139
)
(522
)
Adjusted Free Cash Flow
$
47,934
$
58,669
$
56,518
$
251,340
$
291,131
$
228,553
Adjusted EBITDA Margin
23
%
23
%
49
%
27
%
54
%
55
%
Adjusted Free Cash Flow Margin
18
%
19
%
40
%
24
%
47
%
47
%
Adjusted Free Cash Flow Conversion
76
%
83
%
82
%
87
%
88
%
87
%
(1)
Represents loss on disposal of one of the
Company's dredge mining assets at its Kermit facility and loss on
disposal of assets as a result of the fire at one of the Kermit
plants that caused damage to the physical condition of the Kermit
asset group.
(2)
Represents insurance recovery (gain)
deemed collectible and legally enforceable as of December 31, 2024
related to the fire at one of the Kermit plants.
(3)
Other non-recurring costs includes costs
incurred during our Up-C simplification transaction, temporary
loadout, and other infrequent and unusual costs.
(4)
Represents acquisition costs include fees
paid to finance, legal, accounting and other advisors, employee
retention and benefit costs, and other operational and corporate
costs.
(5)
A reconciliation of the adjustment of
these items used to calculate Adjusted Free Cash Flow to the
Consolidated Financial Statements is included below.
Atlas Energy Solutions Inc. –
Supplemental Information Reconciliation of Maintenance Capital
Expenditures to Purchase of Property, Plant and Equipment
(unaudited, in thousands)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
December 31,
2022
Maintenance Capital
Expenditures, accrual basis reconciliation:
Purchases of property, plant and
equipment
$
76,431
$
86,276
$
119,793
$
373,983
$
365,486
$
89,592
Changes in operating assets and
liabilities associated with investing activities (1)
(11,118
)
(5,389
)
(1,828
)
(2,948
)
66,132
20,747
Less: Growth capital expenditures and
reconstruction of previously incurred growth capital
expenditures
(50,011
)
(68,505
)
(105,785
)
(333,473
)
(393,094
)
(74,866
)
Maintenance Capital Expenditures,
accrual basis
$
15,302
$
12,382
$
12,180
$
37,562
$
38,524
$
35,473
(1)
Positive working capital changes reflect
capital expenditures in the current period that will be paid in a
future period. Negative working capital changes reflect capital
expenditures incurred in a prior period but paid during the period
presented.
Atlas Energy Solutions Inc. –
Supplemental Information Reconciliation of Current Income Tax
Expense to Income Tax Expense (unaudited, in
thousands)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
December 31,
2022
Current tax expense reconciliation:
Income tax expense
$
4,420
$
415
$
11,010
$
15,836
$
31,378
$
1,856
Less: deferred tax expense (benefit)
(4,569
)
(154
)
(10,142
)
(15,002
)
(29,201
)
2
Current income tax expense
(benefit)
$
(149
)
$
261
$
868
$
834
$
2,177
$
1,858
Atlas Energy Solutions Inc. –
Supplemental Information Cash Interest Expense to Income Expense,
Net (unaudited, in thousands)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
December 31,
2022
Cash interest expense reconciliation:
Interest expense, net
$
12,018
$
11,193
$
2,230
$
38,647
$
7,689
$
15,760
Less: Amortization of debt discount
(1,038
)
(1,045
)
(292
)
(3,573
)
(761
)
(457
)
Less: Amortization of deferred financing
costs
(117
)
(122
)
(67
)
(435
)
(337
)
(442
)
Less: Interest income
239
638
2,500
4,431
9,763
43
Cash interest expense
$
11,102
$
10,664
$
4,371
$
39,070
$
16,354
$
14,904
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224158881/en/
Investor Contact
Kyle Turlington 5918 W Courtyard Drive, Suite #500 Austin, Texas
78730 United States T: 512-220-1200 IR@atlas.energy
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