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AESI...Atlas Energy Solutions Announces Fourth Quarter and Year End 2024 Results; Completes Previously Announced Acquisition of Moser Energy Systems
https://finance.yahoo.com/news/atlas-energy-solutions-announces-fourth-213000920.html

AUSTIN, Texas, February 24, 2025--(BUSINESS WIRE)--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

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 [phone]. 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.
https://finance.yahoo.com/news/atlas-energy-solutions-announces-fourth-213000920.html