Processing 
                                                Solutions 
                         High                      and 
                    Specification   Wireline    Ancillary 
                         Rigs       Services    Services     Other    Total 
                    --------------  ---------  -----------  -------  -------- 
                              Nine Months Ended September 30, 2023 
                    --------------------------------------------------------- 
Net income (loss)   $         34.0  $     8.9  $      12.1  $(33.3)  $21.7 
  Interest 
   expense, net                 --         --           --     2.8     2.8 
  Income tax 
   expense                      --         --           --     5.4     5.4 
  Depreciation and 
   amortization               14.7        8.4          5.0     1.2    29.3 
                     -------------   --------   ----------   -----    ---- 
EBITDA                        48.7       17.3         17.1   (23.9)   59.2 
  Impairment of 
   fixed assets                 --         --           --     0.4     0.4 
  Equity based 
   compensation                 --         --           --     3.6     3.6 
  Loss on 
   retirement of 
   debt                         --         --           --     2.4     2.4 
  Gain on disposal 
   of property and 
   equipment                    --         --           --    (1.6)   (1.6) 
  Severance and 
   reorganization 
   costs                        --         --           --     0.4     0.4 
  Acquisition 
   related costs                --         --           --     1.6     1.6 
                     -------------   --------   ----------   -----    ---- 
Adjusted EBITDA     $         48.7  $    17.3  $      17.1  $(17.1)  $66.0 
                     -------------   --------   ----------   -----    ---- 
 
 

Free Cash Flow

We believe Free Cash Flow is an important financial measure for use in evaluating the Company's financial performance, as it measures our ability to generate additional cash from our business operations. Free Cash Flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of Free Cash Flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view Free Cash Flow as supplemental to our entire statement of cash flows.

The following table is a reconciliation of consolidated operating cash flows to Free Cash Flow for the respective periods, in millions:

 
                     Three Months Ended         Nine Months Ended 
                 --------------------------  ------------------------ 
                 September 30,   September    September    September 
                      2024       30, 2023     30, 2024     30, 2023 
                 -------------  -----------  -----------  ----------- 
  Net cash 
   provided by 
   operating 
   activities     $  17.7       $ 12.2       $ 51.8       $ 53.1 
  Purchase of 
   property and 
   equipment         (6.9)       (15.0)       (28.7)       (27.9) 
                     ----        -----        -----        ----- 
Free Cash Flow    $  10.8       $ (2.8)      $ 23.1       $ 25.2 
                     ----  ---   -----        -----  ---   -----  --- 
 
  Add back: 
   Purchase of 
   property and 
   equipment 
   related to 
   asset 
   acquisition         --          7.3           --          7.3 
                     ----  ---   -----  ---   -----  ---   -----  --- 
Modified Free 
 cash Flow        $  10.8       $  4.5       $ 23.1       $ 32.5 
                     ----  ---   -----  ---   -----  ---   -----  --- 
 
  Adjusted 
   EBITDA         $  25.1       $ 24.0       $ 57.0       $ 66.0 
                     ----  ---   -----  ---   -----  ---   -----  --- 
Free cash Flow 
 conversion - 
 Free cash flow 
 as a 
 percentage of 
 EBITDA                43%         (12)%         41%          38% 
                     ----        -----        -----        ----- 
Modified Free 
 cash Flow 
 conversion - 
 Modified Free 
 cash Flow as a 
 percentage of 
 EBITDA                43%          19%          41%          49% 
                     ----        -----        -----        ----- 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241025673583/en/

 
    CONTACT:    Melissa Cougle 

Chief Financial Officer

(713) 935-8900

InvestorRelations@rangerenergy.com

(END) Dow Jones Newswires

October 28, 2024 06:34 ET (10:34 GMT)