Earnings Conference Call Second Quarter 2020 August 6, 2020 9:00am Central Time
Distinctive Purpose and Operating Philosophy Improving Lives Our Purpose Unlocking Energy Our Business Customer Advocates People Oriented Technology with Impact Our Operating Driven to Improve Principles Guided…
ChampionXs COVID-19 Response ChampionXs operations are classified as critical infrastructure and our manufacturing and field locations remain operational Continue to mobilize ChampionXs Crisis Management Team Virtual situation room,…
Recent Highlights Relative revenue stability in Q2-20 Robust cash generation in Q2-20 Consolidated revenue of 298.9 million and pro forma revenue Cash from operating activities of 48.8 million, after paying of 614.7 million, down…
Macro Environment Context U.S. and Worldwide Rig Count (1) E&P Capex Spend (3) Worldwide Oil Production (4) % U.S. % North America 70% millions of barrels 75% per day 95 95 95 97 96 95 96 97 2,256 2,196 60% in billions 100 95…
Soma Somasundaram President and Chief Executive Officer 7 Copyright Copyright 2020 2020 ChampionX. ChampionX. AllAll rights rights reserved. reserved.
Integration & Synergy Capture Update Cost Synergy Annualized Run-Rate Tracker Integration on track and progressing as scheduled Continue to expect run-rate of 75 million of cost synergies within 24 months of 75M closing, including…
Jay Nutt Senior Vice President & Chief Financial Officer 10 Copyright Copyright 2020 2020 ChampionX. ChampionX. AllAll rights rights reserved. reserved.
Consolidated Results Consolidated actual results for Q2-20 include the full Three Months Ended Variance Year-over- quarter for the legacy Apergy businesses and June (in millions, except per share amounts) Q2-20 Q1-20 Q2-19…
Pro Forma Consolidated Results Three Months Ended Variance Sequential pro forma revenue decrease of 25% due to Year-over- Q2-20 Q1-20 Q2-19 Sequential significant reduction in E&P capital spending and (in millions, except per share…
Production Chemical Technologies Sequential pro forma revenue decrease of 15% driven Three Months Ended Variance Year- by significant curtailment of global oil production Q2-20 Q1-20 Q2-19 Sequential over- (in millions, except…
Production & Automation Technologies Sequential revenue decrease of 44% due to lower Three Months Ended Variance volumes driven by the rapid reduction in worldwide E&P Year- spending Q2-20 Q1-20 Q2-19 Sequential over- (in millions,…
Drilling Technologies Sequential revenue decrease of 63% driven by the significant decline in worldwide drilling activity, Three Months Ended Variance Year-over- customer destocking of polycrystalline diamond cutter (in millions,…
Reservoir Chemical Technologies Three Months Ended Variance Sequential pro forma revenue decrease of 43% driven Year- by the significant decline in worldwide drilling activity Q2-20 Q1-20 Q2-19 Sequential over- (in millions, except…
Liquidity & Capital Allocation Strong Balance Sheet Disciplined Capital Allocation Priorities Near-term: in Millions June 30, 2020 Prioritize essential investments to maintain critical R&D and growth projects Use excess free…
Outlook For segment level revenue, we expect to see a modest sequential increase in our production-related segments of Production Chemical Technologies and Production & Automation Technologies due to operators bringing production…
Appendix 19 Copyright Copyright 2020 2020 ChampionX. ChampionX. AllAll rights rights reserved. reserved.
Drilling Technologies Polycrystalline Diamond Cutter Destocking and Restocking Cycles 60% 2017 Recovery 2009-2010 Recovery Restocking of Restocking of 2015 Restocking of Inventories 40% Inventories Inventories during the…
Reconciliations of Non-GAAP Measures 21 Copyright Copyright 2020 2020 ChampionX. ChampionX. AllAll rights rights reserved. reserved.
Notices & Disclaimers About Non-GAAP Measures In addition to financial results determined in accordance with generally accepted accounting principles in the United States (GAAP), this news release presents non-GAAP financial…
Reconciliation from Net Income to Adjusted Net Income and Adjusted EBITDA (in millions, except earnings per share) Q2-20 Q1-20 Q2-19 Revenue 298.9 261.4 306.2 Net income (loss) attributable to ChampionX (109.6) (633.7) 22.9…
Reconciliation from Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share (in millions, except earnings per share) Q2-20 Q1-20 Q2-19 Diluted earnings (loss) per share attributable to (0.95) (8.18) 0.30 ChampionX Per…
Actual Segment Data Segment revenue Q2-20 Q1-20 Q2-19 Adjusted EBITDA Q2-20 Q1-20 Q2-19 Production Chemical Technologies 136.0 - - Production Chemical Technologies 22.4 - - Production & Automation Technologies 114.7 205.5 235.8…
Reconciliation from Pro Forma Net Income to Pro Forma Adjusted EBITDA (in millions, except earnings per share) Q2-20 Q1-20 Q2-19 Pro forma revenue 614.7 820.7 891.0 Pro forma net income (loss) attributable to ChampionX (60.1)…
Reconciliation from Pro Forma Net Income to Pro Forma Adjusted EBITDA 12 months ended June 30, 2020 (in millions) As Reported Adjustments Pro Forma Net income (loss) attributable to ChampionX (733.8) 58.5 (675.3) Pre-tax…
Pro Forma Segment Data Segment revenue Q2-20 Q1-20 Q2-19 Adjusted EBITDA Q2-20 Q1-20 Q2-19 Production Chemical Technologies 433.1 510.2 502.3 Production Chemical Technologies 58.5 92.8 75.1 Production & Automation Technologies 114.7…
Reconciliation of Actual Results to Pro Forma Results Three Months Ended June 30, 2020 Three Months Ended March 31, 2020 Three Months Ended June 30, 2019 (in millions) As Reported Adjustments Pro Forma As Reported Adjustments Pro…
Reconciliation of Free Cash Flow (in millions) Q2-20 Q1-20 Q2-19 Cash provided by operating activities 48.8 29.2 39.4 Capital expenditures (11.9) (7.5) (13.0) Free cash flow 37.0 21.8 26.4 Free cash flow to revenue 12% 8%…
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