附件99.1
愛文思控股宣佈2024年第三季度業績
| • | 儘管Q3美國鑽井數量平均下降約3%，但營業收入同比增長約4% |
| • | 2024年第三季度連續季度淨虧損改善，減少約28% |
| • | 2024年第三季度連續季度調整後的EBITDAA 2024年第三季度連續季度調整後的EBITDA增長約47% |
| • | 2024年第三季度的營業收入、淨虧損和調整後的EBITDA分別爲1.382億美元、（1.01）億美元和1.43億美元 |
| • | 水泥營業收入同比增長約12% |
| • | 2024年9月30日的總流動資金爲4330萬美元 |
休斯頓 Nine Energy Service公司（以下簡稱"Nine"或"公司"）（紐約證券交易所：NINE）報告2024年第三季度營業收入爲1382萬美元，淨虧損爲（1010）萬美元，每股攤薄虧損爲（0.26）美元和每股基本攤薄虧損爲（0.26）美元，調整後的EBITDA爲1430萬美元。該公司最初提供的2024年第三季度營業收入指導範圍爲1270萬至1370萬美元，實際結果超出了提供的範圍。
「儘管美國的平均鑽機數量季度環比下降，但我們的營業收入增長約4%，營收超出最初提供的指導範圍，」 Nine Energy Service的總裁兼首席執行官安·福克斯（Ann Fox）表示。
「由於我們在水泥漿注入部門佔領營收市場份額的增加，Nine在本季度表現優異。儘管鑽機數量下降，水泥漿注入營收較Q2增長約12%。我們的水泥漿注入團隊通過提供我們認爲是行業中最先進的水泥漿，結合優秀的現場執行力，成功地在市場上樹立了區別。」
「除水泥漿注入外，其餘服務線的營收基本持平，然而在Nine的更好利用率、國際工具銷售增加和節約成本方面的措施幫助提升了本季度的盈利能力。」
「市場大多已經從活動和價格方面穩定下來，但隨着全球衝突、天氣和OPEC+行爲的波動，商品價格繼續波動。天然氣價格仍具挑戰性，使得諸如東北部和Haynesville等盆地的活動水平保持較低，影響了Nine的所有服務線。由於預算普遍消耗、天氣和節日期間的減速，以及預計國際工具銷售下降，我們預計2024年第四季度的營收和盈利能力將較第三季度下降。」
「我們對石油和天然氣的需求和前景持樂觀態度。目前還太早確定2025年的活動水平，但如果我們看到支持性的商品價格，再加上客戶預算的重新設定，我們預計2025年的活動水平將在當前水平基礎上略有提升。」
「Nine在天然氣盆地乃至整個美國都處於有利地位，可以利用這一優勢 改善市場。隨着市場活動的增加，我們已經看到，我們的收益反應迅速。我相信我們的服務和商品多樣性至關重要，我們通過提供的技術和服務實現差異化。我們的 爲輕資產企業提供前瞻技術的戰略沒有改變，無論我們面臨什麼市場，我們都將繼續專注於提高盈利能力。」
經營業績
在 2024 年第三季度， 公司公佈的收入爲1.382億美元，毛利爲1,610萬美元，調整後的毛利潤B 爲2470萬美元。在第三季度，該公司的投資回報率爲 (14.7)% 和調整後的投資回報率C 爲 3.9%。
在2024年第三季度，該公司公佈了總體情況 以及1,240萬美元的管理 (「G&A」) 開支.2024年第三季度的折舊和攤銷費用（「D&A」）爲900萬美元。
迄今爲止，該公司的稅收準備金約爲40萬美元。2024年的準備金是公司稅收狀況的結果 州和 非美國 稅收管轄區。
流動性和資本支出
在2024年第三季度，該公司報告用於經營活動的淨現金爲590萬美元。資本支出總額爲360萬美元 在2024年第三季度，截至2024年9月30日的全年總額爲1170萬美元。該公司2024年全年資本支出預期爲1000萬至1500萬美元。
截至2024年9月30日，Nine的現金及現金等價物爲1,570萬美元，該公司在該項下的可用資金爲2760萬美元 循環信貸額度，截至2024年9月30日，總流動性狀況爲4,330萬美元。2024年9月30日，該公司在循環信貸額度下獲得了5000萬美元的借款。開啓 2024年10月10日，公司償還了循環信貸額度下的300萬美元未償借款。
根據條款 根據管理Nine優先有擔保票據的契約，公司必須定期提議用任何剩餘現金流的一部分回購此類票據。根據契約的定義，Nine最多沒有產生任何超額現金流 最近結束了兩個財政季度（ 六個月 期限於 2024 年 9 月 30 日結束）。因此，本月不會向票據持有人提供額外現金流優惠。
在2024年第三季度，該公司根據其出售了約120萬股普通股 在市場上 股票發行計劃，該計劃產生了約140萬美元的淨收益。在截至2024年9月30日的九個月中，共有約540萬股股票 已出售，淨收益爲820萬美元。
美源伯根請參考新聞稿結尾的定義 非GAAP 這些措施旨在提供額外信息，僅供參考，並不應被視爲替代或比淨利潤（損失）、毛利潤或任何按照GAAP確定的其他措施更有意義。在這些措施中排除的某些項目是理解和評估公司財務表現的重要元件，如公司的資本成本和稅收結構，以及折舊資產的歷史成本。我們對這些措施的計算可能無法與其他公司的同類措施相媲美。
電話會議信息
業績會定於2024年11月1日星期五，美國中部時間上午9:00舉行。參與者可撥打以下電話號碼參加現場電話會議：美國（免費電話）：（877） 524-8416 或國際電話：（412）902-1028 並詢問「Nine Energy Service 業績會」。建議參與者在計劃開始時間前十到十五分鐘撥打電話會議，以避免延遲進入業績會。
無法聽取實時電話的人士，可以通過2024年11月15日之前的電話重播收聽，只需撥打美國（免費電話）：(877) 660-6853 或國際電話號碼：(201) 612-7415 並輸入密碼13746652。
關於Nine Energy Service
Nine Energy Service是一家油田服務公司，在北美和海外提供完整解決方案。該公司憑藉多年經驗和深厚承諾爲客戶提供更智能、定製的解決方案和世界一流資源，推動效率。作爲全球石油和天然氣行業的服務提供商，Nine繼續通過卓越的服務質量、井地執行和尖端技術實現差異化。Nine總部位於得克薩斯州休斯頓，在Permian、Eagle Ford、Haynesville、SCOOP/STACk、Niobrara、Barnett、Bakken、Marcellus、Utica和加拿大等地設有運營設施。
有關公司的更多信息，請訪問Nine的網站nineenergyservice.com。
前瞻性聲明
上述內容包含根據1933年證券法第27A條和1934年證券交易法第21E條的前瞻性聲明。前瞻性聲明不陳述歷史事實，因此從本質上講受到風險和不確定性的影響。前瞻性聲明還包括指涉或基於預測、不確定事件或假設的聲明。此處包含的前瞻性聲明基於當前預期，並涉及各種風險和不確定性，可能導致實際結果與預期大不相同。
這些前瞻性陳述涉及風險和不確定性，包括陸地石油和天然氣行業的資本支出水平和完井數量，可能會受美國和全球地緣政治和經濟發展的影響，包括在俄羅斯、中東、南美和非洲等石油生產國家或地區發生的衝突、不穩定、戰爭行為或恐怖主義行為，以及石油輸出國家和其他石油出口國家成員的行動；一般經濟狀況和通膨，尤其是勞動力或材料的成本率通膨；設備和供應鏈限制；本公司吸引和留住關鍵員工、技術人員和其他熟練和合格工人的能力；本公司在產品和服務上保持現有價格或實施價格上漲的能力；由於市場對本公司可溶性塞裝產品市場的激烈競爭而導致的價格壓力、銷量減少或市場份額減少的條件；石油田服行業固有的情況，如設備缺陷、涉及我們卡車或其他設備損壞的事故責任、爆炸和燃料氣體或井液無法控制的流失以及井口失控的損失；本公司推出和商業化新技術、服務和工具的能力；本公司在國內和國際擴大其完井工具業務的能力；本公司的資本資源和流動性充分性，包括履行債務義務的能力；本公司管理資本支出的能力；本公司準確預測客戶需求，包括國際客戶的需求；一個或多個重要客戶（包括本公司在美國以外的某些客戶）業務損失或營運中斷或延遲；一個或多個主要供應商業務損失或營運中斷；由訴訟導致的重大成本和責任；網絡安全風險；在關於健康、安全和環境保護問題的法律或法規變化；以及公司最近提交的年度報告表格中“風險因素”和“業務”部分描述的其他因素。 10-K 並隨後提交了Form季度報告。 10-Q 描述可能導致我們實際結果與前瞻性陳述中所設定的結果有所不同的因素。8-K. 讀者應該謹慎對待預見性陳述，這些陳述僅反映本日期，除法律要求外，公司不承擔更新這些陳述或公開宣布修訂這些陳述的任何結果以反映未來事件或發展的責任。
Nine Energy Service投資者聯繫人:
Heather Schmidt
副總裁，戰略發展，投資者關係和營銷
(281) 730-5113
investors@nineenergyservice.com
NINE ENERGY SERVICE, INC.
綜合損益表
(以千爲單位，除每股和每股金額外)
(未經審計)
| 截至三個月 | ||||||||
| 9月30日, 2024 |
6月30日， 2024 |
|||||||
| 收入 |
$ | 138,157 | $ | 132,401 | ||||
| 成本及費用 |
||||||||
| 營業成本（不包括單獨顯示的折舊和攤銷費用） |
113,451 | 112,048 | ||||||
| 一般和行政費用 |
12,366 | 12,482 | ||||||
| 折舊費 |
6,226 | 6,602 | ||||||
| 無形資產攤銷 |
2,796 | 2,796 | ||||||
| （增加）對待公債務重估的損益 |
383 | (118 | ) | |||||
| 出售財產和設備的損失 |
484 | 27 | ||||||
|
|
|
|
|
|||||
| 營業收入（虧損） |
2,451 | (1,436 | ) | |||||
| 利息支出 |
12,879 | 12,782 | ||||||
| 利息收入 |
(196 | ) | (154 | ) | ||||
| 其他收入 |
(162 | ) | (162 | ) | ||||
|
|
|
|
|
|||||
| 稅前損失 |
(10,070 | ) | (13,902 | ) | ||||
| 所得稅準備金 |
73 | 139 | ||||||
|
|
|
|
|
|||||
| 淨虧損 |
$ | (10,143 | ) | $ | (14,041 | ) | ||
| 每股虧損 |
||||||||
| 基本 |
$ | (0.26 | ) | $ | (0.40 | ) | ||
| 攤薄 |
$ | (0.26 | ) | $ | (0.40 | ) | ||
| 加權平均每股流通量 |
||||||||
| 基本 |
39,209,798 | 35,477,154 | ||||||
| 攤薄 |
39,209,798 | 35,477,154 | ||||||
| 其他綜合收入（損失），扣除稅後 |
||||||||
| 外幣折算調整，淨額爲$0和$0。 |
$ | (9 | ) | $ | 53 | |||
|
|
|
|
|
|||||
| 其他綜合收益（損失），淨所得稅後 |
(9 | ) | 53 | |||||
|
|
|
|
|
|||||
| 綜合損失總額 |
$ | (10,152 | ) | $ | (13,988 | ) | ||
|
|
|
|
|
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NINE ENERGY SERVICE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
| September 30, 2024 | June 30, 2024 | |||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ | 15,652 | $ | 26,027 | ||||
| Accounts receivable, net |
79,732 | 84,398 | ||||||
| Income taxes receivable |
615 | 679 | ||||||
| Inventories, net |
55,833 | 59,710 | ||||||
| Prepaid expenses and other current assets |
5,784 | 7,519 | ||||||
|
|
|
|
|
|||||
| Total current assets |
157,616 | 178,333 | ||||||
| Property and equipment, net |
73,659 | 77,057 | ||||||
| Operating lease right of use assets, net |
37,009 | 38,456 | ||||||
| Finance lease right of use assets, net |
27 | 48 | ||||||
| Intangible assets, net |
82,041 | 84,837 | ||||||
| Other long-term assets |
2,880 | 2,991 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 353,232 | $ | 381,722 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity (Deficit) |
||||||||
| Current liabilities |
||||||||
| Accounts payable |
$ | 30,465 | $ | 39,395 | ||||
| Accrued expenses |
23,070 | 32,393 | ||||||
| Current portion of long-term debt |
— | 730 | ||||||
| Current portion of operating lease obligations |
10,548 | 10,415 | ||||||
| Current portion of finance lease obligations |
17 | 30 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
64,100 | 82,963 | ||||||
| Long-term liabilities |
||||||||
| Long-term debt |
318,469 | 318,748 | ||||||
| Long-term operating lease obligations |
27,091 | 28,686 | ||||||
| Other long-term liabilities |
1,133 | 1,040 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
410,793 | 431,437 | ||||||
|
|
|
|
|
|||||
| Stockholders’ equity (deficit) |
||||||||
| Common stock (120,000,000 shares authorized at $.01 par value; 42,363,805 and 41,167,385 shares issued and outstanding at September 30, 2024 and June 30, 2024, respectively) |
424 | 412 | ||||||
| Additional paid-in capital |
805,509 | 803,215 | ||||||
| Accumulated other comprehensive loss |
(5,025 | ) | (5,016 | ) | ||||
| Accumulated deficit |
(858,469 | ) | (848,326 | ) | ||||
|
|
|
|
|
|||||
| Total stockholders’ equity (deficit) |
(57,561 | ) | (49,715 | ) | ||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity (deficit) |
$ | 353,232 | $ | 381,722 | ||||
|
|
|
|
|
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NINE ENERGY SERVICE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
| Three Months Ended | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| Cash flows from operating activities |
||||||||
| Net loss |
$ | (10,143 | ) | $ | (14,041 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities |
||||||||
| Depreciation |
6,226 | 6,602 | ||||||
| Amortization of intangibles |
2,796 | 2,796 | ||||||
| Amortization of deferred financing costs |
1,935 | 1,862 | ||||||
| Amortization of operating leases |
3,317 | 3,337 | ||||||
| Provision for doubtful accounts |
112 | 346 | ||||||
| Provision for inventory obsolescence |
429 | 338 | ||||||
| Stock-based compensation expense |
837 | 807 | ||||||
| Loss on sale of property and equipment |
484 | 27 | ||||||
| (Gain) loss on revaluation of contingent liability |
383 | (118 | ) | |||||
| Changes in operating assets and liabilities, net of effects from acquisitions |
||||||||
| Accounts receivable, net |
4,557 | 6,227 | ||||||
| Inventories, net |
3,487 | (3,654 | ) | |||||
| Prepaid expenses and other current assets |
1,736 | 2,279 | ||||||
| Accounts payable and accrued expenses |
(18,653 | ) | 10,488 | |||||
| Income taxes receivable/payable |
62 | (334 | ) | |||||
| Operating lease obligations |
(3,274 | ) | (3,288 | ) | ||||
| Other assets and liabilities |
(141 | ) | (780 | ) | ||||
|
|
|
|
|
|||||
| Net cash (used in) provided by operating activities |
(5,850 | ) | 12,894 | |||||
|
|
|
|
|
|||||
| Cash flows from investing activities |
||||||||
| Proceeds from sales of property and equipment |
318 | 6 | ||||||
| Purchases of property and equipment |
(3,401 | ) | (2,639 | ) | ||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(3,083 | ) | (2,633 | ) | ||||
|
|
|
|
|
|||||
| Cash flows from financing activities |
||||||||
| Proceeds from revolving credit facility |
3,000 | — | ||||||
| Payments on revolving credit facility |
(5,000 | ) | — | |||||
| Payments of short-term debt |
(730 | ) | (1,075 | ) | ||||
| Principal payments of finance leases |
(13 | ) | (17 | ) | ||||
| Payments of contingent liability |
(123 | ) | (184 | ) | ||||
| Proceeds from issuance of common stock under ATM program |
1,469 | 6,780 | ||||||
|
|
|
|
|
|||||
| Net cash (used in) provided by financing activities |
(1,397 | ) | 5,504 | |||||
|
|
|
|
|
|||||
| Impact of foreign currency exchange on cash |
(45 | ) | 25 | |||||
|
|
|
|
|
|||||
| Net increase (decrease) in cash and cash equivalents |
(10,375 | ) | 15,790 | |||||
| Cash and cash equivalents |
||||||||
| Beginning of period |
26,027 | 10,237 | ||||||
|
|
|
|
|
|||||
| End of period |
$ | 15,652 | $ | 26,027 | ||||
|
|
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|
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NINE ENERGY SERVICE, INC.
RECONCILIATION OF ADJUSTED EBITDA
(In Thousands)
(Unaudited)
| Three Months Ended | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| Net loss |
$ | (10,143 | ) | $ | (14,041 | ) | ||
| Interest expense |
12,879 | 12,782 | ||||||
| Interest income |
(196 | ) | (154 | ) | ||||
| Depreciation |
6,226 | 6,602 | ||||||
| Amortization of intangibles |
2,796 | 2,796 | ||||||
| Provision for income taxes |
73 | 139 | ||||||
|
|
|
|
|
|||||
| EBITDA |
$ | 11,635 | $ | 8,124 | ||||
|
|
|
|
|
|||||
| (Gain) loss on revaluation of contingent liability (1) |
383 | (118 | ) | |||||
| Restructuring charges |
177 | 315 | ||||||
| Stock-based compensation expense |
837 | 807 | ||||||
| Cash award expense |
770 | 580 | ||||||
| Loss on sale of property and equipment |
484 | 27 | ||||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
$ | 14,286 | $ | 9,735 | ||||
|
|
|
|
|
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| (1) | Amounts relate to the revaluation of contingent liability associated with a 2018 acquisition. |
NINE ENERGY SERVICE, INC.
RECONCILIATION AND CALCULATION OF ADJUSTED ROIC
(In Thousands)
(Unaudited)
| Three Months Ended | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| Net loss |
$ | (10,143 | ) | $ | (14,041 | ) | ||
| Add back: |
||||||||
| Interest expense |
12,879 | 12,782 | ||||||
| Interest income |
(196 | ) | (154 | ) | ||||
| Restructuring charges |
177 | 315 | ||||||
|
|
|
|
|
|||||
| Adjusted after-tax net operating income (loss) |
$ | 2,717 | $ | (1,098 | ) | |||
| Total capital as of prior period-end: |
||||||||
| Total stockholders’ deficit |
$ | (49,715 | ) | $ | (43,314 | ) | ||
| Total debt |
352,730 | 353,805 | ||||||
| Less: cash and cash equivalents |
(26,027 | ) | (10,237 | ) | ||||
|
|
|
|
|
|||||
| Total capital as of prior period-end: |
$ | 276,988 | $ | 300,254 | ||||
|
|
|
|
|
|||||
| Total capital as of period-end: |
||||||||
| Total stockholders’ deficit |
$ | (57,561 | ) | $ | (49,715 | ) | ||
| Total debt |
350,000 | 352,730 | ||||||
| Less: cash and cash equivalents |
(15,652 | ) | (26,027 | ) | ||||
|
|
|
|
|
|||||
| Total capital as of period-end: |
$ | 276,787 | $ | 276,988 | ||||
|
|
|
|
|
|||||
| Average total capital |
$ | 276,888 | $ | 288,621 | ||||
|
|
|
|
|
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| ROIC |
-14.7 | % | -19.5 | % | ||||
| Adjusted ROIC |
3.9 | % | -1.5 | % | ||||
NINE ENERGY SERVICE, INC.
RECONCILIATION OF ADJUSTED GROSS PROFIT (LOSS)
(In Thousands)
(Unaudited)
| Three Months Ended | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| Calculation of gross profit: |
||||||||
| Revenues |
$ | 138,157 | $ | 132,401 | ||||
| Cost of revenues (exclusive of depreciation and amortization shown separately below) |
113,451 | 112,048 | ||||||
| Depreciation (related to cost of revenues) |
5,791 | 6,139 | ||||||
| Amortization of intangibles |
2,796 | 2,796 | ||||||
|
|
|
|
|
|||||
| Gross profit |
$ | 16,119 | $ | 11,418 | ||||
|
|
|
|
|
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| Adjusted gross profit reconciliation: |
||||||||
| Gross profit |
$ | 16,119 | $ | 11,418 | ||||
| Depreciation (related to cost of revenues) |
5,791 | 6,139 | ||||||
| Amortization of intangibles |
2,796 | 2,796 | ||||||
|
|
|
|
|
|||||
| Adjusted gross profit |
$ | 24,706 | $ | 20,353 | ||||
|
|
|
|
|
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NINE ENERGY SERVICE, INC.
EXCESS CASH FLOW CALCULATION
(In Thousands)
(Unaudited)
| September 30, 2024 | ||||
| Net cash provided by operating activities (1) |
$ | 7,044 | ||
| Repurchases of common stock in connection with stock-based employee compensation |
— | |||
| Capital expenditures used or useful in a Permitted Business: |
||||
| Purchases of property and equipment |
(6,040 | ) | ||
| Proceeds from sales of property and equipment |
324 | |||
| Repayments of ABL Obligations |
834 | |||
| Charges in respect of finance lease obligations |
(30 | ) | ||
| Debt issuance costs |
— | |||
| Payments on short-term debt |
(1,805 | ) | ||
| Impact of foreign exchange rate on cash |
(20 | ) | ||
| Contingent liability payments |
(307 | ) | ||
|
|
|
|||
| Excess Cash Flow |
$ | — | ||
| Excess Cash Flow % |
75 | % | ||
| Excess Cash Flow Amount |
$ | — | ||
|
|
|
|||
| (1) | Amount consists of the Company’s consolidated operating cash flow, determined in accordance with GAAP, for the fiscal quarter ended June 30, 2024 ($12.9 million of net cash provided by operating activities) and for the fiscal quarter ended September 30, 2024 ($5.9 million of net cash used in operating activities) |
See the definition of Excess Cash Flow included in the Indenture filed as Exhibit 4.2 to the Current Report on Form 8-K filed February 1, 2023
AAdjusted EBITDA is defined as EBITDA (which is net income (loss) before interest, taxes, and depreciation and amortization) further adjusted for (i) goodwill, intangible asset, and/or property and equipment impairment charges, (ii) transaction and integration costs related to acquisitions, (iii) fees and expenses relating to our units offering and other refinancing activities, (iv) loss or gain on revaluation of contingent liabilities, (v) loss or gain on the extinguishment of debt, (vi) loss or gain on the sale of subsidiaries, (vii) restructuring charges, (viii) stock-based compensation and cash award expense, (ix) loss or gain on sale of property and equipment, and (x) other expenses or charges to exclude certain items which we believe are not reflective of ongoing performance of our business, such as legal expenses and settlement costs related to litigation outside the ordinary course of business. Management believes adjusted EBITDA provides useful information to us and our investors regarding our financial condition and results of operations because it allows us and them to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure and helps identify underlying trends in our operations that could otherwise be distorted by the effect of impairments, acquisitions and dispositions and costs that are not reflective of the ongoing performance of our business.
BAdjusted gross profit (loss) is defined as revenues less cost of revenues excluding depreciation and amortization. This measure differs from the GAAP definition of gross profit (loss) because we do not include the impact of depreciation and amortization, which represent non-cash expenses. Our management believes adjusted gross profit (loss) provides useful information to us and our investors regarding our financial condition and results of operation and helps management evaluate our operating performance by eliminating the impact of depreciation and amortization, which we do not consider indicative of our core operating performance.
CAdjusted return on invested capital (“adjusted ROIC”) is defined as adjusted after-tax net operating profit (loss), divided by average total capital. We define adjusted after-tax net operating profit (loss), which is a non-GAAP measure, as net income (loss) plus (i) goodwill, intangible asset, and/or property and equipment impairment charges, (ii) transaction and integration costs related to acquisitions, (iii) fees and expenses relating to our units offering and other refinancing activities, (iv) interest expense (income), (v) restructuring charges, (vi) loss (gain) on the sale of subsidiaries, (vii) loss (gain) on extinguishment of debt, and (viii) the provision (benefit) for deferred income taxes. We define total capital as book value of equity (deficit) plus the book value of debt less balance sheet cash and cash equivalents. We compute and use the average of the current and prior period-end total capital in determining adjusted ROIC. Management believes adjusted ROIC provides useful information to us and our investors regarding our financial condition and results of operations because it quantifies how well we generate operating income relative to the capital we have invested in our business and illustrates the profitability of a business or project taking into account the capital invested, and management uses adjusted ROIC to assist them in capital resource allocation decisions and in evaluating business performance.