Solaris Energy Infrastructure, Inc. (NYSE: SEI) announced its financial and operational results for the third quarter of 2024, along with key highlights:
Third Quarter 2024 Highlights
- Revenue: $75 million, an increase of 2% from Q2 2024 and 8% from Q3 2023.
- Net Loss: $2 million, or ($0.04) per diluted Class A share. Adjusted pro forma net income was $4 million, or $0.08 per fully diluted share.
- Adjusted EBITDA: $22 million, a 7% increase from Q2 2024 but down 5% from Q3 2023.
- On September 11, 2024, Solaris completed the acquisition of Mobile Energy Rentals LLC (MER) and launched the Solaris Power Solutions segment.
- Secured a $325 million senior secured term loan to fund the acquisition and future growth of the Solaris Power Solutions fleet.
- Signed power service agreements totaling 450 MW of generation capacity, covering over 80% of the expected 2025 capacity.
Business Segment Performance
Solaris Logistics Solutions:
- Revenue: $70 million, down 5% from Q2 2024.
- Segment Adjusted EBITDA: $24 million, down 6% from Q2 2024.
- Fully utilized systems: 91, a 1% decrease from Q2 2024.
Solaris Power Solutions:
- Revenue: $5 million in the first 20 days post-acquisition.
- Segment Adjusted EBITDA: $3 million in the first 20 days.
- The initial results reflect contributions from the data center industry. The segment has since expanded customer agreements, securing 450 MW of contracts, with full equipment delivery expected by Q3 2025.
Shareholder Returns
- Returned $5 million to shareholders in Q3 2024 through dividends, bringing total returns since 2018 to $183 million.
- Announced a Q4 2024 dividend of $0.12 per share, payable on December 16, 2024, to shareholders of record as of December 6, 2024. This marks Solaris’ 25th consecutive dividend.
- No share repurchases in Q3 2024, with $15 million remaining under the current repurchase authorization. Total shareholder returns will reach $190 million after the Q4 dividend.
Financial Position and Capital Investment
- Cash Flow: $11 million net cash from operating activities in Q3 2024. Free cash flow was negative $47 million, impacted by a $7 million working capital use.
- Capital Expenditures: $58 million in Q3 2024, mainly for power equipment.
- Liquidity: $325 million in outstanding borrowings and $117 million in total cash, with $98 million restricted for capital growth.
Chairman and CEO Bill Zartler commented on the company’s progress: “This quarter marked a transformative period with the MER Acquisition and strong service delivery. The rapid growth of our Power Solutions segment and the continued efficiency of our Logistics Solutions segment demonstrate our commitment to innovation and shareholder value.”
