SAN JUAN – Mammoth Energy Services Inc. reported financial and operational results for the three months ended March 31, 2018, which reflect a 559% revenue rise, to $494 million, compared with the same period the year prior.
The contractor was hired to perform grid-repair work in Puerto Rico after back-to-back hurricanes Irma and Maria leveled the island’s power distribution grid. It reportedly has some 900 employees and contractors performing related energy restoration work.
Its subsidiary, Cobra Acquisitions LLC, had its local contract amended a couple of times and is now capped at $945 million. Its initial agreement with the Puerto Rico Electric Power Authority (Prepa) to aid in the restoration of the utility’s infrastructure was of $200 million.
Despite not generating any revenue in the first three months of 2017, Mammoth’s infrastructure services brought in nearly $326 million of the firm’s $494 million revenue for the three-month period this year, with its Puerto Rico operation contributing substantially to the earnings.
Its adjusted first-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) was $130.8 million, up 1,037% from $11.5 million for the same quarter in 2017.
“The first quarter was challenging due to several factors including harsh working environments, severe winter weather and logistics issues, but our teams were able to overcome these obstacles and continue to execute at a high level,” Mammoth CEO Arty Straehla said in the firm’s release Wednesday. “The first quarter of 2018 was our third sequential record quarter on an EBITDA basis, which was underpinned by the hard work performed by our teams in Puerto Rico.”
“As of March 31, Mammoth had cash on hand totaling $10.4 million and borrowings outstanding under its revolving credit facility of $39.0 million. As of March 31, 2018, the Company had approximately $123.7 million of available borrowing capacity under its revolving credit facility, after giving effect to $6.5 million of outstanding letters of credit,” the release reads.
The contractor hosted a conference call Thursday that can be found here.