Company: NINE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001532286-25-000008
Chunk: 87

Company: Nine Energy Service, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 7
Chunk 87
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 capital as of period-end$256,636 $293,389 Average total capital$275,013 $297,022 ROIC(14.9)%(10.8)%Adjusted ROIC3.7 %8.8 %

(1)     Amounts represent fees and expenses relating to our Units offering and other refinancing activities, including cash incentive compensation to employees following the successful completion of the Units offering, that were not capitalized.

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Adjusted Gross Profit (Loss)

GAAP defines gross profit (loss) as revenues less cost of revenues and includes depreciation and amortization in costs of revenues. We define adjusted gross profit (loss) as revenues less direct and indirect costs 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.

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. Adjusted gross profit (loss) should not be considered as an alternative to gross profit (loss), operating income (loss), or any other measure of financial performance calculated and presented in accordance with GAAP. Adjusted gross profit (loss) may not be comparable to similarly titled measures of other companies because other companies may not calculate adjusted gross profit (loss) or similarly titled measures in the same manner as we do.

The following table presents a reconciliation of adjusted gross profit (loss) to GAAP gross profit (loss) for the years ended December 31, 2024 and 2023.

 Year Ended December 31, 20242023 (in thousands)Calculation of gross profit:  Revenues$554,104 $609,526 Cost of revenues (exclusive of depreciation and amortization shown separately below)456,729 490,750 Depreciation (related to cost of revenues)25,095 27,101 Amortization of intangibles11,183 11,516 Gross profit$61,097 $80,159 Adjusted gross profit reconciliation:  Gross profit$61,097 $80,159 Depreciation (related to cost of revenues)25,095 27,101 Amortization of intangibles11,183