Company: NINE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001532286-25-000008
Chunk: 85

Company: Nine Energy Service, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 7
Chunk 85
---
 (loss) for the years ended December 31, 2024 and 2023:

 Year Ended December 31, 20242023 (in thousands)Net loss$(41,082)$(32,213)Interest expense51,321 51,119 Interest income(849)(1,270)Provision for income taxes198 585 Depreciation25,594 29,141 Amortization of intangibles11,183 11,516 EBITDA$46,365 $58,878 Adjusted EBITDA reconciliation:  EBITDA$46,365 $58,878 Loss on revaluation of contingent liability (1)104 437 Certain refinancing costs (2)— 6,396 Restructuring charges701 2,027 Stock-based compensation expense2,946 2,169 Cash award expense2,832 2,698 Loss on sale of property and equipment256 292 Legal fees and settlements (3)— 69 Adjusted EBITDA$53,204 $72,966 

(1)     Amounts relate to the revaluation of contingent liability associated with a 2018 acquisition. The impact is included in our Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). For additional information on contingent liabilities, see Note 12 – Commitments and Contingencies included in Item 8 of Part II of this Annual Report.

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

(3)     Amounts represent fees and legal settlements associated with legal proceedings brought pursuant to the FLSA and/or similar state laws.

42

Adjusted Return on Invested Capital

Adjusted ROIC is a non-GAAP financial measure. We define Adjusted ROIC 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 financial 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 (