Company: NINE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001532286-25-000011
Chunk: 76

Company: Nine Energy Service, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 76
---
 most directly comparable GAAP measure of net income (loss), in each case for the three months ended March 31, 2025 and 2024.

Three Months Ended March 31,20252024(in thousands)Net loss$(7,061)$(8,055)Add back:Interest expense12,876 12,792 Interest income(139)(310)Restructuring charges— 27 Adjusted after-tax net operating income$5,676 $4,454 Total capital as of prior period-end:Total stockholders’ deficit$(66,064)$(35,630)Total debt350,580 359,859 Less cash and cash equivalents(27,880)(30,840)Total capital as of prior period-end$256,636 $293,389 Total capital as of period-end:Total stockholders’ deficit$(72,113)$(43,314)Total debt349,260 353,805 Less cash and cash equivalents(17,275)(10,237)Total capital as of period-end$259,872 $300,254 Average total capital$258,254 $296,822 ROIC(10.9)%(10.9)%Adjusted ROIC8.8%6.0%

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.

 21

The following table presents a reconciliation of adjusted gross profit (loss) to GAAP gross profit (loss)