Company: NINE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001532286-25-000011
Chunk: 95

Company: Nine Energy Service, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 95
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.5 million, or 6%, to $122.5 million for the first quarter of 2025. The increase in comparison to the first quarter of 2024 was related to a $5.0 million increase in materials installed and consumed while performing services, a $1.0 million increase in vehicle costs, and a $0.5 million increase in insurance, taxes, employee and other costs, each in comparison to the first quarter of 2024. 

Adjusted Gross Profit (Loss)

Adjusted gross profit increased approximately $1.9 million to $28.0 million for the first quarter of 2025 due to the factors described above under “Revenues” and “Cost of Revenues.”

General and Administrative Expenses

General and administrative expenses increased $1.0 million to $13.3 million for the first quarter of 2025. The increase was primarily related to a $0.8 million increase in employee-related costs and a $0.4 million increase in professional fees between periods. The overall increase was partially offset by a $0.2 million decrease in other general and administrative costs between periods.

Depreciation

Depreciation expense decreased $0.9 million to $5.8 million for the first quarter of 2025. The decrease in comparison to the first quarter of 2024 was primarily due to a decrease in capital expenditures across certain lines of service over the last twelve months.

Amortization of Intangibles

We recorded $2.8 million in amortization of intangibles (comprised of technology and customer relationships) in both the first quarter of 2025 and the first quarter of 2024. 

(Gain) Loss on Sale of Property and Equipment

Loss on sale of property and equipment increased $0.5 million in comparison to the first quarter of 2024. The increase is primarily related to certain asset disposals in the first quarter of 2025 that did not occur in the first quarter of 2024.

Non-Operating (Income) Expenses

Non-operating expenses increased $0.3 million to $12.6 million for the first quarter of 2025. The increase in comparison to the first quarter of 2024 was attributed to a decrease in interest income earned on cash in the first quarter of 2025, as our average cash for the period decreased in comparison to the first quarter of 2024. 

Provision (Benefit) for Income Taxes

We recorded an income tax provision