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AESI NYSE· Atlas Energy Solutions Inc
Earnings report Q3 2023

AESI Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

AESI reported total sales of $157.6 million for the quarter ended September 30, 2023, representing a significant increase from $141.7 million in the same quarter last year. The company's revenue can be broken down into two segments: product sales and service sales.

  • Product sales amounted to $114.8 million, slightly lower than the $119.2 million reported in the previous year's quarter. However, product sales for the nine months ended September 30, 2023, increased by $81.5 million to $368.1 million compared to $286.6 million in the same period last year. This growth can be attributed to an increase in proppant prices, which had a positive impact of $47.7 million, as well as an increase in sales volume, contributing a positive impact of $34.2 million.

  • Service sales, which include freight for last-mile logistics services, showed significant growth, reaching $42.8 million for the quarter, compared to $22.5 million in the same quarter last year. For the nine months ended September 30, 2023, service sales increased by $58.4 million to $104.7 million, compared to $46.3 million in the same period last year.

Strengths

AESI demonstrated strong revenue growth in the latest quarter, driven by increased sales in both product and service segments. The company's product sales benefited from higher proppant prices and increased sales volume. Additionally, the significant growth in service sales, particularly in last-mile logistics services, contributed to the overall revenue increase. Management's focus on expanding and diversifying revenue streams has proven successful.

Challenges

While AESI experienced overall revenue growth, product sales in the latest quarter were slightly lower compared to the same quarter last year. This could be attributed to various factors such as market conditions, competition, or fluctuations in demand. It will be important for the company to closely monitor and address any challenges in the product sales segment to maintain consistent growth.

Noteworthy

It is worth mentioning that AESI incurred U.S. federal income taxes subsequent to their reorganization on March 8, 2023. This resulted in an increase in income tax expense by $7.0 million to $7.6 million for the quarter ended September 30, 2023, compared to $0.6 million in the same quarter last year. This change in tax expense should be considered when evaluating the company's overall financial performance.

Summary

AESI reported strong revenue growth in the latest quarter, driven by increased sales in both product and service segments. The company's product sales benefited from higher proppant prices and increased sales volume, while service sales showed significant growth, particularly in last-mile logistics services. Despite a slight decrease in product sales for the quarter, AESI's overall revenue performance remains positive. However, the increase in income tax expense should be taken into account when evaluating the company's financial performance. AESI's focus on expanding and diversifying revenue streams has positioned them well for continued growth in the future.

Source documents

Form 10-Q  filed on Oct 31, 2023
3 pages scanned

Reference data

Company financials Q3 revenue 141M
Analyst estimates Q3 EPS missed by -34.78%
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