On October 1, 2021, the merger between Legacy Expro and Frank’s was completed; the combined company was re-named Expro Group Holdings N.V. and began trading on the NYSE as “XPRO” on October 4, 2021
Delivered strong results due to higher activity and continued market growth across all regions
Provides fourth quarter revenue and Adjusted EBITDA Margin outlook
HOUSTON - November 8, 2021 - Expro Group Holdings N.V. (NYSE: XPRO) (the “Company” or “Expro”) today reported financial and operational results for Expro Group Holdings International Limited, (“Legacy Expro”) and Frank’s International N.V. (“Frank’s”) for the three and nine months ended September 30, 2021.
Legacy Expro and Frank’s completed their merger on October 1, 2021 and consolidated combined company financial results under Expro Group Holdings N.V. will be reported beginning with the fiscal fourth quarter of 2021. However, the Company noted that third quarter pro forma combined company revenue was $312.5 million, an increase of 10% sequentially, driven primarily by higher activity and continued market growth across all regions.
Frank’s results are detailed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 which will be filed with the Securities and Exchange Commission.
References in this earnings release to “Frank’s” are to the Company prior to the completion of the merger on October 1, 2021 and to “Legacy Expro” are to the Legacy Expro Group that combined with Frank’s in the merger.
Frank’s Third Quarter 2021 Financial Highlights
Legacy Expro Third Quarter 2021 Financial Highlights
Michael Jardon, the Company’s Chief Executive Officer, noted, “Expro is a full-cycle energy services leader with scale, a broad offering of services and solutions, a global operating footprint, through-cycle resiliency and a strong financial profile. Frank’s and Legacy Expro ended the quarter in a strong position as we continued to experience growth across all areas of our business, supported by sustained customer demand and improving industry fundamentals.
“Our results this quarter are also a testament to the continued hard work, commitment and expertise of our talented employees from both Frank’s and Legacy Expro. Together, we believe that we are well positioned to accelerate growth, improve profitability and enhance value for shareholders, employees, customers and partners. The integration of Frank’s and Legacy Expro is on track, and we are looking forward to what we can achieve as we begin this new journey together.
“Looking ahead, we expect another quarter of solid financial performance. The Company’s current outlook for the fourth quarter of 2021 is for flat to mid-single digit revenue growth and an Adjusted EBITDA Margin, consistent with the definition used by Legacy Expro, of 15-17% of consolidated revenue, driven by improved business mix and continued discipline in regard to costs. While the fourth and first quarters are typically seasonally weaker quarters due to reduced activity in the Northern Hemisphere, we continue to see signals of a multi-year recovery, which is expected to gain momentum as 2022 progresses.
“With a backdrop of global economic recovery and improving industry fundamentals, Expro is also poised to benefit from increased activity as well as cost and revenue synergies. During the third quarter, we finalized many of our plans for the integration, and we are confident in our ability to achieve previously disclosed synergy targets. Our integration work has confirmed our expectations that we can strengthen our operating model, lower our cost structure and significantly expand margins. We continue to expect approximately $55 million in annual run-rate cost synergies within the first 12 months following the closing of the merger, with the objective of delivering $70 million of total cost savings in 24-36 months. We also expect that revenue synergies will result in $10 million to $30 million of incremental Adjusted EBITDA through complementary customer relationships and operating footprints, increased time on rig and greater exposure to the full life of field.
“We believe Expro has an exciting platform with the scale, diversity and financial profile to accelerate growth and provide through-cycle resiliency. Our strategy is already underway, and we look forward to creating significant value on behalf of our shareholders, employees, customers and partners.” concluded Mr. Jardon.
Karen David-Green - Chief Communications, Stakeholder & Sustainability Officer
+1 281 994 1056
Hannah Rumbles - Global Marketing and Communications Manager
+44 1224 796729
Full quarter ended 30 September 2021 earnings release.