Apergy reports higher cash flow on Y/Y basis

Apergy (APY +22.0%) says against a challenging macro backdrop, Q1 revenue of $261M and adjusted EBITDA of $53M was within guidance range.

Cash from operating activities of $29.2M and free cash flow of $21.8M, or 8% of revenue in Q1-20

Also announced additional actions to significantly reduce operating expenses and increase annualized savings to $85M from $65M

Merger with ChampionX expected to close by the end of Q2-20

Average worldwide and U.S. rig counts declined 11% Y/Y and 25%, respectively, and this decline has accelerated in April.

Amid uncertainty in the oil and gas industry, Apergy did not provide guidance for Q2, as well as said to restrict capital expenditures to maintenance requirements only; expects full year 2020 capital expenditures combined with investment in leased assets, to be ~$30M

Previously: Apergy EPS misses by $0.03, beats on revenue (April 28)