Nuverra Environmental Solutions (OTC:NESC) reported fourth-quarter and full-year results after the closing bell today. In addition to reporting quarterly results, the company announced several other items of note, including the sale of its Thermo Fluids subsidiary for $175 million.
For the fourth quarter, revenue was $154.5 million, which was lower than the $162.6 million the company reported just last quarter. Nuverra battled rough winter weather and competitive pressures, which both drove revenue lower on the quarter. On the other hand, adjusted EBITDA for the quarter was $25.7 million, which is slightly higher than the $25.1 million in the third quarter. A focus on controlling its costs kept earnings from falling alongside revenue.
Among the additional items that overshadowed its financial results, topping the list was the announced sale of its Thermo Fluids subsidiary to VeroLube for $165 million in cash and another $10 million in VeroLube stock. The company expects the sale to close next quarter. The company also announced that Richard Heckmann and Lou Holtz will be retiring from the Board of Directors. Heckmann founded the legacy company that has now transformed into Nuverra Environmental Solutions. Finally, the company announced the settlement of its litigation of the China Water and Drinks class action litigation.
Many of the actions the company announced this quarter will put an end to the legacy issues that have been holding the company back in recent quarters. With these issues behind it, Nuverra Environmental Solutions can focus its attention on growing its oil-field environmental solutions offerings in 2014. The company sees an increase in oil and gas spending this year, which should drive up the volumes of the fluids and solids that it handles.