CJ 2017 Annual Report

cash inflows of $101.3 million due to (i) a decrease in our investment in working capital (accounts receivable, inventory, accounts payable and accrued expenses) as a result of the decrease in the demand for our services and the resulting decrease in revenue and direct costs during the year ended December 31, 2016, (ii) a decrease in the use of cash related to accounts payable and accrued expenses during the third and fourth quarters of 2016 both resulting from the automatic stay associated with the Chapter 11 Proceeding and (iii) positive changes in other operating assets and liabilities, excluding accounts receivable, inventory, accounts payable and accrued expenses. Net cash from operating activities was $103.0 million for the year ended December 31, 2015. The cash inflow was primarily related to (i) cash inflows of $148.1 million due to a decrease in our investment in working capital (accounts receivable, inventory, accounts payable and accrued expenses) as a result of the decrease in the demand for our services and the resulting decrease in revenue and direct costs during the year ended December 31, 2015 and (ii) cash collections from accounts acquired as part of the Nabors Merger. These cash inflows were partially offset by (i) a net loss of $872.5 million and adjustments for non-cash items of $857.7 million, (ii) cash used to satisfy obligations related to accounts payable and accrued liabilities assumed in the Nabors Merger and (iii) negative changes in other operating assets and liabilities, excluding accounts receivable, inventory, accounts payable and accrued expenses. Cash Flows Used in Investing Activities Net cash used in investing activities was $275.7 million for the year ended December 31, 2017. The use of cash was related to (i) $210.2 million of capital expenditures primarily pertaining to the refurbishment of stacked equipment and the construction of new-build frac pumps and refurbished ancillary equipment and (ii) $133.8 million related to the O-Tex Transaction. These amounts were offset by $68.3 million of proceeds from the divestiture of non-core business lines previously reported under our Other Services reportable segment and from the disposal of property plant and equipment. Net cash used in investing activities was $26.9 million for the year ended December 31, 2016. The use of cash was related to (i) $57.9 million of capital expenditures primarily pertaining to the new ERP system and to costs incurred to extend the useful lives of our existing equipment and (ii) $1.8 million in payments related to our non-core service lines. These amounts were offset by $32.8 million of proceeds from disposal of property plant and equipment. Net cash used in investing activities was $825.2 million for the year ended December 31, 2015. The use of cash was primarily related to $663.3 million primarily for cash consideration for the C&P Business, and $166.3 million of capital expenditures primarily pertaining to maintenance of our existing equipment. These amounts were offset by $4.5 million of proceeds from the disposal of property plant and equipment. Cash Flows Provided by Financing Activities Net cash provided by financing activities was $210.3 million for the year ended December 31, 2017. The cash provided was primarily from $215.9 million of proceeds from the public offering of common stock, partially offset by (i) $3.8 million of employee tax withholding on restricted stock vesting and (ii) $1.7 million of cash paid for financing costs related to our Amended Credit Facility. Net cash provided by financing activities was $174.3 million for the year ended December 31, 2016. The cash provided was primarily from (i) $174.0 million in proceeds from the Predecessor's revolving credit facility, (ii) $23.0 million in proceeds from the DIP Facility partially offset by (i) $13.3 million in payments on the Predecessor's revolving credit facility and term debt, (ii) $5.6 million of payments for excess tax expense from share-based compensation (iii) $2.4 million in payments related to capital lease obligations and (iv) $1.0 million of cash paid for financing costs related to our DIP Facility. Net cash provided by financing activities was $734.1 million for the year ended December 31, 2015. The cash provided was primarily from $1.3 billion in proceeds from the Predecessor's term debt and revolving credit facility to fund the cash consideration portion of the acquisition of the C&P Business, partially offset by (i) $540.0 million in payments on the Predecessor's term debt and revolving credit facility, (ii) $55.5 million of cash paid for financing costs related to the Predecessor's term debt and revolving credit facility, (iii) $3.9 million in payments related to capital lease obligations, (iv) $2.6 million of employee tax withholding on restricted stock vesting, (v) $2.4 million of payments for excess tax expense from share-based compensation and (vi) $1.5 million of cash paid for registration costs associated with the issuance of common stock. 54 Description of our Indebtedness Description of our Amended Credit Facility