CJ 2017 Annual Report

C&J ENERGY SERVICES, INC. AND SUBSIDIARIES C ONSOLIDATED S TATEMENTS OF O PERATIONS (Amounts in thousands, except per share data) Successor Predecessor Year Ended December 31, On January 1, Years Ended December 31, 2017 2017 2016 2015 Revenue $ 1,638,739 $ — $ 971,142 $ 1,748,889 Costs and expenses: Direct costs 1,288,092 — 947,255 1,523,194 Selling, general and administrative expenses 250,871 — 229,267 239,697 Research and development 6,368 — 7,718 16,704 Depreciation and amortization 140,650 — 217,440 276,353 Impairment expense — — 436,395 791,807 (Gain) loss on disposal of assets (31,463) — 3,075 (544) Operating income (loss) (15,779) — (870,008) (1,098,322) Other income (expense): Interest expense, net (1,527) — (157,465) (82,086) Other income (expense), net 3 — 9,504 8,773 Total other income (expense) (1,524) — (147,961) (73,313) Losses before reorganization items and income taxes (17,303) — (1,017,969) (1,171,635) Reorganization items — (293,969) 55,330 — Income tax benefit (39,760) (4,613) (129,010) (299,093) Net income (loss) $ 22,457 $ 298,582 $ (944,289) $ (872,542) Net income (loss) per common share: Basic $ 0.37 $ 2.52 $ (7.98) $ (8.48) Diluted $ 0.37 $ 2.52 $ (7.98) $ (8.48) Weighted average common shares outstanding: Basic 61,208 118,633 118,305 102,853 Diluted 61,460 118,633 118,305 102,853 See accompanying notes to consolidated financial statements 70