DTI's Third Quarter Results Show Growth Amidst Challenges

Drilling Tools International Corp. Reports Third Quarter Results

Drilling Tools International Corp., (NASDAQ: DTI) ("DTI" or the "Company"), a prominent provider in the oilfield services sector, recently shared its financial results for the third quarter. This quarter demonstrated the company's ability to navigate through a challenging economic landscape while continuing to make significant progress towards its growth objectives.

Financial Performance Highlights

In the third quarter, DTI achieved total consolidated revenues of $40.1 million. This figure marks a vital increase in comparison to preceding quarters, showcasing a steady upward trajectory. Out of this, Tool Rental revenues contributed roughly $28.1 million, while Product Sales accounted for $12.0 million. Furthermore, DTI managed to maintain effective operating costs, which stood at $35.8 million. Consequently, the Company's income from operations was reported at $4.3 million.

Profitability Metrics

The financial statistics spotlight impressive profitability metrics as well. The Company recorded a net income of $867,000, with adjusted net income climbing to $4.6 million. This translates to diluted earnings per share (EPS) at $0.03 and adjusted diluted EPS at $0.14. Adjusted EBITDA was notably reported at $11.1 million, underscoring the Company's strong operational performance amid fluctuating market conditions.

CEO's Perspective on Growth Strategy

Wayne Prejean, Chief Executive Officer at DTI, expressed satisfaction with the firm's acquisition growth strategy. He noted, "In light of the industry's headwinds, acquiring high-quality companies positions DTI to better capitalize on the anticipated growth cycle over the next several years. The rising demand for our innovative products and superior services is expected to bolster our market presence globally."

Outlook Adjustments Due to Market Conditions

Prejean pointed out that while third-quarter results revealed significant progress, they still fell short of expectations due to ongoing softer market conditions. Reflecting on DTI's robust platform for growth, he stated that they continue to refine their cost management strategies to adapt to the prevailing market environment. Additionally, the company revised its 2024 outlook, considering the sequential slowdown linked to holiday breaks and capital management disciplines among clients.

Future Outlook: Full Year Goals

As DTI looks toward the remainder of 2024, the company updated its full-year outlook. The anticipated revenue is estimated to fall between $145 million to $155 million, with adjusted net income projected between $7.7 million and $9.8 million. Furthermore, adjusted EBITDA is expected to range from $38 million to $43 million. This outlook illustrates the Company’s commitment to sustaining its growth momentum while addressing the challenges that the industry presents.

Conference Call Information

DTI's upcoming conference call regarding the third quarter performance will occur live, with details available on DTI’s investor relations page. A replay will be accessible shortly after the session, ensuring that all stakeholders are kept informed.

About DTI

Drilling Tools International Corp. is a leading oilfield services entity specializing in the manufacturing and rental of downhole drilling tools. With operation centers established across North America and beyond, DTI is dedicated to delivering innovative solutions tailored to the needs of the oil and natural gas industry.

Contact Information

For further inquiries, please reach out to DTI’s Investor Relations team, including Ken Dennard and Rick Black.

Frequently Asked Questions

What were DTI's total revenues in the third quarter?

DTI reported total consolidated revenues of $40.1 million in the third quarter of 2024.

How much was DTI's net income for the quarter?

The net income for DTI in the third quarter was $867,000.

What factors did Wayne Prejean cite in the company's growth strategy?

Wayne Prejean discussed the importance of acquiring high-quality companies to capitalize on expected growth cycles in the industry.

What is the revenue outlook for DTI in 2024?

The anticipated range for DTI's revenue in 2024 is between $145 million to $155 million.

How can investors access DTI's conference call?

Investors can access the live conference call through DTI’s investor relations page, with details provided in their announcements.

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