Mergers and Acquisitions - The merger between Innovex Downhole Solutions, Inc. and Dril-Quip, Inc. was completed on September 6, 2024, resulting in Legacy Innovex becoming a wholly owned subsidiary of Dril-Quip, with shareholders receiving 32,183,966 shares of the new company stock at a conversion rate of 2.0125[22] - Innovex acquired 80% of Downhole Well Solutions, LLC for a total purchase price of $75.1 million in cash and 1,918,558 shares of Company Common Stock on November 29, 2024[23] Market Overview - The total addressable market (TAM) for Innovex's products was estimated at $4.5 billion in 2023, which increased to $8.3 billion in 2024 post-merger, with $3.6 billion in North America and $4.7 billion in International & Offshore markets[25] - In 2024, approximately 55% of Innovex's revenue came from the North American market, while the International and Offshore markets contributed 45%[26] - Innovex's revenue sources in 2024 included approximately 80% from product sales, 8% from rental tools, and 12% from services[35] - The company estimates its market share in the North American market at 13% and 12% in the International and Offshore markets for 2024, reflecting growth opportunities post-merger and acquisition[31] Product Development and Innovation - Innovex is focused on new product development, with an active pipeline aimed at expanding its addressable market and enhancing its product portfolio[46] - Innovex's engineering team is dedicated to R&D and product enhancements, ensuring responsiveness to customer needs and market opportunities[44] - As of December 31, 2024, Innovex held approximately 829 U.S. and international patents, supporting its proprietary technology and product innovations[51] - The company emphasizes a culture of innovation and aims to attract and retain top talent in the oil and natural gas industry[66] Customer and Revenue Insights - As of December 31, 2024, the company had 1,376 unique active customers, a decrease from 1,485 in 2023, with the top ten accounts contributing 35% of revenue[58] - The company’s top customers include major national and international oil companies, indicating a strong market position[58] Operational Strategy - The company maintains a disciplined acquisition strategy, viewing acquisitions as a core competency to drive growth and market share expansion[32] - The company operates manufacturing facilities in multiple locations, including Texas, Louisiana, Scotland, Singapore, Brazil, Canada, Vietnam, and Saudi Arabia, to support global operations[60] - The company maintains a flexible manufacturing and supply chain model to balance responsiveness with cost efficiency[60] - The company plans to increase spending with low-cost international vendors to improve margins and enhance competitiveness[61] - The company employs 2,683 individuals as of December 31, 2024, with a strong focus on employee health, safety, and well-being[67] Regulatory and Environmental Factors - The company is subject to various environmental regulations, which may impose substantial compliance costs and affect operational expenses[69] - The company is actively monitoring climate change regulations, with potential impacts on demand and pricing for fossil fuels due to international commitments[76] - The Infrastructure Investment and Jobs Act and the Inflation Reduction Act (IRA) contain billions in incentives for renewable energy and clean technologies, potentially impacting demand for oil and natural gas products[77] - The IRA imposes a methane emissions charge starting at $900 per ton in 2024, increasing to $1,500 per ton in 2026 and beyond, which could raise customers' operating costs[77] - The Bureau of Ocean Energy Management estimates that $6.9 billion in new supplemental financial assurance will be required from offshore leaseholders under new regulations[85] - Regulatory changes related to hydraulic fracturing and wastewater disposal could adversely affect demand for the company's products and services[81][84] - Almost half of U.S. states have implemented measures to reduce greenhouse gas emissions, which could impact customer operations and demand for products[78] - Environmental activism and divestment initiatives may limit the company's access to capital and affect business operations[80] - Increased regulation regarding induced seismicity could lead to greater opposition to oil and natural gas activities, impacting demand for the company's products[83] Financial Risks - The company is exposed to commodity price risk due to fluctuations in oil and natural gas prices, impacting customer activity levels[358] - As of December 31, 2024, the company had variable rate debt of $11.4 million under the Term Loan and $14.0 million under the Revolver, exposing it to interest rate risk[360] - The company does not engage in material hedging transactions, leaving it exposed to market risks inherent in its operations[359]

Financial Performance - Revenue for Q4 2024 was $251 million, representing a 65% increase quarter over quarter[5] - Net income for Q4 2024 was $32 million, with a net income margin of 13%[5] - Adjusted EBITDA for Q4 2024 was $49 million, yielding an adjusted EBITDA margin of 20%[5] - Revenues for the three months ended December 31, 2024, were $250,687 thousand, a 64.9% increase from $151,817 thousand in the previous quarter and a 88.4% increase from $133,190 thousand in the same quarter last year[23] - Net income for the twelve months ended December 31, 2024, was $140,325 thousand, compared to $73,926 thousand for the same period last year, representing an increase of 89.5%[23] - Adjusted EBITDA for the three months ended December 31, 2024, was $49.063 million, up from $32.332 million in the same period of 2023, reflecting a 52.0% increase[34] - Free cash flow for the twelve months ended December 31, 2024, was $79.845 million, compared to $60.377 million in 2023, marking a 32.2% increase[40] Cash Flow and Liquidity - Free cash flow generated in Q4 2024 was $29 million, with net cash provided by operating activities at $36 million[5][10] - The company reported a net cash provided by operating activities of $36,345 thousand for the three months ended December 31, 2024, compared to $21,722 thousand in the previous quarter, an increase of 67.5%[27] - The net cash provided by operating activities for the three months ended December 31, 2024, was $36.345 million, compared to $21.385 million in the same period of 2023, showing a growth of 70.3%[40] Debt and Liabilities - Innovex's total debt at the end of Q4 2024 was $35 million, representing 0.26x trailing twelve month adjusted EBITDA[10] - Total liabilities increased to $239,327 thousand as of December 31, 2024, from $228,432 thousand as of September 30, 2024, a rise of 3.9%[25] Shareholder Returns - The company announced a $100 million share buyback authorization to enhance shareholder returns[5][16] Growth and Acquisitions - The company achieved $30 million in annualized merger cost synergies just five months post-merger[5] - The company acquired Downhole Well Solutions, enhancing its market position in proprietary drilling optimization tools[5] - The company incurred acquisition costs of $7,808 thousand in the three months ended December 31, 2024, compared to $20,296 thousand in the previous quarter, reflecting a decrease of 61.5%[23] - The company incurred acquisition costs of $33.300 million for the twelve months ended December 31, 2024, compared to $2.327 million in 2023, indicating a significant increase in acquisition-related expenses[38] Assets and Equity - Total assets as of December 31, 2024, were $1,197,483 thousand, up from $1,132,783 thousand as of September 30, 2024, indicating a growth of 5.7%[25] - The ending equity for the twelve months ended December 31, 2024, was $958.156 million, a substantial increase from $328.921 million in 2023, reflecting a growth of 191.5%[38] Revenue Breakdown - Revenue from North America Onshore for the three months ended December 31, 2024, was $102.774 million, up from $85.348 million in the same period of 2023, a growth of 20.5%[42] - International & Offshore revenue for the three months ended December 31, 2024, was $147.913 million, significantly higher than $47.842 million in the same period of 2023, representing a 208.5% increase[42] Earnings Per Share - Basic earnings per share for the three months ended December 31, 2024, were $0.47, down from $2.03 in the previous quarter, indicating a significant decrease due to the prior quarter's exceptional performance[23]

Financial Performance - For the nine months ended September 30, 2024, Innovex reported net income, income from operations, and Adjusted EBITDA as approximately 26%, 5%, and 22% of revenue, respectively, with capital expenditures accounting for only 1% of revenue [98]. - Innovex's income from operations for the nine months ended September 30, 2024, was approximately $22.2 million, a decrease from $74.0 million for the same period in 2023 [98]. - Revenues for the three months ended September 30, 2024, were $151.8 million, a 9% increase from $139.1 million in the same period of 2023 [118]. - Net income for the three months ended September 30, 2024, was $82.6 million, a 437% increase from $15.4 million for the same period in 2023 [131]. - Net income for the nine months ended September 30, 2024, was $108.5 million, an increase of $53.0 million, or 95%, from $55.5 million for the same period in 2023 [144]. - Adjusted EBITDA for the three months ended September 30, 2024, was $27.4 million, a decrease of 18% from $33.3 million in the same period of 2023 [164]. - The company reported a Free Cash Flow of $51.1 million for the nine months ended September 30, 2024, an increase of 27% from $40.1 million in the same period of 2023 [168]. Market Contribution - The North America market contributed approximately 63% of total revenue, while international and offshore markets accounted for 37% [94]. - The company aims to significantly increase revenue from international and offshore markets, particularly in the Middle East, which has become its largest international market [94]. - NAM market revenue for the nine months ended September 30, 2024, was $258.3 million, a decrease of $22.5 million from $280.8 million in the same period of 2023 [131]. - International and Offshore market revenue for the nine months ended September 30, 2024, was $151.8 million, an increase of $10.2 million from $141.6 million in the same period of 2023 [131]. Costs and Expenses - Cost of revenues for the three months ended September 30, 2024, was $99.1 million, an 11% increase from $89.2 million for the same period in 2023 [120]. - Selling, general and administrative expenses for the three months ended September 30, 2024, were $38.0 million, a 98% increase from $19.2 million in the same period of 2023 [121]. - Total costs and expenses for the three months ended September 30, 2024, were $165.0 million, a 43% increase from $115.1 million in the same period of 2023 [118]. - Acquisition costs for the three months ended September 30, 2024, were $20.3 million, a significant increase from $0.8 million in the same period of 2023 [125]. - Acquisition costs for the nine months ended September 30, 2024, were $25.5 million, an increase of $23.5 million from $2.0 million for the same period in 2023 [138]. Merger and Corporate Structure - Innovex's merger with Legacy Innovex was completed on September 6, 2024, with the new company name being Innovex International, Inc. [100]. - The merger resulted in Legacy Innovex stockholders receiving 32,183,966 shares of the new company common stock [101]. Cash Flow and Indebtedness - Cash provided by operating activities was $57.1 million for the nine months ended September 30, 2024, compared to $54.5 million for the same period in 2023, reflecting a $2.6 million increase [149]. - Net cash provided by investing activities was $150.4 million for the nine months ended September 30, 2024, compared to $(31.6) million for the same period in 2023, indicating a $182.0 million increase [151]. - Net cash used in financing activities was $(114.2) million for the nine months ended September 30, 2024, an increase of $91.2 million from $(23.0) million for the same period in 2023 [152]. - As of September 30, 2024, total indebtedness was $23.0 million, with cash and restricted cash of $99.9 million and availability under the Revolver of $90.8 million [145]. - As of September 30, 2024, the company had $12.7 million in borrowings under the Term Loan and $31.3 million under the Revolver, compared to $19.0 million and $31.3 million, respectively, as of September 30, 2023 [159]. Tax and Valuation - Income tax expense for the nine months ended September 30, 2024, was $6.9 million, a decrease of $8.5 million from $15.4 million for the same period in 2023 [143]. - The company had a valuation allowance for deferred tax assets of $65.1 million as of September 30, 2024 [173]. Risk Management and Impairment - The company is indirectly exposed to fluctuations in oil and natural gas prices, which may impact drilling and completion activity levels of its customers in the exploration and production industries [181]. - Legacy Innovex performs annual impairment analysis of goodwill as of December 31st, requiring judgments about future revenues and costs related to long-term assets [176]. - The estimates and assumptions used in impairment assessments are considered reasonable, but significant market changes could lead to future impairments [178]. - Credit risk is managed by analyzing the financial condition of counterparties, primarily E&P operators, before accepting new customers [183]. - The company evaluates property and equipment for impairment whenever changes in circumstances indicate that the carrying amount may not be recoverable [176]. Financial Ratios - The company maintained a total leverage ratio of not more than 2.50 to 1.00 as of the last day of each fiscal quarter, in compliance with the Credit Agreement [158]. - The company reported a fixed charge coverage ratio of not less than 1.10 to 1.00 as of the last day of each fiscal quarter, contingent on certain conditions [158]. - The company's Return on Capital Employed (ROCE) decreased to 9% for the twelve months ended September 30, 2024, down from 22% in the previous year [166].

Financial Performance - Innovex reported a strong financial performance with a net cash position supporting long-term growth[10]. - Revenue for Q3 2024 was $152 million, representing a 17% increase quarter over quarter[16]. - Adjusted EBITDA for Q3 2024 was $27 million, with an Adjusted EBITDA margin of 18%[16]. - Free Cash Flow for Q3 2024 was $20 million[16]. - Total cash on the balance sheet is $100 million, with total debt of $23 million, resulting in net cash of $77 million[18]. - Legacy Innovex's revenue for 2023 is projected at $556 million, an increase from $467 million in 2022[32]. - Legacy Dril-Quip's revenue for 2023 is projected at $478 million, up from $362 million in 2022[34]. - Adjusted EBITDA for the combined company in 2023 is projected to be $221 million, with a net income margin of 9%[36]. Strategic Goals - The company aims to create a unique energy industrial platform focused on delivering exceptional value and returns for shareholders[10]. - The company emphasizes a capital-light model with high returns, aiming for disciplined acquisitions and divestitures[11]. - The company aims to leverage complementary products and technologies to drive organic growth post-merger[14]. - The company plans to grow Innovex's product suite in Canada by leveraging Dril-Quip's infrastructure[20]. - The company aims to leverage Dril-Quip's brand and customer relationships to expand Innovex products in offshore and subsea markets[20]. Merger and Integration - The merger with Dril-Quip closed on September 6, 2024, with Legacy Dril-Quip stockholders owning approximately 52% and Legacy Innovex stockholders owning about 48%[14]. - The company has been renamed Innovex International, Inc., and the ticker changed from DRQ to INVX[14]. - Expected annual cost synergies of at least $30 million, with 50% anticipated to be realized within 12 months and 100% within 24 months[20]. - Achieved the first $15 million of cost synergies in year 1, with a clear path to achieving the full $30 million within the projected timeframe[20]. - Combined company expected to have an implied $58 million adjusted EBITDA opportunity if legacy Dril-Quip margins improve to legacy Innovex levels[20]. Market Outlook - Q4 2024 revenue guidance is projected to be between $220 million and $230 million[16]. - Q4 2024 Adjusted EBITDA is expected to be between $35 million and $40 million[16]. - The market assumption for Q4 2024 indicates flat activity compared to Q3 2024[16]. Risk Factors - The company acknowledges substantial risks and uncertainties that could affect future performance, particularly related to the merger with Dril-Quip[3]. - The company has not independently verified the accuracy of third-party information used in its financial presentations, indicating potential risks[4]. - Innovex's management has provided an outlook regarding Adjusted EBITDA, a non-GAAP financial measure, but specific guidance for reconciling items is not available[8]. - Innovex's financial information includes both GAAP and non-GAAP measures, with non-GAAP measures providing additional insights into operational performance[7]. Company Culture - Innovex's culture promotes innovation and rapid response to market needs, fostering a customer-centric approach[12]. - The company has a diversified presence across attractive global markets, enhancing its competitive position[11].

Core Insights - Dril-Quip Inc (DRQ) shares increased by 3.32% on October 2, reaching an intraday high of $15.33 before closing at $15.27, which is 50.63% below its 52-week high of $30.93 and 8.55% above its 52-week low of $14.07 [1] - The average one-year price target for Dril-Quip Inc from three analysts is $28.33, indicating a potential upside of 85.55% from the current price [2] - GuruFocus estimates the fair value (GF Value) for Dril-Quip Inc at $37.43, suggesting a significant upside of 145.12% from the current price [2] Trading Performance - The trading volume for Dril-Quip Inc was reported at 0 shares, which is 0.0% of the average daily volume of 301,284 [1] Analyst Recommendations - The consensus recommendation from three brokerage firms for Dril-Quip Inc is an average rating of 3.0, indicating a "Hold" status on a scale where 1 is Strong Buy and 5 is Sell [2]

Core Viewpoint - Dril-Quip and Innovex have decided to waive the requirement for Dril-Quip's stockholders to approve a charter amendment, facilitating a smoother merger process [1][3][7] Group 1: Merger Details - The charter amendment proposal and related governance proposals have been withdrawn from the agenda of Dril-Quip's special stockholders meeting scheduled for September 5, 2024 [2][3] - The removal of these governance provisions aims to streamline the merger process between Dril-Quip and Innovex [3][6] Group 2: Shareholder Engagement - The decision to withdraw the charter amendment was influenced by shareholder feedback, indicating concerns over certain governance provisions [4][5] - Dril-Quip's chairman emphasized the company's commitment to strong corporate governance and responsiveness to shareholder input [5][6] Group 3: Strategic Implications - Despite the withdrawal of the charter amendment proposal, the merger remains on track, with both companies reaffirming their commitment to completing it [6][7] - The strategic benefits and value creation for stakeholders are highlighted as key motivations for the merger [6][7]

Core Viewpoint - Dril-Quip, Inc. is facing significant opposition to its proposed merger with Innovex Downhole Solutions, primarily from GAMCO, which holds 8.32% of Dril-Quip's shares, and Institutional Shareholder Services (ISS) has issued a mixed recommendation regarding the merger [1][2][5] Merger Details - The merger aims to combine Dril-Quip and Innovex under the Innovex Downhole Solutions name, potentially creating a more resilient earnings profile [3] - Concerns have been raised about the merger terms, as Innovex and Amberjack Partners would gain control of the combined entity without providing a control premium to Dril-Quip shareholders [3][4] - The new board structure would consist of up to nine directors, with Amberjack appointing four members, Innovex's CEO, and Dril-Quip appointing the remaining four, effectively giving majority control to Innovex and Amberjack [4] Compensation Issues - Dril-Quip's CEO Jeff Bird is expected to receive a compensation package of $8.1 million, while CFO Kyle McClure is set to receive $3.8 million due to the change of control triggered by the merger [4] Shareholder Sentiment - The future of the merger remains uncertain as shareholders prepare to vote, with significant opposition and governance concerns still prevalent [5]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Dril-Quip, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Company Disclosure - On July 8, 2024, Dril-Quip filed a current report with the SEC, revealing an error in the classification of inventory write-downs from 2021, which resulted in an understatement of "Cost of sales" and an overstatement of "Restructuring and other charges" by $67 million for the fiscal year ended December 31, 2021 [3]. - The Audit Committee concluded that the consolidated financial statements for the affected period should no longer be relied upon due to the aforementioned error, affecting all previously issued reports and communications [3]. - Dril-Quip's management stated that the company's disclosure controls and procedures as of December 31, 2023, were ineffective and that restated consolidated financial statements for the affected period would be filed [3]. Group 2: Market Reaction - Following the disclosure of the errors, Dril-Quip's stock price fell by 9.9% on July 9, 2024 [3]. Group 3: Legal Action - Shareholders who purchased Dril-Quip securities may be entitled to compensation through a class action lawsuit being prepared by Rosen Law Firm, which operates on a contingency fee basis [2].

Core Insights - Dril-Quip Inc (DRQ) reported a second-quarter 2024 adjusted earnings of 10 cents per share, a significant improvement from a loss of 3 cents in the same quarter last year [1] - The company's total quarterly revenues reached $120.3 million, up from $89.6 million in the prior-year quarter, driven by strong performance in Subsea Products and Well Construction business activities [1] Q2 Performance - In the June quarter, Dril-Quip booked Subsea Products orders of $54.1 million, reflecting a sequential rise of 25% [2] - The company incurred an operating loss of $4.7 million in Q2 2024, compared to a profit of $3.6 million in the same quarter last year [2] - Gross margin improved to 30.8% in Q2 2024, up from 26.7% in the prior-year quarter [2] Total Costs and Expenses - The cost of sales increased to $83.2 million from $65.7 million in the year-ago period [3] - Total costs and expenses for the quarter were $125 million, compared to $86 million in the corresponding period of 2023 [3] Free Cash Flow - Dril-Quip generated a negative free cash flow of $15.5 million in Q2 2024, compared to a positive free cash flow of $1.1 million reported a year ago [4] Financials - The company recorded $6.2 million in capital expenditure for the quarter [5] - As of June 30, 2024, Dril-Quip's cash balance was $189.2 million, and the balance sheet is free of debt, indicating a sound financial position [5] Zacks Rank & Peer Releases - Dril-Quip currently holds a Zacks Rank 3 (Hold) [6] - Other leading energy companies that reported second-quarter earnings include BP plc, SLB, and Exxon Mobil Corporation, all of which exceeded the Zacks Consensus Estimate of earnings for the June quarter [6]

Company Structure and Operations - Dril-Quip's operations are organized into three segments: Subsea Products, Subsea Services, and Well Construction, with the Well Construction segment including the recently acquired Great North[61]. - Dril-Quip designs and manufactures products for both offshore and onshore applications, serving major integrated and independent oil and gas companies globally[61]. - Dril-Quip's product offerings include subsea production systems and specialty connectors, which are critical for deepwater drilling operations[61]. - The Well Construction segment now includes pressure control and completion solutions from Great North, expanding its service capabilities[61]. Merger and Acquisition - The Company expects to close the merger with Innovex in Q3 2024, with current Dril-Quip stockholders owning approximately 52% of the combined entity[62]. - The merger agreement includes a termination fee of $31.9 million if the agreement is terminated under specific circumstances[63]. - The Company has faced risks related to the acquisition of Innovex, including stockholder approval and integration challenges[62]. - The Company anticipates that the merger will enhance its product and service offerings in the energy sector[62]. Financial Performance - Revenues increased by $30.7 million, or approximately 34.3%, to $120.3 million for the three months ended June 30, 2024, compared to $89.6 million for the same period in 2023[76]. - Total revenues for the six months ended June 30, 2024, increased by $50.1 million, or approximately 27.8%, to $230.6 million from $180.5 million for the same period in 2023[78]. - Well Construction revenue increased by approximately $29.5 million, primarily driven by the acquisition of Great North, contributing $21.9 million in revenue in Q2 2024[76]. - Subsea Products revenue decreased by approximately $12.7 million in the first half of 2024, primarily due to lower Connector and Surface Equipment orders[78]. - Net loss was approximately $21.8 million for the six months ended June 30, 2024, compared to a net income of $5.8 million for the same period in 2023[79]. - Selling, general and administrative expenses increased by $15.1 million, or 33.7%, to $59.8 million for the six months ended June 30, 2024, compared to $44.7 million for the same period in 2023[78]. - Cost of sales increased by $30.4 million, or approximately 23.2%, to $161.6 million for the six months ended June 30, 2024, primarily due to the acquisition of Great North[78]. Market Conditions and Risks - Dril-Quip's financial results are subject to risks from economic conditions, including inflation and interest rates, which could impact future performance[60]. - The company operates in significant oil and gas producing areas globally, facing risks such as nationalization, war, and changes in foreign tax laws[64]. - The company expects continued pressure on crude oil and natural gas prices, which may affect drilling and production activities[64]. - Brent Crude oil prices are expected to average approximately $89 per barrel for the remainder of 2024 and $88 per barrel in 2025, compared to an average of $82 per barrel in 2023[65]. - The company has minimal operational exposure in Russia and does not intend to commit further capital towards projects in Russia due to the ongoing geopolitical situation[64]. Cash Flow and Capital Management - Net cash used in operating activities for the six months ended June 30, 2024, was $13.4 million, a significant improvement from $41.6 million for the same period in 2023, reflecting a $28.2 million increase in cash from operating activities[84]. - The change in operating assets and liabilities resulted in a $32.9 million increase in cash for the six months ended June 30, 2024, primarily due to a $21.5 million net increase in trade receivables[85]. - The company has a cash balance of approximately $3.6 million in a cash collateral account as of June 30, 2024, required to maintain a balance equal to outstanding letters of credit plus 5%[86]. - The company anticipates that its operating cash flows will be sufficient to meet its cash needs for the next twelve months[84]. - The company does not engage in material hedging transactions to mitigate market risks related to interest rate changes and foreign exchange fluctuations[90]. Foreign Currency and Taxation - Foreign currency transaction loss for the six months ended June 30, 2024, was $4.8 million, compared to a gain of $3.7 million for the same period in 2023[79]. - The company reported a foreign currency pre-tax loss of approximately $6.7 million for the three months ended June 30, 2024, compared to a gain of $4.8 million for the same period in 2023[92]. - The effective income tax rate fluctuates based on changes in earnings mix by geography and tax jurisdiction, among other factors[70]. Strategic Initiatives - The company has not incurred any costs under the 2021 global strategic plan for the three and six months ended June 30, 2024, as the plan concluded in Q3 2023[69]. - Capital expenditures for the six months ended June 30, 2024, totaled $10.9 million, including $5.4 million for machinery and equipment related to the global strategic program[85]. - The company has not repurchased any shares under the $100 million share repurchase plan authorized on February 22, 2022, for the three and six months ended June 30, 2024[87]. Performance Metrics - Adjusted EBITDA is used as a relevant measure to evaluate the company's operations and identify operating trends[80]. - Adjusted EBITDA for the three months ended June 30, 2024, was $16.5 million, compared to $8.8 million for the same period in 2023, representing an increase of 87.5%[83]. - Corporate operating loss increased by approximately $30.5 million for the six months ended June 30, 2024, primarily due to $19.4 million in expenses related to the planned merger with Innovex[79].