About Drilling Tools International Corp. DTI is a Houston, Texas based leading oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. With roots dating back to 1984, DTI now operates from 16 service and support centers across North America and maintains 7 international service and support centers across Europe and the Middle East. To learn more about DTI, please visit: www.drillingtools.com. Contact: DTI Investo ...

Drilling Tools International Corporation (NASDAQ:DTI) Q1 2024 Earnings Conference Call May 10, 2024 11:00 AM ET Company Participants Ken Dennard - Investor Relations Wayne Prejean - Chief Executive Officer David Johnson - Chief Financial Officer Conference Call Participants Jeff Grampp - Alliance Global Partners Steve Ferazani - Sidoti & Company John Daniel - Daniel Energy Operator Greetings and welcome to the Drilling Tools International 2024 First Quarter Earnings Conference Call. At this time, all partic ...

0 5 10 15 20 25 30 35 Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024 Millions of Feet E&P Capital Spending Historical Feet Drilled(3) (4) Poised for continued organic and inorganic growth | --- | --- | --- | --- | |--------------------------------|-----------|-------|----------| | Revenue | $170,000 | - | $185,000 | | Adjusted EBITDA (1) | $50,000 - | | $58,500 | | Adjusted Net Income (1) | $15,600 | - | $21,900 | ...

[Executive Summary & Business Overview](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Overview) This section details DTI's first quarter 2024 financial and strategic performance, outlines the full-year outlook, and provides essential company and forward-looking information [First Quarter 2024 Performance and Strategic Highlights](index=1&type=section&id=1.1%20First%20Quarter%202024%20Performance%20and%20Strategic%20Highlights) DTI reported Q1 2024 results meeting expectations, marked by strategic acquisitions and balance sheet strengthening Q1 2024 Key Financial Highlights (in millions) | Metric | Amount | | :---------------------- | :------- | | Total Consolidated Revenue | $37.0 | | Tool Rental Net Revenue | ~$30.0 | | Product Sales Net Revenue | $7.0 | | Operating Income | $5.1 | | Net Income | $3.1 | | Adjusted Net Income | $3.8 | | Adjusted EBITDA | $10.9 | | Adjusted Free Cash Flow | $4.7 | - Strategic Highlights: Entered into a definitive agreement to acquire **Superior Drilling Products, Inc. (SDP)**, closed the **Deep Casing Tools acquisition**, secured a new **$25 million Term Loan**, and amended and extended the **ABL Credit Facility**[4](index=4&type=chunk) Balance Sheet as of March 31, 2024 (in millions) | Metric | Amount | | :---------------------- | :------- | | Cash and Cash Equivalents | ~$14.0 | | Net Debt | $11.0 | | Undrawn ABL Credit Facility | $80.0 | [2024 Full Year Outlook](index=1&type=section&id=1.2%202024%20Full%20Year%20Outlook) DTI reaffirmed its 2024 full-year outlook, including Deep Casing Tools, with updates pending for Superior Drilling Products acquisition 2024 Full Year Outlook (excluding SDP, in millions) | Metric | Low | High | | :---------------------- | :---------- | :---------- | | Revenue | $170 | $185 | | Adjusted Net Income | $15.6 | $21.9 | | Adjusted EBITDA | $50 | $58.5 | | Adjusted EBITDA Margin | 29% | 32% | | Adjusted Free Cash Flow | $20 | $25.5 | - The 2024 outlook includes the estimated impact of the **Deep Casing Tools acquisition** but excludes any contributions from the pending acquisition of **Superior Drilling Products**, with guidance to be updated once the **SDP transaction** closes[4](index=4&type=chunk) [About Drilling Tools International Corp.](index=2&type=section&id=1.3%20About%20Drilling%20Tools%20International%20Corp.) DTI is a Houston-based global oilfield services company specializing in downhole drilling tools, operating 23 service centers worldwide - DTI is a **Houston, Texas** based leading **oilfield services company** that manufactures and rents **downhole drilling tools** used in horizontal and directional drilling of oil and natural gas wells[9](index=9&type=chunk) - The company operates from **16 service and support centers** across **North America** and maintains **7 international service and support centers** across **Europe and the Middle East**[9](index=9&type=chunk) [Forward-Looking Statements](index=2&type=section&id=1.4%20Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to risks and uncertainties, potentially causing actual results to differ from projections - Forward-looking statements are subject to numerous conditions, many of which are beyond the control of DTI, including those set forth in the **Risk Factors section** of the **Proxy Statement** and described in the **10-K**[10](index=10&type=chunk) - Key risks include: **demand** for DTI's products and services, ability to **retain customers**, ability to **source tools and raw materials**, **market competitiveness**, ability to **execute and integrate acquisitions**, potential **liability** for claims, ability to obtain **additional capital**, **political/regulatory/economic disruptions**, **dependence on IT systems**, **compliance with laws**, maintenance of **internal controls**, **volatility in stock price**, and **increased costs** as a public company[10](index=10&type=chunk) [Consolidated Financial Statements - First Quarter 2024](index=3&type=section&id=Consolidated%20Financial%20Statements%20-%20First%20Quarter%202024) This section presents DTI's consolidated financial statements for Q1 2024, including the statement of operations, balance sheets, and cash flows [Consolidated Statement of Operations and Comprehensive Income](index=3&type=section&id=2.1%20Consolidated%20Statement%20of%20Operations%20and%20Comprehensive%20Income) DTI's Q1 2024 saw a **9.37% revenue decrease** and **45.17% net income decline**, impacted by lower sales and increased shares outstanding Consolidated Statement of Operations (Q1 2024 vs Q1 2023, in thousands) | Metric | Q1 2024 | Q1 2023 | YoY Change | | :-------------------------------- | :-------- | :-------- | :--------- | | Total revenue, net | $36,974 | $40,799 | -9.37% | | Tool rental revenue | $29,966 | $32,276 | -7.16% | | Product sale revenue | $7,008 | $8,523 | -17.66% | | Total operating costs and expenses | $31,844 | $32,878 | -3.14% | | Income from operations | $5,130 | $7,921 | -35.23% | | Net income | $3,126 | $5,701 | -45.17% | | Basic earnings per share | $0.11 | $0.45 | -75.56% | | Diluted earnings per share | $0.11 | $0.29 | -62.07% | | Basic weighted-average common shares outstanding | 29,768,568 | 11,951,137 | +149.08% | | Diluted weighted-average common shares outstanding | 29,768,568 | 19,677,507 | +51.28% | [Consolidated Balance Sheets](index=4&type=section&id=2.2%20Consolidated%20Balance%20Sheets) DTI's total assets grew **25.99%** by March 31, 2024, driven by acquisitions, while total liabilities increased **72.19%** due to new debt Consolidated Balance Sheets (Mar 31, 2024 vs Dec 31, 2023, in thousands) | Metric | Mar 31, 2024 | Dec 31, 2023 | Change | | :-------------------------------- | :----------- | :----------- | :------- | | Total assets | $166,951 | $132,498 | +25.99% | | Cash | $14,050 | $6,003 | +134.05% | | Accounts receivable, net | $35,730 | $29,929 | +19.38% | | Inventories, net | $11,441 | $5,034 | +127.28% | | Property, plant and equipment, net | $70,596 | $65,800 | +7.29% | | Goodwill | $2,556 | $0 | N/A | | Intangible assets, net | $8,058 | $216 | +3639.81% | | Total liabilities | $75,438 | $43,809 | +72.19% | | Accounts payable | $16,736 | $7,751 | +115.92% | | Long-term debt | $20,000 | $0 | N/A | | Total shareholders' equity | $91,513 | $88,690 | +3.18% | [Consolidated Statement of Cash Flows](index=5&type=section&id=2.3%20Consolidated%20Statement%20of%20Cash%20Flows) DTI's Q1 2024 saw decreased operating cash, significant investing outflow from acquisitions, and substantial financing inflow from a new Term Loan Consolidated Statement of Cash Flows (Q1 2024 vs Q1 2023, in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :-------------------------------- | :-------- | :-------- | :------- | | Net cash flows from operating activities | $3,312 | $7,089 | -53.27% | | Net cash from investing activities | $(19,585) | $(1,168) | +1576.71% | | Net cash from financing activities | $24,611 | $(7,453) | N/A (swing) | | Net Change in Cash | $8,047 | $(1,532) | N/A (swing) | | Cash at End of Period | $14,050 | $820 | +1613.41% | - Key investing activity: Acquisition of a business, net of cash acquired, resulted in a cash outflow of **$18,261 thousand**[17](index=17&type=chunk) - Key financing activity: Proceeds from Term Loan amounted to **$25,000 thousand**[17](index=17&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines DTI's non-GAAP financial measures and provides reconciliations for Q1 2024 performance and the full-year 2024 outlook [Definition of Non-GAAP Financial Measures](index=6&type=section&id=3.1%20Definition%20of%20Non-GAAP%20Financial%20Measures) This section defines DTI's key non-GAAP financial measures, including Adjusted EBITDA, Adjusted Free Cash Flow, and Adjusted Net Income, used to assess operational performance - **Adjusted EBITDA** is defined as net earnings (loss) before interest, taxes, depreciation and amortization, adjusted for goodwill/asset impairment, stock-based compensation, restructuring, transaction/integration costs, and other non-recurring items[19](index=19&type=chunk) - **Adjusted Free Cash Flow** is defined as **Adjusted EBITDA** less **Gross Capital Expenditures**[21](index=21&type=chunk) - **Adjusted Net Income (Loss)** is defined as consolidated net income (loss) adjusted for goodwill/asset impairment, restructuring, transaction/integration costs, and other non-recurring items[22](index=22&type=chunk) - **Adjusted Diluted Earnings (Loss) per share** is the quotient of adjusted net income (loss) and diluted weighted average common shares[23](index=23&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures (Q1 2024)](index=7&type=section&id=3.2%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures%20(Q1%202024)) This section provides detailed reconciliations of DTI's GAAP net income to non-GAAP measures for Q1 2024 and 2023, clarifying operational performance Reconciliation of GAAP to Non-GAAP Measures (Q1 2024 vs Q1 2023, in thousands) | Metric | Q1 2024 | Q1 2023 | | :---------------------- | :-------- | :-------- | | Net income (loss) | $3,126 | $5,701 | | **Adjusted EBITDA** | $10,891 | $14,846 | | **Adjusted Free Cash Flow** | $4,664 | $7,779 | | **Adjusted Net Income** | $3,810 | $7,002 | | Adjusted Basic earnings per share | 0.13 | 0.56 | | Adjusted Diluted earnings per share | 0.13 | 0.36 | [Reconciliation of Estimated GAAP to Non-GAAP Measures (FY 2024 Outlook)](index=9&type=section&id=3.3%20Reconciliation%20of%20Estimated%20GAAP%20to%20Non-GAAP%20Measures%20(FY%202024%20Outlook)) This section reconciles estimated GAAP net income to projected non-GAAP measures for FY 2024, detailing adjustments for expected operational performance Reconciliation of Estimated GAAP to Non-GAAP Measures (FY 2024 Outlook, in thousands) | Metric | Low | High | | :---------------------- | :-------- | :-------- | | Net Income | $15,000 | $21,000 | | **Adjusted EBITDA** | $50,000 | $58,500 | | **Adjusted Free Cash Flow** | $20,000 | $25,500 | | **Adjusted Net Income** | $15,600 | $21,900 | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details for DTI's conference call and investor relations contact information [Conference Call Information](index=2&type=section&id=4.1%20Conference%20Call%20Information) This section details access information for DTI's Q1 2024 conference call, including live options and archives - DTI's first quarter conference call was scheduled for **Friday, May 10, 2024**, at **11:00 a.m. Eastern Time**[8](index=8&type=chunk) - Access options included **live dial-in** (1-201-389-0869) or **live webcast** (https://investors.drillingtools.com/news-events/events)[8](index=8&type=chunk) - An **audio replay** was available through **May 17**, and a **webcast archive** for **90 days**[8](index=8&type=chunk) [Investor Relations Contact](index=2&type=section&id=4.2%20Investor%20Relations%20Contact) This section provides contact information for DTI's Investor Relations team - Investor Relations Contacts: **Ken Dennard** / **Rick Black**[10](index=10&type=chunk) - Email: **InvestorRelations@drillingtools.com**[10](index=10&type=chunk)

HOUSTON, April 25, 2024 /PRNewswire/ -- Drilling Tools International Corp., (NASDAQ: DTI) ("DTI" or the "Company"), a global oilfield services company that designs, engineers, manufactures and provides a differentiated, rental-focused offering of tools for use in onshore and offshore horizontal and directional drilling operations, as well as other cutting-edge solutions across the well life cycle, today announced that it plans to report 2024 first quarter financial results prior to the Company's live confer ...

Financial Data and Key Metrics Changes - DTI generated total consolidated revenue of $152 million in 2023, an increase of 17.4% compared to 2022 [26] - 2023 tool rental net revenue was $119.2 million, an increase of 20.4% compared to the prior year [26] - 2023 net income was $14.7 million compared to $21.1 million in the prior year, impacted by increased operating expenses and one-time transaction-related expenses [28] - 2023 adjusted EBITDA was $51 million, which was 24% higher compared to the prior year [29] - 2023 adjusted free cash flow was $7.3 million compared to $16.5 million in 2022, primarily due to increased capital expenditures [29] Business Line Data and Key Metrics Changes - Tool rental revenue increased significantly, while product sales net revenue totaled $32.8 million, an increase of 7.4% compared to 2022 [26] - Operating expenses rose to $124.1 million in 2023 from $104.3 million in 2022, driven by personnel-related expenses and public company costs [27] Market Data and Key Metrics Changes - The U.S. rig activity declined approximately 20% from January 1st to December 31st, 2023, yet DTI's revenue increased over 17% [18] - The North American rig count is expected to remain flat throughout 2024, with long-term demand trends for oil and gas projected to grow [11] Company Strategy and Development Direction - DTI's business model focuses on rental, repair, and recovery revenues, with a strong emphasis on maintaining a relevant fleet of equipment [8] - The company is actively pursuing acquisitions to expand its capabilities, including the recent acquisition of Deep Casing Tools and a pending acquisition of Superior Drilling Products [13][21] - DTI aims to double or triple its size through thoughtful acquisitions in the oil field services sector [21] Management's Comments on Operating Environment and Future Outlook - Management believes the North American rig count has bottomed and expects robust demand trends for oil and gas in the coming years [11] - The company is positioned to capitalize on future market opportunities and anticipates more than doubling its adjusted free cash flow in 2024 [33] - DTI's strong balance sheet and credit facilities provide financial flexibility to support growth strategies [23][24] Other Important Information - DTI ended 2023 with no debt and an undrawn $60 million ABL credit facility, which was later amended to $80 million [23] - The company has a proven track record of being EBITDA positive for the last ten years, including during downturns [10] Q&A Session Summary Question: Current appetite for further M&A after recent acquisitions - Management indicated they are still exploring other deals while integrating recent acquisitions, emphasizing a thoughtful approach to M&A [42][44] Question: Organic growth CapEx and customer commitments - Management explained that growth CapEx is tied to new products and customer requests, with flexibility to adjust based on market dynamics [45][46] Question: Maintaining flat revenue in a challenging pricing environment - Management attributed flat revenue to a strong competitive position and alignment with customers, despite pricing pressures [48][49] Question: Future gas rig count recovery and budgeting - Management expressed optimism about a future recovery in gas rig counts and emphasized the importance of timing investments [54] Question: M&A strategy and market distinctions - Management discussed the need for alignment between buyer and seller expectations and the importance of strategic acquisitions that enhance cash flow and market position [55][56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K (Mark One) Washington, D.C. 20549 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-41103 DRILLING TOOLS INTERNATIONAL CORPORATION (Exact name of Registrant as specified in its Charter) Delaware 87-2488708 (State or o ...

[Overview and Highlights](index=1&type=section&id=Overview%20and%20Highlights) Drilling Tools International Corp. (DTI) reported strong 2023 results, executed strategic acquisitions, and solidified its market leadership in downhole tool rentals [2023 Full Year Highlights & Strategic Moves](index=1&type=section&id=2023%20Full%20Year%20Highlights%20%26%20Strategic%20Moves) Drilling Tools International Corp. (DTI) reported strong 2023 results with $152 million in revenue and $51 million in Adjusted EBITDA. Post year-end, the company has been active with strategic acquisitions and has significantly improved its liquidity by amending and extending its ABL Credit Facility to support future growth 2023 Full Year Financial Highlights | Metric | Value | | :--- | :--- | | Revenue | $152 million | | Net Income | $14.7 million | | Adjusted EBITDA | $51 million | | Adjusted EBITDA Margin | 33.6% | | Adjusted Free Cash Flow | $7.3 million | - Since the end of 2023, DTI has undertaken several key strategic actions: entered a definitive agreement to acquire Superior Drilling Products, Inc. (SDP), closed the acquisition of Deep Casing Tools, and amended and extended its ABL Credit Facility, increasing the revolving line of credit to **$80 million** and adding a **$25 million** term loan, both maturing in March 2029[3](index=3&type=chunk)[11](index=11&type=chunk) [Business & Market Position](index=1&type=section&id=Business%20%26%20Market%20Position) DTI positions itself as a market leader in downhole tool rentals for North America and the Gulf of Mexico, leveraging its extensive rental model and broad distribution for competitive advantage, particularly in volatile markets - DTI's competitive advantage stems from its extensive rental model with over **65,000 tools**, broad distribution capabilities, and a diverse customer base, which allows for operational scalability and outperformance during commodity price volatility[4](index=4&type=chunk) - The company has established a robust M&A pipeline to strategically consolidate the industry, with recent acquisitions like Deep Casing Tools and the pending acquisition of SDP aimed at expanding growth opportunities internationally, particularly in Europe and the Middle East[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) DTI achieved significant revenue growth in 2023, driven by tool rentals, while strategically managing capital expenditures and enhancing liquidity [2023 Financial and Operating Results](index=2&type=section&id=2023%20Financial%20and%20Operating%20Results) In 2023, DTI's total revenue grew 17.4% to $152 million, driven by a 20.4% increase in Tool Rental revenue. Operating income rose to $27.9 million. However, Adjusted Free Cash Flow decreased to $7.3 million from $16.5 million in 2022, primarily due to a significant $19 million increase in capital expenditures to support customer demand and future growth 2023 vs 2022 Financial Performance | Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $152.0M | $129.6M | +17.4% | | Tool Rental Revenue | $119.2M | $99.0M | +20.4% | | Product Sales Revenue | $32.8M | $30.5M | +7.4% | | Operating Income | $27.9M | $25.3M | +10.3% | | Adjusted EBITDA | $51.0M | $41.2M | +23.8% | - Adjusted free cash flow decreased from **$16.5 million** in 2022 to **$7.3 million** in 2023, primarily caused by a **~$19 million** year-over-year increase in capital expenditures aimed at meeting customer demand for new products[8](index=8&type=chunk) - Operating expenses increased to **$124.1 million** from **$104.3 million** in 2022, attributed to costs associated with going public and additional administrative and compliance expenses[6](index=6&type=chunk) [Fourth Quarter 2023 Results](index=2&type=section&id=Fourth%20Quarter%202023%20Results) The fourth quarter of 2023 saw a slight decline in revenue to $35.2 million compared to Q4 2022, reflecting industry-wide rig count and market activity declines. In response, DTI scaled back capital expenditures, successfully meeting its adjusted free cash flow target for the quarter Q4 2023 vs Q4 2022 Financial Performance | Metric | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Total Revenue | $35.2M | $36.7M | | Operating Income | $4.5M | $8.0M | | Net Income | $3.8M | $6.8M | - The company scaled back on capital expenditures during the second half of the year to meet its adjusted free cash flow target of **$6 to $8 million**, demonstrating its ability to generate returns in lieu of growth[9](index=9&type=chunk) [Financial Position and Liquidity](index=2&type=section&id=Financial%20Position%20and%20Liquidity) As of December 31, 2023, DTI held $6 million in cash and had no debt. Subsequent to year-end, the company significantly enhanced its financial flexibility by amending its credit facility to increase borrowing capacity to $80 million and adding a new $25 million term loan, both maturing in March 2029 - At the end of 2023, DTI had **$6 million** of cash and cash equivalents and no debt[10](index=10&type=chunk) - On March 18, 2024, DTI amended its credit facility, increasing the revolving credit line from **$60 million to $80 million** and adding a new **$25 million term loan**, with maturity for both extended to March 2029[11](index=11&type=chunk) [2024 Outlook](index=3&type=section&id=2024%20Outlook) DTI anticipates doubling adjusted free cash flow in 2024, driven by industry trends and strategic acquisitions, with clear financial guidance provided [Management's Expectations](index=3&type=section&id=Management%27s%20Expectations) Management is optimistic about 2024, expecting to more than double the company's adjusted free cash flow. Growth is anticipated to be driven not just by rig count, but also by the industry trend of drilling longer laterals, where DTI's proprietary tools offer customers efficiency and cost savings - The company expects to more than double its adjusted free cash flow in 2024[13](index=13&type=chunk) - DTI's business is positively aligned with the trend of longer laterals in multi-well pads, as its advanced rental tools help customers lower drilling costs[13](index=13&type=chunk) [2024 Financial Guidance](index=3&type=section&id=2024%20Financial%20Guidance) DTI provided its full-year 2024 outlook, which includes the impact of the recent Deep Casing Tools acquisition but excludes any contribution from the pending Superior Drilling Products acquisition. The company projects revenue between $170 million and $185 million and adjusted free cash flow between $20 million and $25.5 million Full Year 2024 Outlook | Metric | Low Estimate | High Estimate | | :--- | :--- | :--- | | Revenue | $170 million | $185 million | | Net Income | $15 million | $21 million | | Adjusted EBITDA | $50 million | $58.5 million | | Adjusted EBITDA Margin | 29% | 32% | | Adjusted Free Cash Flow | $20 million | $25.5 million | - The 2024 outlook includes the estimated impact from the Deep Casing Tools acquisition but does not include contributions from the pending acquisition of Superior Drilling Products (SDP), with guidance to be updated after the SDP transaction closes[14](index=14&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) DTI's 2023 financial statements reflect increased revenue, a shift in net income, growth in assets, and improved cash flow management [Consolidated Statement of Operations](index=5&type=section&id=Consolidated%20Statement%20of%20Operations) For the full year 2023, DTI's revenue increased to $152.0 million from $129.6 million in 2022. However, due to higher operating costs and other expenses, net income decreased to $14.7 million from $21.1 million in the prior year. The fourth quarter showed a similar trend, with revenue slightly down year-over-year and net income falling to $3.8 million from $6.8 million in Q4 2022 Full Year Statement of Operations (in thousands) | Account | 2023 | 2022 | | :--- | :--- | :--- | | Total revenue, net | $152,034 | $129,556 | | Operating income | $27,899 | $25,277 | | Net income | $14,748 | $21,080 | | Diluted earnings per share | $0.59 | $1.07 | Fourth Quarter Statement of Operations (in thousands) | Account | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Total revenue, net | $35,189 | $36,660 | | Operating income | $4,528 | $7,950 | | Net income | $3,823 | $6,817 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, DTI's total assets increased to $132.5 million from $105.2 million in 2022, primarily due to a rise in property, plant, and equipment. Total liabilities decreased significantly to $43.8 million from $56.1 million, largely because the revolving line of credit was paid down. Consequently, total shareholders' equity more than doubled to $88.7 million Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total current assets | $46,408 | $40,155 | | Property, plant and equipment, net | $65,800 | $44,154 | | **Total assets** | **$132,498** | **$105,218** | | Total current liabilities | $22,288 | $36,240 | | **Total liabilities** | **$43,808** | **$56,116** | | **Total shareholders' equity** | **$88,690** | **$31,224** | [Consolidated Statement of Cash Flows](index=8&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the twelve months ended December 31, 2023, net cash from operating activities was $23.3 million, an increase from $14.0 million in 2022. Net cash used in investing activities was $23.9 million, mainly for equipment purchases. Net cash from financing activities was $4.3 million, reflecting proceeds from the merger and PIPE financing, offset by repayments on the revolving credit line. The company's cash position increased by $3.7 million to end the year at $6.0 million Consolidated Cash Flow Summary (in thousands) | Category | 2023 | 2022 | | :--- | :--- | :--- | | Net cash from operating activities | $23,334 | $13,994 | | Net cash from investing activities | ($23,864) | ($2,530) | | Net cash from financing activities | $4,295 | ($9,337) | | **Net Change in Cash** | **$3,651** | **$2,300** | | Cash at End of Period | $6,003 | $2,352 | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) The report defines and reconciles key non-GAAP measures, Adjusted EBITDA and Adjusted Free Cash Flow, for both historical performance and future outlook [Definition of Non-GAAP Measures](index=10&type=section&id=Definition%20of%20Non-GAAP%20Measures) The company uses Adjusted EBITDA and Adjusted Free Cash Flow as supplemental non-GAAP measures. Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, adjusted for specific items like stock-based compensation and transaction costs. Adjusted Free Cash Flow is defined as Adjusted EBITDA less Gross Capital Expenditures, used as a performance measure - **Adjusted EBITDA:** Defined as net earnings before interest, taxes, depreciation, and amortization, further adjusted for items such as stock-based compensation, transaction costs, and other non-recurring expenses to better reflect ongoing business performance[31](index=31&type=chunk) - **Adjusted Free Cash Flow:** Defined as Adjusted EBITDA less Gross Capital Expenditures, used by management as a performance measure for planning and evaluation, not as a liquidity measure[33](index=33&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The report provides detailed reconciliations of Net Income to Adjusted EBITDA and Adjusted Free Cash Flow for both the full year and fourth quarter of 2023. For FY 2023, Net Income of $14.7 million was reconciled to Adjusted EBITDA of $51.0 million and Adjusted Free Cash Flow of $7.3 million. It also includes reconciliations for the 2024 financial outlook FY 2023 Reconciliation Summary (in thousands) | Measure | Amount | | :--- | :--- | | Net Income | $14,748 | | Adjustments (D&A, Tax, Interest, etc.) | $36,294 | | **Adjusted EBITDA** | **$51,042** | | Gross capital expenditures | ($43,750) | | **Adjusted Free Cash Flow** | **$7,292** | 2024 Outlook Reconciliation Summary (in thousands, High-End) | Measure | Amount | | :--- | :--- | | Net Income (High) | $21,000 | | Adjustments (D&A, Tax, Interest, etc.) | $37,500 | | **Adjusted EBITDA (High)** | **$58,500** | | Gross capital expenditures (High) | ($33,000) | | **Adjusted Free Cash Flow (High)** | **$25,500** |

ABL Amendment Provides Additional Financial Flexibility, Extends Maturity to 2029 and Modifies Certain Financial Covenants New Term Loan Adds $25 Million of Increased Borrowing Capacity HOUSTON, March 18, 2024 /PRNewswire/ -- Drilling Tools International Corp. (NASDAQ: DTI) ("DTI" or the "Company"), a global oilfield services company that manufactures and provides a differentiated, rental-focused offering of tools for use in onshore and offshore horizontal and directional drilling operations, today announc ...

HOUSTON, March 18, 2024 /PRNewswire/ -- Drilling Tools International Corp. ("DTI" or the "Company") (NASDAQ: DTI), today announced it has closed on the acquisition of UK-based Deep Casing Tools ("DCT"), a global leader in innovative downhole technology solutions. Details of the transaction were not disclosed. Deep Casing Tools specializes in the design, engineering and manufacture of a range of patented and innovative products that add value to well construction, well completion and casing installation proc ...