Company Overview - Superior Drilling Products, Inc. (SDPI) is an innovative drilling tool technology company that provides cost-saving solutions to enhance production efficiencies in the oil and natural gas drilling industry. The company designs, manufactures, repairs, and sells drilling tools, including patented technologies like Drill-N-Ream® and Strider™ oscillation system [3][11] - Drilling Tools International Corporation (DTI) is a leading oilfield services company based in Houston, Texas, specializing in the manufacture and rental of downhole drilling tools for horizontal and directional drilling. DTI operates 16 service centers in North America and 7 international centers, maintaining a fleet of over 65,000 tools [20] Merger Details - DTI is in the process of acquiring SDPI, with the deadline for SDPI shareholders to elect their preferred form of merger consideration set for July 29, 2024. The merger is expected to close on August 1, 2024, pending shareholder approval [18][19] - Shareholders of SDPI can choose between receiving either 0.313 shares of DTI common stock or $1.00 in cash for each share of SDPI common stock they own. The total number of shares issued will be subject to proration based on shareholder elections [9][19] Election Process - SDPI shareholders who have not made an election or wish to change their previous election must submit completed election forms to the Exchange Agent, Broadridge Financial Solutions, Inc., by the Election Deadline [1][8] - Shareholders holding shares through banks or brokers may face earlier deadlines and should follow specific instructions from their financial institutions [1] Regulatory Filings - DTI has filed a registration statement on Form S4 with the SEC, which includes a prospectus and proxy statement related to the merger. Shareholders are encouraged to read these documents carefully as they contain important information regarding the transaction [11][12]

Company Overview - Drilling Tools International Corp. (DTI) is a global oilfield services company that specializes in designing, engineering, manufacturing, and providing rental-focused tools for onshore and offshore horizontal and directional drilling operations [1][10] - The company operates 16 service and support centers across North America and 7 international service and support centers in Europe and the Middle East [10] Index Inclusion Announcement - DTI is expected to be added to multiple Russell indexes, including the Russell 2000®, Russell 2500®, Russell 3000®, Russell Small Cap Completeness® Index, and Russell Microcap® Index as part of the 2024 Annual Reconstitution [1] - The addition to these indexes is anticipated to occur after equity markets close on June 28, 2024, with trading as a component starting on July 1, 2024 [1] Market Impact - Inclusion in the Russell indexes is seen as a significant milestone for DTI, enhancing its visibility and providing access to a broader range of investment managers and institutional investors [7] - The Russell 2000 Index specifically measures the performance of the small-cap segment of U.S. equity markets, which is a subset of the larger Russell 2500 and 3000 indexes [13] FTSE Russell Overview - FTSE Russell is a global index leader that provides benchmarking, analytics, and data solutions for investors, covering 98% of the investable market globally [3][14] - Approximately $20.1 trillion is currently benchmarked to FTSE Russell indexes, indicating their extensive use by institutional and retail investors [14]

Core Viewpoint - Drilling Tools International Corp. (DTI) will present at the Sidoti & Company June 2024 Small-Cap Virtual Conference, highlighting its offerings in oilfield services and tools for drilling operations [1][2]. Company Overview - DTI is a Houston-based oilfield services company specializing in the design, engineering, manufacturing, and rental of tools for horizontal and directional drilling [1][4]. - The company has been operational since 1984 and currently has 16 service and support centers in North America, along with 7 international centers in Europe and the Middle East [4]. Event Details - The presentation is scheduled for June 12, 2024, at 10:00 a.m. EDT, and will be accessible via a live webcast [2]. - DTI management will also conduct virtual one-on-one meetings with investors during the two-day conference [2]. Investor Resources - An investor presentation will be available on the company's Investor Relations website [3]. - A replay of the webcast will be archived on the company's Events and Presentations page after the event [3].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) | Delaware | 87-2488708 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 3701 Briarpark Drive | | | Suite 150 | | | Houston, Texas | 77042 | | (Address of principal executive offices) | (Zip Code) | | Registrant's telephone number, including area code: (832) 742-8500 | | Securities registered pursuant to Section 12(b) of the Act: | | Trading | ...

The main reason DTI went public was to take advantage of the consolidation opportunity exist in the E&P sector. Therefore, the main driver for DTI's growth is expected to be M&A. The stated goal is to use this strategy and double or even triple the size of DTI in the coming years. sasacvetkovic33 Investment Thesis Drilling Tools International (NASDAQ:DTI) aims to grow by following buy-and-build strategy. The business has better margins compared to its peers, higher return on invested capital, and lower valu ...

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 ...