Drilling Tools International (US:DTI)2025-03-13 21:13Revenue Performance - For the full year 2024, Drilling Tools International Corp. generated total consolidated revenue of $154.4 million, with tool rental revenue of approximately $117.9 million and product sales revenue totaling $36.5 million, representing a 1.6% increase in total revenue compared to 2023[3]. - In Q4 2024, total consolidated revenue was $39.8 million, with tool rental revenue of approximately $31.5 million and product sales revenue of $8.3 million, showing a 13.5% increase in total revenue compared to Q4 2023[4]. - The company expects consolidated revenue for 2025 to be between $163 million and $183 million, with adjusted EBITDA projected between $40 million and $50 million, reflecting anticipated growth in international revenue[6]. - Estimated revenue for the twelve months ending December 31, 2025, is projected to be between $163,000,000 and $183,000,000[38]. Profitability and Income - The company reported a net income of $3.0 million for 2024, down from $14.7 million in 2023, resulting in diluted EPS of $0.09 compared to $0.59 in the previous year[3]. - DTI's comprehensive income for 2024 was $1.4 million, significantly lower than the $14.6 million reported in 2023, reflecting the impact of foreign currency translation adjustments[13]. - Net income for 2024 was $3,014 million, a decrease of 79.6% compared to $14,748 million in 2023[19]. - For the three months ended December 31, 2024, net loss was $1,345,000 compared to a net income of $3,823,000 in the same period of 2023[30]. - Adjusted Net Income for the three months ended December 31, 2024, was $600,000, a decrease of 84.4% from $3,840,000 in 2023[36]. - Adjusted Basic earnings per share for the year ended December 31, 2024, was $0.32, down from $0.88 in 2023[36]. Operational Performance - Adjusted EBITDA for 2024 was $40.1 million, with an adjusted free cash flow of $17.2 million, indicating a strong operational performance despite market challenges[3]. - Adjusted EBITDA is utilized to evaluate operating performance, excluding non-recurring items and reflecting ongoing business performance[22]. - Adjusted EBITDA for the year ended December 31, 2024, was $40,101,000, down 21.5% from $51,042,000 in 2023[30]. - Adjusted Free Cash Flow for the year ended December 31, 2024, increased to $17,209,000 from $7,292,000 in 2023, representing a 135.5% increase[33]. - The adjusted EBITDA margin for 2025 is expected to be between 25% and 27%, demonstrating a focus on maintaining profitability amid revenue growth[6]. Assets and Liabilities - Total assets increased to $222,431 million in 2024 from $132,498 million in 2023, representing a 67.8% growth[17]. - Total liabilities rose to $102,472 million in 2024, up from $43,808 million in 2023, marking an increase of 133.5%[17]. - As of December 31, 2024, DTI had approximately $6.2 million in cash and cash equivalents and net debt of $47.6 million, indicating a manageable debt level relative to its cash position[3]. - Cash flows from operating activities decreased to $6,058 million in 2024 from $23,334 million in 2023, a decline of 74.0%[19]. - Total shareholders' equity increased to $119,959 million in 2024 from $88,690 million in 2023, reflecting a growth of 35.3%[17]. Strategic Initiatives - DTI's CEO highlighted the success of their acquisition strategy, which included companies like Superior Drilling Products and Deep Casing Tools, positioning the company for future growth despite a flat market forecast[5]. - The company is actively pursuing additional acquisition targets to enhance scale, talent, and technology, aiming for geographic expansion and increased market presence[5]. - The acquisition of a business resulted in a cash outflow of $47,258 million in 2024, indicating a strategic expansion effort[19]. Capital Expenditures and Expenses - Gross capital expenditures for the twelve months ending December 31, 2025, are estimated to be between $(23,000,000) and $(29,000,000)[39]. - Transaction expenses for the year ended December 31, 2024, were $7,036,000, an increase from $5,979,000 in 2023[30]. - The company incurred cash paid for interest of $2,673 million in 2024, compared to $1,174 million in 2023, an increase of 127.6%[19]. - Proceeds from the revolving line of credit amounted to $38,618 million in 2024, compared to $73,050 million in 2023, indicating a decrease of 47.2%[19].