Financial Performance - Total consolidated revenue for Q3 2024 was $40.1 million, with Tool Rental revenue at approximately $28.1 million and Product Sales revenue totaling $12.0 million[3]. - Net Income for Q3 2024 was $867,000, while Adjusted Net Income was $4.6 million, resulting in a Diluted EPS of $0.03 and Adjusted Diluted EPS of $0.14[3]. - Adjusted EBITDA for Q3 2024 was $11.1 million, and Adjusted Free Cash Flow was $7.8 million[3]. - The company revised its 2024 full-year revenue outlook to between $145 million and $155 million, with Adjusted Net Income expected to be between $7.7 million and $9.8 million[5]. - DTI's total operating expenses for Q3 2024 were $35.8 million, leading to an Income from Operations of $4.3 million[3]. - Net income for the nine months ended September 30, 2024, was $4,359,000, a decrease of 60% compared to $10,925,000 in the same period of 2023[16]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $30,982,000, down 24% from $40,840,000 in the same period of 2023[26]. - Adjusted net income for the nine months ended September 30, 2024, was $8,710,000, down from $14,965,000 in 2023, reflecting a decrease of about 41.0%[30]. - For the three months ended September 30, 2024, the net income decreased to $867,000 from $4,287,000 in the same period of 2023, representing a decline of approximately 80.7%[30]. - The company reported an adjusted income before tax of $9,540,000 for the nine months ended September 30, 2024, down from $22,089,000 in 2023, a decrease of approximately 56.7%[30]. Cash Flow and Investments - As of September 30, 2024, DTI had approximately $12 million in cash and cash equivalents and net debt of $32.1 million[3]. - Net cash flows from operating activities for the nine months ended September 30, 2024, were $9,723,000, compared to $17,484,000 in 2023, reflecting a decline of 44%[16]. - Cash at the end of the period increased to $11,961,000 in 2024 from $3,989,000 in 2023, representing a growth of 199%[16]. - The company reported a net cash from investing activities of $(46,132,000) for the nine months ended September 30, 2024, compared to $(20,027,000) in 2023, indicating increased investment activity[16]. - Adjusted Free Cash Flow for the nine months ended September 30, 2024, was $11,303,000, compared to $4,064,000 in 2023, showing a significant increase of 178%[28]. - The company incurred gross capital expenditures of $19,678,000 for the nine months ended September 30, 2024, down from $36,776,000 in 2023, a reduction of 47%[28]. - The company completed the acquisition of a business for $38,670,000, impacting cash flows from investing activities significantly[16]. Operational Strategy and Market Position - The company is focused on an acquisition growth strategy to enhance its market position amid industry headwinds[4]. - DTI operates 16 service and support centers in North America and 11 international centers across EMEA and APAC regions[7]. - The company is enhancing its cost management program to align with current market conditions and anticipates a sequential slowdown in Q4 due to holiday breaks and budget constraints from customers[4]. Shareholder Information - The basic weighted-average common shares outstanding increased to 30,893,602 for the nine months ended September 30, 2024, from 18,608,708 in 2023, an increase of about 65.5%[30]. - The diluted weighted-average common shares outstanding increased to 31,404,333 for the nine months ended September 30, 2024, compared to 23,554,593 in 2023, an increase of about 33.2%[30]. Future Projections - Estimated adjusted EBITDA for the twelve months ended December 31, 2024, is projected to be between $38,000,000 and $43,000,000, with an adjusted EBITDA margin of 26% to 28%[31]. - Estimated adjusted free cash flow for the twelve months ended December 31, 2024, is expected to range from $18,000,000 to $21,000,000, with a free cash flow margin of 12% to 14%[32]. - The estimated adjusted net income for the twelve months ended December 31, 2024, is projected to be between $7,700,000 and $9,800,000[33]. Credit Quality and Asset Management - The company reported a provision for credit losses of $42,000 in 2024, a decrease from $502,000 in 2023, indicating improved credit quality[16]. - The company reported a loss on asset disposal of $27,000 in 2024, with no comparable loss in 2023, indicating potential asset management challenges[16]. - Transaction expenses for the nine months ended September 30, 2024, totaled $4,766,000, compared to $5,963,000 in the same period of 2023, indicating a decrease of approximately 20.0%[30].
ROC ENERGY ACQUI(ROC) - 2024 Q3 - Quarterly Results