Drilling Tools International (US:DTI)2025-11-07 16:31Revenue Performance - Tool rental revenues accounted for 82% of total revenues for both the three and nine months ended September 30, 2025, while product sales contributed 18%[187] - Total revenue for the three months ended September 30, 2025, was $38.8 million, a decrease of $1.3 million or 3% compared to the same period in 2024[197] - Eastern Hemisphere revenue increased by $1.8 million or 41% to $6.2 million for the three months ended September 30, 2025, driven by recent acquisitions[200] - Western Hemisphere revenue for the nine months ended September 30, 2025, was $113.7 million, an increase of $1.1 million or 1% compared to the same period in 2024[205] - Eastern Hemisphere revenue for the nine months ended September 30, 2025, was $17.4 million, a significant increase of $7.5 million or 76% compared to the same period in 2024[206] Income and Expenses - Net income for the three months ended September 30, 2025, was a loss of $0.9 million, a decrease of $1.8 million or 204% compared to a profit of $0.9 million in 2024[197] - Depreciation and amortization expense increased by $0.6 million or 10% to $6.8 million for the three months ended September 30, 2025, due to increased asset balances from acquisitions[201] - Interest expense for the three months ended September 30, 2025, was $1.3 million, an increase of $0.3 million or 29% compared to the same period in 2024[203] - Corporate and other expenses decreased by $1.1 million or 10% to $10.6 million for the nine months ended September 30, 2025, due to reallocation of expenses[207] - Depreciation and amortization expenses increased by $3.2 million, or 18%, to $20.4 million for the nine months ended September 30, 2025, compared to the same period in 2024[208] - Interest expense, net rose by $2.0 million, or 96%, to $3.9 million for the nine months ended September 30, 2025, primarily due to interest on a term loan and credit facility[209] - Other operating and non-operating expenses decreased by $0.8 million, or 15%, to $4.4 million for the nine months ended September 30, 2025, mainly due to lower transaction fees[210] - Adjusted EBITDA for the nine months ended September 30, 2025, was $29.2 million, a decrease from $30.9 million in the same period of 2024[215] Cash Flow and Financial Position - Cash provided by operating activities was $14.6 million for the nine months ended September 30, 2025, compared to $9.7 million in 2024[222] - Net cash used in investing activities was $12.7 million for the nine months ended September 30, 2025, including $5.6 million for the acquisition of Titan[223] - Net cash used in financing activities was $3.7 million for the nine months ended September 30, 2025, resulting from net debt decreases and treasury stock purchases[225] - As of September 30, 2025, the company had $4.4 million in cash and cash equivalents, sufficient for at least the next 12 months[216] - The company expects federal net operating loss carryforwards to significantly reduce cash tax payments over the next several years[220] Cybersecurity Measures - The company has not entered into any hedging arrangements to manage foreign currency risk, which may affect future results[232] - The company has implemented a suite of controls including technology hardware and software solutions to address cybersecurity risks[237] - Regular testing of system resiliency includes penetration and disaster recovery testing[237] - The company conducts regular training sessions on cybersecurity risks and mitigation strategies[237] - An incident response plan and team have been established to manage cybersecurity incidents[237] - There is no assurance that current efforts will fully mitigate cybersecurity risks[237] - Mitigation efforts do not guarantee that no cybersecurity incidents will occur[237]