Drilling Tools International Corp. Reports 2024 Third Quarter Results

Core Insights - Drilling Tools International Corp. (DTI) reported total consolidated revenue of $40.1 million for Q3 2024, with tool rental revenue at approximately $28.1 million and product sales revenue totaling $12.0 million [2][3] - The company experienced a net income of $867,000 and an adjusted net income of $4.6 million for the same quarter, with diluted EPS at $0.03 and adjusted diluted EPS at $0.14 [2][3] - DTI's CEO expressed confidence in the company's acquisition growth strategy despite softer market conditions, indicating a revised outlook for 2024 due to anticipated seasonal slowdowns [3][4] Financial Performance - Total operating expenses for Q3 2024 were $35.8 million, resulting in income from operations of $4.3 million [2][3] - Adjusted EBITDA for the third quarter was reported at $11.1 million, while adjusted free cash flow was $7.8 million [2][3] - As of September 30, 2024, DTI had approximately $12 million in cash and cash equivalents, with net debt of $32.1 million [2][3] 2024 Full Year Outlook - DTI revised its full-year revenue outlook to between $145 million and $155 million, with adjusted net income projected between $7.7 million and $9.8 million [4] - Adjusted EBITDA for the full year is expected to be between $38 million and $43 million, with an adjusted EBITDA margin of 26% to 28% [4] Market Position and Strategy - The company aims to leverage its acquisition strategy to capitalize on expected industry growth over the next three to five years, despite current market headwinds [3][4] - DTI continues to enhance its cost management programs to align with market conditions and maintain its position as a market leader [3][4]