Financial Data and Key Metrics Changes - Full year 2024 revenue was $661 million, an increase of 19% year over year, primarily driven by the merger with Dril-Quip [39] - Fourth quarter revenue was $251 million, which is an increase of 89% year over year and 65% sequentially [39] - Adjusted EBITDA for the fourth quarter of 2024 was approximately $49 million, an increase of approximately $22 million sequentially and $17 million year over year [46] - Free cash flow for the fourth quarter of 2024 was $29 million, a sequential increase of $9 million [46] - Year-end total debt was $35 million, representing a debt to trailing 12-month adjusted EBITDA ratio of 0.26 times [47] Business Line Data and Key Metrics Changes - NAM land revenue for Q4 was $103 million, an increase of 5% compared to Q3 [40] - International and offshore revenue during Q4 was $148 million, an increase of 176% sequentially [41] - Pro forma 2024 NAM land revenue was approximately $491 million, a decrease of 6% compared to 2023 [40] - Pro forma 2024 international and offshore revenue was approximately $548 million, a decline of 5% from 2023 [41] Market Data and Key Metrics Changes - Market share in the cementing tool product line in U.S. land increased by 100 basis points in 2024 to 28% [12] - The addressable market for international opportunities for DWS is estimated to be at least one-third of the U.S. market [19] Company Strategy and Development Direction - The company aims to create a unique energy-focused industrial platform that drives exceptional value and service for customers and returns for shareholders [10] - Recent acquisitions of Downhole Well Solutions and SCF Machining Corporation are aligned with the company's strategy of small-ticket, big-impact products [15][20] - The company plans to divest the Droquip Eldridge facility to improve operational efficiency and reduce costs [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of Dril-Quip and the potential for further margin enhancement opportunities in 2025 [38] - The company is focused on improving operational performance, cash flow, and returns through facility footprint reduction and better working capital management [49] - Management expects to achieve greater than 95% on-time delivery rates in the future [34] Other Important Information - The company has authorized a $100 million share repurchase program to provide flexibility in capital allocation [53] - The company maintains a strong balance sheet with a net cash position of approximately $38 million at year-end [47] Q&A Session Summary Question: Condolences for Patrick's loss and inquiry about new technology development - Management highlighted the integration of legacy Dril-Quip technology with Innovex's centralizer technology as an exciting opportunity for future commercialization [60][61] Question: Potential proceeds from the sale of the Eldridge facility - Management indicated optimism about completing the sale at an attractive valuation but did not provide specific figures [66][67] Question: Guidance for the first quarter and seasonal trends - Management acknowledged the impact of DWS and seasonal weaknesses in certain markets, indicating a balanced outlook for Q1 [69][70] Question: Clarification on the MSA with OneSubsea - Management described the partnership as an evolution, with expectations for more concrete orders and a formalization of the relationship [76][77] Question: Additional synergies from the Eldridge facility sale - Management confirmed that additional savings from facility consolidation were anticipated, contributing to long-term EBITDA margin targets [81][83] Question: Balancing buybacks with acquisition opportunities - Management emphasized flexibility in capital allocation, evaluating M&A opportunities against the buyback program [84][85]
Innovex International, Inc.(INVX) - 2024 Q4 - Earnings Call Transcript