Superior Drilling Products’ 2017 Preliminary Revenue Estimate More Than Double Prior-Year Revenue and Exceeds Guidance
February 14 2018 - 4:00PM
Business Wire
Also Announces Extension of Supplier Contract
and Fourth Quarter 2017 Teleconference
Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or
the “Company”), a designer and manufacturer of drilling tool
technologies, today announced preliminary unaudited revenue for
2017 of $15.6 million, exceeding its expected range of $15 million
to $15.5 million that was raised for the second time in November
2017, and more than doubling 2016 revenue of $7.1 million.
Preliminary revenue for the fourth quarter of 2017 ended December
31, 2017, is expected to be approximately $3.7 million, an increase
of more than 50% over the prior-year period. Preliminary results
are subject to change pending review by the Company’s independent
accountants.
"2017 was a year of successful execution. We grew rapidly as our
flagship Drill-N-Ream® (DnR) wellbore conditioning tool continued
to demonstrate its value by gaining greater market penetration. We
expanded our future opportunities for the DnR by establishing a
market development agreement in the Middle East with a leading oil
field services company. And, we believe we have validated the
unique capabilities and durability of our StriderTM oscillation
system technology for increasing drilling efficiencies,” commented
Troy Meier, Chairman and CEO of Superior Drilling Products.
Operating expenses, excluding a $587,500 bonus in lieu of stock,
are expected to be approximately $14.7 to $14.8 million, implying
an operating margin for the year that well exceeds the November
2017 guidance of 2% to 3%. The Meiers used the bonus to pay
principle and interest on the Tronco note receivable reducing it to
$7.4 million at the end of 2017.
The Company also announced that it has mutually agreed with a
leading customer to extend its supply agreement as the parties
negotiate new terms with the intent to broaden the relationship and
not have any disruption in operations or production.
Fourth Quarter 2017 Teleconference and Webcast
The Company will release its complete fourth quarter and full
year 2017 financial results before the opening of financial markets
on Thursday, March 8, 2018, and will host a conference call that
same day.
Thursday, March 8, 20189:00 a.m. Mountain Time/11:00 a.m.
Eastern TimePhone: (201) 689-8470Webcast and accompanying slide
presentation: www.sdpi.com
A telephonic replay will be available from 12:00 p.m. MT (2:00
p.m. ET) the day of the teleconference until Thursday, March 15,
2018. To listen to the archived call, dial (412) 317-6671 and enter
conference ID number 13676788, or access the webcast replay via the
Company’s website at www.sdpi.com, where a transcript will be
posted once available.
About Superior Drilling Products, Inc.
Superior Drilling Products, Inc. is an innovative, cutting-edge
drilling tool technology company providing cost saving solutions
that drive production efficiencies for the oil and natural gas
drilling industry. The Company designs, manufactures, repairs and
sells drilling tools. SDP drilling solutions include the patented
Drill-N-Ream® well bore conditioning tool and the patented
StriderTM oscillation system technology. In addition, SDP is a
manufacturer and refurbisher of PDC (polycrystalline diamond
compact) drill bits for a leading oil field service company. SDP
operates a state-of-the-art drill tool fabrication facility, where
it manufactures its solutions for the drilling industry, as well as
customers’ custom products. The Company’s strategy for growth is to
leverage its expertise in drill tool technology and innovative,
precision machining in order to broaden its product offerings and
solutions for the oil and gas industry.
Additional information about the Company can be found at:
www.sdpi.com.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements and
information that are subject to a number of risks and
uncertainties, many of which are beyond our control. All
statements, other than statements of historical fact included in
this release, regarding our strategy, future operations, financial
position, estimated revenue and losses, projected costs, prospects,
plans and objectives of management, are forward-looking statements.
The use of words “could,” “believe,” “anticipate,” “intend,”
“estimate,” “expect,” “may,” “continue,” “predict,” “potential,”
“project”, “forecast,” “should” or “plan, and similar expressions
are intended to identify forward-looking statements, although not
all forward -looking statements contain such identifying words.
Certain statements in this release may constitute forward-looking
statements, including statements regarding the Company’s financial
position, market success with specialized tools, effectiveness of
its sales efforts, success at developing future tools, and the
Company’s effectiveness at executing its business strategy and
plans. These statements reflect the beliefs and expectations of the
Company and are subject to risks and uncertainties that may cause
actual results to differ materially. These risks and uncertainties
include, among other factors, our business strategy and prospects
for growth; our cash flows and liquidity; our financial strategy,
budget, projections and operating results; the amount, nature and
timing of capital expenditures; the availability and terms of
capital; competition and government regulations; and general
economic conditions. These and other factors could adversely affect
the outcome and financial effects of the Company’s plans and
described herein.
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version on businesswire.com: http://www.businesswire.com/news/home/20180214006433/en/
For more information, contact investor relations:Kei
Advisors LLCDeborah K. Pawlowski,
716-843-3908dpawlowski@keiadvisors.com
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