0001600422
false
0001600422
2023-11-09
2023-11-09
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
Current
Report
PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE
OF REPORT (DATE OF EARLIEST EVENT REPORTED):
November
9, 2023
SUPERIOR
DRILLING PRODUCTS, INC.
(Exact
name of registrant as specified in its charter)
Utah |
|
46-4341605 |
(State
of
Incorporation) |
|
(I.R.S.
Employer
Identification No.) |
|
|
|
1583
South 1700 East |
|
|
Vernal,
Utah |
|
84078 |
(Address
of principal executive offices) |
|
(Zip
code) |
Commission
File Number: 001-36453
Registrant’s
telephone number, including area code: (435) 789-0594
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
Registered Pursuant to Section 12(b) of the Exchange Act:
Title
of each class: |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered: |
Common
Stock, $0.001 par value |
|
SDPI |
|
NYSE
American |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
2.02. |
Results
of Operations and Financial Condition. |
On
November 9, 2023, Superior Drilling Products, Inc. issued a press release announcing its financial results for the quarter ending September
30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference. The webcast
and slide presentation for the earnings call are available on the Investors page of the Company’s website at www.sdpi.com. Information
on the Company’s website is not deemed to be incorporated herein by reference. The slide presentation is furnished herewith as
Exhibit 99.2.
In
accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 2.02 and in the attached Exhibits 99.1 and
99.2 shall be deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended.
Item
9.01 |
Financial
Statements and Exhibits. |
*Furnished
herewith.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date:
November 9, 2023 |
|
|
SUPERIOR
DRILLING PRODUCTS, INC. |
|
|
|
/s/
Christopher D. Cashion |
|
Christopher
D. Cashion |
|
Chief
Financial Officer |
Exhibit
99.1
1583
S. 1700 E. ● Vernal, UT 84078 ● (435)789-0594
FOR
IMMEDIATE RELEASE
Superior
Drilling Products Reports Third Quarter 2023 Results
|
● |
Third
quarter revenue was $5.1 million |
|
● |
Strengthened
international technical support group to capitalize on significant near- and long-term opportunities |
|
● |
Creating
greater value of underlying operations to drive value for strategic initiatives effort |
|
● |
Generated
strong cash from operations of $3.2 million in the quarter and $4.1 million year-to-date compared with $1.3 million during the prior-year
period |
|
● |
Reaffirmed
2023 outlook |
VERNAL,
UT, November 9, 2023 — Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”),
a designer and manufacturer of drilling tool technologies, today reported financial results for the third quarter ended September 30,
2023.
Troy
Meier, Chairman and CEO, commented, “Our results were solid considering the significant decline in U.S. rig count throughout the
year. On the international front, we grew year-over-year and remain excited about the many opportunities to drive future growth. During
the quarter, we continued to improve our international technical support group, advanced our international ISO quality standards to enable
expansion to the U.A.E. and Saudi Arabia, and are preparing our new localized service and technology center for future bit refurbishment
work. Ultimately, our efforts are to create the underlying foundation to better position the Company to capture opportunities and support
our strategic review efforts as we evaluate options that will drive the greatest value for all stakeholders.”
He
added, “Given the continued pressure on the U.S. market, at the beginning of the fourth quarter we rationalized our domestic operations
to better match expected near-term demand. These changes are expected to result in annual expense savings of approximately $600 thousand,
with one-time severance expenses to be recognized in the fourth quarter of 2023.”
Third
Quarter 2023 Revenue Review (See at “Definitions” the composition of product/service revenue categories.)
($
in thousands) |
|
September
30,
2023 |
|
|
June
30,
2023 |
|
|
September 30,
2022 |
|
|
Change
Sequential |
|
|
Change
Year/Year |
|
North
America |
|
$ |
4,469 |
|
|
$ |
4,325 |
|
|
$ |
4,623 |
|
|
|
3.3 |
% |
|
|
(3.3 |
)% |
International |
|
|
583 |
|
|
|
1,042 |
|
|
|
550 |
|
|
|
(44.1 |
)% |
|
|
6.0 |
% |
Total
Revenue |
|
$ |
5,052 |
|
|
$ |
5,367 |
|
|
$ |
5,173 |
|
|
|
(5.9 |
)% |
|
|
(2.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tool
(DNR) Revenue |
|
$ |
3,256 |
|
|
$ |
3,552 |
|
|
$ |
3,343 |
|
|
|
(8.3 |
)% |
|
|
(2.6 |
)% |
Contract
Services |
|
|
1,796 |
|
|
|
1,815 |
|
|
|
1,829 |
|
|
|
(1.0 |
)% |
|
|
(1.8 |
)% |
Total
Revenue |
|
$ |
5,052 |
|
|
$ |
5,367 |
|
|
$ |
5,173 |
|
|
|
(5.9 |
)% |
|
|
(2.3 |
)% |
The
Company’s North America revenue has been pressured by a continuing decline in the U.S. rig count, which impacted Drill-N-Ream®
(DNR) tool sales and contract services work. The average U.S. rig count of 650 in the third quarter of 2023 was down 111 rigs, or 15%,
from the prior-year period. After the end of the third quarter of 2023, the U.S. rig count further declined to 618.
Superior
Drilling Products Reports Third Quarter 2023 Results
November
9, 2023
Page
2 of 8
For
the third quarter of 2023, North America revenue comprised approximately 88% of total revenue, with remaining sales all within the Middle
East.
Timing
of revenue growth from the Company’s Middle East strategy contributed to sequential revenue decline for the quarter. While the
U.S. rig count has continued to decline through the year, the international rig count has increased from 900 rigs at the end of 2022
to 962 rigs at the end of October 2023.
Third
Quarter 2023 Operating Results
($
in thousands, except per share amounts) |
|
September
30,
2023 |
|
|
June
30,
2023 |
|
|
September
30,
2022 |
|
|
Change
Sequential |
|
|
Change
Year/Year |
|
Cost
of revenue |
|
$ |
2,004 |
|
|
$ |
2,013 |
|
|
$ |
2,231 |
|
|
|
(0.5 |
)% |
|
|
(10.2 |
)% |
As
a percent of sales |
|
|
39.7 |
% |
|
|
37.5 |
% |
|
|
43.1 |
% |
|
|
|
|
|
|
|
|
Selling,
general & administrative |
|
$ |
2,585 |
|
|
$ |
2,459 |
|
|
$ |
1,723 |
|
|
|
5.1 |
% |
|
|
50.0 |
% |
As
a percent of sales |
|
|
51.2 |
% |
|
|
45.8 |
% |
|
|
33.3 |
% |
|
|
|
|
|
|
|
|
Depreciation
& amortization |
|
$ |
338 |
|
|
$ |
349 |
|
|
$ |
363 |
|
|
|
(3.4 |
)% |
|
|
(6.9 |
)% |
Total
operating expenses |
|
$ |
4,926 |
|
|
$ |
4,821 |
|
|
$ |
4,317 |
|
|
|
2.2 |
% |
|
|
14.1 |
% |
Operating
Income |
|
$ |
126 |
|
|
$ |
546 |
|
|
$ |
856 |
|
|
|
(76.9 |
)% |
|
|
(85.3 |
)% |
As
a % of sales |
|
|
2.5 |
% |
|
|
10.2 |
% |
|
|
16.5 |
% |
|
|
|
|
|
|
|
|
Other
(expense) income including
income tax |
|
$ |
(112 |
) |
|
$ |
(223 |
) |
|
$ |
(217 |
) |
|
|
NA |
|
|
|
NA |
|
Net
Income |
|
$ |
14 |
|
|
$ |
323 |
|
|
$ |
639 |
|
|
|
(95.7 |
)% |
|
|
(97.8 |
)% |
Diluted
earnings per share |
|
$ |
- |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
|
(100.0 |
)% |
|
|
(100.0 |
)% |
Adjusted
EBITDA¹ |
|
$ |
784 |
|
|
$ |
1,213 |
|
|
$ |
1,525 |
|
|
|
(35.4 |
)% |
|
|
(48.6 |
)% |
As
a % of sales |
|
|
15.5 |
% |
|
|
22.6 |
% |
|
|
29.5 |
% |
|
|
|
|
|
|
|
|
1Adjusted
EBITDA is a non-GAAP measure defined as earnings before interest, taxes, depreciation, and amortization, non-cash stock compensation
expense, and unusual items. See the attached tables for important disclosures regarding SDP’s use of Adjusted EBITDA, as well as
a reconciliation of net income to Adjusted EBITDA.
Selling,
general and administrative (SG&A) expenses increased 50% year-over-year largely due to the Company’s international expansion,
which included the hiring of technical sales and business development personnel and significant travel-related expenses in support of
the business development activities. Also included in SG&A were legal expenses of $260 thousand due to continuing litigation for
the Company’s patent infringement lawsuit over violations of the patents on its DNR tool and $80 thousand in fees as part of the
Company’s strategic review process.
Depreciation
and amortization expense decreased as a result of fully amortizing intangible assets and fully depreciating manufacturing center equipment.
During
the third quarter of 2023, the Company received $199 thousand from a non-management shareholder due to short-swing SEC profit rules.
The funds were recognized as other income. Partially offsetting those gains was a $43 thousand expense due to an early redemption fee
as part of the Company’s debt refinancing during the quarter.
Balance
Sheet and Liquidity
On
July 28, 2023, the Company executed a new credit agreement with Vast Bank, National Association, which included a 5-year, $1.7 million
term loan, a 2-year, $750,000 revolving credit line, and a program whereby the lender can purchase certain accounts receivable. The proceeds
from the receivables program were used to repay the full amount outstanding under the Company’s prior credit agreement. Total debt
at quarter-end was $2.5 million.
Superior
Drilling Products Reports Third Quarter 2023 Results
November
9, 2023
Page
3 of 8
Year-to-date
cash generated by operations was $4.1 million compared with $1.3 million in the year-ago period. Cash at the end of the quarter was $4.3
million, double the balance from year-end 2022, reflecting improved working capital and the timing associated with the program whereby
the Company’s lender had purchased certain accounts receivables. After quarter end, in October, SDP made a $1.2 million payment
to its lender as part of the accounts receivable lending program.
Capital
expenditures of $3.1 million year-to-date were largely in support of the Company’s Middle East operations, which included the DNR
rental tool fleet and the new service and technology center that opened in the second quarter. The Company expects capital spending for
fiscal 2023 to range between $3.5 million to $4.0 million.
Reaffirmed
2023 guidance (As of November 9, 2023)
Revenue |
$22.0
million to $24.0 million |
|
|
SG&A
expense |
$9.0
million to $9.5 million
(includes
approximately $1.2 million
in
legal expenses for ongoing patent infringement litigation) |
|
|
Adjusted
EBITDA1 |
$5.5
million to $6.5 million |
1See
“Forward Looking Non-GAAP Financial Measures” below for additional information about this non-GAAP measure.
Webcast
and Conference Call
The
Company will host a conference call and live webcast today at 10:00 am Mountain Time
(12:00
pm Eastern Time) to review the results of the quarter and discuss its corporate strategy and outlook. The discussion will be accompanied
by a slide presentation that will be made available prior to the conference call on SDP’s website at www.sdpi.com/events. A question-and-answer
session will follow the formal presentation.
The
conference call can be accessed by calling (201) 689-8470. Alternatively, the webcast can be monitored at www.sdpi.com/events. A telephonic
replay will be available from 2:00 pm MT (4:00 pm ET) the day of the teleconference until Thursday, November 23, 2023. To listen to the
archived call, please call (412) 317-6671 and enter conference ID number 13741632 or access the webcast replay at www.sdpi.com, where
a transcript will be posted once available.
Definitions
and Composition of Product/Service Revenue:
Tool
(DNR) Revenue is the sum of tool sales/rental revenue and other related tool revenue, which is comprised of royalties and fleet maintenance
fees.
Contract
Services revenue is comprised of repair and manufacturing services for drill bits and other tools or products for customers.
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 Strider™ oscillation system
technology. In addition, SDP is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for leading oil field
service companies. 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.
Superior
Drilling Products Reports Third Quarter 2023 Results
November
9, 2023
Page
4 of 8
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, including, without limitations,
the Company’s strategic review process, the continued impact of COVID-19 on the business, the Company’s strategy, future
operations, success at developing future tools, the Company’s effectiveness at executing its business strategy and plans, financial
position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and ability to outperform 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. 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, the effectiveness of success at expansion in the Middle East, options available
for market channels in North America, the deferral of the commercialization of the Strider technology, the success of the Company’s
business strategy and prospects for growth; the market success of the Company’s specialized tools, effectiveness of its sales efforts,
its cash flow and liquidity; financial projections and actual operating results; the amount, nature and timing of capital expenditures;
the availability and terms of capital; competition and government regulations; the duration of the COVID-19 pandemic and related impact
on the oil and natural gas industry; and general economic conditions. These and other factors could adversely affect the outcome and
financial effects of the Company’s plans and described herein. The Company undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date hereof.
Forward
Looking Non-GAAP Financial Measures
Forward-looking
adjusted EBITDA is a non-GAAP measure. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP
financial measures to their most directly comparable forward-looking GAAP financial measure because such information is not available,
and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting
or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the
Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The
unavailable information could have a significant impact on the Company’s fiscal 2023 and future financial results. This non-GAAP
financial measure is a preliminary estimate and is subject to risks and uncertainties, including, among others, changes in connection
with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary
financial data set forth in this presentation may be material.
For
more information, contact investor relations:
Deborah
K. Pawlowski / Craig P. Mychajluk
Kei
Advisors LLC
716-843-3908
/ 716-843-3832
dpawlowski@keiadvisors.com
/ cmychajluk@keiadvisors.com
FINANCIAL
TABLES FOLLOW
Superior
Drilling Products Reports Third Quarter 2023 Results
November
9, 2023
Page
5 of 8
Superior
Drilling Products, Inc.
Consolidated
Condensed Statements of Operations
(unaudited)
|
|
Three
Months Ended
September 30, |
|
|
Nine
Months Ended
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
|
$ |
4,469,415 |
|
|
$ |
4,622,614 |
|
|
$ |
14,269,529 |
|
|
$ |
12,388,746 |
|
International |
|
|
582,788 |
|
|
|
549,931 |
|
|
|
2,431,237 |
|
|
|
1,454,806 |
|
Total
Revenue |
|
$ |
5,052,203 |
|
|
$ |
5,172,545 |
|
|
$ |
16,700,766 |
|
|
$ |
13,843,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
cost and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of revenue |
|
$ |
2,003,791 |
|
|
$ |
2,230,705 |
|
|
$ |
6,256,918 |
|
|
$ |
6,114,705 |
|
Selling,
general, and administrative expenses |
|
|
2,584,740 |
|
|
|
1,723,221 |
|
|
|
7,381,020 |
|
|
|
5,264,270 |
|
Depreciation
and amortization expense |
|
|
337,653 |
|
|
|
362,773 |
|
|
|
1,013,116 |
|
|
|
1,176,151 |
|
Total
operating cost and expenses |
|
$ |
4,926,184 |
|
|
$ |
4,316,699 |
|
|
$ |
14,651,054 |
|
|
$ |
12,555,126 |
|
Operating
income |
|
$ |
126,019 |
|
|
$ |
855,846 |
|
|
$ |
2,049,712 |
|
|
$ |
1,288,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
9,272 |
|
|
|
10,544 |
|
|
|
39,926 |
|
|
|
13,720 |
|
Interest
expense |
|
|
(200,485 |
) |
|
|
(154,108 |
) |
|
|
(484,442 |
) |
|
|
(410,707 |
) |
Other
income |
|
|
198,894 |
|
|
|
- |
|
|
|
198,894 |
|
|
|
- |
|
Other
expense |
|
|
(43,000 |
) |
|
|
- |
|
|
|
(43,000 |
) |
|
|
- |
|
Recovery
of related party note receivable |
|
|
- |
|
|
|
- |
|
|
|
350,262 |
|
|
|
- |
|
Loss
on sale or disposition of assets |
|
|
- |
|
|
|
(29,381 |
) |
|
|
- |
|
|
|
(51,527 |
) |
Total
other (expense) income |
|
|
(35,319 |
) |
|
|
(172,945 |
) |
|
|
61,640 |
|
|
|
(448,514 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
90,700 |
|
|
|
682,901 |
|
|
|
2,111,352 |
|
|
|
839,912 |
|
Income
tax expense |
|
|
(76,861 |
) |
|
|
(44,169 |
) |
|
|
(261,127 |
) |
|
|
(107,852 |
) |
Net
income |
|
$ |
13,839 |
|
|
$ |
638,732 |
|
|
$ |
1,850,225 |
|
|
$ |
732,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per common share - basic |
|
$ |
- |
|
|
$ |
0.02 |
|
|
$ |
0.06 |
|
|
$ |
0.03 |
|
Weighted
average common shares outstanding - basic |
|
|
29,895,347 |
|
|
|
28,845,456 |
|
|
|
29,409,602 |
|
|
|
28,440,722 |
|
|
|
|
|
|
|
|
. |
|
|
|
|
|
|
|
|
|
Earnings
per common share - diluted |
|
$ |
- |
|
|
$ |
0.02 |
|
|
$ |
0.06 |
|
|
$ |
0.03 |
|
Weighted
average common shares outstanding - diluted |
|
|
29,965,145 |
|
|
|
28,855,456 |
|
|
|
29,479,400 |
|
|
|
28,450,722 |
|
Superior
Drilling Products Reports Third Quarter 2023 Results
November
9, 2023
Page
6 of 8
Superior
Drilling Products, Inc.
Consolidated
Condensed Balance Sheets
|
|
(unaudited) |
|
|
|
|
|
|
September
30, 2023 |
|
|
December
31, 2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
4,314,674 |
|
|
$ |
2,158,025 |
|
Accounts
receivable |
|
|
2,438,674 |
|
|
|
3,241,221 |
|
Prepaid
expenses |
|
|
533,329 |
|
|
|
367,823 |
|
Inventories |
|
|
3,219,033 |
|
|
|
2,081,260 |
|
Other
current assets |
|
|
307,161 |
|
|
|
140,238 |
|
Total
current assets |
|
|
10,812,871 |
|
|
|
7,988,567 |
|
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net |
|
|
11,099,485 |
|
|
|
8,576,851 |
|
Intangible
assets, net |
|
|
- |
|
|
|
69,444 |
|
Right
of use assets (net of amortization) |
|
|
505,739 |
|
|
|
638,102 |
|
Other
noncurrent assets |
|
|
199,816 |
|
|
|
111,519 |
|
Assets
held for sale |
|
|
- |
|
|
|
216,000 |
|
Total
assets |
|
$ |
22,617,911 |
|
|
$ |
17,600,483 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
2,910,443 |
|
|
$ |
1,043,581 |
|
Accrued
expenses |
|
|
945,248 |
|
|
|
891,793 |
|
Accrued
income tax |
|
|
553,177 |
|
|
|
351,618 |
|
Current
portion of operating lease liability |
|
|
53,066 |
|
|
|
44,273 |
|
Current
portion of financial obligation |
|
|
81,259 |
|
|
|
74,636 |
|
Current
portion of long-term debt, net of discounts |
|
|
753,334 |
|
|
|
1,125,864 |
|
Other
current liabilities |
|
|
- |
|
|
|
216,000 |
|
Total
current liabilities |
|
|
5,296,527 |
|
|
|
3,747,765 |
|
|
|
|
|
|
|
|
|
|
Operating
lease liability, less current portion |
|
|
334,410 |
|
|
|
523,375 |
|
Long-term
financial obligation, less current portion |
|
|
3,976,278 |
|
|
|
4,038,022 |
|
Long-term
debt, less current portion, net of discounts |
|
|
1,702,976 |
|
|
|
529,499 |
|
Deferred
income |
|
|
675,000 |
|
|
|
675,000 |
|
Total
liabilities |
|
|
11,985,191 |
|
|
|
9,513,661 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
|
|
|
Common
stock - $0.001 par value; 100,000,000 shares authorized; 29,245,080 shares issued and outstanding |
|
|
30,391 |
|
|
|
29,245 |
|
Additional
paid-in-capital |
|
|
44,638,455 |
|
|
|
43,943,928 |
|
Accumulated
deficit |
|
|
(34,036,126 |
) |
|
|
(35,886,351 |
) |
Total
shareholders’ equity |
|
|
10,632,720 |
|
|
|
8,086,822 |
|
Total
liabilities and shareholders’ equity |
|
$ |
22,617,911 |
|
|
$ |
17,600,483 |
|
Superior
Drilling Products Reports Third Quarter 2023 Results
November
9, 2023
Page
7 of 8
Superior
Drilling Products, Inc.
Consolidated
Statements of Cash Flows
(unaudited)
|
|
Nine
Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
Cash
Flows from Operating Activities |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
1,850,225 |
|
|
|
732,060 |
|
Adjustments
to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation
and amortization expense |
|
|
1,013,115 |
|
|
|
1,176,151 |
|
Share-based
compensation expense |
|
|
689,265 |
|
|
|
640,816 |
|
Loss
on sale or dispositon of assets |
|
|
- |
|
|
|
28,515 |
|
Loss
on dispositon of rental fleet |
|
|
- |
|
|
|
23,012 |
|
Right-of-use
amortization |
|
|
157,291 |
|
|
|
- |
|
Amortization
of deferred loan cost |
|
|
(84,277 |
) |
|
|
13,893 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
802,547 |
|
|
|
(1,211,713 |
) |
Inventories |
|
|
(1,137,773 |
) |
|
|
(446,866 |
) |
Prepaid
expenses and other current assets |
|
|
(420,726 |
) |
|
|
(777,457 |
) |
Accounts
payable, accrued expenses, and other liabilities |
|
|
1,022,423 |
|
|
|
1,100,571 |
|
Income
tax payable |
|
|
201,559 |
|
|
|
57,591 |
|
Net
cash provided by operating activities |
|
|
4,093,649 |
|
|
|
1,336,573 |
|
|
|
|
|
|
|
|
|
|
Cash
Flows From Investing Activities |
|
|
|
|
|
|
|
|
Purchases
of property, plant and equipment |
|
|
(3,123,770 |
) |
|
|
2,600,902 |
|
Proceeds
from recovery of related party note receivable |
|
|
350,262 |
|
|
|
- |
|
Net
cash used in investing activities |
|
|
(2,773,508 |
) |
|
|
2,600,902 |
|
|
|
|
|
|
|
|
|
|
Cash
Flows from Financing Activities |
|
|
|
|
|
|
|
|
Principal
payments on debt |
|
|
(425,505 |
) |
|
|
(508,146 |
) |
Proceeds
received from debt borrowings |
|
|
2,072,406 |
|
|
|
997,134 |
|
Payments
on revolving loan |
|
|
(1,645,427 |
) |
|
|
(633,440 |
) |
Proceeds
from exercised options |
|
|
6,408 |
|
|
|
- |
|
Proceeds
received from revolving loan |
|
|
828,626 |
|
|
|
633,435 |
|
Net
cash used in financing activities |
|
|
836,508 |
|
|
|
488,983 |
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash |
|
|
2,156,649 |
|
|
|
(775,346 |
) |
Cash
at beginning of period |
|
|
2,158,025 |
|
|
|
2,822,100 |
|
Cash
at end of period |
|
$ |
4,314,674 |
|
|
$ |
2,046,754 |
|
Superior
Drilling Products Reports Third Quarter 2023 Results
November
9, 2023
Page
8 of 8
Superior
Drilling Products, Inc.
Adjusted
EBITDA Reconciliation
(unaudited)
|
|
Three
Months Ended |
|
|
|
September
30, 2023 |
|
|
June
30, 2023 |
|
|
September
30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
GAAP
net income (loss) |
|
$ |
13,839 |
|
|
$ |
323,167 |
|
|
$ |
638,732 |
|
Add
back: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization |
|
|
337,653 |
|
|
|
349,446 |
|
|
|
362,773 |
|
Interest
expense, net |
|
|
191,213 |
|
|
|
116,111 |
|
|
|
143,564 |
|
Share-based
compensation |
|
|
232,446 |
|
|
|
229,671 |
|
|
|
218,217 |
|
Net
non-cash compensation |
|
|
88,200 |
|
|
|
88,200 |
|
|
|
88,200 |
|
Income
tax expense |
|
|
76,861 |
|
|
|
106,654 |
|
|
|
44,169 |
|
Disgorgement
of short-swing profits |
|
|
(198,894 |
) |
|
|
- |
|
|
|
- |
|
Debt
termination fee |
|
|
43,000 |
|
|
|
- |
|
|
|
- |
|
Loss
on disposition of assets |
|
|
- |
|
|
|
- |
|
|
|
29,381 |
|
Non-GAAP
adjusted EBITDA¹ |
|
$ |
784,318 |
|
|
$ |
1,213,249 |
|
|
$ |
1,525,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Revenue |
|
$ |
5,052,203 |
|
|
$ |
5,367,350 |
|
|
$ |
5,172,545 |
|
Non-GAAP
Adjusted EBITDA Margin |
|
|
15.5 |
% |
|
|
22.6 |
% |
|
|
29.5 |
% |
1
Adjusted EBITDA represents net income adjusted for income taxes, interest, depreciation and amortization and other items as noted
in the reconciliation table. The Company believes Adjusted EBITDA is an important supplemental measure of operating performance and uses
it to assess performance and inform operating decisions. However, Adjusted EBITDA is not a GAAP financial measure. The Company’s
calculation of Adjusted EBITDA should not be used as a substitute for GAAP measures of performance, including net cash provided by operations,
operating income, and net income. The Company’s method of calculating Adjusted EBITDA may vary substantially from the methods used
by other companies and investors are cautioned not to rely unduly on it.
###
Exhibit 99.2
v3.23.3
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Superior Drilling Products (AMEX:SDPI)
Historical Stock Chart
From Apr 2024 to May 2024
Superior Drilling Products (AMEX:SDPI)
Historical Stock Chart
From May 2023 to May 2024