Superior Drilling Products (SDPI) investor relations material

Executive summary

• Q2 2024 revenue was $37.5 million, down 1% or flat year-over-year, with net income of $0.4 million, compared to $0.9 million in Q2 2023.

• Six-month revenue was $74.5 million, with net income of $3.5 million, down from $6.6 million in the prior year.

• Completed acquisition of Casing Technologies Group (CTG) in March 2024, expanding global presence and product portfolio.

• Closed acquisition of Superior Drilling Products (SDP) for $32.2 million, integrating patented Drill-N-Ream tool and expanding Middle East presence.

• Cash and cash equivalents as of June 30, 2024, were $6.8 million, with an accumulated deficit of $3.1 million.

Financial highlights

• Q2 2024 tool rental revenue was $28.3 million and product sales were $9.2 million, both relatively flat year-over-year.

• Adjusted EBITDA for Q2 2024 was $9.0 million, down from $13.3 million in Q2 2023.

• Operating income for Q2 2024 was $2.2 million, compared to $6.6 million in Q2 2023.

• Adjusted free cash flow improved by $3.2 million year-over-year to $(1.1) million in Q2 2024.

• Cost of tool rental revenue decreased 3% to $7.5 million, while cost of product sale revenue increased 120% to $2.5 million in Q2 2024.

Outlook and guidance

• 2024 revenue guidance updated to $155–$170 million; Adjusted EBITDA expected between $41–$47 million (26–28% margin).

• Adjusted net income forecasted at $9.9–$13.5 million for 2024.

• Adjusted free cash flow guidance maintained at $20–$25 million for the full year.

• Management expects continued cost inflation and rising personnel expenses to impact profitability.

• The company anticipates leveraging its expanded product portfolio and global reach to drive future growth.