Wed, May 15, 10:14 AM (72 days ago)
Superior Drilling Products, Inc. (SDPI) reported a 21% decline in revenue for Q1 2024 compared to Q1 2023, driven by a 30% decrease in tool revenue, reflecting a drop in U.S. rig count. Operating income plummeted to $159,447 from $1,377,762, primarily due to acquisition-related expenses of $1,748,277. The company posted a net loss of $1,822,388 versus a net income of $1,513,219 in Q1 2023. Cost of revenue increased slightly by 3%, while selling, general, and administrative expenses decreased by 9%, attributed to lower legal fees. Depreciation and amortization expenses rose by 8%. Interest expense also increased by 26% due to higher interest rates and customer quick-pay options. Cash flow from operations was negative at $303,950, impacted by acquisition-related costs. Investing activities saw a net cash outflow of $122,000, primarily for equipment purchases. Financing activities resulted in a net outflow of $169,000 due to debt repayments. SDPI's working capital stood at approximately $3.5 million as of March 31, 2024. The company remains compliant with all loan covenants. The pending merger with Drilling Tools International Corporation is expected to have significant future operational impacts.