Drilling Tools International Corporation has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in tool rental revenue to $28.1 million from $29.4 million in the same quarter the previous year. The decrease is attributed to decreased market activity in the Directional Tool Rentals division.
Product sale revenue increased to $12.0 million from $8.8 million, driven by additional product sales related to recent acquisitions.
Cost of tool rental revenue decreased to $4.1 million from $7.3 million, primarily due to decreased labor and repair costs.
Cost of product sale revenue increased to $5.7 million from $1.8 million, driven by additional costs from acquisitions.
Selling, general, and administrative expenses increased to $19.9 million from $16.6 million, primarily due to personnel-related fees and costs associated with the public company transition.
Depreciation and amortization expenses increased to $6.2 million from $5.3 million, due to a higher property, plant, and equipment balance.
Interest expense increased significantly to $1.0 million from $0.1 million, due to interest on a term loan and credit facility.
Net income for the quarter was $867,000, down from $4.3 million in the previous year.
Cash provided by operating activities was $9.7 million, while cash used in investing and financing activities was $46.1 million and $43.4 million, respectively.
Drilling Tools International Corporation had cash and cash equivalents of $12.0 million as of September 30, 2024.
The filing also details recent acquisitions, including the acquisition of Casing Technologies Group Limited and Superior Drilling Products, Inc., which are expected to enhance the company's services and competitive position.
Drilling Tools International Corporation continues to focus on expanding its market presence and enhancing its technological offerings in the oil and gas industry.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Drilling Tools International Corporation quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.