Superior Drilling Products, Inc.

Greetings and welcome to the Superior Building Products third quarter 2020 financial results. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad as a reminder that the conference is being recorded. It is now my pleasure to introduce your host, Deborah Pawlowski, Investor Relations. Please go ahead.

Thanks, Stacey, and hello, everyone. We certainly appreciate your time today and your interest in Superior Drilling Products. On the call with me are Troy Meyer, our Chairman and CEO, and Chris Cashin, our Chief Financial Officer. They're going to review our prepared remarks discussing the quarter, the third quarter, and a little bit of our outlook, and then open the call for questions. You should have a copy of the financial results that we released before the market this morning. And you should also have the slides that will accompany our conversation today. You can find both of those documents on our website at www.sdpi.com. As you are aware, we may make some forward-looking statements during the formal discussion as well as during the Q&A session on today's call. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause the actual results to differ materially from what is stated here today. These risks and uncertainties are provided in the earnings release, the slides, and other documents filed by the company with Securities and Exchange Commission. All of these documents can be found on our website or at sec.gov. I want to also point out that during today's call, we will discuss some non-GAAP financial measures, which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAPs. We have provided reconciliations of non-GAAP with comparable GAAP measures in the tables accompanying the earnings release as well as in the slide deck. So with that, I'm going to turn it over to Troy to begin.

Troy? Thanks, Deb. Thanks, everybody, for joining us today. Let's go ahead and turn to slide four in your slide deck. There's three things that I'd like everybody to take away from today's call, and number one, I'd like to talk about our international growth and how that's going and how that's expanding and how our tools are performing there. It's very, very encouraging. And two is the diversification and what we're doing here to essentially create a stronger foundation in the core business. And then number three, the managing of our costs. I think that's very important in these times, and our team is doing a very good job at that. So let's start off with what we're doing and the traction we're getting internationally. The drilling, as you all know, we introduced it over in the Mideast a couple years ago, and we're really seeing it now where the operators see the benefit and the value that the tool gives. And as we look at what's going on internationally and how we're being pulled into new opportunities, into new countries, we're being pulled in there by large SERVCOs that run the tool, you know, in countries like Kuwait and the UAE, and they recognize the value and they recognize how much that tool is helping their performance. and requesting these tools in places like Iraq and Ukraine, Qatar, Oman. So we're very excited about that. We have challenges with logistics that we're being educated on and working through. As you all know, when these tools run, they've got to be dull graded, they've got to be serviced, and we've got a good team working on it, and they're doing a great job. So you look at the five different countries right now of expansion after North America, and it's going very, very well. We're also seeing opportunities with a slim hole product line that is allowing operators to exit existing wellbores, cutting a window and exiting those wellbores, and going through that window with a drill and ring tool. as they go with smaller size bottom hole assemblies, this drilling is now allowing large operators that are well known to get in and out of these well bores as they deepen existing wells or sidetrack out of existing wells. It's a good opportunity for us going forward. When we look at the diversification that we'll be talking about, As you all know, we've been – our team has been working on getting ISO 9001 certified as well as AS 9100 certificates. And we're going through audits as we speak. We actually have them in our facility today. And we're looking to wrap all of that up by year end. And I really think that we can probably have it done probably before December. And what that allows us to do is go after some work that really fits into the wheelhouse of our machines. As you all know, we have some large CNC machining centers here, and right now they're very busy making small parts, and we'd like to get them very busy making large parts. And this certification is going to help us do that. So we're excited about being able to look at the defense industry and some of these other industries that require large parts to be machined. And this ISO certification and the AS certification will really help us get that done. When you look at how we're managing our cost, I want you to be aware that we've reduced our monthly cash burn to 700,000. It's down dramatically from from where we started the year, we've gone into a phase three of our cost containment. And, you know, it's, it's going to be year end going into 2021. We believe that the cash burn will be gone. So we're looking for a cash break even going into 2021, and I feel very good that we're going to achieve that. But with that being said, I'm going to go ahead and turn it over to Chris. Chris?