This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk02: Greetings. Welcome to the Superior Drilling Products Inc. Fourth Quarter 2021 Financial Results. At this time, all participants are in a listen-only mode. A 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. And please note that this conference is being recorded. I will now turn the conference over to your host, Greg Mihalik. Thank you. You may begin.
spk06: Yeah, thanks, John, and welcome, everyone, to our fourth quarter 2021 earnings call. We certainly appreciate you joining us today. I have joining me Troy Meyer, our chairman and CEO, and Chris Cashin, our chief financial officer. Should have a copy of the financial results that were released before the market this morning. Should also have the slides that will accompany our conversation today. If you do not, both can be found on our website at sdpi.com. Turning to slide two, I'll point out that we'll make some forward-looking statements during the formal discussion, as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today. These risks and uncertainties are provided in the earnings relief, the slides, and other documents filed by the company with the Securities and Exchange Commission. These documents can also be found on our website or at sdc.gov. I want to also point out that during today's call, we'll 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 GAAP. We have provided reconciliations of non-GAAP with comparable GAAP measures in the tables accompanying earnings release, as well as in the slide deck. With that, I'll turn it to slide three, and I'll turn it over to Troy to begin.
spk03: Thanks, Craig. And thanks everyone for joining us for today's call.
spk05: You're on slide three. Let's get into it and start right off with talking about strong execution. As we look back at 2021, you know, one of the things that I'd like to emphasize is the fact that, you know, we spent the second half of last year really strengthening our foundation. When you look at what talent we've been able to bring into our company, I'd really like to tell our HR group what a wonderful job they've done. They've strengthened our team with bringing in some world-class fabricators. When you look at the programs that they've put into place, as they've talked and convinced people, and shown them the benefits of rural Utah and coming here and, you know, all that it has to offer, we've really hired well. We've been able to bring in some, you know, tremendous talent in the fabrication side of things in every department. And you look at our management teams have been really, really strengthened with some world-class managers. Really, really looking forward to as we go forward into 2022 and beyond. I think we've really strengthened a foundation here, and we've put together a fabulous team. You know, looking at the quality management team and what they've been able to do there, you know, turning our quality program into a real TQM, a totally quality management system. They've done a fabulous job there. Working with the local university to get testing and a certification structure here in place so that as we bring on new team members and qualify them in processes that we can do it locally here and not have to send sample coupons out to other parts of the country to be tested and the time lag that that takes. They've done a fantastic job. When we look at our business as far as the tools that we build and design, you look at our flagship drilling ring product, our channel-to-market partner there, DTI, has done a really good job penetrating the market. They continue to bring new customers on Some of the things that we're seeing there is we're starting to see tools that go to California, go to Alaska. So they're doing a good job, and they're selling deeper into their existing customer base. So they're doing a good job, and we appreciate that relationship. When you look at our PDC activity, We continue to find ways to strengthen that for our legacy customer. We take on new product lines. We now have turnkey processes going on with that PDC, and it's not just refurbishment when we talk about PDC. We also have an opportunity, and we'll talk about this a little bit more as we get into the slides. Anything that has a PDC cutter and a diamond cutter, we're very good at building and repairing. And we've been able to identify product lines within our customers' products that we can then start looking at turnkey operations. And we'll talk about that here when we get down to looking forward.
spk03: As you notice, the strong cash position,
spk05: You know, we continue to strengthen our balance sheet. But as we go forward, I want to spend a little more time today as we talk about future opportunities. But I'm going to turn the time over to Chris so he can go over the numbers with you, and then we'll catch back up on opportunities. Chris?
spk01: Okay. Thank you, Troy. And welcome, everyone. Now, please turn to slide four. where we provide an overview of our very impressive revenue growth for the year. Q4 2021 revenue increased to $4 million, up 11% sequentially and 156% year-over-year. Our North American market continues to see growth in drilling tool demand, higher royalty and tool fee repairs, and robust bit refurbishment demand. For the full year of 2021, revenue increased 27% to $13.3 million due to increasing orders for our drilling ring tool and a significant recovery in oil and gas production in North America. As oil and gas production ramps up, we're benefiting from an increasing rig count. We ended the quarter with an average U.S. rig count of 559 rigs, up 62 rigs from the third quarter of 2021. and up 248 rigs from the average in the fourth quarter of last year. We continue to be confident that the improvement, particularly in North America, as we've seen throughout 2021, will continue at a steady pace well into 2022, even as we deal with and go through various global headwinds impacting our industry. On the international revenue side, it's been consistent, though remains dampened somewhat by the pandemic and Middle East COVID-driven containment restrictions. Despite the pressure, fourth quarter 2021 revenues, which now represent about 10% of our total revenue, still increased roughly 30% from last year's fourth quarter. The loss in international revenue for the full year was offset by a 35% increase in North American revenue. Now let's move on to slide five. and review our tool and contract services revenue. Contract services revenue for the fourth quarter was $1 million, up 54% from the same period in 2020, and for the year, up roughly 20% to $4.1 million. The improvement in contract services reflects expanded volume and product refurbishment and manufacturing for our long-term legacy customer. As we mentioned, we are seeing a recovery in tool sales and contract services as tool fleet replacement is ramping up. Full-year tool revenue was measurably higher at $9.2 million, up 31%, or 2.2 from the prior year period, propelled by the drilling ring. We're seeing both new tool orders as well as increasing repair and royalty revenue as we enter into 2022. Now on slide six, you can see that we are continuing to be very focused on cost discipline, even as we strive in building our team that Troy referred to. We're investing in the company growth with this team, and we see increasing demand for our products and services. Operating expenses in 2021 were down roughly 400,000, or roughly 3%. primarily as a result of lower amortization expense and the reorganization of the company's international business to improve profitability. Our cost-controlled efforts and the higher demand in the market has allowed us to generate operating income of $90,000 in the quarter. And I would just like to point out that this is the third straight quarterly positive operating income for us, It's further validating the progress we're making. Like many companies, inflationary pressures persist and are keeping expenses elevated, but our teams are working hard to improve processes and controls, as Troy spoke about. These are to address these pressures and support in hiring and training efforts. Staffing will continue to be a focus area as we move forward. Now on slide seven, you can see that our bottom line Net income and our adjusted EBITDA results have improved considerably in Q4 2021 and for the full year. Quarterly net income was $645,000, or two cents per share, compared to a loss of $655,000, or three cents per share, in the prior year period. For the year, we reported a loss of $500,000 roughly, close to break even, and up significantly from a loss of 3.4 million in calendar year 2020. That's an approximately $3 million bottom line turnaround with a revenue increase of $3 million. Adjusted Epidop Q4 2021, $827,000, roughly 21% of revenue, and that's 2.6 million for the full year. which is a $2.7 million turnaround in EBITDA. This performance continues to demonstrate the strong operating leverage of our business. Now let's move on to slide eight, where we highlight our balance sheet. You'll see that the balance sheet continues to strengthen as we continue to lower our debt levels. Cash at the end of the year was $2.8 million, up roughly $800,000 from the end of 2020. and up $400,000 sequentially. Cash provided by operations for the year, roughly half a million dollars. Long-term debt, including the current portion at year end, was two and a half. And we've got one more $750,000 principal payment due on our hard rock note, and that's due on October 5th, 2022. So our net debt to cash, That cash-to-debt ratio is actually negative now. We've got more cash than debt on our balance sheet. Finally, during the fourth quarter of 2021, the company completed an equity offering of 1.7 million shares priced at $1.15, and that resulted in net proceeds of approximately $1.7 million. We would be strategically directing a portion of our capital into raw material inventory to address supply chain inconsistencies that we're seeing, and constraints, moving out the delivery times so that we can ensure that we can successfully meet the increasing demands of our customers. Lastly, I would like to report that our book equity balance at 1231.21 is $6.1 million, which puts us back into the New York Stock Exchange continuing listing requirement. So with that, I'm going to turn the presentation back over to Troy to wrap up with the review of our outlook and opportunities.
spk03: Troy? Thanks, Chris.
spk05: So as we look forward into 2022, and a lot of the things that we were working on throughout 2021 was agreements and structure to get signed early on this year and get into place. And I think as we go throughout the year that you'll all be pleased with what we come out with. But you look at our North America opportunity, You know, we continue to work closely with our channel partner and also our legacy partners as we look for more opportunities within those companies. You know, we have an opportunity as we look at our manufacturing and we say, you know, what is it that we do well and how do we get more of that? And it's not looking at, you know, just being a third-party machine shop building some some high-end products we're we're looking at turnkey we're looking at saying not only let us you know manufacture that body but let us complete that body and as we we've got a process in place that we call product line adoption that we're currently setting up our first cell you know we're you know we're spending a million dollars on a machining center that's been identified for this particular product line and we'll do that complete product line within the cell around this machining center. And we think that's going to, you know, once we prove that up, we're going to be able to do that over and over again. When we look at our international opportunities, we're We're doing some things there when you look at Oman, Saudi Arabia, Qatar, UAE. We've really strengthened our opportunities there. We're working with a very large CERCO in some of these countries. We're working with the E&Ps in these countries. It's been a very slow process. And like Chris mentioned earlier, the whole COVID thing hasn't helped. You look at Kuwait, and it's still an issue to get expats in there and to get in there to sell. But that's going to open up. And when it does, that's where we broke out into the MENA region, the Mideast area. and we expect the rig count there to come back up, but we're really looking forward. The team that we've got in place is doing a wonderful job, and we're working with some very high-end E&P opportunities there, so we're excited about what could happen there this year. You know, you look at We've talked about M&A opportunities. We're still going down that road, and we're still talking to companies. You know, that's very much alive. So we like what we're doing there. Obviously, we don't have a big staff to pay a lot of attention to that, but we're working it, and we're moving that ball down the court. So one of the things that we're excited about, we've always, for the last couple of years, we've been talking about diversification. beat up on the next downturn in this cycle that has been very vicious to us, everybody in the oil and gas industry, and we're diversifying. Currently, we're working with electric vehicle technology, a company that's doing some very exciting stuff. We're helping them with design support and manufacturing support on a very small scale right now, but they want us to engage in a in a big way. And so we're excited about the opportunity that has. We feel that we can support their efforts as they grow this business in a big way. They've got some real unique technology that's fun to see. So as we look into the 2022, I think it's going to be a wonderful year for us. We've got a lot going on. We've got a lot of things happening. right close to the finish line to be signed. We've been working on agreements. And I think you'll all be happy with how this year rolls along and how it turns out.
spk03: So with that being said, I'm going to go ahead and turn it over to Q&A. Thank you.
spk02: At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from the line of John Sturgis with Oppenheimer. You may proceed with your question.
spk07: Thank you. nice end of the year gentlemen my congratulations the two questions one is the you have a flexibility and you've done this in the past where you've made an early payment on hard rock you have one more left but you have a lot of optionality and I'm just curious whether you're likely to make the early payment and just get that off the books
spk03: You know, John, that is an option, and we look at it.
spk05: We talk about it, but we'll evaluate that here. You know, as we go forward, as we look at this product line adoption and, you know, spending a million dollars to bring this machine in, you know, it's not going to be a million dollars cash, but there is going to be a good down payment that goes with it and the structure that goes around that machine. So, you know, we're watching it and just, you know, I wouldn't, It's very possible that we could pay that off early. It would be beneficial when you look at the interest that we pay on it.
spk07: Okay. But you have the option not to as well, obviously, depending on the conditions business demand. The other question I have is I see the drilling that's gone on has really not boosted production anywhere. Everyone is being cautious. domestically and internationally. In fact, it looks last couple of weeks possible, a possible stalling of the rate down. It's too early to tell. Could you comment on just the general, the color of the geopolitical stuff that's going on and if you see any of that easing up near term?
spk05: You know, when we meet with our team over in the MENA region and we meet with them you know, three, four times a week. And like I mentioned earlier, what we see on the international market, if you look at Kuwait, there's still some issues there getting in. I mean, the travel in and out of those areas are difficult. I think what they're seeing over there is like we're seeing here. You know, when we had this whole shutdown from COVID, your expats that were very comfortable going in and out of these countries that in some instances got stuck in some of these places for, you know, three, four, five, six months. You know, there's one, a shortage of these workers. A lot of people have retired from oil and gas that were doing these expat programs. But We need them domestically here as well. So I think as we're starting to come back here, growing stronger here in North America, and it's still not an easy travel scene out there going in and out of these countries, I think that they're going to struggle to bring up production. I don't think it's going – on the international markets, I don't think you're going to see a quick – a large increase in production. My personal view of that is they're not finding the people to do that. They're not finding the hands to be able to drill these wells. So when you see the rig count there, it's tough for them to bring on more rigs. They really rely heavy on the expat market. And it's just not a friendly environment for travel right now and going into these countries. So If you look at where we're at, not looking at international rig count globally, but just looking at it in the region that we're in, I don't think you're going to see a lot of rigs standing up there. But the opportunity there for us is tremendous because the rigs that are up, for the most part, we haven't done much, if any, on those rigs. So as far as the scene in the Mideast area, We feel good about what we've got going on in places like the UAE, places like Saudi Arabia, places like Oman. We've got a lot going on as far as opportunities coming forward. We've had to build an inventory to get over there, and we've done that, and we've got tools in place, and we've got a team in place. We still struggle with identifying a – an area where we actually want to set up a refurb facility there just because of all the restrictions that are placed on those countries over there in the way of doing business. It's incredible. But we're working on it. We feel we're going to get one up and running here. I would say late Q2, early Q3, we should have something up and running. When you look at the North American markets here, our domestic markets, I think what we're going to see is a lot of small E&P companies popping up. We've got the bigger companies that have said they're going to have just – it doesn't matter if it goes to $200 a barrel. They're going to have real restrained growth. They're going to not just start putting rigs up. But I think what you're going to see is a lot of small – E&P companies that come up and pick up a rig, two rigs, three rigs, and as those pop up and develop producing fields, then I think these larger E&Ps will buy up those fields, and that still allows them to keep their agreement with the market saying we're not going to go after, you know, standing rigs up, but they'll still be able to achieve bringing on more production by, you know, gathering up the smaller, newer fields that, that, uh, small E and P companies develop. That's, that's how I look at it anyway.
spk07: Do you think they're going to be able to bring back the labor pool?
spk05: Um, you know what, that's, that's been really, really a strange deal. You know, we, we've been hiring a lot and we've been looking, uh, You know, you need pumpers, drillers, you know, location builders, all of this stuff that you need just to put up, you know, one location that's going to have 28 wells on it. You know, John, to answer that question, you're seeing rigs come up and it's slow and steady, which I actually like. But I do think they'll bring back, you know, they'll entice people to come back into this market. But it's not going to be rapid. It's not going to be rapid growth. It's going to be slow, steady. I don't think the labor pool is there just to go to 1,000 rigs by year end. But I definitely think that, you know, we'll get to 700, 700.
spk07: 725 somewhere in there okay the other item uh you had referenced uh oh sometime in 2021 uh that you were getting greater penetration of market share could you make a a rough guess as to where you are currently as far as the the drilling technology and what we have here in in the domestic market
spk05: You know, if you look at the areas where most of the drilling is going on, down in, let's just say, West Texas, for instance, you know, I would dare say the market share is, you know, 30-plus percent. And then if you look on just the North American market in general, it's probably high 20s. Okay.
spk07: Do you have a sense of the trend line on that? It sounds like it's growing.
spk03: It is growing. It is. More and more people are finding out, you know, the benefits of a conditioned wellbore. Thank you. Our next question comes from the line of Dick Ryan with Colliers.
spk02: You may proceed with your question.
spk08: Thank you. Troy, to stay on that theme, you know, you talked about DTI, you know, bringing on new customers, increasing penetration. Is that in West Texas? Are you getting into other fields? Or can you give us a little more color as to, you know, what DTI is hearing from their customers?
spk05: Sure. It's everywhere, you know. It's looking at what's happening with setting up, like I said, the smaller businesses. ENPs in the Oklahoma area. It's getting some new customers in West Texas. It's now getting customers in California and Alaska. So yeah, they're doing a good job.
spk08: If the market growth expands in the smaller ENPs, is that a better environment for you or do you still need the larger ones to kick in to you know, really kind of benefits your business model?
spk05: No, it's good for us. It creates, you know, in this current environment we're in, you know, with the whole, you know, when you look at the supply chain and you look at steel and cutters and solders and all the materials that we work with, and, you know, you can look at existing customers, existing opportunities out there, And you can monitor that and say, this is how much of these items that we need. And as you all know, we have to hold larger inventories than we'd like to just because of the inconsistency in the supply chain today. And when you have a new customer come on that may require different connections, different threads, for their drill strings, then it just throws some complications into, okay, that size of steel, that different ID diameter, that different thread that goes on there. That's the stuff that you don't see and you can't plan for because you don't know where it is or what it is. And when it pops up, it's like everybody else, they need it right now. And so we have to kind of look look forward and say how much more of these different sizes and different quantities of of steel blanks and cutters and and solders and fluxes you know that that you that you really have a strong feeling is going to pop up but you just don't know how much and when sure on the contract services side
spk08: Is that still largely with the legacy customer? I thought you had some optionality to move, you know, to other larger customers on that front. Is that an option? Or are you expanding opportunities with your legacy customer that that's the focus still?
spk05: No, it's an option, and it's a very good option, and we've been working it. You know, very large customers move very, very slow, but they do things very well. And we've been working, you know, on getting some, you know, qualified. And we've, you know, done, you know, step one, step two. I think we're getting close to, you know, the final stages of an agreement to bring on another, you know, high-end customer. But at this point in time, we haven't done it. But we've been – it's an opportunity, and I think it's something that we can get done.
spk04: Okay. Great. Thank you. You bet.
spk02: As a reminder, if you'd like to ask a question, please press star one. Our next question comes from the line of John Bear with Ascend Wealth Advisors. You may proceed with your question. Thank you.
spk07: Good afternoon. Hello. Troy and Chris. Kind of going to ask this question regarding the market penetration in a little different way. The statistics that I've seen indicates that A lot of the rig increase, rig count increase is coming from independent or privately owned companies, whereas the majors and the, you know, intermediate sized public companies have remained pretty steady in their overall rig count. So the question then is, have you seen a new business coming from that end of the market And given that the duck count has dropped rather significantly, at some point the independent and majors are going to have to start picking up their activity, not only to replace their production. So I'm wondering if that happens in conjunction with maybe these smaller companies adopting your drone ream. if you could see a meaningful pickup in order activity.
spk05: You know, one of the things, John, when we have a channel to market like we do here in North America, when we put that program in place, one of the things that we lost was that direct line of communication to that end user. If we do those programs going forward on the international basis, we'll make sure that we keep aligned to that end user. But when you look here in North America, who's running the tools and who the new customers are, I really can't answer that when I look at that and say, Well, you know, there's three new small EMPs that each got two rigs down in, you know, South Texas. You know, we're in communications with DTI, and we see that, you know, when we invoice or when we get new connections or new tools requests. So I don't know how many small EMP operators have come on, or to be honest with you, I don't even know who they are. I just know that in communications with the DTI team, they'll tell me they've got a new company here or a new company there, but we don't have that direct access to that end user.
spk07: That's kind of unfortunate, but in my mind, I think that you know, at some point, I think, yeah, you've got the problem with the labor force to be able to bring on any significant new amount of rigs, but that being said, hopefully more people are adopting your tools. Are you seeing any meaningful improvement in, say, Canada?
spk05: You know, I don't, I haven't seen much in the way of Canada. I think they'll actually be laying down right now because of the You know, they go through that freeze and thaw period where they can't have their drilling activity going on. And right now we'll be going into the thaw period. So you'll probably see rigs laying down and then, you know, picking up again in a couple months and going heavy once the thaw is gone.
spk07: Okay. One last thing. In the press release, you said there was a related party note receivable that was cleared up, $707,000. Can you elaborate on that at all?
spk01: Yeah. What that is is that TRONCO. You may recall that, John, when we fully reserved that receivable back in 2019. Okay. So we set up a 100% valuation allowance against that. And so as we settle that with Troy and Annette, on an annual basis, the interest piece of that, then we can recapture a portion of that note that was fully reserved. So it's like collecting a fully reserved receivable that you had written down. We can take that back as other income when we settle it. Okay. That's what that is.
spk07: Okay, great. And then since you're now compliant with NYSE listing, what's kind of the timeline before you have to submit something to them and then they review it and then say that's great and then what's kind of the timeline on that?
spk01: Yeah, we typically have to submit a quarterly report to them and we do that about three weeks or so after this earnings call. So I'm We'll be setting that date with them probably in early April, maybe the first week of April. We'll submit the report for Q4. And then they typically take, oh, three weeks or so and come back to us with a thumbs up that they accept our report. That's been the pattern that we've seen over the last three quarters.
spk02: Thank you. Our next question comes from the line of Matt Reiner with Adirondack Funds. You may proceed with your question.
spk09: Hey, Troy and Chris.
spk02: Hey, Matt.
spk09: My first question is, I know when you first started out, your tool life was, in the drilling room, was, like, longer than you had anticipated. You know, good quality tool that was lasting, I guess, longer than you expected. And now that you've had more experience with it, do you have, like, a better feel for what the the tool life is versus your... Yeah, we do.
spk05: We've got a better feel for that. And it's... And is it... Go ahead.
spk09: Yeah, that's... Well, what can you tell me about it? Is it... You kind of solidified it?
spk05: And is it, you know... Yeah, when you look... What it was, what... When you look at the model that we originally modeled out, it was 12 runs, and it's up closer to 18 runs. You know, that's going from the only thing we had to model when we started was just the basin that we were in pretty much when you looked at the, you know, in the Bakken. And, you know, and it was really the six-inch class of tools. So we didn't have a lot, you know, to model from. But now we do. And so as we look at, you know, opportunities in the international markets, although we what we see in the drilling environments in those markets, we see like in Oman, it's really, really, you know, the tools, the wear, the usage on the tool is really similar to what we see, you know, here in most areas in North America. But then you see Kuwait. I mean, Kuwait, they just, you know, beat tools up. And so... We think we've got a lot, we're a lot smarter with modeling this out. I know we are. But when you look at Kuwait versus Oman, two totally different environments. So if you're going to model runs and try to predict that, it's going to be a lot less than when we model it out in Oman. Got it.
spk04: Okay. And then I just have a
spk09: kind of a housekeeping one for Chris and on the, the DNA. So I've seen, you know, it's been declining the last few years. I went from like three, four to two, eight and like 2.1 this year. But it sounds like maybe you're making some investments. So I didn't know if maybe depreciation starts. I mean, if I have it right, it was roughly a million and a half this year. And then amortization was just under 600 is. And you kind of give me a ballpark. Is that a, And I think next year, your amortization, the tangible is supposed to drop to like 167. So I was just curious if depreciation should model still at that 1.5 million range, or are you going to have some investments where that creeps up a bit?
spk01: Yeah, that's going to creep up a bit. We are expanding. We've got some near-term opportunities that Troy talked about in the Middle East. We're getting some good revenue coming out of Oman now. So yeah, that depreciation is going to inch up a bit. What drove the DNA down 2021 versus 20 was we fully amortized a bucket of intellectual property. And so that led to, and that bucket was fully amortized in May of last year. So we've got one more bucket of intangibles that we're amortizing. And so In 2023, that third and last bucket of intangibles would be fully amortized. And so, yeah, we'll see it drop again. But, yeah, so the amortization expense has been going down. And, yeah, depreciation is going up a bit. But you're in the ballpark with the $1.5 million kind of a number that you've got. But do expect it to go up slightly over 2022.
spk04: Okay. Thank you. That's all ahead. Good job.
spk03: Thanks.
spk02: Thank you. At this time, we have reached the end of the question and answer session, and I will now turn the call back over to management for any closing remarks.
spk05: Thanks again, everybody, for joining us, and we're very excited about the opportunities we have in 22 and 23, and we're going to continue to move forward and and do the best we can do on this. Like I said, there's a lot of opportunities, and I think the thing that excites me the most is when I look at our management team that we now have in place, I look at our employee base that we continue to grow on, and I look at the need that our customers have for our products, and not just the drill and ream, but for the things that we do well We're evaluating those, and we're going to capture some great opportunities. But thanks for joining us, and we look forward to seeing you on our next call.
spk02: This concludes today's conference call, and you may disconnect your lines at this time. Thank you for your participation, and have a great day.
Disclaimer