Superior Drilling Products, Inc.

Greetings. Welcome to the Superior Drilling Products, Inc. Third Quarter Fiscal Year 2022 Conference Call. 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. Please note this conference is being recorded. I'll now turn the conference over to your host, Craig Mihalik. You may begin.

Yeah, thank you and welcome everyone, excuse me, to our third quarter. 2022 Earnings Conference Call. Certainly appreciate you joining us today. I have joining me Troy Meyer, our Chairman and Chief Executive Officer, 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 a copy of the slides that accompany our conversation today. If not, both can be found at our website at sdpi.com. Turning to slide two, I'll point out that we may 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 release, the slides, and other documents filed by the company with the Securities and Exchange Commission. These documents can also be found at our website or at FTC.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, should not consider the presentation of this additional information in isolation, or is a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP with comparable GAAP measures in the tables accompanying the earnings release, as well as the slide deck. So with that, please turn to slide three, and I'll turn it over to Troy to begin. Troy?

Thanks, Craig. Thanks, everyone, for joining us. for our third quarter 2022 call. We had another strong growth quarter with revenue of $5.2 million. Year over year, we've seen a 45% revenue growth, sequentially up 14%, with an adjusted EBITDA margin just under 30%. We have had and continue to have some very strong customer demand One of the things that I'd like to talk about a little bit is the hiring and training we've done throughout the first two quarters of this year coming into the third quarter and the benefit that we're seeing from that now. We expect to continue to see this strong revenue growth throughout the remainder of the year and throughout 2023. We've seen a higher number of rigs. using the flagship drilling tool, we've seen a 6% increase in new wells drilled, improved market conditions and increased drilling activity driving demand for our services. I want to say that the overall rig count was up right about 7%, which is a big plus for us. When you look at The balance sheet, one of the things we want to point out is the hard rock note is paid off. And that was, we did that early on in October. But that's nice to have behind us. And it's something the team has done a good job in getting that goal accomplished and moving forward. When you look at the capacity that we have in our facility, One of the things that we've done throughout the third quarter that I want everybody to be aware of is we have continued to build out as we look at our raising capacity, our machining capacity. This is all stuff throughout the quarter that we've been working on very diligently. The one thing that we have is the equipment now that we have fabricated. We've doubled the ability to... We've doubled our capacity in equipment, not in the human capital, but in the equipment. We've got that manufactured and put into place to support our growth. And as we hire and continue to hire and train individuals to put this equipment to work that will allow us to bring more units through our facilities, I think you're going to see a big benefit by that as we go forward. One of the things I'd like to mention is we're extremely proud of our team's performance thus far in 2022 and their ability to capture the growth without sacrificing service quality or safety. The team has done a phenomenal job. We're seeing our Department leads take ownership, their understanding, their role in the business, and they're doing a phenomenal job. And we're very proud of that. And with that, I'm going to pass it on to Chris to talk about the numbers, and then I'll come back and finish up. Chris?