Fourth Quarter and Full Year 2023 Performance Revealed by Superior Drilling Products

Superior Drilling Products, Inc. (NYSE American: SDPI), a leading designer and manufacturer of drilling tool technologies, has announced its financial results for the fourth quarter and full year ending December 31, 2023. Additionally, in a separate press release dated March 7, 2024, Drilling Tools International Corp. (Nasdaq: DTI) and SDPI jointly declared the agreement for DTI to acquire SDPI for approximately $32.2 million. The transaction is expected to close in the third quarter of 2024.

Troy Meier, Chairman and CEO, expressed excitement about the merger with DTI, citing the long-standing collaboration between the two companies and the potential for enhanced value creation for shareholders and stakeholders. Meier believes that combining SDPI’s patented technology and manufacturing capabilities with DTI’s robust sales and marketing efforts will accelerate growth and expand market reach.

Fourth Quarter 2023 Revenue Overview:

  • North America: Revenue decreased by 18.6% sequentially and 19.6% year-over-year, primarily due to lower tool sales, particularly related to the Drill-N-Ream® (“DNR”) tool, affected by timing of orders.
  • International: Revenue grew by 8.7% sequentially but declined by 12.7% year-over-year, attributed to increased operations in the Middle East and post-pandemic market recovery.
  • Total Revenue: Declined by 15.4% sequentially and 18.7% year-over-year.

Fourth Quarter 2023 Operating Results:

  • Cost of revenue decreased by 3.3% sequentially and 10.4% year-over-year.
  • Selling, general & administrative expenses decreased by 12.5% sequentially but increased by 9.7% year-over-year, primarily due to international expansion.
  • Operating loss was $(273,000), compared to an income of $701,000 in the prior-year period.
  • Net income for the quarter was $5.59 million, reflecting the release of a deferred tax asset valuation allowance.

Full Year 2023 Highlights:

  • Total revenue increased by 9.8% year-over-year, with North America revenue up by 6% and international revenue up by 41%.
  • SG&A expenses increased by 32%, primarily due to international expansion and legal expenses.
  • Net income for 2023 was $7.44 million, including the release of a deferred tax asset valuation allowance.

Balance Sheet and Liquidity:

  • Cash generated from operations was $3.2 million in 2023, with cash at year-end totaling $2.7 million.
  • Capital expenditures of $3.7 million were primarily for Middle East operations.
  • Total debt at year-end was $2.2 million.

About Superior Drilling Products, Inc.: Superior Drilling Products, Inc. is a leading drilling tool technology company providing cost-saving solutions for the oil and gas industry. The company designs, manufactures, repairs, and sells drilling tools, including the patented Drill-N-Ream® wellbore conditioning tool and the patented Strider™ oscillation system technology.

For additional information about the Company, visit

For More Information: Investors and shareholders can access additional information regarding the proposed acquisition of SDPI by DTI through SEC filings and company websites.

Safe Harbor Regarding Forward-Looking Statements: The news release contains forward-looking statements subject to various risks and uncertainties, including market conditions, the success of business strategies, and the proposed transaction with DTI. Investors are urged to read relevant documents filed with the SEC and exercise caution when making investment decisions.

[Financial Tables Follow]

[Consolidated Condensed Statements of Operations, Balance Sheets, and Cash Flows]

[Adjusted EBITDA Reconciliation]

(Note: The detailed financial tables are available in the original press release.)

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