Superior Drilling Products (SDPI) Tops Q4 EPS by 3c, Revenues Miss

Superior Drilling Products (NYSE: SDPI) reported Q4 EPS of ($0.03), $0.03 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $1.54 million versus the consensus estimate of $1.56 million.

• Fourth quarter revenue of $1.5 million unchanged from trailing third quarter
• For the year, International revenue increased 43% to $1.9 million as the Company executed on its strategy to diversify its markets
• North America markets improved sequentially
• Improvement in North America market conditions demonstrated by $225 thousand order received in late December for new Drill-N-Ream® (“DNR”) patented well bore conditioning tools; additional $270 thousand in North America orders received through February 2021 for new DNRs
• Operating expenses reduced to cash breakeven level entering 2021

Troy Meier, Chairman and CEO, commented, “We are realizing the impact of the improvement in the industry as we add back variable costs to address improving demand. As we advanced through the fourth quarter and into 2021, we have had more activity in North America than we have seen since before the pandemic. It is encouraging to see the market improve, but more importantly, we are optimistic given the growing recognition with more operators of the Drill-N-Ream® (“DNR”), our unique, patented well bore conditioning tool. While International markets were challenged with the pandemic which restricted customers’ operations, we nonetheless continued to build market share and expanded the markets we serve. The production efficiencies which the DNR can deliver are measurable. We believe in this environment of cash conservation, the use of tools that can enhance productivity becomes an imperative for our customers. We were successful in reducing our cost structure to cash break even as we entered 2021 and expect revenue to sequentially improve from here.”

For earnings history and earnings-related data on Superior Drilling Products (SDPI) click here.

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