SDPI - Superior Drilling Products Inc. Revenue Grew 18% to $5.4 million with Earnings per Share of $0.01 in Second Quarter 2023
- Second quarter revenue rose $827 thousand, or 18%, to $5.4 million year-over-year
- Tool revenue grew 23% and Contract Services revenue was up 10%
- Strong operating leverage resulted in measurably improved operating income of $546 thousand, or 10.2% of sales; Operating income up over 4x year-over-year
- Achieved net income of $323 thousand or $0.01 per diluted share
- Adjusted EBITDA* of $1.2 million up 46% over prior-year period; Adjusted EBITDA margin expanded 430 basis points to 22.6%
- Opened new service and technology center in Dubai during the quarter
- 2023 outlook updated with revenue between $22 million to $24 million and Adjusted EBITDA* of $5.5 million to $6.5 million
- Subsequent to quarter-end, the Company executed a new credit agreement which extended maturity dates, included more favorable financing terms and provided additional liquidity
*Adjusted EBITDA is a non-GAAP measure. See comments regarding the use of non-GAAP measures and the reconciliation of the second quarter GAAP to non-GAAP measures in the tables of this release
Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), a designer and manufacturer of drilling tool technologies, today reported financial results for the second quarter ended June 30, 2023.
“We had a strong quarter with revenue up 18% over the second quarter last year. The leverage that we gained from this higher sales volume led to measurably improved operating income and net income, as well as solid EBITDA performance,” commented Troy Meier, Chairman and CEO.
He added, “We continued to gain traction in the Middle East as our international revenue doubled year-over-year and accounted for nearly 20% of our total revenue mix during the quarter. We added to our technical sales and business development team and completed our new service and technology center during the quarter. We continue to be encouraged by the many opportunities in the Middle East region.
“On the domestic front, given the completion of our capacity expansion in Vernal, Utah, we have begun to refurbish a second customer’s PDC bits as part of our contract services work. Over time, we aim to replicate the success and volume of services performed with that of our long-time legacy customer. Overall, we continue to see our investments in manufacturing capacity and personnel pay off.”
Second Quarter 2023 Review (See at “Definitions” the composition of product/service revenue categories.)
| ($ in thousands) |
| June 30, 2023 |
| March 31, 2023 |
| June 30, 2022 |
| Change Sequential |
| Change Year/Year |
| North America |
|
|
| 4,325 |
|
|
| 5,475 |
|
|
| 4,021 |
| (21.0 |
| )% |
| 7.6 |
| % |
| International |
|
|
| 1,042 |
|
|
| 806 |
|
|
| 520 |
| 29.3 |
| % |
| 100.4 |
| % |
| Total Revenue |
| $ |
| 5,367 |
| $ |
| 6,281 |
| $ |
| 4,541 |
| (14.5 |
| )% |
| 18.2 |
| % |
| Tool (DNR) Revenue |
| $ |
| 3,552 |
| $ |
| 4,254 |
| $ |
| 2,892 |
| (16.5 |
| )% |
| 22.8 |
| % |
| Contract Services |
|
|
| 1,815 |
|
|
| 2,027 |
|
|
| 1,649 |
| (10.5 |
| )% |
| 10.1 |
| % |
| Total Revenue |
| $ |
| 5,367 |
| $ |
| 6,281 |
| $ |
| 4,541 |
| (14.5 |
| )% |
| 18.2 |
| % |
Revenue growth year-over-year reflected the recovery in the North America oil & gas industry, strengthened market share for the Drill-N-Ream® (DNR) wellbore conditioning tool domestically and internationally, and continued strong demand for the refurbishment of drill bits and other related tools.
For the second quarter of 2023, North America revenue comprised approximately 81% of total revenue, with remaining sales all within the Middle East. Revenue growth year-over-year in North America was due to increased tool revenue and growth in Contract Services. International revenue doubled over last year’s period, which reflected improved market conditions and the strengthening of the Company’s Middle East technical sales and marketing team.
The revenue decline from the sequential first quarter of 2023 reflects strong tool sales from the Company’s U.S. channel partner during the prior period, and a decline in the U.S. rig count.
Second Quarter 2023 Operating Costs
| ($ in thousands, except per share amounts) |
| June 30, 2023 |
| March 31, 2023 |
| June 30, 2022 |
| Change Sequential |
| Change Year/Year |
| Cost of revenue |
| $ |
| 2,013 |
|
|
| $ |
| 2,239 |
|
|
| $ |
| 2,116 |
|
|
| (10.1 |
| )% |
| (4.9 |
| )% |
| As a percent of sales |
|
|
| 37.5 |
| % |
|
|
| 35.6 |
| % |
|
|
| 46.6 |
| % |
| Selling, general & administrative |
| $ |
| 2,459 |
|
|
| $ |
| 2,339 |
|
|
| $ |
| 1,894 |
|
|
| 5.1 |
| % |
| 29.8 |
| % |
| As a percent of sales |
|
|
| 45.8 |
| % |
|
|
| 37.2 |
| % |
|
|
| 41.7 |
| % |
| Depreciation & amortization |
| $ |
| 349 |
|
|
| $ |
| 326 |
|
|
| $ |
| 403 |
|
|
| 7.2 |
| % |
| (13.2 |
| )% |
| Total operating expenses |
| $ |
| 4,821 |
|
|
| $ |
| 4,903 |
|
|
| $ |
| 4,413 |
|
|
| (1.7 |
| )% |
| 9.3 |
| % |
| Operating Income |
| $ |
| 546 |
|
|
| $ |
| 1,378 |
|
|
| $ |
| 128 |
|
|
| (60.4 |
| )% |
| 327.5 |
| % |
| As a % of sales |
|
|
| 10.2 |
| % |
|
|
| 21.9 |
| % |
|
|
| 2.8 |
| % |
| Other income (expense) including Income tax |
| $ |
| 107 |
|
|
| $ |
| 135 |
|
|
| $ |
| (184 |
| ) |
| (21.0 |
| )% |
| NA |
| Net Income (loss) |
| $ |
| 323 |
|
|
| $ |
| 1,513 |
|
|
| $ |
| (57 |
| ) |
| (78.6 |
| )% |
| NA |
| Diluted earnings per share |
| $ |
| 0.01 |
|
|
| $ |
| 0.05 |
|
|
| $ |
| (0.00 |
| ) |
| Adjusted EBITDA¹ |
| $ |
| 1,213 |
|
|
| $ |
| 2,019 |
|
|
| $ |
| 831 |
|
|
| (39.9 |
| )% |
| 46.0 |
| % |
| As a % of sales |
|
|
| 22.6 |
| % |
|
|
| 32.1 |
| % |
|
|
| 18.3 |
| % |
| 1 Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, taxes, depreciation, and amortization, non-cash stock compensation expense, and unusual items. See the attached tables for important disclosures regarding SDP’s use of Adjusted EBITDA, as well as a reconciliation of net income to Adjusted EBITDA. |
When comparing with the prior-year second quarter, higher volume, improved processes and operational efficiencies drove enhanced leverage despite continued investments in people and higher legal expenses. Selling, general & administrative (SG&A) expenses in the second quarter of 2023 included legal expenses of $450 thousand due to continuing litigation for the Company’s patent infringement lawsuit over violations of the patents on its DNR tool. The increase in SG&A also reflected the expansion of the Company’s Middle East operations.
Depreciation and amortization expense decreased approximately 13% year-over-year as a result of fully amortizing a portion of intangible assets and fully depreciating manufacturing center equipment.
Balance Sheet and Liquidity
Year-to-date cash generated by operations was $921 thousand compared with $1.4 million in the year-ago period. Cash at the end of the quarter was $1.2 million, down $978 thousand from year-end 2022 due to working capital timing, higher capital expenditures, and an increase in inventory for anticipated demand for the DNR in the Middle East. Subsequent to quarter-end, the Company received a $750 thousand payment related to delayed accounts receivable.
Capital expenditures of $2.4 million year-to-date were largely in support of the Company’s Middle East operations, which included the DNR rental tool fleet and the new service and technology center that opened in the second quarter. The Company expects capital spending for fiscal 2023 to range between $3.5 million to $4.0 million.
Total debt at quarter-end was $1.9 million. On July 28, 2023, the Company executed a new credit agreement with Vast Bank, National Association, which included a 5-year, $1.7 million term loan, a 2-year, $750,000 revolving credit line, and a program whereby the lender can purchase certain accounts receivable. The proceeds from the receivables program were used to repay the full amount outstanding under the Company’s prior credit agreement.
2023 guidance updated to account for decline in the U.S. rig count and additional patent infringement litigation costs
| As of August 14, 2023 |
| Updated Guidance |
| Previous Guidance |
| Revenue |
| $22.0 million to $24.0 million |
| $24.0 million to $27.0 million |
| SG&A expense |
| $9.0 million to $9.5 million (includes approximately $1.2 million in legal expenses for ongoing patent infringement litigation) |
| $9.0 million to $10.0 million (includes approximately $1.0 million in legal expenses for ongoing patent infringement litigation) |
| Adjusted EBITDA 1 |
| $5.5 million to $6.5 million |
| $6.5 million to $7.5 million |
| 1 See “Forward Looking Non-GAAP Financial Measures” below for additional information about this non-GAAP measure. |
Webcast and Conference Call
The Company will host a conference call and live webcast today at 10:00 am Mountain Time (12:00 pm Eastern Time) to review the results of the quarter and discuss its corporate strategy and outlook. The discussion will be accompanied by a slide presentation that will be made available prior to the conference call on SDP’s website at www.sdpi.com/events . A question-and-answer session will follow the formal presentation.
The conference call can be accessed by calling (201) 689-8470. Alternatively, the webcast can be monitored at www.sdpi.com/events . A telephonic replay will be available from 2:00 pm MT (4:00 pm ET) the day of the teleconference until Thursday, Monday, August 28, 2023. To listen to the archived call, please call (412) 317-6671 and enter conference ID number 13740109 or access the webcast replay at www.sdpi.com , where a transcript will be posted once available.
Definitions and Composition of Product/Service Revenue:
Tool (DNR) Revenue is the sum of tool sales/rental revenue and other related tool revenue, which is comprised of royalties and fleet maintenance fees.
Contract Services revenue is comprised of repair and manufacturing services for drill bits and other tools or products for customers.
About Superior Drilling Products, Inc.
Superior Drilling Products, Inc. is an innovative, cutting-edge drilling tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. The Company designs, manufactures, repairs, and sells drilling tools. SDP drilling solutions include the patented Drill-N-Ream® well bore conditioning tool and the patented Strider™ oscillation system technology. In addition, SDP is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for leading oil field service companies. SDP operates a state-of-the-art drill tool fabrication facility, where it manufactures its solutions for the drilling industry, as well as customers’ custom products. The Company’s strategy for growth is to leverage its expertise in drill tool technology and innovative, precision machining in order to broaden its product offerings and solutions for the oil and gas industry.
Additional information about the Company can be found at: www.sdpi.com .
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements and information that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this release, including, without limitations, the Company’s strategic review process, the continued impact of COVID-19 on the business, the Company’s strategy, future operations, success at developing future tools, the Company’s effectiveness at executing its business strategy and plans, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and ability to outperform are forward-looking statements. The use of words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project”, “forecast,” “should” or “plan, and similar expressions are intended to identify forward-looking statements, although not all forward -looking statements contain such identifying words. These statements reflect the beliefs and expectations of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the effectiveness of success at expansion in the Middle East, options available for market channels in North America, the deferral of the commercialization of the Strider technology, the success of the Company’s business strategy and prospects for growth; the market success of the Company’s specialized tools, effectiveness of its sales efforts, its cash flow and liquidity; financial projections and actual operating results; the amount, nature and timing of capital expenditures; the availability and terms of capital; competition and government regulations; the duration of the COVID-19 pandemic and related impact on the oil and natural gas industry; and general economic conditions. These and other factors could adversely affect the outcome and financial effects of the Company’s plans and described herein. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
Forward Looking Non-GAAP Financial Measures
Forward-looking adjusted EBITDA is a non-GAAP measure. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measure because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s fiscal 2023 and future financial results. This non-GAAP financial measure is a preliminary estimate and is subject to risks and uncertainties, including, among others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial data set forth in this presentation may be material.
FINANCIAL TABLES FOLLOW.
Superior Drilling Products, Inc.
Consolidated Condensed Statements of Operations
(unaudited)
| Three Months Ended June 30, |
| Six Months Ended June 30, |
|
|
| 2023 |
|
|
|
|
|
|
| 2022 |
|
|
|
|
|
|
| 2023 |
|
|
|
|
|
|
| 2022 |
|
|
| Revenue |
| North America |
| $ |
| 4,325,055 |
|
|
| $ |
| 4,021,118 |
|
|
| $ |
| 9,800,115 |
|
|
| $ |
| 7,766,133 |
|
|
| International |
|
|
| 1,042,295 |
|
|
|
|
| 519,724 |
|
|
|
|
| 1,848,449 |
|
|
|
|
| 904,874 |
|
|
| Total Revenue |
| $ |
| 5,367,350 |
|
|
| $ |
| 4,540,842 |
|
|
| $ |
| 11,648,564 |
|
|
| $ |
| 8,671,007 |
|
|
| Operating cost and expenses |
| Cost of revenue |
| $ |
| 2,013,167 |
|
|
| $ |
| 2,116,096 |
|
|
| $ |
| 4,251,758 |
|
|
| $ |
| 3,883,995 |
|
|
| Selling, general, and administrative expenses |
|
|
| 2,458,804 |
|
|
|
|
| 1,894,403 |
|
|
|
|
| 4,797,653 |
|
|
|
|
| 3,541,051 |
|
|
| Depreciation and amortization expense |
|
|
| 349,447 |
|
|
|
|
| 402,648 |
|
|
|
|
| 675,460 |
|
|
|
|
| 813,379 |
|
|
| Total operating cost and expenses |
| $ |
| 4,821,418 |
|
|
| $ |
| 4,413,147 |
|
|
| $ |
| 9,724,871 |
|
|
| $ |
| 8,238,425 |
|
|
| Operating income |
| $ |
| 545,932 |
|
|
| $ |
| 127,695 |
|
|
| $ |
| 1,923,693 |
|
|
| $ |
| 432,582 |
|
|
| Other income (expense) |
| Interest income |
|
|
| 13,755 |
|
|
|
|
| 2,978 |
|
|
|
|
| 30,653 |
|
|
|
|
| 3,176 |
|
|
| Interest expense |
|
|
| (129,866 |
| ) |
|
|
| (132,738 |
| ) |
|
|
| (283,956 |
| ) |
|
|
| (256,600 |
| ) |
| Recovery of related party note receivable |
|
|
| - |
|
|
|
|
| (22,146 |
| ) |
|
|
| 350,262 |
|
|
|
|
| - |
|
|
| Gain / (Loss) on sale or disposition of assets |
|
|
| - |
|
|
|
|
| - |
|
|
|
|
| - |
|
|
|
|
| (22,146 |
| ) |
| Total other income (expense) |
|
|
| (116,111 |
| ) |
|
|
| (151,906 |
| ) |
|
|
| 96,959 |
|
|
|
|
| (275,570 |
| ) |
| Income before income taxes |
|
|
| 429,821 |
|
|
|
|
| (24,209 |
| ) |
|
|
| 2,020,652 |
|
|
|
|
| 157,012 |
|
|
| Income tax expense |
|
|
| (106,654 |
| ) |
|
|
| (32,299 |
| ) |
|
|
| (184,266 |
| ) |
|
|
| (63,683 |
| ) |
| Net income (loss) |
| $ |
| 323,167 |
|
|
| $ |
| (56,508 |
| ) |
| $ |
| 1,836,386 |
|
|
| $ |
| 93,329 |
|
|
| Earnings per common share - basic |
| $ |
| 0.01 |
|
|
| $ |
| (0.00 |
| ) |
| $ |
| 0.01 |
|
|
| $ |
| (0.00 |
| ) |
| Weighted average common shares outstanding - basic |
|
|
| 29,247,563 |
|
|
|
|
| 28,235,001 |
|
|
|
|
| 29,246,328 |
|
|
|
|
| 28,235,001 |
|
|
| Earnings per common share - diluted |
| $ |
| 0.01 |
|
|
| $ |
| (0.00 |
| ) |
| $ |
| 0.01 |
|
|
| $ |
| (0.00 |
| ) |
| Weighted average common shares outstanding - diluted |
|
|
| 29,295,761 |
|
|
|
|
| 28,235,001 |
|
|
|
|
| 29,294,526 |
|
|
|
|
| 28,305,101 |
|
|
Superior Drilling Products, Inc.
Consolidated Condensed Balance Sheets
(unaudited)
| June 30, 2023 |
| December 31, 2022 |
| ASSETS |
| Current Assets |
| Cash |
| $ |
| 1,179,791 |
|
|
| $ |
| 2,158,025 |
|
|
| Accounts receivable |
|
|
| 4,687,791 |
|
|
|
|
| 3,241,221 |
|
|
| Prepaid expenses |
|
|
| 351,840 |
|
|
|
|
| 367,823 |
|
|
| Inventories |
|
|
| 3,152,403 |
|
|
|
|
| 2,081,260 |
|
|
| Assets held for sale |
|
|
| - |
|
|
|
|
| 216,000 |
|
|
| Other current assets |
|
|
| 192,493 |
|
|
|
|
| 140,238 |
|
|
| Total current assets |
|
|
| 9,564,318 |
|
|
|
|
| 8,204,567 |
|
|
| Property, plant and equipment, net |
|
|
| 11,086,053 |
|
|
|
|
| 8,576,851 |
|
|
| Intangible assets, net |
|
|
| - |
|
|
|
|
| 69,444 |
|
|
| Right of use assets (net of amortization) |
|
|
| 559,405 |
|
|
|
|
| 638,102 |
|
|
| Other noncurrent assets |
|
|
| 112,619 |
|
|
|
|
| 111,519 |
|
|
| Total assets |
| $ |
| 21,322,395 |
|
|
| $ |
| 17,600,483 |
|
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
| Accounts payable |
| $ |
| 2,433,587 |
|
|
| $ |
| 1,043,581 |
|
|
| Accrued expenses |
|
|
| 959,966 |
|
|
|
|
| 891,793 |
|
|
| Accrued income tax |
|
|
| 524,687 |
|
|
|
|
| 351,618 |
|
|
| Current portion of operating lease liability |
|
|
| 52,116 |
|
|
|
|
| 44,273 |
|
|
| Current portion of financial obligation |
|
|
| 78,842 |
|
|
|
|
| 74,636 |
|
|
| Current portion of long-term debt, net of discounts |
|
|
| 1,424,057 |
|
|
|
|
| 1,125,864 |
|
|
| Other current liabilities |
|
|
| - |
|
|
|
|
| 216,000 |
|
|
| Total current liabilities |
|
|
| 5,473,255 |
|
|
|
|
| 3,747,765 |
|
|
| Operating lease liability, less current portion |
|
|
| 342,344 |
|
|
|
|
| 523,375 |
|
|
| Long-term financial obligation, less current portion |
|
|
| 3,996,937 |
|
|
|
|
| 4,038,022 |
|
|
| Long-term debt, less current portion, net of discounts |
|
|
| 448,424 |
|
|
|
|
| 529,499 |
|
|
| Deferred income |
|
|
| 675,000 |
|
|
|
|
| 675,000 |
|
|
| Total liabilities |
|
|
| 10,935,960 |
|
|
|
|
| 9,513,661 |
|
|
| Shareholders’ equity |
| Common stock - $0.001 par value; 100,000,000 shares authorized; |
| 29,245,080 shares issued and outstanding |
|
|
| 29,253 |
|
|
|
|
| 29,245 |
|
|
| Additional paid-in-capital |
|
|
| 44,407,147 |
|
|
|
|
| 43,943,928 |
|
|
| Accumulated deficit |
|
|
| (34,049,965 |
| ) |
|
|
| (35,886,351 |
| ) |
| Total shareholders’ equity |
|
|
| 10,386,435 |
|
|
|
|
| 8,086,822 |
|
|
| Total liabilities and shareholders’ equity |
| $ |
| 21,322,395 |
|
|
| $ |
| 17,600,483 |
|
|
Superior Drilling Products, Inc.
Consolidated Statements of Cash Flows
(unaudited)
| Six Months Ended June 30, |
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
| Cash Flows from Operating Activities |
| Net income |
| $ |
| 1,836,386 |
|
|
|
|
| 93,329 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
| Depreciation and amortization expense |
|
|
| 675,460 |
|
|
|
|
| 813,379 |
|
|
| Share-based compensation expense |
|
|
| 456,819 |
|
|
|
|
| 422,601 |
|
|
| Loss on sale or dispositon of assets, net |
|
|
| 22,146 |
|
|
| Right-of-use amortization |
|
|
| 103,624 |
|
|
|
|
| - |
|
|
| Amortization of deferred loan cost |
|
|
| 3,087 |
|
|
|
|
| 9,262 |
|
|
| Changes in operating assets and liabilities: |
| Accounts receivable |
|
|
| (1,446,570 |
| ) |
|
|
| 72,452 |
|
|
| Inventories |
|
|
| (1,071,143 |
| ) |
|
|
| (149,223 |
| ) |
| Prepaid expenses and other current assets |
|
|
| (37,372 |
| ) |
|
|
| (285,628 |
| ) |
| Accounts payable, accrued expenses, and other liabilities |
|
|
| 227,145 |
|
|
|
|
| 342,193 |
|
|
| Income tax payable |
|
|
| 173,069 |
|
|
|
|
| 13,422 |
|
|
| Net cash provided by operating activities |
|
|
| 920,505 |
|
|
|
|
| 1,353,933 |
|
|
| Cash Flows From Investing Activities |
| Purchases of property, plant and equipment |
|
|
| (2,432,561 |
| ) |
|
|
| (1,249,419 |
| ) |
| Proceeds from recovery of related party note receivable |
|
|
| 350,262 |
|
|
|
|
| - |
|
|
| Net cash used in investing activities |
|
|
| (2,082,299 |
| ) |
|
|
| (1,249,419 |
| ) |
| Cash Flows from Financing Activities |
| Principal payments on debt |
|
|
| (283,139 |
| ) |
|
|
| (281,487 |
| ) |
| Proceeds received from debt borrowings |
|
|
| 131,552 |
|
|
|
|
| 182,318 |
|
|
| Payments on revolving loan |
|
|
| (499,887 |
| ) |
|
|
| (553,650 |
| ) |
| Proceeds from exercised options |
|
|
| 6,408 |
|
|
|
|
| - |
|
|
| Proceeds received from revolving loan |
|
|
| 828,626 |
|
|
|
|
| 553,631 |
|
|
| Net cash used in financing activities |
|
|
| 183,560 |
|
|
|
|
| (99,188 |
| ) |
| Net (decrease) increase in cash |
|
|
| (978,234 |
| ) |
|
|
| 5,326 |
|
|
| Cash at beginning of period |
|
|
| 2,158,025 |
|
|
|
|
| 2,822,100 |
|
|
| Cash at end of period |
| $ |
| 1,179,791 |
|
|
| $ |
| 2,827,426 |
|
|
Superior Drilling Products, Inc.
Adjusted EBITDA 1 Reconciliation
(unaudited)
| Three Months Ended |
| June 30, 2023 |
| March 31, 2023 |
| June 30, 2022 |
| GAAP net income (loss) |
| $ |
| 323,167 |
|
|
| $ |
| 1,513,219 |
|
|
| $ |
| (56,510 |
| ) |
| Add back: |
| Depreciation and amortization |
|
|
| 349,446 |
|
|
|
|
| 326,014 |
|
|
|
|
| 402,648 |
|
|
| Interest expense, net |
|
|
| 116,111 |
|
|
|
|
| 137,193 |
|
|
|
|
| 129,760 |
|
|
| Share-based compensation |
|
|
| 229,671 |
|
|
|
|
| 227,148 |
|
|
|
|
| 212,469 |
|
|
| Net non-cash compensation |
|
|
| 88,200 |
|
|
|
|
| 88,200 |
|
|
|
|
| 88,200 |
|
|
| Income tax expense |
|
|
| 106,654 |
|
|
|
|
| 77,612 |
|
|
|
|
| 32,299 |
|
|
| Recovery of Related Party Note Receivable |
|
|
| (350,262 |
| ) |
|
|
| - |
|
|
| (Gain) Loss on disposition of assets |
|
|
| - |
|
|
|
|
| - |
|
|
|
|
| 22,146 |
|
|
| Non-GAAP adjusted EBITDA¹ |
| $ |
| 1,213,249 |
|
|
| $ |
| 2,019,124 |
|
|
| $ |
| 831,012 |
|
|
| GAAP Revenue |
| $ |
| 5,367,350 |
|
|
| $ |
| 6,281,214 |
|
|
| $ |
| 4,540,842 |
|
|
| Non-GAAP Adjusted EBITDA Margin |
|
|
| 22.6 |
| % |
|
|
| 32.1 |
| % |
|
|
| 18.3 |
| % |
| 1 Adjusted EBITDA represents net income adjusted for income taxes, interest, depreciation and amortization and other items as noted in the reconciliation table. The Company believes Adjusted EBITDA is an important supplemental measure of operating performance and uses it to assess performance and inform operating decisions. However, Adjusted EBITDA is not a GAAP financial measure. The Company’s calculation of Adjusted EBITDA should not be used as a substitute for GAAP measures of performance, including net cash provided by operations, operating income, and net income. The Company’s method of calculating Adjusted EBITDA may vary substantially from the methods used by other companies and investors are cautioned not to rely unduly on it. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230814901185/en/
For more information, contact investor relations:
Deborah K. Pawlowski / Craig P. Mychajluk
Kei Advisors LLC
716-843-3908 / 716-843-3832
dpawlowski@keiadvisors.com / cmychajluk@keiadvisors.com