SDPI - Earnings call transcript Q2 2018 | Superior Drilling Products Inc

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Operator

Greetings and welcome to the Superior Drilling Products' Second Quarter 2018 Financial Results. [Operator Instructions]. I would now like to turn the conference over to Deborah Pawlowski, Investor Relations. Thank you. Please go ahead.

Deborah Pawlowski

everyone. hello and Brenda, Thanks, We certainly Drilling interest Superior and your time Products. your in appreciate

call Meier, On CEO are today the Troy Cashion, Chief and our our Financial Officer. Chris and Chairman

results a of markets have this also will slides and have morning released today. accompany should You our opened the financial conversation before that copy the the that should were

You can find both on our website at www.sdpi.com.

to as cause as session. are These other the by forward-looking with differ risks subject materially and statements formal are documents to that apply discussion, some the These are we actual Q&A during and could Company the make Exchange Commission. well Securities uncertainties events what may aware, well other factors results during to earnings As is in today. and uncertainties, the you as as provided that as filed stated future here in and statements other the risks well from as factors release,

documents or which performance. we today's be on discuss measures, call, non-GAAP You during can in evaluating some useful our we that I'd find at like believe also out website these will point to our sec.gov. will

consider this in or prepared additional a You presentation isolation results should GAAP. in substitute information for with the as accordance not of

non-GAAP the comparable release, in the We earnings have provided reconciliations of accompanying tables in deck. with slide the GAAP measures as as well

it me turn Troy to to let over that with So Troy? begin.

Troy Meier

we're get to second things for call. we're we've Thanks your over break-up highlights conference bit, Deb. second as want Deb one that's seeing got a strengthening couple of Thanks, for touch bit we the of our this to assurance. be to Hopefully a as little We're our throughout the, a so but remainder not and into we go places to be look at need we team, bit assurance on the we're into tools the putting quarter little quality going emphasis year, there I our doing go move level quarter XXXX require I'm QA. into Anyway little forward we really on we for it today of of the deck new of them us is through that that a before going now on go as joining call. coming whole clear everybody our quality on slide off-shore

Our we whole done has done good partner's they've DTI as and new these a want job a job very been very, of moved supporting a into efforts quality level really we thank to great as us assurance. great channel supporting them,

thing other going on relationships we rollout starting this in to continue to well. really product partnerships The it's really to going identify that the deck rest and important that is that be the to have partner and the organization channel doing we're at we really as as the Strider talked it's a we've strengthening them, to commitment much be don't year, made the slide start the that to going throughout channel stress year of the the too this slideshow we're and that of to as of proper as how that and about remainder channel and do year throughout the partners pay-off affects we be on we'll the line and

you're will will to equipment goal by have some now, is and about The the and in facility Xst is going year per about capital middle thing Texas of to we're hear facility. of we spending opened be talking going expansion other we'll the our that remainder the the about throughout of talk to October right our be that to that expansion, that be Chris

go the like have you it. into get through let's said being the deck that highlights So and slide

we this we are about You XX%. programs that have Again, up developed. with channel growth developing at our talked and we revenue partnership look the

is talked see have to these these what partnership have that have means got to We relationships fleets to late. always to replenish starting channel replaced. programs grow are we we and used they as be letting And age as get about inventories

to or customer level share certain base tools let of out. just can't build and cut You market a those then get

effects You replace to starting to see them. you are got And that replacement program. the of

Additional see are starting of accepting line you to benefits as customers that the well. are product [drilling] the that

that down that to and of because phenomenal in do going we little is looking as the The all a this generation job opportunity partners great talk that look we anticipated. about and Middle just a bit we doing the quicker the quicker over what DNR a team the than something there. that East going think channel our there mention than that’s a happened Our and opportunity that is up But was at East forward that at there Mid fantastic company want analysts revenue I there little line what anticipated. job the one developing a those with the as building we something came product relationships. I

gone and very the we tools that with have on what tools tools are run tear now formations As we have the looking like pleased on drilling those we and are repair we that over we're are what we over we in identified there schedules pulling seeing. and there are the the wear

to nine hit. neat find okay, wow, with the KPIs they about I after out and we over go some there. little differently doing that’s get go can here there a customers -- out and want looking XX of we we part XX go KPIs be a it. to can with going go we there list KPIs didn’t you the of talk list a if are let's of this We one Over at and world hit

just performance So indicator depending we we we need location on that are KPI key what what focusing the suits they in are what what best are country on in.

are up you back really about and they XX XX they part of are trips really think and having over back advantages and good, feet drill big of that well what stand doing feet high. call going come short if will reaming and a there the every we do So them the they not rein down then to can are

those short So trips KPIs look if at. can we we one of that the that's eliminate

tools and to looking and We third quarter in have on we that. we tell that forward it's shaping get Kuwait a lines. the lot The the how we very and tool, about are right channel as in you talking about more It's the market can important Saudi downhaul Strider developing so that that partners more up. we are Arabia

sideways, strong pretty getting a over you think are X feet, lateral finished still impressive. that’s results We XX,XXX just going if about we mile

million our really tools net a is done larger job and with us name struggle, good we Our for developing not is supply with our bottom getting so pushed keep But income bucks. help a our that doing much to us tools much sit here roll time how the the that at on for on parts our start will so our are you the can much, and being itself, called long out We back a we’re vendors, chain, said that we lineup with competitive still tools, get that it's order struggling they struggle line but we what they product make got when increased. we’re have can look down give sure deliver up and vendors dates see that being to better.

think going East. and looking our the will So you with partnership be in pleased to the year forward of programs the the on rest tools second I with we’re Mid an the the our quarter those of and through eye also channel results of deployment

turn to going I’m said Chris. it being the With over to

Chris Cashion

quarters five a upward mentioned it’s looking XX% over Thank slows Slide QX revenue And to XX% in trailing on our continue this is where the at everyone, by do prior our quarters, quarterly our X, let’s quarter you and the kind the compared this see down that you, growth to a out revenue as bit. quarter, up Troy slide Troy. as growth 'XX as can trend of that’s point see the we spending strong quarter welcome the and upper last industry dip over chart left so up, the what of a review and

we of track with that line. in right QX back are this but see from we QX our can and that So that trend QX on see the effects of you year

development revenue period to remind just were mentioned, flesh pleased out testing, came we really some got under customer. that. to we We value good far of with our more agreement to development is that about need data and rental the getting our we and really order the year. able as this of this international being than in testing to as Troy some Then million agreement so the negotiations results tool split while the thought, need so runs, in more it still Weatherford revenue quicker the known agreements we're everyone in field also joint market $X.X in market development extend So and under a with little as we and we're during we so revenue East need Weatherford the period as them with initial also more extending proposition Weatherford that end market the Middle invoice with now to joint

rental we So partner see been to to some six enter we agreement commercialization channel are the great other it's starting into one revenue has on that hand, the with revenue, hand, extended the that months. the want on

US have tools selling agreement do a we to similar nice that's but this are sell our anticipate we where agreement we we don't seeing So as revenue. rental year some tools, to commercial wanted

that so very down some Middle that’s Hughes hurdles improve is and another our up refurbishment Troy that's renewed agreements, quarter mentioned volume to prior East. excited very through bottom-line side the increased. in We inked this the for manufacturing business year four results bit we’re contract up but years. generation our nicely services refurbishment we the good, Baker are agreement of the revenue we’re actually start with has initial that the versus little as bit got work business So a our to With the continues side, nicely, custom

agreement see out some starting know As got and an to that. may that fruit from geographic expanded we’re you territory we of

and and the due and of the trailing more pleased X.X the we If sales see it’s time Troy as other improving. receiving refurbish very-very-very those our million complex performance channel tools we reworked, the part and you that as metrics that call kind it's of and we very-very X, of of us; break U.S. really this the grown a the how see can and that’s prior graph, and the on -- overall that as have and the to of the Slide of over see other sales we mentioned down flat and we that that revenue distributor and U.S. sequential so since pleased quarter slide up to that distribution in found revenue with the to agreement and and the recall get the but that revenue with number XX% distribution tool period, entered in tools relationships it’s performance on we is that’s our are discussions go business QX were increase there product you see continuing can nailed side slide. taken has refurbishments So left-hand at this pleased of revenue fairly the nature slowed quarter the was we’re with you look from the on complex so market royalty highest QX sales that we’re we’re down timing to tool developing down the huge can we year. trailing may tool that rig we’ve hasn’t with our all. such revenue so more how be in may of tool the you the and partner both just and this you between at useful, this emphasis chart rigs that's agreement, can is measuring metrics sales so get considering, had those on a other XX% that when some revenue tool that breakdown of a metric bar in to the get you for we’ve with horizontal from so bar lines and and year some those got lot

Middle with results We’re -- active as with we potential our channel mentioned channel are Troy continuing the to discussions perform good well partners, partners. have and market discussions do very and then preliminarily very East

environments we’ve in are sized then also completion we those Strider and tools and tools X, from all program we’re and size So hard-flow, engaged we’re multiple and it a side tools, five up relationships the X.X on tool X and way field prototype to environments, X in, geographic inch pursuing low-flow testing testing building drilling inch we’re for extensive a tool environments. the different different an that

performance to-date of a and in Troy an quite the do higher that's year well, to and reasons mentioned testing field is the continued, that second it’s the extensive more has So from of so Strider. going program we’re quite the of very testing as work we field bit have do and one building spending prototype half

So, we spending very-very in we’re and expansion to to in that under continue just go we look costs I time same the we carefully; now taking at we that stays quarter, if R&D area at X, these and that making control business increasing are manage of and expenses the guided operating spending Slide internationally. to sure last as our referred

R&D then for as of margins sure our time that spending, SG&A but can QX we're million the and on to are so time, to the of be -- purchases from remembers 'XX QX to revenue mentioned on in track we to last of improve. as keeping all we're see ramp-up last to percent SG&A that sales cost so types achieve to it expect you we continued track $X guided approximately seeing were and we and including and then XXXX increasing spending a is as one of and flat that. the we make SG&A So And our controlled just

of the that. the strong press Good at spending we release, Now Timing key income lot through our our QX about that about our service half take million -- of it operating little second with income bit are a the capabilities QX international quarter-to-quarter. on us and and Troy at some when all this that $X.X if SG&A and we that's really in have adjusted revenue and Slide tightened we the place going incremental on. the the some operating that, to spending we're income that we in light QX, guidance, running so GAAP East Middle range R&D, operating some fall that so thought that. of see strong we a going but get we in that's hit helped a see go X, just we get Xst through very we QX year. leverage very, And in in facility about very October in in a QX, to to we income incremental spending excited guidance incremental there, we we're second leverage of would see the both pleased so good a a In GAAP on expanding second and revenues, expect about fall offset and put of the and came around will of a in just operating and I'm talk the you see on to up a have we planned spending to that's that's with then and the operating will side what's service we and maintaining and talk look on that R&D facility, didn't we some going Texas what that really we'll going good of pleased we're that talked half see about around mentioned, basis to in that incremental is year. be that, that the and operating excited

we've to that adjusted story income, GAAP net is you the here Now, the between the strong amortization basis shows conference see Page same up, specifically Deborah our GAAP amortization on improvements, if reconciliations the and numbers on as that's mentioned a a in reconciliation XX, when of we Slide adjustment and XX, go she Page GAAP on and and a adjusted GAAP expense. opened deck XX, and got it's expense on $XXX,XXX

year, that's just we're that XX% of GAAP incomes XX of in R&D that's in so basis of the on we responding nicely as of doing in the and and for with net percent ended-up and that second EBITDA million so XX.X% either that, light EBITDA second million and roughly our but X.X the half performing see you then adjusted roughly low nicely a million expansion. percent revenue in on EBITDA in where first million you and year geographic a that's either the And areas the bar quarter part as a incremental can there, that XXs, hanging under quarter $X blue of first an a half spending revenue and very in see kind the $X XXXX we're maintaining EBITDA or this of even

once we goes up. testimony to the have so and leverage that's again operating the And strong revenue

basically and net So adjusted we lines. EBITDA those adjusted pleased with trend very income are

Slide we Now is XX this powerful just the is to always, outstanding. And as go balance We if sheet. this sheet. just say really a believe

cash cash million up the consistent cash has coming and can the bar quarter You end been at since XX, is years last June see X.X X.X top nice in the climbed over to 'XX nicely. the debt down ramp chart strong of a

So got the we the going we direction debt have in got and cash right right direction. in headed

EBITDA cash, very at rental are and are look X.XX net you we reducing kind a ratio generating mortgage. we kind when pleased refinancing of the really debt that, as with X.X of in debt good operating I So to our mentioned,

months maturity debt we lender us to our six extend We as various date to agreed the for date have lender, us give that extended consider another with that options. restructuring

are and that that months so. getting done refinanced or six next the anticipate we we so and at some over restructuring And looking

facility and sense payment credit to don't did Once as forma have which X.X there debt capital And and this was on We financial came that hard that pro you place might can on some rock believe note that little we had working get are put now make us. down debt we expect to at note July due million. just $XXX,XXX our XX talk -- facility on a our XX good that we see We have payment some place the July point. to in got we to we credit some some for pretty we facility in capital a we make the results that with put July so to that in know working again, discussions lenders and XXth. made last lenders the

we million now QX really going. XX midpoints with we've It's million up guidance. pleased Slide that’s in in strong we total of the debt guidance. direction the to the we in bit. had. that tightened And because XX was doing so our now So done of are tightened to and we where for guided as moved have XX XX are have XX range. We million And on have up revenue a QX that we XX we the What

end million range. We are have XX range confidence come million to we going of that just in that that more got to of XX that higher

have between XX%. brings tightened confident to midpoint which on X% we up. and X% more tightened operating results good in to and margin the that So with we we thing that QX had up on we Same guidance are a the up XX%, well

capital CapEx of in going year. CapEx. under XXXX rock facility, repair a unchanged $XXX,XXX million three amortization spent mentioned into income, $XXX,XXX unchanged off million in on million we midpoint facility pretty the in So half that have is service that 'XX it just the kind and the unchanged we have quarters to that’s Texas and is already of interest going a couple down. Troy hard the expenditures first and expense dollars $X It's going some for operating on Depreciation much in note. got of require a paying

the at we So second year CapEx spending of kinds looking those some for are of things. half the

about are last. first you that’s a as $X the of we bump second year the So showing million reason but CapEx what if spent versus recall the half is we a in half

of dollar second the million half rather that’s loaded year the backend same half. first the Its So number. more than in

going I’m is over there So And turn guidance that Troy. for XXXX. this our with to back it, that’s to

Troy Meier

are to step going into that. question a answer so and phase, we and I go go ahead believe into let's

Operator

[Operator Instructions] from Jason with Our comes Capital. question first Wrangler Imperial

Jason Wrangler

working I of, works Saudi kind how or progress know that maybe working drilling from commentary you are Appreciate Arabia, specially just the so in far. is that that sounds others, all if kind granularity, slide little more both each like and didn’t in you terms think should better is you it you revenue are a international stages in in well, guys in than or the how earnings you made can Kuwait, provide about the of we country be one of thinking different if kind of are

Troy Meier

has Jason progress has that’s the in been revenue the Kuwait where from. really So come

running in most talks as tools have in tools the in Saudi there some as see well in Saudi, are Oman, had the we running have go we now. third through we’re and We’re tools just we we there runs coming of Kuwait, but there run to runs been quarter, and this those we starting results of begun will revenues but in we’re shortly over seeing from

Jason Wrangler

you timing next that's think the starter I be mentioned year of you I you think ones then maybe in a quarterly guess as this that, will well have probably be I like there start effectively this you consistent agreement is more call time prepared last and you formal have your that an I like something right. it if and about with agreement to talked that kind that and agreement will something about a domestically more is comments And Chris think

Chris Cashion

go to That's piece June really has Saudi we the right. started longer Oman longer this of taken market spoke we thought would continues XX mentioned and Saudi. time we than well done Troy out well. taking has development Last and and Kuwait as get

operators in development conclusion and of we this value need testing, the as know that proposition East, value offering once discussions the of the what agreement it's we the market partners. into we agreement the agreement with Middle at then channel is were establish around move to can after that’s that's that So extension the the tool commercial the for development market an in and is

that's to early be next so going And yes, year.

And news in revenue is so $XXX,XXX we’re rental the some getting good QX.

So model that's be the to want but that have the what sell here going before the model, really want we ready U.S, getting similar it's into next to -- of nail down. early is kind we that's we tool year good into which we're a in that

Jason Wrangler

everything and Hard Okay that you Chris you maybe mortgage. about I balance of also on it's forward the sheet Rock kind if you taking at or from Is you well together since mentioned to kind one pretty you last a side. the mentioned as look to debt you balance could, work obviously opportunity refinancing as there you're how think doing have sheet look and kind to of nice work as

Chris Cashion

those to exactly I so wraps and to may want kind that of the with avenues interested the like the a so take into broader next more just XXXX. who Rock what just people X in some broader to mortgage and Yes, in a see those of end on talking Hard that a now pursue that there X that million mortgage like discussions, is before $X just, looking that’s restructuring due million that needed why -- those when note, we package still may That’s it million wraps restructuring. last discussions be would the you up know that it little run we which we in and is a -- down it that’s so look looks notes mentioned refinancing, due not folks at at because exactly so Rock be due what to that of notes and time -- kind Hard a the we as down as we're year, in it and is Jason, to we’re options of are are it

would Get And way down five that we a over to find that to term like so years out. to three two. to spread

Operator

ROTH the with Capital. our of comes questions John And next White line from

John White

national a can bit major you all talk little On customers? the service oil East, owned about or oil the companies Middle they oil state companies? companies, Are companies or

Troy Meier

They them. national Majority oil are companies. of

John White

furnishing that think of this market. in you’re the only -- you And of type the product one type

Troy Meier

there’s some there; performance competition Kuwait, competitive think before companies there at we there’s products over product superior that some over did. got Well, is I think we’ve got there, we like we -- and over showing we’ve in look look that, the that got we a if but at

John White

winning so that very Yeah, well looked encouraging. you're some business

On the Texas that it as going it’s you that care facility, what sold? have facility take described service that to been -- units a of already is

Troy Meier

Correct.

us Texas, a have a repair our there. our product it a work logistics field in better to at to that's lot do Texas the to and down and give us services we’ll those give going bit us with a facility the look we in side were rental servicing So, Strider Texas perform of that things service facility for line. market and has going also place but also given Oklahoma, on We a staging ground enhancing markets our at from we look relationship take

line product it’s So it’s just not three. one actually

John White

Okay, is good, where it well that located? sounds

Troy Meier

San at -- we’ve we’ve in facility we’ve places, and I looking like Angelo but identified a both and identified two -- looking We’re more Abilene at Abilene. been looking

Operator

[Operator come the from questions next with line John of Our go Instructions] Sturges Oppenheimer. Please ahead.

John Sturges

am revenue come revenue and in is bit typical pretty sale, in royalty quarter the roughly the to just time starts little or first decent delay sequence the flat what’s what it's between sales assume -- that to be the this yet the so I a seems of, quarter, when curious terms a the the I versus royalty delay of that?

Troy Meier

equipment of comes refurbishment, the the royalty it and some well so be to refurbished of get the that as in new to is also maybe is on so when as quarter needs we line we and what John of equipment we really to did and was control are with need Yes, our used it in the ordered that it's the part in that the repaired. all seeing believe come equipment be out

just it's the that timing hard down. to And of that so kind it's of nail

so late quarter just following need and QX had we it in might didn’t over that be lot increase nice we a was -- QX quarter. equipment of was and came see have repaired the that You a there what to

that it's side really it's So that -- is of bit been hard kind to re-furb on predict it's that.

John Sturges

to just and Strider there? this as see looking almost the can it, sense would product some in the that and space activity be and Strider of ducks to when record number that high application any Got CT you is color is likely is have just why a at provide I good my XXXX begin ranges the -- to

Troy Meier

partnership several in we're and they services very that that companies. one Louisiana, were now in strong well We've right and Oklahoma very market are Texas. very channel got negotiations with Yes, with pleased that

Deborah Pawlowski

might the tool Troy. on to the too to comment You want sales reaction

Troy Meier

are customers out then a the mean on next the well foot very plug tools I couldn't of competitive tool did tool constantly at performance miles not doing able finish, world that out last they of very mean seeing, plugs sideways then look because tool that they the the and I we we're talked were we the cannot drill out as us the brand-x think long to do, that is up we get plugs on I X are Yes, far when a the and jobs there taken taken talk XX,XXX tools our complete call as case the there there, then getting well. and tools this drilling and developing along about tool finishing the or good last that drilling our lateral out name and that cannot when they say lateral, plugs we earlier out very so about the not in the finish this only I'd X X last wanting

tools heads just again, you do have good a and partners that and up of line is get know can we we so doing for tool we've And don't continue that there, the need to we gentlemen right have to the in we tools we name a he and info, job phenomenal market sales of just Strider he and the going our know want be tools and and the best get organization we're developed stay just it's -- don’t not to a something do the lot dirty market. info, need top the we got what these here to size we we've back. that going to have on tools got identifying with So, it's the some of to out us it and the them and is develop of team make to a we Elgin think a make but you channel need

with info. line to up can is pleased a time. seen somebody getting we're what want this we we critical Yes, delivered and give downside we've difficult except in with supply us having chain So of our very that tool are far team on so just the that that very components time with

make we that parts are cannot house. in these So

to work we've it. So been we've working chain got our what supply better than much

John Sturges

bits. hardened your be would those So

Troy Meier

Pardon me.

John Sturges

The bits hardened the…

Troy Meier

the our function identified so no, some tools that material have and really, it outlasting I that we -- creates the known hardened put or year all and this existed No, we know didn’t a have tool is of in up the about. ago really material neat pulse until we been

John Sturges

in You had mentioned earlier your that calls.

Troy Meier

The performing supply getting to issue up ramped is is material this them really us consistent well. Yes parts.

so of I but that's year. biggest the the second been in struggle that our And half overcome we are struggle think

Chris Cashion

And of some inventory. going to strategy also part be to carry is additional our

we keep didn’t mention our steel real did you control. I bringing As under We keep inventory need. tight moving didn’t did down. it look execute We that some slow at that QX. inventory balance sell we that sheet we in real

of sell all inventory. are So we

these going the to equipment we is that maybe built. things are this inventory One start so a we get on doing at carrying can more of parts little looking

payoff. So will to it but that’s cost capital a bit little us going working

John Sturges

particular do type this you not this that Is Is if in could a material? skill set it’s can't you not of this the alloy specialized to -- What product about I’m yourself? for material? curious it some are have parts the something you you actually something house is because is -- waiting to create

Troy Meier

got our company to needs. missing create we to acceptable that something we dates. can This to our supply to house. very has this focus is are. something needs Yes, an due to their we not big on are not be And inventory just in build going an so them we more as get what is ramp They is not up to This alloy. are our vendor just

John Sturges

that Simply than the of But change. will bit smaller the be issue at like being to a moment. you would

Troy Meier

Correct.

Operator

question with next the of comes line Our John Ascend Bair from Wealth.

John Bair

with And Given relationship might far in America, thinking shed thoughts then and the them East Could Middle share you service of this be some the a in a other tools are Weatherford have marketing what got light areas the global that introduce you there? as you as to that they in with distribution South company. your I’m for Can world? kind -- geographical arrangement example. on arrangement

Troy Meier

now tools we Sure, looking the very instrumental getting help Weatherford Mid are out They get right at been rigs. our in work our have on we the in with them. -- East,

We enjoying hands tools with. know that's are like What's we to that And the comfortable And we the whoever with of like and one we'd into can with do markets so lot quickly out the a that are that how move thing what of we international are tools get we right that really working quickly. join far it. trying can we now. value we market the get seeing the and saturate we to people that we're can

right only relationship Weatherford we've So we love at. the now that but are we’re they created ones with the not looking

Chris Cashion

was the started the of idea point we the geographic And product first and international expansion, on. focusing so it was East just Middle that

you if step that's one will. So

Southeast in those is America, this on are and for yeah, Asia all that's is going expansion so it an international the Middle East, speaking, And the to broadly South us map. locations be

John Bair

within international that domestically front, translate if you're basins of of was have to your relationship process I wind with would whatever, some product distributor get of going demand your here. that's good the hope the a that then of different with where with going US guess international operators would into thought more you expansion that you thing, value that was if obviously seeing I is I going the would your you my on the tools increase be conceptually and I

Troy Meier

whether requests tools waters we never turn time. lot couple I companies muddy heard we requests that our You're for the a just correct. them we and like Argentina We would say We a been down all of, America tool, pick in the would very companies usually times are got of want South careful to month on up the we that we tools get don't in we those and partnerships the back companies commitment go it calling to we a team made pulling that saying we getting partners. decide Colombia, go rig Argentina, and got be make and it can would channel have we the Mexico. out support don't there We with channel on and that you to and want sure the find the

But to just throughout say it got industry, tool in that name right. right the the that sure Argentina a we’re company a someone we find the partner and sure getting rapping the call we to to to because to make right and we're and partner. we just going somewhere have make one BP tool to is the we drill-n-ream. having from make want don’t we supply going And you so hard just working channel channel got be Drill-N-Ream they're wanted get down, think tool now good a we distribute wants very sitting sure the

John Bair

that is your there, about in as what you statement. it a as can't sounds supply And previous crank but might just said chain fair you you the is fast that that comments light also of demand perhaps about in that like

Troy Meier

that with here and we strong chain. can supply tomorrow. very tool, we Drill-N-Ream here. that can tools. we a has no in is just not the there’s The statement and no are No The Strider components in fair have steel Drill-N-Ream out that produce problem cranking all, have and vendors order today we it product diamond very, have we our the that's at tool on problem cannot Strider

Operator

now of comments. the you. question-and-answer floor the management our turn for to end session. I’d like to Thank reached over closing back We’ve

Troy Meier

again forward often. us; to your say; going get of getting thanks to have you’re call we you to we’re we’re support everyone and we to going out going in for Well on we getting joining to listening and find doing; more think aggressive appreciate the more your that I on look what seeing -- we out we’re what appreciate --

very to you thank forward seeing soon. look and So, again you much

Operator

at This disconnect your this for concludes time; teleconference thank today’s and and you your you may lines participation.

Superior Drilling Products (SDPI) 6 Aug 182018 Q2 Earnings call transcript