v3.25.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 17 – SEGMENT INFORMATION

Prior to the acquisition of Titan, we operated as a single operating segment which reflected how our business was managed. Upon completion of the acquisition, the Company split into two operating segments based on geography, Western Hemisphere and Eastern Hemisphere. Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the CODM in deciding resource allocation and assessing performance. The Company’s Chief Executive Officer serves as the CODM. The Company’s CODM reviews financial information disaggregated by hemisphere for the purposes of making operational decisions, allocating resources, and evaluating financial performance.

The Company’s two operating segments derives revenues from customers by providing oilfield equipment and services to operators in wellbore construction and casing installation. The CODM assesses performance for each segment individually and decides how to allocate resources by using Segment EBITDA, which is defined as net income (loss); excluding interest income; interest expense; other income (expense), net; income tax benefit (expense); depreciation and amortization; and unallocated corporate general and administrative expenses, including stock-option expense and monitoring fees. Additionally, the Company’s CODM total segment assets and capital expenditures by segment regularly in making operational decisions. The CODM uses these metrics in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis to forecast future performance, adjust the budget, and make decisions about the allocation of operating and capital resources to the segment.

Financial information by segment for the three months ended March 31, 2025 and 2024 is summarized below:

 

 

For The Three Months Ended March 31, 2025

 

 

 

Western Hemisphere

 

 

Eastern Hemisphere

 

 

Total

 

Tool Rental

 

 

32,662

 

 

 

4,525

 

 

 

37,186

 

Product Sales

 

 

8,534

 

 

 

527

 

 

 

9,061

 

Total Revenue

 

 

41,196

 

 

 

5,052

 

 

 

46,248

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

Elimination of intersegment revenue

 

 

 

 

 

 

 

 

(3,368

)

Total Consolidated Revenue

 

 

 

 

 

 

 

 

42,880

 

Less:(1)

 

 

 

 

 

 

 

 

 

Cost of Tool Rental

 

 

8,390

 

 

 

1,951

 

 

 

10,341

 

Cost of Product Sales

 

 

3,750

 

 

 

522

 

 

 

4,273

 

Total Cost of Sales

 

 

12,140

 

 

 

2,473

 

 

 

14,614

 

Reconciliation of cost of revenue

 

 

 

 

 

 

 

 

 

Elimination of intersegment cost of revenue

 

 

 

 

 

 

 

 

(3,368

)

Total consolidated cost of revenue

 

 

 

 

 

 

 

 

11,246

 

Selling, general, administrative expenses

 

 

15,479

 

 

 

2,767

 

 

 

18,246

 

Segment EBITDA

 

 

13,576

 

 

 

(188

)

 

 

13,388

 

Reconciliation of segment profit

 

 

 

 

 

 

 

 

 

Corporate expenses(2)

 

 

 

 

 

 

 

 

2,634

 

Depreciation and amortization

 

 

 

 

 

 

 

 

6,722

 

Stock Option Expense

 

 

 

 

 

 

 

 

541

 

Monitoring fees

 

 

 

 

 

 

 

 

188

 

Total operating income

 

 

 

 

 

 

 

 

3,303

 

Transaction expenses

 

 

 

 

 

 

 

 

732

 

Goodwill impairment

 

 

 

 

 

 

 

 

1,901

 

Other expenses

 

 

 

 

 

 

 

 

2,498

 

Consolidated income before taxes

 

 

 

 

 

 

 

 

(1,828

)

 

 

 

For The Three Months Ended March 31, 2024

 

 

 

Western Hemisphere

 

 

Eastern Hemisphere

 

 

Total

 

Tool Rental

 

 

32,102

 

 

 

424

 

 

 

32,526

 

Product Sales

 

 

6,205

 

 

 

823

 

 

 

7,027

 

Total Revenue

 

 

38,307

 

 

 

1,247

 

 

 

39,554

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

Elimination of intersegment revenue

 

 

 

 

 

 

 

 

(2,580

)

Total Consolidated Revenue

 

 

 

 

 

 

 

 

36,974

 

Less:(1)

 

 

 

 

 

 

 

 

 

Cost of Tool Rental

 

 

9,524

 

 

 

56

 

 

 

9,580

 

Cost of Product Sales

 

 

1,115

 

 

 

421

 

 

 

1,536

 

Total Cost of Sales

 

 

10,640

 

 

 

477

 

 

 

11,117

 

Reconciliation of cost of revenue

 

 

 

 

 

 

 

 

 

Elimination of intersegment cost of revenue

 

 

 

 

 

 

 

 

(2,580

)

Total consolidated cost of revenue

 

 

 

 

 

 

 

 

8,537

 

Selling, general, administrative expenses

 

 

14,153

 

 

 

351

 

 

 

14,504

 

Segment profit

 

 

13,514

 

 

 

419

 

 

 

13,932

 

Reconciliation of segment profit

 

 

 

 

 

 

 

 

 

Corporate expenses(2)

 

 

 

 

 

 

 

 

3,041

 

Depreciation and amortization

 

 

 

 

 

 

 

 

5,365

 

Stock Option Expense

 

 

 

 

 

 

 

 

208

 

Monitoring fees

 

 

 

 

 

 

 

 

188

 

Total operating income

 

 

 

 

 

 

 

 

5,130

 

Transaction expenses

 

 

 

 

 

 

 

 

890

 

Other expenses

 

 

 

 

 

 

 

 

178

 

Consolidated income before taxes

 

 

 

 

 

 

 

 

4,063

 

 

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker

 

(2) Comprised primarily of expenses not allocated to our general and administrative segments.

 

Additional financial information by operating segment for the three months ended March 31, 2025 and 2024 is summarized below:

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Capital Expenditures

 

 

 

 

 

 

Western Hemisphere

 

$

4,583

 

 

$

6,228

 

Eastern Hemisphere

 

 

460

 

 

 

—

 

Total capital expenditures

 

 

5,043

 

 

 

6,228

 

Segment Assets(2):

 

 

 

 

 

 

Western Hemisphere

 

$

159,598

 

 

$

135,835

 

Eastern Hemisphere

 

 

65,189

 

 

 

21,237

 

Total segment assets

 

 

224,787

 

 

 

157,072

 

Corporate and other(1)

 

 

8,382

 

 

 

9,880

 

Total assets

 

$

233,169

 

 

$

166,952

 

 

(1) Corporate assets consist of cash, related party note receivables, and deferred financing costs

(2) The goodwill allocated to the four reporting units is included within their respective segment asset totals. The goodwill amount included in segment assets is net of impairment losses of $0.9 million and $1.0 million at the Western Hemisphere and Eastern Hemisphere segments, respectively. Please refer to Note 7 - Goodwill for further details.