Cactus, Inc. (NYSE:WHD) Q4 2022 Earnings Conference Call February 23, 2023 10:00 AM ET

Company Participants

John Fitzgerald - Director, Corporate Development and IR

Scott Bender - CEO

Steve Tadlock - CFO

Joel Bender - SVP and COO

Steven Bender – VP, Operations

Conference Call Participants

David Anderson - Barclays

Steve Gengaro - Stifel

David Smith - Pickering Energy Partners

Operator

Good day and thank you for standing by. Welcome to the Cactus Q4 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, John Fitzgerald, Director of Corporate Development and IR. Please go ahead.

John Fitzgerald

Thank you and good morning. We appreciate you joining us on today's call. Our speakers will be Scott Bender, our Chief Executive Officer; and Steve Tadlock, our Chief Financial Officer. Also joining us today are Joel Bender, Senior Vice President and Chief Operating Officer; Steven Bender, Vice President of Operations; and Will Marsh, our General Counsel and Vice President of Administration.

Please note that any comments we make on today's call regarding projections or expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control.

These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. Any forward-looking statements we make today are only as of today's date, and we undertake no obligation to publicly update or review any forward-looking statements.

In addition, during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. With that, I will turn the call over to Scott.

Scott Bender

Thanks, John, and good morning to everyone. During the fourth quarter, the company set records for both quarterly revenue and adjusted EBITDA. This was also our eighth consecutive quarter with adjusted EBITDA growth.

I was particularly pleased with the margin performance in each of our revenue categories. The fourth quarter is usually our weakest due to seasonal factors, but results were strong across the board and highlighted the company's best-in-class margin and return profile.

Some fourth quarter highlights include revenue increased 2% sequentially to a company record $188 million; adjusted EBITDA improved by 4% sequentially to a company record $66 million; adjusted EBITDA margins were 35%, up 90 basis points versus the third quarter. We paid a quarterly dividend of $0.11 per share, and we increased our cash balance to $345 million.