Cactus, Inc. (NYSE:WHD) Q4 2023 Earnings Conference Call February 29, 2024 10:00 AM ET

Company Participants

Alan Boyd - Director, Corporate Development & Investor Relations

Scott Bender - Chairman & Chief Executive Officer

Al Keifer - Interim Chief Financial Officer

Steve Tadlock - Chief Executive Officer, FlexSteel

Conference Call Participants

Luke Lemoine - Piper Sandler

Arun Jayaram - JPMorgan

Kurt Hallead - Benchmark

Stephen Gengaro - Stifel

Scott Gruber - Citigroup

Operator

Thank you for standing by, and welcome to Cactus, Inc. Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

And now, I'd like to introduce your host for today's program, Alan Boyd, Director of Corporate Development and Investor Relations. Please go ahead, sir.

Alan Boyd

Thank you, and good morning. We appreciate you joining us on today's call.

Our speakers will be Scott Bender, our Chairman and Chief Executive Officer; and Al Keifer, our Interim Chief Financial Officer. Also joining us today are Joel Bender, President; Steven Bender, Chief Operating Officer; Steve Tadlock, CEO of FlexSteel; and Will Marsh, our General Counsel.

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'll turn the call over to Scott.

Scott Bender

Thanks, Alan, and good morning to everyone.

We closed out the final quarter of 2023 with strong margin performance in both segments. Free cash flow was substantial and with the debt raised to finance the FlexSteel acquisition repaid in Q3, we increased our cash balance by over $70 million in Q4.

For the full year 2023, both businesses set records for revenue and adjusted EBITDA despite the decline in US land activity over the course of the year. Our company remains well positioned in the market as a provider of highly engineered, differentiated products to premium customers, and our strong financial performance reflects this.