Frank's International N.V. (FI) Q4 2018 Earnings Conference Call Transcript

FI earnings call for the period ending December 31, 2018.

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Frank's International N.V.  (NYSE:FI)
Q4 2018 Earnings Conference Call
Feb. 25, 2019, 11:00 a.m. ET

Contents:

Prepared Remarks:

Operator

Hello and welcome to the Q4 2018 Frank's International NV Earnings Conference Call. My name is Cynara and I'll be the operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) Please note that this conference is being recorded. I will now turn the call over to Mr.Blake Holcomb. Blake, you may begin.

Blake Holcomb -- Director of Investor Relations and Communications

Thanks, Cynara. Good morning, everyone, and welcome to the Frank's International Conference Call to discuss the Fourth Quarter and Full Year 2018 Earnings. I'm Blake Holcomb, Director of Finance and Investor Relations. For today's call, we have Mike Kearney, Chairman, President and Chief Executive Officer; and Kyle McClure, Senior Vice President and Chief Financial Officer as speakers on today's call,.

Joining Michael and Kyle for the Q&A portion of today's call will be Steve Russell, President of Tubular Running Services; and Scott McCurdy, President of Blackhawk Specialty Tools. A presentation has been posted on our website that we will refer to throughout this call. If you'd like to view this presentation, please go to the Investors section of our website at franksinternational.com.

Before we begin commenting on our fourth quarter and full year 2018 results, there are a few legal items that we'd like to cover beginning on slide two. First remarks and answers to questions by company representatives on today's call may refer to or contain forward-looking statements. Such remarks or answers are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such statements speak only as of today's date or as different as of the date specified. The Company assumes no responsibility to update any forward-looking statements as of any future date.

The Company has included in its SEC filing cautionary language identifying important factors that could cause actual results to be materially different from those set forth in any forward-looking statements. A more complete discussion of these risks is included in the Company's SEC filings, which may be accessed on the SEC's website or on our website at franksinternational.com. There, you may also access both the both fourth quarter and full year 2018 earnings press release and a replay of this call.

Frank's International uses its website as a channel for distribution of material company information. Such information is routinely posted and accessible in the Investor Relations section. Please note that any non-GAAP financial measures discussed during this call are defined and reconciled to the most directly comparable GAAP financial measure in the fourth quarter and full year 2018 earnings release, which was issued by the Company earlier today.

I will now turn the call over to Mike.

Michael C. Kearney -- Chief Executive Officer

Thank you, Blake. We appreciate everyone joining us today for the call. Beginning on slide four, I will provide a brief summary of our full year results and then go over some of the highlights of the fourth quarter.

Entering 2018, we had the belief we would see some improvement in industry fundamentals over the course of the year. To position Frank's for the anticipated recovery, we placed considerable focus on prioritizing our capital spending and engineering efforts toward business opportunities, which will give us further competitive advantages.

Our targeted initiatives in 2018 drove higher profitability and led to significant year-over-year financial improvement, this included total revenues of $522.5 million, a 15% increase that was supported by growth across all of our business segments. Adjusted EBITDA improved more than 475% versus 2017 to $33.2 million due to a combination of improved pricing, international market share gains and cost control.

Our adjusted EBITDA margin improved to 6.4%, which was more than 500 basis points higher than the prior year. Driving this strong increase was an approximate 40% margin on incremental revenue generated over the year. I want to thank all of Frank's employees for their dedication, hard work and diligence in our efforts to drive further progress in our operational and financial performance.

Frank's has been managed conservatively from a financial perspective over a long period of time. The absence of any debt or financial leverage in our investment in state-of-the-art equipment serves us well in today's market. Operators need to know that the company that call for critical services has the financial capacity to deliver the best equipment and qualified people at the well side. Operators value our strong financial position and this has contributed to our increases in market share. We will continue to leverage our financial flexibility in support of our customers' long-term needs.

Turning to slide five. During the fourth quarter, we continued to see strong demand for our higher margin service offerings. We also benefited from increased customer activity in multiple international regions. Finally, we saw growth in our US operations especially in the Gulf of Mexico, where we enjoyed a full quarter benefit from recently captured additional market share. The result was fourth quarter revenues of $145.9 million, which was 13% higher than the third quarter and a 23% increase over the fourth quarter of 2017.

In addition, our fourth quarter adjusted EBITDA increased 10% sequentially to $12.8 million, which was the highest level we've seen since the first quarter of 2016. International Services posted a 13% increase in revenue from the third quarter, primarily due to the ramp up of work in Africa, Middle East, and Europe. We also saw increased sequential margins due to a mix of higher margin work in the Middle East and Africa. These regions will continue to contribute to our 2019 anticipated growth in service revenue. Revenue for our US Services segment increased 12% from the third quarter with the majority of growth associated with additional market share capture in the Gulf of Mexico, the US onshore business also saw

top line growth during the period.

Our Blackhawk segment was primarily impacted by reduced well intervention work in the Gulf of Mexico, driven by a relatively calm storm season. Collectively, Blackhawk saw a 5% decline in sequential revenue. Finally, our Tubular Sales segment recorded its highest level of quarterly revenue for the year. Contributing to the 50% increase from the third quarter was a significant order from a long time customer of Frank's. As a reminder, this line of business has relatively few large orders in any given quarter, which makes sequential changes somewhat lumpy.

Looking at slide six. As we move into 2019, we believe we are in a solid position to continue to grow our overall business beyond the levels of 2018 . During 2018, we put significant effort into further improving our internal processes and driving out cost to more fully leverage the full earnings power of our business. As part of our strategic initiatives, we streamlined our global footprint to ensure our future efforts are laser-focused on driving improved returns. While it's always hard to pass on business, we have the discipline to only quote projects that meet our profitability targets. Oil prices since the beginning of the year have stabilized, we remain optimistic of the sustained but gradual overall market recovery.

In particular, we expect to see strength in our offshore business and are well positioned for 2019. In contrast, the US land market reacts much more quickly than the offshore market. Most analysts predict a drop in the US land rig count and activity in the first half of 2019 and then a bounce back. Regardless of the trajectory in US land, our mission is to keep a careful eye on our costs, so we can continue to increase profitability.

Given that backdrop, I will now discuss our outlook for the business in a bit more detail. Frank's remains the go-to provider for tubular running services in complex wells and challenging environments. This differentiated position allowed us to gain significant market share last year and for 2019, we look to continue to grow market share through our best-in-class solutions. For example, we have seen rapid market acceptance and increasing customer demand for our VERSAFLO tool, which safely accelerates casing fill up in circulation operations. TRS also debuted in its US onshore operations a top drive mechanical casing running tool that enhances rig floor safety and efficiency.

For 2019, TRS plans to further grow its business in international and deepwater markets. We will continue to focus on rig automation and removal of personnel from well center. As we have discussed in the past, during 2018 the key priority for Blackhawk was international expansion. As a result of its focused efforts, Blackhawk more than doubled its sales into international markets during 2018 doing jobs in 15 countries. Last year, Blackhawk also made significant progress in certifying tools to meet the most stringent customer and market requirements. This will allow us to continue our expansion into additional markets during 2019.

Blackhawk plans on materially increasing its international revenue in 2019, as well as grow its US onshore business through further expansion of its products and services. We also look forward to growth in our tubular business in 2019. Customers rely on our unique ability to develop, engineer and implement technology-based solutions that work in harsh environments, ensure well integrity and reduce the number of personnel on-site. So with that, I'll now turn the call over to Kyle to provide additional details on the financial and operational results during the quarter.

Kyle?

Kyle McClure -- Senior Vice President and Chief Financial Officer

As Mike already touched on a number of the segment results, I'll move through this portion of the materials quickly so we can get to the 2019 outlook and Q&A. Let's go ahead and jump into segment results on slide seven, starting first with our International Services segment. International Services revenue in the fourth quarter was up roughly $7 million or 13% sequentially to approximately $61 million. The growth can be attributed to double-digit increases in revenues in Europe, the Middle East and Africa as we saw activity levels closer to the Q2 timeframe as new work recently won in Europe and Africa kicked off in addition to some nice gains in the Middle East.

Adjusted EBITDA for the International Services segment in the fourth quarter was $11.6 million, up roughly $4 million from the third quarter as we experienced incremental margins of 54%. As mentioned during the Q3 call, we continue to see the international offshore market as a real bright spot heading into 2019 and nothing has changed that thinking in the past few months. We feel like we are extremely well positioned to take advantage of a nice step-up from 2018 levels in this segment.

Turning to US Services on slide eight. Fourth quarter revenue increased 12% to approximately $43 million. Fourth quarter US offshore revenue was up roughly 19% sequentially. The growth rate was due to an entire quarter's worth of revenues from recent market share gains. The US Onshore Services business also grew revenues during the quarter, rising a little more than 5% due to sustained drilling activity in certain basins during the quarter. This marks the 10th consecutive quarter the US Onshore business saw growth. Adjusted EBITDA for the US Services segment in the fourth quarter was a loss of $1.6 million, which resulted in a decline of nearly $800,000 sequentially. This can largely be attributed to two items first, increased repair and maintenance expenses as well as increased labor costs in this segment. As we have seen nice margin improvements in this segment recently we've had step up in certain areas to support continued growth.

Secondly, we experienced a few discrete expenses related to some corporate and legal entity restructuring projects that completed in the quarter, which we will not see again. As a reminder, this segment houses a significant portion of our overhead expense associated with running the US and International Services segments as well as our corporate expenses reside here. Turning to slide nine, we'll take a look at our Blackhawk segment results. Total revenue from Blackhawk was $22.7 million, down roughly $1.2 million from Q3.

Sequential revenue was lower primarily due to reduced well intervention activity in the Gulf of Mexico. Adjusted EBITDA in this segment was $2.3 million in the quarter or 10.1% of revenue, down approximately $2 million versus Q3. This is largely due to a decreased contribution from offshore well intervention and some end-of-year inventory adjustments. Wrapping up the segments with Tubular Sales on slide 10, revenue in the third quarter was $19.3 million, up almost 50% sequentially, a large number of pipe orders shipped during the quarter. Adjusted EBITDA for the Tubular Sales segment in the third quarter was $500,000, up from $300,000 in the third quarter due to higher product sales offset somewhat by our TRS manufacturing cost, which also sits in the segment, which was up slightly during the quarter due to a few year-end inventory adjustments.

Turning to slide 11, we summarize the quarterly financial results. On a companywide basis, revenues were up 13% sequentially with strong growth in the TRS business, significant step up in the tubular segment with some large order shipping during the quarter and the Blackhawk segment seeing a slight drop due to the end of storm season. Adjusted EBITDA was up $1.2 million sequentially as we had some end-of-year inventory adjustments, few one-time corporate expenses and generally higher payrolls in the US Services segment as the business is staffing up ahead of 2019 in certain pockets. To close out on my comments and we provided color for 2019 on the last call, nothing has changed our thinking even with the commodity price volatility in Q4.

So I will reiterate; on the revenue side, we'd expect to see a minimum of 15% growth across the business, as we expect to see strong growth driven by the International Services segment, with growth expected from all regions in the range of 10% to 20%. The Blackhawk segment will continue to see significant growth internationally and in the US land market as they commercialize and introduce new products at previously underrepresented basis. The Tubular segment as well should see robust growth as quoting activity has increased and customer sentiment has improved. We expect to see the US Services segment up but not to the extent as the other businesses, as we expect US land to be up slightly and don't expect to see the Gulf of Mexico materially improve versus 2018.

From a profitability perspective, we would expect to see incremental margins on the revenue growth to be in the 30% to 50% range depending on the mix. The timing of growth will be gradual throughout the year, like the Q1 '19 to be down slightly from Q4 '18 and then working up from there.

Obviously, we're not a backlog business and this is all subject to our customers and their plans on materializing, specifically on the international projects this(ph) side of the house. But we feel we are in excellent position to take advantage of what we see as a better international and offshore market in 2019. With that, we will open the call to Q&A.


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Questions and Answers:

Operator

Thank you. (Operator Instructions). Our first question comes from Mike Urban from Seaport Global. Please go ahead, your line is open.

Michael William Urban -- Seaport Global Securities LLC -- Analyst

Thanks, good morning. From your guidance, it sounds like you continue to have a pretty optimistic view of the year. So I think you may have answered my question but we've had some folks dial back their expert expectations for the international and offshore markets based on the commodity volatility that we saw in the fourth quarter and then not to put words in your mouth, but it sounds like you guys aren't seeing that and then projects are continuing to move forward as previously expected?

Michael C. Kearney -- Chief Executive Officer

No, that's exactly right. I've got Steve here, I'll let him comment, but I think overall, it speaks to frankly the quality of service, the stability and good long-term customer relationships. Steve, you want to provide any additional color on that ?

Steven J. Russell -- resident of Tubular Running Services

Yeah, I think most of our contracts are quite long-term. So we've got a good contractual position going into 2019 and, obviously, planning for these big international project stretch out there. So we have line of sight certainly into the first half of what's coming at us. So, yeah, we're still fairly optimistic on 2019 going forward.

Michael C. Kearney -- Chief Executive Officer

I'd also add that we got the Blackhawk business, which is going to be rapidly growing underrepresented countries currently internationally. So they are expected to see some pretty robust growth in 2019, so that's another piece of the pie here as we think about the international business.

Michael William Urban -- Seaport Global Securities LLC -- Analyst

Great. And just kind of following up on that last point on Blackhawk, where do you stand on in terms of the international rollout? And then if you could kind of quantify what the growth -- if you can give us some color on the kind of growth last year and maybe what you expect this year internationally from Blackhawk?

Scott A. McCurdy -- resident of Blackhawk Specialty Tools

Sure. This is Scott McCurdy. So I guess the second part of your question. Last year, we saw nice growth, we more than doubled the international piece of the business, increased it over the course of the year. We finished out with about 19% of revenue coming from international, but actually in the fourth quarter, it was about 24%. So, saw a nice trend up over the course of the year and I would say set a good foundation for some pretty substantial growth in 2019 as as well, as Kyle mentioned, that's a pretty significant part of our growth expectation for the year.

Michael William Urban -- Seaport Global Securities LLC -- Analyst

Got you. That's all from me. Thank you.

Operator

Thank you. Our next question comes from Ian MacPherson from Simmons. Please go ahead, your line is open.

Ian MacPherson -- Simmons -- Analyst

Thanks. Good morning, guys. Hey, Mike, obviously very favorable outlook for this year. And you've got a good growth outlook without the Gulf of Mexico. And I guess, we've all been a little bit surprised by the the lack of Gulf of Mexico participation in the offshore recovery and I wanted to get your perspective on what will be required in order for the Gulf of Mexico to catch up with what you're seeing in terms of revitalized international offshore activity?

Michael C. Kearney -- Chief Executive Officer

Yeah, that's a good one. I think you're asking the wrong person, you need ask some of big operators, but I think some of the major developments have come to sort of a production phase, we are seeing projections that the rigs in the Gulf will continue to soften. So it's a challenge. I mean, we can't direct or dictate the operators to do what they're going to do. So we've got to sit back and try to get the best market share and the best profitability that we can.

So I don't know if Steve or any of the other folks have a comment to add to that?

Steven J. Russell -- resident of Tubular Running Services

Yeah, I think you've got to look outside just the Gulf because you've got opening markets, obviously, in deepwater Mexico side and down in Guyana, French Guiana, Suriname and because of that, you've got operators looking in that whole area removing rigs around. So where you don't necessarily see a huge amount of excitement in the Gulf, you're seeing, obviously, quite a bit of excitement in those other areas.

Ian MacPherson -- Simmons -- Analyst

Okay, got it. And then I know you've had a favorable market share story in the Gulf of Mexico, and maybe it's not as easy for us to understand exactly how you're outgrowing the market internationally. But we understand it's a combination of market share, but also really penetrating underrepresented geographies and market segments as well.

Would you say that you have been or you expect to continue to take share in the international deepwater market in 2019 as well?

Steven J. Russell -- resident of Tubular Running Services

Yeah, I think, of course, we'll look at projects on a case-by-case basis. We have line of sight to some projects coming on in Q2 that will give us a little bit more share. We don't want detriment margins by going out there and grabbing share, but we do see us picking up a little bit more share year-on-year, primarily because of the market share we've already captured and that, obviously, carrying into projects this year.

Ian MacPherson -- Simmons -- Analyst

Understood. Thank you very much.

Michael C. Kearney -- Chief Executive Officer

Thank you.

Operator

Thank you. (Operator Instructions) Our next question comes from Kurt Hallead from RBC. Please go ahead. Your line is open.

Kurt Kevin Hallead -- RBC Capital Markets -- Analyst

Hi, good morning.

Michael C. Kearney -- Chief Executive Officer

Good morning, Kurt.

Kurt Kevin Hallead -- RBC Capital Markets -- Analyst

So appreciate the color and everything to this point. I was kind of curious, when you look at the revenue growth prospects for the full year, I think you've given some kind of general sense on how you think things would shake out from a segment standpoint, but to make sure I'm hearing things correctly and not misinterpreting. When you look at your four business segments, I was wondering if you can kind of rank order the relative growth you would expect, revenue growth you would expect for the full year?

Kyle McClure -- Senior Vice President and Chief Financial Officer

Yeah. This is Kyle. I think you take a look at our International Services segment as having the sort of overall most dollar revenue growth followed by Blackhawk coming in second and then our Tubular business then followed by US Services in terms of ordering.

Kurt Kevin Hallead -- RBC Capital Markets -- Analyst

And then that should probably rank -- that should probably follow as well from a percentage standpoint as well. Is that correct?

Kyle McClure -- Senior Vice President and Chief Financial Officer

That's correct.

Kurt Kevin Hallead -- RBC Capital Markets -- Analyst

Okay, great. And then in terms of the profitability improvement for the year and in the past I know you've kind of thrown out kind of a wish or desire to potentially get your segment EBITDA up to $80 million or approaching $80 million. Can you give us a sense on how you kind of feel about that potential target for this year?

Kyle McClure -- Senior Vice President and Chief Financial Officer

I think to get to $80 million this year, that's going to be a bit of a stretch. I think it's going to have to come through a combination of some disciplined pricing, operational efficiencies and continued cost controls. I think as we look at our sort of outlook today. I think getting to $80 million is going to require sort of everything hitting all cylinders, Blackhawk getting internationalized, International Services continuing to hit their numbers as well as we got to continue to focus on cost lines here, but I think $80 million would be at the high end of the range that I would expect this year.

Michael C. Kearney -- Chief Executive Officer

Yeah, Kurt. This is Mike. So initially, we set out, if you go back at least three months, kind of, a $60 million to $80 million EBITDA target and we've had some reversals in US land, Gulf of Mexico. Does not look very pretty on the US side at least. So we're thinking we'll -- I know you're up at the top end of that range, it's going to be tough to get there as Kyle mentioned.

So if we can get even into the low end of that range, we're going to be doubling our EBITDA. So in a market that a lot of people say is going to be pretty flat offshore, we're not ashamed if we can get into the lower half of that $20 million range.

Kurt Kevin Hallead -- RBC Capital Markets -- Analyst

Got it. Hey, that's awesome. Appreciate that color. Thanks.

Michael C. Kearney -- Chief Executive Officer

Sure.

Operator

Thank you. (Operator Instructions) Our next question comes from Byron Pope from Tudor Pickering Holt. Please go ahead, your line is open.

Byron Keith Pope -- Tudor Pickering, Holt & Co -- Analyst

Good morning, guys.

Michael C. Kearney -- Chief Executive Officer

Good morning, Byron.

Byron Keith Pope -- Tudor Pickering, Holt & Co -- Analyst

I have just have one question and it relates to International Services and I think for Frank's overall, if I recall correctly, I think the Europe, Middle East, Africa region has historically been your second largest region, if you want to call the US -- behind just the US, if you want to call that a region. And so when you describe the robust International Services top line growth that you guys have untapped, could you just give some incremental color just on which of those markets within the Europe, Middle East, Africa region are going to drive the growth? It sounds like you guys had contract wins in both Europe and Africa that will help, but just more color on the drivers for that International Services growth this year would be helpful?

Steven J. Russell -- resident of Tubular Running Services

Yeah. Thanks, Byron, this is Steve Russell. I think on the European side, we've picked up some market in Norway here. We picked that up in Q4, which actually drove some of that incremental you saw in Q4. Those are long-term contracts, so those will carry through for all of 2019. In Africa, obviously, the outlook in Africa has been a bit spotty on rig count increases, but we did pick up a nice contract in Angola, which again will carry through till the end of the year.

The Middle East, the story is around the UAE and Saudi Arabia, where effectively there's market share allocations that get given out on a quarterly basis. So that can come and go around the quarterly viewpoint.

Byron Keith Pope -- Tudor Pickering, Holt & Co -- Analyst

It's really helpful. Appreciate it.

Steven J. Russell -- resident of Tubular Running Services

Thank you.

Operator

Thank you. Our next question comes from Eduardo Royes from Jefferies. Please go ahead, your line is open.

Eduardo Royes -- Jefferies LLC -- Analyst

Thank you. Hey, guys, good morning.

Michael C. Kearney -- Chief Executive Officer

Good morning

Eduardo Royes -- Jefferies LLC -- Analyst

My question is around Blackhawk, obviously, with the big growth and the expansion margins took a little bit of a hit and I think in the second half of the year, it's been particularly very lumpy. So just any perspective you can offer as you get some more scale internationally, how we can maybe think about the Blackhawk margin trajectory for 2019 as a whole, especially because like I said, exiting '18 it's obviously tougher with some of the lumpiness there. Thanks.

Kyle McClure -- Senior Vice President and Chief Financial Officer

Yeah. This is Kyle. I'll address the first part of that question, I'll let Scott pick up the second half. We changed our internal methodology in terms of how we're allocating cost to that segment starting beginning of 2018. So Blackhawk picked up an additional amount of cost that's sort of burdening this year that was not burdening them last year. We have that in our disclosures, of course. And I'm going to let Scott talk a little bit about '19 and what He expects for profitability there.

Scott A. McCurdy -- resident of Blackhawk Specialty Tools

Sure. So to Kyle's point, there has been some increase in cost, but I would say too, if you just look at the fourth quarter in particular, you did have a few jobs slide internationally. We did have some expected weakness in the Gulf and some unexpected shift in some product sales, but the biggest thing is, we've also been making some investments in our infrastructure around engineering, new product development and testing and adding some international expertise. So all that will start paying dividends in 2019. I think we expect pretty much growth every quarter for international and US land over the course of the year and then the normal volatility in the Gulf based on hurricane season and things like that. But as those volumes increase, as we see those investments we've made covered, the incremental margin should be good and we should see those margins increase over the course of the year.

Eduardo Royes -- Jefferies LLC -- Analyst

Great, thanks. And my follow-up, just curious US land, obviously, we're going to see some softness in activity most likely, I think, most people thinking it's maybe a slightly down year. I guess as it relates to you guys, is that not enough weakness to really think that we may see much pricing pressure?

I think you guys have still been seeing pricing increases flow through. So just curious, if you're at all concerned about some of the pricing dynamics or the competitive dynamics in US land? If we're talking about rig count that's down or spending down 5%-10% in US Onshore and that's it. Thanks.

Kyle McClure -- Senior Vice President and Chief Financial Officer

This is Kyle. Let me split that into two pieces. We have two land businesses, one inside of Blackhawk and one inside of US Services business. I think our TRS Services business, we're likely to see sort of flattish year-on-year based upon the activity levels we're seeing out there. I'll flip this to Scott, and he'll talk a little about what their plans on in terms of where they have been participating and penetrating new markets they haven't historically been in.

Scott A. McCurdy -- resident of Blackhawk Specialty Tools

Thanks, Kyle. Yes, I would say it's very difficult to predict right now for every customer that's talking about dropping rigs, there's others that are picking up rigs. But I would say overall for us as far as market position, we're still fairly underrepresented in US land, we're unrepresented for sure in the Permian area, Oklahoma and so just growing into those almost regardless of market as long as it's still reasonably solid provides a great opportunity for us, we've had more customer interest in rotating casing while cementing, which is a great driver for us.

We're in a unique position to rollout new products as well as consolidate third-party products and provide the service at the well site. So that the customers don't have to have as many different company service personnel. So we consolidate a lot of things, which is a unique advantage that we have. So there's number of factors that make us comfortable that even if the rig count does fall some, we've got a pretty nice growth opportunity and some of that is just run rate from growth in 2018 as well.

Eduardo Royes -- Jefferies LLC -- Analyst

Got it. Great. Thank you very much, I'll turn it over.

Operator

Thank you. We have no further questions at this time, I will now turn the call back to Mike Kearney for closing remarks.

Michael C. Kearney -- Chief Executive Officer

Yes, thanks. I'd like to thank everybody for their interest in Frank's. To conclude, we are pleased with our fourth quarter and full year results for 2018 and remain optimistic about our outlook for 2019. Our targeted efforts to bolster the operational and financial performance of the Company places us on a strong footing for sustained growth and profitability. We look forward to keeping everyone apprised of our progress as we move through the year.

Again, thanks for your time today.

Operator

Thank you, ladies and gentlemen, this concludes today's conference. Thank you for participating. You may now disconnect.

Duration: 32 minutes

Call participants:

Blake Holcomb -- Director of Investor Relations and Communications

Michael C. Kearney -- Chief Executive Officer

Kyle McClure -- Senior Vice President and Chief Financial Officer

Michael William Urban -- Seaport Global Securities LLC -- Analyst

Steven J. Russell -- resident of Tubular Running Services

Scott A. McCurdy -- resident of Blackhawk Specialty Tools

Ian MacPherson -- Simmons -- Analyst

Kurt Kevin Hallead -- RBC Capital Markets -- Analyst

Byron Keith Pope -- Tudor Pickering, Holt & Co -- Analyst

Eduardo Royes -- Jefferies LLC -- Analyst

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