Welcome to the Q4 2019 Frank's International Earnings Conference Call. My name is Adriana and I'll be your operator for today's call. At this time, all participants are in listen-only mode. Later we'll conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. I will now like to turn the call over to Blake Holcomb. Blake, you may begin.

Good morning, and welcome to the Frank's International conference call to discuss the fourth quarter and full year 2019 earnings. I'm Blake Holcomb, Director of Finance and Investor Relations. Our speakers today as shown in Slide 2 of the earnings presentation are Mike Kearney, Chairman, President, and Chief Executive Officer; and Melissa Cougle, Senior Vice President and Chief Financial Officer. Joining Mike and Melissa for the Q&A portion of today's call will be Steve Russell, Senior Vice President of Operations, Nigel Lakey, Senior Vice President of Technology and Thad Scott, Senior Vice President of Marketing and Business Development. 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. On today's call, Mike will provide an overview of 2019 and update our profitability improvement project as well as the segment technology highlights. Melissa will then review the financial performance of the fourth quarter and give a brief review of our share repurchase program. Additionally, she'll give general guidance for the first quarter and full year 2020. We will close with a question-and-answer session. Before we begin commenting on the fourth quarter and full year 2019 results. There'll be a few legal items that we will like to cover beginning on Slide 3. First remarks and the answers to questions by company representatives on today 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 if 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 filings 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. 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 2019 earnings release which was issued by the company earlier today. I will now turn the call over to Mike.

Thank you, Blake. We appreciate everyone joining us today for the call. Beginning on Slide 4 I will discuss some of the highlights of 2019 our fourth quarter results wrapped up a solid year for Franks as we delivered double-digit top line growth and improved our adjusted EBITDA by more than 70% year-over-year despite a slowdown in the U.S. onshore market in the latter half of the year, we continued to expand our submitting equipment and drilling tools, offerings to new markets globally seeing revenues increased more than 30% for submitting equipment and more than 80% for our drilling tools compared to 2018 levels. This growth demonstrates the value proposition of these products and services to our international customers, and we expect this trend to continue as our current customers as well as prospective customers become familiar with the benefits of our technologically advanced solutions. On the [indiscernible] in 2019 we continue to secure new contracts and Tinder awards with our customers on a worldwide basis. The combination of these 2019 wins led to for the first time, Frank's becoming the global revenue market share leader for casing and Tubular Running Services. This is according to a well known independent third-party market research firm. We've always held that we are the high value, low risk provider of taking or running services and it's gratifying their customers agree by awarding us a significant share of their business. Additionally, we've secured several more new contracts, which are slated to start in the second quarter in Europe, Asia in West Africa. We also recently secured new significant multiyear contracts with major customers in the U.S and internationally for our submitting equipment and drilling tools, service lines. Due to the multiyear nature of these contracts, we will enjoy revenue growth in 2020 and beyond…

Thank you, Mike. In reviewing our financial results for the quarter, we generated $139 million of revenue, which was flat from the previous quarter and down 4% from the fourth quarter of 2018. During this quarter, we experienced our normal year-end seasonality decline, as well as continued softness in the U.S. onshore market. Additionally, a few of our larger international drilling programs idled at year-end. These declines were partially offset by improving product sales in the Tubular segments from third quarter lows. Our Q4 adjusted EBITDA total $14.7 million and was impacted by $1.3 million of additional customer bad debt reserves at year-end, half of which was attributable to one customer in the Asia-Pacific region, who went into liquidation abruptly during the quarter. To reiterate for the full year 2019 as shown on Slide 5, the company generated double-digit top line growth despite a significant slowdown in the U.S. onshore market. We also improved our EBITDA in this environment by over 70% in generated year-over-year incremental margin of 42%. We began generating positive free cash flow during the second quarter and generated $25 million of free cash flow during the second half of the year. As Mike indicated in his comments, we incurred significant impairments during the quarter. We drove deeply into our organization and structure through our profitability improvement measures and determined that the goodwill related to our Cementing Equipment segment was impaired, and that certain portions of our asset and project-based needed to be reevaluated and ultimately impaired as well. These impairments drove our net loss to $168 million for the quarter, excluding these irregular items, our adjusted net loss improved sequentially and year-over-year, totaling $13.1 million and we're looking forward to 2020 with a rational asset base, which we feel will position us for growth in the…

Thank you. [Operator Instruction] So we have no further questions. I'll turn the call back over to Mike Kearney for final comments.

Okay. Thanks Adrienne. To include our 2019 adjusted EBITDA was up more than 70% compared to 2018 following that very strong improvement. We believe 2020 adjusted EBITDA will once again exceed the prior year by over 70% and overall market that's growing in the single digits. The Frank's management team and entire employee base understand the importance of being cost conscious and generating free cash flow. Thanks for joining today's call and we look forward to further updates on future calls.

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. And you may now disconnect. End of Q&A: