Welcome to the Q1 2021 Frank's International N.V. Earnings Conference Call. My name is James, and I'll be your operator for today's call. [Operator Instructions] And I'd now like to turn the call over to Melissa Cougle. Melissa, you may begin.

Good morning, and welcome to the Frank's International conference call to discuss our first quarter 2021 earnings. Our speakers today, as shown on Slide 2 of the earnings presentation, are Mike Kearney, Chairman, President and Chief Executive Officer; and myself, Melissa Cougle, Senior Vice President and Chief Financial Officer. 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 corporate website at franksinternational.com. On today's call, Mike will provide an overview of our first quarter results, recent operational and technological achievements and an update on our merger with Expro Group. I will then review the financial performance for the first quarter. We will not be hosting a question-and-answer session on today's call, although we encourage our investors to please reach out for further discussion. Before we begin commenting on our first quarter results, there are a few legal items we would like to cover on Slides 2 and 3. First, remarks made by company representatives may refer to or contain forward-looking statements. Such remarks 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, and 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 our first quarter 2021 earnings release. I will now turn the call over to Mike.

Thank you, Melissa. We appreciate everyone joining us for the call today. Turning to Slide 5. We delivered solid first quarter results with adjusted EBITDA increasing 44% sequentially to $6.7 million. Total revenue was largely in line with the prior quarter and our previously disclosed expectations. Our profitability continues to improve from prior quarters attributable to our cost reduction activities undertaken in 2020 as well as improvement in our Tubular Running Services segment. From an operational perspective, we experienced higher customer activity levels in all of our international operating basins and accelerated improvement in our U.S. Land business. The improvement in our Tubular Running Services segment was principally driven by higher activity levels and, in particular, rigs returning to work in the North Sea and offshore West Africa. We were also aided by the full quarter impact of project start-ups in the Middle East and accelerated improvement in U.S. Land, with the U.S. Land rig count increasing another 25% in the first quarter. In our Tubular segment, revenue decreased 26% sequentially. This was largely due to strong tubular deliveries and higher drilling tool activity in the fourth quarter, making for a tough Q1 comparison. Additionally, some scheduled Q1 deliveries moved from the first quarter to later in the year based on shifting customer schedules. Although we experienced a pullback in our Tubular segment in the first quarter, we are forecasting improvements in both domestic and international tubular deliveries and drilling tool activity in the coming quarters. In our Cementing Equipment segment, revenue increased 9% sequentially due to accelerated improvement in U.S. Land and the execution of our international growth strategy. We were pleased to see new activity in our Asia Pacific region and the Caribbean during the first quarter. Before covering specific geography highlights, I would like to provide a…

Thank you, Mike. Referring to Slide 7, revenue decreased 1.6% sequentially, in line with our previously disclosed expectations. We experienced sequential improvement in both our Tubular Running Services and Cementing Equipment segments this quarter, and relatively lower performance in our Tubular segment as some of our pipe deliveries have been pulled forward into the fourth quarter of 2020. During the first quarter, the company delivered adjusted EBITDA of $6.7 million, increasing just over 44% sequentially. Of note, our first quarter adjusted EBITDA margin was 7%. This was an improvement from the pre-COVID first quarter of 2020, primarily due to our cost reduction activities, which demonstrate our continued commitment to managing our profitability. Additionally, the first quarter benefited from higher customer activity levels in almost all of our international operating basins, particularly those with higher operating margins as well as an accelerated improvement in our U.S. Land business that positively affected results in both our TRS and Cementing Equipment segments. Turning to Slide 8. Our Tubular Running Services segment's first quarter revenue totaled $66.3 million compared to $65 million in the prior quarter. Higher activity levels in most of our international operating regions drove the sequential improvement, which was largely offset by reduced activity levels in our North America offshore region due to customer rig changes during the quarter. Segment adjusted EBITDA totaled $8.1 million or 12% of revenue in the first quarter compared to $3.8 million or 6% of revenue in the prior quarter. The sequential increase in adjusted EBITDA was mostly driven by an increase in customer activity levels in some of our higher-margin operating basins. In our Tubular segment, as presented on Slide 9, first quarter revenue totaled $11.7 million compared to $15.9 million in the prior quarter. We have long mentioned the more volatile performance of this…

Thank you, Melissa. Before we close out today's call, I would like to reiterate a few key points. First, we are excited about our planned combination with Expro Group, which is expected to close by the end of the third quarter. The teams of both respective companies remain excited and dedicated to creating one of the strongest oilfield services companies in the industry, providing some of the most innovative solutions to our customers globally. Second, Frank's expects to experience material improvement in the second quarter as we maintain a strong line of sight on additional rig deployments and project start-ups in the second quarter as well as throughout the second half of 2021. Finally, we will continue to focus on operational execution, capital discipline and cost reduction efforts, which has enabled us to maintain one of the strongest balance sheets in the oilfield services space. This enviable position puts the new combined company on solid footing as it progresses through the integration process and positions itself for future growth and expansion. In closing, I would like to reiterate my continued thanks to all of our employees for their hard work and dedication to the Frank's organization. As we move closer to finalizing the merger with Expro Group, it will be the hard work and dedication of our employees that enable our organization to stay focused on providing the absolute best service quality and safety for our customers. We look forward to updating you on our progress in the near future as a combined entity. Many thanks to everyone on the call for your continued interest in Frank's. We hope you enjoy the rest of your day. Goodbye.

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect. End of Q&A: