Select Energy Services, Inc. (NYSE:WTTR) Q1 2019 Earnings Conference Call Transcript
May 08, 2015 • 10:00 am ET
Greetings and welcome to the Select Energy Services First Quarter Earnings Conference Call. (Operator Instruction) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Chris George. Vice President, Investor Relations and Treasurer. Thank you. Mr. Chris George, You may begin.
Thank you, operator, and good morning, everyone. We appreciate you joining us for the Select Energy Services conference call and webcast to review our 2019 first quarter results. With me today are John Schmitz, our Executive Chairman; Holli Ladhani, our President and Chief Executive Officer; and Nick Swyka, Senior Vice President and Chief Financial Officer. Before I turn the call over, I have a few housekeeping items to cover. A replay of today's call will be available by webcast and accessible from our website at selectenergyservices.com. There will also be a recorded replay available until May 22nd, 2019. The access information for this replay was also included in yesterday's earnings release. Please note that the information reported on this call speaks only as of today, May 8, 2019 and therefore time sensitive information may no longer be accurate as of the time of the replay or transcript reading.
In addition, the comments made by management during this conference call may contain forward-looking statements within the meaning of the United States Federal Securities Laws. These forward-looking statements reflect the current views of Select's management. However, various risks, uncertainties and contingencies could cause our actual results, performance or achievements to differ materially from those expressed in the statements made by management.
The listener is encouraged to read our annual report on Form 10-K for the year ended December 31st, 2018, our subsequent quarterly report on Form 10-Q and our current reports on Form 8-K to understand those risks, uncertainties and contingencies. Also please refer to our first quarter earnings announcement released yesterday for reconciliations of non-GAAP financial measures.
And now, I'd like to turn the call over to our President and CEO, Holli Ladhani.
Holli C. Ladhani
Thanks Chris, and good morning, everyone. We appreciate you joining us today. It's been a solid start to the year with oil prices improving back to the 60s, a price range that's very supportive of our customers' capital programs. As such, we continue to be constructive on 2019 and beyond for US shale development. And while capital discipline may restrain our customers from spending beyond their initial capital budgets, we're not expecting a repeat of the budget exhaustion industry dealt with at the end of 2018.
Looking at the first quarter, market activities progressed as we expected. The first quarter had the inverse trajectory of Q4, with activity picking up in January off of December lows and increasing month over month through the quarter. After considering the sale of certain non-core operations, our revenues were up slightly in the first quarter.
However, gross profit associated with our core businesses was up meaningfully on the back of a 250 basis point increase in margins. Looking forward, we believe we're uniquely positioned to