Select Water Solutions, Inc. (WTTR) Earnings Call Transcript & Summary

Good morning and welcome to Select Energy Services, Inc. 2020 Annual Meeting of Stockholders. I would now like to introduce Select's Chairman of the Board, Mr. John Schmitz, who will be presiding over today's meeting. Mr. Schmitz, the floor is yours.

Thank you, and welcome, everyone. We appreciate you joining us today. I will act as Chairman of the meeting; and Adam Law, our Corporate Secretary, will act as secretary of the meeting. We are hosting our annual meeting virtually. We believe this allows us to be more inclusive and reach greater numbers of our stockholders for attending this meeting via the web portal. We will conduct the business portion of our meeting first. After the conclusion and adjournment of the formal business, we will answer submitted via the web port questions. Though we may not be able to answer every question, we will do our best to answer as many as possible. It is now shortly after 9:00 a.m. Central Time on May 8, 2020, and this meeting is officially called to order. First, I would like to introduce the members of Select's Board of Directors and other senior members of the management who are present either in person or remotely at today's meeting. From the Board of Directors, we have Holli Ladhani, David Baldwin, Richard Burnett, Robert Delaney; Adam Klein, Keith Rattie, David Trice, Douglas Wall and Director Nominee, Troy Thacker. Additionally, besides Mr. Law, we have, today from management, with us Holli Ladhani, Nick Swyka, Paul Pistono, Mitchell Shauf, Michael Skarke and Cody Ortowski. We are also joined today by Blake Messer and Ken Clay of Grant Thornton, our independent auditors. Mr. Messer and Mr. Clay will be available during the question-and-answer session after the formal business meeting to respond to appropriate questions. Finally, Select has appointed American Election Services to act as the inspector of election. Natalie Hairston from American Election Services is with us and is taking the oath of the inspector of election. We will now begin the formal business of the annual meeting and vote on the items presented in our 2020 proxy statement. After the polls are closed, the votes will be tabulated and preliminary voting results will be announced. During the question-and-answer session, only validated stockholders may ask questions, which must be submitted in the designated field in the web portal. [Operator Instructions] Please note that this meeting is being recorded. However, no 1 attending via the webcast is permitted to use any recording device. The Board of Directors picked March 12, 2020, as record date for the determining stockholders entitled to vote at this meeting. I have received an affidavit confirming the notice of the meeting and the notice of Internet available of our proxy statement and our 2019 annual report was mailed on or about March 27, 2020, to all stockholders as of the record date. The Affidavit will be incorporated into the minutes of the meeting. The stockholder list shows that as of the record date, there was a 104,541,957 shares of common stock outstanding and entitled to vote at this meeting. We are informed by the inspector of the election that they represent in person or by proxy at least majority of the voting power of all issued and outstanding shares entitled to vote as of the record date. Accordingly, a quorum is present for the purpose of transacting today's business. Now I will present the matters to be voted on, which are all described on our proxy statement. Please note that we will vote after all items have been presented. Proposal One is the election of the directors. As described in the proxy statement, John Schmitz, Holli Ladhani, David Baldwin, Richard Burnett, Robert Delaney, Keith Rattie, Troy Thacker and David Trice, and Doug Wall have been nominated to serve as the directors and each has chosen to stand for election until the 2021 Annual Meeting of Stockholders or until his or her successor is duly elected and qualified. Proposal 2 is the ratification of the selection by the Audit Committee of the Board of Grant Thornton LLP as our independent registered public accounting firm for the year ending December 31, 2020. Proposal 3 is the approval of the amendment of the Select Energy Service 2016 Equity Incentive Grant -- Plan to increase the number of shares of our Class A common stock that may be issued under our 2016 Equity Incentive Plan by 4 million shares. The time is 9:06, and I declare the polls now open. Any stockholder who has yet not voted or wishes to change their vote may do so by clicking on the Voting button on the web portal and following the instructions. Stockholders who have sent in the proxies or voted via the telephone or Internet and who do not want to change their vote do not need to take any further actions. Now that everyone has the opportunity to vote, I declare the polls for Select's 2020 Annual Meeting of Stockholders are now closed and at time 9:07. We have been informed by the inspector of election that the preliminary vote report shows that there are significant votes for the election of each of the nominees of directors. In addition, the ratification of the grant as -- Grant Thornton as our independent registered public accounting firm, and the amendment to the company's 2016 Equity Incentive Plan has also received significant votes and it's passed. The inspector of election will prepare a final report that will be included as part of our recording -- record of this meeting. We will be reporting the final vote results in Form 8-K to be filed with the Securities Exchange Commission within 4 business days of this meeting. We have no other business to conduct at this meeting, and the meeting is now adjourned. We will now proceed to our general question-and-answer portion of the meeting. The responses made by management may include forward-looking statements that involve risks and uncertainties. Actual results could differ materially. More information about potential factors that could affect the company's business and financial results are included in the company's filings with the Securities and Exchange Commission, including the company's quarterly report on Form 10-Q filed on May 6, 2020. We would like to open the floor for stockholders' questions that are being entered today on our web portal. Please note, we will only address questions that are germane to the meeting. There being no further questions, we would like to thank you for your support of Select and participating in our virtual annual meeting. We hope you share our excitement about Select and look forward to your participation again next year. Have a good day.

Ladies and gentlemen, this concludes your call. You may now disconnect.