With 2017 behind us and 2018 upon us, I want to take a minute to look back at a few things worth noting in 2017, our performance, and then forward to 2018, what we have to look forward to.
Let’s start with our performance in 2017 based on three key areas:
2017 was not our best safety year ever so that means that we took a slight step back in our injury rate from 2016 (our best year). A step back means that not only did we not improve, but we did not send everyone home the same way they arrived. Achieving a year-over-year improvement only gets harder as we get better, but an injury-free work environment is something that we can achieve and must continue to drive towards. With that said, an interesting recent industry safety trend is less interested and less engaged customers and competitors. This means that safety has not escaped the price pressures in our current market. Even though it appears our safety record has hit a bit of a plateau, we at Danos have not followed this industry trend to optimize cost at the expense of safety when our customers are valuing this less and our competitors are doing less. We have continued to invest and grow our capability because this is the right thing to do and critical to achieving incident and injury-free work.
Our 2017 financial data is not in just yet, but we are clearly ending the year on a strong note after a very sluggish start. We anticipate some revenue growth in 2017 over 2016 but short of our 2017 revenue targets. Even though revenue is down somewhat from our plan, our profitability is very close to budget. This means that we have been able to make the necessary adjustments along the way to maintain our financial strength in this challenging market, and we have some momentum and reason to be optimistic as we head into 2018. We are not sure what the 2nd half of 2018 holds, but we are confident that we will continue to thrive when many of our peers are surviving.
It has been both encouraging and exciting to me to hear from both you and our customers how our purpose (Honor God. Develop great people to solve big challenges for our customers and communities.) resounds with you. I am proud of what we are accomplishing as a team as we see our purpose in action, and many outside of our team are taking note. In a previous pipeline, we noted that through the Danos foundation more than 137 of you have participated resulting in Danos distributing more than $110,000 impacting 36 employees and 11 organizations. Wow! And, that is year 1. We have also been able to support our customer Shell in their time of need for the hurricane Harvey cleanup. These are just two areas that we have highlighted; while, there are so many more instances where we see our purpose in action having an impact on our team, customers, and communities.
What does 2018 hold? We do not know yet what the 2nd half of the year holds, but we are off to a strong start with momentum that we hope is indicative of what’s to come. Where will that momentum take us and where will we focus for the coming year is something that you will hear more about in the coming weeks as we roll out our 2018 strategy. That strategy is not going to be materially different than our 2017 4WARD Focus but has been matured and enhanced to help us maintain our focus as we look forward. Focusing on what we do well and being intentional about where we invest our efforts is key. With the team and focus that we are bringing into 2018, I am excited about what’s in store for us.