<SEC-DOCUMENT>0001558370-23-017445.txt : 20231214
<SEC-HEADER>0001558370-23-017445.hdr.sgml : 20231214
<ACCEPTANCE-DATETIME>20231102164808
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001558370-23-017445
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20231102

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RPC INC
		CENTRAL INDEX KEY:			0000742278
		STANDARD INDUSTRIAL CLASSIFICATION:	OIL, GAS FIELD SERVICES, NBC [1389]
		IRS NUMBER:				581550825
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		2801 BUFORD HIGHWAY NE, SUITE 300
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30329
		BUSINESS PHONE:		404-321-2140

	MAIL ADDRESS:	
		STREET 1:		2801 BUFORD HIGHWAY NE, SUITE 300
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30329

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	RPC INC
		DATE OF NAME CHANGE:	19950809

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	RPC ENERGY SERVICES INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<!--Enhanced HTML document created with Toppan Merrill Bridge  10.4.105.0--><!--Created on: 11/2/2023 08:09:24 PM (UTC)--><!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"><html><head><meta charset="UTF-8"><title></title></head><body><div style="margin-top:30pt;"></div><div style="max-width:100%;padding-left:10.35%;padding-right:10.35%;position:relative;"><div style="margin-top:30pt;width:100%;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><img src="tmb-20231102xcorresp001.jpg" alt="Graphic" style="display:inline-block;height:47.24pt;width:123.73pt;"></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><font style="font-size:8pt;visibility:hidden;">&#8203;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:8pt;text-align:center;margin:0pt;">RPC Incorporated, 2801 Buford Highway NE., Suite 300, Atlanta, GA 30329. Telephone: (404) 321-2140 Facsimile: (404) 321-5483</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt;"><font style="visibility:hidden;">&#8203;</font></p></div><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;"><b style="font-size:12pt;font-weight:bold;text-decoration-color:#000000;text-decoration-line:underline;text-decoration-style:solid;">VIA EDGAR</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;"><font style="font-size:12pt;">November 2, 2023</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">Ms. Sondra Snyder</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">Staff Accountant</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">Division of Corporation Finance</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">Office of Energy &amp; Transportation</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">United States Securities and Exchange Commission</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;visibility:hidden;">&#8203;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 0pt 36pt;"><font style="display:inline-block;text-align:left;text-indent:0pt;width:36pt;"><b style="font-family:'Times New Roman','Times','serif';font-size:12pt;font-style:normal;font-weight:bold;">RE:</b></font><b style="font-size:12pt;font-weight:bold;">RPC, Inc.</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 0pt 36pt;"><font style="display:inline-block;text-align:left;text-indent:0pt;width:36pt;"></font><b style="font-size:12pt;font-weight:bold;">Form 10-K for the Fiscal Year ended December 31, 2022</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 0pt 36pt;"><font style="display:inline-block;text-align:left;text-indent:0pt;width:36pt;"></font><b style="font-size:12pt;font-weight:bold;">Response Dated October 6, 2023</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 0pt 36pt;"><font style="display:inline-block;text-align:left;text-indent:0pt;width:36pt;"></font><b style="font-size:12pt;font-weight:bold;">File No.: &#160;001-08726</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 0pt 36pt;"><font style="font-size:12pt;margin-left:0pt;visibility:hidden;">&#8203;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 36pt;"><font style="display:inline-block;text-align:left;text-indent:0pt;width:36pt;"></font><b style="font-size:12pt;font-weight:bold;">Your comment letter dated October 23, 2023</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:12pt;">Dear Ms. Snyder:</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:12pt;">With reference to your correspondence dated October 23, 2023, with a comment on the above referenced filing, the responses of RPC, Inc. (&#8220;RPC&#8221; or the &#8220;Company&#8221;) are set forth in this letter. &#160;To facilitate the Staff&#8217;s review, we have repeated the question in bold prior to setting forth our response thereto in the same order that they appeared in your letter.</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><b style="font-size:12pt;font-weight:bold;text-decoration-color:#000000;text-decoration-line:underline;text-decoration-style:solid;">Form 10-K for Fiscal Year Ended December 31, 2022</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><b style="font-size:12pt;font-weight:bold;text-decoration-color:#000000;text-decoration-line:underline;text-decoration-style:solid;">Financial Statements</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><b style="font-size:12pt;font-weight:bold;text-decoration-color:#000000;text-decoration-line:underline;text-decoration-style:solid;">Consolidated Statements of Operations, page 31</b></p><table border="0" cellpadding="0" cellspacing="0"><tr><td style="vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;"><font style="font-family:'Wingdings';font-size:12pt;">&#216;</font></p></td><td style="padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;"><b style="font-size:12pt;font-weight:bold;">We note that in response to prior comment 1, you indicate that you will present the cost of revenues in the consolidated statements of operations in accordance with the parenthetical labeling accommodation in SAB Topic 11.B, and include a note to the financial statements showing your allocation of depreciation and amortization to cost of revenues and selling, general and administrative expenses for all periods presented.</b></p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 18pt;"><b style="font-size:12pt;font-weight:bold;">Please also explain how you propose to modify or balance disclosures of percentages described as reflecting the relationship between cost of revenues and revenues, as appears on page 20 and 22 of the annual report, pages 21 and 23 of the recent interim report, and earnings releases you have filed on Form 8-K.</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 0pt 18pt;"><b style="font-size:12pt;font-weight:bold;">While the guidance in SAB Topic 11:B provides an accommodation when presenting the components separately, this does not generally extend to other measures that would ordinarily reflect all components, such as the percentages referenced above.</b></p><p style="display:none;font-family:'Times New Roman','Times','serif';line-height:0pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:0pt;text-decoration-line:underline;text-decoration-style:solid;visibility:hidden;">&#8203;</font></p></div></div><hr style="background-color:#000000;clear:both;color:#000000;height:2pt;line-height:0;margin-bottom:30pt;margin-left:10.35%;margin-right:10.35%;margin-top:30pt;page-break-after:always;width:79.3%;border-width:0;"><div style="max-width:100%;padding-left:10.35%;padding-right:9.56%;position:relative;"><div style="margin-top:30pt;width:100%;"><p style="font-family:'Arial','Helvetica','sans-serif';font-size:10pt;letter-spacing:-0.25pt;line-height:1.19;text-align:justify;margin:0pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;letter-spacing:0pt;">Ms. Sondra Snyder</font></p><p style="font-family:'Arial','Helvetica','sans-serif';font-size:10pt;letter-spacing:-0.25pt;line-height:1.19;text-align:justify;margin:0pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;letter-spacing:0pt;">Securities and Exchange Commission</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-size:12pt;">Page </font><font style="font-size:12pt;">2</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="visibility:hidden;">&#8203;</font></p></div><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><b style="font-size:12pt;font-weight:bold;text-decoration-color:#000000;text-decoration-line:underline;text-decoration-style:solid;">RESPONSE:</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:12pt;">As indicated in your letter, we have relied on the accommodation provided in SAB Topic 11.B to present the components separately in the Consolidated Statements of Operations. &#160;We acknowledge that the accommodation provided by SAB Topic 11.B does not extend to other measures that would ordinarily reflect all components, such as the percentages referenced above, that are presented in other sections of our periodic and current filings. Summarized below are the modifications we intend to adopt in future filings for annual reports, interim reports and earnings releases furnished on Form 8-K.</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><b style="font-size:12pt;font-weight:bold;">ANNUAL &amp; INTERIM REPORTS:</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:12pt;">Please note in the most recently filed interim report on Form 10-Q for the quarter ended September 30, 2023, we modified the table and discussion on pages 25 to 27, as appropriate, to disclose that the cost of revenues as reported did not include depreciation and amortization and quantified the exclusion. </font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:12pt;">We will further modify the discussion in future filings as explained below:</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:12pt;">Beginning with the annual report on Form 10-K for the fiscal year ending December 31, 2023, and quarterly report on 10-Q for the quarter ending March 31, 2024, we will modify our disclosures in Item 2. Management&#8217;s Discussion and Analysis of Financial Condition, Results of Operations as follows:</font></p><table border="0" cellpadding="0" cellspacing="0"><tr><td style="width:4.5pt;padding:0pt;"></td><td style="vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-family:'Symbol';">&#183;</font></p></td><td style="padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-size:12pt;">We will no longer include the following items that were disclosed previously on annual reports on Form 10-K and interim reports on Form 10-Q:</font></p></td></tr></table><table border="0" cellpadding="0" cellspacing="0"><tr><td style="width:22.5pt;padding:0pt;"></td><td style="vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-family:'Wingdings';font-size:12pt;">&#216;</font></p></td><td style="padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-size:12pt;">Percentage cost of revenues to revenues</font></p></td></tr></table><table border="0" cellpadding="0" cellspacing="0"><tr><td style="width:22.5pt;padding:0pt;"></td><td style="vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-family:'Wingdings';font-size:12pt;">&#216;</font></p></td><td style="padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-size:12pt;">Percentage selling, general and administrative expenses to revenues</font></p></td></tr></table><table border="0" cellpadding="0" cellspacing="0"><tr><td style="width:22.5pt;padding:0pt;"></td><td style="vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-family:'Wingdings';font-size:12pt;">&#216;</font></p></td><td style="padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-size:12pt;">Percentage depreciation and amortization expense to revenues</font></p></td></tr></table><table border="0" cellpadding="0" cellspacing="0"><tr><td style="width:9pt;padding:0pt;"></td><td style="vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-family:'Symbol';">&#183;</font></p></td><td style="padding:0pt;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;text-align:justify;"><font style="font-size:12pt;">A proposed p</font><font style="font-size:12pt;">roforma discussion regarding cost of revenues follows:</font></p></td></tr></table><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 27pt;"><i style="font-size:11pt;font-style:italic;">Cost of revenues, which excludes depreciation and amortization, (inc./dec)reased XX percent to $XX million for the year/months ended 20XX, compared to $XX million for the year/months ended 20XX. These costs (inc./dec)reased primarily due to (inc./dec)reases in expenses consistent with activity levels, such as materials and supplies expenses, maintenance and repairs expenses and fuel costs, offset by/coupled with the relatively fixed nature of direct employment costs. &#160;In accordance with Staff Accounting Bulletin (SAB) Topic 11.B, cost of revenues presented on the Consolidated Statements of Operations excludes depreciation and amortization totaling $XX million for the year/months ended 20XX compared to $XX million for the year/months ended 20XX.</i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-size:11pt;visibility:hidden;">&#8203;</font></p></div></div><hr style="background-color:#000000;clear:both;color:#000000;height:2pt;line-height:0;margin-bottom:30pt;margin-left:10.35%;margin-right:9.56%;margin-top:30pt;page-break-after:always;width:80.09%;border-width:0;"><div style="max-width:100%;padding-left:10.35%;padding-right:9.56%;position:relative;"><div style="margin-top:30pt;width:100%;"><p style="font-family:'Arial','Helvetica','sans-serif';font-size:10pt;letter-spacing:-0.25pt;line-height:1.19;text-align:justify;margin:0pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;letter-spacing:0pt;">Ms. Sondra Snyder</font></p><p style="font-family:'Arial','Helvetica','sans-serif';font-size:10pt;letter-spacing:-0.25pt;line-height:1.19;text-align:justify;margin:0pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;letter-spacing:0pt;">Securities and Exchange Commission</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="font-size:12pt;">Page </font><font style="font-size:12pt;">3</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt;"><font style="visibility:hidden;">&#8203;</font></p></div><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><b style="font-size:12pt;font-weight:bold;">EARNINGS RELEASES FURNISHED ON FORM 8-K:</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:12pt;">Please note in the most recently furnished earnings release on Form 8-K for the quarter ended September 30, 2023, we modified the discussion related to cost of revenues partially to include the phrase &#8220;which excludes depreciation and amortization&#8221;. &#160;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;"><font style="font-size:12pt;">We will further modify the cost of revenues discussion in future earnings releases furnished on Form 8-K as follows:</font></p><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:12pt;margin-top:0pt;table-layout:fixed;text-align:justify;width:100%;border:0pt;"><tr><td style="font-family:'Times New Roman','Times','serif';font-size:12pt;vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;">&#9679;</td><td style="padding:0pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;font-style:normal;font-weight:normal;">We will no longer have a discussion of costs of revenues as a percentage of revenues.</font></td></tr></table><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:0pt;margin-top:0pt;table-layout:fixed;text-align:justify;width:100%;border:0pt;"><tr><td style="font-family:'Times New Roman','Times','serif';font-size:12pt;vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;">&#9679;</td><td style="padding:0pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;font-style:normal;font-weight:normal;">Proposed </font><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;font-style:normal;font-weight:normal;">proforma discussion regarding cost of revenues follows:</font></td></tr></table><div style="margin-top:12pt;"></div><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:0pt;margin-top:0pt;table-layout:fixed;text-align:justify;width:100%;border:0pt;"><tr><td style="width:18pt;"></td><td style="font-family:'Wingdings';font-size:12pt;vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;">&#216;</td><td style="padding:0pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;font-style:normal;font-weight:normal;">as it relates to the discussion on cost of revenues for the current quarter compared to the prior quarter of the same year:</font></td></tr></table><div style="margin-top:12pt;"></div><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 36pt;"><i style="font-size:11pt;font-style:italic;">Cost of revenues, which excludes depreciation and amortization, during the fourth quarter of 2023 was $XX million compared to $239.1 million in the third quarter. These costs (inc./dec.)reased XX percent in the fourth quarter because of (inc./dec)rease in revenues and the relatively fixed nature of direct employment costs. Cost of revenues excludes depreciation and amortization totaling $XX for the three months ended December 31, 2023, and $25.6 million for the three months ended September 30, 2023. Selling, general and administrative expenses were $XX million in the fourth quarter of 2023 compared to $42.0 million in the third quarter of 2023.</i></p><table border="0" cellpadding="0" cellspacing="0" style="border-collapse:collapse;font-family:'Times New Roman','Times','serif';font-size:10pt;margin-bottom:0pt;margin-top:0pt;table-layout:fixed;text-align:justify;width:100%;border:0pt;"><tr><td style="width:18pt;"></td><td style="font-family:'Wingdings';font-size:12pt;vertical-align:text-top;white-space:nowrap;width:18pt;padding:0pt;">&#216;</td><td style="padding:0pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;font-style:normal;font-weight:normal;">as it relates to the discussion on cost of revenues for the current quarter compared to the same quarter of the prior year:</font></td></tr></table><div style="margin-top:12pt;"></div><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 36pt;"><i style="font-size:11pt;font-style:italic;">RPC&#8217;s revenues for the quarter ended December 31, 2023, (inc./dec.)reased by $XX million, or XX percent, compared to the fourth quarter of the prior year due to XX. Cost of revenues, which excludes depreciation and amortization, during the fourth quarter of 2023 (inc./dec.)reased by $XX million compared to the fourth quarter of 2022. Cost of revenues excludes depreciation and amortization of $20.4 million for the fourth quarter of 2022.</i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 5pt 0pt;"><font style="font-size:12pt;">We value your feedback and trust that we have provided a comprehensive response to address all of your comments. Please do not hesitate to contact Michael Schmit, our Chief Financial Officer at (470) 388-4304, or me at (404) 321-2149 if you need further information.</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;visibility:hidden;">&#8203;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">Sincerely,</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;visibility:hidden;">&#8203;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">/s/ Ben M. Palmer</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">Ben M. Palmer</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;">President and Chief Executive Officer</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="font-size:12pt;visibility:hidden;">&#8203;</font></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;"><font style="display:inline-block;text-align:left;text-indent:0pt;width:36pt;"><font style="font-family:'Times New Roman','Times','serif';font-size:12pt;font-style:normal;font-weight:normal;">cc:</font></font><font style="font-size:12pt;">Mr. John Cannarella</font></p></div></div><hr style="background-color:#000000;clear:both;color:#000000;height:2pt;line-height:0;margin-left:10.35%;margin-right:9.56%;margin-top:30pt;page-break-after:avoid;width:80.09%;border-width:0;"></body></html>
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