Dril-Quip, Inc. Announces Results For Second Quarter 2013

HOUSTON, Aug. 2, 2013 /PRNewswire/ -- Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $42.9 million, or $1.05 per diluted share for the three months ended June 30, 2013, versus net income of $29.8 million, or $0.74 per diluted share for the second quarter of 2012.  Total revenues were $222.0 million during the quarter ended June 30, 2013 compared to $176.6 million for the same period in 2012, an increase of $45.4 million or approximately 26%. The increase in revenues resulted from increased product revenues of $42.1 million and increased service revenues of $3.3 million.

For the six months ended June 30, 2013, net income was $82.8 million, or $2.03 per diluted share compared with net income of $58.6 million, or $1.45 per diluted share for the same period in 2012. Total revenues rose to $415.2 million during the six months ended June 30, 2013 from $353.7 million during the same period in 2012, an increase of approximately 17%. The results for the first six months of 2013 were also favorably impacted by an after-tax foreign exchange gain of $3.5 million, or $0.09 per diluted share, as compared to an after-tax foreign exchange loss of $1.4 million, or $0.03 per diluted share during the first half of 2012.

In addition, the Company announced that its backlog at June 30, 2013 was approximately $1.1 billion, compared to its June 30, 2012 backlog of approximately $697 million and its March 31, 2013 backlog of approximately $1.0 billion. Based upon current market conditions and excluding foreign currency gains/losses or any unusual items, the Company expects its earnings per diluted share for the quarter ending September 30, 2013 to approximate $0.95 to $1.05 per share. The Company also announced that it currently expects its full-year 2013 earnings per diluted share to be in the range of $3.85 to $4.05, excluding foreign currency gains/losses or any unusual items, up from previous 2013 guidance of $3.40 to $3.60 per diluted share.

Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment which is well suited for use in deepwater, harsh environment and severe service applications.

Statements contained herein relating to future operations and financial results that are forward-looking statements are based upon certain assumptions and analyses made by the management of the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors. These statements are subject to risks beyond the Company's control, including, but not limited to, the volatility of oil and natural gas prices and cyclicality of the oil and gas industry, uncertainties regarding the effects of new governmental regulations, the Company's international operations, operating risks, and other factors detailed in the Company's public filings with the Securities and Exchange Commission.  Investors are cautioned that any such statements are not guarantees of future performance and actual outcomes may vary materially from those indicated.

 

Dril-Quip, Inc

Comparative Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)








Three months ended

June 30,


Six months ended

June 30,


2013


2012


2013


2012

Revenues

$   222,031


$   176,570


$   415,186


$   353,694









Cost and expenses:








Cost of sales

133,203


108,325


249,531


215,375

Selling, general and administrative

23,273


17,418


38,902


37,850

Engineering and product development

9,340


9,478


18,361


19,088










165,816


135,221


306,794


272,313









Operating Income

56,215


41,349


108,392


81,381









Interest income

167


78


283


181

Interest expense

(6)


(9)


(20)


(14)

Income before income taxes

56,376


41,418


108,655


81,548

Income tax provision

13,449


11,615


25,886


22,948








Net income

$     42,927


$     29,803


$     82,769


$     58,600









Diluted earnings per share

$          1.05


$          0.74


$          2.03


$          1.45

















Weighted average shares–diluted

40,821


40,453


40,767


40,432









Depreciation and amortization

$        7,352


$        6,373


$     14,353


$     12,431









Capital expenditures

$     11,031


$      13,870


$     23,101


$     27,737









 

SOURCE Dril-Quip, Inc.



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