Dril-Quip, Inc. Announces Results For Second Quarter 2014

30 Jul, 2014, 07:30 ET from Dril-Quip, Inc.

HOUSTON, July 30, 2014 /PRNewswire/ -- Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $51.3 million, or $1.27 per diluted share for the three months ended June 30, 2014, versus net income of $42.9 million, or $1.05 per diluted share for the second quarter of 2013.  Total revenues were $230.3 million during the quarter ended June 30, 2014 compared to $222.0 million for the same period in 2013. The second quarter 2014 results were unfavorably impacted by an after-tax foreign exchange loss of $1.5 million, or $0.04 per diluted share, as compared to an after-tax foreign exchange loss of $700,000, or $0.02 per diluted share during the second quarter of 2013.

For the six months ended June 30, 2014, net income was $93.9 million, or $2.31 per diluted share compared with net income of $82.8 million, or $2.03 per diluted share for the same period in 2013. Total revenues rose to $434.4 million during the six months ended June 30, 2014 from $415.2 million during the same period in 2013. The results for the first six months of 2014 were also negatively impacted by an after-tax foreign exchange loss of $2.2 million, or $0.05 per diluted share, as compared to an after-tax foreign exchange gain of $3.5 million, or $0.09 per diluted share during the first half of 2013.

In addition, the Company announced that its backlog at June 30, 2014 was approximately $1.32 billion, compared to its June 30, 2013 backlog of approximately $1.14 billion and its March 31, 2014 backlog of approximately $1.35 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, 2014 to approximate $1.20 to $1.30 per share. The Company also announced that it currently expects its full-year 2014 earnings per diluted share to be in the range of $4.70 to $4.90, excluding foreign currency gains/losses or any unusual items.

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,

2014

2013

2014

2013

Revenues

$    230,315

$    222,031

$    434,388

$    415,186

Cost and expenses:

Cost of sales

124,993

133,203

235,780

249,531

Selling, general and administrative

25,520

23,273

49,455

38,902

Engineering and product development :

10,848

9,340

21,632

18,361

161,361

165,816

306,867

306,794

Operating income

68,954

56,215

127,521

108,392

Interest income

266

167

349

283

Interest expense

(5)

(6)

(12)

(20 )

Income before income taxes

69,215

56,376

127,858

108,655

Income tax provision

17,891

13,449

33,916

25,886

Net income

$     51,324

$     42,927

$     93,942

$     82,769

Diluted earnings per share

$         1.27

$         1.05

$         2.31

$         2.03

Weighted average shares–diluted

40,562

40,821

40,723

40,767

Depreciation and amortization

$       7,446

$       7,352

$     15,126

$     14,353

Capital expenditures

$       9,998

$     11,031

$     23,218

$     23,101

 

SOURCE Dril-Quip, Inc.