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

01 Nov, 2013, 07:30 ET from Dril-Quip, Inc.

HOUSTON, Nov. 1, 2013 /PRNewswire/ -- Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $40.0 million, or $0.98 per diluted share, for the three months ended September 30, 2013, versus net income of $29.7 million, or $0.73 per diluted share, for the third quarter of 2012.  The third quarter 2013 results were unfavorably impacted by an after-tax foreign exchange loss of $5.8 million, or $0.14 per diluted share, as compared to an after-tax foreign exchange loss of $1.8 million, or $0.05 per diluted share, during the third quarter of 2012. Total revenues were $224.7 million during the quarter ended September 30, 2013 compared to $190.9 million for the same period in 2012, an increase of $33.8 million or approximately 18%.  The increase in revenues resulted from increased product revenues of $28.0 million and increased service revenues of $5.8 million.

For the nine months ended September 30, 2013, net income was $122.8 million, or $3.01 per diluted share, compared with net income of $88.3 million, or $2.18 per diluted share, for the same period in 2012.  The results for the first nine months of 2013 were 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 loss of $3.2 million, or $0.08 per diluted share during the first three quarters of 2012. Total revenues rose to $639.9 million during the nine months ended September 30, 2013 from $544.6 million during the same period in 2012, an increase of approximately 17%.

In addition, the Company announced that its backlog at September 30, 2013 was approximately $1.15 billion, compared to its September 30, 2012 backlog of approximately $747 million. 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 December 31, 2013 to approximate $1.04 to $1.14 per share. The Company also announced that it currently expects its full-year 2013 earnings per diluted share to be in the range of $4.10 to $4.20, excluding foreign currency gains/losses or any unusual items, up from previous guidance of $3.85 to $4.05 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 future oil and gas exploration and production activities in the Gulf of Mexico, including 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 September 30,

 

Nine months ended September 30,

2013

2012

2013

2012

Revenues

$ 224,724

$ 190,860

$ 639,910

$ 544,554

Cost and expenses:

Cost of sales

132,131

121,821

381,662

337,196

Selling, general and administrative

29,830

20,764

68,732

58,614

Engineering and product development

10,778

9,552

29,139

28,640

172,739

152,137

479,533

424,450

Operating Income

51,985

38,723

160,377

120,104

Interest income

203

148

486

329

Interest expense

(4)

(7)

(24)

(21)

Income before income taxes

52,184

38,864

160,839

120,412

Income tax provision

12,189

9,207

38,075

32,155

Net income

$   39,995

$   29,657

$ 122,764

$   88,257

Diluted earnings per share

$       0.98

$       0.73

$       3.01

$       2.18

Weighted average shares–diluted

40,911

40,589

40,821

40,492

Depreciation and amortization

$     7,364

$     6,979

$   21,717

$   19,410

Capital expenditures

$     6,936

$   12,869

$   30,037

$   40,606

SOURCE Dril-Quip, Inc.