Dril-Quip, Inc. Announces Results For Second Quarter 2015

Jul 30, 2015, 07:30 ET from Dril-Quip, Inc.

HOUSTON, July 30, 2015 /PRNewswire/ -- Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $39.2 million, or $1.01 per diluted share, for the three months ended June 30, 2015, versus net income of $51.3 million, or $1.27 per diluted share, for the second quarter of 2014. The second quarter 2015 results were unfavorably impacted by an after-tax foreign exchange loss of $8.8 million, or $0.23 per diluted share, as compared to an after-tax foreign exchange loss of $1.5 million, or $0.04 per diluted share, during the second quarter of 2014. Total revenues were $215.3 million during the quarter ended June 30, 2015 compared to $230.3 million for the same period in 2014.

Blake DeBerry, Dril-Quip's President and CEO, stated, "We are pleased with our second quarter 2015 operating results as the execution of our backlog resulted in gross margins that exceeded our expectations. While recent oil price declines have increased uncertainties regarding bookings levels, we are encouraged by recent increases in quotation activity."

For the six months ended June 30, 2015, net income was $92.9 million, or $2.39 per diluted share, compared with net income of $93.9 million, or $2.31 per diluted share, for the same period in 2014. The results for the first six months of 2015 were also negatively impacted by an after-tax foreign exchange loss of $4.0 million, or $0.10 per diluted share, as compared to an after-tax foreign exchange loss of $2.2 million, or $0.05 per diluted share, during the first half of 2014. Total revenues rose to $441.3 million during the six months ended June 30, 2015 from $434.4 million during the same period in 2014.

In addition, the Company announced that its backlog at June 30, 2015 was approximately $1.0 billion, compared to its June 30, 2014 backlog of approximately $1.3 billion and its March 31, 2015 backlog of approximately $1.1 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, 2015 to approximate $1.10 to $1.20 per share. The Company also reaffirmed that it currently expects its full-year 2015 earnings per diluted share to be in the range of $4.60 to $4.80, 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, project terminations, suspensions or scope adjustments, 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,

2015

2014

2015

2014

Revenues

$  215,276

$ 230,315

$ 441,278

$ 434,388

Cost and expenses:

Cost of sales

117,664

124,993

242,802

235,780

Selling, general and administrative

33,633

25,520

50,591

49,455

Engineering and product development

11,400

10,848

23,613

21,632

162,697

161,361

317,006

306,867

Operating income

52,579

68,954

124,272

127,521

Interest income

165

266

214

349

Interest expense

(3)

(5)

(6)

(12)

Income before income taxes

52,741

69,215

124,480

127,858

Income tax provision

13,528

17,891

31,603

33,916

Net income

$   39,213

$   51,324

$   92,877

$   93,942

Diluted earnings per share

$       1.01

$       1.27

$       2.39

$      2. 31

Weighted average shares–diluted

38,888

40,562

38,912

40,723

Depreciation and amortization

$     7,684

$     7,446

$   15,139

$   15,126

Capital expenditures

$     5,048

$     9,998

$   11,204

$   23,218

 

SOURCE Dril-Quip, Inc.



RELATED LINKS

http://www.dril-quip.com