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
|
|
|
|
|
|
|
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SOURCE Dril-Quip, Inc.