UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 30, 2015
DRIL-QUIP, INC.
(Exact
name of registrant as specified in its charter)
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Delaware |
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001-13439 |
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74-2162088 |
(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
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6401 N. Eldridge Parkway
Houston, Texas |
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77041 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (713) 939-7711
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 |
Results of Operations and Financial Condition. |
On July 30, 2015, Dril-Quip, Inc.
(Dril-Quip) reported second quarter 2015 earnings. For additional information regarding Dril-Quips second quarter 2015 earnings, please refer to Dril-Quips press release attached to this report as Exhibit 99.1 (the
Press Release), which Press Release is incorporated by reference herein.
The information in the Press Release is being furnished, not filed,
pursuant to Item 2.02. Accordingly, the information in the Press Release will not be incorporated by reference into any registration statement filed by Dril-Quip under the Securities Act of 1933, as amended, unless specifically identified
therein as being incorporated therein by reference.
Item 9.01 |
Financial Statements and Exhibits. |
The exhibit listed below is being furnished pursuant to Item 2.02 of this Form
8-K:
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Exhibit No. |
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Description |
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99.1 |
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Press Release issued July 30, 2015. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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DRIL-QUIP, INC. |
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By: |
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/s/ Jerry M. Brooks |
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Jerry M. Brooks |
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Vice PresidentFinance and Chief Financial Officer |
Date: July 30, 2015
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EXHIBIT INDEX
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Exhibit No. |
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Description |
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99.1 |
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Press Release issued July 30, 2015. |
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Exhibit 99.1
Contact: Jerry M. Brooks, Chief Financial Officer, (713) 939-7711
DRIL-QUIP, INC. ANNOUNCES RESULTS FOR SECOND QUARTER 2015
HOUSTON, July 30, 2015 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-Quips 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 $4.80, excluding foreign
currency gains/losses or any unusual items.
Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment which is
well suited for use in deepwater, harsh environment and severe service applications.
Statements contained herein relating to future operations and
financial results that are forward-looking statements are based upon certain assumptions and analyses made by the management of the Company in light of its experience and perception of historical trends, current conditions, expected future
developments and other factors. These statements are subject to risks beyond the Companys control, including, but not limited to, the volatility of oil and natural gas prices and cyclicality of the oil and gas industry, project terminations,
suspensions or scope adjustments, uncertainties regarding the effects of new governmental regulations, the Companys international operations, operating risks, and other factors detailed in the Companys public filings with the Securities
and Exchange Commission. Investors are cautioned that any such statements are not guarantees of future performance and actual outcomes may vary materially from those indicated.
Dril-Quip, Inc.
Comparative Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
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Three months ended June 30, |
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Six months ended June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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Revenues |
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$ |
215,276 |
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$ |
230,315 |
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$ |
441,278 |
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$ |
434,388 |
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Cost and expenses: |
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Cost of sales |
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117,664 |
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124,993 |
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242,802 |
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235,780 |
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Selling, general and administrative |
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33,633 |
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25,520 |
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50,591 |
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49,455 |
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Engineering and product development |
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11,400 |
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10,848 |
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23,613 |
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21,632 |
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162,697 |
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161,361 |
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317,006 |
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306,867 |
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Operating income |
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52,579 |
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68,954 |
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124,272 |
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127,521 |
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Interest income |
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165 |
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266 |
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214 |
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349 |
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Interest expense |
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(3 |
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(5 |
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(6 |
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(12 |
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Income before income taxes |
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52,741 |
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69,215 |
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124,480 |
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127,858 |
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Income tax provision |
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13,528 |
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17,891 |
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31,603 |
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33,916 |
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Net income |
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$ |
39,213 |
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$ |
51,324 |
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$ |
92,877 |
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$ |
93,942 |
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Diluted earnings per share |
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$ |
1.01 |
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$ |
1.27 |
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$ |
2.39 |
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$ |
2. 31 |
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Weighted average sharesdiluted |
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38,888 |
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40,562 |
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38,912 |
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40,723 |
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Depreciation and amortization |
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$ |
7,684 |
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$ |
7,446 |
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$ |
15,139 |
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$ |
15,126 |
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Capital expenditures |
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$ |
5,048 |
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$ |
9,998 |
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$ |
11,204 |
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$ |
23,218 |
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