DRQ Dril Quip Inc

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): October 29, 2015

DRIL-QUIP, INC.

(Exact name of registrant as specified in its charter)

Registrant’s 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):

On October 29, 2015, Dril-Quip, Inc. (“Dril-Quip”) reported third quarter 2015 earnings. For additional information regarding Dril-Quip’s third quarter 2015 earnings, please refer to Dril-Quip’s 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.

The exhibit listed below is being furnished pursuant to Item 2.02 of this Form 8-K:

2

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.

Date: October 29, 2015

3

EXHIBIT INDEX

4

Exhibit 99.1

Contact: Jerry M. Brooks, Chief Financial Officer, (713) 939-7711

DRIL-QUIP, INC. ANNOUNCES RESULTS FOR THIRD QUARTER 2015

HOUSTON, October 29, 2015 — Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $50.8 million, or $1.32 per diluted share, for the three months ended September 30, 2015, versus net income of $55.7 million, or $1.40 per diluted share, for the third quarter of 2014. The third quarter 2015 results were favorably impacted by an after-tax foreign exchange gain of $5.1 million, or $0.13 per diluted share, as compared to an after-tax foreign exchange gain of $3.1 million, or $0.08 per diluted share, during the third quarter of 2014. Total revenues were $201.4 million during the quarter ended September 30, 2015 compared to $241.7 million for the same period in 2014.

Blake DeBerry, Dril-Quip’s President and CEO, stated, “Despite the fact that third quarter 2015 revenues fell below forecasts, we were pleased that our gross margins exceeded expectations and allowed us to achieve diluted earnings per share at the upper range of our guidance. Even though declining oil prices and continuing difficult market conditions have resulted in depressed booking levels, we continue to believe that our strong balance sheet and free cash flow will allow us to enhance long-term shareholder value.”

For the nine months ended September 30, 2015, net income was $143.7 million, or $3.70 per diluted share, compared with net income of $149.6 million, or $3.70 per diluted share, for the same period in 2014. The results for the first nine months of 2015 were favorably impacted by an after-tax foreign exchange gain of $860,000, or $0.02 per diluted share, as compared to an after-tax foreign exchange gain of $800,000, or $0.02 per diluted share during the first three quarters of 2014. Total revenues were $642.7 million during the nine months ended September 30, 2015 compared to $676.1 million during the same period in 2014.

In addition, the Company announced that its backlog at September 30, 2015 was $824 million, compared to its June 30, 2015 backlog of $974 million and its September 30, 2014 backlog of approximately $1.25 billion. The Company’s backlog balance during the three months ended September 30, 2015 was negatively impacted by purchase order cancellations and revisions totaling approximately $23 million and currency translation adjustments of approximately $13 million due primarily to the strengthening of the U.S. dollar versus the Brazilian real. 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, 2015 to approximate $1.00 to $1.10 per share. The Company also reaffirmed that it expects its full-year 2015 earnings per diluted share to be in the range of $4.70 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 to contracts, 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)

Dril Quip (NYSE:DRQ)
Historical Stock Chart
From Aug 2024 to Sep 2024

Dril Quip (NYSE:DRQ)
Historical Stock Chart
From Sep 2023 to Sep 2024