HOUSTON, April 26, 2016 /PRNewswire/ -- Dril-Quip,
Inc. (NYSE: DRQ) today announced net income of $36.8 million, or $0.97 per diluted share, for the three months
ended March 31, 2016, versus net
income of $53.7 million, or
$1.38 per diluted share, for the
first quarter of 2015. The first quarter 2016 results were
favorably impacted by an after-tax foreign exchange gain of
$5.4 million, or $0.14 per diluted share, as compared to an
after-tax foreign exchange gain of $4.8
million, or $0.12 per diluted
share, during the first quarter of 2015. In addition, total
revenues were $166.6 million during
the quarter ended March 31, 2016
compared to $226.0 million for the
same period in 2015.
The Company's backlog at March 31,
2016 was approximately $522
million, compared to its March 31,
2015 backlog of approximately $1.1
billion and its December 31,
2015 backlog of approximately $685
million.
Blake DeBerry, Dril-Quip's
President and CEO, stated, "Despite the ongoing difficult and
challenging market conditions existing in our industry, we are
pleased to report that both gross margins and earnings per share
results exceeded our expectations for the quarter.
"Continued weak and volatile oil prices, leading to declining
capital expenditure budgets for our customers, resulted in
disappointing booking levels during the period. Unfortunately,
uncertainties persist regarding our bookings and our book-and-ship
business for the remainder of the year.
"Looking forward, we continue to believe that our balance sheet,
highlighted by a strong cash position and zero debt, leaves us
well-positioned to take advantage of opportunities which may arise,
whether in the current climate or when the market rebounds. The
Company intends to continue its strategy of investing counter
cyclically through the pursuit of attractive acquisition
candidates, the repurchase of stock through our stock buy-back
program and our research and development efforts to benefit the
Company in the long term."
Based upon current market conditions, the Company expects its
earnings per diluted share for the second quarter of 2016 to
approximate $0.60 to $0.70 and its
earnings per diluted share for the full year to approximate
$2.45 to $2.65, 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, including
statements regarding general economic conditions, commodity price
levels, future financial results, acquisitions and stock
repurchases, 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, some of which are 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 the effects of new governmental
regulations, the Company's ability to convert backlog into revenues
on a profitable basis, the possibility of cancellations of orders,
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
March 31,
|
|
2016
|
2015
|
Revenues
|
$ 166,561
|
$ 226,002
|
Cost and
expenses:
|
|
|
Cost of
sales
|
93,096
|
125,138
|
Selling, general and
administrative
|
13,221
|
16,958
|
Engineering and
product development
|
10,901
|
12,213
|
|
|
|
|
117,218
|
154,309
|
|
|
|
Operating
income
|
49,343
|
71,693
|
Interest
income
|
482
|
49
|
Interest
expense
|
(4)
|
(3)
|
|
|
|
Income before income
taxes
|
49,821
|
71,739
|
Income tax
provision
|
13,052
|
18,075
|
|
|
|
Net income
|
$ 36,769
|
$ 53,664
|
|
|
|
Diluted earnings per
share
|
$ 0.97
|
$ 1.38
|
|
|
|
|
|
|
Weighted average
shares–diluted
|
37,847
|
38,940
|
|
|
|
Depreciation and
amortization
|
$ 7,775
|
$ 7,455
|
|
|
|
Capital
expenditures
|
$ 7,732
|
$ 6,156
|
|
|
|
|
|
|
|
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SOURCE Dril-Quip, Inc.