HOUSTON, July 29, 2016 /PRNewswire/ -- Dril-Quip,
Inc. (NYSE: DRQ) today announced net income of $36.1 million, or $0.96 per diluted share, for the three months
ended June 30, 2016, versus net
income of $39.2 million, or
$1.01 per diluted share, for the
second quarter of 2015. The second quarter 2016 results were
favorably impacted by an after-tax foreign exchange gain of
$12.1 million, or $0.32 per diluted share, as compared to an
after-tax foreign exchange loss of $8.8
million, or $0.23 per diluted
share, during the second quarter of 2015. Total revenues were
$142.4 million during the quarter
ended June 30, 2016 compared to
$215.3 million for the same period in
2015.
For the six months ended June 30,
2016, net income was $72.9
million, or $1.93 per diluted
share, compared with net income of $92.9
million, or $2.39 per diluted
share, for the same period in 2015. The results for the first six
months of 2016 were positively impacted by an after-tax foreign
exchange gain of $17.3 million, or
$0.46 per diluted share, as compared
to an after-tax foreign exchange loss of $4.0 million, or $0.10 per diluted share, during the first half of
2015. Total revenues were $309.0
million during the six months ended June 30, 2016 down from $441.3 million during the same period in
2015.
Blake DeBerry, Dril-Quip's
President and CEO, stated, "Our second quarter and year-to-date
results have been mixed as revenues have fallen below forecasts
primarily because book-and-ship orders have failed to materialize
in the face of ongoing depressed market conditions. On the other
hand, our gross margins for the year have held up nicely due to
the effective execution of our backlog combined with cost
cutting measures which began in the first half of 2015.
"We continue to believe that, despite current market conditions,
our strong balance sheet and positive cash flow will allow us to
take advantage of opportunities which may arise, including the
pursuit of acquisition candidates or the repurchase of stock
through our stock buy-back program. In addition, we will
continue our extensive research and development efforts in
order to increase shareholder value in the long-term."
The Company also announced that its backlog at June 30, 2016 was approximately $460 million, compared to its June 30, 2015 backlog of approximately
$1.0 billion and its March 31, 2016 backlog of approximately
$522 million. 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,
2016 to approximate $0.30 to
$0.40 per share. The Company also announced that, due to
anticipated lower revenues resulting from shortfalls in
book-and-ship orders, its full-year 2016 earnings guidance is being
reduced from a range of $2.45 to
$2.65, to a range of $2.05 to
$2.25, excluding foreign currency gains/losses or any
unusual items.
In addition, the Company announced today that its Board of
Directors has authorized a stock repurchase program under which the
Company can repurchase up to $100
million of its common stock. The repurchase program has no
set expiration date. Repurchases under the program will be made
through open market purchases, privately negotiated transactions or
plans, instructions or contracts established under Rule 10b5-1
under the Securities Exchange Act of 1934. The manner, timing and
amount of any purchase will be determined by management based on an
evaluation of market conditions, stock price and other factors. The
program does not obligate the Company to acquire any particular
amount of common stock, and may be modified or suspended at any
time at the Company's discretion. Any repurchased shares are
expected to be cancelled.
The Company completed a previously authorized stock repurchase
program of $100 million in
June 2016, under which the Company
repurchased 400,500 shares of its common stock for $24.2 million in the second quarter of 2016 and a
total of 1,585,200 shares of its common stock since commencing
repurchases under that program in the second quarter of 2015.
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, stock repurchases
and research and development efforts, 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 June 30,
|
|
Six months
ended June 30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
Revenues
|
$ 142,439
|
$ 215,276
|
|
$ 309,000
|
$ 441,278
|
|
Cost and
expenses:
|
|
|
|
|
|
|
Cost of
sales
|
79,881
|
117,664
|
|
172,977
|
242,802
|
|
Selling, general and
administrative
|
5,762
|
33,633
|
|
18,983
|
50,591
|
|
Engineering and
product development
|
11,579
|
11,400
|
|
22,480
|
23,613
|
|
|
|
|
|
|
|
|
|
97,222
|
162,697
|
|
214,440
|
317,006
|
|
|
|
|
|
|
|
|
Operating
income
|
45,217
|
52,579
|
|
94,560
|
124,272
|
|
Interest
income
|
541
|
165
|
|
1,023
|
214
|
|
Interest
expense
|
(10)
|
(3)
|
|
(14)
|
(6)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
45,748
|
52,741
|
|
95,569
|
124,480
|
|
Income tax
provision
|
9,611
|
13,528
|
|
22,663
|
31,603
|
|
|
|
|
|
|
|
|
Net income
|
$
36,137
|
$
39,213
|
|
$
72,906
|
$
92,877
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.96
|
$
1.01
|
|
$
1.93
|
$
2.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares–diluted
|
37,713
|
38,888
|
|
37,779
|
38,912
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
7,725
|
$
7,684
|
|
$
15,500
|
$
15,139
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
7,544
|
$
5,048
|
|
$
15,276
|
$
11,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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visit:http://www.prnewswire.com/news-releases/dril-quip-announces-results-for-2nd-quarter-2016-and-stock-repurchase-program-300306040.html
SOURCE Dril-Quip, Inc.