HOUSTON, Oct. 27, 2016 /PRNewswire/ -- Dril-Quip, Inc.
(NYSE: DRQ) today announced net income of $19.0 million, or $0.51 per diluted share, for the three months
ended September 30, 2016, versus net
income of $50.8 million, or
$1.32 per diluted share, for the
third quarter of 2015. The third quarter 2016 results were
favorably impacted by an after-tax foreign exchange gain of
$4.4 million, or $0.12 per diluted share, as compared to an
after-tax foreign exchange gain of $5.1
million, or $0.13 per diluted
share, during the third quarter of 2015. Total revenues were
$123.6 million during the quarter
ended September 30, 2016 compared to
$201.4 million for the same period in
2015.
For the nine months ended September 30,
2016, net income was $91.9
million, or $2.44 per diluted
share, compared with net income of $143.7
million, or $3.70 per diluted
share, for the same period in 2015. The results for the first
nine months of 2016 were favorably impacted by an after-tax foreign
exchange gain of $21.7 million, or
$0.57 per diluted share, as compared
to an after-tax foreign exchange gain of $0.9 million, or $0.02 per diluted share, during the first three
quarters of 2015. Total revenues were $432.6
million during the nine months ended September 30, 2016 compared to $642.7 million during the same period in
2015.
Blake DeBerry, Dril-Quip's
President and CEO, stated, "In the face of depressed industry
conditions that continued throughout the third quarter of 2016, we
were pleased to achieve diluted earnings per share at the high end
of our guidance range. Reduced gross margins were offset by
reductions in selling, general and administrative and engineering
expenses, as well as a lower-than-expected tax rate.
"Looking ahead, we continue to believe that our strong balance
sheet will allow us to take advantage of opportunities that may
arise, despite current market conditions. Our focus will
continue to include the pursuit of acquisition candidates, the
repurchase of stock through our stock buy-back program and the
continuation of our research and development efforts to benefit the
Company and our shareholders in the long-term."
In addition, the Company announced that its backlog at
September 30, 2016 was approximately
$378 million, compared to its
June 30, 2016 backlog of
approximately $460 million and its
September 30, 2015 backlog of
approximately $824 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 December 31, 2016 to approximate $0.25 to $0.35 per share. Consistent with our
previously announced guidance, the Company expects its full-year
2016 earnings per diluted share to be in the range of $2.10 to $2.20, 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)
|
|
|
Three months
ended September
30,
|
|
Nine months ended
September 30,
|
|
2016
|
2015
|
|
2016
|
2015
|
Revenues
|
$ 123,640
|
$ 201,402
|
|
$ 432,640
|
$
642,680
|
Cost and
expenses:
|
|
|
|
|
|
Cost of
sales
|
77,633
|
108,132
|
|
250,610
|
350,934
|
Selling, general and
administrative
|
12,504
|
17,280
|
|
31,487
|
67,871
|
Engineering and
product development
|
10,570
|
11,735
|
|
33,050
|
35,348
|
|
100,707
|
137,147
|
|
315,147
|
454,153
|
|
|
|
|
|
|
Operating
income
|
22,933
|
64,255
|
|
117,493
|
188,527
|
Interest
income
|
945
|
345
|
|
1,968
|
559
|
Interest
expense
|
(1)
|
(4)
|
|
(15)
|
(10)
|
|
|
|
|
|
|
Income before income
taxes
|
23,877
|
64,596
|
|
119,446
|
189,076
|
Income tax
provision
|
4,864
|
13,819
|
|
27,527
|
45,422
|
|
|
|
|
|
|
Net income
|
$
19,013
|
$
50,777
|
|
$
91,919
|
$ 143,654
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.51
|
$
1.32
|
|
$
2.44
|
$
3.70
|
|
|
|
|
|
|
Weighted average
shares–diluted
|
37,554
|
38,548
|
|
37,699
|
38,789
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
7,592
|
$
7,638
|
|
$
23,092
|
$
22,777
|
|
|
|
|
|
|
Capital
expenditures
|
$
5,013
|
$
5,542
|
|
$
20,289
|
$
16,746
|
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SOURCE Dril-Quip, Inc.