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 October 29, 2015 - 6:00 AM EDT
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Dril-Quip, Inc. Announces Results For Third Quarter 2015

HOUSTON, Oct. 29, 2015 /PRNewswire/ -- 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)






Three months ended
September 30,


Nine months ended
September 30,


2015

2014


2015

2014

Revenues

$ 201,402

$ 241,750


$ 642,680

$ 676,138

Cost and expenses:






Cost of sales

108,132

135,250


350,934

371,030

Selling, general and administrative

17,280

20,845


67,871

70,300

Engineering and product development

11,735

12,663


35,348

34,295








137,147

168,758


454,153

475,625







Operating income

64,255

72,992


188,527

200,513

Interest income

345

206


559

555

Interest expense

(4)

(3)


(10)

(15)

Income before income taxes

64,596

73,195


189,076

201,053

Income tax provision

13,819

17,512


45,422

51,428






Net income

$ 50,777

$ 55,683


$ 143,654

$ 149,625







Diluted earnings per share

$ 1.32

$ 1.40


$ 3.70

$ 3.70







Weighted average shares–diluted

38,548

39,880


38,789

40,444







Depreciation and amortization

$ 7,638

$ 7,648


$ 22,777

$ 22,774







Capital expenditures

$ 5,542

$ 7,946


$ 16,746

$ 31,164







 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dril-quip-inc-announces-results-for-third-quarter-2015-300168410.html

SOURCE Dril-Quip, Inc.


Source: PR Newswire (October 29, 2015 - 6:00 AM EDT)

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