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Last updated on April 20, 2014 at 1:20 EDT

Dril-Quip, Inc. Announces Results for Second Quarter 2012

August 6, 2012

HOUSTON, Aug. 6, 2012 /PRNewswire/ — Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $29.8 million, or $0.74 per diluted share, for the three months ended June 30, 2012, versus net income of $22.2 million, or $0.55 per diluted share, for the second quarter of 2011. Total revenues were $176.6 million during the quarter ended June 30, 2012 compared to $137.0 million for the same period in 2011, an increase of $39.6 million or approximately 29%. The increase in revenues resulted from increased product revenues of $32.2 million and increased service revenues of $7.4 million.

For the six months ended June 30, 2012, net income was $58.6 million, or $1.45 per diluted share, compared with net income of $43.9 million, or $1.09 per diluted share, for the same period in 2011. Total revenues rose to $353.7 million during the six months ended June 30, 2012 from $274.7 million during the same period in 2011, an increase of approximately 29%.

In addition, the Company announced that its backlog at June 30, 2012 was approximately $697 million, compared to its June 30, 2011 backlog of approximately $727 million. Based upon current market conditions and excluding any unusual or special charges, the Company expects its earnings per diluted share for the quarter ending September 30, 2012 to approximate $0.65 to $0.75 per share. The Company also announced that it currently expects its full-year 2012 earnings per diluted share to be in the range of $2.75 to $2.95, excluding any unusual or special charges, up from previous 2012 guidance of $2.60 to $2.80 per diluted share.

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, developments related to the Deepwater Horizon incident, 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    Six months ended
                                                   June 30,                June 30,
                                                 --------                  --------
                                               2012        2011       2012        2011
                                               ----        ----       ----        ----

    Revenues                               $176,570    $136,994   $353,694    $274,661
    Cost and
     expenses:
          Cost of sales                     108,325      82,000    215,375     162,113
          Selling,
           general and
           administrative                    17,418      16,037     37,850      34,298
          Engineering and
           product
           development                        9,478       8,529     19,088      17,227
                                              -----       -----     ------      ------
                                            135,221     106,566    272,313     213,638
                                            -------     -------    -------     -------

    Operating
     income                                  41,349      30,428     81,381      61,023

    Interest income                              78          86        181         185
                                                                                   ---
    Interest
     expense                                     (9)        (11)       (14)        (22)
                                                ---         ---        ---         ---
    Income before
     income taxes                            41,418      30,503     81,548      61,186
    Income tax
     provision                               11,615       8,295     22,948      17,306
                                             ------       -----     ------      ------
    Net income                              $29,803     $22,208    $58,600     $43,880
                                            =======     =======    =======     =======

    Diluted
     earnings per
     share                                    $0.74       $0.55      $1.45       $1.09
                                              =====       =====      =====       =====

    Weighted
     average shares
     - diluted                               40,453      40,312     40,432      40,316
                                             ======      ======     ======      ======

    Depreciation
     and
     amortization                            $6,373      $4,851    $12,431     $10,606
                                             ======      ======    =======     =======

    Capital
     expenditures                           $13,870     $13,030    $27,737     $32,839
                                            =======     =======    =======     =======

SOURCE Dril-Quip, Inc.


Source: PR Newswire