UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 28, 2014
DRIL-QUIP, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-13439 | 74-2162088 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| 6401 N. Eldridge Parkway Houston, Texas |
77041 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (713) 939-7711
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition. |
On February 28, 2014, Dril-Quip, Inc. (“Dril-Quip”) reported full year 2013 and fourth quarter 2013 earnings. For additional information regarding Dril-Quip’s full year 2013 and fourth quarter 2013 earnings, please refer to Dril-Quip’s press release attached to this report as Exhibit 99.1 (the “Press Release”), which Press Release is incorporated by reference herein.
The information in the Press Release is being furnished, not filed, pursuant to Item 2.02. Accordingly, the information in the Press Release will not be incorporated by reference into any registration statement filed by Dril-Quip under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
The exhibit listed below is being furnished pursuant to Item 2.02 of this Form 8-K:
| Exhibit No. |
Description | |
| 99.1 | Press Release issued February 28, 2014. | |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DRIL-QUIP, INC. | ||
| By: | /s/ Jerry M. Brooks | |
| Jerry M. Brooks | ||
| Vice President—Finance and Chief Financial Officer | ||
Date: February 28, 2014
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EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Press Release issued February 28, 2014. | |
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Exhibit 99.1
Contact: Jerry M. Brooks, Chief Financial Officer, (713) 939-7711
DRIL-QUIP, INC. ANNOUNCES RESULTS FOR FOURTH QUARTER AND YEAR END 2013
HOUSTON, February 28, 2014 — Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $47.1 million, or $1.15 per diluted share, for the three months ended December 31, 2013, versus net income of $31.0 million, or $0.76 per diluted share, for the fourth quarter of 2012. The fourth quarter 2013 results were unfavorably impacted by an after-tax foreign exchange loss of $2.3 million, or $0.06 per diluted share, as compared to an after-tax foreign exchange loss of $0.7 million, or $0.02 per diluted share, during the fourth quarter of 2012. Total revenues were $232.5 million during the quarter ended December 31, 2013 compared to $188.5 million for the same period in 2012, an increase of $44.0 million or approximately 23%. The increase in revenues resulted from increased product revenues of $40.5 million and increased service revenues of $3.5 million.
For the year ended December 31, 2013, net income was $169.8 million, or $4.16 per diluted share, compared with net income of $119.2 million, or $2.94 per diluted share, for 2012. The results for the twelve months ended December 31, 2013 were negatively impacted by an after-tax foreign exchange loss of $4.6 million, or $0.11 per diluted share, as compared to an after-tax foreign exchange loss of $3.8 million, or $0.09 per diluted share, during the year ended December 31, 2012. Total revenues for the year ended December 31, 2013 were $872.4 million, compared to $733.0 million for the same period in 2012, an increase of approximately 19%.
In addition, the Company announced that its backlog at December 31, 2013 was approximately $1.2 billion, compared to its December 31, 2012 backlog of approximately $881 million. Based upon current market conditions and excluding any unusual or special charges, the Company expects its earnings per diluted share for 2014 to approximate $5.00 to $5.20 and its 2014 first quarter earnings per diluted share to approximate $1.10 to $1.20.
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, 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 December 31, |
Year ended December 31, |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenues |
$ | 232,462 | $ | 188,477 | $ | 872,372 | $ | 733,031 | ||||||||
| Cost and expenses: |
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| Cost of sales |
132,244 | 114,470 | 513,906 | 451,666 | ||||||||||||
| Selling, general and administrative |
26,074 | 23,604 | 94,806 | 82,218 | ||||||||||||
| Engineering and product development : |
10,976 | 8,815 | 40,115 | 37,455 | ||||||||||||
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| 169,294 | 146,889 | 648,827 | 571,339 | |||||||||||||
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| Operating Income |
63,168 | 41,588 | 223,545 | 161,692 | ||||||||||||
| Interest income |
101 | 133 | 587 | 462 | ||||||||||||
| Interest expense |
(11 | ) | (11 | ) | (35 | ) | (32 | ) | ||||||||
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| Income before income taxes |
63,258 | 41,710 | 224,097 | 162,122 | ||||||||||||
| Income tax provision |
16,195 | 10,758 | 54,270 | 42,913 | ||||||||||||
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| Net income |
$ | 47,063 | $ | 30,952 | $ | 169,827 | $ | 119,209 | ||||||||
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| Diluted earnings per share |
$ | 1.15 | $ | 0.76 | $ | 4.16 | $ | 2.94 | ||||||||
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| Weighted average shares–diluted |
40,998 | 40,644 | 40,865 | 40,523 | ||||||||||||
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| Depreciation and amortization |
$ | 7,623 | $ | 6,814 | $ | 29,340 | $ | 26,224 | ||||||||
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| Capital expenditures |
$ | 12,596 | $ | 10,167 | $ | 42,633 | $ | 50,773 | ||||||||
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