8-K

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): April 26, 2016

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 April 26, 2016, Dril-Quip, Inc. (“Dril-Quip”) reported first quarter 2016 earnings. For additional information regarding Dril-Quip’s first quarter 2016 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 April 26, 2016.

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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: April 26, 2016

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release issued April 26, 2016.

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EX-99.1

Exhibit 99.1

Contact: Jerry M. Brooks, Chief Financial Officer, (713) 939-7711

DRIL-QUIP, INC. ANNOUNCES RESULTS FOR FIRST QUARTER 2016

HOUSTON, April 26, 2016 — Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $36.8 million, or $0.97 per diluted share, for the three months ended March 31, 2016, versus net income of $53.7 million, or $1.38 per diluted share, for the first quarter of 2015. The first quarter 2016 results were favorably impacted by an after-tax foreign exchange gain of $5.4 million, or $0.14 per diluted share, as compared to an after-tax foreign exchange gain of $4.8 million, or $0.12 per diluted share, during the first quarter of 2015. In addition, total revenues were $166.6 million during the quarter ended March 31, 2016 compared to $226.0 million for the same period in 2015.

The Company’s backlog at March 31, 2016 was approximately $522 million, compared to its March 31, 2015 backlog of approximately $1.1 billion and its December 31, 2015 backlog of approximately $685 million.

Blake DeBerry, Dril-Quip’s President and CEO, stated, “Despite the ongoing difficult and challenging market conditions existing in our industry, we are pleased to report that both gross margins and earnings per share results exceeded our expectations for the quarter.

“Continued weak and volatile oil prices, leading to declining capital expenditure budgets for our customers, resulted in disappointing booking levels during the period. Unfortunately, uncertainties persist regarding our bookings and our book-and-ship business for the remainder of the year.

“Looking forward, we continue to believe that our balance sheet, highlighted by a strong cash position and zero debt, leaves us well-positioned to take advantage of opportunities which may arise, whether in the current climate or when the market rebounds. The Company intends to continue its strategy of investing counter cyclically through the pursuit of attractive acquisition candidates, the repurchase of stock through our stock buy-back program and our research and development efforts to benefit the Company in the long term.”

Based upon current market conditions, the Company expects its earnings per diluted share for the second quarter of 2016 to approximate $0.60 to $0.70 and its earnings per diluted share for the full year to approximate $2.45 to $2.65, 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, including statements regarding general economic conditions, commodity price levels, future financial results, acquisitions and stock repurchases, 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 March 31,
	2016			2015
Revenues	$	166,561		$	226,002
Cost and expenses:
Cost of sales		93,096			125,138
Selling, general and administrative		13,221			16,958
Engineering and product development		10,901			12,213
		117,218			154,309
Operating income		49,343			71,693
Interest income		482			49
Interest expense		(4	)		(3	)
Income before income taxes		49,821			71,739
Income tax provision		13,052			18,075
Net income	$	36,769		$	53,664
Diluted earnings per share	$	0.97		$	1.38
Weighted average shares–diluted		37,847			38,940
Depreciation and amortization	$	7,775		$	7,455
Capital expenditures	$	7,732		$	6,156