Dril-Quip, Inc. Announces Results For Third Quarter 2013

           Dril-Quip, Inc. Announces Results For Third Quarter 2013

PR Newswire

HOUSTON, Nov. 1, 2013

HOUSTON, Nov. 1, 2013 /PRNewswire/ -- Dril-Quip, Inc. (NYSE: DRQ) today
announced net income of $40.0 million, or $0.98 per diluted share, for the
three months ended September 30, 2013, versus net income of $29.7 million, or
$0.73 per diluted share, for the third quarter of 2012. The third quarter
2013 results were unfavorably impacted by an after-tax foreign exchange loss
of $5.8 million, or $0.14 per diluted share, as compared to an after-tax
foreign exchange loss of $1.8 million, or $0.05 per diluted share, during the
third quarter of 2012. Total revenues were $224.7 million during the quarter
ended September 30, 2013 compared to $190.9 million for the same period in
2012, an increase of $33.8 million or approximately 18%. The increase in
revenues resulted from increased product revenues of $28.0 million and
increased service revenues of $5.8 million.

For the nine months ended September 30, 2013, net income was $122.8 million,
or $3.01 per diluted share, compared with net income of $88.3 million, or
$2.18 per diluted share, for the same period in 2012. The results for the
first nine months of 2013 were negatively impacted by an after-tax foreign
exchange loss of $2.2 million, or $0.05 per diluted share, as compared to an
after-tax foreign exchange loss of $3.2 million, or $0.08 per diluted share
during the first three quarters of 2012. Total revenues rose to $639.9 million
during the nine months ended September 30, 2013 from $544.6 million during the
same period in 2012, an increase of approximately 17%.

In addition, the Company announced that its backlog at September 30, 2013 was
approximately $1.15 billion, compared to its September 30, 2012 backlog of
approximately $747 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, 2013 to
approximate $1.04 to $1.14 per share. The Company also announced that it
currently expects its full-year 2013 earnings per diluted share to be in the
range of $4.10 to $4.20, excluding foreign currency gains/losses or any
unusual items, up from previous guidance of $3.85 to $4.05 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,
uncertainties regarding future oil and gas exploration and production
activities in the Gulf of Mexico, including 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          Nine months ended
                       September 30,               September 30,
                       2013              2012      2013          2012
Revenues               $ 224,724    $ 190,860      $ 639,910     $ 544,554
Cost and expenses:
Cost of sales          132,131      121,821        381,662       337,196
Selling, general and   29,830       20,764         68,732        58,614
administrative
Engineering and        10,778       9,552          29,139        28,640
product development
                       172,739      152,137        479,533       424,450
Operating Income       51,985       38,723         160,377       120,104
Interest income        203          148            486           329
Interest expense       (4)          (7)            (24)          (21)
Income before income   52,184       38,864         160,839       120,412
taxes
Income tax provision   12,189       9,207          38,075        32,155
Net income             $  39,995   $  29,657     $ 122,764     $  88,257
Diluted earnings per   $         $    0.73   $    3.01  $    2.18
share                  0.98
Weighted average       40,911       40,589         40,821        40,492
shares–diluted
Depreciation and       $   7,364  $   6,979    $  21,717    $  19,410
amortization
Capital expenditures   $   6,936  $  12,869     $  30,037    $  40,606

SOURCE Dril-Quip, Inc.

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