Dril-Quip, Inc. Announces Results For First Quarter 2014

           Dril-Quip, Inc. Announces Results For First Quarter 2014

PR Newswire

HOUSTON, May 9, 2014

HOUSTON, May 9, 2014 /PRNewswire/ -- Dril-Quip, Inc. (NYSE: DRQ) today
announced net income of $42.6 million, or $1.04 per diluted share for the
three months ended March 31, 2014, versus net income of $39.8 million, or
$0.98 per diluted share for the first quarter of 2013. Total revenues were
$204.1 million during the quarter ended March 31, 2014 compared to $193.2
million for the same period in 2013. The first quarter 2014 results were
unfavorably impacted by the Company's inability to recognize approximately $10
million of revenue related to items of equipment that were completed but not
accepted for delivery by one of its major customers. The Company is engaged
in discussions with the customer to resolve a disagreement regarding certain
contractual requirements. In addition, the first quarter 2014 results were
unfavorably impacted by an after-tax foreign exchange loss of $660,000, or
$0.02 per diluted share, as compared to an after-tax foreign exchange gain of
$4.1 million, or $0.10 per diluted share during the first quarter of 2013.

The Company's backlog at March 31, 2014 was approximately $1.35 billion,
compared to its March 31, 2013 backlog of approximately $1.02 billion and its
December 31, 2013 backlog of approximately $1.18 billion. Based on current
market conditions and excluding any unusual or special charges, the Company
expects its earnings per diluted share for the quarter ending June 30, 2014 to
approximate $1.05 to $1.15. The Company also announced that, due primarily to
uncertainties surrounding the customer acceptance issues described above, its
full-year 2014 earnings guidance is being reduced from a range of $5.00 to
$5.20, to a range of $4.70 to $4.90, excluding any unusual or special charges.

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 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
                                    March 31,
                                    2014         2013
Revenues                            $ 204,073    $ 193,155
Cost and expenses:
Cost of sales                       110,787      116,328
Selling, general and administrative 23,935       15,629
Engineering and product development 10,784       9,021
                                    145,506      140,978
Operating income                    58,567       52,177
Interest income                     83           116
Interest expense                    (7)          (14)
Income before income taxes          58,643       52,279
Income tax provision                16,025       12,437
Net income                          $  42,618   $  39,842
Diluted earnings per share          $    1.04 $    0.98
Weighted average shares–diluted     40,887       40,713
Depreciation and amortization       $   7,680  $   7,001
Capital expenditures                $  13,220   $  12,070

SOURCE Dril-Quip, Inc.

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