Dril-Quip, Inc. announces results for Q3 2015

Dril-Quip, Inc. (NYSE: DRQ) has announced net income of US$50.8 million, or US$1.32 per diluted share, for the three months ended September 30, 2015, versus net income of US$55.7 million, or US$1.40 per diluted share, for the third quarter of 2014. The third quarter 2015 results were favourably impacted by an after-tax foreign exchange gain of US$5.1 million, or US$0.13 per diluted share, as compared to an after-tax foreign exchange gain of US$3.1 million, or US$0.08 per diluted share, during the third quarter of 2014. Total revenues were US$201.4 million during the quarter ended September 30, 2015 compared to US$241.7 million for the same period in 2014.

Margins exceed expectations

Blake DeBerry, Dril-Quip's President and CEO, stated, "Despite the fact that third quarter 2015 revenues fell below forecasts, we were pleased that our gross margins exceeded expectations and allowed us to achieve diluted earnings per share at the upper range of our guidance. Even though declining oil prices and continuing difficult market conditions have resulted in depressed booking levels, we continue to believe that our strong balance sheet and free cash flow will allow us to enhance long-term shareholder value."

For the nine months ended September 30, 2015, net income was US$143.7 million, or US$3.70 per diluted share, compared with net income of US$149.6 million, or US$3.70 per diluted share, for the same period in 2014. The results for the first nine months of 2015 were favourably impacted by an after-tax foreign exchange gain of US$860 000, or US$0.02 per diluted share, as compared to an after-tax foreign exchange gain of US$800 000, or US$0.02 per diluted share during the first three quarters of 2014. Total revenues were US$642.7 million during the nine months ended September 30, 2015 compared to US$676.1 million during the same period in 2014.

Backlog

In addition, the Company announced that its backlog at September 30, 2015 was US$824 million, compared to its June 30, 2015 backlog of US$974 million and its September 30, 2014 backlog of approximately US$1.25 billion. The Company's backlog balance during the three months ended September 30, 2015 was negatively impacted by purchase order cancellations and revisions totalling approximately US$23 million and currency translation adjustments of approximately US$13 million due primarily to the strengthening of the US dollar versus the Brazilian real. 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, 2015 to approximate US$1.00 to US$1.10 per share. The Company also reaffirmed that it expects its full-year 2015 earnings per diluted share to be in the range of US$4.70 to US$4.80, excluding foreign currency gains/losses or any unusual items.

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