Dril-Quip, Inc. (NYSE: DRQ) (the “Company” or “Dril-Quip”) today
reported operational and financial results for the fourth quarter
and full year 2019.
Key highlights included:
- Continued revenue growth with fourth quarter 2019 revenue of
$108.5 million and full year 2019 revenue of $414.8 million, both
at the high end of their respective guidance ranges;
- Increased product bookings to $101 million in the fourth
quarter of 2019 and to $388 million for the full year of 2019
driven by additional growth in new technology product orders;
- Reported net income of $7.4 million, or $0.21 per diluted
share, in the fourth quarter of 2019 and net income of $1.7
million, or $0.05 per diluted share, for the full year 2019;
- Generated net cash provided by operating activities of $8.1
million in the fourth quarter of 2019 and $14.7 million for the
full year 2019; free cash flow totaled $5.2 million in the fourth
quarter of 2019 and $3.2 million for the full year 2019;
- Grew Adjusted EBITDA to $15.8 million in the fourth quarter of
2019 and to $53.8 million for the full year of 2019, which was more
than triple the amount reported in full year 2018;
- Completed cost saving initiatives by capturing additional
annualized savings of approximately $8 million in the fourth
quarter with total cost savings captured at $52 million exceeding
the initial target of $40 to $50 million;
- Maintained a clean balance sheet with no debt and cash on hand
of $399 million as of December 31, 2019; and
- Repurchased over 615,000 common shares at an average price of
$43.12 for a total of $26.6 million in 2019.
Blake DeBerry, Dril-Quip's President and Chief
Executive Officer, commented, "I am proud of the many achievements
that we made in an improving, but still uncertain offshore energy
environment over this past year. In the fourth quarter of
2019, we recorded revenue and product bookings at the high end of
our guidance and continued to benefit from realized cost savings
captured through the transformation initiative. The fourth
quarter of 2019 was the first time since 2014 that we achieved
non-project product bookings above $100 million. In addition,
we continued to grow our Adjusted EBITDA to $16 million in the
fourth quarter and $54 million for the full year of 2019. For
the full year of 2019, we generated $415 million in revenue, a
year-over-year increase of 8%, but more importantly we grew
Adjusted EBITDA by 209% in 2019 compared to 2018. This
significant increase would not be possible without the $30 million
in realized cost savings in 2019. We continue to reduce
costs, improve performance, execute operationally and deliver on
our guidance.”
“The financial and operational gains we achieved
were directly attributable to our ability to deliver on our
ambitious business transformation launched in late 2018. This
transformation targeted aggressive booking goals, penetration of
our recently launched new products and ambitious cost reduction
targets. I am pleased to announce that we made tremendous
progress on all three of these targets. Our retooled
commercial teams delivered increases in non-project product
bookings year-over-year of 59%. The new products we developed
over the past few years are starting to gain traction as 13% of our
product bookings in 2019 came from new products. We initially
announced a 2019 target of $40 million to $50 million of annualized
cost savings focused on a new, more efficient, leaner operating
model. Through the efforts of our global workforce, we were
able to deliver annualized savings of $52 million, above the high
end of our expectations. We expect this new operating model
will continue to yield positive momentum into 2020 through further
gains in productivity. We generated $3 million in free cash
flow while strategically investing in inventory in 2019 to position
us for growth in our subsea production systems and our downhole
tools businesses in 2020. Our cash position continued to
remain strong at over $399 million at year-end 2019, and our
balance sheet remains debt-free. We worked hard executing on
our business transformation and remained focused on achieving our
strategic goals while operating efficiently through this
downturn.”
“As we look to 2020 and beyond, Dril-Quip is
well-positioned operationally to support increasing order activity
with a more efficient overall cost structure and improving
margins. We entered 2020 with strong momentum and a belief
that growth would continue but we currently are not giving full
year guidance for revenues or bookings until there is better line
of sight on global demand because of the developing impact of the
Coronavirus. As a result of temporary disruptions in our
Singapore operations due to travel restrictions and quarantine, we
are forecasting revenue for the first quarter of 2020 to be between
$95 million and $105 million. We are proactively ramping up
production in our facilities outside of the Asia Pacific region to
mute further effect of these temporary disruptions. Despite
the impact to revenue, we remain encouraged that our product
bookings estimate for the first quarter is unchanged, ranging
between $85 million and $105 million.
“We will continue to leverage our
technologically innovative products, strong balance sheet and
customer focused approach to provide the equipment and support to
meet the changing needs of the global market. In addition, we
remain keenly focused on continuing to optimize our operational
performance while delivering profitable growth.”
In conjunction with today’s release, the Company
posted a new investor presentation entitled “Fourth Quarter and
Full Year 2019 Supplemental Earnings Information” to its website,
www.dril-quip.com, on the “Events & Presentations” page under
the Investors tab. Investors should note that Dril-Quip
announces material financial information in Securities and Exchange
Commission (“SEC”) filings, press releases and public conference
calls. Dril-Quip may use the Investors section of its website
(www.dril-quip.com) to communicate with investors. It is
possible that the financial and other information posted there
could be deemed to be material information. Information on
Dril-Quip’s website is not part of this release.
Operational and Financial
Results
Revenue, Cost of Sales and Gross Operating
Margin
Consolidated revenue for the fourth quarter of
2019 was $108.5 million, slightly higher compared with the $108.2
million in the third quarter of 2019. Revenues for the fourth
quarter of 2019 were at the high end of the Company’s guidance
range of $100 to $110 million primarily due to an increase in
fabricated joint revenues. For the full year 2019, revenue
was $414.8 million, a year-over-year increase of $30.2 million, or
8%, driven by an increase primarily in subsea trees, fabricated
joints and connectors, partially offset by lower lease revenues
year-over-year.
Western Hemisphere revenue increased by
approximately $5 million, or 8%, during the fourth quarter of 2019
compared to the third quarter due to increased product and
aftermarket revenue. Eastern Hemisphere revenue decreased by
approximately $4 million, or 14%, as compared to the prior quarter
due to lower product sales partially offset by higher fabricated
joint work. Asia-Pacific revenue was flat sequentially.
Gross operating margin for the fourth quarter of
2019 was 30%, in line with the third quarter of 2019. For the
full year of 2019, gross operating margin was 29%, which was up
from 24% in the full year of 2018, driven by the improvements
captured in the costs saving initiatives.
Cost of sales for the fourth quarter of 2019 was
$75.7 million, a slight decrease of $0.3 million compared to the
prior quarter. For the full year of 2019, cost of sales was
$295 million, an increase of $1.4 million, or 0.5%, compared to
full year 2018 cost of sales of $293.6 million.
Selling, General and Administrative Expenses
Selling, general and administrative (“SG&A”)
expenses for the fourth quarter of 2019 were $21.4 million, a
reduction of $6.6 million compared to third quarter of 2019,
primarily due to lower stock compensation expense. For full year
2019, SG&A expenses decreased by approximately $4.3 million, or
4.3%, to $96.8 million from $101.1 million in 2018. The
year-over-year reduction was primarily due to continued progress in
the Company’s transformation efforts, partially offset by the
return to more normalized annual merit increases for our
employees. SG&A expenses as a percentage of revenues
decreased to 23.3% for the year ended December 31, 2019, down from
26.3% for 2018.
Net Income, Adjusted EBITDA and Free Cash
Flow
For the fourth quarter of 2019, Dril-Quip
reported net income of $7.4 million, or $0.21 per diluted share,
compared to a net loss of $1.3 million, or $0.04 per diluted share,
in the third quarter of 2019. Adjusted net income for the
fourth quarter was $8.1 million, or $0.23 per diluted share, after
excluding $0.02 per share related to restructuring charges, gains
related to foreign currency, the sale of assets, and other
items. For the full year 2019, Dril-Quip reported net income
of $1.7 million, or $0.05 per diluted share, compared to a net loss
of $95.7 million, or $2.58 per diluted share, in 2018. Adjusted net
income for the full year 2019 was $2.7 million, or $0.08 per
diluted share, compared with an adjusted net loss of $23.5 million,
or $0.63 per diluted share, in calendar 2018.
Adjusted EBITDA totaled $15.8 million for the
fourth quarter of 2019, compared to $15.3 million in the third
quarter of 2019. For the full year 2019, Dril-Quip generated
Adjusted EBITDA of $53.8 million compared to Adjusted EBITDA of
$17.4 million for 2018, an increase of 209% year-over-year, driven
by realized cost savings and increased revenues.
Free cash flow for the fourth quarter of 2019
totaled $5.2 million, as compared to negative $8 million generated
in the third quarter of 2019. For the full year 2019, free
cash flow totaled $3.2 million compared with $13.4 million in 2018.
This decline was driven largely by higher activity and the
Company’s strategic stocking program.
Cost Saving Initiatives
In 2018, Dril-Quip began the implementation of a
full business transformation centered around a structured approach
to improve cost performance across the entire Company. The
sustainable cost-saving initiatives are focused on optimizing and
improving the Company’s infrastructure across manufacturing, supply
chain, SG&A, engineering and research and development.
This reorganization will allow Dril-Quip to maintain its global
presence in key markets, while supporting an integrated supply
chain model which will create more flexibility in meeting the needs
of its customers. The original goal was to achieve annualized
savings in place by year-end 2019 of approximately $40 to $50
million.
At the end of the fourth quarter of 2019,
Dril-Quip had completed the initial phase of the cost saving
initiatives with $52 million in annualized savings achieved.
Some examples of the progress made over the past 18 months include
reducing and rationalizing global footprints, optimizing
operational activities, supplier renegotiations and workforce
reductions. Looking forward, the Company will leverage the
skills gained during this transformation to focus on additional
productivity initiatives that are longer-term in nature and will
continue to add value in 2020 and beyond.
Balance Sheet
Dril-Quip’s cash on hand as of December 31, 2019
was $399 million, which together with amounts available under the
asset-based lending (ABL) facility resulted in approximately $432
million of available liquidity. This robust liquidity
position provides both financial and operational flexibility and
allows the Company to continue to execute on its long-term strategy
of investing in research and development, supporting a market
upturn, opportunistically returning cash to shareholders and
pursuing strategic acquisitions.
Share Repurchases
On February 26, 2019, the Board of Directors
authorized a share repurchase plan under which the Company could
repurchase up to $100 million of its common stock. The
repurchase plan has no set expiration date and any repurchased
shares are expected to be cancelled. The manner, timing and
amount of any purchase will be determined by management based on an
evaluation of market conditions, stock price, liquidity and other
factors. The program does not obligate the Company to acquire
any particular amount of common stock and may be modified or
superseded at any time at the Company’s discretion.
For the three-month period ended December 31,
2019, the Company purchased 490,052 shares under the share
repurchase plan at an average price of approximately $43.25 per
share, totaling approximately $21.2 million and retired such
shares. For the full year 2019, the Company purchased 615,940
shares under the share repurchase plan at an average price of
$43.12 per share, totaling approximately $26.6 million. The
Company continues to evaluate current market conditions on an
ongoing basis as it relates to executing its share buyback program
while also taking the liquidity needs of the Company into
consideration.
Conference Call
As previously announced, the Company will hold a
conference call to discuss its 2019 results and 2020 outlook
tomorrow, Friday, February 28, 2020, at 9:00 a.m. Central Time
(10:00 a.m. Eastern Time). Interested parties may participate by
dialing (877) 317-6789 (domestic) or (412) 317-6789 (international)
and asking to be connected to the Dril-Quip year-end 2019
conference call. The call will also be webcast and will be
available on Dril-Quip’s website at www.dril-quip.com on the
“Events and Presentations” page under the “Investors” tab. An audio
replay of the call will be available on Dril-Quip’s website
approximately 2 hours following its conclusion.
About Dril-Quip
Dril-Quip is a leading manufacturer of highly
engineered drilling and production equipment for use onshore and
offshore, which is particularly well suited for use in deep-water,
harsh environments and severe service applications.
Forward-Looking Statements
Statements contained herein relating to future
operations and financial results that are forward-looking
statements, including those related to market conditions,
anticipated project bookings, expected timing of completing the
strategic restructuring, anticipated timing of delivery of new
orders, anticipated revenues, costs, cost synergies and savings,
possible acquisitions, new product offerings and related revenues,
share repurchases and expectations regarding operating results, 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, project terminations, suspensions or scope adjustments to
contracts, 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 SEC. Investors are cautioned that any such
statements are not guarantees of future performance and actual
outcomes may vary materially from those indicated.
Non-GAAP Financial
Information
Adjusted Net Income, Adjusted Diluted EPS, Free
Cash Flow, and Adjusted EBITDA are non-GAAP measures.
Adjusted Net Income and Adjusted Diluted EPS are defined as net
income (loss) and earnings per share, respectively, excluding the
impact of foreign currency gains or losses as well as other
significant non-cash items and certain charges and credits.
Free Cash Flow is defined as net cash provided
by operating activities less net cash used in the purchase of
property, plant and equipment.
Adjusted EBITDA is defined as net income
excluding income taxes, interest income and expense, depreciation
and amortization expense, non-cash gains or losses from foreign
currency exchange rate changes as well as other significant
non-cash items and items that can be considered non-recurring.
The Company believes that these non-GAAP
measures enable it to evaluate and compare more effectively the
results of its operations period over period and identify operating
trends by removing the effect of its capital structure from its
operating structure. In addition, the Company believes that
these measures are supplemental measurement tools used by analysts
and investors to help evaluate overall operating performance,
ability to pursue and service possible debt opportunities and make
future capital expenditures. Adjusted Net Income, Adjusted
EBITDA and Free Cash Flow do not represent funds available for
discretionary use and are not intended to represent or to be used
as a substitute for net income or net cash provided by operating
activities, as measured under U.S. generally accepted accounting
principles (“GAAP”).
See “Unaudited Non-GAAP Financial Measures”
below for additional information concerning non-GAAP financial
information, including a reconciliation of the non-GAAP financial
information presented in this press release to the most directly
comparable financial information presented in accordance with GAAP.
Non-GAAP financial information supplements and should be read
together with, and is not an alternative or substitute for, the
Company’s financial results reported in accordance with GAAP.
Because non-GAAP financial information is not standardized, it may
not be possible to compare these financial measures with other
companies’ non-GAAP financial measures.
SOURCE: Dril-Quip, Inc.
Raj Kumar, Vice President Finance and Chief
Accounting Officer, (713) 939-7711
Dril-Quip,
Inc. |
Comparative
Condensed Consolidated Income Statement |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Twelve months ended |
|
December 31, 2019 |
|
September 30, 2019 |
|
|
December 31, 2019 |
|
December 31, 2018 |
|
(In thousands, except per share data) |
Revenues: |
|
|
|
|
|
|
|
|
Products |
$ |
78,762 |
|
|
$ |
81,851 |
|
|
|
$ |
303,279 |
|
|
$ |
265,052 |
|
Services |
|
19,082 |
|
|
|
17,884 |
|
|
|
|
72,018 |
|
|
|
72,414 |
|
Leasing |
|
10,610 |
|
|
|
8,492 |
|
|
|
|
39,509 |
|
|
|
47,160 |
|
Total revenues |
|
108,454 |
|
|
|
108,227 |
|
|
|
|
414,806 |
|
|
|
384,626 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of sales |
|
75,741 |
|
|
|
76,023 |
|
|
|
|
295,007 |
|
|
|
293,573 |
|
Selling, general and administrative |
|
21,444 |
|
|
|
27,962 |
|
|
|
|
96,782 |
|
|
|
101,090 |
|
Engineering and product development |
|
4,798 |
|
|
|
3,754 |
|
|
|
|
17,329 |
|
|
|
20,297 |
|
Impairment, restructuring and other charges |
|
435 |
|
|
|
546 |
|
|
|
|
4,396 |
|
|
|
98,602 |
|
Gain on sale of assets |
|
(28 |
) |
|
|
(280 |
) |
|
|
|
(1,511 |
) |
|
|
(6,198 |
) |
Total costs and expenses |
|
102,390 |
|
|
|
108,005 |
|
|
|
|
412,003 |
|
|
|
507,364 |
|
Operating
income (loss) |
|
6,064 |
|
|
|
222 |
|
|
|
|
2,803 |
|
|
|
(122,738 |
) |
Interest
income |
|
1,347 |
|
|
|
1,906 |
|
|
|
|
7,940 |
|
|
|
8,040 |
|
Interest
expense |
|
(166 |
) |
|
|
(26 |
) |
|
|
|
(314 |
) |
|
|
(291 |
) |
Income tax
provision (benefit) |
|
(155 |
) |
|
|
3,412 |
|
|
|
|
8,709 |
|
|
|
(19,294 |
) |
Net income
(loss) |
$ |
7,400 |
|
|
$ |
(1,310 |
) |
|
|
$ |
1,720 |
|
|
$ |
(95,695 |
) |
Earnings
(loss) per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.21 |
|
|
$ |
(0.04 |
) |
|
|
$ |
0.05 |
|
|
$ |
(2.58 |
) |
Diluted |
$ |
0.21 |
|
|
$ |
(0.04 |
) |
|
|
$ |
0.05 |
|
|
$ |
(2.58 |
) |
Depreciation
and amortization |
$ |
8,865 |
|
|
$ |
8,304 |
|
|
|
$ |
34,020 |
|
|
$ |
35,312 |
|
Capital
expenditures |
$ |
2,881 |
|
|
$ |
4,022 |
|
|
|
$ |
11,501 |
|
|
$ |
32,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
35,873 |
|
|
|
35,559 |
|
|
|
|
35,839 |
|
|
|
37,075 |
|
Diluted |
|
36,101 |
|
|
|
35,559 |
|
|
|
|
36,152 |
|
|
|
37,075 |
|
|
|
|
|
|
|
|
|
|
Dril-Quip,
Inc. |
Comparative
Condensed Consolidated Balance Sheets |
(Unaudited) |
|
|
|
|
|
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
(In thousands) |
Assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
398,946 |
|
$ |
413,102 |
|
$ |
418,100 |
Other current assets |
|
481,543 |
|
|
465,617 |
|
|
434,881 |
PP&E, net |
|
258,497 |
|
|
259,423 |
|
|
274,123 |
Other assets |
|
67,579 |
|
|
67,493 |
|
|
65,406 |
Total
assets |
$ |
1,206,565 |
|
$ |
1,205,635 |
|
$ |
1,192,510 |
Liabilities and Equity: |
|
|
|
|
|
Current liabilities |
$ |
96,940 |
|
$ |
96,533 |
|
$ |
81,539 |
Deferred Income taxes |
|
4,150 |
|
|
2,259 |
|
|
2,466 |
Other long-term liabilities |
|
14,774 |
|
|
14,171 |
|
|
12,343 |
Total
liabilities |
|
115,864 |
|
|
112,963 |
|
|
96,348 |
Total
stockholders equity |
|
1,090,701 |
|
|
1,092,672 |
|
|
1,096,162 |
Total
liabilities and equity |
$ |
1,206,565 |
|
$ |
1,205,635 |
|
$ |
1,192,510 |
|
|
|
|
|
|
Dril-Quip, Inc.Unaudited
Non-GAAP Financial Measures
Reconciliation of Net Income (Loss) to
Adjusted Net Income and Adjusted Diluted Earnings
per Share
Adjusted Net Income and EPS: |
Three months ended |
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect on net income (after-tax) |
|
Impact on diluted earnings per share |
|
Effect on net income (after-tax) |
|
Impact on diluted earnings per share |
|
Effect on net income (after-tax) |
|
Impact on diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands, except per share amounts) |
Net income (loss) |
$ |
7,400 |
|
|
$ |
0.21 |
|
|
$ |
(1,310 |
) |
|
$ |
(0.04 |
) |
|
$ |
(74,912 |
) |
|
$ |
(2.09 |
) |
Adjustments
(after tax): |
|
|
|
|
|
|
|
|
|
|
|
Reverse the effect of foreign currency |
|
355 |
|
|
|
0.01 |
|
|
|
(903 |
) |
|
|
(0.03 |
) |
|
|
(156 |
) |
|
|
- |
|
Add back impairment and other charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
67,569 |
|
|
|
1.88 |
|
Restructuring costs, including severance |
|
344 |
|
|
|
0.01 |
|
|
|
432 |
|
|
|
0.01 |
|
|
|
6,894 |
|
|
|
0.19 |
|
Gain on sale of assets |
|
(22 |
) |
|
|
- |
|
|
|
(221 |
) |
|
|
(0.01 |
) |
|
|
(857 |
) |
|
|
(0.02 |
) |
Adjusted net
income (loss) |
$ |
8,077 |
|
|
$ |
0.23 |
|
|
$ |
(2,002 |
) |
|
$ |
(0.07 |
) |
|
$ |
(1,462 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income and EPS: |
Twelve months ended December 31, |
|
2019 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect on net income (after-tax) |
|
Impact on diluted earnings per share |
|
Effect on net income (after-tax) |
|
Impact on diluted earnings per share |
|
Effect on net income (after-tax) |
|
Impact on diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands, except per share amounts) |
Net income
(loss) |
$ |
1,720 |
|
|
$ |
0.05 |
|
|
$ |
(95,695 |
) |
|
$ |
(2.58 |
) |
|
$ |
(100,639 |
) |
|
$ |
(2.69 |
) |
Adjustments
(after tax): |
|
|
|
|
|
|
|
|
|
|
|
Reverse the effect of foreign currency |
|
(1,287 |
) |
|
|
(0.04 |
) |
|
|
(796 |
) |
|
|
(0.02 |
) |
|
|
6,733 |
|
|
|
0.18 |
|
Add back impairment and other charges |
|
- |
|
|
|
- |
|
|
|
67,569 |
|
|
|
1.82 |
|
|
|
39,629 |
|
|
|
1.06 |
|
Less one-time tax adjustments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
60,547 |
|
|
|
1.62 |
|
Restructuring costs, including severance |
|
3,473 |
|
|
|
0.10 |
|
|
|
10,326 |
|
|
|
0.28 |
|
|
|
3,548 |
|
|
|
0.09 |
|
Gain on sale of assets |
|
(1,194 |
) |
|
|
(0.03 |
) |
|
|
(4,896 |
) |
|
|
(0.13 |
) |
|
|
- |
|
|
|
- |
|
Adjusted net
income (loss) |
$ |
2,712 |
|
|
$ |
0.08 |
|
|
$ |
(23,491 |
) |
|
$ |
(0.63 |
) |
|
$ |
9,818 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) to
Adjusted EBITDA
Adjusted EBITDA: |
Three months ended |
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net income (loss) |
$ |
7,400 |
|
|
$ |
(1,310 |
) |
|
$ |
(74,912 |
) |
Add: |
|
|
|
|
|
Interest (income) expense |
|
(1,181 |
) |
|
|
(1,880 |
) |
|
|
(2,329 |
) |
Income tax expense (benefit) |
|
(155 |
) |
|
|
3,412 |
|
|
|
(21,585 |
) |
Depreciation and amortization expense |
|
8,865 |
|
|
|
8,304 |
|
|
|
9,346 |
|
Restructuring costs, including severance |
|
435 |
|
|
|
546 |
|
|
|
8,726 |
|
Long-lived asset, inventory and goodwill impairments |
|
- |
|
|
|
- |
|
|
|
85,531 |
|
Gain on sale of assets |
|
(28 |
) |
|
|
(280 |
) |
|
|
(1,085 |
) |
Foreign currency loss (gain) |
|
449 |
|
|
|
(1,143 |
) |
|
|
(197 |
) |
Stock compensation expense |
|
(25 |
) |
|
|
7,663 |
|
|
|
3,509 |
|
Adjusted
EBITDA |
$ |
15,760 |
|
|
$ |
15,312 |
|
|
$ |
7,004 |
|
|
|
|
|
|
|
Adjusted EBITDA: |
Year ended |
|
December 31, 2019 |
|
December 31, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net income
(loss) |
$ |
1,720 |
|
|
$ |
(95,695 |
) |
|
$ |
(100,639 |
) |
Add: |
|
|
|
|
|
Interest (income) expense |
|
(7,626 |
) |
|
|
(7,749 |
) |
|
|
(3,492 |
) |
Income tax expense (benefit) |
|
8,709 |
|
|
|
(19,294 |
) |
|
|
34,995 |
|
Depreciation and amortization expense |
|
34,020 |
|
|
|
35,312 |
|
|
|
40,974 |
|
Restructuring costs, including severance |
|
4,396 |
|
|
|
13,071 |
|
|
|
5,170 |
|
Long-lived asset, inventory and goodwill impairments |
|
- |
|
|
|
85,531 |
|
|
|
60,968 |
|
Gain on sale of assets |
|
(1,511 |
) |
|
|
(6,198 |
) |
|
|
- |
|
Foreign currency loss (gain) |
|
(1,630 |
) |
|
|
(1,007 |
) |
|
|
8,292 |
|
Stock compensation expense |
|
15,721 |
|
|
|
13,459 |
|
|
|
14,270 |
|
Adjusted
EBITDA |
$ |
53,799 |
|
|
$ |
17,430 |
|
|
$ |
60,538 |
|
|
|
|
|
|
|
Reconciliation of Net Cash Provided by
Operating Activities to Free Cash Flow
Free
Cash Flow: |
Three months ended |
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
Net cash provided by operating activities |
$ |
8,054 |
|
|
$ |
(4,026 |
) |
|
$ |
12,896 |
|
Less: |
|
|
|
|
|
Purchase of property, plant and equipment |
|
(2,881 |
) |
|
|
(4,022 |
) |
|
|
(6,394 |
) |
Free cash
flow |
$ |
5,173 |
|
|
$ |
(8,048 |
) |
|
$ |
6,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free
Cash Flow: |
Year ended December 31, |
|
2019 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net cash
provided by operating activities |
$ |
14,678 |
|
|
$ |
45,503 |
|
|
$ |
107,993 |
|
Less: |
|
|
|
|
|
Purchase of property, plant and equipment |
|
(11,501 |
) |
|
|
(32,061 |
) |
|
|
(27,622 |
) |
Free cash
flow |
$ |
3,177 |
|
|
$ |
13,442 |
|
|
$ |
80,371 |
|
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