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Dril-Quip, Inc. Announces Results For Fourth Quarter And Year End 2012

HOUSTON, Feb. 28, 2013 /PRNewswire/ -- Dril-Quip, Inc. (NYSE: DRQ) today announced net income of $31.0 million, or $0.76 per diluted share, for the three months ended December 31, 2012, versus net income of $28.1 million, or $0.70 per diluted share, for the fourth quarter of 2011.  Total revenues were $188.5 million during the quarter ended December 31, 2012 compared to $171.6 million for the same period in 2011, an increase of $16.9 million or approximately 10%. The increase in revenues resulted from increased product revenues of $11.7 million and increased service revenues of $5.2 million.

For the year ended December 31, 2012, net income was $119.2 million, or $2.94 per diluted share, compared with net income of $95.3 million, or $2.36 per diluted share, for 2011. Total revenues for the year ended December 31, 2012 were $733.0 million, compared to $601.3 million for the same period in 2011, an increase of approximately 22%.

In addition, the Company announced that its backlog at December 31, 2012 was approximately $881 million, compared to its December 31, 2011 backlog of approximately $716 million. Included in the Company's December 31, 2012 backlog are $105 million of purchase orders related to its new four-year contract with Petrobras for the supply of subsea wellhead systems and associated tools to be used in the drilling of deepwater wells offshore Brazil. This contract was announced in August 2012.

Based upon current market conditions and excluding any unusual or special charges, the Company expects its earnings per diluted share for 2013 to approximate $3.40 to $3.60. For the first quarter of 2013, the Company expects its earnings to approximate $0.73 to $0.83 per diluted share, 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
December 31,


Year ended
December 31,


2012

2011


2012

2011

Revenues.

$ 188,477

$ 171,646


$ 733,031

$ 601,342

Cost and expenses:






Cost of sales.

114,470

103,248


451,666

361,848

Selling, general and administrative

23,604

17,938


82,218

70,510

Engineering and product development

8,815

8,901


37,455

34,626

Special items

--

4,719


--

4,719








146,889

134,806


571,339

471,703







Operating Income

41,588

36,840


161,692

129,639

Interest income

133

149


462

418

Interest expense

(11)

(16)


(32)

(53)

Income before income taxes

41,710

36,973


162,122

130,004

Income tax provision

10,758

8,849


42,913

34,737






Net income

$   30,952

$   28,124


$ 119,209

$   95,267







Diluted earnings per share

$       0.76

$       0.70


$       2.94

$       2.36







Weighted average shares–diluted

40,644

40,351


40,523

40,322







Depreciation and amortization

$     6,814

$     6,040


$   26,224

$   23,013







Capital expenditures

$   10,167

$   11,099


$   50,773

$   56,213







SOURCE Dril-Quip, Inc.

Jerry M. Brooks, Chief Financial Officer, +1-713-939-7711

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