Dril-Quip Reports Q2 Loss Amid Restructuring

Ticker: INVX · Form: 10-Q · Filed: Aug 7, 2024 · CIK: 1042893

Sentiment: bearish

Topics: earnings, restructuring, loss, oil-gas-equipment

TL;DR

**Dril-Quip posts $18.5M loss for H1 2024, watch restructuring charges.**

AI Summary

Dril-Quip Inc. reported its Q2 2024 results, showing a net loss of $18.5 million for the six months ended June 30, 2024. The company's revenue for the same period was not explicitly stated but was impacted by restructuring and other charges. Dril-Quip is focused on its Well Construction and Subsea Products segments, with specific dates for financial reporting and segment performance noted in the filing.

Why It Matters

This filing provides insight into Dril-Quip's financial performance and strategic focus, which can influence investor decisions and market perception of the oil and gas equipment sector.

Risk Assessment

Risk Level: medium — The company reported a net loss, indicating potential financial instability or significant investment in restructuring, which carries inherent risks.

Key Numbers

Key Players & Entities

FAQ

What was Dril-Quip's total revenue for the six months ended June 30, 2024?

The filing does not explicitly state the total revenue for the six months ended June 30, 2024, but it does mention restructuring and other charges impacting financial results.

What were the specific restructuring and other charges incurred by Dril-Quip?

The filing references 'Restructuring and Other Charges' in relation to the period ending June 30, 2024, but does not provide a specific dollar amount for these charges in the provided text.

Which operating segments are highlighted in the Q2 2024 filing?

The filing highlights 'WellConstruction' and 'SubseaProducts' as key operating segments for the period January 1, 2024, to June 30, 2024.

What was the net loss for the quarter ended June 30, 2024?

The filing states a net loss of $18.5 million for the six months ended June 30, 2024, but the specific net loss for the three months ended June 30, 2024, is not detailed in the provided text.

What is Dril-Quip's fiscal year end?

Dril-Quip's fiscal year ends on December 31.

Filing Stats: 4,407 words · 18 min read · ~15 pages · Grade level 15 · Accepted 2024-08-07 16:05:28

Key Financial Figures

Filing Documents

Notes to Financial Statements

Notes to Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 31 PART II Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 5. Other Information 33 Item 6. Index to Exhibits 34

Signatures

Signatures 35 Table of Contents

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements DRIL-QUIP, INC. CONDENSED CONSOLIDA TED BALANCE SHEETS (UNAUDITED) June 30, 2024 December 31, 2023 (In thousands, except per share data) ASSETS Current assets: Cash and cash equivalents $ 185,629 $ 187,323 Restricted cash 3,590 4,077 Short-term investments - 25,908 Trade receivables, net 154,183 135,569 Unbilled receivables 132,979 148,429 Inventories 204,733 194,593 Prepaid expenses 16,917 14,119 Other current assets 8,006 9,699 Assets held for sale 1,513 - Total current assets 707,550 719,717 Operating lease right of use assets 16,779 16,343 Property, plant and equipment, net 211,117 217,631 Deferred income taxes 10,242 8,989 Goodwill 16,122 16,654 Intangible assets 38,850 41,941 Other assets 7,497 6,906 Total assets $ 1,008,157 $ 1,028,181 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 60,833 $ 60,160 Accrued income taxes 3,291 5,942 Contract liabilities 7,960 7,583 Accrued compensation 14,564 14,035 Operating lease liabilities 2,454 2,118 Other accrued liabilities 37,327 27,865 Total current liabilities 126,429 117,703 Deferred income taxes 9,189 10,564 Income tax payable 472 346 Operating lease liabilities, long-term 14,944 14,554 Other long-term liabilities 4,599 3,754 Total liabilities 155,633 146,921 Contingencies (Note 14) Stockholders' equity: Preferred stock: 10,000,000 shares authorized at $ 0.01 par value ( none issued) - - Common stock: 100,000,000 shares authorized at $ 0.01 par value, 34,452,230 and 34,386,577 shares issued and outstanding at June 30, 2024 and December 31, 2023 343 343 Additional paid-in capital 106,403 100,289 Retained earnings 928,977 950,719 Accumulated other comprehensive losses ( 183,199 ) ( 170,091 ) Total stockholders' equi

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