Dril-Quip(US:DRQ)2024-08-01 20:05Financial Performance - Revenue for Q2 2024 was $120.3 million, a 9.1% increase sequentially and a 34.3% increase year-over-year[2]. - Net loss for Q2 2024 was $1.8 million, an improvement of $18.2 million sequentially and a decrease of $5.3 million year-over-year[2][8]. - Adjusted EBITDA for Q2 2024 was $16.5 million, up $6.3 million sequentially and $7.7 million year-over-year, with margins expanding to 13.7%[2][8]. - Gross margin for Q2 2024 was 30.8%, an increase of 194 basis points sequentially and 417 basis points year-over-year[2][8]. - Total revenues for the three months ended June 30, 2024, were $120,342,000, an increase of 9.4% from $110,297,000 in the same period last year[24]. - Net loss for the period was $(1,812,000), a significant improvement compared to a net loss of $(19,984,000) in the prior year[24]. - Adjusted EBITDA for the three months ended June 30, 2024, was $16,515,000, up from $10,175,000 in the same period last year, reflecting a 62.5% increase[29]. - Basic and diluted net income (loss) per share for the quarter was $(0.05), improving from $(0.58) in the same quarter last year[24]. Operational Metrics - Subsea Products orders booked were $54.1 million, a 25% sequential increase, but net bookings were $12.8 million after a $39.6 million project cancellation[2][5]. - Cash used in operations was $9.3 million for Q2 2024, a decrease of $5.2 million sequentially and $20.6 million year-over-year[9]. - Free cash flow for the three months ended June 30, 2024, was $(15,460,000), compared to $(8,861,000) in the previous year, indicating a decline in cash generation[30]. - The company reported a foreign currency transaction loss of $6,671,000 for the quarter, compared to a gain of $(1,895,000) in the prior year[24]. - The company incurred acquisition costs of $1,695,000 during the quarter, a significant decrease from $19,046,000 in the previous year[24]. Capital Expenditures and Assets - Capital expenditures for Q2 2024 were $6.2 million, primarily for manufacturing equipment and rental tools[9]. - Capital expenditures for the quarter were $6,156,000, an increase from $4,757,000 in the same period last year[24]. - Total assets decreased to $1,008,157,000 as of June 30, 2024, from $1,028,181,000 at the end of the previous year[26]. - Current liabilities increased to $126,429,000 from $117,703,000, reflecting a rise in short-term obligations[26]. Strategic Developments - The Well Construction segment saw a proforma year-on-year growth of 25%, driven by acquisitions and increased offshore activity[3][4]. - The merger with Innovex Downhole Solutions is on track to close in Q3 2024, expected to provide significant benefits including scale and synergies[2][3][11]. - The company has suspended earnings guidance updates due to the pending merger with Innovex[10].