Dril-Quip(DRQ) - 2024 Q4 - Annual Results

Financial Performance - Revenue for Q4 2024 was $251 million, representing a 65% increase quarter over quarter[5] - Net income for Q4 2024 was $32 million, with a net income margin of 13%[5] - Adjusted EBITDA for Q4 2024 was $49 million, yielding an adjusted EBITDA margin of 20%[5] - Revenues for the three months ended December 31, 2024, were $250,687 thousand, a 64.9% increase from $151,817 thousand in the previous quarter and a 88.4% increase from $133,190 thousand in the same quarter last year[23] - Net income for the twelve months ended December 31, 2024, was $140,325 thousand, compared to $73,926 thousand for the same period last year, representing an increase of 89.5%[23] - Adjusted EBITDA for the three months ended December 31, 2024, was $49.063 million, up from $32.332 million in the same period of 2023, reflecting a 52.0% increase[34] - Free cash flow for the twelve months ended December 31, 2024, was $79.845 million, compared to $60.377 million in 2023, marking a 32.2% increase[40] Cash Flow and Liquidity - Free cash flow generated in Q4 2024 was $29 million, with net cash provided by operating activities at $36 million[5][10] - The company reported a net cash provided by operating activities of $36,345 thousand for the three months ended December 31, 2024, compared to $21,722 thousand in the previous quarter, an increase of 67.5%[27] - The net cash provided by operating activities for the three months ended December 31, 2024, was $36.345 million, compared to $21.385 million in the same period of 2023, showing a growth of 70.3%[40] Debt and Liabilities - Innovex's total debt at the end of Q4 2024 was $35 million, representing 0.26x trailing twelve month adjusted EBITDA[10] - Total liabilities increased to $239,327 thousand as of December 31, 2024, from $228,432 thousand as of September 30, 2024, a rise of 3.9%[25] Shareholder Returns - The company announced a $100 million share buyback authorization to enhance shareholder returns[5][16] Growth and Acquisitions - The company achieved $30 million in annualized merger cost synergies just five months post-merger[5] - The company acquired Downhole Well Solutions, enhancing its market position in proprietary drilling optimization tools[5] - The company incurred acquisition costs of $7,808 thousand in the three months ended December 31, 2024, compared to $20,296 thousand in the previous quarter, reflecting a decrease of 61.5%[23] - The company incurred acquisition costs of $33.300 million for the twelve months ended December 31, 2024, compared to $2.327 million in 2023, indicating a significant increase in acquisition-related expenses[38] Assets and Equity - Total assets as of December 31, 2024, were $1,197,483 thousand, up from $1,132,783 thousand as of September 30, 2024, indicating a growth of 5.7%[25] - The ending equity for the twelve months ended December 31, 2024, was $958.156 million, a substantial increase from $328.921 million in 2023, reflecting a growth of 191.5%[38] Revenue Breakdown - Revenue from North America Onshore for the three months ended December 31, 2024, was $102.774 million, up from $85.348 million in the same period of 2023, a growth of 20.5%[42] - International & Offshore revenue for the three months ended December 31, 2024, was $147.913 million, significantly higher than $47.842 million in the same period of 2023, representing a 208.5% increase[42] Earnings Per Share - Basic earnings per share for the three months ended December 31, 2024, were $0.47, down from $2.03 in the previous quarter, indicating a significant decrease due to the prior quarter's exceptional performance[23]