Dril-Quip(US:DRQ)2024-05-02 20:05Financial Performance - Consolidated revenue for Q1 2024 was $110.3 million, a decrease of 12.7% sequentially and an increase of 21.4% year-over-year[4] - The company reported a net loss of $20.0 million, or a loss of $0.58 per share, compared to a net income of $1.8 million in Q4 2023[9] - Adjusted EBITDA for Q1 2024 was $10.2 million, a decrease of $6.4 million sequentially but an increase of $1.3 million year-over-year[9] - Adjusted net loss for the three months ended March 31, 2024, was $21,639 thousand, resulting in a diluted loss per share of $0.62, compared to an adjusted net income of $1,537 thousand and a diluted earnings per share of $0.04 for the previous quarter[28] - Adjusted EBITDA for the three months ended March 31, 2024, was $10,175 thousand, down from $16,546 thousand in the previous quarter, representing a decrease of approximately 38.4%[29] - Free cash flow for the three months ended March 31, 2024, was negative $8,861 thousand, compared to positive $14,546 thousand in the previous quarter, indicating a significant decline in cash generation[29] Operational Metrics - Net Subsea Product bookings totaled $41.1 million for the quarter[5] - Gross operating margin improved to 28.9%, up from 27.4% in Q4 2023 and 27.9% year-over-year[5] - SG&A expenses were $30.0 million, an increase of $0.2 million sequentially and $7.4 million year-over-year[7] - Engineering and product development expenses rose to $3.7 million, reflecting increased testing and qualifications[8] - Cash used in operations was $4.1 million, a decrease of $30.2 million sequentially and an increase of $48.8 million year-over-year[10] - Capital expenditures for Q1 2024 were $4.8 million, primarily for manufacturing equipment and rental tools[11] Balance Sheet and Assets - Total assets decreased from $1,028,181 thousand on December 31, 2023, to $1,021,027 thousand on March 31, 2024, a decline of approximately 0.7%[28] - Current liabilities increased from $117,703 thousand on December 31, 2023, to $133,556 thousand on March 31, 2024, an increase of approximately 13.5%[28] - Cash, cash equivalents, and restricted cash rose from $191,400 thousand to $202,300 thousand, an increase of about 5.7%[28] - Total stockholders' equity decreased from $881,260 thousand on December 31, 2023, to $857,363 thousand on March 31, 2024, a decline of approximately 2.7%[28] Other Financial Information - The company has suspended earnings guidance updates due to the pending merger with Innovex[12] - The company reported a foreign currency transaction loss of $1,895 thousand for the three months ended March 31, 2024, compared to a gain of $83 thousand in the previous quarter[29] - The company incurred acquisition costs of $19,046 thousand during the three months ended March 31, 2024, reflecting ongoing investment in growth initiatives[29] - Depreciation and amortization expense was $8,432 thousand for the three months ended March 31, 2024, slightly down from $8,487 thousand in the previous quarter[29]