Dril-Quip, Inc.announced net income of $28.1 million, or $0.70 per diluted share for the three months ended December 31, 2011, versus net income of $20.9 million, or $0.52 per diluted share for the fourth quarter of 2010.
Total revenues were $171.6 million during the quarter ended December 31, 2011 compared to $141.6 million for the same period in 2010, an increase of $30.0 million or approximately 21%.
The increase in revenues resulted primarily from increased sales of $20.6 million in subsea equipment and $8.8 million in service revenues. The fourth quarter 2011 results include a pre-tax charge of $4.7 million related to severance payments payable to J. Mike Walker, the Company’s former Chairman of the Board and Chief Executive Officer, in connection with his retirement.
The fourth quarter 2010 results include a pre-tax charge of $6.9 million resulting from the termination of Larry E. Reimert’s employment as a Co-Chief Executive Officer of the Company. In addition, the fourth quarter 2010 results include a pre-tax charge of $1.9 million related to the settlement of assessments regarding state taxes on the importation of goods into the State of Rio de Janiero, Brazil.
For the twelve months ended December 31, 2011, net income was $95.3 million, or $2.36 per diluted share, compared with net income of $102.2 million, or $2.55 per diluted share, for the same period in 2010. Revenues for the twelve months ended December 31, 2011 were $601.3 million, compared to $566.3 million for the same period in 2010.
The full year results for 2011 include pre-tax charges of $4.7 million related to Mr. Walker’s retirement and the 2010 results include pre-tax charges of $6.9 million related to the termination of Mr. Reimert’s employment contract and pre-tax charges of $7.8 million related to the settlement of state tax assessments regarding the importation of goods into the State of Rio de Janiero, Brazil.
In addition, the Company announced that its backlog at December 31, 2011 was approximately $716 million, compared to its December 31, 2010 backlog of approximately $627 million. Based upon current market conditions and excluding any unusual or special charges, the Company expects its earnings per diluted share for 2012 to approximate $2.60 to $2.80. For the first quarter of 2012, the Company expects its earnings to approximate $0.60 to $0.70 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.
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Subsea World News Staff , February 28, 2012; Image: Dril-Quip