2016 Q4 Form 10-Q Financial Statement

#000104289316000009 Filed on October 27, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q4
Revenue $106.1M $123.6M $201.6M
YoY Change -47.38% -38.61% -20.87%
Cost Of Revenue $77.79M $77.63M $108.4M
YoY Change -28.2% -28.21% -23.96%
Gross Profit $28.30M $46.01M $93.28M
YoY Change -69.66% -50.67% -16.95%
Gross Profit Margin 26.67% 37.21% 46.26%
Selling, General & Admin $21.70M $12.50M $20.20M
YoY Change 7.43% -27.64% -10.22%
% of Gross Profit 76.69% 27.18% 21.66%
Research & Development $11.30M $10.60M $12.80M
YoY Change -11.72% -9.4% 10.34%
% of Gross Profit 39.93% 23.04% 13.72%
Depreciation & Amortization $8.800M $7.592M $7.700M
YoY Change 14.29% -1.4% -8.33%
% of Gross Profit 31.1% 16.5% 8.25%
Operating Expenses $32.90M $12.50M $32.90M
YoY Change 0.0% -27.64% -3.52%
Operating Profit -$4.634M $22.93M $60.31M
YoY Change -107.68% -64.31% -22.91%
Interest Expense $1.100M $1.000K $400.0K
YoY Change 175.0% -75.0% 300.0%
% of Operating Profit 0.0% 0.66%
Other Income/Expense, Net
YoY Change
Pretax Income -$3.600M $23.88M $60.70M
YoY Change -105.93% -63.04% -22.48%
Income Tax -$4.900M $4.864M $12.30M
% Of Pretax Income 20.37% 20.26%
Net Earnings $1.302M $19.01M $48.35M
YoY Change -97.31% -62.56% -18.16%
Net Earnings / Revenue 1.23% 15.38% 23.98%
Basic Earnings Per Share $0.03 $0.51 $1.28
Diluted Earnings Per Share $0.03 $0.51 $1.28
COMMON SHARES
Basic Shares Outstanding 37.58M shares 37.37M shares 38.36M shares
Diluted Shares Outstanding 37.55M shares

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $423.5M $542.6M $381.3M
YoY Change 11.07% 36.68% 27.65%
Cash & Equivalents $423.5M $542.6M $381.3M
Short-Term Investments
Other Short-Term Assets $39.79M $16.99M $54.11M
YoY Change -26.46% -60.76% 41.23%
Inventory $355.4M $351.1M $344.5M
Prepaid Expenses
Receivables $213.5M $221.6M $319.8M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.057B $1.158B $1.124B
YoY Change -6.01% 2.14% -0.25%
LONG-TERM ASSETS
Property, Plant & Equipment $323.1M $290.1M $294.3M
YoY Change 9.82% -0.84% -4.93%
Goodwill $34.37M $0.00
YoY Change
Intangibles $38.01M $0.00
YoY Change
Long-Term Investments
YoY Change
Other Assets $15.88M $11.71M $9.701M
YoY Change 63.69% 0.22% -22.92%
Total Long-Term Assets $404.7M $304.0M $304.0M
YoY Change 33.14% -0.09% -5.64%
TOTAL ASSETS
Total Short-Term Assets $1.057B $1.158B $1.124B
Total Long-Term Assets $404.7M $304.0M $304.0M
Total Assets $1.461B $1.462B $1.428B
YoY Change 2.32% 1.66% -1.45%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $36.11M $23.67M $30.93M
YoY Change 16.73% -47.03% -42.54%
Accrued Expenses $28.90M $30.90M $30.80M
YoY Change -6.17% -16.03% -35.43%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $101.5M $86.78M $100.8M
YoY Change 0.66% -26.49% -49.25%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $0.00
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $101.5M $86.78M $100.8M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $105.0M $89.67M $103.8M
YoY Change 1.14% -26.7% -49.14%
SHAREHOLDERS EQUITY
Retained Earnings $1.501B $1.500B $1.425B
YoY Change 5.31% 6.42% 11.48%
Common Stock $5.843M $3.930M $378.0K
YoY Change 1445.77% 928.8% -97.76%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.356B $1.372B $1.324B
YoY Change
Total Liabilities & Shareholders Equity $1.461B $1.462B $1.428B
YoY Change 2.32% 1.66% -1.45%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q4
OPERATING ACTIVITIES
Net Income $1.302M $19.01M $48.35M
YoY Change -97.31% -62.56% -18.16%
Depreciation, Depletion And Amortization $8.800M $7.592M $7.700M
YoY Change 14.29% -1.4% -8.33%
Cash From Operating Activities $25.00M $58.60M $31.50M
YoY Change -20.63% 28.23% -32.55%
INVESTING ACTIVITIES
Capital Expenditures -$5.500M -$5.000M -$10.40M
YoY Change -47.12% -9.09% -7.96%
Acquisitions
YoY Change
Other Investing Activities -$132.4M $200.0K $200.0K
YoY Change -66300.0% 100.0% -60.0%
Cash From Investing Activities -$137.8M -$4.900M -$10.10M
YoY Change 1264.36% -10.91% -8.18%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.300M 500.0K -34.70M
YoY Change -103.75% -102.38% -28.75%
NET CHANGE
Cash From Operating Activities 25.00M 58.60M 31.50M
Cash From Investing Activities -137.8M -4.900M -10.10M
Cash From Financing Activities 1.300M 500.0K -34.70M
Net Change In Cash -111.5M 54.20M -13.30M
YoY Change 738.35% 182.29% 2.31%
FREE CASH FLOW
Cash From Operating Activities $25.00M $58.60M $31.50M
Capital Expenditures -$5.500M -$5.000M -$10.40M
Free Cash Flow $30.50M $63.60M $41.90M
YoY Change -27.21% 24.22% -27.76%

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0 shares
CY2015Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2016Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
us-gaap Proceeds From Sale Of Machinery And Equipment
ProceedsFromSaleOfMachineryAndEquipment
183000 USD
us-gaap Proceeds From Sale Of Machinery And Equipment
ProceedsFromSaleOfMachineryAndEquipment
281000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1952000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
940000 USD
CY2015Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
294251000 USD
CY2016Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
290139000 USD
CY2015Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1425344000 USD
CY2016Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1499934000 USD
CY2015Q3 us-gaap Revenues
Revenues
201402000 USD
us-gaap Revenues
Revenues
642680000 USD
CY2016Q3 us-gaap Revenues
Revenues
123640000 USD
us-gaap Revenues
Revenues
432640000 USD
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
137000 shares
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
38548000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
38789000 shares
CY2016Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
37554000 shares
CY2015Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
201000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
188000 shares
CY2016Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
183000 shares
CY2015Q3 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
157790000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
521413000 USD
CY2016Q3 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
101277000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
352519000 USD
CY2015Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
43612000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
121267000 USD
CY2016Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
22363000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
80121000 USD
CY2015Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
17280000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
67871000 USD
CY2016Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
12504000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
31487000 USD
CY2015Q3 us-gaap Share Based Compensation
ShareBasedCompensation
3300000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
9794000 USD
CY2016Q3 us-gaap Share Based Compensation
ShareBasedCompensation
3200000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
9442000 USD
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
1324458000 USD
CY2016Q3 us-gaap Stockholders Equity
StockholdersEquity
1372395000 USD
CY2015Q4 us-gaap Unbilled Receivables Not Billable At Balance Sheet Date Amount Expected To Be Collected Within One Year
UnbilledReceivablesNotBillableAtBalanceSheetDateAmountExpectedToBeCollectedWithinOneYear
70800000 USD
CY2016Q3 us-gaap Unbilled Receivables Not Billable At Balance Sheet Date Amount Expected To Be Collected Within One Year
UnbilledReceivablesNotBillableAtBalanceSheetDateAmountExpectedToBeCollectedWithinOneYear
66200000 USD
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
37699000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
38347000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
38601000 shares
CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
37371000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
37562000 shares
us-gaap Revenue Recognition Percentage Of Completion Method
RevenueRecognitionPercentageOfCompletionMethod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenues recognized under the percentage-of-completion method</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">the contracts call for products which are designed to customer specifications;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">the contracts contain specific terms as to milestones, progress billings and delivery dates; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">product requirements cannot be filled directly from the Company&#8217;s standard inventory.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs. Losses, if any, are recorded in full in the period they become known. Historically, the Company&#8217;s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Under the percentage-of-completion method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected within one year. </font></div></div>
us-gaap Revenue Recognition Sales Of Goods
RevenueRecognitionSalesOfGoods
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue Recognition</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Product revenues</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company recognizes product revenues from </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> methods:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">product revenues recognized under the percentage-of-completion method; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">product revenues from the sale of products that do not qualify for the percentage-of-completion method.</font></div></td></tr></table></div>
us-gaap Revenue Recognition Sales Of Services
RevenueRecognitionSalesOfServices
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Service revenues</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company recognizes service revenues from </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> sources:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">technical advisory assistance;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">rental of running tools; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">rework and reconditioning of customer-owned Dril-Quip products.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company&#8217;s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer&#8217;s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company&#8217;s technical advisory assistance services. The customer may use a third party or their own personnel.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company&#8217;s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities.</font></div></div>

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