2018 Q2 Form 10-Q Financial Statement

#000104289318000010 Filed on July 26, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $94.86M $127.9M
YoY Change -25.84% -10.19%
Cost Of Revenue $75.54M $87.55M
YoY Change -13.72% 9.6%
Gross Profit $19.32M $40.37M
YoY Change -52.14% -35.46%
Gross Profit Margin 20.37% 31.56%
Selling, General & Admin $22.87M $31.27M
YoY Change -26.86% 442.64%
% of Gross Profit 118.35% 77.45%
Research & Development $10.50M $10.30M
YoY Change 1.94% -11.21%
% of Gross Profit 54.34% 25.51%
Depreciation & Amortization $9.001M $12.88M
YoY Change -30.12% 66.74%
% of Gross Profit 46.58% 31.9%
Operating Expenses $22.87M $31.27M
YoY Change -26.86% 442.64%
Operating Profit -$3.748M -$1.114M
YoY Change 236.45% -102.46%
Interest Expense $151.0K $18.00K
YoY Change 738.89% 80.0%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$1.624M -$62.00K
YoY Change 2519.35% -100.14%
Income Tax $1.418M -$77.00K
% Of Pretax Income
Net Earnings -$3.042M $15.00K
YoY Change -20380.0% -99.96%
Net Earnings / Revenue -3.21% 0.01%
Basic Earnings Per Share -$0.08 $0.00
Diluted Earnings Per Share -$0.08 $0.00
COMMON SHARES
Basic Shares Outstanding 37.62M 37.53M shares
Diluted Shares Outstanding 37.62M 37.72M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $493.4M $437.0M
YoY Change 12.91% -11.12%
Cash & Equivalents $493.4M $437.0M
Short-Term Investments
Other Short-Term Assets $34.44M $35.83M
YoY Change -3.88% 14.55%
Inventory $264.1M $330.5M
Prepaid Expenses
Receivables $184.5M $221.6M
Other Receivables $0.00 $0.00
Total Short-Term Assets $976.4M $1.025B
YoY Change -4.73% -10.14%
LONG-TERM ASSETS
Property, Plant & Equipment $283.0M $314.6M
YoY Change -10.03% 7.06%
Goodwill $47.04M $47.88M
YoY Change -1.75%
Intangibles $36.14M $47.92M
YoY Change -24.58%
Long-Term Investments
YoY Change
Other Assets $15.06M $16.42M
YoY Change -8.33% 40.17%
Total Long-Term Assets $385.3M $442.0M
YoY Change -12.84% 43.86%
TOTAL ASSETS
Total Short-Term Assets $976.4M $1.025B
Total Long-Term Assets $385.3M $442.0M
Total Assets $1.362B $1.467B
YoY Change -7.17% 1.32%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $20.97M $24.36M
YoY Change -13.91% 19.92%
Accrued Expenses $30.40M $35.00M
YoY Change -13.14% 13.64%
Deferred Revenue $4.144M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $80.47M $86.25M
YoY Change -6.7% -0.24%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $2.720M
YoY Change
Total Long-Term Liabilities $2.720M $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $80.47M $86.25M
Total Long-Term Liabilities $2.720M $0.00
Total Liabilities $86.24M $88.60M
YoY Change -2.65% -0.85%
SHAREHOLDERS EQUITY
Retained Earnings $1.382B $1.501B
YoY Change -7.95% 1.38%
Common Stock $28.54M $13.03M
YoY Change 119.07% 3383.69%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.275B $1.378B
YoY Change
Total Liabilities & Shareholders Equity $1.362B $1.467B
YoY Change -7.17% 1.32%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income -$3.042M $15.00K
YoY Change -20380.0% -99.96%
Depreciation, Depletion And Amortization $9.001M $12.88M
YoY Change -30.12% 66.74%
Cash From Operating Activities $12.10M $27.20M
YoY Change -55.51% -75.36%
INVESTING ACTIVITIES
Capital Expenditures -$9.000M -$8.100M
YoY Change 11.11% 6.58%
Acquisitions
YoY Change
Other Investing Activities $10.40M -$1.300M
YoY Change -900.0%
Cash From Investing Activities $1.400M -$9.300M
YoY Change -115.05% 25.68%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -10.10M 0.000
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities 12.10M 27.20M
Cash From Investing Activities 1.400M -9.300M
Cash From Financing Activities -10.10M 0.000
Net Change In Cash 3.400M 17.90M
YoY Change -81.01% -77.37%
FREE CASH FLOW
Cash From Operating Activities $12.10M $27.20M
Capital Expenditures -$9.000M -$8.100M
Free Cash Flow $21.10M $35.30M
YoY Change -40.23% -70.08%

Facts In Submission

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NoncurrentAssets
385269000 USD
CY2017Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-1114000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-1984000 USD
CY2018Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-3748000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-9828000 USD
CY2017Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
25538000 USD
CY2018Q2 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
16920000 USD
CY2017Q4 us-gaap Other Assets Current
OtherAssetsCurrent
32653000 USD
CY2018Q2 us-gaap Other Assets Current
OtherAssetsCurrent
34441000 USD
CY2017Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
15613000 USD
CY2018Q2 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
15056000 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax
6740000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax
14599000 USD
CY2018Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax
-21666000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax
-8545000 USD
CY2017Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
2001000 USD
CY2018Q2 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
2720000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
19605000 USD
CY2017Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2018Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2017Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2018Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2017Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q2 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
us-gaap Proceeds From Sale Of Machinery And Equipment
ProceedsFromSaleOfMachineryAndEquipment
610000 USD
us-gaap Proceeds From Sale Of Machinery And Equipment
ProceedsFromSaleOfMachineryAndEquipment
10517000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
403000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
642000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
284247000 USD
CY2018Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
283040000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1400296000 USD
CY2018Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1381739000 USD
CY2018Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
82715000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
171222000 USD
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
37718000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
37706000 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
37615000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
37672000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
37528000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
37526000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
37615000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
37672000 shares
CY2018Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
25400000 USD
CY2017Q2 us-gaap Revenues
Revenues
127922000 USD
us-gaap Revenues
Revenues
247150000 USD
CY2018Q2 us-gaap Revenues
Revenues
94861000 USD
us-gaap Revenues
Revenues
194034000 USD
CY2017Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
31267000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
57075000 USD
CY2018Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
23739000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
51794000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
6783000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
7585000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
1294461000 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
1275447000 USD
CY2017Q4 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
41000000 USD
CY2018Q2 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
44700000 USD
CY2017Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
190000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
180000 shares
CY2018Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
us-gaap Revenue Recognition Leases
RevenueRecognitionLeases
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-align:left;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Lease revenues</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-align:left;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company earns lease revenues from the rental of running tools. Rental revenues are recognized within service revenues on a dayrate basis over the lease term.</font></div></div>
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-bottom:0px;padding-top:8px;text-align:left;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenues recognized under the over time method</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-align:left;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company uses the over time 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;</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; 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;">The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-align:left;text-indent:29px;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 to be recognized. 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 over time 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 Services
RevenueRecognitionSalesOfServices
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-align:left;text-indent:17px;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-align:left;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;">two</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; 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-align:left;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.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-align:left;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 over time 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. The contracts for these services are typically considered day-to-day.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Rework and reconditioning service revenues are recorded using the over time method based on the remaining steps that need to be completed as the refurbishment process is performed. The measurement of progress considers, among other things, the time necessary for completion of each step in the reconditioning plan, the materials to be purchased, labor and ordering procedures. We receive payment after the services have been performed by billing customers periodically (typically monthly).</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-bottom:0px;padding-top:8px;text-align:left;text-indent:17px;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-align:left;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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