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Dec 31, 2021
Dril-Quip Q4 2021 Earnings Report
Reported operational and financial results, with revenue down sequentially due to lower subsea product volumes and downhole tool product revenues. A net loss was reported, attributed primarily to restructuring and other charges.
Key Takeaways
Dril-Quip reported Q4 2021 revenue of $77.9 million and a net loss of $63.4 million, or $1.81 per share. The company's results were impacted by restructuring charges and other factors. However, new orders were strong at $79.8 million, and the company made progress on its strategic initiatives.
Delivered fourth quarter revenue of $77.9 million.
Reported net cash provided by operating activities of $4.7 million.
Free cash flow was $2.6 million, inclusive of $2.1 million of capital expenditures.
Booked $79.8 million in new orders.
Revenue by Segment
Forward Guidance
Dril-Quip anticipates an upward trend in orders during 2022, expecting a nearly 20% increase compared to the full year of 2021. Streamlining leadership and operations around focused business units is expected to enhance customer focus and expand operating margins. The company also plans to rationalize its footprint, potentially selling excess property to yield $40 million to $60 million.
Positive Outlook
- Expecting a nearly 20% increase in orders compared to the full year of 2021.
- Streamlining leadership and operations around more focused and integrated business units.
- Eliminating barriers will enhance our customer focus on delivering best-in-class products and services.
- Expanding operating margins as we eliminate the waste that can often happen in functionally structured organizations.
- Setting up a more disciplined and focused capital allocation strategy.
Challenges Ahead
- More footprint than required even when we look out to a full market recovery.
- Early stages of an evaluation, but believe that once rationalized and leaned out around our new business model, we will be able to sell approximately 120 acres of that campus over the next few years.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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