| Dril-Quip, Inc. | |||
| Ticker: | DRQ | 13550 Hempstead Highway | |
| Exchange: | New York Stock Exchange | Houston, TX 77040 | |
| Industry: | Manufacturing (SIC Code 3533) | (713) 939-7711 | |
| # of Employees: | 926 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/12/97 | |
| U.S. Shares: | 5,000,000 | Offer Date: | 10/22/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $20.00 - $22.00 | |
| Primary Shares: | 2,500,000 | Offer Price: | $24.00 | |
| Secondary Shares: | 2,500,000 | Gross Spread: | $1.68 | |
| Offering Amount: | $105,000,000 | Selling: | $1.03 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| Donaldson, Lufkin & Jenrette Securities Corp. | Co-manager | (212) 371-0641 |
| Issuer's Law Firm: | Baker & Botts |
| Bank's Law Firm: | Andrews & Kurth |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | American Securities Transfer, Inc |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $115.86 | $34.22 | $25.16 | Assets: | $113.91 |
| Net Income: | $9.12 | $2.26 | $1.73 | Curr Assets: | $81.99 |
| EPS: | $9.12 | $2.26 | $1.73 | Liabilities: | $61.97 |
| Prior EPS: | $6.59 | $0.75 | $0.47 | Curr Liabilities: | $31.03 |
| Cash Flow/Oper: | $5.18 | $0.89 | $0.00 | Equity: | $51.94 |
| Cash Flow/Fin: | $1.26 | -$1.84 | -$1.40 | Cash: | $1.54 |
| Cash Flow/Inv: | -$7.01 | -$1.84 | Working Cap: | $50.96 | |
| Business Description |
| The company is one of the world's leading manufacturers of highly engineered offshore drilling and production equipment which is well suited for use in deepwater, harsh environment and severe service applications. The Company designs and manufactures subsea equipment, surface equipment and offshore rig equipment for use by major integrated, large independent and foreign national oil and gas companies in offshore areas throughout the world. The Company's principal products consist of subsea and surface wellheads, subsea and surface production trees, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, wellhead connectors and diverters. The Company also provides installation and reconditioning services and rents running tools for use in connection with the installation and retrieval of its products. In 1996, the Company derived 82.1% of its revenues from the sale of its products and 17.9% of its revenues from services. |
| Competition |
| The Company faces significant competition from other manufacturers of drilling and production equipment. Several of its primary competitors are diversified multinational companies with substantially larger operating staffs and greater capital resources than those of the Company and which, in some instances, have been engaged in the manufacturing business for a much longer time than the Company. |
| Business Plan |
| The company's goal is to expand its existing market position in the offshore oil and gas equipment and services sector while at the same time increasing its earnings and cash flow per share to enhance overall stockholder. Key elements of the company's strategy for achieving this goal are to: (I) Continue to Develop New Products, (ii) Increase Manufacturing Capacity, (iii) Continue to Reduce Costs and Increase Operational Efficiencies, (iv) Continue Expansion into Selected International Markets and (v) Capitalize on Strong Balance Sheet. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to increase manufacturing capacity, improve and expand facilities, and manufacture additional running tools for rental. |
| Officer Name | Title | Age |
| Jerry M. Brooks | Chief Accounting Officer | 45 |
| Larry E. Reimert | Co-Chairman of the Board and Director | 50 |
| J. Mike Walker | Co-Chairman of the Board and Director | 54 |
| Gary D. Smith | Co-Chairman of the Board and Director | 54 |