Mon, Jul 8, 8:17 PM (61 days ago)
Dril-Quip, Inc. filed a Form 10-K/A for the fiscal year ended December 31, 2023, to restate its Consolidated Financial Statements for the fiscal year ended December 31, 2021, due to a misclassification error. Inventory write-downs totaling approximately $67 million were incorrectly classified under "Restructuring and other charges" instead of "Cost of sales." This amendment affects the financial statements for 2021, which should no longer be relied upon. The restatement also addresses other immaterial presentation errors. The company identified a material weakness in its internal control over financial reporting, specifically related to the classification of inventory write-downs. Consequently, management concluded that its disclosure controls and procedures were not effective as of December 31, 2023. Dril-Quip is implementing a remediation plan to address this deficiency. For the year ended December 31, 2023, Dril-Quip reported revenues of $424.1 million, an increase of 17.2% from 2022. Cost of sales increased by 16.0% to $308.5 million. The company also incurred $6.5 million in acquisition costs related to the purchase of Great North Wellhead and Frac. The fair value of the contingent consideration for this acquisition was reduced by $2.3 million.