Innovex Announces Third-Quarter 2024 Results

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HOUSTON, TX / ACCESSWIRE / November 7, 2024 / Innovex International, Inc. (NYSE:INVX) ("Innovex," "we" or the "Company") today announced financial and operating results for the third quarter of 2024.

Third Quarter Highlights

  • Closed transformative merger between Innovex Downhole Solutions, Inc. and former Dril-Quip, Inc., positioning the combined business for long-term success

  • Revenue of $152 million, up 17% quarter over quarter

  • Net Income1 of $83 million, up 766% quarter over quarter, and Net Income Margin of 54%

  • Diluted earnings per share of $1.99

  • Adjusted EBITDA2 of $27 million and Adjusted EBITDA margin2 of 18%

  • Net Cash Provided by Operating Activities of $22 million

  • Free Cash Flow2 of $20 million

  • Loss from Operations of $13 million

  • Return on Capital Employed2 of 9%

  • Achieved 100% of the year one synergy target of $15 million annualized savings

  1. Due to the equity value of legacy Dril-Quip on the closing date of the merger relative to the fair value of the assets, the Company recorded a bargain purchase gain of approximately $93 million during the third quarter of 2024. This drove the material variance in (Loss) Income from Operations and Net Income during the period.

  2. Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Return on Capital Employed ("ROCE") are non-GAAP measures. Reconciliations of Adjusted EBITDA to net income, Adjusted Free Cash Flow to net cash provided by operating activities and ROCE to income from operations, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation tables accompanying this release.

Adam Anderson, Chief Executive Officer, commented, "I am excited to introduce Innovex International to the public equity markets. Our vision is to create a unique energy industrial platform focused on driving exceptional value and service to our customers, and exceptional absolute returns for our shareholders. Since inception, legacy Innovex has done just that: delivering a revenue per share CAGR of 22% and a return on capital employed ("ROCE") of 17%. These results are well ahead of both our peers and the S&P 500, which is our ultimate benchmark. This outcome is the product of our vision and our culture. Our culture, which we call ‘No Barriers,' drives customer focus and relentless innovation while maintaining flexibility through a capital light business model. We believe the combination with Dril-Quip unlocks transformational opportunities to grow our market share, expand our margins, delight our customers, and deliver value to our shareholders.

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