Innovex International, Inc 8-K, filed Oct 29, 2026
Innovex International, Inc. (INVX)
About this 8-K
Innovex International, Inc filed this 8-K on October 29, 2026.
Innovex reported third-quarter revenue of $265 million, net income of $26 million and Adjusted EBITDA of $55 million; it ended with $189 million of cash, no bank debt, and guided Q4 2026 revenue to $260 - $270 million. AI summary
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(Address of principal executive offices) |
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(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading symbol(s) |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company |
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☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
Item 2.02 |
Results of Operations and Financial Condition. |
On October 29, 2026, Innovex International, Inc. (the “Company”) issued a press release announcing its results for the quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The Company’s press release announcing its results for the quarter ended September 30, 2026 contain certain non-GAAP financial measures (as defined under the Securities and Exchange Commission’s Regulation G). Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles, or GAAP. The Company has provided reconciliations within the press release of the non-GAAP measures to the most directly comparable GAAP financial measure.
The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.
Item 7.01 |
Regulation FD Disclosure. |
On October 29, 2026, the Company issued a press release announcing its results for the quarter ended September 30, 2026. A copy of the press release is set forth in Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 7.01, is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.
The Company announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, and on the Company’s investor relations website (https://investors.innovex-inc.com) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits.
Exhibit No. |
Description |
99.1 |
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104 |
Cover Page Interactive Data File (formatted as inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Innovex International, Inc. |
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Date: October 29, 2026 |
By: |
/s/ Kendal Reed |
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Kendal Reed |
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Chief Financial Officer |
Innovex Announces Third Quarter 2026 Results
HOUSTON, October 29, 2026 – Innovex International, Inc. (NYSE: INVX) (“Innovex,” the “Company” or “we”) today announced financial and operating results for the third quarter of 2026.
Third Quarter Highlights
Adam Anderson, CEO, commented, “We delivered a strong third quarter as the investments we have made in our technology portfolio and global operating platform continue to drive profitable growth. Our U.S. Land business benefited from increased activity and modest share gains—with particular success in our cementing tool business. Our subsea backlog continued to grow in the quarter, which should translate into meaningful growth in 2027 and beyond. Despite regional disruptions related to the ongoing conflict in Iran, our Middle East business delivered a solid quarter, and we accelerated investment in new product qualifications which will support future growth. We re-entered Venezuela during the quarter as activity began to recover, and we see a significant opportunity to leverage the strength of our broad portfolio. Importantly, our capital-light business model allows us to participate in this growth without making significant fixed investments in the country. Overall, we remain encouraged by the momentum across our business and believe Innovex is well positioned to continue gaining market share while creating long-term value through innovation, operational execution, and disciplined growth.”
Kendal Reed, CFO, commented, “Our third quarter results demonstrate the strength of Innovex's capital-light business model and disciplined approach to capital allocation. We generated $39 million of net cash provided by operating activities, $32 million of Free Cash Flow and ended the quarter with $189 million of cash and cash equivalents and no bank debt, providing significant financial flexibility to pursue both organic and inorganic growth opportunities. Supported by a strong balance sheet, healthy liquidity position, and active pipeline of opportunities, we remain well positioned to drive long-term shareholder value.”
Financial Summary
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Three months ended |
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(in thousands) |
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September 30, |
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June 30, |
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September 30, |
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Revenue |
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$ |
265,054 |
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$ |
244,896 |
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$ |
240,000 |
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Net income |
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26,286 |
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25,031 |
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39,228 |
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Net income (loss) % revenue |
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10 |
% |
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10 |
% |
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16 |
% |
Adjusted EBITDA (1) |
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55,400 |
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47,997 |
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43,613 |
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Adjusted EBITDA Margin (1) |
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21 |
% |
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20 |
% |
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18 |
% |
Net cash provided by operating activities |
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38,819 |
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37,028 |
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48,374 |
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Free Cash Flow (1) |
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32,390 |
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30,387 |
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36,522 |
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Income (loss) from operations |
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32,326 |
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33,782 |
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62,284 |
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Twelve Months Ended |
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September 30, |
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December 31, |
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September 30, |
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ROCE (1) |
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10 |
% |
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10 |
% |
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13 |
% |
(1) Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Return on Capital Employed (“ROCE”) are non-GAAP financial measures. See definition of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables below.
Operational & Financial Results
Kendal Reed, CFO, continued, “Operational execution remained strong throughout the third quarter even as we supported growing activity across key international markets. During the quarter, our teams efficiently executed several critical programs while maintaining high standards of safety and customer responsiveness. While project timing and geopolitical uncertainty may continue to create quarter-to-quarter variability, we remain encouraged by the breadth of opportunities developing across our portfolio and believe the underlying trajectory of the business remains positive.”
Adam Anderson, CEO, concluded, “We are encouraged by the momentum across our platform. In U.S. Land, we won meaningful awards with two large operators that expanded our leading market share position in cementing tools in the Lower 48. In US Offshore, we successfully began the installation of our industry leading 20K wellhead system, demonstrating our technology leadership as well as our exceptional execution capabilities in frontier deepwater technologies. In addition, we secured two follow-on subsea awards in Malaysia, a long-term subsea wellhead contract in Indonesia, and a significant fishing contract in the North Sea that displaces the incumbent supplier. In the Middle East, we advanced qualification efforts for key technologies and secured our first direct corporate purchase agreement with a major national oil company. Over the coming quarters we expect direct awards to increase— bypassing local agents, expanding our margins, and bringing us even closer to our customers. These successes demonstrate that Innovex is entering a new phase—one where our global platform increasingly enables technology deployments across geographies, applications, and customers. We remain focused on converting those advantages into sustainable, profitable growth while maintaining our discipline around execution and capital allocation.”
Balance Sheet, Debt, Cash Flow & Other
Net cash provided by operating activities was $39 million, while capital expenditures totaled $6 million (approximately 2.4% of revenue) for the third quarter of 2026.
Innovex generated Free Cash Flow of $32 million during the third quarter of 2026 and ended the quarter with approximately $189 million of cash and cash equivalents and no bank debt.
Innovex maintains a strong liquidity position and disciplined balance sheet to preserve flexibility and support high-return capital allocation opportunities. We continue to focus on M&A opportunities with strong quantitative and qualitative characteristics.
Return on Capital Employed (“ROCE”)
Innovex’s efficient capital allocation and capital-light business model enable the Company to generate strong returns on its invested capital. Income from operations for the twelve months ended September 30, 2026 was $70 million. Return on Capital Employed (“ROCE”) for the twelve months ended September 30, 2026 was 10%. We remain focused on capital efficiency, which we believe is a key driver of sustainable value creation for our stockholders.
Q4 2026 Guidance
Looking to the fourth quarter of 2026, Innovex expects to generate $260 - $270 million in total revenue and Adjusted EBITDA of $53 - $58 million.
The Company is unable to provide a reconciliation of Adjusted EBITDA guidance to the most directly comparable
GAAP measure without unreasonable effort due to the inherent difficulty in forecasting the timing and magnitude of
items that have not yet occurred.
Conference Call Details
Management will host a conference call and a webcast to discuss the financial results on October 30, 2026, at 9:00 a.m. Eastern Time / 8:00 a.m. Central Time. The call will be open to all interested parties and may include forward-looking statements. To access the call, please dial in approximately ten minutes prior to the start time.
Date / Time: October 30, 2026 – 9:00 a.m. Eastern Time / 8:00 a.m. Central Time
Webcast: https://events.q4inc.com/attendee/892531537
U.S. Toll-Free Dial-In: +1 (833) 461-5787
U.S. Local Dial-In: +1 (585) 542-9983
Meeting ID: 892531537
A replay of the webcast will be made available shortly after the call and may be accessed through the Investors section of the Company’s website.
About Innovex International, Inc.
Innovex International, Inc. (NYSE: INVX) is a Houston-based company established in 2024 following the merger of Dril-Quip, Inc. and Innovex Downhole Solutions, Inc.
Innovex’s comprehensive portfolio extends throughout the lifecycle of the well, and innovative product integration ensures seamless transitions from one well phase to the next, driving efficiency, lowering costs, and reducing the rig site service footprint for the customer.
With locations throughout North America, Latin America, Europe, the Middle East, and Asia, no matter where you need us, our team is readily available with technical expertise, conventional and innovative technologies, and ever-present customer service.
Forward-Looking Statements
Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Innovex’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “plan,” “should,” “estimate,” “continue,” “potential,” “will,” “hope” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks related to the Company’s merger and acquisition activities, including the ultimate outcome and results of integrating operations, the effects of the Company’s merger and acquisition activities (including the Company’s future financial condition, results of operations, strategy and plans), potential adverse reactions or changes to business relationships resulting from the completion of mergers and acquisitions, expected benefits from mergers and acquisitions and the ability of the Company to realize those benefits, the significant costs required to integrate operations, whether merger or acquisition-related litigation will occur and, if so, the results of any litigation, settlements and investigations, operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; acts of terrorism, war or political or civil unrest in the United States or elsewhere; loss or corruption of our information or a cyberattack on our computer systems; uncertainties pertaining to the Impulse litigation; the risks related to economic conditions and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Innovex disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release, except as may be required by law.
Investor Relations Contact
Jason Doan
Corporate Development Manager
investors@innovex-inc.com
(346) 398-0000
Innovex International, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
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Three months ended |
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(in thousands, except share and per share amounts) |
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September 30, |
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June 30, |
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September 30, |
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Revenues |
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$ |
265,054 |
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$ |
244,896 |
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$ |
240,000 |
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Cost of revenues |
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169,177 |
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161,248 |
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164,057 |
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Selling, general and administrative expenses |
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44,432 |
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39,089 |
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35,574 |
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Gain on sale of assets, net |
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(89 |
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(9,853 |
) |
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(40,918 |
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Depreciation and amortization |
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16,547 |
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16,213 |
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15,362 |
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Acquisition and integration costs |
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900 |
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1,613 |
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3,641 |
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Provision for legal settlement |
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1,761 |
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2,804 |
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— |
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Income (loss) from operations |
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$ |
32,326 |
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$ |
33,782 |
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$ |
62,284 |
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Interest (income) expense, net |
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(192 |
) |
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(653 |
) |
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677 |
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Other (income) expense, net |
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(2,253 |
) |
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(972 |
) |
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303 |
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Bargain purchase loss |
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— |
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3,342 |
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Income before income taxes |
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$ |
34,771 |
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$ |
35,407 |
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$ |
57,962 |
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Income tax expense |
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8,485 |
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10,376 |
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18,734 |
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Net income |
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$ |
26,286 |
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$ |
25,031 |
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$ |
39,228 |
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Earnings per common share |
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Basic |
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$ |
0.38 |
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$ |
0.36 |
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$ |
0.57 |
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Diluted |
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$ |
0.37 |
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$ |
0.36 |
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$ |
0.57 |
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Weighted average common shares outstanding |
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Basic |
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69,956,631 |
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68,793,160 |
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68,814,125 |
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Diluted |
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70,652,583 |
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69,523,359 |
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69,265,300 |
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Other comprehensive income |
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Net income |
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$ |
26,286 |
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$ |
25,031 |
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$ |
39,228 |
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Foreign currency translation adjustment |
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3,914 |
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(440 |
) |
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1,314 |
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Comprehensive income |
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$ |
30,200 |
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$ |
24,591 |
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$ |
40,542 |
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Innovex International, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and par value amounts) |
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September 30, |
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June 30, |
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September 30, |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
188,763 |
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222,055 |
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$ |
163,374 |
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Trade receivables, net |
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251,825 |
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240,094 |
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220,408 |
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Inventories, net |
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299,736 |
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264,837 |
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275,197 |
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Other current assets |
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74,680 |
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61,541 |
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51,373 |
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Total current assets |
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815,004 |
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788,527 |
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710,352 |
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Noncurrent assets |
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Property and equipment, net |
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168,194 |
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169,636 |
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158,685 |
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Goodwill and net intangibles |
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288,372 |
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221,331 |
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215,863 |
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Right of use leases - operating, net |
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50,177 |
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48,728 |
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54,745 |
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Deferred tax asset, net |
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83,134 |
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89,341 |
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104,132 |
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Other long-term assets |
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10,131 |
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10,184 |
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10,133 |
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Total noncurrent assets |
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600,008 |
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539,220 |
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543,558 |
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Total assets |
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$ |
1,415,012 |
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$ |
1,327,747 |
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$ |
1,253,910 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
82,336 |
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77,188 |
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$ |
66,633 |
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Accrued expenses |
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52,152 |
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37,755 |
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|
45,680 |
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Operating lease liabilities |
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13,397 |
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12,741 |
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12,785 |
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Contract liabilities |
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17,549 |
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14,484 |
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10,286 |
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Current portion of long-term debt and finance lease obligations |
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5,873 |
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6,043 |
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|
6,316 |
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Other current liabilities |
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12,824 |
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|
9,304 |
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|
7,010 |
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Total current liabilities |
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184,131 |
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|
157,515 |
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|
148,710 |
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Noncurrent liabilities |
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Long-term debt and finance lease obligations |
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|
18,273 |
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|
19,041 |
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|
20,090 |
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Operating lease liabilities |
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|
37,528 |
|
|
|
36,729 |
|
|
|
43,287 |
|
Legal settlement accrual |
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|
53,368 |
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|
|
51,607 |
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|
|
— |
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Other long-term liabilities |
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|
4,595 |
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|
4,356 |
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|
2,869 |
|
Total noncurrent liabilities |
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113,764 |
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|
111,733 |
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|
66,246 |
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Total liabilities |
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297,895 |
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|
|
269,248 |
|
|
|
214,956 |
|
Total stockholders’ equity |
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1,117,117 |
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|
1,058,499 |
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|
1,038,954 |
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Total liabilities and stockholders’ equity |
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$ |
1,415,012 |
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|
$ |
1,327,747 |
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$ |
1,253,910 |
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Innovex International, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
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Three months ended |
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(in thousands) |
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September 30, |
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June 30, |
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September 30, |
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Cash flows from operating activities |
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|
|||
Net Income |
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$ |
26,286 |
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$ |
25,031 |
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$ |
39,228 |
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Adjustments to reconcile net income to net cash provided by operating activities |
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|
31,943 |
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|
25,211 |
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|
1,848 |
|
Changes in operating assets and liabilities, net of amounts related to acquisitions |
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|
(19,410 |
) |
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|
(13,214 |
) |
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|
7,298 |
|
Net cash provided by operating activities |
|
$ |
38,819 |
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|
$ |
37,028 |
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|
$ |
48,374 |
|
Cash flows used in investing activities |
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Payments on acquisitions, net of cash acquired |
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|
(63,347 |
) |
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|
(12,041 |
) |
|
|
(500 |
) |
Capital expenditures |
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|
(6,429 |
) |
|
|
(6,641 |
) |
|
|
(11,852 |
) |
Proceeds from sale of property and equipment |
|
|
343 |
|
|
|
5,462 |
|
|
|
89,907 |
|
Net cash (provided by) used in investing activities |
|
$ |
(69,433 |
) |
|
$ |
(13,220 |
) |
|
$ |
77,555 |
|
Cash flows provided by financing activities |
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|
|
|
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|
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|
|||
Net repayments on line of credit |
|
|
— |
|
|
|
— |
|
|
|
(29,000 |
) |
Net repayments on term loan |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Payments on finance leases |
|
|
(2,053 |
) |
|
|
(1,999 |
) |
|
|
(1,793 |
) |
Dividend payment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other financing |
|
|
(709 |
) |
|
|
(388 |
) |
|
|
(384 |
) |
Net cash used in financing activities |
|
$ |
(2,762 |
) |
|
$ |
(2,387 |
) |
|
$ |
(31,177 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
84 |
|
|
|
(73 |
) |
|
|
(159 |
) |
Net change in cash and cash equivalents |
|
$ |
(33,292 |
) |
|
$ |
21,348 |
|
|
$ |
94,593 |
|
Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA (a non-GAAP measure) as net income (loss) before interest (income) expense, net, income tax expense (benefit), net, depreciation and amortization, (gain) loss on sale of assets and other expense, net, further adjusted to exclude certain items which we believe are not reflective of our ongoing performance or which are non-cash in nature. Management uses Adjusted EBITDA to assess the profitability of our business operations and to compare our operating performance to our competitors without regard to the impact of financing methods and capital structure and excluding costs that management believes do not reflect our ongoing operating performance, and for this reason we believe this measure will provide useful information to investors. We track Adjusted EBITDA on an absolute dollar basis and as a percentage of revenue, which we refer to as Adjusted EBITDA Margin.
Free Cash Flow
We also utilize Free Cash Flow (a non-GAAP measure) to evaluate the cash generated by our operations and results of operations. We define Free Cash Flow as net cash provided by operating activities less capital expenditures, as presented in our Condensed Consolidated Statements of Cash Flows. Management believes Free Cash Flow is useful because it demonstrates the cash that was available in the period that was in excess of our needs to fund our capital expenditures. Free Cash Flow does not represent our residual cash flow available for discretionary expenditures, as we have non-discretionary expenditures, including, but not limited to, any principal payments required under the terms of our credit facility, which are not deducted in calculating Free Cash Flow.
Return on Capital Employed (ROCE)
We utilize Return on Capital Employed (“ROCE”) (a non-GAAP measure) to assess the effectiveness of our capital allocation over time and to compare our capital efficiency to our competitors, and for this reason we believe this measure will provide useful information to investors. We define ROCE as income from operations excluding acquisition and integration costs, litigation related expenses not reflective of our ongoing operating performance, and income tax expense (resulting in Adjusted Income from Operations, after tax) divided by average capital employed. Capital employed is defined as the combined values of debt and stockholders’ equity. In the first quarter of 2026, we revised our definition of ROCE and Adjusted Income from Operations, after tax to exclude litigation related expenses not reflective of our ongoing operating performance, which for the twelve months ended September 30, 2026 is reflective of the costs related to the Impulse Litigation. In particular, we believe that the exclusion of the aforementioned litigation related expenses eliminated in calculating Adjusted Income from Operations, after tax and ROCE provides useful measures for period-to-period comparisons of our business. We did not revise prior years’ Adjusted Income from Operations, after tax or ROCE because there were no other charges similar in nature to these costs.
Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and ROCE do not represent and should not be considered alternatives to, or more meaningful than, net income and net cash provided by operating activities, or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Our computation of Adjusted EBITDA, Free Cash Flow and ROCE may differ from computations of similarly titled measures of other companies. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure, see tables below.
Management has provided outlook regarding Adjusted EBITDA, which is a non-GAAP financial measure and excludes certain charges. A reconciliation of this non-GAAP financial measure to the corresponding GAAP financial measure has not been provided because guidance for the various reconciling items is not provided. The Company is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the Company’s control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.
Innovex International, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Unaudited)
|
|
Three months ended |
|
|||||||||
(in thousands) |
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|||
Revenue |
|
$ |
265,054 |
|
|
$ |
244,896 |
|
|
$ |
240,000 |
|
Net income |
|
|
26,286 |
|
|
|
25,031 |
|
|
|
39,228 |
|
Interest (income) expense, net |
|
|
(192 |
) |
|
|
(653 |
) |
|
|
677 |
|
Income tax expense |
|
|
8,485 |
|
|
|
10,376 |
|
|
|
18,734 |
|
Depreciation and amortization |
|
|
16,547 |
|
|
|
16,213 |
|
|
|
15,362 |
|
EBITDA |
|
$ |
51,126 |
|
|
$ |
50,967 |
|
|
$ |
74,001 |
|
Other non-operating (income) expense, net (1) |
|
|
(2,253 |
) |
|
|
(972 |
) |
|
|
303 |
|
Gain on sale of assets, net |
|
|
(89 |
) |
|
|
(9,853 |
) |
|
|
(40,918 |
) |
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition and integration costs (2) |
|
|
900 |
|
|
|
1,613 |
|
|
|
3,641 |
|
Provision for legal settlement (3) |
|
|
1,761 |
|
|
|
2,804 |
|
|
|
— |
|
Legal defense costs (4) |
|
|
28 |
|
|
|
— |
|
|
|
— |
|
Transaction costs (5) |
|
|
555 |
|
|
|
47 |
|
|
|
— |
|
Bargain purchase loss |
|
|
— |
|
|
|
— |
|
|
|
3,342 |
|
Stock based compensation |
|
|
3,372 |
|
|
|
3,391 |
|
|
|
3,244 |
|
Adjusted EBITDA |
|
$ |
55,400 |
|
|
$ |
47,997 |
|
|
$ |
43,613 |
|
Net income (loss) % revenue |
|
|
10 |
% |
|
|
10 |
% |
|
|
16 |
% |
Adjusted EBITDA Margin |
|
|
21 |
% |
|
|
20 |
% |
|
|
18 |
% |
(1) Primarily represents foreign currency exchange (gain) loss, (gain) loss on lease terminations, and other non-operating items.
(2) Consists of legal, accounting, advisory fees, move, severance and other integration costs associated with acquisitions, primarily related to Dril-Quip, DWS, SCF, Citadel DIS and TCO. These costs are one-time in nature and represent expenses that we do not view as normal operating expenses necessary to operate our business.
(3) Includes monetary damages awarded by a jury and estimated future awards related to the Impulse Litigation, which is not reflective of our ongoing operating performance.
(4) Reflects legal defense costs associated with the Impulse Litigation, which is not reflective of our ongoing operating performance. These costs are recorded in Selling, general and administrative expenses in our Condensed Consolidated Statements of Operations and Comprehensive Income.
(5) Reflects transaction costs associated with the secondary offerings.
Innovex International, Inc.
Reconciliation of Income from Operations to ROCE
(Unaudited)
|
|
Twelve Months Ended |
|
|||||||||
(in thousands) |
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
|||
Income from operations |
|
$ |
70,072 |
|
|
$ |
132,625 |
|
|
$ |
133,741 |
|
Plus: Acquisition and integration costs |
|
|
8,559 |
|
|
|
17,518 |
|
|
|
20,868 |
|
Plus: Provision for legal settlement (1) |
|
|
53,368 |
|
|
|
— |
|
|
|
— |
|
Plus: Legal defense costs (1) |
|
|
2,458 |
|
|
|
— |
|
|
|
— |
|
Less: Income tax expense |
|
|
(26,937 |
) |
|
|
(45,231 |
) |
|
|
(27,857 |
) |
Adjusted income from operations, after tax |
|
$ |
107,520 |
|
|
$ |
104,912 |
|
|
$ |
126,752 |
|
Beginning debt |
|
|
26,406 |
|
|
|
35,368 |
|
|
|
23,046 |
|
Beginning equity |
|
|
1,038,954 |
|
|
|
958,156 |
|
|
|
904,351 |
|
Ending debt |
|
|
24,146 |
|
|
|
25,631 |
|
|
|
26,406 |
|
Ending equity |
|
|
1,117,117 |
|
|
|
1,057,699 |
|
|
|
1,038,954 |
|
Average capital employed |
|
$ |
1,103,312 |
|
|
$ |
1,038,427 |
|
|
$ |
996,379 |
|
ROCE |
|
|
10 |
% |
|
|
10 |
% |
|
|
13 |
% |
(1) As defined in our Reconciliation of Net Income (Loss) to Adjusted EBITDA above.
Innovex International, Inc.
Reconciliation of Net Cash from Operations to Free Cash Flow
(Unaudited)
|
|
Three months ended |
|
|||||||||
(in thousands) |
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|||
Net cash provided by operating activities |
|
$ |
38,819 |
|
|
$ |
37,028 |
|
|
$ |
48,374 |
|
Capital expenditures |
|
|
(6,429 |
) |
|
|
(6,641 |
) |
|
|
(11,852 |
) |
Free Cash Flow |
|
$ |
32,390 |
|
|
$ |
30,387 |
|
|
$ |
36,522 |
|
Innovex International, Inc.
Geographic Revenue Details
(Unaudited)
|
|
Three months ended |
|
|||||||||
(in thousands) |
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|||
North America Onshore ("NAM") |
|
|
|
|
|
|
|
|
|
|||
Products |
|
$ |
98,557 |
|
|
$ |
86,265 |
|
|
$ |
86,597 |
|
Services |
|
|
17,948 |
|
|
|
16,693 |
|
|
|
17,218 |
|
Rental |
|
|
29,159 |
|
|
|
28,477 |
|
|
|
28,114 |
|
Revenue - North America Onshore |
|
|
145,664 |
|
|
|
131,435 |
|
|
|
131,929 |
|
International & Offshore |
|
|
|
|
|
|
|
|
|
|||
Products |
|
|
91,804 |
|
|
|
81,114 |
|
|
|
79,205 |
|
Services |
|
|
13,340 |
|
|
|
15,012 |
|
|
|
14,592 |
|
Rental |
|
|
14,246 |
|
|
|
17,335 |
|
|
|
14,274 |
|
Revenue - International & Offshore |
|
|
119,390 |
|
|
|
113,461 |
|
|
|
108,071 |
|
Total Revenue |
|
$ |
265,054 |
|
|
$ |
244,896 |
|
|
$ |
240,000 |
|