Big backlog prompts energy manufacturer to go public - Houston Business Journal:

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seeks to raise $103.5 millionm to expand the company's manufacturing capacity by 90 percent. founded in 1981 by three former executives of VetcOffshore Inc., is headquartered on Hempstead Highwa where it operates a 175,000-square-foort facility on 15 The company's largest plant is a 218-acrwe campus with 280,000 square feet of manufacturing spacwe on North Eldridge Parkway. Two additionall plants are located in Scotlandand Singapore. Dril-quil manufactures offshore drilling and productiohn equipment for use indeepwater operations. Althougy foreign sales account for aboutf 68 percent of 70 percentof Dril-quip'w products are manufactured in the United States.
The compant plans to increase its manufacturing capacity 90 percent by 1999. Most of the expansionn will take place at the EldridgeParkwauy site, where the companh expects to spend about $16 slightly less than half its total planned capitap expenditures. The remainder of the proceedxs will be used to addmachine tools, to repay indebtedness and for workinb capital. Operating at close to Dril-quip's backlog has increased from $56 million at the end of 1996 to $100 millionn as of June 30. Revenue increased 36 percenf to $34 million in the firsyt quarterof 1997. Revenue in 1996 increased 7 percentover 1995.
The jump in revenu e in the first three months of 1997 was accompaniefd by a 27 percent increase in engineering and productdevelopment expenses, mostly due to the addition of personnel to meet demand. The company had 926 employees as ofJune 30, 580 of them in the Unite States. Dril-Quip expects to continud adding more personnel as facilitiesare expanded, according to Larry one of three co-chairmen of the company. Reimerty is in charge of engineering, product developmengt and finance. Gary D. Smith is responsible for service, training and And J. Mike Walketr heads up manufacturing, purchasing and facilities. The three are co-founder s and co-chairmen of the company.
Also a co-founder is Gary W. an outside director who is chief executivd officer ofForcenegy Inc. Lovelesd was with Great WesternResources Corp. when Dril-quip was Great Western was subsequently purchasedby Forcenegy. Smith and Walker currently each own 30 percent of the Reimert declines to say what percentagre they will own after the public offerintis completed. Underwriters for the offering are MorgamStanley & Co. and Lufkin & Jenrette Securities Corp. The companu plans to apply for a listinfg on The New YorkStock Exchange.