These are top 10 stocks traded on the Robinhood UK platform in July
In a significant corporate update, Innovex International, Inc. (NYSE:INVX), a company specializing in oil and gas field machinery and equipment, announced changes to its certifying accountant. On Monday, the company's Audit Committee confirmed the dismissal of Grant Thornton LLP (GT) and the appointment of PricewaterhouseCoopers LLP (PwC) as the new independent registered public accounting firm.
This decision follows the completion of a reverse acquisition on September 6, 2024, where Innovex International, previously known as Dril-Quip (NYSE:INVX), Inc., merged with Innovex Downhole Solutions, Inc. The merger was considered a reverse acquisition for accounting purposes, with Pre-Merger Innovex's financial statements, audited by GT, becoming the historical consolidated financial statements of the newly named Innovex International.
According to the SEC filing, GT's reports on Pre-Merger Innovex's consolidated financial statements for the fiscal years ending December 31, 2023, and December 31, 2022, were free of adverse opinions or disclaimers and did not contain qualifications on audit scope or accounting principles. However, a material weakness in internal controls over financial reporting was identified and disclosed in the company's Form S-4, which was effective as of August 6, 2024.
Prior to the merger, PwC served as the independent auditor for Dril-Quip, Inc., which had identified a material weakness related to a classification error in an inventory write-down in its amended Annual Report for the fiscal year ended December 31, 2023. The company has now confirmed the continuation of PwC as its auditor post-merger.
In other recent news, Innovex International has finalized its merger with Dril-Quip, Inc., forming a new entity expected to generate significant growth, cash flow, and returns for shareholders. The merger is projected to deliver nearly $30 million in annual cost savings and maintain a net cash position of around $100 million post-transaction. Institutional Shareholder Services has endorsed the merger, citing potential benefits such as increased earnings and a diversified business portfolio.
In more developments, Innovex has engaged its former CFO, Kyle McClure, as an independent contractor to assist with a financial settlement. McClure's compensation will be a fixed monthly rate of $10,000, with an additional $10,000 for any overseas business trip at the company's request.
Dril-Quip shareholders have approved key merger proposals, and the merger terms have been amended, waiving the need for Dril-Quip stockholder approval on certain governance changes. This reflects the companies' commitment to strong corporate governance.
Dril-Quip has also expanded its Board of Directors with the appointment of Benjamin M. Fink, a veteran in the energy and finance sectors. Fink's extensive experience is expected to significantly contribute to Dril-Quip's financial and industry expertise.
InvestingPro Insights
Following Innovex International's recent corporate changes, including the merger and appointment of a new accounting firm, InvestingPro data provides additional context for investors. As of the latest quarter, Innovex International (NYSE:INVX) reported a revenue of $530.58 million, with a gross profit margin of 36.41%. The company's operating income margin stands at 17.15%, indicating a relatively efficient operation despite recent changes.
InvestingPro Tips highlight that Innovex International is currently trading near its 52-week low, which could be of interest to value investors. Additionally, the company operates with a moderate level of debt and has been profitable over the last twelve months, suggesting financial stability during this transition period.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further insights into Innovex International's financial health and market position. These additional tips could be particularly valuable given the recent corporate changes and their potential impact on the company's future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.