NOW Inc. Announces Second Quarter 2016 Results
The Company’s revenues for the second quarter of 2016 were
Cash flows from operating activities were
On
Second quarter revenues for
International
International operations generated second quarter revenues of
The Company has scheduled a conference call for
Statements made in this press release that are forward-looking in nature
are intended to be "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934 and may involve risks
and uncertainties. These statements may differ materially from actual
future events or results. Readers are referred to documents filed by
NOW INC. CONSOLIDATED BALANCE SHEETS (In millions, except share data) |
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June 30, | December 31, | |||||||||
2016 | 2015 | |||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 136 | $ | 90 | ||||||
Receivables, net | 354 | 485 | ||||||||
Inventories, net | 589 | 693 | ||||||||
Prepaid and other current assets | 29 | 24 | ||||||||
Total current assets | 1,108 | 1,292 | ||||||||
Property, plant and equipment, net | 161 | 165 | ||||||||
Deferred income taxes | 4 | 4 | ||||||||
Goodwill | 334 | 205 | ||||||||
Intangibles, net | 201 | 161 | ||||||||
Other assets | 6 | 5 | ||||||||
Total assets | 1,814 | 1,832 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 205 | $ | 211 | ||||||
Accrued liabilities | 96 | 94 | ||||||||
Other current liabilities | 3 | 2 | ||||||||
Total current liabilities | 304 | 307 | ||||||||
Long-term debt | $ | 180 | $ | 108 | ||||||
Deferred income taxes | 6 | 11 | ||||||||
Other long-term liabilities | 2 | 3 | ||||||||
Total liabilities | 492 | 429 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' equity: | ||||||||||
Preferred stock - par value $0.01; 20 million shares authorized; | ||||||||||
no shares issued and outstanding |
- |
- |
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Common stock - par value $0.01; 330 million shares authorized; 107,473,952 and | ||||||||||
107,219,138 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 1 | 1 | ||||||||
Additional paid-in capital | 1,991 | 1,980 | ||||||||
Accumulated deficit | (551 | ) | (444 | ) | ||||||
Accumulated other comprehensive loss | (119 | ) | (134 | ) | ||||||
Total stockholders' equity | 1,322 | 1,403 | ||||||||
Total liabilities and stockholders' equity | $ | 1,814 | $ | 1,832 |
NOW INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In millions, except per share data) |
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Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||||||||
2016 | 2015 | 2016 | 2016 | 2015 | |||||||||||||||||||||
Revenue | $ | 501 | $ | 750 | $ | 548 | $ | 1,049 | $ | 1,613 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Cost of products | 418 | 626 | 461 | 879 | 1,334 | ||||||||||||||||||||
Warehousing, selling and administrative | 140 | 151 | 152 | 292 | 314 | ||||||||||||||||||||
Operating loss | (57 | ) | (27 | ) | (65 | ) | (122 | ) | (35 | ) | |||||||||||||||
Other expense | (2 | ) | (2 | ) | (2 | ) | (4 | ) | (6 | ) | |||||||||||||||
Loss before income taxes | (59 | ) | (29 | ) | (67 | ) | (126 | ) | (41 | ) | |||||||||||||||
Income tax benefit | (15 | ) | (10 | ) | (4 | ) | (19 | ) | (12 | ) | |||||||||||||||
Net loss | $ | (44 | ) | $ | (19 | ) | $ | (63 | ) | $ | (107 | ) | $ | (29 | ) | ||||||||||
Loss per share: | |||||||||||||||||||||||||
Basic loss per common share | $ | (0.40 | ) | $ | (0.18 | ) | $ | (0.59 | ) | $ | (0.99 | ) | $ | (0.27 | ) | ||||||||||
Diluted loss per common share | $ | (0.40 | ) | $ | (0.18 | ) | $ | (0.59 | ) | $ | (0.99 | ) | $ | (0.27 | ) | ||||||||||
Weighted-average common shares outstanding, basic | 107 | 107 | 107 | 107 | 107 | ||||||||||||||||||||
Weighted-average common shares outstanding, diluted | 107 | 107 | 107 | 107 | 107 | ||||||||||||||||||||
NOW INC. SUPPLEMENTAL INFORMATION
BUSINESS SEGMENTS (UNAUDITED) (In millions) |
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Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||||||||
2016 | 2015 | 2016 | 2016 | 2015 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
United States | $ | 337 | $ | 496 | $ | 357 | $ | 694 | $ | 1,097 | |||||||||||||||
Canada | 55 | 89 | 63 | 118 | 205 | ||||||||||||||||||||
International | 109 | 165 | 128 | 237 | 311 | ||||||||||||||||||||
Total revenue | $ | 501 | $ | 750 | $ | 548 | $ | 1,049 | $ | 1,613 |
NOW INC. | |||||||||||||||||||||
SUPPLEMENTAL INFORMATION (CONTINUED) | |||||||||||||||||||||
U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) TO NON-GAAP RECONCILIATIONS | |||||||||||||||||||||
NET LOSS TO NON-GAAP EBITDA EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||||
2016 | 2015 | 2016 | 2016 | 2015 | |||||||||||||||||
GAAP net loss (1) | $ | (44 | ) | $ | (19 | ) | $ | (63 | ) | $ | (107 | ) | $ | (29 | ) | ||||||
Interest, net | 1 |
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- |
1 |
- |
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Income tax benefit | (15 | ) | (10 | ) | (4 | ) | (19 | ) | (12 | ) | |||||||||||
Depreciation and amortization | 13 | 9 | 12 | 25 | 16 | ||||||||||||||||
Other costs (2) | 3 | 3 | 4 | 7 | 12 | ||||||||||||||||
EBITDA excluding other costs | $ | (42 | ) | $ | (17 | ) | $ | (51 | ) | $ | (93 | ) | $ | (13 | ) | ||||||
EBITDA % excluding other costs (3) | (8.4 | %) | (2.3 | %) | (9.3 | %) | (8.9 | %) | (0.8 | %) | |||||||||||
NET LOSS TO NON-GAAP NET LOSS EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||||
2016 | 2015 | 2016 | 2016 | 2015 | |||||||||||||||||
GAAP net loss (1) | $ | (44 | ) | $ | (19 | ) | $ | (63 | ) | $ | (107 | ) | $ | (29 | ) | ||||||
Other costs, net of tax (4) |
- |
2 | 25 | 25 | 9 | ||||||||||||||||
Net loss excluding other costs | $ | (44 | ) | $ | (17 | ) | $ | (38 | ) | $ | (82 | ) | $ | (20 | ) | ||||||
DILUTED LOSS PER SHARE TO NON-GAAP DILUTED LOSS PER SHARE EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||||
2016 | 2015 | 2016 | 2016 | 2015 | |||||||||||||||||
GAAP diluted loss per share (1) | $ | (0.40 | ) | $ | (0.18 | ) | $ | (0.59 | ) | $ | (0.99 | ) | $ | (0.27 | ) | ||||||
Other costs, net of tax (4) |
- |
0.02 | 0.24 | 0.23 | 0.09 | ||||||||||||||||
Diluted loss per share excluding other costs (5) | $ | (0.40 | ) | $ | (0.16 | ) | $ | (0.35 | ) | $ | (0.76 | ) | $ | (0.18 | ) | ||||||
(1) In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs, (ii) net loss excluding other costs and (iii) diluted loss per share excluding other costs. Each of these financial measures excludes the impact of certain other costs and therefore has not been calculated in accordance with GAAP. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included in the schedules herein.
(2) Other costs primarily includes the transaction costs associated with acquisitions, including the cost of inventory that was stepped up to fair value during purchase accounting related to acquisitions, and severance expenses which are included in operating loss.
(3) EBITDA % excluding other costs is defined as EBITDA excluding other costs divided by Revenue.
(4) Other costs, net of tax, for the three and six months ended
(5) Per share amounts may not foot due to rounding.
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Source:
NOW Inc.
Daniel Molinaro, 281-823-4941