NOW Inc. Announces Third Quarter 2014 Earnings
The Company’s revenues for the third quarter of 2014 were
“While we are aware of the recent decline and the potential for further volatility in commodity prices, our healthy balance sheet and our experienced management team and employees help position our Company well to respond to any such market conditions. I would like to thank our employees for all of their contributions towards this recovery, which is even more impressive given all of the disruptions they’ve experienced.”
Third quarter revenues for
Revenues for the third quarter of 2014 for
International
International operations generated third 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. |
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September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 166 | $ | 101 | ||||||
Receivables, net | 906 | 661 | ||||||||
Inventories, net | 905 | 850 | ||||||||
Deferred income taxes | 20 | 21 | ||||||||
Prepaid and other current assets | 35 | 29 | ||||||||
Total current assets | 2,032 | 1,662 | ||||||||
Property, plant and equipment, net | 124 | 102 | ||||||||
Deferred income taxes | 9 | 15 | ||||||||
Goodwill | 328 | 333 | ||||||||
Intangibles, net | 65 | 68 | ||||||||
Other assets | - | 3 | ||||||||
Total assets | $ | 2,558 | $ | 2,183 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 454 | $ | 264 | ||||||
Accrued liabilities | 120 | 99 | ||||||||
Accrued income taxes | 4 | - | ||||||||
Total current liabilities | 578 | 363 | ||||||||
Deferred income taxes | 5 | 16 | ||||||||
Other liabilities | 2 | 2 | ||||||||
Total liabilities | 585 | 381 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' equity: | ||||||||||
Common stock - par value $0.01; 330 million shares authorized; | ||||||||||
107,067,457 shares issued and outstanding | 1 | - | ||||||||
Preferred stock - par value $0.01; 20 million shares authorized; | ||||||||||
no shares issued and outstanding | - | - | ||||||||
Additional paid-in capital | 1,951 | - | ||||||||
Retained earnings | 42 | - | ||||||||
National Oilwell Varco, Inc. ("NOV") net investment | - | 1,802 | ||||||||
Accumulated other comprehensive income (loss) | (21 | ) | - | |||||||
Total stockholders' equity | 1,973 | 1,802 | ||||||||
Total liabilities and stockholders' equity | $ | 2,558 | $ | 2,183 |
NOW INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In millions, except per share data) |
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Three Months Ended |
Nine Months Ended |
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2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Revenue | $ | 1,070 | $ | 1,113 | $ | 3,099 | $ | 3,255 | |||||||||||
Operating expenses: | |||||||||||||||||||
Cost of products | 857 | 907 | 2,485 | 2,655 | |||||||||||||||
Operating and warehousing costs | 108 | 104 | 315 | 308 | |||||||||||||||
Selling, general and administrative | 55 | 39 | 144 | 118 | |||||||||||||||
Operating profit | 50 | 63 | 155 | 174 | |||||||||||||||
Other income (expense) | (1 | ) | (4 | ) | (1 | ) | - | ||||||||||||
Income before income taxes | 49 | 59 | 154 | 174 | |||||||||||||||
Provision for income taxes | 17 | 20 | 54 | 61 | |||||||||||||||
Net income | $ | 32 | $ | 39 | $ | 100 | $ | 113 | |||||||||||
Earnings per share: | |||||||||||||||||||
Basic earnings per common share | $ | 0.30 | $ | 0.37 | $ | 0.93 | $ | 1.06 | |||||||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.36 | $ | 0.93 | $ | 1.05 | |||||||||||
Weighted-average common shares outstanding, basic | 107 | 107 | 107 | 107 | |||||||||||||||
Weighted-average common shares outstanding, diluted | 108 | 107 | 108 | 107 |
NOW INC.
NET INCOME TO EBITDA RECONCILIATION (UNAUDITED) |
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Three Months Ended |
Nine Months Ended |
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2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net income | $ | 32 | $ | 39 | $ | 100 | $ | 113 | ||||||||||||
Interest | - | - | - | - | ||||||||||||||||
Tax provision | 17 | 20 | 54 | 61 | ||||||||||||||||
Depreciation and amortization | 4 | 5 | 14 | 12 | ||||||||||||||||
EBITDA (1) | $ | 53 | $ | 64 | $ | 168 | $ | 186 | ||||||||||||
EBITDA % (2) | 5.0 | % | 5.8 | % | 5.4 | % | 5.7 | % | ||||||||||||
(1) |
Because EBITDA is a non-U.S. GAAP financial measure, as defined by the SEC, we included a reconciliation of EBITDA to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. |
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(2) |
EBITDA % is defined as EBITDA divided by Revenue. |
BUSINESS SEGMENTS (UNAUDITED) (In millions) |
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Three Months Ended |
Nine Months Ended |
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2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
United States | $ | 748 | $ | 732 | $ | 2,114 | $ | 2,187 | ||||||||
Canada | 173 | 191 | 489 | 578 | ||||||||||||
International | 149 | 190 | 496 | 490 | ||||||||||||
Total revenue | $ | 1,070 | $ | 1,113 | $ | 3,099 | $ | 3,255 |
Source:
NOW Inc.
Daniel Molinaro, 281-823-4941