NOW Inc. Announces First Quarter 2016 Results
Also included in the first quarter ended
The Company’s revenues for the first quarter of 2016 were
Cash flow from operating activities was
As announced last week, the Company entered into an agreement to
purchase the businesses of
First quarter revenues for
International
International operations generated first 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) | |||||||
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 131 | $ | 90 | |||
Receivables, net | 413 | 485 | |||||
Inventories, net | 633 | 693 | |||||
Prepaid and other current assets | 24 | 24 | |||||
Total current assets | 1,201 | 1,292 | |||||
Property, plant and equipment, net | 159 | 165 | |||||
Deferred income taxes | 5 | 4 | |||||
Goodwill | 210 | 205 | |||||
Intangibles, net | 156 | 161 | |||||
Other assets | 7 | 5 | |||||
Total assets | 1,738 | 1,832 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 208 | $ | 211 | |||
Accrued liabilities | 94 | 94 | |||||
Other current liabilities |
- |
2 | |||||
Total current liabilities | 302 | 307 | |||||
Long-term debt | $ | 55 | $ | 108 | |||
Deferred income taxes | 10 | 11 | |||||
Other long-term liabilities | 3 | 3 | |||||
Total liabilities | 370 | 429 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock - par value $0.01; 20 million shares authorized; | |||||||
no shares issued and outstanding |
- |
- |
|||||
Common stock - par value $0.01; 330 million shares authorized; 107,426,047 and | |||||||
107,219,138 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 1 | 1 | |||||
Additional paid-in capital | 1,985 | 1,980 | |||||
Accumulated deficit | (507 | ) | (444 | ) | |||
Accumulated other comprehensive loss | (111 | ) | (134 | ) | |||
Total stockholders' equity | 1,368 | 1,403 | |||||
Total liabilities and stockholders' equity |
$ | 1,738 | $ | 1,832 | |||
NOW INC. | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||
(In millions, except per share data) | |||||||||||
Three Months Ended | |||||||||||
March 31, | December 31, | ||||||||||
2016 | 2015 | 2015 | |||||||||
Revenue | $ | 548 | $ | 863 | $ | 644 | |||||
Operating expenses: | |||||||||||
Cost of products | 461 | 708 | 538 | ||||||||
Warehousing, selling and administrative | 152 | 163 | 152 | ||||||||
Impairment of goodwill |
- |
- |
138 | ||||||||
Operating loss | (65 | ) | (8 | ) | (184 | ) | |||||
Other expense | (2 | ) | (4 | ) | (2 | ) | |||||
Loss before income taxes | (67 | ) | (12 | ) | (186 | ) | |||||
Income tax provision (benefit) | (4 | ) | (2 | ) | 63 | ||||||
Net loss | $ | (63 | ) | $ | (10 | ) | $ | (249 | ) | ||
Loss per share: | |||||||||||
Basic loss per common share | $ | (0.59 | ) | $ | (0.09 | ) | $ | (2.33 | ) | ||
Diluted loss per common share | $ | (0.59 | ) | $ | (0.09 | ) | $ | (2.33 | ) | ||
Weighted-average common shares outstanding, basic | 107 | 107 | 107 | ||||||||
Weighted-average common shares outstanding, diluted | 107 | 107 | 107 | ||||||||
NOW INC. SUPPLEMENTAL INFORMATION |
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BUSINESS SEGMENTS (UNAUDITED) (In millions) |
|||||||||||||||
Three Months Ended | |||||||||||||||
March 31, | December 31, | ||||||||||||||
2016 | 2015 | 2015 | |||||||||||||
Revenue: | |||||||||||||||
United States | $ | 357 | $ | 601 | $ | 433 | |||||||||
Canada | 63 | 116 | 79 | ||||||||||||
International | 128 | 146 | 132 | ||||||||||||
Total revenue | $ | 548 | $ | 863 | $ | 644 |
NOW INC. SUPPLEMENTAL INFORMATION (CONTINUED) |
||||||||||||
NET INCOME (LOSS) TO EBITDA EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) | ||||||||||||
(In millions) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | |||||||||||
2016 | 2015 | 2015 | ||||||||||
Net loss (1) | $ | (63 | ) | $ | (10 | ) | $ | (249 | ) | |||
Interest, net |
- |
- |
1 | |||||||||
Income tax provision (benefit) | (4 | ) | (2 | ) | 63 | |||||||
Depreciation and amortization | 12 | 7 | 12 | |||||||||
Other costs (2) | 4 | 9 | 141 | |||||||||
EBITDA excluding other costs | $ | (51 | ) | $ | 4 | $ | (32 | ) | ||||
EBITDA % excluding other costs (3) | (9.3 | %) | 0.5 | % | (5.0 | %) | ||||||
DILUTED EARNINGS PER SHARE ("EPS") TO DILUTED EPS EXCLUDING OTHER COSTS RECONCILIATION |
||||||||||||
(UNAUDITED) |
||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | |||||||||||
2016 | 2015 | 2015 | ||||||||||
GAAP diluted loss per share (4) | $ | (0.59 | ) | $ | (0.09 | ) | $ | (2.33 | ) | |||
Other costs (2) | 0.24 | 0.07 | 2.08 | |||||||||
Diluted loss per share excluding other costs | $ | (0.35 | ) | $ | (0.02 | ) | $ | (0.25 | ) |
(1) We believe that net loss is the financial measure calculated and presented in accordance with U.S. generally accepted accounting principles that is most directly comparable to EBITDA excluding other costs. EBITDA excluding other costs measures the Company’s operating performance without regard to certain expenses. EBITDA excluding other costs is not a presentation made in accordance with GAAP and the Company’s computation of EBITDA excluding other costs may vary from others in the industry. EBITDA excluding other costs has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. |
(2) Other costs, pre-tax, in the three months ended March 31, 2016 included $4 million in 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. Other costs, net of tax, was approximately $25 million, and includes a $23 million deferred tax asset valuation allowance for the three months ended March 31, 2016. |
(3) EBITDA % excluding other costs is defined as EBITDA excluding other costs divided by Revenue. |
(4) We believe that diluted loss per share is the financial measure calculated and presented in accordance with U.S. generally accepted accounting principles that is most directly comparable to diluted loss per share excluding other costs. Diluted loss per share excluding other costs measures the Company’s operating performance without regard to certain expenses. Diluted loss per share excluding other costs is not a presentation made in accordance with GAAP and the Company’s computation of diluted loss per share excluding other costs may vary from others in the industry. Diluted loss per share excluding other costs has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. |
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Source:
NOW Inc.
Daniel Molinaro, 281-823-4941