NOW Inc. Announces Second Quarter 2014 Earnings
The Company’s revenues for the second quarter of 2014 were
“Moving forward, we are confident that our seasoned employees and management will overcome these short term disruptions. We believe this will translate into marked improvements in revenue and profitability in the coming quarters. I would like to thank all of our dedicated employees for their hard work during this taxing and exciting time. We are enthusiastic about our future and will continue to develop DistributionNOW as the premier distributor to our customers while returning value to our shareholders.”
Second quarter revenues for
Revenues for the second quarter of 2014 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. |
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CONSOLIDATED BALANCE SHEETS | |||||||||
(In millions, except share data) |
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June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
ASSETS |
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Current assets: | |||||||||
Cash and cash equivalents | $ | 236 | $ | 101 | |||||
Receivables, net | 773 | 661 | |||||||
Inventories, net | 882 | 850 | |||||||
Deferred income taxes | 20 | 21 | |||||||
Prepaid and other current assets | 35 | 29 | |||||||
Total current assets | 1,946 | 1,662 | |||||||
Property, plant and equipment, net | 118 | 102 | |||||||
Deferred income taxes | 8 | 15 | |||||||
Goodwill | 333 | 333 | |||||||
Intangibles, net | 67 | 68 | |||||||
Other assets | 1 | 3 | |||||||
Total assets | $ | 2,473 | $ | 2,183 | |||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 401 | $ | 264 | |||||
Accrued liabilities | 103 | 99 | |||||||
Accrued income taxes | 4 | - | |||||||
Total current liabilities | 508 | 363 | |||||||
Deferred income taxes | 5 | 16 | |||||||
Other liabilities | 2 | 2 | |||||||
Total liabilities | 515 | 381 | |||||||
Commitments and contingencies | |||||||||
Stockholders' equity: | |||||||||
Common stock - par value $0.01; 330 million shares authorized; | |||||||||
107,057,698 shares issued and outstanding |
1 | - | |||||||
Preferred stock - par value $0.01; 20 million shares authorized; | |||||||||
no shares issued and outstanding | - | - | |||||||
Additional paid-in capital | 1,946 | - | |||||||
Retained earnings | 10 | - | |||||||
National Oilwell Varco, Inc. ("NOV") net investment | - | 1,802 | |||||||
Accumulated other comprehensive income | 1 | - | |||||||
Total stockholders' equity | 1,958 | 1,802 | |||||||
Total liabilities and equity | $ | 2,473 | $ | 2,183 | |||||
NOW INC. | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||
(In millions, except per share data) |
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Three Months | Six Months Ended | |||||||||||||||||
Ended June 30 | June 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenue | $ | 952 | $ | 1,070 | $ | 2,029 | $ | 2,142 | ||||||||||
Operating expenses: | ||||||||||||||||||
Cost of products | 759 | 874 | 1,628 | 1,748 | ||||||||||||||
Operating and warehousing costs | 105 | 103 | 207 | 204 | ||||||||||||||
Selling, general and administrative | 45 | 40 | 89 | 79 | ||||||||||||||
Operating profit | 43 | 53 | 105 | 111 | ||||||||||||||
Other income | - | 2 | - | 4 | ||||||||||||||
Income before income taxes | 43 | 55 | 105 | 115 | ||||||||||||||
Provision for income taxes | 16 | 22 | 37 | 41 | ||||||||||||||
Net income | $ | 27 | $ | 33 | $ | 68 | $ | 74 | ||||||||||
Net income per share | ||||||||||||||||||
Basic earnings per common share | $ | 0.25 | $ | 0.31 | $ | 0.64 | $ | 0.69 | ||||||||||
Diluted earnings per common share | $ | 0.25 | $ | 0.31 | $ | 0.63 | $ | 0.69 | ||||||||||
Weighted-average common shares outstanding, basic | 107 | 107 | 107 | 107 | ||||||||||||||
Weighted-average common shares outstanding, diluted | 108 | 107 | 108 | 107 | ||||||||||||||
NOW INC. | ||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||
NET INCOME TO EBITDA RECONCILIATION (UNAUDITED) | ||||||||||||||||||||||
(In millions) |
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Three Months | Six Months Ended | |||||||||||||||||||||
Ended June 30 | June 30 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Net income | $ | 27 | $ | 33 | $ | 68 | $ | 74 | ||||||||||||||
Interest expense | - | - | - | - | ||||||||||||||||||
Tax provision | 16 | 22 | 37 | 41 | ||||||||||||||||||
Depreciation and amortization | 6 | 3 | 10 | 7 | ||||||||||||||||||
EBITDA (1) | $ | 49 | $ | 58 | $ | 115 | $ | 122 | ||||||||||||||
EBITDA % (2) | 5.1 | % | 5.4 | % | 5.7 | % | 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. | |||
(2) |
EBITDA % is defined as EBITDA divided by Revenue. |
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BUSINESS SEGMENTS (UNAUDITED) | ||||||||||||||||||
(In millions) |
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Three Months Ended | Six Months Ended | |||||||||||||||||
June 30 | June 30 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenue: | ||||||||||||||||||
United States | $ | 662 | $ | 742 | $ | 1,366 | $ | 1,454 | ||||||||||
Canada | 125 | 172 | 316 | 387 | ||||||||||||||
International | 165 | 156 | 347 | 301 | ||||||||||||||
Total Revenue | $ | 952 | $ | 1,070 | $ | 2,029 | $ | 2,142 | ||||||||||
Source:
NOW Inc.
Daniel Molinaro, 281-823-4941