NOW Inc. Announces Fourth Quarter and Full Year 2014 Earnings
Revenue for the fourth quarter decreased 6.0 percent sequentially to
“Moving into 2015, we will take a measured approach to successfully navigate the next few quarters and beyond. While the timing of the recovery is uncertain, our healthy balance sheet positions us well to pursue strategic opportunities that are now presenting themselves in this challenging environment. We will be disciplined, but nimble and proceed with diligence as we execute our long-term growth strategy.”
Fourth quarter revenue for
Fourth quarter revenue for
International
Fourth quarter revenue for the International segment was
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) | |||||||||||
December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 195 | $ | 101 | |||||||
Receivables, net | 851 | 661 | |||||||||
Inventories, net | 949 | 850 | |||||||||
Deferred income taxes | 22 | 21 | |||||||||
Prepaid and other current assets | 30 | 29 | |||||||||
Total current assets |
2,047 | 1,662 | |||||||||
Property, plant and equipment, net | 124 | 102 | |||||||||
Deferred income taxes | 2 | 15 | |||||||||
Goodwill | 346 | 333 | |||||||||
Intangibles, net | 73 | 68 | |||||||||
Other assets | 4 | 3 | |||||||||
Total assets |
$ | 2,596 | $ | 2,183 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 490 | $ | 264 | |||||||
Accrued liabilities | 125 | 99 | |||||||||
Accrued income taxes | 5 | - | |||||||||
Total current liabilities | 620 | 363 | |||||||||
Deferred income taxes | 10 | 16 | |||||||||
Other liabilities | - | 2 | |||||||||
Total liabilities | 630 | 381 | |||||||||
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; | |||||||||||
107,067,457 shares issued and outstanding | 1 | - | |||||||||
Additional paid-in capital | 1,952 | - | |||||||||
National Oilwell Varco, Inc. ("NOV") net investment | - | 1,802 | |||||||||
Retained earnings | 58 | - | |||||||||
Accumulated other comprehensive income (loss) | (45 | ) | - | ||||||||
Total stockholders' equity |
1,966 | 1,802 | |||||||||
Total liabilities and stockholders' equity | $ | 2,596 | $ | 2,183 | |||||||
NOW INC. | |||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||
(In millions, except per share data) | |||||||||||||||||
Three Months Ended |
Years Ended |
||||||||||||||||
December 31 |
December 31 |
||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue | $ | 1,006 | $ | 1,041 | $ | 4,105 | $ | 4,296 | |||||||||
Operating expenses: | |||||||||||||||||
Cost of products | 801 | 844 | 3,286 | 3,499 | |||||||||||||
Operating and warehousing costs | 110 | 104 | 425 | 412 | |||||||||||||
Selling, general and administrative | 69 | 43 | 213 | 161 | |||||||||||||
Operating profit | 26 | 50 | 181 | 224 | |||||||||||||
Other income (expense) | (2 | ) | (2 | ) | (3 | ) | (2 | ) | |||||||||
Income before income taxes | 24 | 48 | 178 | 222 | |||||||||||||
Provision for income taxes | 8 | 14 | 62 | 75 | |||||||||||||
Net income | $ | 16 | $ | 34 | $ | 116 | $ | 147 | |||||||||
Earnings per share: | |||||||||||||||||
Basic earnings per common share | $ | 0.15 | $ | 0.32 | $ | 1.07 | $ | 1.37 | |||||||||
Diluted earnings per common share | $ | 0.14 | $ | 0.32 | $ | 1.06 | $ | 1.37 | |||||||||
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) | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
December 31 | December 31 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (1) | $ | 16 | $ | 34 | $ | 116 | $ | 147 | ||||||||
Interest, net (2) | - | - | (1 | ) | - | |||||||||||
Tax provision | 8 | 14 | 62 | 75 | ||||||||||||
Depreciation and amortization | 7 | 5 | 21 | 17 | ||||||||||||
EBITDA | $ | 31 | $ | 53 | $ | 198 | $ | 239 | ||||||||
EBITDA % (3) | 3.1 | % | 5.1 | % | 4.8 | % | 5.6 | % | ||||||||
(1) We believe that net income is the financial measure calculated and presented in accordance with U.S. generally accepted accounting principles that is most directly comparable to EBITDA. | ||||||||||||||||
(2) Interest, net was less than one million dollars for the three months ended December 31, 2014. | ||||||||||||||||
(3) EBITDA % is defined as EBITDA divided by Revenue. | ||||||||||||||||
BUSINESS SEGMENTS (UNAUDITED) | |||||||||||||||||
(In millions) | |||||||||||||||||
Three Months Ended |
Years Ended |
||||||||||||||||
December 31 |
December 31 |
||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue: | |||||||||||||||||
United States | $ | 679 | $ | 676 | $ | 2,793 | $ | 2,863 | |||||||||
Canada | 180 | 195 | 669 | 773 | |||||||||||||
International | 147 | 170 | 643 | 660 | |||||||||||||
Total revenue | $ | 1,006 | $ | 1,041 | $ | 4,105 | $ | 4,296 |
Source:
NOW Inc.
Daniel Molinaro, 281-823-4941