NOW Inc. Announces Third Quarter 2015 Financial Results
Also included in our third quarter results is a pre-tax
The Company’s revenues for the third quarter of 2015 were
“We were pleased to complete the acquisition of two businesses in the
quarter, Odessa Pumps and Equipment in
Third quarter revenues for
Revenues for the third quarter of 2015 for
International
International operations generated third quarter revenues of
The Company has scheduled a conference call for
Additionally, concurrent to this release, the Company has provided a summary of this financial information, which includes annual and sequential comparisons that can be found through the Investor Relations link on its web site under the Events and Presentation tab.
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) | |||||||||
September 30, | December 31, | ||||||||
2015 | 2014 | ||||||||
(Unaudited) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 126 | $ | 195 | |||||
Receivables, net | 564 | 851 | |||||||
Inventories, net | 771 | 949 | |||||||
Deferred income taxes | 47 | 22 | |||||||
Prepaid and other current assets | 24 | 30 | |||||||
Total current assets | 1,532 | 2,047 | |||||||
Property, plant and equipment, net | 162 | 124 | |||||||
Deferred income taxes | 43 | 2 | |||||||
Goodwill | 296 | 346 | |||||||
Intangibles, net | 148 | 73 | |||||||
Other assets | 5 | 4 | |||||||
Total assets | $ | 2,186 | $ | 2,596 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 292 | $ | 490 | |||||
Accrued liabilities | 97 | 125 | |||||||
Other current liabilities | - | 5 | |||||||
Total current liabilities | 389 | 620 | |||||||
Long-term debt | 120 |
- |
|||||||
Deferred income taxes | 15 | 10 | |||||||
Other long-term liabilities | 4 |
- |
|||||||
Total liabilities | 528 | 630 | |||||||
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; | |||||||||
107,204,061 and 107,067,457 shares issued and outstanding, respectively | 1 | 1 | |||||||
Additional paid-in capital | 1,969 | 1,952 | |||||||
Retained earnings (deficit) | (195 | ) | 58 | ||||||
Accumulated other comprehensive loss | (117 | ) | (45 | ) | |||||
Total stockholders' equity | 1,658 | 1,966 | |||||||
Total liabilities and stockholders' equity | $ | 2,186 | $ | 2,596 |
NOW INC. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||
(In millions, except per share data) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | June 30, | September 30, | |||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||
Revenue | $ | 753 | $ | 1,070 | $ | 750 | $ | 2,366 | $ | 3,099 | |||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of products | 636 | 857 | 626 | 1,970 | 2,485 | ||||||||||||||||
Warehousing, selling and administrative | 153 | 163 | 151 | 467 | 459 | ||||||||||||||||
Impairment of goodwill | 255 |
- |
- |
255 |
- |
||||||||||||||||
Operating profit (loss) | (291 | ) | 50 | (27 | ) | (326 | ) | 155 | |||||||||||||
Other income (expense) |
- |
(1 | ) | (2 | ) | (6 | ) | (1 | ) | ||||||||||||
Income (loss) before income taxes | (291 | ) | 49 | (29 | ) | (332 | ) | 154 | |||||||||||||
Income tax provision (benefit) | (67 | ) | 17 | (10 | ) | (79 | ) | 54 | |||||||||||||
Net income (loss) | $ | (224 | ) | $ | 32 | $ | (19 | ) | $ | (253 | ) | $ | 100 | ||||||||
Earnings (loss) per share: | |||||||||||||||||||||
Basic earnings (loss) per common share | $ | (2.09 | ) | $ | 0.30 | $ | (0.18 | ) | $ | (2.36 | ) | $ | 0.93 | ||||||||
Diluted earnings (loss) per common share | $ | (2.09 | ) | $ | 0.30 | $ | (0.18 | ) | $ | (2.36 | ) | $ | 0.93 | ||||||||
Weighted-average common shares outstanding, basic | 107 | 107 | 107 | 107 | 107 | ||||||||||||||||
Weighted-average common shares outstanding, diluted | 107 | 108 | 107 | 107 | 108 |
NOW INC. SUPPLEMENTAL INFORMATION BUSINESS SEGMENTS (UNAUDITED) (In millions) |
|||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | |||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||
Revenue: | |||||||||||||||
United States | $ | 497 | $ | 748 | $496 | $ | 1,594 | $ | 2,114 | ||||||
Canada | 94 | 173 | 89 | 299 | 489 | ||||||||||
International | 162 | 149 | 165 | 473 | 496 | ||||||||||
Total revenue | 753 | 1,070 | 750 | 2,366 | 3,099 |
NOW INC. |
||||||||||||||||||||
NET INCOME (LOSS) TO EBITDA EXCLUDING OTHER COSTS
RECONCILIATION (UNAUDITED) |
||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
Net income (loss) (1) | $ | (224 | ) | $ | 32 | $ | (19 | ) | $ | (253 | ) | $ | 100 | |||||||
Interest, net | 1 |
- |
- |
1 |
- |
|||||||||||||||
Income tax provision (benefit) | (67 | ) | 17 | (10 | ) | (79 | ) | 54 | ||||||||||||
Depreciation and amortization | 10 | 4 | 9 | 26 | 14 | |||||||||||||||
Other costs (2) | 260 |
- |
3 | 272 |
- |
|||||||||||||||
EBITDA excluding other costs | $ | (20 | ) | $ | 53 | $ | (17 | ) | $ | (33 | ) | $ | 168 | |||||||
EBITDA % excluding other costs (3) | -2.7 | % | 5.0 | % | -2.3 | % | -1.4 | % | 5.4 | % |
DILUTED EARNINGS PER SHARE (“EPS”) TO DILUTED EPS EXCLUDING
OTHER COSTS RECONCILIATION |
||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||
GAAP diluted earnings (loss) per share (4) | $ | (2.09 | ) | $ | 0.30 | $ | (0.18 | ) | $ | (2.36 | ) | $ | 0.93 | |||||
Other costs (2) | 1.92 |
- |
0.02 | 2.00 |
- |
|||||||||||||
Diluted earnings (loss) per share excluding other costs | $ | (0.17 | ) | $ | 0.30 | $ | (0.16 | ) | $ | (0.36 | ) | $ | 0.93 |
(1) We believe that net income (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 primarily includes the estimated goodwill impairment of $255 million in the three and nine months ended September 30, 2015 and 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 profit (loss). Other costs, net of tax, in the quarter ended September 30, 2015, June 30, 2015 and March 31, 2015 were approximately $206 million, $2 million and $7 million, respectively. |
(3) EBITDA % excluding other costs is defined as EBITDA excluding other costs divided by Revenue. |
(4) We believe that diluted earnings (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 earnings (loss) per share excluding other costs. Diluted earnings (loss) per share excluding other costs measures the Company’s operating performance without regard to certain expenses. Diluted earnings (loss) per share excluding other costs is not a presentation made in accordance with GAAP and the Company’s computation of diluted earnings (loss) per share excluding other costs may vary from others in the industry. Diluted earnings (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. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151103005425/en/
Source:
NOW Inc.
Daniel Molinaro, 281-823-4941