Last10K.com

Now Inc. (DNOW) SEC Filing 8-K Material Event for the period ending Wednesday, May 6, 2020

Now Inc.

CIK: 1599617 Ticker: DNOW

Exhibit 99.1

 

LOGO    Earnings Conference Call
   May 6, 2020
   8:00 a.m. CST
   1 (800) 446-1671 (North America)
   1 (847) 413-3362 (Outside North America)
   Webcast: ir.distributionnow.com

NOW Inc. Reports First Quarter 2020 Results

HOUSTON, TX, May 6, 2020 — NOW Inc. (NYSE: DNOW) announced results for the first quarter ended March 31, 2020.

Financial Highlights

 

   

Revenue was $604 million for the first quarter of 2020

 

   

Net loss was $331 million and non-GAAP net loss excluding other costs was $8 million for the first quarter of 2020

 

   

Diluted loss per share was $3.03 and non-GAAP diluted loss per share excluding other costs was $0.07 for the first quarter of 2020

 

   

Non-GAAP EBITDA excluding other costs for the first quarter of 2020 was $2 million

 

   

Cash provided by operating and investing activities was $28 million for the first quarter of 2020

 

   

Cash and cash equivalents was $202 million and long-term debt was zero at March 31, 2020

 

   

Current initiatives expected to generate approximately $100 million of warehousing, selling and administrative savings in 2020 compared to 2019, including 1,250 completed headcount reductions this year

Refer to Supplemental Information in this release for GAAP to non-GAAP reconciliations.

Dick Alario, Interim CEO of NOW Inc., noted, “The market faces a challenging environment due to steep declines in oil prices, rig counts and worldwide oil demand. Through our financial discipline, we entered this unprecedented period with zero debt, over $200 million in cash and access to ample liquidity under our credit facility. We have accelerated our structural transformation, which includes streamlining our organization and deploying technology to create additional customer value and revenue through our DigitalNOW® investment.

“While the timing of a recovery is uncertain, I am confident DNOW will be a much leaner, transformed company, well-positioned to capitalize on the next market upswing.”

Prior to the earnings conference call a presentation titled “NOW Inc. First Quarter 2020 Key Takeaways” will be available on the Company’s Investor Relations website.

About NOW Inc.

NOW Inc. is one of the largest distributors to energy and industrial markets on a worldwide basis, with a legacy of over 150 years. NOW Inc. operates primarily under the DistributionNOW and DNOW brands. Through its network of approximately 220 locations and 3,150 employees worldwide, NOW Inc. offers a comprehensive line of products and solutions for the upstream, midstream and downstream energy and industrial sectors. Our locations provide products and solutions to exploration and production companies, energy transportation companies, refineries, chemical companies, utilities, manufacturers and engineering and construction companies.

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. with the U.S. Securities and Exchange Commission, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.

Contact:

David Cherechinsky

Senior Vice President and Chief Financial Officer

(281) 823-4722


NOW INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

 

     March 31,
2020
    December 31,
2019
 
     (Unaudited)        
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 202     $ 183  

Receivables, net

     366       370  

Inventories, net

     434       465  

Assets held-for-sale

     —         34  

Prepaid and other current assets

     18       15  
  

 

 

   

 

 

 

Total current assets

     1,020       1,067  

Property, plant and equipment, net

     112       120  

Deferred income taxes

     2       2  

Goodwill

     —         245  

Intangibles, net

     —         90  

Other assets

     62       67  
  

 

 

   

 

 

 

Total assets

   $ 1,196     $ 1,591  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 258     $ 255  

Accrued liabilities

     119       127  

Liabilities held-for-sale

     —         6  

Other current liabilities

     8       8  
  

 

 

   

 

 

 

Total current liabilities

     385       396  

Long-term operating lease liabilities

     31       34  

Deferred income taxes

     —         4  

Other long-term liabilities

     12       13  
  

 

 

   

 

 

 

Total liabilities

     428       447  

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; 109,308,266 and 109,207,678 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively

     1       1  

Additional paid-in capital

     2,046       2,046  

Accumulated deficit

     (1,112     (775

Accumulated other comprehensive loss

     (167     (128
  

 

 

   

 

 

 

Total stockholders’ equity

     768       1,144  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 1,196     $ 1,591  
  

 

 

   

 

 

 

 

2


NOW INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In millions, except per share data)

 

     Three Months Ended  
     March 31,     December 31,  
     2020     2019     2019  

Revenue

   $ 604     $ 785     $ 639  

Operating expenses:

      

Cost of products

     487       627       514  

Warehousing, selling and administrative

     130       135       134  

Impairment charges

     320       —         128  
  

 

 

   

 

 

   

 

 

 

Operating profit (loss)

     (333     23       (137

Other expense

     —         (4     (2
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (333     19       (139

Income tax provision (benefit)

     (2     1       —    
  

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (331   $ 18     $ (139
  

 

 

   

 

 

   

 

 

 

Earnings (loss) per share:

      

Basic earnings (loss) per common share

   $ (3.03   $ 0.17     $ (1.27
  

 

 

   

 

 

   

 

 

 

Diluted earnings (loss) per common share

   $ (3.03   $ 0.16     $ (1.27
  

 

 

   

 

 

   

 

 

 

Weighted-average common shares outstanding, basic

     109       109       109  
  

 

 

   

 

 

   

 

 

 

Weighted-average common shares outstanding, diluted

     109       109       109  
  

 

 

   

 

 

   

 

 

 

NOW INC.

SUPPLEMENTAL INFORMATION

BUSINESS SEGMENTS (UNAUDITED)

(In millions)

 

     Three Months Ended  
     March 31,      December 31,  
     2020      2019      2019  

Revenue:

        

United States

   $ 441      $ 600      $ 468  

Canada

     78        86        76  

International

     85        99        95  
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 604      $ 785      $ 639  
  

 

 

    

 

 

    

 

 

 

 

3


NOW INC.

SUPPLEMENTAL INFORMATION (CONTINUED)

U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) TO NON-GAAP RECONCILIATIONS

NET INCOME (LOSS) TO NON-GAAP EBITDA EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED)

(In millions)

 

     Three Months Ended  
     March 31,     December 31,  
     2020     2019     2019  

GAAP net income (loss) (1)

   $ (331   $ 18     $ (139

Interest, net

     —         2       —    

Income tax provision (benefit)

     (2     1       —    

Depreciation and amortization

     10       10       11  

Other costs (2)

     325       —         133  
  

 

 

   

 

 

   

 

 

 

EBITDA excluding other costs

   $ 2     $ 31     $ 5  
  

 

 

   

 

 

   

 

 

 

EBITDA % excluding other costs (3)

     0.3     3.9     0.8

NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) EXCLUDING OTHER COSTS RECONCILIATION

(UNAUDITED)

(In millions)

 

     Three Months Ended  
     March 31,      December 31,  
     2020      2019      2019  

GAAP net income (loss) (1)

   $ (331    $ 18      $ (139

Other costs, net of tax (4) (5)

     323        (5      133  
  

 

 

    

 

 

    

 

 

 

Net income (loss) excluding other costs (5)

   $ (8    $ 13      $ (6
  

 

 

    

 

 

    

 

 

 

DILUTED EARNINGS (LOSS) PER SHARE TO NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED)

 

     Three Months Ended  
     March 31,      December 31,  
     2020      2019      2019  

GAAP diluted earnings (loss) per share (1)

   $ (3.03    $ 0.16      $ (1.27

Other costs, net of tax (4)

     2.96        (0.04      1.22  
  

 

 

    

 

 

    

 

 

 

Diluted earnings (loss) per share excluding other costs (5)

   $ (0.07    $ 0.12      $ (0.05
  

 

 

    

 

 

    

 

 

 

 

(1)

In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs, (ii) net income (loss) excluding other costs and (iii) diluted earnings (loss) per share excluding other costs. Each of these financial measures excludes the impact of certain other costs and therefore has not been calculated in accordance with GAAP. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included in the schedules herein.

(2)

Other costs for the three months ended March 31, 2020 included impairment charges, as well as, net separation and transaction-related expenses, which are included in operating loss.

(3)

EBITDA % excluding other costs is defined as EBITDA excluding other costs divided by Revenue.

(4)

Other costs, net of tax, for the three months ended March 31, 2020 included an expense of $2 million from changes in the valuation allowance recorded against the Company’s deferred tax assets; as well as, $316 million related to the impairment charges of goodwill, intangibles and other assets and $5 million in net separation and transaction-related expenses. The Company has excluded the impact of these items on its valuation allowance in computing net income (loss) excluding other costs.

(5)

Totals may not foot due to rounding.

 

4

View differences made from one to another to evaluate Now Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Now Inc..

Continue

Assess how Now Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Now Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Now Inc. provided additional information to their SEC Filing as exhibits

Ticker: DNOW
CIK: 1599617
Form Type: 8-K Corporate News
Accession Number: 0001193125-20-134277
Submitted to the SEC: Wed May 06 2020 6:54:43 AM EST
Accepted by the SEC: Wed May 06 2020
Period: Wednesday, May 6, 2020
Industry: Oil And Gas Field Machinery And Equipment
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/dnow/0001193125-20-134277.htm