National Oilwell Varco Announces Third Quarter 2015 Earnings
National Oilwell Varco, Inc. (NYSE: NOV) today reported that for its
third quarter ended September 30, 2015, it earned net income of $155
million, or $0.41 per fully diluted share, compared to second quarter
ended June 30, 2015 net income of $289 million, or $0.74 per fully
diluted share. Excluding other items and non-recurring charges from all
periods, third quarter net income was $232 million, or $0.61 per fully
diluted share, compared to $0.77 in the second quarter of 2015 and $1.62
in the third quarter of 2014. Third quarter 2015 other items were $55
million in pre-tax intangible asset impairment charges and $57 million
in pre-tax severance, facility closure, and other charges.
Revenues for the third quarter of 2015 were $3.31 billion, a decrease of
15 percent from the second quarter of 2015 and a decrease of 41 percent
from the third quarter of 2014. Operating profit for the quarter,
excluding the other items, was $346 million, or 10.5 percent of sales.
EBITDA, excluding other items, was $511 million, or 15.5 percent of
sales, down 19 percent sequentially and 58 percent from the prior year.
Operating leverage, or the change in operating profit divided by the
change in revenue, excluding other items, was 18 percent from the second
quarter of 2015 to the third quarter of 2015. SG&A expenses declined 15
percent sequentially and 34 percent from the third quarter of last year.
During the third quarter of 2015, the Company completed its share
repurchase program repurchasing and retiring 10.85 million shares of its
common stock at an average price of $40.98 per share for a total
purchase price of $444 million. Since initiating the share buyback
program in September 2014, the Company repurchased 55.6 million shares,
or 13 percent of its shares outstanding.
Ending backlog for the third quarter of 2015 was $8.02 billion for the
Company’s Rig Systems segment and $1.17 billion for the Company’s
Completion & Production Solutions segment.
Clay C. Williams, Chairman, President and CEO of National Oilwell Varco,
stated, “The sharp decline in oil prices and activity since late last
year has impacted each of our segments, and will drive activity lower in
the fourth quarter. We believe our strong financial resources will
enable National Oilwell Varco to invest in the extraordinary
opportunities that will arise from this downturn, and we expect to
emerge with greater capability and efficiency. In the meantime, with
limited visibility into the timing of a recovery, we remain focused on
managing costs and improving performance, while continuing to develop
technologies that help our customers to improve their returns in a lower
commodity price world.”
Rig Systems Segment
Rig Systems generated revenues of $1.50 billion in the third quarter of
2015, a decrease of 23 percent from the second quarter of 2015 and a
decrease of 44 percent from the third quarter of 2014. Operating profit
was $275 million, or 18.4 percent of sales. EBITDA was $300 million, or
20.1 percent of sales. Revenue out of backlog was $1.30 billion.
Backlog for capital equipment orders for Rig Systems at September 30,
2015 was $8.02 billion, down 11 percent from the second quarter of 2015,
and down 44 percent from the third quarter of 2014. New orders during
the quarter were $367 million.
Rig Aftermarket Segment
Rig Aftermarket generated revenues of $570 million in the third quarter
of 2015, a decrease of 13 percent from the second quarter of 2015 and a
decrease of 32 percent from the third quarter of 2014. Operating profit
was $146 million, or 25.6 percent of sales. EBITDA was $154 million, or
27.0 percent of sales.
Wellbore Technologies Segment
Wellbore Technologies generated revenues of $834 million in the third
quarter of 2015, a decrease of 13 percent from the second quarter of
2015 and a decrease of 43 percent from the third quarter of 2014.
Operating profit was $22 million, or 2.6 percent of sales. EBITDA was
$119 million, or 14.3 percent of sales.
Completion & Production Solutions Segment
Completion & Production Solutions generated revenues of $798 million in
the third quarter of 2015, a decrease of nine percent from the second
quarter of 2015 and a decrease of 33 percent from the third quarter of
2014. Operating profit was $63 million, or 7.9 percent of sales. EBITDA
was $117 million, or 14.7 percent of sales. Revenues out of backlog were
$472 million.
Backlog for capital equipment orders for Completion & Production
Solutions at September 30, 2015 was $1.17 billion, flat from the second
quarter of 2015, and down 44 percent from the third quarter of 2014. New
orders during the quarter were $467 million.
The Company has scheduled a conference call for October 28, 2015, at
8:00 a.m. Central Time to discuss third quarter results. The call will
be broadcast through the Investor Relations link on National Oilwell
Varco’s web site at www.nov.com,
and a replay will be available on the site for thirty days following the
conference. Participants may also join the conference call by dialing 1-866-312-4825
within North America or 1-720-634-2948 outside of North America five
to ten minutes prior to the scheduled start time and asking for the
“National Oilwell Varco Earnings Conference Call.”
National Oilwell Varco is a worldwide leader in the design, manufacture
and sale of equipment and components used in oil and gas drilling and
production operations, and the provision of oilfield services to the
upstream oil and gas industry.
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
National Oilwell Varco with the Securities and Exchange Commission,
including the Annual Report on Form 10-K, which identify significant
risk factors which could cause actual results to differ from those
contained in the forward-looking statements.
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|
|
|
|
NATIONAL OILWELL VARCO, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(In millions, except share data)
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,846
|
|
|
$
|
3,536
|
|
Receivables, net
|
|
|
3,325
|
|
|
|
4,416
|
|
Inventories, net
|
|
|
5,172
|
|
|
|
5,281
|
|
Costs in excess of billings
|
|
|
1,669
|
|
|
|
1,878
|
|
Deferred income taxes
|
|
|
391
|
|
|
|
447
|
|
Prepaid and other current assets
|
|
|
530
|
|
|
|
604
|
|
Total current assets
|
|
|
12,933
|
|
|
|
16,162
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
3,122
|
|
|
|
3,362
|
|
Deferred income taxes
|
|
|
520
|
|
|
|
503
|
|
Goodwill
|
|
|
8,465
|
|
|
|
8,539
|
|
Intangibles, net
|
|
|
4,087
|
|
|
|
4,444
|
|
Investment in unconsolidated affiliates
|
|
|
331
|
|
|
|
362
|
|
Other assets
|
|
|
170
|
|
|
|
190
|
|
|
|
$
|
29,628
|
|
|
$
|
33,562
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
731
|
|
|
$
|
1,189
|
|
Accrued liabilities
|
|
|
2,810
|
|
|
|
3,518
|
|
Billings in excess of costs
|
|
|
1,180
|
|
|
|
1,775
|
|
Current portion of long-term debt and short-term borrowings
|
|
|
2
|
|
|
|
152
|
|
Accrued income taxes
|
|
|
112
|
|
|
|
431
|
|
Deferred income taxes
|
|
|
358
|
|
|
|
309
|
|
Total current liabilities
|
|
|
5,193
|
|
|
|
7,374
|
|
|
|
|
|
|
Long-term debt
|
|
|
3,981
|
|
|
|
3,014
|
|
Deferred income taxes
|
|
|
1,826
|
|
|
|
1,972
|
|
Other liabilities
|
|
|
422
|
|
|
|
430
|
|
Total liabilities
|
|
|
11,422
|
|
|
|
12,790
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
Common stock – par value $.01; 1 billion shares authorized;
375,735,085 and 418,977,608
|
|
|
|
|
shares issued and outstanding at September 30, 2015 and December 31,
2014
|
|
|
4
|
|
|
|
4
|
|
Additional paid-in capital
|
|
|
6,201
|
|
|
|
8,341
|
|
Accumulated other comprehensive loss
|
|
|
(1,477
|
)
|
|
|
(834
|
)
|
Retained earnings
|
|
|
13,398
|
|
|
|
13,181
|
|
Total Company stockholders’ equity
|
|
|
18,126
|
|
|
|
20,692
|
|
Noncontrolling interests
|
|
|
80
|
|
|
|
80
|
|
Total stockholders’ equity
|
|
|
18,206
|
|
|
|
20,772
|
|
|
|
$
|
29,628
|
|
|
$
|
33,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
|
CONSOLIDATED STATEMENTS OF INCOME (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:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
1,496
|
|
|
$
|
2,659
|
|
|
$
|
1,930
|
|
|
$
|
5,949
|
|
|
$
|
7,287
|
|
Rig Aftermarket
|
|
|
570
|
|
|
|
837
|
|
|
|
657
|
|
|
|
1,946
|
|
|
|
2,372
|
|
Wellbore Technologies
|
|
|
834
|
|
|
|
1,469
|
|
|
|
956
|
|
|
|
2,961
|
|
|
|
4,193
|
|
Completion & Production Solutions
|
|
|
798
|
|
|
|
1,191
|
|
|
|
873
|
|
|
|
2,619
|
|
|
|
3,320
|
|
Eliminations
|
|
|
(392
|
)
|
|
|
(569
|
)
|
|
|
(507
|
)
|
|
|
(1,440
|
)
|
|
|
(1,441
|
)
|
Total revenue
|
|
|
3,306
|
|
|
|
5,587
|
|
|
|
3,909
|
|
|
|
12,035
|
|
|
|
15,731
|
|
Gross profit
|
|
|
700
|
|
|
|
1,524
|
|
|
|
872
|
|
|
|
2,750
|
|
|
|
4,270
|
|
Gross profit %
|
|
|
21.2
|
%
|
|
|
27.3
|
%
|
|
|
22.3
|
%
|
|
|
22.9
|
%
|
|
|
27.1
|
%
|
Selling, general, and administrative
|
|
|
354
|
|
|
|
535
|
|
|
|
417
|
|
|
|
1,257
|
|
|
|
1,519
|
|
Other items
|
|
|
112
|
|
|
|
1
|
|
|
|
17
|
|
|
|
251
|
|
|
|
51
|
|
Operating profit
|
|
|
234
|
|
|
|
988
|
|
|
|
438
|
|
|
|
1,242
|
|
|
|
2,700
|
|
Interest and financial costs
|
|
|
(24
|
)
|
|
|
(26
|
)
|
|
|
(26
|
)
|
|
|
(76
|
)
|
|
|
(79
|
)
|
Interest income
|
|
|
2
|
|
|
|
4
|
|
|
|
2
|
|
|
|
9
|
|
|
|
13
|
|
Equity income in unconsolidated affiliates
|
|
|
-
|
|
|
|
9
|
|
|
|
7
|
|
|
|
16
|
|
|
|
42
|
|
Other income (expense), net
|
|
|
(20
|
)
|
|
|
9
|
|
|
|
(30
|
)
|
|
|
(106
|
)
|
|
|
(12
|
)
|
Income before income taxes
|
|
|
192
|
|
|
|
984
|
|
|
|
391
|
|
|
|
1,085
|
|
|
|
2,664
|
|
Provision for income taxes
|
|
|
36
|
|
|
|
283
|
|
|
|
105
|
|
|
|
330
|
|
|
|
806
|
|
Income from continuing operations
|
|
|
156
|
|
|
|
701
|
|
|
|
286
|
|
|
|
755
|
|
|
|
1,858
|
|
Income from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
52
|
|
Net income
|
|
|
156
|
|
|
|
701
|
|
|
|
286
|
|
|
|
755
|
|
|
|
1,910
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
1
|
|
|
|
2
|
|
|
|
(3
|
)
|
|
|
1
|
|
|
|
3
|
|
Net income attributable to Company
|
|
$
|
155
|
|
|
$
|
699
|
|
|
$
|
289
|
|
|
$
|
754
|
|
|
$
|
1,907
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.41
|
|
|
$
|
1.63
|
|
|
$
|
0.75
|
|
|
$
|
1.92
|
|
|
$
|
4.34
|
|
Income from discontinued operations
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.12
|
|
Net income attributable to Company
|
|
$
|
0.41
|
|
|
$
|
1.63
|
|
|
$
|
0.75
|
|
|
$
|
1.92
|
|
|
$
|
4.46
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.41
|
|
|
$
|
1.62
|
|
|
$
|
0.74
|
|
|
$
|
1.92
|
|
|
$
|
4.31
|
|
Income from discontinued operations
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.12
|
|
Net income attributable to Company
|
|
$
|
0.41
|
|
|
$
|
1.62
|
|
|
$
|
0.74
|
|
|
$
|
1.92
|
|
|
$
|
4.43
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
380
|
|
|
|
429
|
|
|
|
387
|
|
|
|
392
|
|
|
|
428
|
|
Diluted
|
|
|
381
|
|
|
|
431
|
|
|
|
388
|
|
|
|
393
|
|
|
|
430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
|
OPERATING PROFIT – AS ADJUSTED SUPPLEMENTAL SCHEDULE (Unaudited)
|
(In millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
1,496
|
|
|
$
|
2,659
|
|
|
$
|
1,930
|
|
|
$
|
5,949
|
|
|
$
|
7,287
|
|
Rig Aftermarket
|
|
|
570
|
|
|
|
837
|
|
|
|
657
|
|
|
|
1,946
|
|
|
|
2,372
|
|
Wellbore Technologies
|
|
|
834
|
|
|
|
1,469
|
|
|
|
956
|
|
|
|
2,961
|
|
|
|
4,193
|
|
Completion & Production Solutions
|
|
|
798
|
|
|
|
1,191
|
|
|
|
873
|
|
|
|
2,619
|
|
|
|
3,320
|
|
Eliminations
|
|
|
(392
|
)
|
|
|
(569
|
)
|
|
|
(507
|
)
|
|
|
(1,440
|
)
|
|
|
(1,441
|
)
|
Total revenue
|
|
$
|
3,306
|
|
|
|
5,587
|
|
|
$
|
3,909
|
|
|
$
|
12,035
|
|
|
|
15,731
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
275
|
|
|
$
|
533
|
|
|
$
|
395
|
|
|
$
|
1,158
|
|
|
$
|
1,485
|
|
Rig Aftermarket
|
|
|
146
|
|
|
|
229
|
|
|
|
145
|
|
|
|
490
|
|
|
|
637
|
|
Wellbore Technologies
|
|
|
22
|
|
|
|
278
|
|
|
|
47
|
|
|
|
193
|
|
|
|
771
|
|
Completion & Production Solutions
|
|
|
63
|
|
|
|
184
|
|
|
|
81
|
|
|
|
252
|
|
|
|
485
|
|
Unallocated expenses and eliminations
|
|
|
(160
|
)
|
|
|
(235
|
)
|
|
|
(213
|
)
|
|
|
(600
|
)
|
|
|
(627
|
)
|
Total operating profit (before other items)
|
|
$
|
346
|
|
|
$
|
989
|
|
|
$
|
455
|
|
|
$
|
1,493
|
|
|
$
|
2,751
|
|
Operating profit %:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
|
18.4
|
%
|
|
|
20.0
|
%
|
|
|
20.5
|
%
|
|
|
19.5
|
%
|
|
|
20.4
|
%
|
Rig Aftermarket
|
|
|
25.6
|
%
|
|
|
27.4
|
%
|
|
|
22.1
|
%
|
|
|
25.2
|
%
|
|
|
26.9
|
%
|
Wellbore Technologies
|
|
|
2.6
|
%
|
|
|
18.9
|
%
|
|
|
4.9
|
%
|
|
|
6.5
|
%
|
|
|
18.4
|
%
|
Completion & Production Solutions
|
|
|
7.9
|
%
|
|
|
15.4
|
%
|
|
|
9.3
|
%
|
|
|
9.6
|
%
|
|
|
14.6
|
%
|
Total operating profit % (before other items)
|
|
|
10.5
|
%
|
|
|
17.7
|
%
|
|
|
11.6
|
%
|
|
|
12.4
|
%
|
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
|
AS ADJUSTED BEFORE DEPRECIATION & AMORTIZATION SUPPLEMENTAL
SCHEDULE (Unaudited)
|
(In millions)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
Operating profit excluding other items (Note 1):
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
$
|
275
|
|
|
$
|
533
|
|
|
$
|
395
|
|
|
$
|
1,158
|
|
|
$
|
1,485
|
|
Rig Aftermarket
|
|
146
|
|
|
|
229
|
|
|
|
145
|
|
|
|
490
|
|
|
|
637
|
|
Wellbore Technologies
|
|
22
|
|
|
|
278
|
|
|
|
47
|
|
|
|
193
|
|
|
|
771
|
|
Completion & Production Solutions
|
|
63
|
|
|
|
184
|
|
|
|
81
|
|
|
|
252
|
|
|
|
485
|
|
Unallocated expenses and eliminations
|
|
(160
|
)
|
|
|
(235
|
)
|
|
|
(213
|
)
|
|
|
(600
|
)
|
|
|
(627
|
)
|
Total operating profit excluding other items
|
$
|
346
|
|
|
$
|
989
|
|
|
$
|
455
|
|
|
$
|
1,493
|
|
|
$
|
2,751
|
|
Depreciation & amortization:
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
$
|
25
|
|
|
$
|
21
|
|
|
$
|
24
|
|
|
$
|
72
|
|
|
$
|
65
|
|
Rig Aftermarket
|
|
8
|
|
|
|
7
|
|
|
|
7
|
|
|
|
22
|
|
|
|
20
|
|
Wellbore Technologies
|
|
97
|
|
|
|
112
|
|
|
|
99
|
|
|
|
301
|
|
|
|
328
|
|
Completion & Production Solutions
|
|
54
|
|
|
|
58
|
|
|
|
60
|
|
|
|
169
|
|
|
|
166
|
|
Unallocated expenses and eliminations
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total depreciation & amortization
|
$
|
184
|
|
|
$
|
198
|
|
|
$
|
190
|
|
|
$
|
564
|
|
|
$
|
579
|
|
Operating profit as adjusted before depreciation & amortization
(Note 1):
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
$
|
300
|
|
|
$
|
554
|
|
|
$
|
419
|
|
|
$
|
1,230
|
|
|
$
|
1,550
|
|
Rig Aftermarket
|
|
154
|
|
|
|
236
|
|
|
|
152
|
|
|
|
512
|
|
|
|
657
|
|
Wellbore Technologies
|
|
119
|
|
|
|
390
|
|
|
|
146
|
|
|
|
494
|
|
|
|
1,099
|
|
Completion & Production Solutions
|
|
117
|
|
|
|
242
|
|
|
|
141
|
|
|
|
421
|
|
|
|
651
|
|
Unallocated expenses and eliminations
|
|
(160
|
)
|
|
|
(235
|
)
|
|
|
(213
|
)
|
|
|
(600
|
)
|
|
|
(627
|
)
|
Total operating profit as adjusted before depreciation & amortization
|
$
|
530
|
|
|
$
|
1,187
|
|
|
$
|
645
|
|
|
$
|
2,057
|
|
|
$
|
3,330
|
|
Operating profit % as adjusted before depreciation & amortization
(Note 1):
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
20.1
|
%
|
|
|
20.8
|
%
|
|
|
21.7
|
%
|
|
|
20.7
|
%
|
|
|
21.3
|
%
|
Rig Aftermarket
|
|
27.0
|
%
|
|
|
28.2
|
%
|
|
|
23.1
|
%
|
|
|
26.3
|
%
|
|
|
27.7
|
%
|
Wellbore Technologies
|
|
14.3
|
%
|
|
|
26.5
|
%
|
|
|
15.3
|
%
|
|
|
16.7
|
%
|
|
|
26.2
|
%
|
Completion & Production Solutions
|
|
14.7
|
%
|
|
|
20.3
|
%
|
|
|
16.2
|
%
|
|
|
16.1
|
%
|
|
|
19.6
|
%
|
Total operating profit % as adjusted before depreciation &
amortization
|
|
16.0
|
%
|
|
|
21.2
|
%
|
|
|
16.5
|
%
|
|
|
17.1
|
%
|
|
|
21.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit as adjusted before depreciation &
amortization:
|
$
|
530
|
|
|
$
|
1,187
|
|
|
$
|
645
|
|
|
$
|
2,057
|
|
|
$
|
3,330
|
|
Other items
|
|
(112
|
)
|
|
|
(1
|
)
|
|
|
(17
|
)
|
|
|
(251
|
)
|
|
|
(51
|
)
|
Interest income
|
|
2
|
|
|
|
4
|
|
|
|
2
|
|
|
|
9
|
|
|
|
13
|
|
Equity income in unconsolidated affiliates
|
|
-
|
|
|
|
9
|
|
|
|
7
|
|
|
|
16
|
|
|
|
42
|
|
Other income (expense), net
|
|
(20
|
)
|
|
|
9
|
|
|
|
(30
|
)
|
|
|
(106
|
)
|
|
|
(12
|
)
|
Net (income) loss attributable to noncontrolling interest
|
|
(1
|
)
|
|
|
(2
|
)
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
(3
|
)
|
EBITDA (Note 1)
|
$
|
399
|
|
|
$
|
1,206
|
|
|
$
|
610
|
|
|
$
|
1,724
|
|
|
$
|
3,319
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA (Note 1):
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Company
|
$
|
155
|
|
|
$
|
699
|
|
|
$
|
289
|
|
|
$
|
754
|
|
|
$
|
1,907
|
|
Income from discontinued operations
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(52
|
)
|
Provision for income taxes
|
|
36
|
|
|
|
283
|
|
|
|
105
|
|
|
|
330
|
|
|
|
806
|
|
Interest expense
|
|
24
|
|
|
|
26
|
|
|
|
26
|
|
|
|
76
|
|
|
|
79
|
|
Depreciation and amortization
|
|
184
|
|
|
|
198
|
|
|
|
190
|
|
|
|
564
|
|
|
|
579
|
|
EBITDA
|
|
399
|
|
|
|
1,206
|
|
|
|
610
|
|
|
|
1,724
|
|
|
|
3,319
|
|
Other items
|
|
112
|
|
|
|
1
|
|
|
|
17
|
|
|
|
251
|
|
|
|
51
|
|
EBITDA excluding other items (Note 1)
|
$
|
511
|
|
|
$
|
1,207
|
|
|
$
|
627
|
|
|
$
|
1,975
|
|
|
$
|
3,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
|
OPERATING (NON-GAAP) DILUTED EARNINGS PER SHARE RECONCILIATION
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Company
|
|
$
|
0.41
|
|
$
|
1.62
|
|
$
|
0.74
|
|
$
|
1.92
|
|
$
|
4.43
|
|
Income from discontinued operations
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.12
|
)
|
Income from continuing operations
|
|
|
0.41
|
|
|
1.62
|
|
|
0.74
|
|
|
1.92
|
|
|
4.31
|
|
Other items and non-recurring charges:
|
|
|
|
|
|
|
|
|
|
|
Other items
|
|
|
0.20
|
|
|
-
|
|
|
0.03
|
|
|
0.42
|
|
|
0.07
|
|
Venezuela asset write-down
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.02
|
|
|
-
|
|
Tax exposure
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.17
|
|
|
-
|
|
Operating (non-GAAP) (Note 1)
|
|
|
0.61
|
|
|
1.62
|
|
|
0.77
|
|
|
2.53
|
|
|
4.38
|
|
Amortization of purchased intangible assets
|
|
|
0.16
|
|
|
0.14
|
|
|
0.16
|
|
|
0.46
|
|
|
0.43
|
|
Operating (non-GAAP) excluding amortization of purchased intangible
assets (Note 1)
|
|
$
|
0.77
|
|
$
|
1.76
|
|
$
|
0.93
|
|
$
|
2.99
|
|
$
|
4.81
|
|
Note 1: In an effort to provide investors with additional
information regarding our results as determined by GAAP, we disclose, as
appropriate, various non-GAAP financial measures in our quarterly
earnings press releases and other public disclosures. The primary
non-GAAP financial measures we focus on, when applicable, are: (i)
revenue excluding other items, (ii) operating profit excluding other
items, (iii) operating profit percentage excluding other items, (iv)
operating profit excluding other items before depreciation &
amortization, (v) operating profit percentage excluding other items
before depreciation & amortization, (vi) EBITDA, (vii) EBITDA excluding
other items, (viii) Operating (non-GAAP) per fully diluted share and
(ix) Operating (non-GAAP) excluding amortization of purchased intangible
assets per fully diluted share. Each of these financial measures
excludes the impact of certain items 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 here within.
We use these non-GAAP financial measures internally to evaluate and
manage the Company’s operations because we believe it provides useful
supplemental information regarding the Company’s on-going economic
performance. We have chosen to provide this information to investors to
enable them to perform more meaningful comparisons of operating results
and as a means to emphasize the results of on-going operations.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151028005394/en/ Copyright Business Wire 2015
Source: Business Wire
(October 28, 2015 - 7:00 AM EDT)
News by QuoteMedia
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|