Earnings Conference Call August 7, 2024
8:00 a.m. CT 1 (888) 660-6431 (within North America) 1 (929)
203-2118 (outside of North America) Access Code: 7372055 Webcast:
ir.dnow.com
DNOW Inc. (NYSE: DNOW) announced results for the second quarter
ended June 30, 2024.
Second Quarter 2024 Highlights
- Revenue was $633 million for the second quarter of 2024
- Net income attributable to DNOW Inc. was $24 million, or $0.21
per diluted share, for the second quarter of 2024
- Non-GAAP net income attributable to DNOW Inc. excluding other
costs was $28 million, or $0.25 per diluted share, for the second
quarter of 2024
- EBITDA excluding other costs was $50 million or 7.9% of revenue
for the second quarter of 2024
- Cash provided by operating activities was $21 million for the
second quarter of 2024 and $211 million for the trailing four
quarters ending June 30, 2024
- Repurchased $10 million of common stock in the second quarter
of 2024
- Cash and cash equivalents was $197 million and long-term debt
was zero at June 30, 2024 with total liquidity of approximately
$579 million
David Cherechinsky, President and CEO of DNOW, added, “We are
delighted with the growth we achieved during the second quarter, in
a challenging market, where we delivered $50 million in EBITDA and
produced $18 million in free cash flow, bringing our free cash flow
haul to $201 million over the past four quarters. We
opportunistically repurchased $10 million in shares in the quarter
and are on a path to complete the $80 million share repurchase
program this year.
We continue to execute on our strategy to bolster DNOW’s
capabilities and expand our core market, while further penetrating
into midstream, energy evolution and adjacent industrial markets,
providing additional opportunities for growth. The future remains
bright thanks to our dedicated, skilled and passionate employees
who work tirelessly and successfully to help solve our customers’
complex operational and supply chain challenges.
With $197 million in cash, no debt and $579 million of total
liquidity, we continue to pursue complementary, margin accretive
acquisitions where the combination would maximize shareholder value
and fuel future DNOW success.”
Prior to the earnings conference call a presentation titled
“DNOW Second Quarter 2024 Key Takeaways” will be available on the
Company’s Investor Relations website.
About DNOW
DNOW is a worldwide supplier of energy and industrial products
and packaged, engineered process and production equipment with a
legacy of over 160 years. Headquartered in Houston, Texas, with
approximately 2,600 employees and a network of locations worldwide,
we offer a broad set of supply chain solutions combined with a
suite of digital offerings branded as DigitalNOW® that provide
customers world-class technology for digital commerce, data and
information management. Our locations provide products and
solutions to exploration and production, midstream transmission and
storage companies, refineries, chemical companies, utilities,
mining, municipal water, manufacturers, engineering and
construction as well as companies operating in the decarbonization,
energy transition and renewables end markets.
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 DNOW 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.
DNOW INC.
CONSOLIDATED BALANCE
SHEETS
(In millions, except share
data)
June 30, December 31,
2024
2023
ASSETS Current assets: Cash and cash equivalents
$
197
$
299
Receivables, net
403
384
Inventories, net
399
366
Prepaid and other current assets
24
19
Total current assets
1,023
1,068
Property, plant and equipment, net
139
131
Deferred income taxes
105
118
Goodwill
192
139
Intangibles, net
57
28
Other assets
47
45
Total assets
$
1,563
$
1,529
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable
$
278
$
288
Accrued liabilities
123
120
Other current liabilities
11
10
Total current liabilities
412
418
Long-term operating lease liabilities
32
30
Other long-term liabilities
20
18
Total liabilities
464
466
Commitments and contingencies Stockholders' equity: Preferred stock
- par value $0.01; 20 million shares authorized; no shares issued
andoutstanding
−
−
Common stock - par value $0.01; 330 million shares authorized;
106,549,496 and 106,257,565shares issued and outstanding at June
30, 2024 and December 31, 2023, respectively
1
1
Additional paid-in capital
2,028
2,032
Accumulated deficit
(783
)
(828
)
Accumulated other comprehensive loss
(151
)
(145
)
DNOW Inc. stockholders' equity
1,095
1,060
Noncontrolling interest
4
3
Total stockholders' equity
1,099
1,063
Total liabilities and stockholders' equity
$
1,563
$
1,529
DNOW INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
(In millions, except per share
data)
Three Months Ended Six Months Ended June 30, March 31, June
30,
2024
2023
2024
2024
2023
Revenue
$
633
$
594
$
563
$
1,196
$
1,178
Operating expenses: Cost of products
495
460
434
929
907
Warehousing, selling and administrative
105
98
101
206
200
Operating profit
33
36
28
61
71
Other income (expense)
−
(1
)
1
1
(1
)
Income before income taxes
33
35
29
62
70
Income tax provision
8
1
8
16
4
Net income
25
34
21
46
66
Net income attributable to noncontrolling interest
1
−
−
1
1
Net income attributable to DNOW Inc.
$
24
$
34
$
21
$
45
$
65
Earnings per share attributable to DNOW Inc. stockholders:
Basic
$
0.21
$
0.31
$
0.20
$
0.41
$
0.59
Diluted
$
0.21
$
0.31
$
0.19
$
0.41
$
0.59
Weighted-average common shares outstanding, basic
107
107
106
107
108
Weighted-average common shares outstanding, diluted
108
108
107
107
109
DNOW INC.
SUPPLEMENTAL
INFORMATION
BUSINESS SEGMENTS
(UNAUDITED)
(In millions)
Three Months Ended Six Months Ended June 30, March 31, June 30,
2024
2023
2024
2024
2023
Revenue: United States
$
512
$
456
$
435
$
947
$
883
Canada
56
66
66
122
149
International
65
72
62
127
146
Total revenue
$
633
$
594
$
563
$
1,196
$
1,178
DNOW INC.
SUPPLEMENTAL INFORMATION
(CONTINUED)
U.S. GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES (GAAP) TO NON-GAAP RECONCILIATIONS
NET INCOME ATTRIBUTABLE TO
DNOW INC. TO NON-GAAP EBITDA EXCLUDING OTHER COSTS RECONCILIATION
(UNAUDITED)
(In millions)
Three Months Ended Six Months Ended June 30, March 31, June
30,
2024
2023
2024
2024
2023
GAAP net income attributable to DNOW Inc. (1)
$
24
$
34
$
21
$
45
$
65
Net income attributable to noncontrolling interest (2)
1
−
−
1
1
Interest expense (income), net
(1
)
−
(2
)
(3
)
(1
)
Income tax provision
8
1
8
16
4
Depreciation and amortization
9
6
7
16
12
Other costs: Stock-based compensation
4
4
2
6
7
Other (3)
5
2
3
8
6
EBITDA excluding other costs
$
50
$
47
$
39
$
89
$
94
EBITDA % excluding other costs (4)
7.9
%
7.9
%
6.9
%
7.4
%
8.0
%
NET INCOME ATTRIBUTABLE TO
DNOW INC. TO NON-GAAP NET INCOME ATTRIBUTABLE TO DNOW INC.
EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED)
Three Months Ended Six Months Ended June 30, March 31, June 30,
2024
2023
2024
2024
2023
GAAP net income attributable to DNOW Inc. (1)
$
24
$
34
$
21
$
45
$
65
Other, net of tax (5) (6)
4
(7
)
2
6
(10
)
Net income attributable to DNOW Inc. excluding other costs (6)
$
28
$
27
$
23
$
51
$
55
DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS TO NON-GAAP DILUTED EARNINGS
PER SHARE ATTRIBUTABLE TO DNOW INC. STOCKHOLDERS EXCLUDING OTHER
COSTS RECONCILIATION (UNAUDITED)
Three Months Ended Six Months Ended June 30, March 31, June 30,
2024
2023
2024
2024
2023
GAAP diluted earnings per share attributable to DNOW Inc.
stockholders (1)
$
0.21
$
0.31
$
0.19
$
0.41
$
0.59
Other, net of tax (5) (6)
0.04
(0.06
)
0.02
0.05
(0.09
)
Diluted earnings per share attributable to DNOW Inc. stockholders
excluding other costs (6)
$
0.25
$
0.25
$
0.21
$
0.46
$
0.50
(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 attributable to DNOW Inc. excluding other costs and
(iii) diluted earnings per share attributable to DNOW Inc.
stockholders 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)
Net income attributable to noncontrolling
interest represents the income retained by the noncontrolling party
of a joint venture in our international segment which we
consolidate into our financials as we are the primary beneficiary
and controlling member.
(3)
Other includes certain income and expenses
and does not include stock-based compensation expense.
For the three and six months ended June
30, 2024, Other was primarily related to transaction-related
charges, of which approximately $1 million and $3 million,
respectively, were included in warehousing, selling and
administrative, and approximately $4 million and $5 million,
respectively, were included in cost of products.
Transaction-related charges include transaction costs, inventory
fair value step-up, retention bonus accruals and integration
expenses associated with acquisitions.
(4)
EBITDA % excluding other costs is defined
as EBITDA excluding other costs divided by Revenue.
(5)
Other, net of tax includes certain income
and expenses and does not include stock-based compensation
expense.
For the three and six months ended June
30, 2024, Other, net of tax, included approximately $4 million and
$6 million, respectively, related to transaction-related
charges.
(6)
Totals may not foot due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807073786/en/
Mark Johnson Senior Vice President and Chief Financial Officer
(281) 823-4754
DNOW (NYSE:DNOW)
過去 株価チャート
から 8 2024 まで 9 2024
DNOW (NYSE:DNOW)
過去 株価チャート
から 9 2023 まで 9 2024