National Oilwell Varco Announces Third Quarter 2013 Results
The Company’s revenues for the third quarter of 2013 were
Backlog for capital equipment orders for the Company’s Rig Technology
segment was at a record level of
We are excited about our recently announced plans to spin-off the Company’s distribution business from the remainder of the Company, creating two stand-alone, publicly traded corporations. We believe that the contemplated spin-off is very consistent with NOV’s strategy and commitment to continue to grow the Company and create significant shareholder value. As separate companies, the distribution business and the remainder of NOV will each be better positioned and have the enhanced operational flexibility to focus on their specific products, services and customers.”
Rig Technology
Third quarter revenues for the Rig Technology segment were
Petroleum Services & Supplies
Revenues for the third quarter of 2013 for the Petroleum Services &
Supplies segment were
Distribution & Transmission
The Distribution & Transmission segment generated third quarter revenues
of
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
NATIONAL OILWELL VARCO, INC. CONSOLIDATED BALANCE SHEETS (In millions, except share data) |
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September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,741 | $ | 3,319 | ||||
Receivables, net | 4,801 | 4,320 | ||||||
Inventories, net | 6,078 | 5,891 | ||||||
Costs in excess of billings | 1,640 | 1,225 | ||||||
Deferred income taxes | 370 | 349 | ||||||
Prepaid and other current assets | 625 | 574 | ||||||
Total current assets | 16,255 | 15,678 | ||||||
Property, plant and equipment, net | 3,333 | 2,945 | ||||||
Deferred income taxes | 372 | 413 | ||||||
Goodwill | 9,036 | 7,172 | ||||||
Intangibles, net | 5,180 | 4,743 | ||||||
Investment in unconsolidated affiliates | 373 | 393 | ||||||
Other assets | 124 | 140 | ||||||
$ | 34,673 | $ | 31,484 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,312 | $ | 1,200 | ||||
Accrued liabilities | 2,857 | 2,571 | ||||||
Billings in excess of costs | 1,553 | 1,189 | ||||||
Current portion of long-term debt and short-term borrowings | - | 1 | ||||||
Accrued income taxes | 260 | 355 | ||||||
Deferred income taxes | 335 | 333 | ||||||
Total current liabilities | 6,317 | 5,649 | ||||||
Long-term debt | 3,749 | 3,148 | ||||||
Deferred income taxes | 2,443 | 1,997 | ||||||
Other liabilities | 439 | 334 | ||||||
Total liabilities | 12,948 | 11,128 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock – par value $.01; 1 billion shares authorized; 427,719,063 and 426,928,322 | ||||||||
shares issued and outstanding at September 30, 2013 and December 31, 2012 | 4 | 4 | ||||||
Additional paid-in capital | 8,846 | 8,743 | ||||||
Accumulated other comprehensive income | 1 | 107 | ||||||
Retained earnings | 12,776 | 11,385 | ||||||
Total Company stockholders’ equity | 21,627 | 20,239 | ||||||
Noncontrolling interests | 98 | 117 | ||||||
Total stockholders’ equity | 21,725 | 20,356 | ||||||
$ | 34,673 | $ | 31,484 |
NATIONAL OILWELL VARCO, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share data) |
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Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | June 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
Rig Technology | $ | 2,843 | $ | 2,547 | $ | 2,833 | $ | 8,304 | $ | 7,211 | |||||||||||||||
Petroleum Services & Supplies | 1,809 | 1,717 | 1,749 | 5,259 | 5,197 | ||||||||||||||||||||
Distribution & Transmission | 1,342 | 1,315 | 1,295 | 3,864 | 2,659 | ||||||||||||||||||||
Eliminations | (307 | ) | (260 | ) | (276 | ) | (832 | ) | (711 | ) | |||||||||||||||
Total revenue | 5,687 | 5,319 | 5,601 | 16,595 | 14,356 | ||||||||||||||||||||
Gross profit | 1,355 | 1,411 | 1,320 | 3,962 | 4,003 | ||||||||||||||||||||
Gross profit % | 23.8 | % | 26.5 | % | 23.6 | % | 23.9 | % | 27.9 | % | |||||||||||||||
Selling, general, and administrative | 502 | 465 | 494 | 1,467 | 1,269 | ||||||||||||||||||||
Other costs | (92 | ) | 57 | 57 | 38 | 92 | |||||||||||||||||||
Operating profit | 945 | 889 | 769 | 2,457 | 2,642 | ||||||||||||||||||||
Interest and financial costs | (26 | ) | (10 | ) | (30 | ) | (84 | ) | (27 | ) | |||||||||||||||
Interest income | 2 | 2 | 3 | 8 | 8 | ||||||||||||||||||||
Equity income in unconsolidated affiliates | 13 | 7 | 15 | 47 | 43 | ||||||||||||||||||||
Other income (expense), net | (15 | ) | (14 | ) | 13 | (15 | ) | (32 | ) | ||||||||||||||||
Income before income taxes | 919 | 874 | 770 | 2,413 | 2,634 | ||||||||||||||||||||
Provision for income taxes | 283 | 265 | 239 | 746 | 819 | ||||||||||||||||||||
Net income | 636 | 609 | 531 | 1,667 | 1,815 | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | - | (3 | ) | - | (2 | ) | (8 | ) | |||||||||||||||||
Net income attributable to Company | $ | 636 | $ | 612 | $ | 531 | $ | 1,669 | $ | 1,823 | |||||||||||||||
Net income attributable to Company per share: | |||||||||||||||||||||||||
Basic | $ | 1.49 | $ | 1.44 | $ | 1.25 | $ | 3.92 | $ | 4.29 | |||||||||||||||
Diluted | $ | 1.49 | $ | 1.43 | $ | 1.24 | $ | 3.90 | $ | 4.28 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||
Basic | 426 | 425 | 426 | 426 | 425 | ||||||||||||||||||||
Diluted | 428 | 427 | 428 | 428 | 426 |
NATIONAL OILWELL VARCO, INC. OPERATING PROFIT – AS ADJUSTED SUPPLEMENTAL SCHEDULE (Unaudited) (In millions) |
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Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | June 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
Rig Technology | $ | 2,843 | $ | 2,547 | $ | 2,833 | $ | 8,304 | $ | 7,211 | |||||||||||||||
Petroleum Services & Supplies | 1,809 | 1,717 | 1,749 | 5,259 | 5,197 | ||||||||||||||||||||
Distribution & Transmission | 1,342 | 1,315 | 1,295 | 3,864 | 2,659 | ||||||||||||||||||||
Eliminations | (307 | ) | (260 | ) | (276 | ) | (832 | ) | (711 | ) | |||||||||||||||
Total revenue | $ | 5,687 | $ | 5,319 | $ | 5,601 | $ | 16,595 | $ | 14,356 | |||||||||||||||
Operating profit: | |||||||||||||||||||||||||
Rig Technology | $ | 606 | $ | 610 | $ | 587 | $ | 1,750 | $ | 1,732 | |||||||||||||||
Petroleum Services & Supplies | 324 | 383 | 304 | 939 | 1,164 | ||||||||||||||||||||
Distribution & Transmission | 78 | 78 | 71 | 214 | 175 | ||||||||||||||||||||
Unallocated expenses and eliminations | (155 | ) | (125 | ) | (136 | ) | (408 | ) | (337 | ) | |||||||||||||||
Total operating profit (before other costs) |
$ | 853 | $ | 946 | $ | 826 | $ | 2,495 | $ | 2,734 | |||||||||||||||
Operating profit %: | |||||||||||||||||||||||||
Rig Technology | 21.3 | % | 23.9 | % | 20.7 | % | 21.1 | % | 24.0 | % | |||||||||||||||
Petroleum Services & Supplies | 17.9 | % | 22.3 | % | 17.4 | % | 17.9 | % | 22.4 | % | |||||||||||||||
Distribution & Transmission | 5.8 | % | 5.9 | % | 5.5 | % | 5.5 | % | 6.6 | % | |||||||||||||||
Other unallocated | - | - | - | - | - | ||||||||||||||||||||
Total operating profit % (before other costs) | 15.0 | % | 17.8 | % | 14.7 | % | 15.0 | % | 19.0 | % |
NATIONAL OILWELL VARCO, INC. AS ADJUSTED EBITDA RECONCILIATION EXCLUDING OTHER COSTS (Unaudited) (In millions) |
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Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||||
Reconciliation of EBITDA excluding other costs (Note 1): | ||||||||||||||||||||||
GAAP net income attributable to Company | $ | 636 | $ | 612 | $ | 531 | $ | 1,669 | $ | 1,823 | ||||||||||||
Provision for income taxes | 283 | 265 | 239 | 746 | 819 | |||||||||||||||||
Interest expense | 26 | 10 | 30 | 84 | 27 | |||||||||||||||||
Depreciation and amortization | 191 | 157 | 190 | 555 | 462 | |||||||||||||||||
EBITDA | 1,136 | 1,044 | 990 | 3,054 | 3,131 | |||||||||||||||||
Other costs: | ||||||||||||||||||||||
Transaction costs | 10 | 57 | 57 | 132 | 92 | |||||||||||||||||
Litigation gain | (102 | ) | - | - | (102 | ) | - | |||||||||||||||
Devaluation costs | - | - | - | 8 | - | |||||||||||||||||
EBITDA excluding other costs (Note 1) | $ | 1,044 | $ | 1,101 | $ | 1,047 | $ | 3,092 | $ | 3,223 | ||||||||||||
Note 1: EBITDA means earnings before taxes, interest, depreciation, amortization, and other costs, and is a non-GAAP measurement. Management uses EBITDA because it believes it provides useful supplemental information regarding the Company’s on-going economic performance and, therefore, uses this financial measure internally to evaluate and manage the Company’s operations. The Company has 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.
Source:
National Oilwell Varco, Inc.
Jeremy Thigpen, (713) 346-7301
Jeremy.Thigpen@nov.com