UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 30, 2014
NATIONAL OILWELL VARCO, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 1-12317 | 76-0475815 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 7909 Parkwood Circle Dr. Houston, Texas |
77036 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: 713-346-7500
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On October 30, 2014, National Oilwell Varco, Inc. issued a press release announcing earnings for the quarter ended September 30, 2014 and conference call in connection therewith. A copy of the release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
The information contained in this Current Report shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibit is provided as part of the information furnished under Item 2.02 of this Current Report on Form 8-K:
| 99.1 | National Oilwell Varco, Inc. press release dated October 30, 2014 announcing the earnings results for the quarter ended September 30, 2014. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 30, 2014
| NATIONAL OILWELL VARCO, INC. |
| /s/ Brigitte Hunt |
| Brigitte Hunt Vice President |
Index to Exhibits
| 99.1 | National Oilwell Varco, Inc. press release dated October 30, 2014 announcing the earnings results for the quarter ended September 30, 2014. | |
- 4 -
Exhibit 99.1
| NEWS |
Contact: Jeremy Thigpen | |
| (713) 346-7301 |
FOR IMMEDIATE RELEASE
NATIONAL OILWELL VARCO ANNOUNCES
THIRD QUARTER 2014 EARNINGS
HOUSTON, TX, October 30, 2014 — National Oilwell Varco, Inc. (NYSE: NOV) today reported that for its third quarter ended September 30, 2014, it earned net income of $699 million, or $1.62 per fully diluted share, compared to second quarter ended June 30, 2014 net income of $619 million, or $1.44 per fully diluted share.
The third quarter 2014 fully diluted earnings per share includes ($0.14) per share for transaction charges and the amortization of intangible assets. Excluding these, operating (non-GAAP) earnings per fully diluted share for the third quarter of 2014 were $1.76 per share, compared to $1.61 per share in the second quarter of 2014, an increase of nine percent.
Revenues for the third quarter of 2014 were $5.59 billion, an increase of six percent from the second quarter of 2014 and an increase of 17 percent from the third quarter of 2013. Operating profit for the quarter, excluding non-recurring items, was $989 million, or 17.7 percent of sales. EBITDA for the quarter, excluding non-recurring items, was $1.21 billion, or 21.6 percent of sales, up six percent from the prior quarter.
Ending backlog for the third quarter of 2014 was $14.34 billion for the Company’s Rig Systems segment and $2.09 billion for the Company’s Completion & Production Solutions segment.
Clay Williams, Chairman, President and CEO of National Oilwell Varco, stated, “Thanks to outstanding execution by our employees, the Company posted strong results for its third quarter of 2014. We set new records for operating profit, EBITDA and earnings per share during the period on solid revenue gains from continuing operations. Looking forward, we are closely monitoring the potential impact of lower oil prices on our markets; nevertheless, our strong backlog, our growing aftermarket business supporting NOV equipment, our diverse product and service offering, our terrific team of employees and our strong balance sheet, all give us confidence in the bright long-term prospects for the Company. This confidence led us to announce, in the third quarter, an authorization to repurchase $3 billion in stock.”
Rig Systems
Third quarter revenues for the Rig Systems segment were $2.66 billion, an increase of 12 percent from the second quarter of 2014 and an increase of 29.0 percent from the third quarter of 2013. Operating profit for this segment was $533 million, or 20.0 percent of sales. EBITDA for this segment was $554 million, or 20.8 percent of sales. Revenue out of backlog for the segment was at $2.39 billion.
Backlog for capital equipment orders for the Company’s Rig Systems segment at September 30, 2014 was $14.34 billion, down 6.8 percent from the second quarter of 2014, and up 2.0 percent from the end of the third quarter of 2013. New orders during the quarter were $1.34 billion.
Rig Aftermarket
Third quarter revenues for the Rig Aftermarket segment were $837 million, an increase of seven percent from the second quarter of 2014 and an increase of 18.0 percent from the third quarter of 2013. Operating profit for this segment was $229 million, or 27.4 percent of sales. EBITDA for this segment was $236 million, or 28.2 percent of sales.
Wellbore Technologies
Revenues for the third quarter of the Wellbore Technologies segment were $1.47 billion, an increase of two percent from the second quarter of 2014 and an increase of 14.0 percent from the third quarter of 2013. Operating profit for this segment was $278 million, or 18.9 percent of sales. EBITDA for this segment was $390 million, or 26.5 percent of sales.
Completion & Production Solutions
The Completion & Production Solutions segment generated revenues of $1.19 billion, an increase of six percent from the second quarter of 2014 and an increase of nine percent from the third quarter of 2013. Operating profit for this segment was $184 million, or 15.4 percent of sales. EBITDA for this segment was $242 million, or 20.3 percent of sales.
Backlog for capital equipment orders for the Company’s Completion & Production Solutions segment at September 30, 2014 was $2.09 billion, down 2.7 percent from the second quarter of 2014, and up 39.4 percent from the end of the third quarter of 2013. New orders during the quarter were $609 million.
The Company has scheduled a conference call for October 30, 2014, 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 1-800-447-0521 within North America or 1-847-413-3238 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.
- more -
NATIONAL OILWELL VARCO, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
| September 30, | December 31, | |||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 4,091 | $ | 3,436 | ||||
| Receivables, net |
4,482 | 4,896 | ||||||
| Inventories, net |
5,464 | 5,603 | ||||||
| Costs in excess of billings |
1,615 | 1,539 | ||||||
| Deferred income taxes |
399 | 373 | ||||||
| Prepaid and other current assets |
619 | 576 | ||||||
|
|
|
|
|
|||||
| Total current assets |
16,670 | 16,423 | ||||||
| Property, plant and equipment, net |
3,377 | 3,408 | ||||||
| Deferred income taxes |
433 | 372 | ||||||
| Goodwill |
8,614 | 9,049 | ||||||
| Intangibles, net |
4,695 | 5,055 | ||||||
| Investment in unconsolidated affiliates |
356 | 390 | ||||||
| Other assets |
125 | 115 | ||||||
|
|
|
|
|
|||||
| $ | 34,270 | $ | 34,812 | |||||
|
|
|
|
|
|||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 1,259 | $ | 1,275 | ||||
| Accrued liabilities |
3,310 | 2,763 | ||||||
| Billings in excess of costs |
1,809 | 1,771 | ||||||
| Current portion of long-term debt and short-term borrowings |
151 | 1 | ||||||
| Accrued income taxes |
267 | 556 | ||||||
| Deferred income taxes |
405 | 312 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
7,201 | 6,678 | ||||||
| Long-term debt |
2,995 | 3,149 | ||||||
| Deferred income taxes |
2,088 | 2,292 | ||||||
| Other liabilities |
367 | 363 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
12,651 | 12,482 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Common stock – par value $.01; 1 billion shares authorized; 430,569,502 and 428,433,703 shares issued and outstanding at September 30, 2014 and December 31, 2013 |
4 | 4 | ||||||
| Additional paid-in capital |
9,099 | 8,907 | ||||||
| Accumulated other comprehensive loss |
(362 | ) | (4 | ) | ||||
| Retained earnings |
12,782 | 13,323 | ||||||
|
|
|
|
|
|||||
| Total Company stockholders’ equity |
21,523 | 22,230 | ||||||
| Noncontrolling interests |
96 | 100 | ||||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
21,619 | 22,330 | ||||||
|
|
|
|
|
|||||
| $ | 34,270 | $ | 34,812 | |||||
|
|
|
|
|
|||||
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, | ||||||||||||||||||
| 2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||
| Revenue: |
||||||||||||||||||||
| Rig Systems |
$ | 2,659 | $ | 2,061 | $ | 2,372 | $ | 7,287 | $ | 6,053 | ||||||||||
| Rig Aftermarket |
837 | 712 | 785 | 2,372 | 1,933 | |||||||||||||||
| Wellbore Technologies |
1,469 | 1,293 | 1,446 | 4,193 | 3,738 | |||||||||||||||
| Completion & Production Solutions |
1,191 | 1,095 | 1,127 | 3,320 | 3,154 | |||||||||||||||
| Eliminations |
(569 | ) | (400 | ) | (475 | ) | (1,441 | ) | (1,061 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenue |
5,587 | 4,761 | 5,255 | 15,731 | 13,817 | |||||||||||||||
| Gross profit |
1,524 | 1,253 | 1,456 | 4,270 | 3,669 | |||||||||||||||
| Gross profit % |
27.3 | % | 26.3 | % | 27.7 | % | 27.1 | % | 26.6 | % | ||||||||||
| Selling, general, and administrative |
535 | 462 | 511 | 1,519 | 1,351 | |||||||||||||||
| Other items |
1 | (92 | ) | 32 | 51 | 37 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating profit |
988 | 883 | 913 | 2,700 | 2,281 | |||||||||||||||
| Interest and financial costs |
(26 | ) | (26 | ) | (27 | ) | (79 | ) | (84 | ) | ||||||||||
| Interest income |
4 | 2 | 5 | 13 | 8 | |||||||||||||||
| Equity income in unconsolidated affiliates |
9 | 13 | 23 | 42 | 47 | |||||||||||||||
| Other income (expense), net |
9 | (11 | ) | (21 | ) | (12 | ) | (15 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income before income taxes |
984 | 861 | 893 | 2,664 | 2,237 | |||||||||||||||
| Provision for income taxes |
283 | 263 | 284 | 806 | 686 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from continuing operations |
701 | 598 | 609 | 1,858 | 1,551 | |||||||||||||||
| Income from discontinued operations |
— | 38 | 11 | 52 | 116 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income |
701 | 636 | 620 | 1,910 | 1,667 | |||||||||||||||
| Net income (loss) attributable to noncontrolling interests |
2 | — | 1 | 3 | (2 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income attributable to Company |
$ | 699 | $ | 636 | $ | 619 | $ | 1,907 | $ | 1,669 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Per share data: |
||||||||||||||||||||
| Basic: |
||||||||||||||||||||
| Income from continuing operations |
$ | 1.63 | $ | 1.40 | $ | 1.42 | $ | 4.34 | $ | 3.64 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from discontinued operations |
$ | — | $ | 0.09 | $ | 0.03 | $ | 0.12 | $ | 0.28 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income attributable to Company |
$ | 1.63 | $ | 1.49 | $ | 1.45 | $ | 4.46 | $ | 3.92 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Diluted: |
||||||||||||||||||||
| Income from continuing operations |
$ | 1.62 | $ | 1.40 | $ | 1.42 | $ | 4.31 | $ | 3.62 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from discontinued operations |
$ | — | $ | 0.09 | $ | 0.02 | $ | 0.12 | $ | 0.28 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income attributable to Company |
$ | 1.62 | $ | 1.49 | $ | 1.44 | $ | 4.43 | $ | 3.90 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Weighted average shares outstanding: |
||||||||||||||||||||
| Basic |
429 | 426 | 428 | 428 | 426 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Diluted |
431 | 428 | 430 | 430 | 428 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
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, | ||||||||||||||||||
| 2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||
| Revenue: |
||||||||||||||||||||
| Rig Systems |
$ | 2,659 | $ | 2,061 | $ | 2,372 | $ | 7,287 | $ | 6,053 | ||||||||||
| Rig Aftermarket |
837 | 712 | 785 | 2,372 | 1,933 | |||||||||||||||
| Wellbore Technologies |
1,469 | 1,293 | 1,446 | 4,193 | 3,738 | |||||||||||||||
| Completion & Production Solutions |
1,191 | 1,095 | 1,127 | 3,320 | 3,154 | |||||||||||||||
| Eliminations |
(569 | ) | (400 | ) | (475 | ) | (1,441 | ) | (1,061 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenue |
$ | 5,587 | $ | 4,761 | $ | 5,255 | $ | 15,731 | $ | 13,817 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating profit: |
||||||||||||||||||||
| Rig Systems |
$ | 533 | $ | 392 | $ | 501 | $ | 1,485 | $ | 1,157 | ||||||||||
| Rig Aftermarket |
229 | 202 | 217 | 637 | 533 | |||||||||||||||
| Wellbore Technologies |
278 | 206 | 269 | 771 | 609 | |||||||||||||||
| Completion & Production Solutions |
184 | 176 | 158 | 485 | 511 | |||||||||||||||
| Unallocated expenses and eliminations |
(235 | ) | (185 | ) | (200 | ) | (627 | ) | (492 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating profit (before other items) |
$ | 989 | $ | 791 | $ | 945 | $ | 2,751 | $ | 2,318 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating profit %: |
||||||||||||||||||||
| Rig Systems |
20.0 | % | 19.0 | % | 21.1 | % | 20.4 | % | 19.1 | % | ||||||||||
| Rig Aftermarket |
27.4 | % | 28.4 | % | 27.6 | % | 26.9 | % | 27.6 | % | ||||||||||
| Wellbore Technologies |
18.9 | % | 15.9 | % | 18.6 | % | 18.4 | % | 16.3 | % | ||||||||||
| Completion & Production Solutions |
15.4 | % | 16.1 | % | 14.0 | % | 14.6 | % | 16.2 | % | ||||||||||
| Total operating profit % (before other items) |
17.7 | % | 16.6 | % | 18.0 | % | 17.5 | % | 16.8 | % | ||||||||||
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, | ||||||||||||||||||
| 2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||
| Operating profit excluding other items (Note 1): |
||||||||||||||||||||
| Rig Systems |
$ | 533 | $ | 392 | $ | 501 | $ | 1,485 | $ | 1,157 | ||||||||||
| Rig Aftermarket |
229 | 202 | 217 | 637 | 533 | |||||||||||||||
| Wellbore Technologies |
278 | 206 | 269 | 771 | 609 | |||||||||||||||
| Completion & Production Solutions |
184 | 176 | 158 | 485 | 511 | |||||||||||||||
| Unallocated expenses and eliminations |
(235 | ) | (185 | ) | (200 | ) | (627 | ) | (492 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating profit excluding other items |
$ | 989 | $ | 791 | $ | 945 | $ | 2,751 | $ | 2,318 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Depreciation & amortization: |
||||||||||||||||||||
| Rig Systems |
$ | 21 | $ | 19 | $ | 22 | $ | 65 | $ | 57 | ||||||||||
| Rig Aftermarket |
7 | 6 | 7 | 20 | 18 | |||||||||||||||
| Wellbore Technologies |
112 | 111 | 108 | 328 | 313 | |||||||||||||||
| Completion & Production Solutions |
58 | 51 | 53 | 166 | 155 | |||||||||||||||
| Unallocated expenses and eliminations |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total depreciation & amortization |
$ | 198 | $ | 187 | $ | 190 | $ | 579 | $ | 543 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating profit as adjusted before depreciation & amortization (Note 1): |
||||||||||||||||||||
| Rig Systems |
$ | 554 | $ | 411 | $ | 523 | $ | 1,550 | $ | 1,214 | ||||||||||
| Rig Aftermarket |
236 | 208 | 224 | 657 | 551 | |||||||||||||||
| Wellbore Technologies |
390 | 317 | 377 | 1,099 | 922 | |||||||||||||||
| Completion & Production Solutions |
242 | 227 | 211 | 651 | 666 | |||||||||||||||
| Unallocated expenses and eliminations |
(235 | ) | (185 | ) | (200 | ) | (627 | ) | (492 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating profit as adjusted before depreciation & amortization |
$ | 1,187 | $ | 978 | $ | 1,135 | $ | 3,330 | $ | 2,861 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating profit % as adjusted before depreciation & amortization (Note 1): |
||||||||||||||||||||
| Rig Systems |
20.8 | % | 19.9 | % | 22.0 | % | 21.3 | % | 20.1 | % | ||||||||||
| Rig Aftermarket |
28.2 | % | 29.2 | % | 28.5 | % | 27.7 | % | 28.5 | % | ||||||||||
| Wellbore Technologies |
26.5 | % | 24.5 | % | 26.1 | % | 26.2 | % | 24.7 | % | ||||||||||
| Completion & Production Solutions |
20.3 | % | 20.7 | % | 18.7 | % | 19.6 | % | 21.1 | % | ||||||||||
| Total operating profit % as adjusted before depreciation & amortization |
21.2 | % | 20.5 | % | 21.6 | % | 21.2 | % | 20.7 | % | ||||||||||
| Total operating profit as adjusted before depreciation & amortization: |
$ | 1,187 | $ | 978 | $ | 1,135 | $ | 3,330 | $ | 2,861 | ||||||||||
| Other items |
(1 | ) | 92 | (32 | ) | (51 | ) | (37 | ) | |||||||||||
| Interest income |
4 | 2 | 5 | 13 | 8 | |||||||||||||||
| Equity income in unconsolidated affiliates |
9 | 13 | 23 | 42 | 47 | |||||||||||||||
| Other income (expense), net |
9 | (11 | ) | (21 | ) | (12 | ) | (15 | ) | |||||||||||
| Net income (loss) attributable to noncontrolling interest |
(2 | ) | — | (1 | ) | (3 | ) | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| EBITDA (Note 1) |
$ | 1,206 | $ | 1,074 | $ | 1,109 | $ | 3,319 | $ | 2,866 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Reconciliation of EBITDA (Note 1): |
||||||||||||||||||||
| GAAP net income attributable to Company |
$ | 699 | $ | 636 | $ | 619 | $ | 1,907 | $ | 1,669 | ||||||||||
| Income from discontinued operations |
— | (38 | ) | (11 | ) | (52 | ) | (116 | ) | |||||||||||
| Provision for income taxes |
283 | 263 | 284 | 806 | 686 | |||||||||||||||
| Interest expense |
26 | 26 | 27 | 79 | 84 | |||||||||||||||
| Depreciation and amortization |
198 | 187 | 190 | 579 | 543 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| EBITDA |
1,206 | 1,074 | 1,109 | 3,319 | 2,866 | |||||||||||||||
| Other items |
1 | (92 | ) | 32 | 51 | 37 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| EBITDA excluding other items (Note 1) |
$ | 1,207 | $ | 982 | $ | 1,141 | $ | 3,370 | $ | 2,903 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
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, | ||||||||||||||||||
| 2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||
| Net income attributable to Company |
$ | 1.62 | $ | 1.49 | $ | 1.44 | $ | 4.43 | $ | 3.90 | ||||||||||
| Income from discontinued operations |
— | (0.09 | ) | (0.02 | ) | (0.12 | ) | (0.28 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income from continuing operations |
1.62 | 1.40 | 1.42 | 4.31 | 3.62 | |||||||||||||||
| Other items |
— | (0.16 | ) | 0.05 | 0.07 | 0.05 | ||||||||||||||
| Amortization of intangible assets |
0.14 | 0.14 | 0.14 | 0.43 | 0.42 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating (non-GAAP) |
$ | 1.76 | $ | 1.38 | $ | 1.61 | $ | 4.81 | $ | 4.09 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Note 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 primary non-GAAP financial measures we focus on 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 and (vii) Operating (non-GAAP) per fully diluted share. Each of these financial measures excludes the impact of certain other 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.
| CONTACT: | National Oilwell Varco, Inc. | |
| Jeremy Thigpen, (713) 346-7301 | ||
| Jeremy.Thigpen@nov.com |