Earnings Conference Call
1 (888) 660-6431 (within
1 (929) 203-2118 (outside of
Access Code: 7372055
Webcast: ir.dnow.com
Third Quarter 2024 Highlights
-
Revenue was
$606 million for the third quarter of 2024 -
Net income attributable to
DNOW Inc. was$13 million , or$0.12 per diluted share, for the third quarter of 2024 -
Non-GAAP net income attributable to
DNOW Inc. excluding other costs was$22 million , or$0.21 per diluted share, for the third quarter of 2024
-
EBITDA excluding other costs was
$42 million or 6.9% of revenue for the third quarter of 2024 -
Cash provided by operating activities was
$74 million for the third quarter of 2024 and$281 million for the trailing four quarters endingSeptember 30, 2024 -
Repurchased
$7 million of common stock in the third quarter of 2024 -
Cash and cash equivalents was
$261 million and long-term debt was zero atSeptember 30, 2024 with total liquidity of approximately$622 million
We generated an additional
We repurchased
Prior to the earnings conference call a presentation titled “DNOW Third Quarter 2024 Key Takeaways” will be available on the Company’s Investor Relations website.
About
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. CONSOLIDATED BALANCE SHEETS (In millions, except share data) |
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2024 |
|
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2023 |
|
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ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents |
$ |
261 |
|
$ |
299 |
|
|
Receivables, net |
|
405 |
|
|
384 |
|
|
Inventories, net |
|
364 |
|
|
366 |
|
|
Prepaid and other current assets |
|
28 |
|
|
19 |
|
|
Total current assets |
|
1,058 |
|
|
1,068 |
|
|
Property, plant and equipment, net |
|
138 |
|
|
131 |
|
|
Deferred income taxes |
|
98 |
|
|
118 |
|
|
|
|
192 |
|
|
139 |
|
|
Intangibles, net |
|
55 |
|
|
28 |
|
|
Other assets |
|
46 |
|
|
45 |
|
|
Total assets |
$ |
1,587 |
|
$ |
1,529 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable |
$ |
278 |
|
$ |
288 |
|
|
Accrued liabilities |
|
127 |
|
|
120 |
|
|
Other current liabilities |
|
12 |
|
|
10 |
|
|
Total current liabilities |
|
417 |
|
|
418 |
|
|
Long-term operating lease liabilities |
|
31 |
|
|
30 |
|
|
Other long-term liabilities |
|
21 |
|
|
18 |
|
|
Total liabilities |
|
469 |
|
|
466 |
|
|
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock - par value outstanding |
|
− |
|
|
− |
|
|
Common stock - par value shares issued and outstanding at |
|
1 |
|
|
1 |
|
|
Additional paid-in capital |
|
2,024 |
|
|
2,032 |
|
|
Accumulated deficit |
|
(770 |
) |
|
(828 |
) |
|
Accumulated other comprehensive loss |
|
(141 |
) |
|
(145 |
) |
|
|
|
1,114 |
|
|
1,060 |
|
|
Noncontrolling interest |
|
4 |
|
|
3 |
|
|
Total stockholders' equity |
|
1,118 |
|
|
1,063 |
|
|
Total liabilities and stockholders' equity |
$ |
1,587 |
|
$ |
1,529 |
|
DNOW INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In millions, except per share data) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
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|
|
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|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
Revenue |
$ |
606 |
|
$ |
588 |
$ |
633 |
$ |
1,802 |
$ |
1,766 |
|
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Operating expenses: | ||||||||||||||||
Cost of products |
|
471 |
|
|
454 |
|
495 |
|
1,400 |
|
1,361 |
|
||||
Warehousing, selling and administrative |
|
107 |
|
|
97 |
|
105 |
|
313 |
|
297 |
|
||||
Impairment and other charges |
|
5 |
|
|
− |
|
− |
|
5 |
|
− |
|
||||
Operating profit |
|
23 |
|
|
37 |
|
33 |
|
84 |
|
108 |
|
||||
Other income (expense) |
|
(1 |
) |
|
− |
|
− |
|
− |
|
(1 |
) |
||||
Income before income taxes |
|
22 |
|
|
37 |
|
33 |
|
84 |
|
107 |
|
||||
Income tax provision |
|
9 |
|
|
2 |
|
8 |
|
25 |
|
6 |
|
||||
Net income |
|
13 |
|
|
35 |
|
25 |
|
59 |
|
101 |
|
||||
Net income attributable to noncontrolling interest |
|
− |
|
|
− |
|
1 |
|
1 |
|
1 |
|
||||
Net income attributable to |
$ |
13 |
|
$ |
35 |
$ |
24 |
$ |
58 |
$ |
100 |
|
||||
Earnings per share attributable to |
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Basic |
$ |
0.12 |
|
$ |
0.32 |
$ |
0.21 |
$ |
0.53 |
$ |
0.91 |
|
||||
Diluted |
$ |
0.12 |
|
$ |
0.32 |
$ |
0.21 |
$ |
0.53 |
$ |
0.90 |
|
||||
Weighted-average common shares outstanding, basic |
|
106 |
|
|
107 |
|
107 |
|
107 |
|
108 |
|
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Weighted-average common shares outstanding, diluted |
|
107 |
|
|
108 |
|
108 |
|
107 |
|
109 |
|
DNOW INC. SUPPLEMENTAL INFORMATION |
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BUSINESS SEGMENTS (UNAUDITED) (In millions) |
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Three Months Ended | Nine Months Ended | |||||||||||||
|
|
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
|||||
Revenue: | ||||||||||||||
|
$ |
482 |
$ |
448 |
$ |
512 |
$ |
1,429 |
$ |
1,331 |
||||
|
|
65 |
|
68 |
|
56 |
|
187 |
|
217 |
||||
International |
|
59 |
|
72 |
|
65 |
|
186 |
|
218 |
||||
Total revenue |
$ |
606 |
$ |
588 |
$ |
633 |
$ |
1,802 |
$ |
1,766 |
DNOW INC. SUPPLEMENTAL INFORMATION (CONTINUED)
NET INCOME ATTRIBUTABLE TO DNOW INC. TO NON-GAAP EBITDA EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) (In millions) |
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Three Months Ended | Nine Months Ended | ||||||||||||||||||
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|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP net income attributable to |
$ |
13 |
|
$ |
35 |
|
$ |
24 |
|
$ |
58 |
|
$ |
100 |
|
||||
Net income attributable to noncontrolling interest (2) |
|
− |
|
|
− |
|
|
1 |
|
|
1 |
|
|
1 |
|
||||
Interest expense (income), net |
|
(1 |
) |
|
(2 |
) |
|
(1 |
) |
|
(4 |
) |
|
(3 |
) |
||||
Income tax provision |
|
9 |
|
|
2 |
|
|
8 |
|
|
25 |
|
|
6 |
|
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Depreciation and amortization |
|
8 |
|
|
7 |
|
|
9 |
|
|
24 |
|
|
19 |
|
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Other costs: | |||||||||||||||||||
Stock-based compensation |
|
3 |
|
|
4 |
|
|
4 |
|
|
9 |
|
|
11 |
|
||||
Other (3) |
|
10 |
|
|
− |
|
|
5 |
|
|
18 |
|
|
6 |
|
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EBITDA excluding other costs |
$ |
42 |
|
$ |
46 |
|
$ |
50 |
|
$ |
131 |
|
$ |
140 |
|
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EBITDA % excluding other costs (4) |
|
6.9 |
% |
|
7.8 |
% |
|
7.9 |
% |
|
7.3 |
% |
|
7.9 |
% |
NET INCOME ATTRIBUTABLE TO DNOW INC. TO NON-GAAP NET INCOME ATTRIBUTABLE TO DNOW INC. EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) (In millions) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
|
|
|
||||||||||||||
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
GAAP net income attributable to |
$ |
13 |
$ |
35 |
|
$ |
24 |
$ |
58 |
$ |
100 |
|
||||
Other, net of tax (5) (6) |
|
9 |
|
(7 |
) |
|
4 |
|
15 |
|
(17 |
) |
||||
Net income attributable to |
$ |
22 |
$ |
28 |
|
$ |
28 |
$ |
73 |
$ |
83 |
|
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) |
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Three Months Ended | Nine Months Ended | |||||||||||||||
|
|
|
||||||||||||||
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
GAAP diluted earnings per share attributable to |
$ |
0.12 |
$ |
0.32 |
$ |
0.21 |
$ |
0.53 |
$ |
0.90 |
|
|||||
Other, net of tax (5) (6) |
|
0.09 |
|
(0.07 |
) |
|
0.04 |
|
0.14 |
|
(0.15 |
) |
||||
Diluted earnings per share attributable to |
$ |
0.21 |
$ |
0.25 |
|
$ |
0.25 |
$ |
0.67 |
$ |
0.75 |
|
(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 |
(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 months ended
For the nine months ended |
(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 nine months ended |
(6) |
|
Totals may not foot due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107113685/en/
Senior Vice President and Chief Financial Officer
(281) 823-4754
Source: