DNOW Reports First Quarter 2024 Results
DNOW Inc. (NYSE: DNOW) reported their first quarter 2024 results, showcasing impressive financial performance. The company generated $81 million in cash from operating activities and $563 million in revenue. Net income attributable to DNOW Inc. was $21 million, or $0.19 per diluted share. EBITDA reached $39 million, and the company completed the acquisition of Whitco Supply for $185 million in cash, bolstering their capabilities in the U.S. midstream market. With a debt-free balance sheet, $188 million in cash, and total liquidity of approximately $564 million, DNOW's CEO is optimistic about the company's future growth prospects, upgrading their 2024 full-year revenue outlook to a mid-to-high single-digit percentage range.
Impressive cash provided by operating activities of $81 million and revenue of $563 million for the first quarter of 2024.
Net income attributable to DNOW Inc. was $21 million, or $0.19 per diluted share, showcasing profitability.
EBITDA excluding other costs reached $39 million, demonstrating solid financial performance.
Completed acquisition of Whitco Supply for $185 million in cash, enhancing capabilities in the U.S. midstream market.
Maintaining a debt-free balance sheet with $188 million in cash and total liquidity of approximately $564 million, positioning the company well for future growth.
- None.
Earnings Conference Call
May 10, 2024
8:00 a.m. CT
1 (888) 660-6431 (within
1 (929) 203-2118 (outside of
Access Code: 7372055
Webcast: ir.dnow.com
First Quarter 2024 Highlights
-
Cash provided by operating activities was
for the first quarter of 2024 and$81 million for the trailing four quarters ending March 31, 2024$275 million -
Revenue was
for the first quarter of 2024$563 million -
Net income attributable to DNOW Inc. was
, or$21 million per diluted share, for the first quarter of 2024$0.19 -
Non-GAAP net income attributable to DNOW Inc. excluding other costs was
, or$23 million per diluted share, for the first quarter of 2024$0.21
-
EBITDA excluding other costs was
or$39 million 6.9% of revenue for the first quarter of 2024 -
Completed acquisition of Whitco Supply LLC for
in cash, enhancing capabilities and position primarily in the$185 million U.S. midstream market -
Cash and cash equivalents was
and long-term debt was zero at March 31, 2024 with total liquidity of approximately$188 million $564 million
David Cherechinsky, President and CEO of DNOW, added, “I am incredibly pleased with the progress we made this quarter, generating strong free cash flow of
We welcomed Whitco Supply to the DNOW family, one of our largest acquisitions, and still ended the quarter debt-free with
Despite the slow start to the first quarter, evidenced by lower
With a solid balance sheet, an expanding diversified customer base, the best people in the business and a proactive approach to seizing value-enhancing acquisition opportunities, I am excited about our future.”
Prior to the earnings conference call a presentation titled “DNOW First 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
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
DNOW INC. CONSOLIDATED BALANCE SHEETS (In millions, except share data) |
|||||||
|
|||||||
March 31, | December 31, | ||||||
2024 |
2023 |
||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ |
188 |
|
$ |
299 |
|
|
Receivables, net |
|
410 |
|
|
384 |
|
|
Inventories, net |
|
428 |
|
|
366 |
|
|
Prepaid and other current assets |
|
19 |
|
|
19 |
|
|
Total current assets |
|
1,045 |
|
|
1,068 |
|
|
Property, plant and equipment, net |
|
137 |
|
|
131 |
|
|
Deferred income taxes |
|
112 |
|
|
118 |
|
|
Goodwill |
|
192 |
|
|
139 |
|
|
Intangibles, net |
|
59 |
|
|
28 |
|
|
Other assets |
|
49 |
|
|
45 |
|
|
Total assets | $ |
1,594 |
|
$ |
1,529 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ |
339 |
|
$ |
288 |
|
|
Accrued liabilities |
|
112 |
|
|
120 |
|
|
Other current liabilities |
|
11 |
|
|
10 |
|
|
Total current liabilities |
|
462 |
|
|
418 |
|
|
Long-term operating lease liabilities |
|
33 |
|
|
30 |
|
|
Other long-term liabilities |
|
20 |
|
|
18 |
|
|
Total liabilities |
|
515 |
|
|
466 |
|
|
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock - par value outstanding |
|
− |
|
|
− |
|
|
Common stock - par value shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively |
|
1 |
|
|
1 |
|
|
Additional paid-in capital |
|
2,031 |
|
|
2,032 |
|
|
Accumulated deficit |
|
(807 |
) |
|
(828 |
) |
|
Accumulated other comprehensive loss |
|
(149 |
) |
|
(145 |
) |
|
DNOW Inc. stockholders' equity |
|
1,076 |
|
|
1,060 |
|
|
Noncontrolling interest |
|
3 |
|
|
3 |
|
|
Total stockholders' equity |
|
1,079 |
|
|
1,063 |
|
|
Total liabilities and stockholders' equity | $ |
1,594 |
|
$ |
1,529 |
|
|
DNOW INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In millions, except per share data) |
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|
||||||||||
Three Months Ended | ||||||||||
March 31, | December 31, | |||||||||
2024 |
2023 |
2023 |
||||||||
Revenue | $ |
563 |
$ |
584 |
$ |
555 |
|
|||
Operating expenses: | ||||||||||
Cost of products |
|
434 |
|
447 |
|
425 |
|
|||
Warehousing, selling and administrative |
|
101 |
|
102 |
|
98 |
|
|||
Operating profit |
|
28 |
|
35 |
|
32 |
|
|||
Other income (expense) |
|
1 |
|
− |
|
(1 |
) |
|||
Income before income taxes |
|
29 |
|
35 |
|
31 |
|
|||
Income tax provision (benefit) |
|
8 |
|
3 |
|
(116 |
) |
|||
Net income |
|
21 |
|
32 |
|
147 |
|
|||
Net income attributable to noncontrolling interest |
|
− |
|
1 |
|
− |
|
|||
Net income attributable to DNOW Inc. | $ |
21 |
$ |
31 |
$ |
147 |
|
|||
Earnings per share attributable to DNOW Inc. stockholders: | ||||||||||
Basic | $ |
0.20 |
$ |
0.28 |
$ |
1.36 |
|
|||
Diluted | $ |
0.19 |
$ |
0.28 |
$ |
1.35 |
|
|||
Weighted-average common shares outstanding, basic |
|
106 |
|
110 |
|
106 |
|
|||
Weighted-average common shares outstanding, diluted |
|
107 |
|
111 |
|
107 |
|
|||
DNOW INC. SUPPLEMENTAL INFORMATION |
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BUSINESS SEGMENTS (UNAUDITED) (In millions) |
|||||||||
|
|||||||||
Three Months Ended | |||||||||
March 31, | December 31, | ||||||||
2024 |
|
2023 |
|
2023 |
|||||
Revenue: | |||||||||
$ |
435 |
$ |
427 |
$ |
418 |
||||
|
66 |
|
83 |
|
65 |
||||
International |
|
62 |
|
74 |
|
72 |
|||
Total revenue | $ |
563 |
$ |
584 |
$ |
555 |
|||
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 | ||||||||||||
March 31, | December 31, | |||||||||||
2024 |
|
2023 |
|
2023 |
||||||||
GAAP net income attributable to DNOW Inc. (1) | $ |
21 |
|
$ |
31 |
|
$ |
147 |
|
|||
Net income attributable to noncontrolling interest (2) |
|
− |
|
|
1 |
|
|
− |
|
|||
Interest expense (income), net |
|
(2 |
) |
|
(1 |
) |
|
(1 |
) |
|||
Income tax provision (benefit) |
|
8 |
|
|
3 |
|
|
(116 |
) |
|||
Depreciation and amortization |
|
7 |
|
|
6 |
|
|
7 |
|
|||
Other costs: | ||||||||||||
Stock-based compensation |
|
2 |
|
|
3 |
|
|
4 |
|
|||
Other (3) |
|
3 |
|
|
4 |
|
|
3 |
|
|||
EBITDA excluding other costs | $ |
39 |
|
$ |
47 |
|
$ |
44 |
|
|||
EBITDA % excluding other costs (4) |
|
6.9 |
% |
|
8.0 |
% |
|
7.9 |
% |
|||
NET INCOME ATTRIBUTABLE TO DNOW INC. TO NON-GAAP NET INCOME ATTRIBUTABLE TO DNOW INC. EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED) (In millions) |
|||||||||||
|
|||||||||||
Three Months Ended | |||||||||||
March 31, | December 31, | ||||||||||
2024 |
2023 |
2023 |
|||||||||
GAAP net income attributable to DNOW Inc. (1) | $ |
21 |
$ |
31 |
|
$ |
147 |
|
|||
Other, net of tax (5) (6) |
|
2 |
|
(3 |
) |
|
(123 |
) |
|||
Net income attributable to DNOW Inc. excluding other costs (6) | $ |
23 |
$ |
28 |
|
$ |
24 |
|
|||
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 | |||||||||||
March 31, | December 31, | ||||||||||
2024 |
2023 |
2023 |
|||||||||
GAAP diluted earnings per share attributable to DNOW Inc. stockholders (1) | $ |
0.19 |
$ |
0.28 |
|
$ |
1.35 |
|
|||
Other, net of tax (5) (6) |
|
0.02 |
|
(0.03 |
) |
|
(1.13 |
) |
|||
Diluted earnings per share attributable to DNOW Inc. stockholders excluding other costs (6) | $ |
0.21 |
$ |
0.25 |
|
$ |
0.22 |
|
|||
(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. |
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(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. |
|
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(3) |
Other includes certain income and expenses and does not include stock-based compensation expense.
For the three months ended March 31, 2024, Other of approximately |
|
|
|
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(4) |
EBITDA % excluding other costs is defined as EBITDA excluding other costs divided by Revenue. |
|
|
|
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(5) |
Other, net of tax includes certain income and expenses and does not include stock-based compensation expense.
For the three months ended March 31, 2024, Other, net of tax, of approximately |
|
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|
|
(6) |
Totals may not foot due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240510156146/en/
Mark Johnson
Senior Vice President and Chief Financial Officer
(281) 823-4754
Source: DNOW Inc.