DNOW Reports Third Quarter 2024 Results
DNOW reported Q3 2024 financial results with revenue of $606 million and net income of $13 million ($0.12 per diluted share). Non-GAAP net income excluding other costs was $22 million ($0.21 per diluted share). The company achieved EBITDA excluding other costs of $42 million, representing 6.9% of revenue. Operating activities generated $74 million in cash for Q3 and $281 million for the trailing four quarters. The company maintains a strong financial position with $261 million in cash, zero long-term debt, and total liquidity of $622 million. DNOW repurchased $7 million in common stock during the quarter.
DNOW ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato di 606 milioni di dollari e un utile netto di 13 milioni di dollari (0,12 dollari per azione diluita). L'utile netto non-GAAP, esclusi altri costi, è stato di 22 milioni di dollari (0,21 dollari per azione diluita). L'azienda ha raggiunto un EBITDA escluso altri costi di 42 milioni di dollari, che rappresenta il 6,9% del fatturato. Le attività operative hanno generato 74 milioni di dollari in contante per il terzo trimestre e 281 milioni di dollari per i quattro trimestri precedenti. L'azienda mantiene una forte posizione finanziaria con 261 milioni di dollari in contante, zero debito a lungo termine e una liquidità totale di 622 milioni di dollari. DNOW ha riacquistato azioni ordinarie per 7 milioni di dollari durante il trimestre.
DNOW informó los resultados financieros del tercer trimestre de 2024 con ingresos de $606 millones y un ingreso neto de $13 millones ($0.12 por acción diluida). El ingreso neto no GAAP, excluyendo otros costos, fue de $22 millones ($0.21 por acción diluida). La compañía logró un EBITDA excluyendo otros costos de $42 millones, lo que representa el 6.9% de los ingresos. Las actividades operativas generaron $74 millones en efectivo para el tercer trimestre y $281 millones para los últimos cuatro trimestres. La empresa mantiene una sólida posición financiera con $261 millones en efectivo, cero deuda a largo plazo y una liquidez total de $622 millones. DNOW recompró $7 millones en acciones comunes durante el trimestre.
DNOW는 2024년 3분기 재무 실적을 보고하며 매출은 $606백만, 순이익은 $13백만 ($0.12의 희석주당 순이익)을 기록했습니다. 기타 비용을 제외한 비-GAAP 순이익은 $22백만 ($0.21의 희석주당 순이익)이었습니다. 회사는 기타 비용을 제외한 EBITDA를 $42백만 달성하여 매출의 6.9%를 차지했습니다. 운영 활동은 3분기에 $74백만의 현금을 생성했고, 지난 4분기 동안 총 $281백만을 기록했습니다. 회사는 $261백만의 현금을 보유하고 있으며, 장기 부채는 없고 총 유동성은 $622백만에 이릅니다. DNOW는 분기 동안 $7백만의 보통주를 재매입했습니다.
DNOW a annoncé les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de 606 millions de dollars et un bénéfice net de 13 millions de dollars (0,12 dollar par action diluée). Le bénéfice net non-GAAP, hors autres frais, était de 22 millions de dollars (0,21 dollar par action diluée). L'entreprise a atteint un EBITDA hors autres frais de 42 millions de dollars, représentant 6,9% du chiffre d'affaires. Les activités opérationnelles ont généré 74 millions de dollars en liquidités pour le troisième trimestre et 281 millions de dollars pour les quatre trimestres précédents. L'entreprise maintient une position financière solide avec 261 millions de dollars en liquidités, aucune dette à long terme et une liquidité totale de 622 millions de dollars. DNOW a racheté des actions ordinaires pour 7 millions de dollars pendant le trimestre.
DNOW berichtete über die finanziellen Ergebnisse des 3. Quartals 2024 mit einem Umsatz von 606 Millionen Dollar und einem Nettoergebnis von 13 Millionen Dollar (0,12 Dollar pro verwässerter Aktie). Das Nicht-GAAP-Nettoergebnis ohne andere Kosten betrug 22 Millionen Dollar (0,21 Dollar pro verwässerter Aktie). Das Unternehmen erzielte ein EBITDA ohne andere Kosten von 42 Millionen Dollar, was 6,9% des Umsatzes entspricht. Die operativen Tätigkeiten generierten im 3. Quartal 74 Millionen Dollar in bar und 281 Millionen Dollar für die letzten vier Quartale. Das Unternehmen hat eine starke finanzielle Position mit 261 Millionen Dollar in bar, null langfristigen Verbindlichkeiten und einer Gesamtl Liquidität von 622 Millionen Dollar. DNOW hat im Quartal Aktien im Wert von 7 Millionen Dollar zurückgekauft.
- Strong cash position with $261 million and zero long-term debt
- Generated $74 million operating cash flow in Q3
- Record performance in U.S. Process Solutions business
- Total liquidity of $622 million
- Continued execution of $80 million share repurchase program
- Project delays impacted quarterly performance
- Challenging oil and gas environment with lower commodity prices
- Customer consolidations affecting business environment
Insights
DNOW delivered a mixed performance in Q3 2024, with
Notable strengths include record performance in U.S. Process Solutions and successful integration of acquisitions. The ongoing
Earnings Conference Call
November 7, 2024
8:00 a.m. CT
1 (888) 660-6431 (within
1 (929) 203-2118 (outside of
Access Code: 7372055
Webcast: ir.dnow.com
Third Quarter 2024 Highlights
-
Revenue was
for the third quarter of 2024$606 million -
Net income attributable to DNOW Inc. was
, or$13 million per diluted share, for the third quarter of 2024$0.12 -
Non-GAAP net income attributable to DNOW Inc. excluding other costs was
, or$22 million per diluted share, for the third quarter of 2024$0.21
-
EBITDA excluding other costs was
or$42 million 6.9% of revenue for the third quarter of 2024 -
Cash provided by operating activities was
for the third quarter of 2024 and$74 million for the trailing four quarters ending September 30, 2024$281 million -
Repurchased
of common stock in the third quarter of 2024$7 million -
Cash and cash equivalents was
and long-term debt was zero at September 30, 2024 with total liquidity of approximately$261 million $622 million
David Cherechinsky, President and CEO of DNOW, added, “The Company achieved solid results this quarter with year-over-year revenue growth, despite project delays in the period, thanks to the hard work of our dedicated employees, who provide a differentiated level of service and products to our customers every day.
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 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) |
|||||||
|
|||||||
September 30, | December 31, | ||||||
|
2024 |
|
|
2023 |
|
||
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 |
|
|
Goodwill |
|
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 September 30, 2024 and December 31, 2023, respectively |
|
1 |
|
|
1 |
|
|
Additional paid-in capital |
|
2,024 |
|
|
2,032 |
|
|
Accumulated deficit |
|
(770 |
) |
|
(828 |
) |
|
Accumulated other comprehensive loss |
|
(141 |
) |
|
(145 |
) |
|
DNOW Inc. stockholders' equity |
|
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) |
||||||||||||||||
|
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
Revenue | $ |
606 |
|
$ |
588 |
$ |
633 |
$ |
1,802 |
$ |
1,766 |
|
||||
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 DNOW Inc. | $ |
13 |
|
$ |
35 |
$ |
24 |
$ |
58 |
$ |
100 |
|
||||
Earnings per share attributable to DNOW Inc. stockholders: | ||||||||||||||||
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 |
|
||||
Weighted-average common shares outstanding, diluted |
|
107 |
|
|
108 |
|
108 |
|
107 |
|
109 |
|
DNOW INC. SUPPLEMENTAL INFORMATION |
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BUSINESS SEGMENTS (UNAUDITED) (In millions) |
||||||||||||||
|
||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | June 30, | September 30, | ||||||||||||
|
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) |
|||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | June 30, | September 30, | |||||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP net income attributable to DNOW Inc. (1) | $ |
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 |
|
||||
Depreciation and amortization |
|
8 |
|
|
7 |
|
|
9 |
|
|
24 |
|
|
19 |
|
||||
Other costs: | |||||||||||||||||||
Stock-based compensation |
|
3 |
|
|
4 |
|
|
4 |
|
|
9 |
|
|
11 |
|
||||
Other (3) |
|
10 |
|
|
− |
|
|
5 |
|
|
18 |
|
|
6 |
|
||||
EBITDA excluding other costs | $ |
42 |
|
$ |
46 |
|
$ |
50 |
|
$ |
131 |
|
$ |
140 |
|
||||
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) |
||||||||||||||||
|
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
GAAP net income attributable to DNOW Inc. (1) | $ |
13 |
$ |
35 |
|
$ |
24 |
$ |
58 |
$ |
100 |
|
||||
Other, net of tax (5) (6) |
|
9 |
|
(7 |
) |
|
4 |
|
15 |
|
(17 |
) |
||||
Net income attributable to DNOW Inc. excluding other costs (6) | $ |
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) |
||||||||||||||||
|
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
GAAP diluted earnings per share attributable to DNOW Inc. stockholders (1) | $ |
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 DNOW Inc. stockholders excluding other costs (6) | $ |
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 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 months ended September 30, 2024, Other was primarily related to the International restructuring charges of
For the nine months ended September 30, 2024, Other included the International restructuring charges of |
(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 September 30, 2024, Other, net of tax, included approximately |
(6) |
|
Totals may not foot due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107113685/en/
Mark Johnson
Senior Vice President and Chief Financial Officer
(281) 823-4754
Source: DNOW Inc.
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