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) |
Item 2.02 Results of Operations and Financial Condition | ||||||||
Item 9.01 Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
Index to Exhibits | ||||||||
EX-99.1 |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and 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 25, 2011 announcing the earnings results for the third quarter ended September 30, 2011. |
Date: October 25, 2011 | NATIONAL OILWELL VARCO, INC. |
|||
/s/ Raymond W. Chang | ||||
Raymond W. Chang | ||||
Vice President |
NEWS
|
Contact: Clay Williams | |
(713) 346-7606 |
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 3,870 | $ | 3,333 | ||||
Receivables, net |
3,109 | 2,425 | ||||||
Inventories, net |
3,907 | 3,388 | ||||||
Costs in excess of billings |
531 | 815 | ||||||
Deferred income taxes |
282 | 316 | ||||||
Prepaid and other current assets |
339 | 258 | ||||||
Total current assets |
12,038 | 10,535 | ||||||
Property, plant and equipment, net |
1,967 | 1,840 | ||||||
Deferred income taxes |
194 | 341 | ||||||
Goodwill |
5,942 | 5,790 | ||||||
Intangibles, net |
3,995 | 4,103 | ||||||
Investment in unconsolidated affiliate |
371 | 386 | ||||||
Other assets |
37 | 55 | ||||||
$ | 24,544 | $ | 23,050 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 802 | $ | 628 | ||||
Accrued liabilities |
2,154 | 2,105 | ||||||
Billings in excess of costs |
1,117 | 511 | ||||||
Current portion of long-term debt and short-term borrowings |
2 | 373 | ||||||
Accrued income taxes |
399 | 468 | ||||||
Deferred income taxes |
270 | 451 | ||||||
Total current liabilities |
4,744 | 4,536 | ||||||
Long-term debt |
510 | 514 | ||||||
Deferred income taxes |
1,776 | 1,885 | ||||||
Other liabilities |
275 | 253 | ||||||
Total liabilities |
7,305 | 7,188 | ||||||
Commitments and contingencies |
||||||||
Stockholders equity: |
||||||||
Common stock par value $.01; 423,817,646 and 421,141,751 shares
issued and outstanding at September 30, 2011 and December 31, 2010 |
4 | 4 | ||||||
Additional paid-in capital |
8,513 | 8,353 | ||||||
Accumulated other comprehensive income |
37 | 91 | ||||||
Retained earnings |
8,580 | 7,300 | ||||||
Total National Oilwell Varco stockholders equity |
17,134 | 15,748 | ||||||
Noncontrolling interests |
105 | 114 | ||||||
Total stockholders equity |
17,239 | 15,862 | ||||||
$ | 24,544 | $ | 23,050 | |||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||||||
2011 | 2010 | 2011 | 2011 | 2010 | ||||||||||||||||
Revenue: |
||||||||||||||||||||
Rig technology |
$ | 1,970 | $ | 1,650 | $ | 1,894 | $ | 5,472 | $ | 5,208 | ||||||||||
Petroleum services and supplies |
1,460 | 1,089 | 1,359 | 4,084 | 3,045 | |||||||||||||||
Distribution services |
480 | 424 | 423 | 1,313 | 1,123 | |||||||||||||||
Eliminations |
(170 | ) | (152 | ) | (163 | ) | (470 | ) | (392 | ) | ||||||||||
Total revenue |
3,740 | 3,011 | 3,513 | 10,399 | 8,984 | |||||||||||||||
Gross profit |
1,170 | 947 | 1,087 | 3,251 | 2,852 | |||||||||||||||
Gross profit % |
31.3 | % | 31.5 | % | 30.9 | % | 31.3 | % | 31.7 | % | ||||||||||
Selling, general, and administrative |
392 | 349 | 375 | 1,133 | 1,012 | |||||||||||||||
Other costs |
6 | 2 | 4 | 29 | 44 | |||||||||||||||
Operating profit |
772 | 596 | 708 | 2,089 | 1,796 | |||||||||||||||
Interest and financial costs |
(8 | ) | (12 | ) | (9 | ) | (31 | ) | (38 | ) | ||||||||||
Interest income |
5 | 4 | 4 | 13 | 9 | |||||||||||||||
Equity income in unconsolidated affiliate |
11 | 8 | 10 | 34 | 22 | |||||||||||||||
Other income (expense), net |
| (23 | ) | (7 | ) | (26 | ) | (15 | ) | |||||||||||
Income before income taxes |
780 | 573 | 706 | 2,079 | 1,774 | |||||||||||||||
Provision for income taxes |
252 | 169 | 226 | 667 | 552 | |||||||||||||||
Net income |
528 | 404 | 480 | 1,412 | 1,222 | |||||||||||||||
Net loss attributable to noncontrolling interests |
(4 | ) | | (1 | ) | (8 | ) | (5 | ) | |||||||||||
Net income attributable to Company |
$ | 532 | $ | 404 | $ | 481 | $ | 1,420 | $ | 1,227 | ||||||||||
Net income attributable to Company per share: |
||||||||||||||||||||
Basic |
$ | 1.26 | $ | 0.97 | $ | 1.14 | $ | 3.37 | $ | 2.94 | ||||||||||
Diluted |
$ | 1.25 | $ | 0.96 | $ | 1.13 | $ | 3.35 | $ | 2.93 | ||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||
Basic |
422 | 417 | 422 | 421 | 417 | |||||||||||||||
Diluted |
425 | 419 | 425 | 424 | 419 | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||||||
2011 | 2010 | 2011 | 2011 | 2010 | ||||||||||||||||
Revenue: |
||||||||||||||||||||
Rig technology |
$ | 1,970 | $ | 1,650 | $ | 1,894 | $ | 5,472 | $ | 5,208 | ||||||||||
Petroleum services and supplies |
1,460 | 1,089 | 1,359 | 4,084 | 3,045 | |||||||||||||||
Distribution services |
480 | 424 | 423 | 1,313 | 1,123 | |||||||||||||||
Eliminations |
(170 | ) | (152 | ) | (163 | ) | (470 | ) | (392 | ) | ||||||||||
Total revenue |
$ | 3,740 | $ | 3,011 | $ | 3,513 | $ | 10,399 | $ | 8,984 | ||||||||||
Operating profit: |
||||||||||||||||||||
Rig technology |
$ | 528 | $ | 480 | $ | 517 | $ | 1,467 | $ | 1,570 | ||||||||||
Petroleum services and supplies |
299 | 164 | 249 | 794 | 415 | |||||||||||||||
Distribution services |
37 | 24 | 26 | 91 | 48 | |||||||||||||||
Unallocated expenses and eliminations |
(86 | ) | (70 | ) | (80 | ) | (234 | ) | (193 | ) | ||||||||||
Total operating profit (before other costs) |
$ | 778 | $ | 598 | $ | 712 | $ | 2,118 | $ | 1,840 | ||||||||||
Operating profit %: |
||||||||||||||||||||
Rig technology |
26.8 | % | 29.1 | % | 27.3 | % | 26.8 | % | 30.1 | % | ||||||||||
Petroleum services and supplies |
20.5 | % | 15.1 | % | 18.3 | % | 19.4 | % | 13.6 | % | ||||||||||
Distribution services |
7.7 | % | 5.7 | % | 6.1 | % | 6.9 | % | 4.3 | % | ||||||||||
Other unallocated |
| | | | | |||||||||||||||
Total operating profit % (before other costs) |
20.8 | % | 19.9 | % | 20.3 | % | 20.4 | % | 20.5 | % | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||||||
2011 | 2010 | 2011 | 2011 | 2010 | ||||||||||||||||
Reconciliation of EBITDA excluding other costs (Note 1): |
||||||||||||||||||||
GAAP net income attributable to Company |
$ | 532 | $ | 404 | $ | 481 | $ | 1,420 | $ | 1,227 | ||||||||||
Provision for income taxes |
252 | 169 | 226 | 667 | 552 | |||||||||||||||
Interest expense |
8 | 12 | 9 | 31 | 38 | |||||||||||||||
Depreciation and amortization |
140 | 127 | 138 | 413 | 378 | |||||||||||||||
EBITDA |
932 | 712 | 854 | 2,531 | 2,195 | |||||||||||||||
Other costs: |
||||||||||||||||||||
Transaction costs |
6 | 2 | 4 | 12 | 6 | |||||||||||||||
Libya asset write-down |
| | | 17 | | |||||||||||||||
Devaluation costs |
| | | | 38 | |||||||||||||||
EBITDA excluding other costs (Note 1) |
$ | 938 | $ | 714 | $ | 858 | $ | 2,560 | $ | 2,239 | ||||||||||
CONTACT: | National Oilwell Varco, Inc. Clay Williams, (713) 346-7606 Clay.Williams@nov.com |
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