Financial Performance - For the three months ended September 30, 2024, the company generated net income of $13 million on revenue of $606 million, representing a revenue increase of $18 million or 3.1% compared to the same period in 2023[55]. - The company reported an operating profit of $23 million for the three months ended September 30, 2024, down from $37 million in the same period of 2023[55]. - For the three months ended September 30, 2024, total revenue was $606 million, an increase of $18 million or 3.1% compared to $588 million in 2023[59]. - The U.S. segment generated revenue of $482 million for the three months ended September 30, 2024, up $34 million or 7.6% from $448 million in 2023[58]. - The International segment reported a revenue decrease of $13 million or 18.1% to $59 million for the three months ended September 30, 2024, compared to $72 million in 2023[61]. - Operating profit for the total company was $23 million for the three months ended September 30, 2024, down from $37 million in 2023, reflecting a decline of $14 million or 37.8%[59]. - The effective tax rate for the three months ended September 30, 2024, was 40.9%, significantly higher than 5.4% in the same period of 2023[65]. Cash Flow and Investments - For the nine months ended September 30, 2024, net cash provided by operating activities was $176 million, an increase from $83 million in the same period of 2023, driven by improved inventory efficiency and better collections[70]. - Net cash used in investing activities for the same period was $190 million, significantly higher than $47 million in 2023, primarily due to business acquisitions totaling $185 million[70]. - Net cash used in financing activities decreased to $25 million from $54 million in the prior year, with $18 million allocated for share repurchases compared to $49 million in 2023[70]. - The company repurchased 1,379,020 shares for approximately $18 million during the nine months ended September 30, 2024, with $6 million remaining under the share repurchase program[74]. - The company plans to fund future cash acquisitions primarily with cash on hand, cash flow from operations, and the available portion of the revolving credit facility[73]. Operational Highlights - The company operates approximately 165 locations globally, with around 2,550 employees[42]. - The company has expanded its operations through acquisitions and organic investments in several countries, including Australia, Canada, and the UAE[43]. - The company provides a suite of digital procurement channels through its DigitalNOW® platform to enhance supply chain optimization[42]. - The company serves customers in approximately 80 countries, supported by a supplier network of thousands of vendors across 40 countries[42]. Market Conditions - The average price of West Texas Intermediate Crude declined by 7.4% to $76.24 per barrel in Q3 2024 compared to Q3 2023[49]. - The U.S. rig count decreased by 10.0% to 586 rigs in Q3 2024 compared to 651 rigs in Q3 2023[49]. - The average natural gas price increased by 1.4% to $2.11 per MMBtu in Q3 2024 compared to Q2 2024[53]. Foreign Currency Impact - The company recognized $8 million in charges related to the restructuring of its International segment, including $5 million in foreign currency translation losses[47]. - A net foreign currency translation gain of $4 million was reported for the nine months ended September 30, 2024, following the liquidation of certain foreign subsidiaries[77]. - The company experienced foreign currency transaction losses of $1 million for both the nine months ended September 30, 2024, and 2023, primarily due to exchange rate fluctuations[77]. - The average foreign exchange rate for the first nine months of 2024 remained flat compared to the same period in 2023, with the Canadian dollar and Australian dollar decreasing by 1% against the U.S. dollar[77]. - The company reported a favorable effect of $1 million from changes in exchange rates on cash and cash equivalents for the nine months ended September 30, 2024[72].

Financial Data and Key Metrics Changes - In Q3 2024, the company reported total revenue of $606 million, a year-over-year increase of 3% or $18 million [29] - EBITDA for the quarter was $42 million, representing 6.9% of revenue, with year-to-date EBITDA at $131 million or 7.3% of revenue [29] - Free cash flow for the quarter was $72 million, totaling $273 million over the trailing four quarters [8][39] - The company raised its full-year 2024 free cash flow forecast to approximately $215 million [8] Business Line Data and Key Metrics Changes - U.S. revenue for Q3 2024 was $482 million, an increase of $34 million or 8% year-over-year [30] - U.S. Process Solutions had its best financial performance ever, contributing significantly to overall results [14] - Canadian revenue for Q3 2024 was $65 million, down $3 million or 4% year-over-year but up 16% sequentially [30][21] - International revenue decreased to $59 million, down $6 million or 9% sequentially, impacted by location closures and lower project activity [22][30] Market Data and Key Metrics Changes - The number of active rigs and completions in the U.S. declined more than 12% year-over-year, affecting revenue opportunities [10] - The company noted a 60% increase in CCUS projects, with 628 facilities now in development [23] - The company experienced project delays due to customer consolidations, impacting revenue timing [15][56] Company Strategy and Development Direction - The company is focusing on expanding its midstream business, which currently accounts for approximately 20% of revenues [44][64] - There is a strategic emphasis on energy evolution and adjacent industrial markets, including mining and chemical processing [44][24] - The company plans to continue pursuing acquisitions as a key growth strategy, leveraging its strong cash position and lack of debt [27][37] Management's Comments on Operating Environment and Future Outlook - Management expects lower sequential oil and gas activity in Q4 2024 due to customer budget exhaustion and normal seasonality [42] - The company anticipates modest full-year revenue growth for 2024 compared to 2023 [42] - Management highlighted the resilience of revenue despite project delays, attributing this to strong operational execution and market positioning [45] Other Important Information - The company reported a cash position of $261 million and total liquidity of $622 million at the end of Q3 2024 [37] - The company continues to execute its share repurchase program, with cumulative repurchases totaling $74 million under an $80 million authorization [40] Q&A Session Summary Question: Impact of the election on M&A environment - Management believes a more business-friendly climate from a Republican administration could facilitate acquisitions and benefit the company [48][49] Question: Pipeline maturity and actionable deals - Management indicated ongoing negotiations for several potential acquisitions, focusing on growing process solutions [50][51] Question: Project deferrals and their timing - Approximately $10 million in projects were deferred in Q3, primarily due to product availability, with expectations for these to ship in Q4 [52][53] Question: Customer consolidation effects - Management noted that customer consolidations can disrupt operations but may ultimately benefit the company in the long term due to its unique capabilities [58][60] Question: Working capital and inventory turns - Management stated that while current inventory turns are strong at 5.2, further improvement may be limited without risking product availability [61][62] Question: Midstream revenue expectations - Management expects midstream revenue to potentially increase in 2025, benefiting from favorable market conditions and acquisitions [64] Question: Share repurchase versus dividends - Management favors share repurchases over dividends, prioritizing organic growth and M&A as primary uses of cash [71][72]

DNOW (DNOW) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.53%. A quarter ago, it was expected that this energy and industrial distribution company would post earnings of $0.26 per share when it actually produced earnings of $0.25, delivering a surprise of -3.85%.Over the last fou ...

DNOW Reports Third Quarter 2024 Results Earnings Conference Call November 7, 2024 8:00 a.m. CT 1 (888) 660-6431 (within North America) 1 (929) 203-2118 (outside of North America) Access Code: 7372055 Webcast: ir.dnow.com HOUSTON, TX, November 7, 2024 – DNOW Inc. (NYSE: DNOW) announced results for the third quarter ended September 30, 2024. Third Quarter 2024 Highlights • Revenue was $606 million for the third quarter of 2024 • Non-GAAP net income attributable to DNOW Inc. excluding other costs was $22 milli ...

Porsche NOW is an expression of a temporary design concept that provides an intimate and interactive brand experience in select metropolitan areas New pop-ups focus on the electrified Porsche model range and feature a Provence colour palette, inaugurated on the new Macan Electric Public Relations Public Relations Patrick Saint-Pierre Tina McMullan 647-531-2992 647-393-2264 Patrick.Saint-Pierre@porsche.ca Tina.McMullan@porsche.ca Five brand locations in three provinces will be operating until the end of the ...

Core Insights - The performance of DNOW's international operations is crucial for assessing its financial resilience and growth prospects [1][4] - Understanding a company's reliance on international markets is essential for evaluating its earnings sustainability and growth potential [2] Revenue Performance - DNOW reported total revenue of $633 million for the quarter, reflecting a year-over-year increase of 6.6% [4] - Canada contributed $56 million, accounting for 8.9% of total revenue, which was below the consensus estimate of $58.2 million [5] - International revenue was $65 million, representing 10.3% of total revenue, also falling short of the expected $70.3 million [6] Future Projections - Analysts project DNOW's total revenue for the current fiscal quarter to be $606.9 million, a 3.2% increase from the same quarter last year [7] - For the full year, total revenue is expected to reach $2.36 billion, indicating a 1.5% rise from the previous year [8] Market Dependency - DNOW's dependency on global markets presents both opportunities and challenges, making the monitoring of international revenue trends vital for predicting future performance [9][10]

LOS ANGELES, Aug. 12, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of ServiceNow, Inc. ("ServiceNow" or "the Company") (NYSE: NOW) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. ServiceNow suffered a downgrade from "Neutral" to "Sell" issued by Guggenheim on ...

DNOW Inc. (NYSE:DNOW) Q2 2024 Earnings Conference Call August 7, 2024 9:00 AM ET Company Participants Brad Wise - Vice President, Digital Strategy and IR David Cherechinsky - President and CEO Mark Johnson - SVP and CFO Conference Call Participants Nathan Jones - Stifel Jeff Robertson - Water Tower Research Operator Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the DNOW Second Quarter 2024 Earnings Conference Call. [Operator Ins ...

Part I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) DNOW Inc.'s H1 2024 unaudited financials show total assets at $1.56 billion, revenue at $1.20 billion, and net income at $46 million, with cash flow impacted by acquisitions [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows total assets increased to $1.56 billion, primarily due to goodwill and intangibles from the Whitco Supply acquisition Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2024 (Unaudited) | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $197 | $299 | | Inventories, net | $399 | $366 | | Goodwill | $192 | $139 | | Total assets | $1,563 | $1,529 | | Total liabilities | $464 | $466 | | Total stockholders' equity | $1,099 | $1,063 | - The increase in **Goodwill from $139 million to $192 million** and **Intangibles from $28 million to $57 million** is primarily due to the acquisition of Whitco Supply, LLC during the first half of 2024[3](index=3&type=chunk)[35](index=35&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The statements of operations show revenue growth for Q2 and H1 2024, but net income declined significantly compared to the prior year Statement of Operations Summary (in millions) | Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $633 | $594 | $1,196 | $1,178 | | Operating Profit | $33 | $36 | $61 | $71 | | Net Income Attributable to DNOW Inc. | $24 | $34 | $45 | $65 | - Revenue increased by **6.6% YoY for Q2 2024** and **1.5% for H1 2024**, however, net income declined by **29.4% for Q2 2024** and **30.8% for H1 2024** compared to the same periods in 2023[4](index=4&type=chunk)[50](index=50&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operations increased, but significant cash was used in investing activities for acquisitions, leading to a net decrease in cash Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $102 | $79 | | Net cash used in investing activities | ($188) | ($43) | | Net cash used in financing activities | ($15) | ($47) | | Net change in cash and cash equivalents | ($102) | ($9) | - The significant use of cash in investing activities in H1 2024 was driven by a **$185 million payment for a business acquisition**, a substantial increase from the **$33 million** used for acquisitions in H1 2023[6](index=6&type=chunk) - Cash used in financing activities decreased primarily due to lower share repurchases, which amounted to **$11 million in H1 2024** compared to **$44 million in H1 2023**[6](index=6&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail business segments, the $185 million Whitco Supply acquisition boosting U.S. revenue, and $11 million in share repurchases Revenue by Business Segment (in millions) | Segment | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | United States | $512 | $456 | $947 | $883 | | Canada | $56 | $66 | $122 | $149 | | International | $65 | $72 | $127 | $146 | | **Total** | **$633** | **$594** | **$1,196** | **$1,178** | Operating Profit by Business Segment (in millions) | Segment | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | United States | $28 | $29 | $51 | $52 | | Canada | $2 | $3 | $5 | $11 | | International | $3 | $4 | $5 | $8 | | **Total** | **$33** | **$36** | **$61** | **$71** | - In H1 2024, the company acquired Whitco Supply, LLC for **$185 million**, resulting in the recognition of **$53 million in goodwill** and **$30 million in intangible assets** in the U.S. segment[35](index=35&type=chunk)[36](index=36&type=chunk) - Under its share repurchase program, the company bought back **837,518 shares for $11 million in H1 2024**, compared to **4,026,550 shares for $44 million in H1 2023**[23](index=23&type=chunk)[24](index=24&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A attributes Q2 2024 revenue growth to the Whitco Supply acquisition, offsetting declines elsewhere, with operating profit falling; liquidity remains strong [Operating Environment Overview](index=23&type=section&id=Operating%20Environment%20Overview) The operating environment shows a mixed trend with declining U.S. rig counts but increasing WTI crude oil prices Key Industry Indicators (Q2 2024 vs. Q2 2023) | Indicator | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | U.S. Active Drilling Rigs | 603 | 722 | (16.5%) | | Canada Active Drilling Rigs | 137 | 115 | 19.1% | | International Active Drilling Rigs | 963 | 960 | 0.3% | | WTI Crude Price ($/barrel) | $81.71 | $73.76 | 10.8% | | U.S. Wells Completed | 2,756 | 3,185 | (13.5%) | - Despite a **16.5% YoY decline** in the U.S. rig count, the average price of WTI crude oil increased by **10.8%** in Q2 2024 compared to Q2 2023, indicating a mixed operating environment[44](index=44&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) U.S. segment revenue grew due to acquisition, offsetting declines in Canada and International segments, while the effective tax rate significantly increased - U.S. segment revenue increased **12.3% in Q2 2024** and **7.2% in H1 2024**, primarily driven by the Whitco Supply acquisition, which offset weakening drilling and completion activity[53](index=53&type=chunk) - Canada segment revenue declined **15.2% in Q2 2024** and **18.1% in H1 2024** due to weaker project activity and unfavorable foreign exchange rates[55](index=55&type=chunk) - International segment revenue decreased **9.7% in Q2 2024** and **13.0% in H1 2024**, also driven by weaker project activity[56](index=56&type=chunk) - The effective tax rate for H1 2024 was **25.8%**, significantly higher than **5.7%** in H1 2023, with the prior year's rate lower due to a non-recurring release of a valuation allowance on deferred tax assets[59](index=59&type=chunk)[28](index=28&type=chunk) Reconciliation to EBITDA excluding other costs (in millions) | Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to DNOW Inc. | $24 | $34 | $45 | $65 | | Adjustments (Taxes, D&A, etc.) | $21 | $11 | $36 | $22 | | Other costs | $9 | $6 | $14 | $13 | | **EBITDA excluding other costs** | **$50** | **$47** | **$89** | **$94** | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $197 million in cash and $485 million available under its credit facility, alongside $11 million in share repurchases - As of June 30, 2024, the company had **$197 million** in cash and cash equivalents and no borrowings against its **$500 million** revolving credit facility[64](index=64&type=chunk) - Total availability under the credit facility was approximately **$485 million** as of June 30, 2024[64](index=64&type=chunk)[22](index=22&type=chunk) - The company repurchased **$11 million** of its common stock in H1 2024 and had approximately **$13 million** remaining under its share repurchase authorization as of June 30, 2024[70](index=70&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency and commodity steel prices, with a hypothetical 10% currency change having an immaterial impact on net income - The company's primary market risks are foreign currency exchange rate fluctuations and changes in commodity steel prices[73](index=73&type=chunk)[75](index=75&type=chunk) - Approximately **one-fifth** of revenue for H1 2024 was generated outside the U.S., with primary currency exposures to the Canadian dollar and British pound[74](index=74&type=chunk) - A sensitivity analysis indicates that a hypothetical **10%** adverse change in foreign currency exchange rates would have resulted in **less than a $1 million** change in net income for the first six months of 2024[74](index=74&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[76](index=76&type=chunk) - There were no changes in internal control over financial reporting during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[77](index=77&type=chunk) Part II [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2024, the company repurchased 669,463 shares for $10 million, with $13 million remaining under the authorization expiring December 31, 2024 Share Repurchases for Q2 2024 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2024 | — | $— | | May 2024 | 141,256 | $14.18 | | June 2024 | 528,207 | $13.50 | | **Total** | **669,463** | **$13.64** | - The share repurchase program, authorizing up to **$80 million** in purchases, is set to expire on **December 31, 2024**[78](index=78&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2024 - During the three months ended June 30, 2024, no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[79](index=79&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, credit agreements, and SOX certifications - The report includes various exhibits such as the Amended and Restated Certificate of Incorporation, credit agreements, the 2024 Omnibus Incentive Plan, and Sarbanes-Oxley certifications[79](index=79&type=chunk)

DNOW (DNOW) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -3.85%. A quarter ago, it was expected that this energy and industrial distribution company would post earnings of $0.24 per share when it actually produced earnings of $0.21, delivering a surprise of -12.50%. Over the last f ...