DNOW Reports Second Quarter 2024 Results
DNOW Inc. (NYSE: DNOW) announced results for the second quarter ended June 30, 2024. Second Quarter 2024 Highlights Revenue was $633 million for the second quarter of 2024 Net income attributable to...
Earnings Conference Call
August 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: DNOW Inc. (NYSE: DNOW) announced results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Revenue was $633 million for the second quarter of 2024
- Net income attributable to DNOW Inc. was $24 million, or $0.21 per diluted share, for the second quarter of 2024
- Non-GAAP net income attributable to DNOW Inc. excluding other costs was $28 million, or $0.25 per diluted share, for the second quarter of 2024
- EBITDA excluding other costs was $50 million or 7.9% of revenue for the second quarter of 2024
- Cash provided by operating activities was $21 million for the second quarter of 2024 and $211 million for the trailing four quarters ending June 30, 2024
- Repurchased $10 million of common stock in the second quarter of 2024
- Cash and cash equivalents was $197 million and long-term debt was zero at June 30, 2024 with total liquidity of approximately $579 million
David Cherechinsky, President and CEO of DNOW, added, “We are delighted with the growth we achieved during the second quarter, in a challenging market, where we delivered $50 million in EBITDA and produced $18 million in free cash flow, bringing our free cash flow haul to $201 million over the past four quarters. We opportunistically repurchased $10 million in shares in the quarter and are on a path to complete the $80 million share repurchase program this year.
We continue to execute on our strategy to bolster DNOW’s capabilities and expand our core market, while further penetrating into midstream, energy evolution and adjacent industrial markets, providing additional opportunities for growth. The future remains bright thanks to our dedicated, skilled and passionate employees who work tirelessly and successfully to help solve our customers’ complex operational and supply chain challenges.
With $197 million in cash, no debt and $579 million of total liquidity, we continue to pursue complementary, margin accretive acquisitions where the combination would maximize shareholder value and fuel future DNOW success.”
Prior to the earnings conference call a presentation titled “DNOW Second 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 Houston, Texas, with approximately 2,600 employees and a network of locations worldwide, we offer a broad set of supply chain solutions combined with a suite of digital offerings branded as DigitalNOW® that provide customers world-class technology for digital commerce, data and information management. Our locations provide products and solutions to exploration and production, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction as well as companies operating in the decarbonization, energy transition and renewables end markets.
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 U.S. Securities and Exchange Commission, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.
DNOW INC. CONSOLIDATED BALANCE SHEETS (In millions, except share data) | |||||||
| |||||||
| June 30, | December 31, | ||||||
2024 |
| 2023 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 197 |
| $ | 299 |
| |
| Receivables, net |
| 403 |
|
| 384 |
| |
| Inventories, net |
| 399 |
|
| 366 |
| |
| Prepaid and other current assets |
| 24 |
|
| 19 |
| |
| Total current assets |
| 1,023 |
|
| 1,068 |
| |
| Property, plant and equipment, net |
| 139 |
|
| 131 |
| |
| Deferred income taxes |
| 105 |
|
| 118 |
| |
| Goodwill |
| 192 |
|
| 139 |
| |
| Intangibles, net |
| 57 |
|
| 28 |
| |
| Other assets |
| 47 |
|
| 45 |
| |
| Total assets | $ | 1,563 |
| $ | 1,529 |
| |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 278 |
| $ | 288 |
| |
| Accrued liabilities |
| 123 |
|
| 120 |
| |
| Other current liabilities |
| 11 |
|
| 10 |
| |
| Total current liabilities |
| 412 |
|
| 418 |
| |
| Long-term operating lease liabilities |
| 32 |
|
| 30 |
| |
| Other long-term liabilities |
| 20 |
|
| 18 |
| |
| Total liabilities |
| 464 |
|
| 466 |
| |
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Preferred stock - par value $0.01; 20 million shares authorized; no shares issued and outstanding |
| − |
|
| − |
| |
| Common stock - par value $0.01; 330 million shares authorized; 106,549,496 and 106,257,565 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively |
| 1 |
|
| 1 |
| |
| Additional paid-in capital |
| 2,028 |
|
| 2,032 |
| |
| Accumulated deficit |
| (783 | ) |
| (828 | ) | |
| Accumulated other comprehensive loss |
| (151 | ) |
| (145 | ) | |
| DNOW Inc. stockholders' equity |
| 1,095 |
|
| 1,060 |
| |
| Noncontrolling interest |
| 4 |
|
| 3 |
| |
| Total stockholders' equity |
| 1,099 |
|
| 1,063 |
| |
| Total liabilities and stockholders' equity | $ | 1,563 |
| $ | 1,529 |
| |
DNOW INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In millions, except per share data) | ||||||||||||||||
| ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||
2024 | 2023 |
| 2024 | 2024 | 2023 |
| ||||||||||
| Revenue | $ | 633 | $ | 594 |
| $ | 563 | $ | 1,196 | $ | 1,178 |
| ||||
| Operating expenses: | ||||||||||||||||
| Cost of products | 495 |
| 460 |
|
| 434 |
| 929 |
| 907 |
| |||||
| Warehousing, selling and administrative |
| 105 |
| 98 |
|
| 101 |
| 206 |
| 200 |
| ||||
| Operating profit |
| 33 |
| 36 |
|
| 28 |
| 61 |
| 71 |
| ||||
| Other income (expense) |
| − |
| (1 | ) |
| 1 |
| 1 |
| (1 | ) | ||||
| Income before income taxes |
| 33 |
| 35 |
|
| 29 |
| 62 |
| 70 |
| ||||
| Income tax provision |
| 8 |
| 1 |
|
| 8 |
| 16 |
| 4 |
| ||||
| Net income |
| 25 |
| 34 |
|
| 21 |
| 46 |
| 66 |
| ||||
| Net income attributable to noncontrolling interest |
| 1 |
| − |
|
| − |
| 1 |
| 1 |
| ||||
| Net income attributable to DNOW Inc. | $ | 24 | $ | 34 |
| $ | 21 | $ | 45 | $ | 65 |
| ||||
| Earnings per share attributable to DNOW Inc. stockholders: | ||||||||||||||||
| Basic | $ | 0.21 | $ | 0.31 |
| $ | 0.20 | $ | 0.41 | $ | 0.59 |
| ||||
| Diluted | $ | 0.21 | $ | 0.31 |
| $ | 0.19 | $ | 0.41 | $ | 0.59 |
| ||||
| Weighted-average common shares outstanding, basic |
| 107 |
| 107 |
| 106 |
| 107 |
| 108 |
| |||||
| Weighted-average common shares outstanding, diluted |
| 108 |
| 108 |
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