On a GAAP basis, total revenues and net loss in the Successor period from
On a non-GAAP basis:
"Notably, we significantly reduced our debt levels and increased our liquidity position so that we are better positioned to execute against our strategic objectives going forward. Despite the successes achieved thus far in our operational improvement efforts, we are not satisfied with the current results. We are intently focused on continuing to improve our business and we believe meaningful opportunities remain longer term.
"The Company's results for the fourth quarter and the full year were impacted by the challenges our industry faced in 2019. Activity reductions in
"Combined fourth-quarter revenues in
"Our international revenues, which accounted for approximately 70% of total combined revenues in 2019, grew 6% year-on-year[1] and were bolstered by 10% growth[1] in the
"The Company's combined adjusted EBITDA margins expanded by 350 basis points sequentially during the second half of the year due to a combination of favorable business mix and ongoing cost savings efforts. The improvement in business mix during the second half of the year was concentrated in the Eastern Hemisphere, and was driven by capital sales in
"Recent developments have created significant uncertainty on the industry's trajectory for 2020. The global impacts surrounding the COVID-19 pandemic, including operational and manufacturing disruptions, logistical constraints and travel restrictions, are rapidly evolving and increasingly dynamic.
"Further, recent actions by certain members of
"Despite this challenging outlook, we are committed to improving our profitability and free cash flow in 2020. We are embedding a returns-focused mindset into our organization and this, alongside continued cost-reduction efforts and the non-recurrence of costs associated with our financial restructuring, will assist in achieving our profit and cash flow objectives."
Notes:
[1] Excludes the impact of Land Drilling Rigs and the
[2] Net debt calculated as total short- and long-term debt less cash and cash equivalents and restricted cash. Net debt and adjusted EBITDA are a non-GAAP measure. Each measure is defined and reconciled to the most directly comparable GAAP measure in the tables below.
Operating Segments
Western Hemisphere
Successor |
Predecessor |
Predecessor |
|||||||||||||||||||
Period From |
Period From |
Non-GAAP |
Quarter |
Quarter |
|||||||||||||||||
|
|
Combined |
Ended |
Ended |
|||||||||||||||||
($ in Millions) |
|
|
Results |
|
|
||||||||||||||||
Revenues: |
|||||||||||||||||||||
|
$ |
68 |
$ |
289 |
$ |
357 |
$ |
383 |
$ |
485 |
|||||||||||
|
53 |
211 |
264 |
292 |
291 |
||||||||||||||||
Total Revenues |
$ |
121 |
$ |
500 |
$ |
621 |
$ |
675 |
$ |
776 |
|||||||||||
Adjusted Segment EBITDA |
$ |
10 |
$ |
53 |
$ |
63 |
$ |
59 |
$ |
110 |
|||||||||||
% Margin |
8% |
11% |
10% |
9% |
14% |
Fourth-quarter combined Western Hemisphere revenues of
Fourth-quarter combined adjusted segment EBITDA of
Eastern Hemisphere
Successor |
Predecessor |
Predecessor |
|||||||||||||||||||
Period From |
Period From |
Non-GAAP |
Quarter |
Quarter |
|||||||||||||||||
|
|
Combined |
Ended |
Ended |
|||||||||||||||||
($ in Millions) |
|
|
Results |
|
|
||||||||||||||||
Revenues: |
|||||||||||||||||||||
|
$ |
88 |
$ |
298 |
$ |
386 |
$ |
377 |
$ |
397 |
|||||||||||
|
52 |
187 |
239 |
262 |
256 |
||||||||||||||||
Total Revenues |
$ |
140 |
$ |
485 |
$ |
625 |
$ |
639 |
$ |
653 |
|||||||||||
Adjusted Segment EBITDA |
$ |
30 |
$ |
84 |
$ |
114 |
$ |
144 |
$ |
128 |
|||||||||||
% Margin |
21% |
17% |
18% |
23% |
20% |
Fourth-quarter combined Eastern Hemisphere revenues of
Fourth-quarter combined adjusted segment EBITDA of
Customer & Technology Highlights
About
Conference Call Details
Listeners can access the conference call at https://www.weatherford.com/en/investor-relations/conference-call-details/ or by dialing +1 877-328-5344 (within the
A telephonic replay of the conference call will be available until
Contact
Senior Director, Investor Relations
+1 713-836-6777
investor.relations@weatherford.com
Forward-Looking Statements
This news release contains forward-looking statements concerning, among other things, the Company's quarterly and full-year non-GAAP earnings (loss) per share, effective tax rate, net debt, forecasts or expectations regarding business outlook, and capital expenditures, and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of
|
||||||||||||||||||||
Quarterly Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||||||
($ in Millions, Except Per Share Amounts) |
||||||||||||||||||||
Successor |
Predecessor |
Predecessor |
||||||||||||||||||
Period From |
Period From |
Non-GAAP |
Quarter |
Quarter |
||||||||||||||||
|
|
Combined |
Ended |
Ended |
||||||||||||||||
|
|
Results |
|
|
||||||||||||||||
Revenues: |
||||||||||||||||||||
Western Hemisphere |
$ |
121 |
$ |
500 |
$ |
621 |
$ |
675 |
$ |
776 |
||||||||||
Eastern Hemisphere |
140 |
485 |
625 |
639 |
653 |
|||||||||||||||
Total Revenues |
261 |
985 |
1,246 |
1,314 |
1,429 |
|||||||||||||||
Operating Income (Loss): |
||||||||||||||||||||
Western Hemisphere |
(4) |
19 |
15 |
15 |
56 |
|||||||||||||||
Eastern Hemisphere |
10 |
30 |
40 |
56 |
46 |
|||||||||||||||
Segment Operating Income |
6 |
49 |
55 |
71 |
102 |
|||||||||||||||
Corporate Expenses |
(5) |
(23) |
(28) |
(31) |
(29) |
|||||||||||||||
Goodwill Impairment |
— |
— |
— |
(399) |
(1,917) |
|||||||||||||||
Restructuring Charges |
— |
(96) |
(96) |
(53) |
(36) |
|||||||||||||||
Gain on Sale of Operational Assets |
— |
— |
— |
15 |
— |
|||||||||||||||
Other Charges, Net |
— |
(246) |
(246) |
(50) |
(79) |
|||||||||||||||
Total Operating Income (Loss) |
1 |
(316) |
(315) |
(447) |
(1,959) |
|||||||||||||||
Other Income (Expense): |
||||||||||||||||||||
Reorganization Items |
(4) |
5,692 |
5,688 |
(303) |
— |
|||||||||||||||
Interest Expense, Net |
(12) |
(21) |
(33) |
(26) |
(157) |
|||||||||||||||
Other Non-Operating Expenses, Net |
— |
(8) |
(8) |
(8) |
(26) |
|||||||||||||||
Net Income (Loss) Before Income Taxes |
(15) |
5,347 |
5,332 |
(784) |
(2,142) |
|||||||||||||||
Income Tax (Provision) Benefit |
(9) |
(59) |
(68) |
(31) |
46 |
|||||||||||||||
Net Income (Loss) |
(24) |
5,288 |
5,264 |
(815) |
(2,096) |
|||||||||||||||
Net Income Attributable to Noncontrolling |
2 |
9 |
11 |
6 |
7 |
|||||||||||||||
Net Income (Loss) Attributable to |
$ |
(26) |
$ |
5,279 |
$ |
5,253 |
$ |
(821) |
$ |
(2,103) |
||||||||||