- Total cash of
- Signed financing commitment for
- Cash flows from operations of
- Operating loss of
- Cost savings plan expanded to deliver an expected
On a GAAP basis, revenues for the second quarter of 2020 were
On a non-GAAP basis:
"We are pleased to announce a new
"Global oil demand is in the early stages of what will likely be an uneven path to recovery, and we expect the market environment to remain challenging over the near-term. Over the medium- to long-term, the backlog of crude inventory, continued uncertainty associated with COVID-19 outbreaks and the resulting changes to global oil consumption patterns are expected to serve as headwinds for commodity prices, yielding a protracted timeline for a rebound in activity.
"We continue to focus on delivering operational excellence to our valued customers, making structural improvements to minimize the impact of activity reductions and further improve the Company's operating efficiency. We began taking action early in the year, expanded our efforts in the quarter, and will take additional actions as needed going forward. We will maintain disciplined controls on costs and spending to maximize liquidity and preserve our margins as we progress through the cycle. We are proud of how our employees managed in this difficult environment, in both supporting our customers and executing on our plans."
Note: Upon completing its financial restructuring in late 2019, the Company adopted fresh-start accounting resulting in Weatherford becoming a new entity for accounting and financial reporting purposes. As required by GAAP, results up to and including December 13, 2019 are presented separately as the predecessor period (the "Predecessor" period) and results from
Notes:
[1] Adjusted EBITDA excludes, among other items, impairments on long-lived assets, including goodwill, property plant and equipment, right-of-use assets, and inventory. Unlevered free cash flow is calculated as cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets, plus cash paid for interest. Adjusted EBITDA and unlevered free cash flow are non-GAAP measures. Each measure is defined and reconciled to the most directly comparable GAAP measure in the tables below.
[2] In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding stock-based compensation expense. Additional detail for the current and historical periods is provided in the tables below.
Enhancing Liquidity
In conjunction with its emergence from bankruptcy, the Company obtained the
On
In addition, the Company has reduced capital expenditures and is monetizing net working capital, with second-quarter 2020 unlevered free cash flow of
Preserving Margin
In light of current market conditions and the outlook for the coming quarters, Weatherford has significantly expanded its cost savings plan and the Company expects to generate
The Company took aggressive actions to reduce costs during the quarter, and the impact materialized in the Company's second-quarter results. Second-quarter 2020 adjusted EBITDA margins were flat year-on-year, despite a 37% reduction in revenue over the same period, yielding year-on-year adjusted EBITDA decrementals of 10%.
Leveraging Our Portfolio
Weatherford was awarded a five-year deepwater tubular-running service contract for work in the
The Company installed a customer's first annulus gas-lift system ("AGLS") in two wells as part of an offshore operation in
Weatherford deployed pressure pumping services in a high-pressure, high-temperature well for the first time in
Weatherford was awarded a large integrated project with a major drilling company in
Weatherford was named "Contractor of the Year" by Santos for the operational performance the Company delivered on an offshore campaign in
Results by Operating Segment
Western Hemisphere
Successor |
Predecessor |
|||||||||||||||||||
Quarter |
||||||||||||||||||||
Quarter Ended |
Ended |
Variance |
||||||||||||||||||
($ in Millions) |
|
|
|
Seq. |
YoY |
|||||||||||||||
Revenues: |
||||||||||||||||||||
|
$ |
172 |
$ |
341 |
$ |
420 |
(50) |
% |
(59) |
% |
||||||||||
|
138 |
247 |
299 |
(44) |
% |
(54) |
% |
|||||||||||||
Total Revenues |
$ |
310 |
$ |
588 |
$ |
719 |
(47) |
% |
(57) |
% |
||||||||||
Adjusted Segment EBITDA |
$ |
6 |
$ |
76 |
$ |
57 |
(92) |
% |
(89) |
% |
||||||||||
% Margin |
2 |
% |
13 |
% |
8 |
% |
(1,100) |
bps |
(600) |
bps |
Second-quarter 2020 Western Hemisphere revenues of
In
Second-quarter 2020 revenues of
Second-quarter 2020 adjusted segment EBITDA of
Eastern Hemisphere
Successor |
Predecessor |
|||||||||||||||||||
Quarter |
||||||||||||||||||||
Quarter Ended |
Ended |
Variance |
||||||||||||||||||
($ in Millions) |
|
|
|
Seq. |
YoY |
|||||||||||||||
Revenues: |
||||||||||||||||||||
|
$ |
341 |
$ |
403 |
$ |
362 |
(15) |
% |
(6) |
% |
||||||||||
|
170 |
224 |
228 |
(24) |
% |
(25) |
% |
|||||||||||||
Total Revenues |
$ |
511 |
$ |
627 |
$ |
590 |
(19) |
% |
(13) |
% |
||||||||||
Adjusted Segment EBITDA |
$ |
100 |
$ |
127 |
$ |
99 |
(21) |
% |
1 |
% |
||||||||||
% Margin |
20 |
% |
20 |
% |
17 |
% |
(70) |
bps |
280 |
bps |
Second-quarter 2020 Eastern Hemisphere revenues of
In the
Second-quarter 2020 revenues in
Second-quarter 2020 adjusted segment EBITDA of
Impairment and Restructuring Charges
In accordance with accounting guidelines, the Company is required to assess its goodwill, tangible and other intangible assets for impairment if events or changes in circumstances indicate the carrying value of the assets may not be recovered. Due to the challenging industry environment, management determined that impairment indicators existed and conducted an assessment resulting in impairment charges of
Additionally, Weatherford recorded pre-tax restructuring and other charges of
About Weatherford
Weatherford is the leading wellbore and production solutions company. Operating in more than 80 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 19,000 team members and 600 locations, which include service, research and development, training, and manufacturing facilities. Visit https://www.weatherford.com/ for more information or connect on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Conference Call Details
Weatherford will host a conference call on
Listeners can access the conference call online at https://www.weatherford.com/en/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the
A telephonic replay of the conference call will be available until
Contacts
For Investors:
Senior Director, Investor Relations
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Director, Global Media Engagement
+1 832-851-8308
christopher.wailes@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, cost savings plans, 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 Weatherford's management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including the price and price volatility of oil and natural gas; the extent or duration of business interruptions associated with COVID-19 pandemic; general global economic repercussions related to COVID-19 pandemic; the macroeconomic outlook for the oil and gas industry; the duration and severity of the impact of the COVID-19 pandemic on oil and gas demand and commodity prices; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; our ability to generate cash flow from operations to fund our operations; the outcome of any discussions with our lenders and bondholders regarding the new senior secured notes contemplated to be issued or the terms of a potential financing or refinancing transaction and any resulting dilution to our shareholders; the outcome of any discussions with the lenders party to our LC Credit Agreement regarding an amendment thereto; realization of additional cost savings and operational efficiencies; and potential logistical issues and potential non-cash asset impairment charges for long-lived assets, intangible assets or other assets. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended
|
||||||||||||||
Quarterly Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||
($ in Millions, Except Per Share Amounts) |
||||||||||||||
Successor |
Predecessor |
Successor |
||||||||||||
Quarter |
Quarter |
Quarter |
||||||||||||
Ended |
Ended |
Ended |
||||||||||||
|
|
|
||||||||||||
Revenues: |
||||||||||||||
Western Hemisphere |
$ |
310 |
$ |
719 |
$ |
588 |
||||||||
Eastern Hemisphere |
511 |
590 |
627 |
|||||||||||
Total Revenues |
821 |
1,309 |
1,215 |
|||||||||||
Operating Income (Loss): |
||||||||||||||
Western Hemisphere |
(23) |
11 |
29 |
|||||||||||
Eastern Hemisphere |
15 |
28 |
18 |
|||||||||||
Segment Operating Income (Loss) |
(8) |
39 |
47 |
|||||||||||
Corporate Expenses |
(26) |
(32) |
(26) |
|||||||||||
Impairments and Other Charges [1] |
(463) |
(239) |
(843) |
|||||||||||
Gain on Sale of Business |
— |
114 |
— |
|||||||||||
Total Operating Loss |
(497) |
(118) |
(822) |
|||||||||||
Other Income (Expense): |
||||||||||||||
Interest Expense, Net |
(59) |
(160) |
(58) |
|||||||||||
Reorganization Items |
— |
— |
(9) |
|||||||||||
Other Non-Operating Expenses, Net |
(11) |
(1) |
(25) |
|||||||||||
Net Loss Before Income Taxes |
(567) |
(279) |
(914) |
|||||||||||
Income Tax Provision |
(12) |
(33) |
(44) |
|||||||||||
Net Loss |
(579) |
(312) |
(958) |
|||||||||||
Net Income Attributable to Noncontrolling Interests |
2 |
4 |
8 |
|||||||||||
Net Loss Attributable to Weatherford |
$ |
(581) |
$ |
(316) |
$ |
(966) |
||||||||
Loss Per Share Attributable to Weatherford: |
||||||||||||||
Basic and Diluted |
$ |
(8.30) |
$ |
(0.31) |
$ |
(13.80) |
||||||||
Weighted Average Shares Outstanding: |
||||||||||||||
Basic and Diluted |
70 |
1,004 |
70 |
[1] |
See Quarterly Selected Statements of Operations Information Table for details of the impairments and other charges by quarter. |
|
|||||||||
Full Year Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||
($ in Millions, Except Per Share Amounts) |
|||||||||
Successor |
Predecessor |
||||||||
Six Months |
Six Months |
||||||||
Ended |
Ended |
||||||||
|
|
||||||||
Revenues: |
|||||||||
Western Hemisphere |
$ |
898 |
$ |
1,445 |
|||||
Eastern Hemisphere |
1,138 |
1,210 |
|||||||
Total Revenues |
2,036 |
2,655 |
|||||||
Operating Income (Loss): |
|||||||||
Western Hemisphere |
6 |
20 |
|||||||
Eastern Hemisphere |
33 |
48 |
|||||||
Segment Operating Income |
39 |
68 |
|||||||
Corporate Expenses |
(52) |
(64) |
|||||||
Impairments and Other Charges [1] |
(1,306) |
(535) |
|||||||
Gain on Sale of Business |
— |
112 |
|||||||
Total Operating Loss |
(1,319) |
(419) |
|||||||
Other Income (Expense): |
|||||||||
Interest Expense, Net |
(117) |
(315) |
|||||||
Reorganization Items |
(9) |
— |
|||||||
Other Non-Operating Expenses, Net |
(36) |
(10) |
|||||||
Net Loss Before Income Taxes |
(1,481) |
(744) |
|||||||
Income Tax Provision |
(56) |
(45) |
|||||||
Net Loss |
(1,537) |
(789) |
|||||||
Net Income Attributable to Noncontrolling Interests |
10 |
8 |
|||||||
Net Loss Attributable to Weatherford |
$ |
(1,547) |
$ |
(797) |
|||||
Loss Per Share Attributable to Weatherford: |
|||||||||
Basic and Diluted |
$ |
(22.10) |
$ |
(0.79) |
|||||
Weighted Average Shares Outstanding: |
|||||||||
Basic and Diluted |
70 |
1,003 |
[1] |
See Quarterly Selected Statements of Operations Information Table for details of the impairments and other charges by quarter. |
|
|||||||
Selected Balance Sheet Data (Unaudited) |
|||||||
($ in Millions) |
|||||||
|
|
||||||
Assets: |
|||||||
Cash and Cash Equivalents |
$ |
680 |
$ |
618 |
|||
Restricted Cash |
76 |
182 |
|||||
Accounts Receivable, Net |
927 |
1,241 |
|||||
Inventories, Net |
862 |
972 |
|||||
Property, Plant and Equipment, Net |
1,367 |
2,122 |
|||||
|
— |
239 |
|||||
Intangibles, Net |
875 |
1,114 |
|||||
Liabilities: |
|||||||
Accounts Payable |
384 |
585 |
|||||
Short-term Borrowings and Current Portion of Long-term Debt |
32 |
13 |
|||||
Long-term Debt |
2,148 |
2,151 |
|||||
Shareholders' Equity: |
|||||||
Total Shareholders' Equity |
1,305 |
2,916 |
|||||
Components of Net Debt [1]: |
|||||||
Short-term Borrowings and Current Portion of Long-term Debt |
32 |
13 |
|||||
Long-term Debt |
2,148 |
2,151 |
|||||
Less: Cash and Cash Equivalents |
680 |
618 |
|||||
Less: Restricted Cash |
76 |
182 |
|||||
Net Debt [1] |
$ |
1,424 |
$ |
1,364 |
[1] |
Net debt is a non-GAAP measure calculated as total short- and long-term debt less cash and cash equivalents and restricted cash. |
|
||||||||||||||
Condensed Consolidated Statement of Cash Flows (Unaudited) |
||||||||||||||
($ in Millions) |
||||||||||||||
Successor |
Predecessor |
Successor |
||||||||||||
Six Months |
Six Months |
Three Months |
||||||||||||
Ended |
Ended |
Ended |
||||||||||||
|
|
|
||||||||||||
Cash Flows From Operating Activities: |
||||||||||||||
Net Loss |
$ |
(1,537) |
$ |
(789) |
$ |
(579) |
||||||||
Adjustments to Reconcile Net Income (Loss) to |
||||||||||||||
Depreciation and Amortization |
270 |
239 |
113 |
|||||||||||
Goodwill Impairment |
239 |
331 |
72 |
|||||||||||
Long-Lived Asset Impairments and Other |
967 |
78 |
319 |
|||||||||||
Gain on Sale of Business |
— |
(112) |
— |
|||||||||||
Working Capital [1] |
47 |
(174) |
130 |
|||||||||||
Other Operating Activities |
75 |
(51) |
(24) |
|||||||||||
Total Cash Flows Provided by (Used in) Operating Activities |
61 |
(478) |
31 |
|||||||||||
Cash Flows From Investing Activities: |
||||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(73) |
(114) |
(35) |
|||||||||||
Proceeds from Disposition of Assets |
8 |
45 |
2 |
|||||||||||
Proceeds from Disposition of Businesses, Net |
— |
301 |
— |
|||||||||||
Other Investing Activities |
(21) |
(9) |
(6) |
|||||||||||
Net Cash Provided by (Used in) Investing Activities |
(86) |
223 |
(39) |
|||||||||||
Cash Flows From Financing Activities: |
||||||||||||||
Repayments of Long-term Debt |
(5) |
(17) |
(3) |
|||||||||||
Borrowings (Repayments) of Short-term Debt, Net |
7 |
298 |
10 |
|||||||||||
Other Financing Activities, Net |
(14) |
(12) |
(11) |
|||||||||||
Net Cash Provided by (Used in) Financing Activities |
(12) |
269 |
(4) |
|||||||||||
Free Cash Flow [2]: |
||||||||||||||
Cash Flows Provided by (Used in) Operating Activities |
$ |
61 |
$ |
(478) |
$ |
31 |
||||||||
Capital Expenditures for Property, Plant and Equipment |
(73) |
(114) |
(35) |
|||||||||||
Proceeds from Disposition of Assets |
8 |
45 |
2 |
|||||||||||
Free Cash Flow [2] [3] |
$ |
(4) |
$ |
(547) |
$ |
(2) |
[1] |
Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
[2] |
Free cash flow is a non-GAAP measure calculated as cash flows provided by (used in) operating activities, less capital expenditures for property, plant and equipment plus proceeds from the disposition of assets. Management believes free cash flow is useful to understand liquidity and should be considered in addition to but not substitute cash flows provided by (used in) operating activities. |
[3] |
Predecessor Free Cash Flow for the second quarter of 2019 was negative $265 million and was comprised of cash used in operating activities of $229 million less capital expenditures of $55 million plus proceeds from the disposition of assets of $19 million. |
|
|||||||||||||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) |
|||||||||||||||||||||
($ in Millions) |
|||||||||||||||||||||
Successor |
Predecessor |
Successor |
Predecessor |
||||||||||||||||||
Quarter |
Six Months |
Six Months |
|||||||||||||||||||
Quarter Ended |
Ended |
Ended |
Ended |
||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
Revenues |
|||||||||||||||||||||
Western Hemisphere |
$ |
310 |
$ |
588 |
$ |
719 |
898 |
$ |
1,445 |
||||||||||||
Eastern Hemisphere |
511 |
627 |
590 |
1,138 |
1,210 |
||||||||||||||||
Total Revenues |
$ |
821 |
$ |
1,215 |
$ |
1,309 |
$ |
2,036 |
$ |
2,655 |
|||||||||||
Adjusted EBITDA[1] |
|||||||||||||||||||||
Western Hemisphere |
$ |
6 |
$ |
76 |
$ |
57 |
$ |
82 |
$ |
115 |
|||||||||||
Eastern Hemisphere |
100 |
127 |
99 |
227 |
192 |
||||||||||||||||
Adjusted Segment EBITDA |
106 |
203 |
156 |
309 |
307 |
||||||||||||||||
Corporate and Other |
(27) |
(25) |
(27) |
(52) |
(50) |
||||||||||||||||
Total Adjusted EBITDA |
$ |
79 |
$ |
178 |
$ |
129 |
257 |
257 |
|||||||||||||
Operating Income (Loss) |
|||||||||||||||||||||
Western Hemisphere |
$ |
(23) |
$ |
29 |
$ |
11 |
6 |
20 |
|||||||||||||
Eastern Hemisphere |
15 |
18 |
28 |
33 |
48 |
||||||||||||||||
Segment Operating Income |
(8) |
47 |
39 |
39 |
68 |
||||||||||||||||
Corporate Expenses |
(26) |
(26) |
(32) |
(52) |
(64) |
||||||||||||||||
Long-lived Assets Impairment [2] |
(178) |
(640) |
(13) |
(818) |
(20) |
||||||||||||||||
Inventory Charges [3] |
(134) |
— |
— |
(134) |
— |
||||||||||||||||
Goodwill Impairment [2] |
(72) |
(167) |
(102) |
(239) |
(331) |
||||||||||||||||
Restructuring and Other Charges [4] |
(79) |
(36) |
(48) |
(115) |
(98) |
||||||||||||||||
Prepetition Charges |
— |
— |
(76) |
— |
(86) |
||||||||||||||||
Gain on Sale of Business |
— |
— |
114 |
— |
112 |
||||||||||||||||
Total Operating Loss |
$ |
(497) |
$ |
(822) |
$ |
(118) |
$ |
(1,319) |
$ |
(419) |
|||||||||||
Depreciation and Amortization |
|||||||||||||||||||||
Western Hemisphere |
$ |
29 |
47 |
$ |
45 |
$ |
76 |
$ |
93 |
||||||||||||
Eastern Hemisphere |
85 |
109 |
70 |
194 |
142 |
||||||||||||||||
Corporate |
(1) |
1 |
1 |
— |
4 |
||||||||||||||||
Total Depreciation and Amortization |
$ |
113 |
157 |
$ |
116 |
$ |
270 |
$ |
239 |
[1] |
In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of stock-based compensation. Historical periods have been restated to reflect this methodology. |
[2] |
Represents an impairment after a fair value assessment of our business and assets for the periods presented. |
[3] |
Represents inventory charges for the second quarter of 2020 related to the decline in demand domestically and internationally. |
[4] |
Represents primarily restructuring, facility consolidation and severance costs and includes certain other charges for the periods presented. |
|
||||||||||||||||||||||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) - Product Line Revenues |
||||||||||||||||||||||||||||||
($ in Millions) |
||||||||||||||||||||||||||||||
Successor |
Predecessor |
Predecessor |
||||||||||||||||||||||||||||
Period From |
Period From |
Non-GAAP |
||||||||||||||||||||||||||||
Quarter Ended |
|
|
Combined |
Quarter Ended |
||||||||||||||||||||||||||
|
|
|
|
Results |
|
|
|
|||||||||||||||||||||||
Product Line [1] Revenues |
||||||||||||||||||||||||||||||
Production and Completions |
$ |
405 |
$ |
599 |
$ |
136 |
$ |
469 |
$ |
605 |
$ |
613 |
$ |
636 |
$ |
641 |
||||||||||||||
Drilling, Evaluation and Intervention |
416 |
616 |
125 |
516 |
641 |
701 |
673 |
705 |
||||||||||||||||||||||
Total Product Line Revenues |
$ |
821 |
$ |
1,215 |
$ |
261 |
$ |
985 |
$ |
1,246 |
$ |
1,314 |
$ |
1,309 |
$ |
1,346 |
||||||||||||||
[1] |
During the second quarter of 2020 to support the streamlining and realignment of the businesses, we combined our prior reported four product lines into two product lines. Our two primary product lines are as follows: (1) Production and Completions and (2) Drilling, Evaluation and Intervention. Production and Completions includes Artificial Lift Systems, Stimulation and Testing and Production Services, Completion Systems, Liner Systems and Cementing Products. Drilling, Evaluation and Intervention includes Drilling Services, Managed Pressure Drilling, Wireline Services, Tubular Running Services, Intervention Services, and Drilling Tools and Rental Equipment. |
We report our financial results in accordance with
|
||||||||||||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) |
||||||||||||||||||||
($ in Millions, Except Per Share Amounts) |
||||||||||||||||||||
Successor |
Predecessor |
Successor |
Predecessor |
|||||||||||||||||
Quarter |
Six Months |
Six Months |
||||||||||||||||||
Quarter Ended |
Ended |
Ended |
Ended |
|||||||||||||||||
|
|
|
|
|
||||||||||||||||
Operating Income (Loss): |
||||||||||||||||||||
GAAP Operating Loss |
$ |
(497) |
$ |
(822) |
$ |
(118) |
$ |
(1,319) |
$ |
(419) |
||||||||||
Impairments and Other Charges |
463 |
843 |
239 |
1,306 |
535 |
|||||||||||||||
Gain on Sale of Business |
— |
— |
(114) |
— |
(112) |
|||||||||||||||
Operating Non-GAAP Adjustments |
463 |
843 |
125 |
1,306 |
423 |
|||||||||||||||
Non-GAAP Adjusted Operating Income (Loss) |
$ |
(34) |
$ |
21 |
$ |
7 |
$ |
(13) |
$ |
4 |
||||||||||
Loss Before Income Taxes: |
||||||||||||||||||||
GAAP Loss Before Income Taxes |
$ |
(567) |
$ |
(914) |
$ |
(279) |
$ |
(1,481) |
$ |
(744) |
||||||||||
Operating Non-GAAP Adjustments |
463 |
843 |
125 |
1,306 |
423 |
|||||||||||||||
Reorganization Items |
— |
9 |
— |
9 |
— |
|||||||||||||||
Non-GAAP Adjustments Before Taxes |
463 |
852 |
125 |
1,315 |
423 |
|||||||||||||||
Non-GAAP Loss Before Income Taxes |
$ |
(104) |
$ |
(62) |
$ |
(154) |
$ |
(166) |
$ |
(321) |
||||||||||
Provision for Income Taxes: |
||||||||||||||||||||
GAAP Provision for Income Taxes |
$ |
(12) |
$ |
(44) |
$ |
(33) |
$ |
(56) |
$ |
(45) |
||||||||||
Tax Effect on Non-GAAP Adjustments |
(2) |
(7) |
2 |
(9) |
(6) |
|||||||||||||||
Non-GAAP Provision for Income Taxes |
$ |
(14) |
$ |
(51) |
$ |
(31) |
$ |
(65) |
$ |
(51) |
||||||||||
Net Loss Attributable to Weatherford: |
||||||||||||||||||||
GAAP Net Loss |
$ |
(581) |
$ |
(966) |
$ |
(316) |
$ |
(1,547) |
$ |
(797) |
||||||||||
Non-GAAP Adjustments, net of tax |
461 |
845 |
127 |
1,306 |
417 |
|||||||||||||||
Non-GAAP Net Loss |
$ |
(120) |
$ |
(121) |
$ |
(189) |
$ |
(241) |
$ |
(380) |
||||||||||
Diluted Loss Per Share Attributable to Weatherford: |
||||||||||||||||||||
GAAP Diluted Loss per Share |
$ |
(8.30) |
$ |
(13.80) |
$ |
(0.31) |
$ |
(22.10) |
$ |
(0.79) |
||||||||||
Non-GAAP Adjustments, net of tax |
6.59 |
12.07 |
0.12 |
18.66 |
0.41 |
|||||||||||||||
Non-GAAP Diluted Loss per Share |
$ |
(1.71) |
$ |
(1.73) |
$ |
(0.19) |
$ |
(3.44) |
$ |
(0.38) |
|
||||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA (Unaudited) |
||||||||||||
($ in Millions) |
||||||||||||
Successor |
Predecessor |
|||||||||||
Quarter |
||||||||||||
Quarter Ended |
Ended |
|||||||||||
|
|
|
||||||||||
Net Loss Attributable to Weatherford |
$ |
(581) |
$ |
(966) |
$ |
(316) |
||||||
Net Income Attributable to Noncontrolling Interests |
2 |
8 |
4 |
|||||||||
Net Loss |
(579) |
(958) |
(312) |
|||||||||
Interest Expense, Net |
59 |
58 |
160 |
|||||||||
Income Tax Provision |
12 |
44 |
33 |
|||||||||
Depreciation and Amortization |
113 |
157 |
116 |
|||||||||
EBITDA |
(395) |
(699) |
(3) |
|||||||||
Other (Income) Expense Adjustments: |
||||||||||||
Reorganization Items |
— |
9 |
— |
|||||||||
Impairments and Other Charges |
463 |
843 |
239 |
|||||||||
Gain on Sale of Business |
— |
— |
(114) |
|||||||||
Stock-Based Compensation |
— |
— |
6 |
|||||||||
Other Non-Operating Expense, Net |
11 |
25 |
1 |
|||||||||
Adjusted EBITDA [1] |
$ |
79 |
$ |
178 |
$ |
129 |
[1] |
In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of stock-based compensation. Historical periods have been restated to reflect this methodology. See continuation of Adjusted EBITDA to Unlevered Free Cash Flow and Free Cash Flow in the last table. |
|
|||||||||
Full Year Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA (Unaudited) |
|||||||||
($ in Millions) |
|||||||||
Successor |
Predecessor |
||||||||
Six Months |
Six Months |
||||||||
Ended |
Ended |
||||||||
|
|
||||||||
Net Loss Attributable to Weatherford |
$ |
(1,547) |
$ |
(797) |
|||||
Net Income Attributable to Noncontrolling Interests |
10 |
8 |
|||||||
Net Loss |
(1,537) |
(789) |
|||||||
Interest Expense, Net |
117 |
315 |
|||||||
Income Tax Provision |
56 |
45 |
|||||||
Depreciation and Amortization |
270 |
239 |
|||||||
EBITDA |
(1,094) |
(190) |
|||||||
Other (Income) Expense Adjustments: |
|||||||||
Reorganization Items |
9 |
— |
|||||||
Impairments and Other Charges |
1,306 |
535 |
|||||||
Gain on Sale of Business |
— |
(112) |
|||||||
Stock-Based Compensation |
— |
14 |
|||||||
Other Non-Operating Expense, Net |
36 |
10 |
|||||||
Adjusted EBITDA [1] |
$ |
257 |
$ |
257 |
[1] |
In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of stock-based compensation. Historical periods have been restated to reflect this methodology. See continuation of Adjusted EBITDA to Unlevered Free Cash Flow and Free Cash Flow in the last table. |
|
||||||||||||||||||||||
Quarterly and Full Year GAAP to Non-GAAP Financial Measures (Continued from EBITDA Tables) |
||||||||||||||||||||||
Adjusted EBITDA to Unlevered Free Cash Flow and Free Cash Flow (Unaudited) |
||||||||||||||||||||||
($ in Millions) |
||||||||||||||||||||||
Successor |
Predecessor |
Successor |
Predecessor |
|||||||||||||||||||
Quarter |
Six Months |
Six Months |
||||||||||||||||||||
Quarter Ended |
Ended |
Ended |
Ended |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||||
Adjusted EBITDA[1] |
$ |
79 |
$ |
178 |
$ |
129 |
$ |
257 |
$ |
257 |
||||||||||||
Cash From (Used) for Working Capital |
130 |
(83) |
(127) |
47 |
(174) |
|||||||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(35) |
(38) |
(55) |
(73) |
(114) |
|||||||||||||||||
Cash Paid for Taxes |
(19) |
(21) |
(16) |
(40) |
(51) |
|||||||||||||||||
Cash Paid for Severance and Restructuring |
(58) |
(17) |
(18) |
(75) |
(52) |
|||||||||||||||||
Other |
11 |
(19) |
(111) |
(8) |
(189) |
|||||||||||||||||
Unlevered Free Cash Flow |
$ |
108 |
$ |
— |
$ |
(198) |
$ |
108 |
$ |
(323) |
||||||||||||
Cash Paid for Interest |
(110) |
(2) |
(67) |
(112) |
(224) |
|||||||||||||||||
Free Cash Flow[2] |
$ |
(2) |
$ |
(2) |
$ |
(265) |
$ |
(4) |
$ |
(547) |
[1] |
In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of stock-based compensation. Historical periods have been restated to reflect this methodology. |
[2] |
Free cash flow is a non-GAAP measure calculated as cash flows provided by (used in) operating activities, less capital expenditures for property, plant and equipment plus proceeds from the disposition of assets. Management believes free cash flow is useful to understand liquidity and should be considered in addition to but not substitute cash flows provided by (used in) operating activities. |
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