- Revenues of
- Operating loss of
- Cash flows from operations of
- Total cash of
- Hosted 15th annual
Revenues for the third quarter of 2020 were
On a non-GAAP basis:
"I am pleased with the organization's continued focus on delivering operational excellence, while also implementing structural improvements to minimize the impact of activity reductions and improve the Company's operating efficiency. We delivered sequential revenue growth of 2% in
"While our market outlook remains cautious, we are encouraged by the fact that we have started to see activity stabilize in certain geographies and a gradual path to recovery in others. We have extended our runway for capitalizing on new opportunities and we will be working as a team to refine the Company's strategy over the coming months, focusing on leveraging our sustainable competitive advantages in order to achieve our objective. I look forward to updating you on our plans and outlook for 2021 early next year."
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
Notes:
[1] Includes cash and cash equivalents and restricted cash.
[2] 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.
[3] 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.
Leveraging Our Portfolio
The Weatherford team in
Weatherford was awarded a two-year contract by a customer in the
Weatherford was also awarded the first managed pressure drilling (MPD) contract by a customer in the
The Company has and will continue to deploy its innovative solutions to meet customer's needs, including:
Expanding Our Margins
The Company has implemented actions to exceed its previously-announced cost savings plan, which is expected to generate over
The impact of the Company's aggressive actions are materializing in our results, with third-quarter 2020 adjusted EBITDA margins increasing 328 basis points sequentially. Compared to the third quarter of 2019, adjusted EBITDA margins were down 72 basis points despite a 39% reduction in revenue over the same period, yielding year-on-year adjusted EBITDA decrementals of 15% (with decrementals calculated as the change in adjusted EBITDA divided by the change in revenues).
Enhancing Our Liquidity
The Company's liquidity position was enhanced during the quarter through both external and internal actions, with total cash increasing by
On
These transactions meaningfully enhanced the Company's financial strength, with the proceeds of the Senior Secured Notes being used to terminate the ABL Credit Agreement, increase liquidity and support the issuance of letters of credit. In addition, by terminating the ABL Credit Agreement, Weatherford has eliminated the risk of a potential breach of the associated financial covenants. As a result, the Company has alleviated the previously disclosed substantial doubt of our ability to continue as a going concern.
Third-quarter 2020 unlevered free cash flow of
Results by Operating Segment
Western Hemisphere
Successor |
Predecessor |
|||||||||||||||||||
Quarter |
||||||||||||||||||||
Quarter Ended |
Ended |
Variance |
||||||||||||||||||
($ in Millions) |
|
|
|
Seq. |
YoY |
|||||||||||||||
Revenues: |
||||||||||||||||||||
|
$ |
175 |
$ |
172 |
$ |
383 |
2 |
% |
(54) |
% |
||||||||||
|
141 |
138 |
292 |
2 |
% |
(52) |
% |
|||||||||||||
Total Revenues |
$ |
316 |
$ |
310 |
$ |
675 |
2 |
% |
(53) |
% |
||||||||||
Adjusted Segment EBITDA |
$ |
29 |
$ |
6 |
$ |
60 |
383 |
% |
(52) |
% |
||||||||||
% Margin |
9 |
% |
2 |
% |
9 |
% |
730 |
bps |
30 |
bps |
Third-quarter 2020 Western Hemisphere revenues of
In
Third-quarter 2020 revenues of
Third-quarter 2020 adjusted segment EBITDA of
Eastern Hemisphere
Successor |
Predecessor |
|||||||||||||||||||
Quarter |
||||||||||||||||||||
Quarter Ended |
Ended |
Variance |
||||||||||||||||||
($ in Millions) |
|
|
|
Seq. |
YoY |
|||||||||||||||
Revenues: |
||||||||||||||||||||
|
$ |
319 |
$ |
341 |
$ |
377 |
(6) |
% |
(15) |
% |
||||||||||
|
172 |
170 |
262 |
1 |
% |
(34) |
% |
|||||||||||||
Total Revenues |
$ |
491 |
$ |
511 |
$ |
639 |
(4) |
% |
(23) |
% |
||||||||||
Adjusted Segment EBITDA |
$ |
104 |
$ |
100 |
$ |
145 |
4 |
% |
(28) |
% |
||||||||||
% Margin |
21 |
% |
20 |
% |
23 |
% |
160 |
bps |
(150) |
bps |
Third-quarter 2020 Eastern Hemisphere revenues of
In the
Third-quarter 2020 revenues in
Third-quarter 2020 adjusted segment EBITDA of
Restructuring Charges
Weatherford recorded restructuring and other charges of
About Weatherford
Weatherford is a 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 18,000 team members and approximately 400 operating locations, including manufacturing, research and development, service, and training 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 are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company's website.
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 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 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, demand for oil and gas and depressed commodity prices associated with COVID-19 pandemic; general global economic repercussions related to COVID-19 pandemic; the macroeconomic outlook for the oil and gas industry; and 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; and the realization of additional cost savings and operational efficiencies. 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 |
||||||||||
Quarter |
|||||||||||
Quarter Ended |
Ended |
||||||||||
|
|
|
|||||||||
Revenues: |
|||||||||||
Western Hemisphere |
$ |
316 |
$ |
310 |
$ |
675 |
|||||
Eastern Hemisphere |
491 |
511 |
639 |
||||||||
Total Revenues |
807 |
821 |
1,314 |
||||||||
Operating Income (Loss): |
|||||||||||
Western Hemisphere |
(2) |
(23) |
15 |
||||||||
Eastern Hemisphere |
5 |
15 |
56 |
||||||||
Segment Operating Income (Loss) |
3 |
(8) |
71 |
||||||||
Corporate Expenses |
(28) |
(26) |
(31) |
||||||||
Impairments and Other Charges [1] |
(47) |
(463) |
(494) |
||||||||
Gain on Sale of Operational Assets |
12 |
— |
15 |
||||||||
Loss on Sale of Business |
— |
— |
(8) |
||||||||
Total Operating Loss |
(60) |
(497) |
(447) |
||||||||
Other Income (Expense): |
|||||||||||
Interest Expense, Net |
(79) |
(59) |
(26) |
||||||||
Reorganization Items |
— |
— |
(303) |
||||||||
Other Non-Operating Expenses, Net |
(20) |
(11) |
(8) |
||||||||
Net Loss Before Income Taxes |
(159) |
(567) |
(784) |
||||||||
Income Tax Provision |
(8) |
(12) |
(31) |
||||||||
Net Loss |
(167) |
(579) |
(815) |
||||||||
Net Income Attributable to Noncontrolling Interests |
7 |
2 |
6 |
||||||||
Net Loss Attributable to Weatherford |
$ |
(174) |
$ |
(581) |
$ |
(821) |
|||||
Basic and Diluted Loss Per Share |
$ |
(2.48) |
$ |
(8.30) |
$ |
(0.82) |
|||||
Basic and Diluted Weighted Average Shares Outstanding |
70 |
70 |
1,004 |
[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 |
||||||||
Nine Months |
Nine Months |
||||||||
Ended |
Ended |
||||||||
|
|
||||||||
Revenues: |
|||||||||
Western Hemisphere |
$ |
1,214 |
$ |
2,120 |
|||||
Eastern Hemisphere |
1,629 |
1,849 |
|||||||
Total Revenues |
2,843 |
3,969 |
|||||||
Operating Income (Loss): |
|||||||||
Western Hemisphere |
4 |
35 |
|||||||
Eastern Hemisphere |
38 |
104 |
|||||||
Segment Operating Income |
42 |
139 |
|||||||
Corporate Expenses |
(80) |
(95) |
|||||||
Impairments and Other Charges [1] |
(1,353) |
(1,029) |
|||||||
Gain on Sale of Operational Assets |
12 |
15 |
|||||||
Gain on Sale of Business |
— |
104 |
|||||||
Total Operating Loss |
(1,379) |
(866) |
|||||||
Other Income (Expense): |
|||||||||
Interest Expense, Net |
(196) |
(341) |
|||||||
Reorganization Items |
(9) |
(303) |
|||||||
Other Non-Operating Expenses, Net |
(56) |
(18) |
|||||||
Net Loss Before Income Taxes |
(1,640) |
(1,528) |
|||||||
Income Tax Provision |
(64) |
(76) |
|||||||
Net Loss |
(1,704) |
(1,604) |
|||||||
Net Income Attributable to Noncontrolling Interests |
17 |
14 |
|||||||
Net Loss Attributable to Weatherford |
$ |
(1,721) |
$ |
(1,618) |
|||||
Basic and Diluted Loss Per Share |
$ |
(24.58) |
$ |
(1.61) |
|||||
Basic and Diluted Weighted Average Shares Outstanding |
70 |
1,004 |
[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 |
$ |
1,121 |
$ |
618 |
|||
Restricted Cash |
172 |
182 |
|||||
Accounts Receivable, Net |
835 |
1,241 |
|||||
Inventories, Net |
811 |
972 |
|||||
Property, Plant and Equipment, Net |
1,304 |
2,122 |
|||||
|
— |
239 |
|||||
Intangibles, Net |
841 |
1,114 |
|||||
Liabilities: |
|||||||
Accounts Payable |
332 |
585 |
|||||
Short-term Borrowings and Current Portion of Long-term Debt |
14 |
13 |
|||||
Long-term Debt |
2,602 |
2,151 |
|||||
Shareholders' Equity: |
|||||||
Total Shareholders' Equity |
1,123 |
2,916 |
|||||
Components of Net Debt [1]: |
|||||||
Short-term Borrowings and Current Portion of Long-term Debt |
14 |
13 |
|||||
Long-term Debt |
2,602 |
2,151 |
|||||
Less: Cash and Cash Equivalents |
1,121 |
618 |
|||||
Less: Restricted Cash |
172 |
182 |
|||||
Net Debt [1] |
$ |
1,323 |
$ |
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 |
||||||||||||
Nine Months |
Nine Months |
Three Months |
||||||||||||
Ended |
Ended |
Ended |
||||||||||||
|
|
|
||||||||||||
Net Loss |
$ |
(1,704) |
$ |
(1,604) |
$ |
(167) |
||||||||
Adjustments to Reconcile Net Income (Loss) to |
||||||||||||||
Depreciation and Amortization |
387 |
357 |
117 |
|||||||||||
Goodwill Impairment |
239 |
730 |
— |
|||||||||||
Impairments and Other Charges [1] |
1,114 |
213 |
47 |
|||||||||||
Reorganization Related Charges |
— |
244 |
— |
|||||||||||
Gain on Sale of Business |
— |
(104) |
— |
|||||||||||
Working Capital [2] |
106 |
(404) |
59 |
|||||||||||
Other Operating Activities |
46 |
(111) |
71 |
|||||||||||
Total Cash Flows Provided by (Used in) Operating Activities |
188 |
(679) |
127 |
|||||||||||
Cash Flows From Investing Activities: |
||||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(100) |
(177) |
(27) |
|||||||||||
Proceeds from Disposition of Assets |
13 |
80 |
5 |
|||||||||||
Proceeds from Disposition of Businesses, Net |
1 |
319 |
— |
|||||||||||
Other Investing Activities |
(3) |
(12) |
19 |
|||||||||||
Net Cash Provided by (Used in) Investing Activities |
(89) |
210 |
(3) |
|||||||||||
Cash Flows From Financing Activities: |
||||||||||||||
Borrowings of Long-term Debt |
457 |
— |
457 |
|||||||||||
Borrowings (Repayments) of Debtor in Possession Credit Agreement, |
— |
1,386 |
— |
|||||||||||
Debtor in Possession Financing Fees and Payments on Backstop |
— |
(110) |
— |
|||||||||||
Repayments of Long-term Debt |
(7) |
(317) |
(2) |
|||||||||||
Borrowings (Repayments) of Short-term Debt, Net |
(22) |
(25) |
(29) |
|||||||||||
Other Financing Activities, Net |
(28) |
(17) |
(14) |
|||||||||||
Net Cash Provided by (Used in) Financing Activities |
400 |
917 |
412 |
|||||||||||
Free Cash Flow [3] [4]: |
||||||||||||||
Cash Flows Provided by (Used in) Operating Activities |
$ |
188 |
$ |
(679) |
$ |
127 |
||||||||
Capital Expenditures for Property, Plant and Equipment |
(100) |
(177) |
(27) |
|||||||||||
Proceeds from Disposition of Assets |
13 |
80 |
5 |
|||||||||||
Free Cash Flow [3] [4] |
$ |
101 |
$ |
(776) |
$ |
105 |
[1] |
Impairments and other charges reflects the sum of long-lived asset impairments, restructuring, inventory and other operating charges. |
[2] |
Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
[3] |
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. |
[4] |
Predecessor Free Cash Flow for the third quarter of 2019 was negative |
|
|||||||||||||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) |
|||||||||||||||||||||
($ in Millions) |
|||||||||||||||||||||
Successor |
Predecessor |
Successor |
Predecessor |
||||||||||||||||||
Quarter |
Nine Months |
Nine Months |
|||||||||||||||||||
Quarter Ended |
Ended |
Ended |
Ended |
||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
Revenues |
|||||||||||||||||||||
Western Hemisphere |
$ |
316 |
$ |
310 |
$ |
675 |
1,214 |
$ |
2,120 |
||||||||||||
Eastern Hemisphere |
491 |
511 |
639 |
1,629 |
1,849 |
||||||||||||||||
Total Revenues |
$ |
807 |
$ |
821 |
$ |
1,314 |
$ |
2,843 |
$ |
3,969 |
|||||||||||
Adjusted EBITDA[1] |
|||||||||||||||||||||
Western Hemisphere |
$ |
29 |
$ |
6 |
$ |
60 |
$ |
111 |
$ |
175 |
|||||||||||
Eastern Hemisphere |
104 |
100 |
145 |
331 |
337 |
||||||||||||||||
Adjusted Segment EBITDA |
133 |
106 |
205 |
442 |
512 |
||||||||||||||||
Corporate and Other |
(29) |
(27) |
(26) |
(81) |
(76) |
||||||||||||||||
Total Adjusted EBITDA |
$ |
104 |
$ |
79 |
$ |
179 |
361 |
436 |
|||||||||||||
Operating Income (Loss) |
|||||||||||||||||||||
Western Hemisphere |
$ |
(2) |
$ |
(23) |
$ |
15 |
4 |
35 |
|||||||||||||
Eastern Hemisphere |
5 |
15 |
56 |
38 |
104 |
||||||||||||||||
Segment Operating Income |
3 |
(8) |
71 |
42 |
139 |
||||||||||||||||
Corporate Expenses |
(28) |
(26) |
(31) |
(80) |
(95) |
||||||||||||||||
Long-lived Asset Impairments |
— |
(178) |
— |
(818) |
(20) |
||||||||||||||||
Inventory Charges |
— |
(134) |
— |
(134) |
— |
||||||||||||||||
Goodwill Impairment |
— |
(72) |
(399) |
(239) |
(730) |
||||||||||||||||
Restructuring and Other Charges |
(47) |
(79) |
(95) |
(162) |
(193) |
||||||||||||||||
Prepetition Charges |
— |
— |
— |
— |
(86) |
||||||||||||||||
Gain on Sale of Operational Assets |
12 |
— |
15 |
12 |
15 |
||||||||||||||||
Gain (Loss) on Sale of Business |
— |
— |
(8) |
— |
104 |
||||||||||||||||
Total Operating Loss |
$ |
(60) |
$ |
(497) |
$ |
(447) |
$ |
(1,379) |
$ |
(866) |
|||||||||||
Depreciation and Amortization |
|||||||||||||||||||||
Western Hemisphere |
$ |
31 |
29 |
$ |
44 |
$ |
107 |
$ |
137 |
||||||||||||
Eastern Hemisphere |
87 |
85 |
73 |
281 |
215 |
||||||||||||||||
Corporate |
(1) |
(1) |
1 |
(1) |
5 |
||||||||||||||||
Total Depreciation and Amortization |
$ |
117 |
113 |
$ |
118 |
$ |
387 |
$ |
357 |
[1] |
In the first quarter of 2020 the Company began reporting adjusted EBITDA excluding the burden of stock-based compensation. We had |
|
|||||||||||||||||||||
Quarterly Selected Statements of Operations Information (Unaudited) - Product Line Revenues |
|||||||||||||||||||||
($ in Millions) |
|||||||||||||||||||||
Successor |
Predecessor |
Successor |
Predecessor |
||||||||||||||||||
Quarter |
Nine Months |
Nine Months |
|||||||||||||||||||
Quarter Ended |
Ended |
Ended |
Ended |
||||||||||||||||||
Product Line [1] Revenues |
|
|
|
|
|
||||||||||||||||
Product Line Revenue by Hemisphere: |
|||||||||||||||||||||
Production and Completions |
$ |
170 |
$ |
165 |
$ |
348 |
$ |
632 |
$ |
1,098 |
|||||||||||
Drilling, Evaluation and Intervention |
146 |
145 |
327 |
582 |
1,022 |
||||||||||||||||
Western Hemisphere |
$ |
316 |
$ |
310 |
$ |
675 |
$ |
1,214 |
$ |
2,120 |
|||||||||||
Production and Completions |
$ |
241 |
$ |
240 |
$ |
265 |
$ |
783 |
$ |
792 |
|||||||||||
Drilling, Evaluation and Intervention |
250 |
271 |
374 |
846 |
1,057 |
||||||||||||||||
Eastern Hemisphere |
$ |
491 |
$ |
511 |
$ |
639 |
$ |
1,629 |
$ |
1,849 |
|||||||||||
Total Production and Completions |
$ |
411 |
$ |
405 |
$ |
613 |
$ |
1,415 |
$ |
1,890 |
|||||||||||
Total Drilling, Evaluation and Intervention |
396 |
416 |
701 |
1,428 |
2,079 |
||||||||||||||||
Total Product Line Revenues |
$ |
807 |
$ |
821 |
$ |
1,314 |
$ |
2,843 |
$ |
3,969 |
[1] |
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 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 |
Nine Months |
Nine Months |
||||||||||||||||||
Quarter Ended |
Ended |
Ended |
Ended |
|||||||||||||||||
|
|
|
|
|
||||||||||||||||
Operating Income (Loss): |
||||||||||||||||||||
GAAP Operating Loss |
$ |
(60) |
$ |
(497) |
$ |
(447) |
$ |
(1,379) |
$ |
(866) |
||||||||||
Impairments and Other Charges |
47 |
463 |
494 |
1,353 |
1,029 |
|||||||||||||||
(Gain) on Sale of Operational Assets |
(12) |
— |
(15) |
(12) |
(15) |
|||||||||||||||
(Gain) Loss on Sale of Business |
— |
— |
8 |
— |
(104) |
|||||||||||||||
Operating Non-GAAP Adjustments |
35 |
463 |
487 |
1,341 |
910 |
|||||||||||||||
Non-GAAP Adjusted Operating Income (Loss) |
$ |
(25) |
$ |
(34) |
$ |
40 |
$ |
(38) |
$ |
44 |
||||||||||
Loss Before Income Taxes: |
||||||||||||||||||||
GAAP Loss Before Income Taxes |
$ |
(159) |
$ |
(567) |
$ |
(784) |
$ |
(1,640) |
$ |
(1,528) |
||||||||||
Operating Non-GAAP Adjustments |
35 |
463 |
487 |
1,341 |
910 |
|||||||||||||||
Reorganization Items |
— |
— |
303 |
9 |
303 |
|||||||||||||||
Non-GAAP Adjustments Before Taxes |
35 |
463 |
790 |
1,350 |
1,213 |
|||||||||||||||
Non-GAAP Loss Before Income Taxes |
$ |
(124) |
$ |
(104) |
$ |
6 |
$ |
(290) |
$ |
(315) |
||||||||||
Provision for Income Taxes: |
||||||||||||||||||||
GAAP Provision for Income Taxes |
$ |
(8) |
$ |
(12) |
$ |
(31) |
$ |
(64) |
$ |
(76) |
||||||||||
Tax Effect on Non-GAAP Adjustments |
(3) |
(2) |
(4) |
(12) |
(10) |
|||||||||||||||
Non-GAAP Provision for Income Taxes |
$ |
(11) |
$ |
(14) |
$ |
(35) |
$ |
(76) |
$ |
(86) |
||||||||||
Net Loss Attributable to Weatherford: |
||||||||||||||||||||
GAAP Net Loss |
$ |
(174) |
$ |
(581) |
$ |
(821) |
$ |
(1,721) |
$ |
(1,618) |
||||||||||
Non-GAAP Adjustments, net of tax |
32 |
461 |
786 |
1,338 |
1,203 |
|||||||||||||||
Non-GAAP Net Loss |
$ |
(142) |
$ |
(120) |
$ |
(35) |
$ |
(383) |
$ |
(415) |
||||||||||
Diluted Loss Per Share Attributable to Weatherford: |
||||||||||||||||||||
GAAP Diluted Loss per Share |
$ |
(2.48) |
$ |
(8.30) |
$ |
(0.82) |
$ |
(24.58) |
$ |
(1.61) |
||||||||||
Non-GAAP Adjustments, net of tax |
0.45 |
6.59 |
0.79 |
19.11 |
1.20 |
|||||||||||||||
Non-GAAP Diluted Loss per Share |
$ |
(2.03) |
$ |
(1.71) |
$ |
(0.03) |
$ |
(5.47) |
$ |
(0.41) |
|
||||||||||||
Quarterly Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA (Unaudited) |
||||||||||||
($ in Millions) |
||||||||||||
Successor |
Predecessor |
|||||||||||
Quarter |
||||||||||||
Quarter Ended |
Ended |
|||||||||||
|
|
|
||||||||||
Net Loss Attributable to Weatherford |
$ |
(174) |
$ |
(581) |
$ |
(821) |
||||||
Net Income Attributable to Noncontrolling Interests |
7 |
2 |
6 |
|||||||||
Net Loss |
(167) |
(579) |
(815) |
|||||||||
Interest Expense, Net |
79 |
59 |
26 |
|||||||||
Income Tax Provision |
8 |
12 |
31 |
|||||||||
Depreciation and Amortization |
117 |
113 |
118 |
|||||||||
EBITDA |
37 |
(395) |
(640) |
|||||||||
Other (Income) Expense Adjustments: |
||||||||||||
Reorganization Items |
— |
— |
303 |
|||||||||
Impairments and Other Charges |
47 |
463 |
494 |
|||||||||
Loss on Sale of Business |
— |
— |
8 |
|||||||||
Stock-Based Compensation |
— |
— |
6 |
|||||||||
Other Non-Operating Expense, Net |
20 |
11 |
8 |
|||||||||
Adjusted EBITDA [1] |
$ |
104 |
$ |
79 |
$ |
179 |
[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. For certain of the periods presented, Adjusted EBITDA includes the Gain on Sale of Operational Assets. 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 |
||||||||
Nine Months |
Nine Months |
||||||||
Ended |
Ended |
||||||||
|
|
||||||||
Net Loss Attributable to Weatherford |
$ |
(1,721) |
$ |
(1,618) |
|||||
Net Income Attributable to Noncontrolling Interests |
17 |
14 |
|||||||
Net Loss |
(1,704) |
(1,604) |
|||||||
Interest Expense, Net |
196 |
341 |
|||||||
Income Tax Provision |
64 |
76 |
|||||||
Depreciation and Amortization |
387 |
357 |
|||||||
EBITDA |
(1,057) |
(830) |
|||||||
Other (Income) Expense Adjustments: |
|||||||||
Reorganization Items |
9 |
303 |
|||||||
Impairments and Other Charges |
1,353 |
1,029 |
|||||||
Gain on Sale of Business |
— |
(104) |
|||||||
Stock-Based Compensation |
— |
20 |
|||||||
Other Non-Operating Expense, Net |
56 |
18 |
|||||||
Adjusted EBITDA [1] |
$ |
361 |
$ |
436 |
[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. For the periods presented, Adjusted EBITDA includes the Gain on Sale of Operational Assets. 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 |
Nine Months |
Nine Months |
||||||||||||||||||||
Quarter Ended |
Ended |
Ended |
Ended |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||||
Adjusted EBITDA [1] |
$ |
104 |
$ |
79 |
$ |
179 |
$ |
361 |
$ |
436 |
||||||||||||
Cash From (Used) for Working Capital |
59 |
130 |
(230) |
106 |
(404) |
|||||||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(27) |
(35) |
(63) |
(100) |
(177) |
|||||||||||||||||
Cash Paid for Taxes |
(20) |
(19) |
(14) |
(60) |
(65) |
|||||||||||||||||
Cash Paid for Severance and Restructuring |
(34) |
(58) |
(48) |
(109) |
(100) |
|||||||||||||||||
Other |
25 |
11 |
(29) |
17 |
(218) |
|||||||||||||||||
Unlevered Free Cash Flow |
$ |
107 |
$ |
108 |
$ |
(205) |
$ |
215 |
$ |
(528) |
||||||||||||
Cash Paid for Interest |
(2) |
(110) |
(24) |
(114) |
(248) |
|||||||||||||||||
Free Cash Flow [2] |
$ |
105 |
$ |
(2) |
$ |
(229) |
$ |
101 |
$ |
(776) |
[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. For certain of the periods presented, Adjusted EBITDA includes the Gain on Sale of Operational Assets. |
[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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