Third quarter 2021 revenues were
Third quarter 2021 cash flows provided by operations were
Third quarter 2021:
"The third quarter performance clearly demonstrates the advancement of our strategic imperatives. We remain intent on institutionalizing improvements into our business processes, while retaining the ability to capture activity increases at greater fall through margins, as evidenced by the outstanding EBITDA performance. Our product and service portfolio continued to prove its strength with record-breaking accomplishments. Our market-leading product lines, including MPD and TRS, enabled us to drive synergies across our portfolio and carve out the unique value of integrating our offerings, as evidenced, this quarter in the
"In the third quarter, we broadened the influence of our strategic vectors of digitalization and energy transition, as we saw increased uptake of our ForeSite suite, with an award in the
"We ended the third quarter of 2021 with ample liquidity after generating
"As always, we remain committed to driving sustainable profitability and free cash flow generation. The execution of the restructuring and refinancing of our debt is a significant step in the evolution of our capital structure and addressing its inefficiencies. Paying down
Notes:
[1] EBITDA represents income before interest expense, net, loss on extinguishment, bond redemption and loss on termination of ABL credit agreement, income tax, depreciation and amortization expense. Adjusted EBITDA excludes, among other items, impairments of long-lived assets and goodwill, restructuring expense, share-based compensation expense, as well as write-offs of property plant and equipment, right-of-use assets, and inventory. Free cash flow is calculated as cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Unlevered free cash flow is calculated as free cash flow plus cash paid for interest. EBITDA, adjusted EBITDA, free cash flow 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.
Operational Highlights
Technology Deployment
Liquidity
The Company maintained its disciplined focus on liquidity during the third quarter of 2021. Unlevered free cash flow of
Results by Operating Segment
Western Hemisphere
Quarter Ended |
Variance |
|||||||||||||||||
($ in Millions) |
|
|
|
Seq. |
YoY |
|||||||||||||
Revenues: |
||||||||||||||||||
|
$ |
224 |
$ |
220 |
$ |
175 |
2 |
% |
28 |
% |
||||||||
|
217 |
205 |
141 |
6 |
% |
54 |
% |
|||||||||||
Total Revenues |
$ |
441 |
$ |
425 |
$ |
316 |
4 |
% |
40 |
% |
||||||||
Adjusted Segment EBITDA |
$ |
75 |
58 |
$ |
29 |
29 |
% |
159 |
% |
|||||||||
% Margin |
17 |
% |
14 |
% |
9 |
% |
340 |
bps |
780 |
bps |
Third quarter 2021 Western Hemisphere revenues of
Adjusted segment EBITDA of
Eastern Hemisphere
Quarter Ended |
Variance |
|||||||||||||||||
($ in Millions) |
|
|
|
Seq. |
YoY |
|||||||||||||
Revenues: |
||||||||||||||||||
|
$ |
312 |
$ |
289 |
$ |
319 |
8 |
% |
(2) |
% |
||||||||
|
192 |
189 |
172 |
2 |
% |
12 |
% |
|||||||||||
Total Revenues |
$ |
504 |
$ |
478 |
$ |
491 |
5 |
% |
3 |
% |
||||||||
Adjusted Segment EBITDA |
$ |
118 |
93 |
$ |
104 |
27 |
% |
13 |
% |
|||||||||
% Margin |
23 |
% |
20 |
% |
21 |
% |
390 |
bps |
220 |
bps |
Third quarter 2021 Eastern Hemisphere revenues of
Adjusted segment EBITDA of
About Weatherford
Weatherford is a leading global energy services company. Operating in approximately 75 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 17,000 team members and approximately 350 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 participate in the conference call via a live webcast 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:
Director, Investor Relations and M&A
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Director,
+1 713-836-4193
kelley.hughes@weatherford.com
Forward-Looking Statements
This news release contains forward-looking statements concerning, among other things, the Company's quarterly and full-year revenues, operating income and losses, adjusted EBITDA, unlevered free cash flow, 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 fluctuations in 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 COVID-19 virus and COVID-19 variants, 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
|
||||||||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||||||
($ in Millions, Except Per Share Amounts) |
||||||||||||||||||||
Quarter Ended |
Nine Months Ended |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
Revenues: |
||||||||||||||||||||
Western Hemisphere |
$ |
441 |
$ |
425 |
$ |
316 |
$ |
1,256 |
$ |
1,214 |
||||||||||
Eastern Hemisphere |
504 |
478 |
491 |
1,424 |
1,629 |
|||||||||||||||
Total Revenues |
945 |
903 |
807 |
2,680 |
2,843 |
|||||||||||||||
Operating Income (Loss): |
||||||||||||||||||||
Western Hemisphere |
45 |
28 |
(2) |
97 |
4 |
|||||||||||||||
Eastern Hemisphere |
34 |
6 |
5 |
21 |
38 |
|||||||||||||||
Segment Operating Income (Loss) |
79 |
34 |
3 |
118 |
42 |
|||||||||||||||
Corporate |
(16) |
(17) |
(28) |
(51) |
(80) |
|||||||||||||||
|
— |
— |
— |
— |
(1,057) |
|||||||||||||||
Other (Charges) Credits [1] |
8 |
8 |
(4) |
16 |
(170) |
|||||||||||||||
Restructuring Charges |
— |
— |
(31) |
— |
(114) |
|||||||||||||||
Total Operating Income (Loss) |
71 |
25 |
(60) |
83 |
(1,379) |
|||||||||||||||
Other Income (Expense): |
||||||||||||||||||||
Interest Expense, Net [2] |
(69) |
(72) |
(64) |
(211) |
(181) |
|||||||||||||||
Loss on Extinguishment of Debt and Bond Redemption Premium |
(59) |
— |
— |
(59) |
— |
|||||||||||||||
Loss on Termination of ABL Credit Agreement [2] |
— |
— |
(15) |
— |
(15) |
|||||||||||||||
Other Expense, Net |
(4) |
(11) |
(20) |
(19) |
(65) |
|||||||||||||||
Loss Before Income Taxes |
(61) |
(58) |
(159) |
(206) |
(1,640) |
|||||||||||||||
Income Tax Provision |
(28) |
(15) |
(8) |
(66) |
(64) |
|||||||||||||||
Net Loss |
(89) |
(73) |
(167) |
(272) |
(1,704) |
|||||||||||||||
Net Income Attributable to Noncontrolling Interests |
6 |
5 |
7 |
17 |
17 |
|||||||||||||||
Net Loss Attributable to Weatherford |
$ |
(95) |
$ |
(78) |
$ |
(174) |
$ |
(289) |
$ |
(1,721) |
||||||||||
Basic and Diluted Loss Per Share |
$ |
(1.36) |
$ |
(1.11) |
$ |
(2.48) |
$ |
(4.13) |
$ |
(24.58) |
||||||||||
Basic and Diluted Weighted Average Shares Outstanding |
70 |
70 |
70 |
70 |
70 |
[1] |
See Supplemental Schedule for Impairment and Other (Charges) Credits for further details. |
[2] |
Loss on Termination of ABL Credit Agreement was included in "Interest Expense Net" in 2020, which has been reclassified to be presented on a consistent basis with 2021. |
|
|||||||
Selected Balance Sheet Data (Unaudited) |
|||||||
($ in Millions) |
|||||||
|
|
||||||
Assets: |
|||||||
Cash and Cash Equivalents |
$ |
1,291 |
$ |
1,118 |
|||
Restricted Cash |
155 |
167 |
|||||
Accounts Receivable, Net |
816 |
826 |
|||||
Inventories, Net |
681 |
717 |
|||||
Property, Plant and Equipment, Net |
1,022 |
1,236 |
|||||
Intangibles, Net |
695 |
810 |
|||||
Liabilities: |
|||||||
Accounts Payable |
350 |
325 |
|||||
Accrued Salaries and Benefits |
317 |
297 |
|||||
Short-term Borrowings and Current Portion of Long-term Debt |
211 |
13 |
|||||
Long-term Debt |
2,431 |
2,601 |
|||||
Shareholders' Equity: |
|||||||
Total Shareholders' Equity |
647 |
937 |
|||||
Components of Net Debt [1]: |
|||||||
Short-term Borrowings and Current Portion of Long-term Debt |
211 |
13 |
|||||
Long-term Debt |
2,431 |
2,601 |
|||||
Less: Cash and Cash Equivalents |
1,291 |
1,118 |
|||||
Less: Restricted Cash |
155 |
167 |
|||||
Net Debt [1] |
$ |
1,196 |
$ |
1,329 |
[1] |
Net debt is a non-GAAP measure calculated as total short- and long-term debt less cash and cash equivalents and restricted cash. |
|
||||||||||||||||||||
Selected Cash Flows Information (Unaudited) |
||||||||||||||||||||
($ in Millions) |
||||||||||||||||||||
Quarter Ended |
Nine Months Ended |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
Cash Flows From Operating Activities: |
||||||||||||||||||||
Net Loss |
$ |
(89) |
$ |
(73) |
$ |
(167) |
$ |
(272) |
$ |
(1,704) |
||||||||||
Adjustments to Reconcile Net Loss to Net Cash Provided By Operating Activities: |
||||||||||||||||||||
Depreciation and Amortization |
112 |
114 |
117 |
337 |
387 |
|||||||||||||||
Impairments of Long-Lived Assets and |
— |
— |
— |
— |
1,057 |
|||||||||||||||
Inventory Charges |
11 |
22 |
28 |
50 |
166 |
|||||||||||||||
Loss on Extinguishment of Debt and Bond Redemption Premium |
59 |
— |
— |
59 |
— |
|||||||||||||||
Loss on Termination of ABL Credit Agreement |
— |
— |
15 |
— |
15 |
|||||||||||||||
(Gain) Loss on Disposition of Assets |
(9) |
(8) |
(4) |
(22) |
8 |
|||||||||||||||
Deferred Income Tax Provision (Benefit) |
9 |
4 |
(11) |
15 |
10 |
|||||||||||||||
Share-Based Compensation |
4 |
5 |
— |
13 |
— |
|||||||||||||||
Working Capital [1] |
(54) |
12 |
59 |
18 |
106 |
|||||||||||||||
Other Operating Activities [2] |
71 |
(30) |
90 |
36 |
143 |
|||||||||||||||
Net Cash Provided By Operating Activities |
114 |
46 |
127 |
234 |
188 |
|||||||||||||||
Cash Flows From Investing Activities: |
||||||||||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(20) |
(9) |
(27) |
(44) |
(100) |
|||||||||||||||
Proceeds from Disposition of Assets |
17 |
11 |
5 |
39 |
13 |
|||||||||||||||
Proceeds (Payments) for Other Investing Activities |
3 |
(1) |
19 |
3 |
22 |
|||||||||||||||
Net Cash Provided By (Used In) Investing Activities |
— |
1 |
(3) |
(2) |
(65) |
|||||||||||||||
Cash Flows From Financing Activities: |
||||||||||||||||||||
Borrowings of Long-term Debt |
491 |
— |
457 |
491 |
457 |
|||||||||||||||
Repayments of Long-term Debt |
(505) |
(2) |
(2) |
(510) |
(7) |
|||||||||||||||
Borrowings (Repayments) of Short-term Debt, Net |
— |
— |
(29) |
(4) |
(22) |
|||||||||||||||
Bond Redemption Premium |
(22) |
— |
— |
(22) |
— |
|||||||||||||||
Other Financing Activities |
(14) |
(4) |
(14) |
(20) |
(52) |
|||||||||||||||
Net Cash Provided By (Used In) Financing Activities |
$ |
(50) |
$ |
(6) |
$ |
412 |
$ |
(65) |
$ |
376 |
||||||||||
Free Cash Flow[3]: |
||||||||||||||||||||
Net Cash Provided by Operating Activities |
114 |
46 |
127 |
234 |
188 |
|||||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(20) |
(9) |
(27) |
(44) |
(100) |
|||||||||||||||
Proceeds from Disposition of Assets |
17 |
11 |
5 |
39 |
13 |
|||||||||||||||
Free Cash Flow [3] |
$ |
111 |
$ |
48 |
$ |
105 |
$ |
229 |
$ |
101 |
||||||||||
[1] |
Working capital is defined as the cash changes in accounts receivable plus inventory less accounts payable. |
[2] |
Other operating activities is primarily accruals, net of cash payments for operational expenses, interest, taxes, employee costs and leases. |
[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 operating activities. |
|
|||||||||||||||||||
($ in Millions) |
|||||||||||||||||||
Selected Statements of Operations Information (Unaudited) - Product Line Revenues |
|||||||||||||||||||
Quarter Ended |
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|||||||||||||||
Completion and Production |
$ |
239 |
$ |
231 |
$ |
170 |
$ |
695 |
$ |
632 |
|||||||||
Drilling, Evaluation and Intervention |
202 |
194 |
146 |
561 |
582 |
||||||||||||||
Western Hemisphere |
441 |
425 |
316 |
$ |
1,256 |
$ |
1,214 |
||||||||||||
Completion and Production |
221 |
214 |
241 |
$ |
633 |
$ |
783 |
||||||||||||
Drilling, Evaluation and Intervention |
283 |
264 |
250 |
791 |
846 |
||||||||||||||
Eastern Hemisphere |
504 |
478 |
491 |
$ |
1,424 |
$ |
1,629 |
||||||||||||
Total Completion and Production |
460 |
445 |
411 |
$ |
1,328 |
$ |
1,415 |
||||||||||||
Total Drilling, Evaluation and Intervention |
485 |
458 |
396 |
1,352 |
1,428 |
||||||||||||||
Total Product Line Revenues |
$ |
945 |
$ |
903 |
$ |
807 |
$ |
2,680 |
$ |
2,843 |
We report our financial results in accordance with
|
|||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) |
|||||||||||||||||||
($ in Millions, Except Per Share Amounts) |
|||||||||||||||||||
Quarter Ended |
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|||||||||||||||
Operating Income (Loss): |
|||||||||||||||||||
GAAP Operating Income (Loss) |
$ |
71 |
$ |
25 |
$ |
(60) |
$ |
83 |
$ |
(1,379) |
|||||||||
Impairments and Other Charges (Credits) |
(8) |
(8) |
4 |
(16) |
1,227 |
||||||||||||||
Restructuring Charges |
— |
— |
31 |
— |
114 |
||||||||||||||
Operating Non-GAAP Adjustments |
(8) |
(8) |
35 |
(16) |
1,341 |
||||||||||||||
Non-GAAP Adjusted Operating Income (Loss) |
$ |
63 |
$ |
17 |
$ |
(25) |
$ |
67 |
$ |
(38) |
|||||||||
Income (Loss) Before Income Taxes: |
|||||||||||||||||||
GAAP Income (Loss) Before Income Taxes |
$ |
(61) |
$ |
(58) |
$ |
(159) |
$ |
(206) |
$ |
(1,640) |
|||||||||
Operating Non-GAAP Adjustments |
(8) |
(8) |
35 |
(16) |
1,341 |
||||||||||||||
Loss on Extinguishment of Debt, Bond Redemption Premium and Loss on Termination of ABL Credit Agreement [1] |
59 |
— |
15 |
59 |
15 |
||||||||||||||
Reorganization Items [2] |
— |
— |
— |
— |
9 |
||||||||||||||
Non-GAAP Adjustments Before Taxes |
51 |
(8) |
50 |
43 |
1,365 |
||||||||||||||
Non-GAAP Loss Before Income Taxes |
$ |
(10) |
$ |
(66) |
$ |
(109) |
$ |
(163) |
$ |
(275) |
|||||||||
Provision for Income Taxes: |
|||||||||||||||||||
GAAP Provision for Income Taxes |
$ |
(28) |
$ |
(15) |
$ |
(8) |
$ |
(66) |
$ |
(64) |
|||||||||
Tax Effect on Non-GAAP Adjustments |
— |
— |
(3) |
— |
(12) |
||||||||||||||
Non-GAAP Provision for Income Taxes |
$ |
(28) |
$ |
(15) |
$ |
(11) |
$ |
(66) |
$ |
(76) |
|||||||||
Net Loss Attributable to Weatherford: |
|||||||||||||||||||
GAAP Net Loss |
$ |
(95) |
$ |
(78) |
$ |
(174) |
$ |
(289) |
$ |
(1,721) |
|||||||||
Non-GAAP Adjustments, net of tax |
51 |
(8) |
47 |
43 |
1,353 |
||||||||||||||
Non-GAAP Net Loss |
$ |
(44) |
$ |
(86) |
$ |
(127) |
$ |
(246) |
$ |
(368) |
|||||||||
Diluted Loss Per Share Attributable to Weatherford: |
|||||||||||||||||||
GAAP Diluted Loss per Share |
$ |
(1.36) |
$ |
(1.11) |
$ |
(2.48) |
$ |
(4.13) |
$ |
(24.58) |
|||||||||
Non-GAAP Adjustments, net of tax |
0.73 |
(0.12) |
0.67 |
0.62 |
19.32 |
||||||||||||||
Non-GAAP Diluted Loss per Share |
$ |
(0.63) |
$ |
(1.23) |
$ |
(1.81) |
$ |
(3.51) |
$ |
(5.26) |
[1] |
Loss on Termination of ABL Credit Agreement was included in "Interest Expense Net" in 2020, which has been reclassified to be presented on a comparable basis with 2021. |
[2] |
Reorganization Items is included in "Other Expense, Net" on the Condensed Consolidated Statements of Operations table. |
|
|||||||||||||||||||
Reconciliation of Operating Income before Certain Operating Expenses to Adjusted EBITDA (Unaudited) |
|||||||||||||||||||
And Supplemental Schedule for Impairments and Other (Charges) Credits (Unaudited) |
|||||||||||||||||||
($ in Millions) |
|||||||||||||||||||
Quarter Ended |
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|||||||||||||||
Western Hemisphere |
|||||||||||||||||||
Operating Income (Loss) |
$ |
45 |
$ |
28 |
$ |
(2) |
$ |
97 |
$ |
4 |
|||||||||
Depreciation and Amortization |
29 |
29 |
31 |
85 |
107 |
||||||||||||||
Share-Based Compensation |
1 |
1 |
— |
3 |
— |
||||||||||||||
Adjusted EBITDA[1] |
$ |
75 |
$ |
58 |
$ |
29 |
$ |
185 |
$ |
111 |
|||||||||
Eastern Hemisphere |
|||||||||||||||||||
Operating Income |
$ |
34 |
6 |
$ |
5 |
$ |
21 |
$ |
38 |
||||||||||
Depreciation and Amortization |
83 |
85 |
87 |
252 |
281 |
||||||||||||||
Share-Based Compensation |
1 |
2 |
— |
4 |
— |
||||||||||||||
Other [2] |
— |
— |
12 |
— |
12 |
||||||||||||||
Adjusted EBITDA[1] |
$ |
118 |
93 |
$ |
104 |
$ |
277 |
$ |
331 |
||||||||||
Corporate |
|||||||||||||||||||
Operating Loss |
$ |
(16) |
$ |
(17) |
$ |
(28) |
$ |
(51) |
$ |
(80) |
|||||||||
Depreciation and Amortization |
— |
— |
(1) |
— |
(1) |
||||||||||||||
Share-Based Compensation |
2 |
2 |
— |
6 |
— |
||||||||||||||
Adjusted EBITDA[1] |
$ |
(14) |
$ |
(15) |
$ |
(29) |
$ |
(45) |
$ |
(81) |
|||||||||
Consolidated |
|||||||||||||||||||
Operating Income (Loss) |
$ |
63 |
$ |
17 |
$ |
(25) |
$ |
67 |
$ |
(38) |
|||||||||
Depreciation and Amortization |
112 |
114 |
117 |
337 |
387 |
||||||||||||||
Share-Based Compensation |
4 |
5 |
— |
13 |
— |
||||||||||||||
Other |
— |
— |
12 |
— |
12 |
||||||||||||||
Adjusted EBITDA[1] |
$ |
179 |
$ |
136 |
$ |
104 |
$ |
417 |
$ |
361 |
|||||||||
Impairments and Other (Charges) Credits[3] |
|||||||||||||||||||
Long-lived Asset Impairments |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
(818) |
|||||||||
Goodwill Impairment |
— |
— |
— |
— |
(239) |
||||||||||||||
Inventory Charges |
— |
— |
(4) |
— |
(138) |
||||||||||||||
Other (Charges) Credits |
8 |
8 |
— |
16 |
(32) |
||||||||||||||
Total Impairments and Other (Charges) Credits[3] |
$ |
8 |
$ |
8 |
$ |
(4) |
$ |
16 |
$ |
(1,227) |
[1] |
Adjusted EBITDA is calculated as operating income (loss) before certain operating expenses plus depreciation and amortization plus share-based compensation. |
[2] |
Other is a |
[3] |
Impairments and Other (Charges) Credits primarily represent charges on long-lived assets, goodwill, certain inventory charges and other (charges) credits like certain gains on asset sales. |
|
|||||||||||||||||||
($ in Millions) |
|||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||||||||||||||
Net Loss to Adjusted EBITDA (Unaudited) |
|||||||||||||||||||
Quarter Ended |
Nine Months Ended |
||||||||||||||||||
|
|
|
|
|
|||||||||||||||
Net Loss Attributable to Weatherford |
$ |
(95) |
$ |
(78) |
$ |
(174) |
$ |
(289) |
$ |
(1,721) |
|||||||||
Net Income Attributable to Noncontrolling Interests |
6 |
5 |
7 |
17 |
17 |
||||||||||||||
Net Loss |
(89) |
(73) |
(167) |
(272) |
(1,704) |
||||||||||||||
Interest Expense, Net |
69 |
72 |
64 |
211 |
181 |
||||||||||||||
Loss on Extinguishment of Debt, Bond Redemption Premium and Loss on Termination of ABL Credit Agreement |
59 |
— |
15 |
59 |
15 |
||||||||||||||
Income Tax Provision |
28 |
15 |
8 |
66 |
64 |
||||||||||||||
Depreciation and Amortization |
112 |
114 |
117 |
337 |
387 |
||||||||||||||
EBITDA |
179 |
128 |
37 |
401 |
(1,057) |
||||||||||||||
Other Adjustments: |
|||||||||||||||||||
Impairments and Other Charges (Credits) [1] |
(8) |
(8) |
16 |
(16) |
1,239 |
||||||||||||||
Restructuring Charges |
— |
— |
31 |
— |
114 |
||||||||||||||
Share-Based Compensation |
4 |
5 |
— |
13 |
— |
||||||||||||||
Other Expense, Net [2] |
4 |
11 |
20 |
19 |
65 |
||||||||||||||
Adjusted EBITDA |
$ |
179 |
$ |
136 |
$ |
104 |
$ |
417 |
$ |
361 |
|||||||||
[1] |
Impairments and Other Charges (Credits) for Adjusted EBITDA excludes a |
[2] |
Reorganization Items in 2020 is included in "Other Expense, Net". |
Supplemental Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||||
Adjusted EBITDA to Free Cash Flow (Unaudited) |
|||||||||||||||||||||
Quarter Ended |
Nine Months Ended |
||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
Adjusted EBITDA |
$ |
179 |
$ |
136 |
$ |
104 |
$ |
417 |
$ |
361 |
|||||||||||
Cash From (Used) for Working Capital |
(54) |
12 |
59 |
18 |
106 |
||||||||||||||||
Capital Expenditures for Property, Plant and Equipment |
(20) |
(9) |
(27) |
(44) |
(100) |
||||||||||||||||
Cash Paid for Taxes |
(12) |
(17) |
(20) |
(44) |
(60) |
||||||||||||||||
Cash Paid for Severance and Restructuring |
(5) |
(9) |
(34) |
(26) |
(109) |
||||||||||||||||
Proceeds from Disposition of Assets |
17 |
11 |
5 |
39 |
13 |
||||||||||||||||
E&O Inventory Charges |
11 |
16 |
24 |
43 |
28 |
||||||||||||||||
Increase (Decrease) in Accruals, Net |
27 |
25 |
7 |
9 |
(11) |
||||||||||||||||
Other [3] |
(2) |
— |
(11) |
(12) |
(13) |
||||||||||||||||
Unlevered Free Cash Flow |
$ |
141 |
$ |
165 |
$ |
107 |
$ |
400 |
$ |
215 |
|||||||||||
Cash Paid for Interest |
(30) |
(117) |
(2) |
(171) |
(114) |
||||||||||||||||
Free Cash Flow [4] |
$ |
111 |
$ |
48 |
$ |
105 |
$ |
229 |
$ |
101 |
[3] |
Other primarily includes accruals net of payments for leases, change in our allowance for credit losses and foreign currency exchange impact. |
[4] |
Free cash flow is a non-GAAP measure calculated as cash flows provided by 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 operating activities. |
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