NABORS INDUSTRIES LTD. HAMILTON, Bermuda, April 21, 2015 /PRNewswire/ --Nabors Industries Ltd. ("Nabors") (NYSE: NBR) today reported first-quarter revenue and earnings from unconsolidated affiliates of $1.42 billion, compared to $1.78 billion in the fourth quarter of 2014 and $1.59 billion in the first quarter of last year. Revenue in the International segment was up 3% sequentially, while revenue for the U.S. and Canada drilling operations decreased by 17% and 34%, respectively. Completion and Production Services revenue fell by 39% partially reflecting the timing of the C&J Energy Services transaction, which closed on March 24.
Net income from continuing operations reported for the first quarter was $124.4 million or $0.43 per diluted share. Adjusted net income was $58.3 million, or $0.20 per share, after excluding a $61.9 million after-tax net gain from the C&J Energy Services transaction, tax benefits of $10.5 million, and $6.3 million in after-tax severance charges from workforce reductions. This compares to adjusted net income from continuing operations of $96.3 million ($0.33 per share) in the fourth quarter and $49.0 million ($0.16 per share) in the same quarter of last year. Adjusted net income for the fourth quarter of 2014 excludes the effect of asset impairments and other charges. The Company's financial results for the first quarter of 2015 include the Completion and Production Services business through March 23, 2015. For the first quarter up to the closing date, this business reported an operating loss of $58.5 million, representing a negative impact to earnings per share of approximately $0.15.
Anthony Petrello, Nabors' Chairman and CEO, commented, "Solid improvements in our International, Alaska and Rig Services operations were insufficient to offset the combined effects of the sharp drops in activity we experienced in Completion and Production Services, as well as in our U.S. Lower 48 and Canada rig operations. The strength of our International operations this quarter was attributable to the startup of a number of impactful new and upgraded rigs, and favorable operating results in several venues. I would also like to highlight the significant efforts made by our North America operations in aligning our structure to the new activity level. Since the end of last year, we have reduced our global workforce by more than 18%, including reductions of 41% and 26% in the U.S. Drilling and Canada segments, respectively. In addition, excluding the impact of the first-quarter severance charges, we have reduced SG&A by approximately $20 million from fourth-quarter levels. It has been a painful but necessary exercise given the expected duration of this downturn.
"Despite the weakening environment, the first quarter included several positive developments. First of all, we closed on the merger transaction with C&J Energy Services. Our 53% equity ownership in the combined entity allows us to maintain exposure to these markets with a highly capable and efficient operator while improving our financial flexibility. We remain confident in the ability of the C&J team to materially improve the results of our contributed business and to capture significant synergies from this combination.
Second, our International unit secured awards for six new PACE(®)-X rigs, validating the desirability and global applicability of this rig.
Third, our remaining businesses, excluding Completion and Production Services, delivered an incremental $22 million in operating income compared to the fourth quarter of last year, excluding severance charges. This improvement reflected the strength of our International results and initial cost reduction efforts by our management team. Although revenues for the remaining drilling businesses fell by 12%, our operating margins increased by 300 basis points to 14.4%."
Drilling & Rig Services
Adjusted income derived from operating activities ("operating income") in the Drilling and Rig Services business line increased 6% to $201.3 million, up from $189.6 million in the fourth quarter. Adjusted EBITDA in this unit was $428.8 million, primarily attributable to the International segment.
International operating income increased by 39% sequentially to $105.0 million, demonstrating the strength and earnings potential of Nabors' global operations. In contrast to the U.S. Lower 48, this segment was minimally impacted by lower oil prices and benefitted from a number of favorable operating events. During the coming months, diminished pricing and activity is expected to impact the profitability of this segment as the effects of weakening oil prices progressively influence international markets. Going forward, the Company anticipates a 10% decline in the international rig count through the year, which should only begin to impact results later in the year. Despite the softening conditions, full-year results for the International segment are still expected to increase compared to 2014.
In North America, drilling activity within the Lower 48 and Canada significantly declined throughout the quarter, resulting in a decrease in U.S. Drilling operating income of $13.5 million and a decrease in Canada operating income of $8.2 million. In the Lower 48, activity has particularly slowed in the Bakken and Mid-Continent regions with utilization rates dropping 20% across all regions. Although the decline in the U.S. has begun to moderate, further weakening is expected in the Lower 48 and Canada during the second quarter. Meanwhile, activity in Alaska continues to be strong, with year-over-year increases anticipated as results from recent new rig awards are realized. Finally, the Company expects lower results in the Gulf of Mexico until the fourth quarter, when its new deepwater platform rig is scheduled to commence operations.
Rig Services' operating income was up sequentially with an increase of $4.0 million, primarily due to higher-margin mix and strict expense control in Canrig. Although Ryan's revenue continued to deteriorate, operating income was in line with the prior quarter.
Completion and Production Services
The Completion and Production Services business line recorded an operating loss of $58.5 million, primarily due to sharp declines in utilization and pricing in the Completion Services business. Activity for the year started slowly with clients generally delaying well completions and weather affecting operations in West Texas and in the Rockies. Revenue started to rebound late in the quarter. Direct cost and overhead reductions lagged those achieved in the drilling business, as the pending transaction delayed actions that would have otherwise been completed during the first quarter.
Financial Discussion
The Company's first-quarter results included several items whose net impact obscured the otherwise positive performance in the global drilling business. These items related to the C&J Energy Services transaction, tax benefits, and severance costs incurred to adjust the Company's structure to the new market situation. In addition, the first-quarter results included the Completion and Production Services business up to the closing date. Post-closing, the Company's proportionate share of C&J Energy Services' net income is reported using the equity method.
Operating income for the drilling business, including corporate expenses, improved from $135.4 million in the fourth quarter of 2014 to $152.0 million, despite a $127.1 million reduction in revenue. The increase in operating income was driven by improvements of $29.4 million in the International business and $4.0 million in Rig Services. North America operating income held up relatively well in a tough environment, as the number of working rigs fell sharply during the quarter with a commensurate drop in revenue.
U.S. Drilling revenue declined 17%, while operating margins (excluding severance) improved to 17.5%. This performance reflected effective cost management in the Lower 48 operations and strong revenue and operating income improvements in Alaska. Lower 48 operations experienced a 27% revenue reduction, but held its operating margin (excluding severance) at 12.7%. In the Lower 48, daily drilling margins per rig increased by $676 to $11,134, including lump sum early termination revenue equivalent to $105 per day. Dayrate reductions were offset by mix effects, as our proportion of older, lower-margin rigs decreased, and by proactive cost reduction efforts.
Canada drilling revenue fell by 34%, with operating margins falling by 330 basis points to 13.2%. This margin resiliency reflected early action on adjusting the cost structure to anticipated revenue reductions and aligning the overhead structure to the falling activity levels.
Income tax benefits during the quarter totaled $10.5 million from releases of tax provisions and reserves in various jurisdictions. In addition, the tax expense for the quarter included $9.3 million of net tax benefits related to the C&J Energy Services transaction. Excluding these benefits and other discrete items mentioned above, the normalized effective tax rate for the quarter was in the low single digits, as pre-tax income was more heavily weighted to lower tax regimes.
William Restrepo, Nabors Chief Financial Officer, stated, "Although we have started to demonstrate the validity of our strategy based on global operations, highly capable, advanced rigs, and development of innovations in drilling technologies and solutions, we remain extremely focused on managing through this severe downturn:
-- We have expanded our commercial efforts in marketing our drilling rigs,
as well as cross-selling and seeking new opportunities for additional
drilling-related services;
-- We have rapidly aligned our direct costs with the current activity
level;
-- We have implemented reductions in SG&A overhead and expect to deliver
year-over-year reductions of at least $70 million dollars, while already
reducing our total workforce by almost 5,500;
-- We target 2015 capital expenditures below $1 billion, half our initial
expectation;
-- We continue to work with our suppliers to reduce costs of consumables,
services and capital equipment; and
-- We have reduced our debt materially while negotiating increased credit
facilities at favorable rates.
Although much remains to be done and we expect a challenging market environment for the remainder of the year, we believe our ongoing efforts will enable us to exit this downturn well prepared to continue strengthening our position as the leading global land driller."
Summary and Outlook
Looking ahead, results are expected to be lower in the second quarter as activity and pricing weaken in the U.S. Lower 48 and international markets soften. Second-quarter results will also be impacted by the usual seasonal declines in Alaska and Canada.
Petrello concluded, "Nabors plans to emerge from the current market in a stronger competitive position and has several strategies underway to achieve this objective. At the same time, we are committed to maintaining our technology development initiatives, several of which are already deployed in the field. We are well positioned financially, operationally and technically to endure the effects of a protracted down cycle, and plan to take advantage of attractive risk-adjusted newbuild and strategic opportunities as they present themselves."
About Nabors
The Nabors companies own and operate approximately 468 land drilling rigs throughout the world. Nabors' actively marketed offshore fleet consists of six jackups and 36 platform rigs in the United States and multiple international markets. Nabors also manufactures top drives and drilling instrumentation systems. Nabors participates in most of the significant oil and gas markets in the world.
The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The projections contained in this release reflect management's estimates as of the date of the release. Nabors does not undertake to update these forward-looking statements.
MEDIA CONTACT:
Dennis A. Smith, Director of Corporate Development & Investor Relations, +1 281-775-8038. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail at mark.andrews@nabors.com
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
Three Months Ended
------------------
March 31, December 31,
--------- ------------
(In thousands, except per
share amounts) 2015 2014 2014
---- ---- ----
Revenues and other income:
Operating revenues $1,414,707 $1,589,618 $1,783,836
Earnings (losses) from
unconsolidated affiliates 6,502 (2,445) (429)
Investment income (loss) 969 980 1,596
Total revenues and other
income 1,422,178 1,588,153 1,785,003
--------- --------- ---------
Costs and other deductions:
Direct costs 919,610 1,061,739 1,194,844
General and administrative
expenses 127,133 134,266 142,871
Depreciation and amortization 281,019 282,127 293,572
Interest expense 46,601 44,810 43,697
Losses (gains) on sales and
disposals of long-lived
assets and other expense
(income), net
(55,842) 1,476 9,606
Impairments and other charges - - 1,010,423
Total costs and other
deductions 1,318,521 1,524,418 2,695,013
--------- --------- ---------
Income (loss) from continuing
operations before income
taxes 103,657 63,735 (910,010)
------- ------ --------
Income tax expense (benefit) (20,705) 14,008 (23,609)
Subsidiary preferred stock
dividend - 750 -
--- --- ---
Income (loss) from continuing
operations, net of tax 124,362 48,977 (886,401)
Income (loss) from
discontinued operations, net
of tax (817) 1,515 (4,467)
---- ----- ------
Net income (loss) 123,545 50,492 (890,868)
Less: Net (income) loss
attributable to
noncontrolling interest 89 (573) (202)
Net income (loss) attributable
to Nabors $123,634 $49,919 $(891,070)
-------- ------- ---------
Earnings (losses) per share:
(1)
Basic from continuing
operations $.43 $.16 $(3.06)
Basic from discontinued
operations - .01 (.02)
--- --- ----
Basic $.43 $.17 $(3.08)
Diluted from continuing
operations $.43 $.16 $(3.06)
Diluted from discontinued
operations (.01) - (.02)
---- --- ----
Diluted $.42 $.16 $(3.08)
Weighted-average number of
common shares outstanding:
(1)
Basic 285,361 296,210 284,938
------- ------- -------
Diluted 286,173 299,050 284,938
------- ------- -------
Adjusted EBITDA (2) $374,466 $391,168 $445,692
======== ======== ========
Adjusted income (loss) derived
from operating activities (3) $93,447 $109,041 $152,120
======= ======== ========
(1) See "Computation of Earnings (Losses) Per
Share" included herein as a separate
schedule.
Adjusted EBITDA is computed by subtracting
the sum of direct costs and general and
administrative expenses from the sum of
Operating revenues and Earnings (losses)
from unconsolidated affiliates. These
amounts should not be used as a
substitute for the amounts reported in
accordance with GAAP. However, management
evaluates the performance of our business
units and the consolidated company based
on several criteria, including adjusted
EBITDA and adjusted income (loss) derived
from operating activities, because we
believe that these financial measures
accurately reflect our ongoing
profitability. There are limitations
inherent in using adjusted EBITDA as a
measure of overall profitability because
it excludes significant expense items. To
compensate for the limitations in
utilizing adjusted EBITDA as an operating
measure, management also uses GAAP
measures of performance, including income
from continuing operations and net
income, to evaluate performance, but only
with respect to the Company as a whole
and not on a segment basis. A
reconciliation of this non-GAAP measure
to income (loss) from continuing
operations before income taxes, which is
a GAAP measure, is provided in the table
set forth immediately following the
heading "Reconciliation of Non-GAAP
Financial Measures to Income (loss) from
Continuing Operations before Income
(2) Taxes".
Adjusted income (loss) derived from
operating activities is computed by
subtracting the sum of direct costs,
general and administrative expenses and
depreciation and amortization from the
sum of Operating revenues and Earnings
(losses) from unconsolidated affiliates.
These amounts should not be used as a
substitute for those amounts reported in
accordance with GAAP. However, management
evaluates the performance of our business
units and the consolidated company based
on several criteria, including adjusted
income (loss) derived from operating
activities, because it believes that
these financial measures accurately
reflect our ongoing profitability. A
reconciliation of this non-GAAP measure
to income (loss) from continuing
operations before income taxes, which is
a GAAP measure, is provided in the table
set forth immediately following the
heading "Reconciliation of Non-GAAP
Financial Measures to Income (loss) from
Continuing Operations before Income
(3) Taxes".
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
----------
March 31, December 31,
2015 2014
---- ----
(In thousands, except
ratios)
ASSETS
Current assets:
Cash and short-term
investments $621,171 $536,169
Accounts receivable, net 971,601 1,517,503
Assets held for sale 134,709 146,467
Other current assets 442,851 541,735
------- -------
Total current assets 2,170,332 2,741,874
Long-term investments and
other receivables 2,627 2,806
Property, plant and
equipment, net 7,333,808 8,599,125
Goodwill 80,947 173,928
Investment in unconsolidated
affiliates 730,487 58,251
Other long-term assets 286,397 303,958
Total assets $10,604,598 $11,879,942
=========== ===========
LIABILITIES AND EQUITY
Current liabilities:
Current debt $8,739 $6,190
Other current liabilities 1,147,857 1,561,285
--------- ---------
Total current liabilities 1,156,596 1,567,475
Long-term debt 3,816,717 4,348,859
Other long-term liabilities 663,523 1,044,819
------- ---------
Total liabilities 5,636,836 6,961,153
Equity:
Shareholders' equity 4,958,813 4,908,619
Noncontrolling interest 8,949 10,170
----- ------
Total equity 4,967,762 4,918,789
Total liabilities and equity $10,604,598 $11,879,942
=========== ===========
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SEGMENT REPORTING
(Unaudited)
The following tables set forth certain information with respect to our reportable segments and rig activity:
Three Months Ended
------------------
March 31, December 31,
--------- ------------
(In thousands, except rig
activity) 2015 2014 2014
---- ---- ----
Reportable segments:
Operating revenues and
Earnings (losses) from
unconsolidated affiliates:
Drilling and Rig Services:
U.S. $453,821 $510,476 $544,862
Canada 57,840 111,621 88,219
International 445,400 375,069 432,084
Rig Services (1) 144,084 143,726 190,399
------- ------- -------
Subtotal Drilling and Rig
Services (2) 1,101,145 1,140,892 1,255,564
Completion and Production
Services:
Completion Services 208,123 227,899 361,796
Production Services 158,512 275,400 239,897
------- ------- -------
Subtotal Completion and
Production Services (3) 366,635 503,299 601,693
Other reconciling items (4) (46,571) (57,018) (73,850)
------- ------- -------
Total operating revenues and
earnings (losses) from
unconsolidated affiliates $1,421,209 $1,587,173 $1,783,407
========== ========== ==========
Adjusted EBITDA: (5)
Drilling and Rig Services:
U.S. $187,745 $187,637 $207,001
Canada 18,468 40,119 28,315
International 201,028 137,991 173,248
Rig Services (1) 21,583 16,491 17,507
------ ------ ------
Subtotal Drilling and Rig
Services (2) 428,824 382,238 426,071
Completion and Production
Services:
Completion Services (27,847) (6,654) 33,372
Production Services 23,043 60,056 40,284
------ ------ ------
Subtotal Completion and
Production Services (3) (4,804) 53,402 73,656
Other reconciling items (6) (49,554) (44,472) (54,035)
------- ------- -------
Total adjusted EBITDA $374,466 $391,168 $445,692
======== ======== ========
Adjusted income (loss) derived
from operating activities:
(7)
Drilling and Rig Services:
U.S. $77,038 $72,494 $90,490
Canada 6,358 26,160 14,566
International 105,041 48,119 75,664
Rig Services (1) 12,873 8,728 8,845
------ ----- -----
Subtotal Drilling and Rig
Services (2) 201,310 155,501 189,565
Completion and Production
Services:
Completion Services (55,243) (33,635) 4,927
Production Services (3,296) 30,591 11,752
------ ------ ------
Subtotal Completion and
Production Services (3) (58,539) (3,044) 16,679
Other reconciling items (6) (49,324) (43,416) (54,124)
------- ------- -------
Total adjusted income (loss)
derived from operating
activities $93,447 $109,041 $152,120
======= ======== ========
Rig activity:
Rig years: (8)
U.S. 167.6 206.6 212.2
Canada 25.6 43.8 36.9
International (9) 130.1 129.8 121.2
Total rig years 323.3 380.2 370.3
===== ===== =====
Rig hours: (10)
U.S. Production Services 129,652 209,982 183,102
Canada Production Services 23,947 41,540 33,218
Total rig hours 153,599 251,522 216,320
======= ======= =======
Includes our other services comprised
of our drilling technology and top
drive manufacturing, directional
drilling, rig instrumentation and
(1) software services.
Includes earnings (losses), net from
unconsolidated affiliates, accounted
for using the equity method, of $6.2
million, $(2.5) million and $(.6)
million for the three months ended
March 31, 2015 and 2014 and December
(2) 31, 2014, respectively.
Includes earnings (losses), net from
unconsolidated affiliates, accounted
for using the equity method, of $.3
million, $.1 million and $.2 million
for the three months ended March 31,
2015 and 2014 and December 31, 2014,
(3) respectively.
Represents the elimination of inter-
segment transactions and earnings
(losses), net from unconsolidated
affiliates related to our equity
method investment in C&J Energy
(4) Services, Ltd.
Adjusted EBITDA is computed by
subtracting the sum of direct costs
and general and administrative
expenses from the sum of Operating
revenues and Earnings (losses) from
unconsolidated affiliates. These
amounts should not be used as a
substitute for the amounts reported
in accordance with GAAP. However,
management evaluates the performance
of our business units and the
consolidated company based on
several criteria, including adjusted
EBITDA and adjusted income (loss)
derived from operating activities,
because we believe that these
financial measures accurately
reflect our ongoing profitability.
There are limitations inherent in
using adjusted EBITDA as a measure
of overall profitability because it
excludes significant expense items.
To compensate for the limitations in
utilizing adjusted EBITDA as an
operating measure, management also
uses GAAP measures of performance,
including income from continuing
operations and net income, to
evaluate performance, but only with
respect to the Company as a whole
and not on a segment basis. A
reconciliation of this non-GAAP
measure to income (loss) from
continuing operations before income
taxes, which is a GAAP measure, is
provided in the table set forth
immediately following the heading
"Reconciliation of Non-GAAP
Financial Measures to Income (loss)
from Continuing Operations before
(5) Income Taxes".
Represents the elimination of inter-
segment transactions, unallocated
corporate expenses and earnings
(losses), net from unconsolidated
affiliates related to our equity
method investment in C&J Energy
(6) Services, Ltd.
Adjusted income (loss) derived from
operating activities is computed by
subtracting the sum of direct costs,
general and administrative expenses
and depreciation and amortization
from the sum of Operating revenues
and Earnings (losses) from
unconsolidated affiliates. These
amounts should not be used as a
substitute for the amounts reported
in accordance with GAAP. However,
management evaluates the performance
of our business units and the
consolidated company based on
several criteria, including adjusted
income (loss) derived from operating
activities, because it believes that
these financial measures accurately
reflect our ongoing profitability. A
reconciliation of this non-GAAP
measure to income (loss) from
continuing operations before income
taxes, which is a GAAP measure, is
provided in the table set forth
immediately following the heading
"Reconciliation of Non-GAAP
Financial Measures to Income (loss)
from Continuing Operations before
(7) Income Taxes".
Excludes well-servicing rigs, which
are measured in rig hours. Includes
our equivalent percentage ownership
of rigs owned by unconsolidated
affiliates. Rig years represent a
measure of the number of equivalent
rigs operating during a given
period. For example, one rig
operating 182.5 days during a 365-
(8) day period represents 0.5 rig years.
International rig years includes our
equivalent percentage ownership of
rigs owned by unconsolidated
affiliates, which totaled 2.5 years
during each of the three months
ended March 31, 2015 and 2014 and
(9) December 31, 2014.
(10) Rig hours represents the number of
hours that our well-servicing rig
fleet operated during the period.
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(Unaudited)
Three Months Ended
------------------
March 31, December 31,
--------- ------------
(In thousands) 2015 2014 2014
---- ---- ----
Adjusted EBITDA $374,466 $391,168 $445,692
Less: Depreciation and
amortization 281,019 282,127 293,572
Adjusted income (loss)
derived from operating
activities 93,447 109,041 152,120
------ ------- -------
Interest expense (46,601) (44,810) (43,697)
Investment income (loss) 969 980 1,596
Gains (losses) on sales
and disposals of long-
lived assets and other
income (expense), net
55,842 (1,476) (9,606)
Impairments and other
charges - - (1,010,423)
Income (loss) from
continuing operations
before income taxes $103,657 $63,735 $(910,010)
======== ======= =========
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSSES) PER SHARE
(Unaudited)
A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows:
Three Months Ended
------------------
March 31, December 31,
--------- ------------
(In thousands, except per share
amounts) 2015 2014 2014
---- ---- ----
BASIC EPS:
Income (loss) from continuing
operations, net of tax $124,362 $48,977 $(886,401)
Less: Net (income) loss
attributable to noncontrolling
interest 89 (573) (202)
Less: Earnings allocated to
unvested shareholders (2,031) (733) 13,881
------ ---- ------
Adjusted income (loss) from
continuing operations -basic
and diluted $122,420 $47,671 $(872,722)
Income (loss) from discontinued
operations, net of tax $(817) $1,515 $(4,467)
Weighted-average number of
shares outstanding-basic 285,361 296,210 284,938
Earnings (losses) per share:
Basic from continuing operations $.43 $.16 $(3.06)
Basic from discontinued
operations - .01 (.02)
Total Basic $.43 $.17 $(3.08)
---- ---- ------
DILUTED EPS:
Income (loss) from continuing
operations attributed to common
shareholders $122,420 $47,671 $(872,722)
Add: Effect of reallocating
undistributed earnings of
unvested shareholders 5 - -
--- --- ---
Adjusted income (loss) from
continuing operations
attributed to common
shareholders $122,425 $47,671 $(872,722)
Income (loss) from discontinued
operations $(817) $1,515 $(4,467)
Weighted-average number of
shares outstanding-basic 285,361 296,210 284,938
Add: dilutive effect of
potential common shares 812 2,840 -
Weighted-average number of
diluted shares outstanding 286,173 299,050 284,938
------- ------- -------
Diluted from continuing
operations $.43 $.16 $(3.06)
Diluted from discontinued
operations (.01) - (.02)
Total Diluted $.42 $.16 $(3.08)
---- ---- ------
Restricted stock grants that
contain non-forfeitable rights
to dividends are considered
participating securities. As
such, these grants are included
in our basic and diluted
earnings (losses) per share
computation using the two-
class method of accounting.
For all periods presented, the
computation of diluted earnings
(losses) per share excluded
outstanding stock options with
exercise prices greater than
the average market price of
Nabors' common shares because
their inclusion would have been
anti-dilutive and because they
were not considered
participating securities. The
average number of options that
were excluded from diluted
earnings (losses) per share
that would have potentially
diluted earnings (losses) per
share were 6,621,688, 7,853,509
and 11,485,314 shares during
the three months ended March
31, 2015 and 2014 and December
31, 2014, respectively. In any
period during which the average
market price of Nabors' common
shares exceeds the exercise
prices of these stock options,
such stock options are included
in our diluted earnings
(losses) per share computation
using the if-converted method
of accounting.
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) ITEMS EXCLUDING CERTAIN NON-CASH CHARGES
AND OTHER NON-OPERATIONAL ITEMS (NON-GAAP)
(Unaudited)
Charges and Non-Operational As adjusted
(In thousands, except per
share amounts) Actuals Items (Non-GAAP)
------- ----- ---------
Three Months Ended March 31, 2015
---------------------------------
Income (loss) from
continuing operations,
net of tax $124,362 $66,115 $58,247
Diluted earnings (losses)
per share from continuing
operations $0.43 $0.23 $0.20
Three Months Ended December 31, 2014
------------------------------------
Income (loss) from
continuing operations,
net of tax $(886,401) $(982,685) $96,284
Diluted earnings (losses)
per share from continuing
operations $(3.06) $(3.39) $0.33
NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SCHEDULE OF NON-CASH CHARGES AND OTHER NON-OPERATIONAL ITEMS (NON-GAAP)
(Unaudited)
Three Months Ended
------------------
March 31, December 31,
--------- ------------
Per Diluted Per Diluted
(In thousands, except per share
amounts) 2015 Share 2014 Share
---- ----- ---- -----
Net gain from the C&J Energy
Services transaction (1) $(61,885) $(.22) $ - $ -
Prior year tax benefits (2) (10,499) (.03) - -
Severance charges (3) 6,269 .02 - -
Retirements & impairments to
underutilized assets (4) - - 431,242 1.49
Goodwill and intangible asset
impairments (5) - - 359,611 1.24
Other non-operational items (6) - - 11,759 .03
Restructuring tax effect (7) - - 180,073 .63
Total Adjustments, net of tax $(66,115) (.23) $982,685 3.39
-------- ---- -------- ----
(1) Represents the net gain from the
C&J Energy Services transaction,
net of tax of ($9.3) million.
(2) Represents tax benefits related
to releases of tax provisions
and reserves in various
jurisdictions.
(3) Represents severance charges from
workforce reductions, net of tax
of $1.6 million.
(4) Represents retirements and
impairments related to
underutilized assets, net of tax
of $180.4 million.
(5) Represents impairments to
goodwill and intangible assets,
net of tax of $26.9 million.
Represents losses related to the
impairment of an equity
investment, debt buybacks and
transaction costs, net of tax of
(6) $2.9 million.
(7) Represents the tax effect of
internal restructuring.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nabors-announces-first-quarter-results-300069800.html
SOURCE Nabors Industries Ltd.
