NOW Inc. reports 1Q loss
NOW Inc. reported a first quarter net loss of $10 million, or 9 cents per share.
That compares to net income of $16 million, or 14 per fully diluted share, in the fourth quarter of 2014.
Excluding $9 million in acquisition and severance related charges, the net loss was $3 million.
Revenue for the quarter was $863 million, a decrease of 14 percent from the fourth quarter of 2014.
In the quarter, the company completed the acquisition of John MacLean & Sons Electrical, a UK-based distributor of marine and industrial electrical products, lighting systems and cables for renewable-energy, petrochemical, process, marine, industrial, infrastructure and onshore and offshore energy applications worldwide.
The company also completed the acquisition of Machine Tools Supply, a cutting tool and machine shop specialist providing comprehensive inventory management programs to the industrial and aerospace markets.
“The first quarter of 2015 was a period of rapid decline in North American rig count, and as a result, the company’s revenues and product margins were impacted accordingly. Revenue and adjusted EBITDA held up better than we had been expecting considering the steep decline in market activity," said Robert Workman, president and CEO. "We have and will continue to take steps to respond to market conditions, including actions to improve efficiencies and our balance sheet. We believe we are well positioned to operate effectively through this cycle. While the timing of when this market recovers is still uncertain, we will continue to position our Company for long-term growth and success.
First quarter revenues for the United States were $601 million, a decrease of 11 percent from the fourth quarter of 2014 and a decrease of 15 percent from the first quarter of 2014.
Revenues for the first quarter of 2015 for Canada were $116 million, down 36 percent compared to fourth quarter 2014 results and down 39 percent from the first quarter of 2014.
International operations generated first quarter revenues of $146 million, which were down one percent from the fourth quarter of 2014 and down 20 percent from the first quarter of 2014.
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