NOW Inc. reports Q1 loss
NOW Inc. reported a net loss of $63 million, or 59 cents per fully diluted share, in the first quarter, compared to net loss of $10 million, or 9 cents in the same period of 2015.
Excluding other costs, the net loss was $38 million. Other costs in the quarter included $4 million in acquisition-related and severance charges and an after-tax charge of $23 million related to a deferred tax asset valuation allowance.
First quarter revenues for the United States were $357 million, down 18 percent from the fourth quarter of 2015, or down 21 percent when ignoring the favorable impact of acquisitions, amid 26 percent fewer rigs being active. Revenues decreased 41 percent from the first quarter of 2015, or 49 percent when excluding acquisitions, outperforming the U.S. rig count decline, where rig counts tumbled 60 percent in the same period.
“Market conditions entering 2016 remain difficult, as reflected in the continuing decline in North American rig count. In the current environment, we continue to focus on the fundamentals of our business: maximizing cash generation by improving collections, monetizing inventory, curbing excess costs and integrating recent acquisitions, while working to enhance our services and solutions for our existing and prospective customers," said Robert Workman, president and CEO.