Business Context and Reporting Period
Company: NABORS INDUSTRIES LTD.
Filing Type: Form 8-K (Current Report)
Date of Report: November 10, 2014
Subject: Announcement of revised third-quarter and nine-month results of operations ended September 30, 2014.
Key Financial Metrics
This filing serves as a notification of a revision to previously reported financial data rather than a primary source of new financial figures. The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. These metrics are contained within the referenced press release (Exhibit 99.1) which is incorporated by reference.
Material Changes Versus Prior Period
- Revision Cause: The revision is due to a change in the non-cash income tax provision previously announced in the earnings press release issued on October 21, 2014.
- Scope of Change: The revision affects the third-quarter and nine-month periods ended September 30, 2014.
- Impact: The new press release replaces in its entirety the financial information accompanying the October 21, 2014 release.
Guidance, Outlook, and Non-GAAP Measures
Non-GAAP Measures: The company presented "Adjusted EBITDA" and "Adjusted income (loss) derived from operating activities" in the accompanying press release. Management utilizes these measures to evaluate business unit performance and consolidated company profitability.
- Adjusted EBITDA Calculation: Operating revenues plus Earnings (losses) from unconsolidated affiliates, minus direct costs and general and administrative expenses.
- Adjusted Income Calculation: Similar to Adjusted EBITDA but also subtracts depreciation and amortization expenses.
Forward-Looking Statements: The filing includes standard disclaimers that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those indicated.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for the specific revised numerical values for revenue, net income, and EPS for Q3 and the nine months ended September 30, 2014.
- Verify the specific dollar amount of the change in the non-cash income tax provision that necessitated this revision.
- Examine the reconciliation tables provided in the press release to understand the adjustments made to derive Adjusted EBITDA and Adjusted Income from GAAP measures.
- Compare the revised figures against the original October 21, 2014 earnings release to quantify the magnitude of the restatement.