Business Context and Reporting Period
Company: Nabors Industries Ltd.
Filing Type: Form 8-K (Current Report)
Date of Report: April 26, 2017
Reporting Period: Three months ended March 31, 2017
This filing announces the issuance of a press release detailing the company's results of operations for the first quarter of 2017. The filing also notes an upcoming conference call with shareholders and analysts scheduled for April 27, 2017.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it references a press release (Exhibit 99.1) containing these figures.
The company utilizes the following non-GAAP financial measures to evaluate performance:
- Adjusted EBITDA: Calculated as operating revenues minus direct costs, general and administrative expenses, and research and engineering expenses.
- Adjusted Operating Income (Loss): Calculated similarly to Adjusted EBITDA but also subtracts depreciation and amortization expenses.
- Net Debt: Calculated as total debt minus cash, cash equivalents, and short-term investments.
Reconciliations of these non-GAAP measures to the most closely comparable GAAP measures are provided in the referenced press release.
Material Changes
The filing text does not contain specific data regarding material changes in financial position or results of operations compared to the prior comparable period. Investors must refer to the attached press release (Exhibit 99.1) for comparative analysis.
Guidance, Outlook, and Risks
Forward-Looking Statements: The press release and investor presentation slides contain forward-looking statements subject to risks and uncertainties. Actual results may differ materially from those indicated.
Management Commentary: Management evaluates operating segments and consolidated results using the non-GAAP measures described above, believing they accurately reflect ongoing profitability. However, the filing notes limitations to these measures and advises they be considered in addition to, not as an alternative to, GAAP results.
Legal Status of Information: Information in Item 2.02 and Item 7.01, including the press release and investor slides, is furnished and not deemed "filed" for purposes of Section 18 of the Exchange Act or Sections 11 and 12(a)(2) of the Securities Act.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific Q1 2017 revenue, net income, and cash flow figures.
- Examine the reconciliation tables in the press release to understand the adjustments made to derive Adjusted EBITDA and Adjusted Operating Income.
- Verify the specific components of Net Debt as defined by the company versus standard GAAP debt metrics.
- Consult Exhibit 99.2 (Investor Information) for the slides presented at the April 27, 2017 conference call for additional context on outlook and risks.
- Confirm the impact of any forward-looking statements on future performance expectations.