Business Context and Reporting Period
Company: NABORS INDUSTRIES LTD.
Filing Type: Form 8-K (Current Report)
Date of Report: October 21, 2014
Reporting Period: Quarter and nine-month period ended September 30, 2014
This filing announces the issuance of a press release detailing the company's results of operations for the specified periods. The filing also notes an upcoming conference call with shareholders and analysts scheduled for October 22, 2014.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the referenced press release (Exhibit 99.1) and investor presentation slides (Exhibit 99.2), which are incorporated by reference but not included in the text of this 8-K.
The company reports the following non-GAAP financial measures in its press release:
- Adjusted EBITDA: Computed by subtracting direct costs and general/administrative expenses from operating revenues and earnings from unconsolidated affiliates.
- Adjusted Income (Loss) Derived from Operating Activities: Computed similarly to Adjusted EBITDA but also subtracts depreciation and amortization expenses.
The filing includes a reconciliation of these non-GAAP measures to the nearest comparable GAAP measure (income/loss from continuing operations before income taxes) and a schedule of non-cash charges impacting earnings per share.
Material Changes
The filing text does not explicitly state material changes versus prior periods. It references a schedule of non-cash charges and other non-operational items recorded during the three-month periods ended September 30, 2014, and June 30, 2014, but does not detail the specific variances in the text provided.
Guidance, Outlook, and Risks
Forward-Looking Statements: The press release contains forward-looking statements subject to risks and uncertainties. Management cautions that actual results may differ materially from those indicated or implied by these statements.
Management Commentary: Management utilizes Adjusted EBITDA and Adjusted Income (Loss) derived from operating activities to evaluate business unit and consolidated company performance, viewing them as accurate reflections of ongoing profitability. However, the company notes limitations to these measures and advises they be considered in addition to, not as an alternative to, GAAP results.
Upcoming Events: A conference call with shareholders and analysts is scheduled for October 22, 2014, to discuss the results of operations.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific revenue, profit, and cash flow figures for the quarter and nine months ended September 30, 2014.
- Examine the reconciliation tables in the press release to understand the adjustments made to derive non-GAAP Adjusted EBITDA and Adjusted Income.
- Verify the schedule of non-cash charges and their impact on earnings per share for the periods ended September 30, 2014, and June 30, 2014.
- Review Exhibit 99.2 (Investor Information) for the slides presented at the October 22, 2014, conference call for additional context on outlook and risks.