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NOW Inc., Second Quarter 2019 KEY TAKEAWAYS
KEY TAKEAWAYS© 2019 COPYRIGHT DISTRIBUTION NOW
Disclosure Statement
Statements made in the course of this presentation that state the Company's or management's intentions, hopes, beliefs,
expectations or predictions of the future are forward -looking statements. It is important to note that the Company's actual
results could differ materially from those projected in such forward -looking statements. Additional information concerning
factors that could cause actual results to differ materially from those in the forward -looking statements is contained from
time -to-time in the Company's filings with the U.S. Securities and Exchange Commission (SEC). Any decision regarding the
Company or its securities should be made upon careful consideration of not only the information here presented, but also other available information, including the information filed by the Company with the SEC. Copies of these filings may be
obtained by contacting the Company or the SEC.
In an effort to provide investors with additional information regarding our results as determined by U.S. Generally Accepted Accounting Principles (GAAP), we disclose various non- GAAP financial measures in our quarterly earnings press
releases and other public disclosures. We use these non- GAAP financial measures internally to evaluate and manage the
Company’s operations because we believe it provides useful supplemental information regarding the Company’s ongoing
economic performance. The non -GAAP financial measures include: ( i) earnings before interest, taxes, depreciation and
amortization (EBITDA) excluding other costs, (ii) net income excluding other costs and (iii) diluted earnings per share excluding other costs. Each of these financial measures excludes the impact of certain other costs and therefore has not
been calculated in accordance with GAAP . A reconciliation of each non- GAAP financial measure to its most comparable
GAAP financial measure can be found in our quarterly earnings press release.
August 2019 2© 2019 COPYRIGHT DISTRIBUTION NOW
CEO Perspective: Second Quarter Key Takeaways
Generated $66M in quarterly free cash flow
EBITDA excluding other costs at $27M
U.S. Process Solutions improved YOY revenue by 36% expanding our
customer base servicing upstream and midstream markets
Closed two small acquisitions, bolstering U.S. Process Solutions
Continuing cost control and operational efficiencies
August 2019 3© 2019 COPYRIGHT DISTRIBUTION NOW
Maintained flat YOY top line with U.S. rig count decline while exhibiting solid expense controlSecond Quarter Results
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Quarterly revenue of $776 essentially flat YOY , with global rig count up 3%
U.S. up 1% YOY versus rig count decline of 5%
Canada down 1% YOY , despite a 22% decline in rig count
International down 5% YOY , on 15% rig count growth
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