DNOW Inc. (DNOW) Fiscal 2024 First Quarter Earnings Call
Earnings Highlights
* Revenue of $477.4 million, up 17.4% year-over-year
* Net income of $54.9 million, or $0.65 per share, compared to $36.9 million, or $0.44 per share, in Q1 2023
* Adjusted EBITDA of $72.0 million, up 20.3% year-over-year
Operational Highlights
* Strong demand for services across all product lines
* Increased utilization and pricing
* Expansion into new geographic markets
Product Line Performance
* Drilling services revenue increased by 22.4% to $261.1 million
* Production services revenue increased by 13.7% to $147.3 million
* Rental and equipment sales revenue increased by 15.6% to $69.0 million
Outlook
* Positive outlook for the remainder of fiscal 2024
* Continued growth in drilling and production activity
* Expansion into new markets and product lines
Financial Position
* Strong financial position with $200.6 million in cash and cash equivalents
* Total debt of $452.8 million, a decrease from $468.6 million in Q1 2023
* Net debt-to-equity ratio of 0.8x
Analyst Questions and Answers
* Analyst Question 1: What are the key drivers of the strong revenue growth in Q1?
* DNOW Response: Increased drilling and production activity, favorable pricing, and expansion into new markets.
* Analyst Question 2: How are you managing supply chain disruptions and cost inflation?
* DNOW Response: Strong relationships with suppliers, proactive inventory management, and cost-cutting initiatives.
* Analyst Question 3: What are the company’s plans for further expansion in the future?
* DNOW Response: Continued organic growth, selective acquisitions, and geographic expansion.
Conclusion
DNOW Inc. reported strong financial and operational results in the first quarter of fiscal 2024. The company’s positive outlook and strong financial position position it well for continued growth and success in the future.
Kind regards
S. Sing