BAKER HUGHES Q1 2015 RESULTS
Revenue for the first quarter of 2015 was $4.6 billion, down 20% compared to the first quarter of 2014.
On a GAAP basis, net loss attributable to Baker Hughes for the first quarter was $589 million or $1.35 per diluted share.
Adjusted EBITDA (a non-GAAP measure) for the first quarter of 2015 was $458 million, a decrease of $589 millionor 56% compared to the first quarter of 2014.
Adjusted net loss (a non-GAAP measure) for the first quarter of 2015 was $32 million or $0.07 per diluted share. Adjusted net loss for the first quarter excludes $772 million before-tax or $557 million after-tax ($1.28 per diluted share) in adjustments. The adjustments include restructuring charges of $573 million before-tax or $415 millionafter-tax ($0.95 per diluted share) associated with severance charges, facility closures, asset impairments, and contract terminations; $171 million before-tax or $122 million after-tax ($0.28 per diluted share) for inventory adjustments; and $28 million before-tax or $20 million after-tax ($0.05 per diluted share) relating to merger-related costs.
Additional charges of $157 million before-tax, or $133 million after-tax ($0.30 per diluted share), were incurred in the first quarter, which includes $105 million relating to reserves for doubtful accounts and $52 million associated with inventory reserves. Although these charges were significant and largely market-driven, they were not categorized as adjustments, and therefore not excluded from adjusted net operating loss.
Free cash flow for the current quarter was $22 million, compared to ($36) million for the first quarter of 2014.
For the first quarter, capital expenditures were $315 million, compared to $439 million in the first quarter of 2014. Depreciation and amortization expense for the first quarter was $460 million, compared to $437 million in the prior year quarter.
Excluding merger-related costs of $28 million in the first quarter, corporate costs were $49 million, compared to$65 million in the first quarter of 2014. The reduction in corporate costs is primarily the result of recent cost reduction measures.
Consolidated Condensed Statements of Income (Loss) |
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Three Months Ended |
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March 31, |
December 31, |
|||||||
(In millions, except per share amounts) |
2015 |
2014 |
2014 |
|||||
Revenue |
$ |
4,594 |
$ |
5,731 |
$ |
6,635 |
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Costs and expenses: |
||||||||
Cost of revenue |
4,342 |
4,720 |
5,174 |
|||||
Research and engineering |
138 |
143 |
152 |
|||||
Marketing, general and administrative |
315 |
316 |
294 |
|||||
Restructuring charges |
573 |
— |
— |
|||||
Total costs and expenses |
5,368 |
5,179 |
5,620 |
|||||
Operating (loss) income |
(774) |
552 |
1,015 |
|||||
Interest expense, net |
(54) |
(57) |
(57) |
|||||
(Loss) income before income taxes |
(828) |
495 |
958 |
|||||
Income taxes |
235 |
(159) |
(291) |
|||||
Net (loss) income |
(593) |
336 |
667 |
|||||
Net loss (income) attributable to noncontrolling interests |
4 |
(8) |
(4) |
|||||
Net (loss) income attributable to Baker Hughes |
$ |
(589) |
$ |
328 |
$ |
663 |
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