National Oilwell Varco, Inc. (NYSE:NOV) Q4 2014 Earnings Conference Call - Final Transcript
Feb 03, 2015 • 09:00 am ET
Welcome to the National Oilwell Varco Fourth Quarter and Full Year Results Conference Call. My name is the Lorraine and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Please note that this conference is being recorded. We'll now turn the call over to Mr. Loren Singletary, Vice President of Investor and Industry Relations. Mr. Singletary, you may begin.
Welcome everyone to the National Oilwell Varco fourth quarter and full year 2014 Earnings Conference Call. With me today is Clay Williams, President, CEO and Chairman of National Oilwell Varco; and Jeremy Thigpen and Senior Vice President and Chief Financial Officer.
Before we begin this discussion of National Oilwell Varco's financial results for its fourth quarter and fiscal year ended December 31, 2014.
(Forward-looking Cautionary Statements) Further information regarding these as well as supplemental financial and operating information may be found within our press release on our website at www.nov.com or in our filings with the SEC. Later on this call, we will answer your questions, which we ask you to limit to two in order to permit more participation. Now let me turn the call over to Clay.
Clay C. Williams
Welcome everyone to National Oilwell Varco's fourth quarter 2014 Earnings Conference Call. This morning we announced that the company earned $1.39 per fully diluted share in its fourth quarter ended 31, 2014. Excluding transaction and asset impairment charges, earnings were a record $1.69 per fully diluted share, an increase of 4% sequentially and 13% year-over-year.
Fourth quarter revenues were $5.7 billion, up 2% sequentially and up 8% year-over-year. Fourth quarter EBITDA excluding other items was $1.2 billion or 21.3% of sales. EBITDA on this basis improved 1% sequentially and 8% year- over-year. For the full year 2014. For the full year 2014, GAAP earnings per fully diluted share were $5.82, excluding other items and impairment charges, earnings were a record $6.07 per fully diluted share of 12% from the prior year. EBITDA for the year excluding other items in impairment charges, was a record $4.6 billion, up 14% from the prior year on the same basis.
Looking forward, we obviously face some significant challenges in the markets that we serve, and we will be discussing these through the next hour. But first I want to take a moment and reflect on the company's accomplishments in 2014, and say thanks to the world's best Oilfield services team.
NOV completed the spin-out of our distribution services business to our shareholders as NOW Inc. in May, which led us to reorganize our remaining business along four new reporting segments and promote several executives and into new leadership positions.
Our new segment architecture is around customer access which opened up new strategic possibilities for us. So our leadership team spent the summer developing long-term strategies for each business. We presented these at our first Investor Day in November, where we also laid out ambitious 5-year goals. 2014 also saw