Results of Operations and Financial Condition.
On July 31, 2018, Nabors Industries Ltd. (Nabors or the Company) issued a press release announcing
its results of operations for the three-month period ended June 30, 2018. A copy of that release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The press release includes forward-looking statements within the meaning of the Securities Act of 1933, as amended (the Securities Act) and the Securities Exchange Act of 1934, as amended (the Exchange Act). Such forward-looking statements are subject to risks and uncertainties, as disclosed from time to time in the Companys filings with the Securities and Exchange Commission. As a result of these factors, the Companys actual results may differ materially from those indicated or implied by such forward-looking statements.
Nabors also presented in the press release certain non-GAAP financial measures. Nabors presented its adjusted EBITDA, adjusted operating income (loss), and net debt for all periods presented in the release. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America (GAAP). Adjusted EBITDA is computed by subtracting the sum of direct costs, general and administrative expenses, and research and engineering expenses from the sum of operating revenues. Adjusted operating income (loss) is computed similarly, but also subtracts depreciation and amortization expenses from the sum of operating revenues.
In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash and cash equivalents and short-term investments. As part of the press release information, Nabors has provided a reconciliation of adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes and net debt to total debt, which are the most closely comparable GAAP financial measures.
The Company included its adjusted EBITDA and adjusted operating income (loss) in the release because management evaluates the performance of the Companys operating segments and consolidated results based on several criteria, including these non-GAAP measures, because it believes that these financial measures accurately reflect the Companys ongoing profitability and performance. In addition, Nabors included net debt in the release because management uses net debt as a measure of the Companys liquidity. There are, however, certain limitations to these measures and therefore they should be considered in addition to and not as an alternative to the Companys results in accordance with GAAP.
On August 1, 2018, Nabors will hold a conference call at 10:00 a.m. central time, regarding the Companys financial results for the first quarter ended June 30, 2018. Information about the call including dial-in information, recording and replay of the call, and supplemental information is available on the Investor Relations page of www.nabors.com.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that Section
or Sections 11 and 12(a)(2) of the Securities Act.