Summary
SLB Limited/NV (SLB) filed an 8-K on July 16, 2015, to report its Second-Quarter 2015 financial results. The filing primarily references a press release and supplemental information (Exhibit 99.1) that contains both GAAP and non-GAAP financial measures. Investors should note the company's reported GAAP income from continuing operations attributable to Schlumberger was $1.12 billion for Q2 2015, a decrease from $1.80 billion in Q2 2014, with diluted EPS from continuing operations at $0.88 compared to $1.37 in the prior year's quarter. The report also introduces and defines several non-GAAP financial measures that management uses for operational evaluation, including Net Debt, adjusted income measures (excluding charges and credits), and Free Cash Flow. The company emphasized that these non-GAAP measures are supplementary to GAAP figures and should not be considered a substitute for them. The primary driver for this filing is the disclosure of the company's operational and financial performance for the second quarter of 2015.
Key Highlights
- 1SLB reported Q2 2015 GAAP income from continuing operations of $1.12 billion.
- 2Q2 2015 diluted EPS from continuing operations was $0.88, down from $1.37 in Q2 2014.
- 3The filing provides definitions for key non-GAAP financial measures used by management, including Net Debt, adjusted income/EPS, and Free Cash Flow.
- 4Management uses non-GAAP measures to better evaluate operational trends period-over-period.
- 5Free Cash Flow is defined as cash flow from operations less capital expenditures, SPM investments, and capitalized multiclient seismic data.
- 6The information was furnished via Exhibit 99.1, a Second-Quarter 2015 Results Press Release and Supplemental Information.
- 7The report clarifies that the disclosed information, while important, is not deemed "filed" for Section 18 purposes unless expressly incorporated into other filings.