Positioned to Capitalize on Growth Opportunities



KEY POINTS
  • We hosted a fireside chat on December 14, 2022, with senior leadership of NOW, Inc. We were joined by David Cherechinsky, President, Chief Executive Officer, and Director, and Brad Wise, Vice President Digital Strategy and Investor Relations.
  • Solid financial and operating performance in the first nine months of 2022 reflected the benefits accrued by management’s efforts to transform DistributionNOW’s business model in response to evolving energy and industrial markets.
  • The company’s goal is to be the leader in supply chain management for the markets it serves by providing superior customer service. A key element of the goal is to supply the products customers need in the quantities required, where they are needed, and in the timeframe desired. DistributionNOW delivers value through a combination of products and supply chain services to customers, while maximizing the efficiency of its fulfillment model.
  • The fulfillment model shift to supercenters has increased DistributionNOW’s efficiency and the ability to serve customers’ needs and decreased the company’s inventory risk.
  • DistributionNOW offers customers a variety of digital solutions to increase the fulfillment model efficiency and enhance relationships in the process solutions businesses. Lowering transaction costs and fostering close integration with vendors and customers yield financial benefits for all parties.
  • To leverage the business’s improved financial performance and strong balance sheet, management is on the hunt for acquisitions. Acquisitions must improve DistributionNOW’s margin mix and offer complementary business lines that strengthen relationships with vendors and customers.

THE COMPANY

NOW, Inc. is a global distribution company serving the needs of customers across all segments of the energy value chain and other industries, including chemical processing, mining, utilities, and renewables. The company operates through the DistributionNOW and DigitalNOW® (DNOW) brands. DistributionNOW operates from ~175 locations in 20 countries to supply thousands of products sources from vendors in more than 40 countries to customers in ~80 countries. DistributionNOW’s overarching goal is to be recognized as the leader in supply chain management for the markets it serves by providing superior customer service. To deliver on that goal, the company leverages employees, processes, supplier relationships, innovative technology, and information. Providing customers with high-quality products they need when they need them can help customers maximize returns on their investments and make DistributionNOW their preferred supply chain partner. Our November 14, 2022, initiation of coverage report can be accessed here.

EXECUTIVE DISCUSSION

Jeff Robertson: Thank you for joining us today. My name is Jeff Robertson. I am the Managing Director for Natural Resources at Water Tower Research. It is a pleasure to be joined today by NOW, Inc., or as most people know the company, DistributionNOW. Our guests today are David Cherechinsky, President and CEO, and Brad Wise, Vice President of Digital Strategy and Investor Relations.

Before we get started, I would like to mention that today’s discussion could include forward-looking statements. Participants can find DistributionNOW’s disclosures regarding forward-looking statements in the company’s corporate presentation and SEC filings under the Investor Relations tab of its homepage.

DistributionNOW is a global distribution company serving the needs of customers across all segments of the energy value chain and other industries, including chemical processing, mining, utilities, and renewables. The company operates through the DistributionNOW and ...

ABOUT THE EXECUTIVES
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David Cherechinsky

President, Chief Executive Officer, and Director

NOW, Inc.

David Cherechinsky is the President and Chief Executive Officer for DistributionNOW as well as a Director. Prior to his current role, Mr. Cherechinsky served as chief financial officer for DistributionNOW from February 2018 to May 2020 and chief accounting officer from May 2014 to February 2018. He previously served as National Oilwell Varco’s senior vice president of finance for the Distribution & Transmission business segment from 2011 to 2014, and was the vice president of finance for the Distribution Services business unit from 2003 to 2011. Mr. Cherechinsky began his career at National Oilwell Varco in 1989, and has held various corporate roles including internal auditor, credit management, and business analyst.

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Brad Wise

Vice President, Digital Strategy and Investor Relations

NOW, Inc.

Brad Wise is Vice President, Digital Strategy and Investor Relations for DistributionNOW. Prior to his current role, Mr. Wise was voce president of business development and marketing for National Oilwell Varco’s Distribution Services business unit when he joined in 2012 as part of National Oilwell Varco’s acquisition of Wilson Supply. From 2009 to 2011, he served as vice president of business development and marketing for Wilson Supply. From 2005 – 2009, Mr. Wise was vice president at Maverick Technologies, responsible for sales, business development, and marketing. From 1996 to 2005, he held various roles withing sales management and business development with Dresser Industries, Halliburton Company, and Dresser Inc.

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