Newpark Resources Reports Net Income Of $0.20 Per Diluted Share For The Third Quarter 2012

Newpark Resources Reports Net Income Of $0.20 Per Diluted Share For The Third
                                 Quarter 2012

PR Newswire

THE WOODLANDS, Texas, Oct. 25, 2012

THE WOODLANDS, Texas, Oct. 25, 2012 /PRNewswire/ -- Newpark Resources, Inc.
(NYSE: NR) today announced results for its third quarter ended September 30,
2012. Total revenues for the third quarter of 2012 were $259.6 million
compared to $245.8 million for the second quarter of 2012 and $261.2 million
for the third quarter of 2011. Net income for the third quarter of 2012 was
$18.7 million, or $0.20 per diluted share, compared to $14.5 million, or $0.15
per diluted share, for the second quarter of 2012, and $23.0 million, or $0.23
per diluted share, for the third quarter of 2011.

The third quarter 2012 provision for income taxes was $7.4 million, reflecting
an effective tax rate of 28.3%. The provision included a $1.0 million benefit
($0.01 per diluted share) associated with increased U.S. tax deductions
identified for prior years, along with an increase in estimated U.S. tax
deductions available for the 2012 fiscal year.

Paul Howes, Newpark's President and Chief Executive Officer, stated, "We are
pleased with our performance in the third quarter, which was achieved despite
a softening market in North America. In particular, the results in our Mats
and Integrated Services segment were outstanding, achieving record levels in
both revenue and operating income during the quarter. Operating results in
our fluids business also improved sequentially, driven by strengthening in our
international operations as all international regions posted sequential
improvements in both revenues and operating income. Meanwhile, not unlike
other service companies, our North American fluids business is facing dual
headwinds of the declining U.S. rig count and a slow seasonal recovery in
Canada. While our profit improvement initiatives in this business have
continued, their impact has been somewhat muted by the North American market
conditions.

"In the last few quarters, we have also focused on reducing customer
receivables in our U.S. fluids business, and we are pleased to report that
receivables in this business declined by $34 million during the third quarter,
contributing to a $38 million reduction in long-term debt during the period.

"Looking ahead, we remain focused on introducing differentiating technologies
in both our fluids and mats businesses. To that end, we expect to complete
our first Evolution® well outside of North America, and we also anticipate
having our spill containment system ready for deployment in the field by the
end of the year," concluded Howes.

SEGMENT RESULTS
The Fluids Systems and Engineering segment generated revenues of $211.5
million in the third quarter of 2012 compared to $202.4 million in the second
quarter of 2012 and $216.2 million in the third quarter of 2011. Segment
operating income was $14.8 million (7.0% operating margin) in the third
quarter of 2012 compared to $13.5 million in the second quarter of 2012 (6.7%
operating margin) and $25.6 million (11.9% operating margin) in the third
quarter of 2011.

The Mats and Integrated Services segment generated revenues of $35.1 million
in the third quarter of 2012 compared to $30.1 million in the second quarter
of 2012 and $30.2 million in the third quarter of 2011. Segment operating
income was $16.0 million (45.6% operating margin) in the third quarter of 2012
compared to $13.1 million in the second quarter of 2012 (43.5% operating
margin) and $14.5 million (48.1% operating margin) in the third quarter of
2011.

The Environmental Services segment generated revenues of $13.1 million in the
third quarter of 2012 compared to $13.3 million in the second quarter of 2012
and $14.9 million in the third quarter of 2011. Segment operating income was
$3.1 million (23.6% operating margin) in the third quarter of 2012 compared to
$3.5 million in the second quarter of 2012 (26.4% operating margin) and $5.0
million (33.4% operating margin) in the third quarter of 2011.

SHARE REPURCHASE PROGRAM
Consistent with its previously-announced program and in accordance with a
trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, the
Company repurchased a total of 1,640,458 outstanding shares of Newpark common
stock at an average cost of $6.62 per share during the third quarter.
Combined with purchases completed earlier in the year, the Company has
repurchased a total of 5.2 million outstanding shares at an average cost of
$6.80 through the end of the third quarter 2012.

CONFERENCE CALL
Newpark has scheduled a conference call to discuss third quarter 2012 results,
which will be broadcast live over the Internet, on Friday, October 26, 2012 at
10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call,
dial 480-629-9692 and ask for the Newpark Resources conference call at least
10 minutes prior to the start time, or access it live over the Internet at
www.newpark.com. For those who cannot listen to the live call, a replay will
be available through November 9, 2012 and may be accessed by dialing (303)
590-3030 and using pass code 4567351#. Also, an archive of the webcast will
be available shortly after the call at www.newpark.com for 90 days.

Newpark Resources, Inc. is a worldwide provider of drilling fluids, temporary
worksites and access roads for oilfield and other commercial markets, and
environmental waste treatmentsolutions. For more information, visit our
website at www.newpark.com.

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act that are based on management's
current expectations, estimates and projections. All statements that address
expectations or projections about the future, including Newpark's strategy for
growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the forward-looking
statements may be identified by words like "expects," "anticipates," "plans,"
"intends," "projects," "indicates," and similar expressions. These statements
are not guarantees of future performance and involve a number of risks,
uncertainties and assumptions. Many factors, including those discussed more
fully elsewhere in this release and in documents filed with the Securities and
Exchange Commission by Newpark, particularly its Annual Report on Form 10-K
for the year ended December 31, 2011, as well as others, could cause results
to differ materially from those stated. These risk factors include, but are
not limited to, the availability of raw materials and skilled personnel, the
impact of restrictions on offshore drilling activity in the Gulf of Mexico,
our customer concentration and cyclical nature of our industry, our market
competition, the cost and continued availability of borrowed funds, our
international operations, legal and regulatory matters, including
environmental regulations, inherent limitations in insurance coverage,
potential impairments of long-lived intangible assets, technological
developments in our industry, the impact of severe weather, particularly in
the U.S. Gulf Coast, and our ability to execute our business strategy and make
successful capital investments and business acquisitions. Newpark's filings
with the Securities and Exchange Commission can be obtained at no charge at
www.sec.gov, as well as through our website at www.newpark.com.

Contacts: Gregg Piontek, VP & CFO
Newpark Resources, Inc.
281-362-6800

Ken Dennard, Managing Partner
Karen Roan, SVP
Dennard Rupp Gray & Lascar, LLC
713-529-6600



Newpark Resources, Inc.
Consolidated Statements of Operations
(Unaudited)        Three Months Ended                      Nine Months Ended
(In thousands,     September30,  June30,  September30,  September30,  September30,
except per share
data)              2012           2012      2011           2012           2011
Revenues           $ 259,599      $         $ 261,193      $ 767,691      $ 694,666
                                  245,756
Cost of revenues   210,276        201,534   201,272        626,712        539,185
Selling, general
and                20,878         19,944    20,802         62,135         57,770
administrative
expenses
Other operating    (311)          (477)     (60)           (802)          (1,012)
income, net
Operating income  28,756         24,755    39,179         79,646         98,723
Foreign currency   185            461       485            416            340
exchange loss
Interest expense,  2,416          2,553     2,464          7,337          6,821
net
Income from
operations before  26,155         21,741    36,230         71,893         91,562
income taxes
Provision for      7,413          7,278     13,233         23,054         33,431
income taxes
Net income        $  18,742     $        $  22,997     $  48,839     $  58,131
                                  14,463
Income per common  $    0.22   $      $    0.25   $    0.55   $    0.65
share -basic:                     0.16
Income per common  $    0.20   $      $    0.23   $    0.50   $    0.58
share -diluted:                   0.15
Calculation of
Diluted EPS:
Net income        $  18,742     $        $  22,997     $  48,839     $  58,131
                                  14,463
Assumed
conversion of      1,396          1,283     1,236          3,944          3,674
Senior Notes
Adjusted net       $  20,138     $        $  24,233     $  52,783     $  61,805
income                           15,746
Weighted average
number of common   86,423         88,600    90,212         88,491         89,877
shares
outstanding-basic
Add: Dilutive
effect of stock
options            695            457       1,025          756            883
andrestricted
stock awards

Dilutive effect    15,682         15,682    15,682         15,682         15,682
of Senior Notes
Diluted weighted
average number of  102,800        104,739   106,919        104,929        106,442
common shares
outstanding
Income per common  $    0.20   $      $    0.23   $    0.50   $    0.58
share - diluted                   0.15



Newpark Resources, Inc.
Operating Segment Results
(Unaudited)                      Three Months Ended
                                 September 30,  June 30,   September 30,
(In thousands)                   2012           2012       2011
Revenues
 Fluids systems and engineering  $ 211,457      $ 202,388  $ 216,160
 Mats and integrated services    35,067         30,071     30,179
 Environmental services          13,075         13,297     14,854
 Total revenues                  $ 259,599      $ 245,756  $ 261,193
Operating income (loss)
 Fluids systems and engineering  $ 14,798      $ 13,480  $ 25,648
 Mats and integrated services    15,992         13,075     14,509
 Environmental services          3,089          3,514      4,958
 Corporate office                (5,123)        (5,314)    (5,936)
 Total operating income         $ 28,756      $ 24,755  $ 39,179
Segment operating margin
 Fluids systems and engineering  7.0%           6.7%       11.9%
 Mats and integrated services    45.6%          43.5%      48.1%
 Environmental services          23.6%          26.4%      33.4%



Newpark Resources, Inc.
Consolidated Balance Sheets
(Unaudited)
                                                   September 30,  December 31,
(In thousands, except share data)                  2012           2011
ASSETS
 Cash and cash equivalents                         $  35,457     $  25,247
 Receivables, net                                  312,040        328,590
 Inventories                                       181,188        175,929
 Deferred tax asset                                14,438         13,224
 Prepaid expenses and other current assets         11,361         10,828
         Total current assets                      554,484        553,818
 Property, plant and equipment, net               247,329        231,055
 Goodwill                                          75,796         71,970
 Other intangible assets, net                     18,317         20,850
 Other assets                                      8,529          9,144
         Total assets                              $ 904,455      $ 886,837
LIABILITIES AND STOCKHOLDERS' EQUITY
 Short-term debt                                   $    799   $   2,232
 Accounts payable                                  95,670         97,168
 Accrued liabilities                               36,767         47,443
         Total current liabilities                 133,236        146,843
 Long-term debt, less current portion              200,838        189,876
 Deferred tax liability                            43,501         46,844
 Other noncurrent liabilities                      13,821         5,428
         Total liabilities                         391,396        388,991
 Common stock, $0.01 par value, 200,000,000
 shares authorized
         and 95,652,486 and 94,497,526 shares      957            945
         issued, respectively
 Paid-in capital                                   482,886        477,204
 Accumulated other comprehensive (loss) income     (3,042)        789
 Retained earnings                                83,822         34,983
 Treasury stock, at cost; 8,035,100 and 2,803,987  (51,564)       (16,075)
 shares, respectively
         Total stockholders' equity                513,059        497,846
 Total liabilities and stockholders' equity        $ 904,455      $ 886,837



Newpark Resources, Inc.
Consolidated Statements of Cash Flows
(Unaudited)                                    Nine Months Ended September 30,
(In thousands)                                 2012                2011
Cash flows from operating activities:
Net income                                    $ 48,839           $ 58,131
Adjustments to reconcile net income to net cash provided by
operations:
Depreciation and amortization                  24,406              21,162
Stock-based compensation expense               5,027               3,396
Provision for deferred income taxes            (4,654)             16,363
Net provision for doubtful accounts            1,282               1,165
Loss on sale of assets                        512                 22
Change in assets and liabilities:
Decrease (increase) in receivables             11,964              (57,603)
Increase in inventories                        (6,446)             (27,921)
Increase in other assets                       (98)                (5,226)
Increase in accounts payable                   2,905               28,893
Decrease in accrued liabilities and other      (3,085)             (3,655)
Net cash provided by operating activities      80,652              34,727
Cash flows from investing activities:
Capital expenditures                           (34,858)            (28,136)
Business acquisition, net of cash acquired     -                   (26,775)
Proceeds from sale of property, plant and      823                 434
equipment
Net cash used in investing activities          (34,035)            (54,477)
Cash flows from financing activities:
Borrowings on lines of credit                  222,868             5,891
Payments on lines of credit                    (213,221)           (5,754)
Proceeds from employee stock plans             1,007               1,768
Purchase of treasury stock                     (35,698)            (599)
Post-closing payment for business              (11,892)            (2,055)
acquisition
Other financing activities                     (48)                (147)
Net cash used in financing activities          (36,984)            (896)
Effect of exchange rate changes on cash        577                 538
Net increase (decrease) in cash and cash       10,210              (20,108)
equivalents
Cash and cash equivalents at beginning of      25,247              83,010
year
Cash and cash equivalents at end of period     $ 35,457           $ 62,902



SOURCE Newpark Resources, Inc.

Website: http://www.newpark.com