Newpark Resources Reports 2012 Fourth Quarter And Full Year Results

     Newpark Resources Reports 2012 Fourth Quarter And Full Year Results

PR Newswire

THE WOODLANDS, Texas, Feb. 14, 2013

THE WOODLANDS, Texas, Feb. 14, 2013 /PRNewswire/ --Newpark Resources, Inc.
(NYSE: NR) today announced results for its fourth quarter ended December 31,
2012. Total revenues for the fourth quarter of 2012 were $270 million
compared to $260 million for the third quarter of 2012 and $264 million for
the fourth quarter of 2011. Net income for the fourth quarter of 2012 was
$11.2 million, or $0.12 per diluted share, compared to net income of $18.7
million, or $0.20 per diluted share, for the third quarter of 2012, and $21.9
million, or $0.22 per diluted share, for the fourth quarter of 2011. As set
forth in the attached Non-GAAP Earnings Reconciliation, excluding the items
discussed below, adjusted net income for the fourth quarter of 2012 was $15.9
million, or $0.17 per diluted share. 

The fourth quarter 2012 provision for income taxes included a $3.9 million
charge associated with a tax audit assessment and related tax rate increase
for the period of 2006 through 2012 in a North African subsidiary. In
addition, the fourth quarter of 2012 included $0.9 million of charges ($0.6
million after-tax) associated with asset impairments and employee termination
costs in our mid-continent completion services and equipment rental business,
along with $0.4 million of transaction expenses ($0.2 million after-tax)
associated with the Company's December 2012 acquisition of Alliance Drilling
Fluids.

For the full year 2012, total revenues were $1.038 billion compared to $958
million for 2011. Net income for 2012 was $60.0 million, or $0.62 per diluted
share, compared to net income of $80.0 million, or $0.80 per diluted share, in
2011.

Paul Howes, Newpark's President and Chief Executive Officer, stated, "We
produced solid operating results in the fourth quarter and are extremely
pleased to have reached a significant milestone in 2012, passing the $1
billion annual revenue mark for the first time in the company's history. For
the fourth quarter, our worldwide Fluids revenues increased 8% sequentially
and 4% year over year, also posting a quarterly record. Our international
operations continued to strengthen, with all regions showing sequential and
year-over-year increases in revenues. In North America, our Canadian
operations improved seasonally, outpacing that region's sequential rig count
increase. While the U.S. land market continued to be challenging in the
fourth quarter, our Fluids revenues benefitted from work on a deepwater well
in the Gulf of Mexico and therefore were relatively flat, despite a 5%
sequential decline in U.S. rig count.

"Our Mats and Integrated Services segment again posted solid performance,
despite the expected sequential decline in mat sales following a large sale
into the utility industry during the third quarter," added Howes. "Meanwhile,
our Environmental Service business continued to deliver consistent results,
benefitting from the strengthening activity levels in the Gulf region."

SEGMENT RESULTS
The Fluids Systems and Engineering segment generated revenues of $229.3
million in the fourth quarter of 2012 compared to $211.5 million in the third
quarter of 2012 and $221.1 million in the fourth quarter of 2011. Segment
operating income was $17.7 million (7.7% operating margin) in the fourth
quarter of 2012 compared to $14.8 million in the third quarter of 2012 (7.0%
operating margin) and $25.0 million (11.3% operating margin) in the fourth
quarter of 2011.

The Mats and Integrated Services segment generated revenues of $26.6 million
in the fourth quarter of 2012 compared to $35.1 million in the third quarter
of 2012 and $29.4 million in the fourth quarter of 2011. Segment operating
income was $10.8 million (40.8% operating margin) in the fourth quarter of
2012 compared to $16.0 million (45.6% operating margin) in the third quarter
of 2012 and $11.7 million (39.7% operating margin) in the fourth quarter of
2011.

The Environmental Services segment generated revenues of $14.4 million in the
fourth quarter of 2012 compared to $13.1 million in the third quarter of 2012
and $13.0 million in the fourth quarter of 2011. Segment operating income was
$3.4 million (23.9% operating margin) in the fourth quarter of 2012 compared
to $3.1 million in the third quarter of 2012 (23.6% operating margin) and $2.4
million (18.1% operating margin) in the fourth quarter of 2011.

SHARE REPURCHASE PROGRAM
In the fourth quarter, the Company completed its previously-announced $50
million share repurchase program, which was executed in accordance with a
trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934. During
the fourth quarter, the Company repurchased a total of 2.1 million outstanding
shares of Newpark common stock at an average cost of $7.24 per share.
Combined with purchases completed earlier in the year, the Company repurchased
a total of 7.2 million outstanding shares at an average cost of $6.92 through
the end of 2012.

CONFERENCE CALL
Newpark has scheduled a conference call to discuss fourth quarter 2012
results, which will be broadcast live over the Internet, on Friday, February
15, 2013 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate
in the call, dial 480-629-9835 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 March 1, 2013 and may be accessed by dialing
(303) 590-3030 and using pass code 4587015#. 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 treatment solutions. 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, our ability to successfully integrate the acquisition of
Alliance Drilling Fluids and to realize the anticipated benefits of the
acquisition, 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-Lascar Associates
          713-529-6600



Newpark Resources, Inc.
Consolidated Statements of Operations
(Unaudited)             Three Months Ended                Twelve Months Ended
                        December   September   December   December   December
                        31,        30,         31,        31,        31,
(In thousands, except   2012       2012        2011       2012       2011
per share data)
Revenues                $ 270,328  $ 259,599   $ 263,514  $          $ 958,180
                                                          1,038,019
Cost of revenues        219,817    210,276     204,991    846,529    744,176
Selling, general and
administrative          24,217     20,878      23,902     86,352     81,672
expenses
Other operating         43         (311)       580        (759)      (432)
income, net
Operating income       26,251     28,756      34,041     105,897    132,764
Foreign currency        333        185         182        749        522
exchange loss
Interest expense, net   2,403      2,416       2,405      9,740      9,226
Income from operations  23,515     26,155      31,454     95,408     123,016
before income taxes
Provision for income    12,322     7,413       9,568      35,376     42,999
taxes
Net income             $         $  18,742  $         $        $ 
                        11,193                 21,886     60,032    80,017
Income per common       $       $        $       $      $   
share -basic:           0.13       0.22        0.24       0.69      0.89
Income per common       $       $        $       $      $   
share -diluted:         0.12       0.20        0.22       0.62      0.80
Calculation of Diluted
EPS:
Net income             $         $  18,742  $         $        $ 
                        11,193                 21,886     60,032    80,017
Assumed conversion of   927        1,396       1,356      4,868      4,969
Senior Notes
Adjusted net income    $         $  20,138  $         $        $ 
                        12,120                 23,242     64,900    84,986
Weighted average
number of common        84,602     86,423      90,454     87,522     90,022
shares
outstanding-basic
Add: Dilutive effect
of stock options
andrestricted stock    903        695         1,026      876        965
awards
Dilutive
effect of Senior        15,682     15,682      15,682     15,682     15,682
Notes
Diluted weighted
average number of       101,187    102,800     107,162    104,080    106,669
common shares
outstanding
Income per common       $       $        $       $      $   
share - diluted         0.12       0.20        0.22       0.62      0.80



Newpark Resources, Inc.
Operating Segment Results
(Unaudited)                      Three Months Ended
                                 December 31,  September 30,  December 31,
(In thousands)                   2012          2012           2011
Revenues
 Fluids systems and engineering  $ 229,329     $ 211,457      $ 221,125
 Mats and integrated services    26,612        35,067         29,376
 Environmental services          14,387        13,075         13,013
 Total revenues                  $ 270,328     $ 259,599      $ 263,514
Operating income (loss)
 Fluids systems and engineering  $ 17,714     $ 14,798      $ 25,044
 Mats and integrated services    10,845        15,992         11,655
 Environmental services          3,444         3,089          2,351
 Corporate office                (5,752)       (5,123)        (5,009)
 Total operating income         $ 26,251     $ 28,756      $ 34,041
Segment operating margin
 Fluids systems and engineering  7.7%          7.0%           11.3%
 Mats and integrated services    40.8%         45.6%          39.7%
 Environmental services          23.9%         23.6%          18.1%





Newpark Resources, Inc.
Consolidated Balance Sheets
(Unaudited)
                                             December 31,     December 31,
(In thousands, except share data)            2012             2011
ASSETS
 Cash and cash equivalents                   $          $      
                                             46,846          25,247
 Receivables, net                            323,439          328,590
 Inventories                                 209,734          175,929
 Deferred tax asset                          11,596           13,224
 Prepaid expenses and other current assets   12,441           10,828
         Total current assets                604,056          553,818
 Property, plant and equipment, net         253,990          231,055
 Goodwill                                    87,388           71,970
 Other intangible assets, net               41,018           20,850
 Other assets                                8,089            9,144
         Total assets                        $           $     
                                             994,541         886,837
LIABILITIES AND STOCKHOLDERS' EQUITY
 Short-term debt                             $         $       
                                             2,599           2,232
 Accounts payable                            114,377          97,168
 Accrued liabilities                         42,620           47,443
         Total current liabilities           159,596          146,843
 Long-term debt, less current portion        256,832          189,876
 Deferred tax liability                      46,348           46,844
 Other noncurrent liabilities                18,187           5,428
         Total liabilities                   480,963          388,991
 Commitments and contingencies
 Common stock, $0.01 par value, 200,000,000
 shares authorizedand 95,733,677 and        957              945
 94,497,526 shares issued, respectively
 Paid-in capital                             484,962          477,204
 Accumulated other comprehensive (loss)      (734)            789
 income
 Retained earnings                          95,015           34,983
 Treasury stock, at cost; 10,115,951 and     (66,622)         (16,075)
 2,803,987 shares, respectively
         Total stockholders' equity          513,578          497,846
 Total liabilities and stockholders' equity  $           $     
                                             994,541         886,837



Newpark Resources, Inc.
Consolidated Statements of Cash Flows
(Unaudited)                                           Year Ended December 31,
(In thousands)                                        2012         2011
Cash flows from operating activities:
Net income                                            $ 60,032    $ 80,017
Adjustments to reconcile net income to net cash
provided by operations:
Impairment charges                                    443          -
Depreciation and amortization                         32,821       28,971
Stock-based compensation expense                      7,103        4,535
Provision for deferred income taxes                   1,358        26,623
Net provision for doubtful accounts                   1,709        2,400
Loss on sale of assets                               724          630
Change in assets and liabilities:
Decrease (increase) in receivables                   23,565       (135,303)
Increase in inventories                               (28,758)     (48,129)
Increase in other assets                              (641)        (434)
Increase in accounts payable                          13,702       30,425
Decrease in accrued liabilities and other             (1,813)      (3,293)
Net cash provided by (used in) operating activities   110,245      (13,558)
Cash flows from investing activities:
Capital expenditures                                  (43,955)     (36,897)
Proceeds from sale of property, plant and equipment   863          522
Business acquisitions, net of cash acquired           (53,075)     (26,775)
Net cash used in investing activities                 (96,167)     (63,150)
Cash flows from financing activities:
Borrowings on lines of credit                         364,426      27,619
Payments on lines of credit                           (296,944)    (9,951)
Principal payments on notes payable and long-term     (40)         (219)
debt
Proceeds from employee stock plans                    1,059        3,588
Post-closing payment for business acquisition         (11,892)     (2,055)
Purchase of treasury stock                            (50,756)     (644)
Net cash provided by financing activities             5,853        18,338
Effect of exchange rate changes on cash               1,668        607
Net increase (decrease) in cash and cash equivalents  21,599       (57,763)
Cash and cash equivalents at beginning of year        25,247       83,010
Cash and cash equivalents at end of year              $ 46,846    $ 25,247



Newpark Resources, Inc.
Non-GAAP Earnings Reconciliation
Three Months Ending December 31, 2012
To supplement our financial results presented in accordance with generally
accepted accounting pricnciples in the United States ("GAAP"), this press
release contains, and the related earnings conference call will refer to, our
adjusted non-GAAP net income and earnings per share for the fourth quarter of
2012. The table below presents a reconciliation of these non-GAAP measure
to the most directly comparable GAAP financial measures. Non-GAAP measures of
financial performance reference in this press release exclude items that the
Company believes are infequent or not indicative of operating performance.
Non-GAAP financials measures should not be considered a substitute for, or
superior to, measures of financial performance prepared in accordance with
GAAP. The Company believes these non-GAAP financial measures are helpful for
an understanding of the Company's operations, and management uses them in
comparing the historical results to current results and measuring operating
earnings trends.
(Unaudited)                     Three months ended December 31, 2012
(In thousands, except per share Operating                       Income per
data)                           Income          Net Income      common share -
                                                                Diluted
Reported results - GAAP         $ 26,251        $ 11,193        $ 0.12
Adjustments:
       Tax audit assessment and
       related tax rate
       increase for the period  -               3,902           0.04
       of 2006 to 2012 in a
       North African subsidiary
       Asset impairments and
       employee termination     858             558             0.01
       costs - Fluids Systems
       and Engineering segment
       Transaction expenses
       associated with
       acquisition of Alliance  364             237             0.00
       Drilling Fluids -
       Corporate office
Total adjustments               1,222           4,697           0.05
Adjusted results - Non-GAAP     $ 27,473        $ 15,890        $ 0.17



SOURCE Newpark Resources, Inc.

Website: http://www.newpark.com