Newpark Resources Reports Net Income Of $0.18 Per Diluted Share For The First Quarter 2013 Company announces new $50 million share repurchase program PR Newswire THE WOODLANDS, Texas, April 25, 2013 THE WOODLANDS, Texas, April 25, 2013 /PRNewswire/ -- Newpark Resources, Inc. (NYSE: NR) today announced results for its first quarter ended March 31, 2013. Total revenues for the first quarter of 2013 increased 7.7% to $283 million compared to $262 million in the first quarter of 2012. Net income for the first quarter of 2013 increased 11.1% to $17.4 million, or $0.18 per diluted share, from $15.6 million, or $0.16 per diluted share, in the first quarter of 2012. Paul Howes, Newpark's President and Chief Executive Officer, stated, "We are pleased with the strong start to 2013, achieving another record level of revenue in the first quarter. Revenues from our fluids segment grew 13% worldwide over last year's first quarter. North American fluids revenues increased 10% over last year's first quarter to $178 million, despite an 11% reduction in rig count, benefitting from our December 2012 acquisition of Alliance Drilling Fluids. International revenues from the fluids business were up 21% year-over-year, reflecting strong gains across all regions. "Revenues in our mats segment declined in the first quarter, as we allocated the majority of the quarter's composite mat production toward the expansion of our rental fleet, in preparation for the launch of our new spill containment system," added Howes. "Meanwhile our Environmental Service business continued to deliver consistent results, benefitting from the strengthening activity levels in the Gulf of Mexico." SEGMENT RESULTS The Fluids Systems and Engineering segment generated revenues of $247.3 million in the first quarter of 2013 compared to $218.5 million in the first quarter of 2012, a 13% increase. Segment operating income rose 62% to $22.6 million (9.1% operating margin) in the first quarter of 2013 compared to $14.0 million (6.4% operating margin) in the first quarter of 2012. The Mats and Integrated Services segment generated revenues of $20.6 million in the first quarter of 2013 compared to $30.5 million in the first quarter of 2012, a 33% decrease. Segment operating income declined 41% to $8.5 million (41.2% operating margin) in the first quarter of 2013 compared to $14.3 million (47.0% operating margin) in the first quarter of 2012. The Environmental Services segment generated revenues of $14.6 million in the first quarter of 2013 compared to $13.3 million in the first quarter of 2012, a 10% increase. Segment operating income was $3.5 million (24.0% operating margin) in the first quarter of 2013 compared to $3.6 million (26.9% operating margin) in the first quarter of 2012. SHARE REPURCHASE PROGRAM The Company's Board of Directors has authorized a second $50 million share repurchase program, following the $50 million repurchase program completed in the fourth quarter of 2012. Purchases under the new program will be funded with a combination of cash generated from operations and borrowings under the Company's revolving credit facility, and the repurchase program has no specific term. The Company may repurchase shares in the open market or as otherwise determined by management, subject to market conditions, business opportunities and other factors. The Company's management has been authorized to establish trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as part of the share repurchase program. CONFERENCE CALL Newpark has scheduled a conference call to discuss first quarter 2013 results, which will be broadcast live over the Internet, on Friday, April 26, 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 May 10, 2013 and may be accessed by dialing (303) 590-3030 and using pass code 4610050#. 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, 2012, 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 execute our business strategy and make successful business acquisitions and capital investments, our customers' activity levels in exploration and drilling, operating hazards inherent in the oil and natural gas industry, particularly offshore, our international operations, the availability of raw materials and skilled personnel, our customer concentration and cyclical nature of our industry, our market competition, the cost and continued availability of borrowed funds, legal and regulatory matters, including environmental regulations, inherent limitations in insurance coverage, potential impairments of long-lived intangible assets, technological developments in our industry, and the impact of severe weather, particularly in the U.S. Gulf Coast. 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. Gregg Piontek, VP & CFO Newpark Resources, Inc. Contacts: 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 March 31, December 31, March 31, (In thousands, except per share 2013 2012 2012 data) Revenues $ 282,518 $ $ 262,336 270,328 Cost of revenues 230,406 219,817 214,902 Selling, general and 24,182 24,217 21,313 administrative expenses Other operating income, net (439) 43 (14) Operating income 28,369 26,251 26,135 Foreign currency exchange (gain) (368) 333 (230) loss Interest expense, net 2,520 2,403 2,368 Income from operations before 26,217 23,515 23,997 income taxes Provision for income taxes 8,842 12,322 8,363 Net income $ 17,375 $ $ 15,634 11,193 Income per common share -basic: $ 0.21 $ $ 0.17 0.13 Income per common share $ 0.18 $ $ 0.16 -diluted: 0.12 Calculation of Diluted EPS: Net income $ 17,375 $ $ 15,634 11,193 Assumed conversion of Senior 1,266 927 1,257 Notes Adjusted net income $ 18,641 $ $ 16,891 12,120 Weighted average number of 84,100 84,602 90,473 common shares outstanding-basic Add: Dilutive effect of stock options and restricted stock 1,572 903 1,198 awards Dilutive effect of 15,682 15,682 15,682 Senior Notes Diluted weighted average number 101,354 101,187 107,353 of common shares outstanding Income per common share - $ 0.18 $ $ 0.16 diluted 0.12 Newpark Resources, Inc. Operating Segment Results (Unaudited) Three Months Ended March 31, December 31, March 31, (In thousands) 2013 2012 2012 Revenues Fluids systems and engineering $ 247,339 $ 229,329 $ 218,496 Mats and integrated services 20,584 26,612 30,533 Environmental services 14,595 14,387 13,307 Total revenues $ 282,518 $ 270,328 $ 262,336 Operating income (loss) Fluids systems and engineering $ 22,622 $ 17,714 $ 13,995 Mats and integrated services 8,480 10,845 14,339 Environmental services 3,508 3,444 3,575 Corporate office (6,241) (5,752) (5,774) Total operating income $ 28,369 $ 26,251 $ 26,135 Segment operating margin Fluids systems and engineering 9.1% 7.7% 6.4% Mats and integrated services 41.2% 40.8% 47.0% Environmental services 24.0% 23.9% 26.9% Newpark Resources, Inc. Consolidated Balance Sheets (Unaudited) March 31, December 31, (In thousands, except share data) 2013 2012 ASSETS Cash and cash equivalents $ 41,710 $ 46,846 Receivables, net 343,850 323,439 Inventories 210,264 209,734 Deferred tax asset 11,440 11,596 Prepaid expenses and other current assets 14,491 12,441 Total current assets 621,755 604,056 Property, plant and equipment, net 264,399 253,990 Goodwill 88,666 87,388 Other intangible assets, net 36,310 41,018 Other assets 8,062 8,089 Total assets $ 1,019,192 $ 994,541 LIABILITIES AND STOCKHOLDERS' EQUITY Short-term debt $ 8,990 $ 2,599 Accounts payable 121,356 114,377 Accrued liabilities 45,136 42,620 Total current liabilities 175,482 159,596 Long-term debt, less current portion 242,807 256,832 Deferred tax liability 46,523 46,348 Other noncurrent liabilities 20,573 18,187 Total liabilities 485,385 480,963 Commitments and contingencies Common stock, $0.01 par value, 200,000,000 shares authorized and 96,224,385 and 95,733,677 shares 962 957 issued, respectively Paid-in capital 490,297 484,962 Accumulated other comprehensive loss (3,498) (734) Retained earnings 112,390 95,015 Treasury stock, at cost; 10,073,767 and (66,344) (66,622) 10,115,951 shares, respectively Total stockholders' equity 533,807 513,578 Total liabilities and stockholders' equity $ 1,019,192 $ 994,541 Newpark Resources, Inc. Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (In thousands) 2013 2012 Cash flows from operating activities: Net income $ 17,375 $ 15,634 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 10,954 8,018 Stock-based compensation expense 1,973 1,383 Provision for deferred income taxes 534 81 Net provision for doubtful accounts 208 414 (Gain) loss on sale of assets (99) 244 Change in assets and liabilities: Increase in receivables (20,969) (24,439) Increase in inventories (1,280) (12,144) Increase in other assets (2,382) (1,755) Increase in accounts payable 4,179 9,008 Increase (decrease) in accrued liabilities and 4,747 (2,852) other Net cash provided by (used in) operating 15,240 (6,408) activities Cash flows from investing activities: Capital expenditures (16,127) (17,302) Proceeds from sale of property, plant and 213 8 equipment Net cash used in investing activities (15,914) (17,294) Cash flows from financing activities: Borrowings on lines of credit 71,102 85,951 Payments on lines of credit (78,748) (50,632) Proceeds from employee stock plans 3,808 234 Purchase of treasury stock - (7,598) Other financing activities (38) 10 Net cash (used in) provided by financing (3,876) 27,965 activities Effect of exchange rate changes on cash (586) 859 Net (decrease) increase in cash and cash (5,136) 5,122 equivalents Cash and cash equivalents at beginning of year 46,846 25,247 Cash and cash equivalents at end of period $ 41,710 $ 30,369 SOURCE Newpark Resources, Inc. Website: http://www.newpark.com
Newpark Resources Reports Net Income Of $0.18 Per Diluted Share For The First Quarter 2013
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