Newpark Resources Reports Net Income Of $0.20 Per Diluted Share For The Third Quarter 2013

Newpark Resources Reports Net Income Of $0.20 Per Diluted Share For The Third
                                 Quarter 2013

Company announces plans to expand mat manufacturing facility

PR Newswire

THE WOODLANDS, Texas, Oct. 24, 2013

THE WOODLANDS, Texas, Oct. 24, 2013 /PRNewswire/ -- Newpark Resources, Inc.
(NYSE: NR) today announced results for its third quarter ended September 30,
2013. Total revenues for the third quarter of 2013 increased 10% to $285.7
million compared to $259.6 million in the third quarter of 2012. Net income
for the third quarter of 2013 was $18.8 million, or $0.20 per diluted share,
compared to $18.7 million, or $0.20 per diluted share, in the third quarter of
2012.

Paul Howes, Newpark's President and Chief Executive Officer, stated, "We are
pleased with our continued growth, setting another quarterly revenue record in
the third quarter. Revenues in our drilling fluids segment rose 10% on a
worldwide basis compared to last year's third quarter. North American
revenues increased 9% from a year ago and rose 2% sequentially. International
revenues in this segment grew 13% from a year ago, but declined 5%
sequentially largely due to expected declines in our EMEA and Asia Pacific
regions. Fluid margins were negatively impacted by continued operating losses
in completions services, as well as lower margins in the U.S., EMEA and Asia
Pacific regions. As previously announced, we have been considering strategic
alternatives for our completion services business and are now planning to exit
this business. Subsequent to the end of the third quarter, we completed the
sale of a portion of the assets associated with that business and are
currently evaluating offers for the remaining parts of that business. 

"Our mats segment had an extremely strong quarter, setting a new record for
quarterly revenues. Rental revenues increased 30% from a year ago and 5%
sequentially, while mat sales, which were down 21% from the prior year period,
roughly doubled on a sequential basis from the prior quarter. Additionally,
we are pleased to announce a $40 million expansion of our mats manufacturing
facility in Louisiana, which reflects a critical element of our long-term
strategy for this business, as we seek to provide innovative solutions to meet
our customers' needs," added Howes.

SEGMENT RESULTS

The Fluids Systems and Engineering segment generated revenues of $233.0
million in the third quarter of 2013 compared to $211.5 million in the third
quarter of 2012, a 10% increase. Segment operating income was $17.1 million
(7.4% operating margin) in the third quarter of 2013 compared to $14.8 million
(7.0% operating margin) in the third quarter of 2012.

The Mats and Integrated Services segment generated revenues of $35.1 million
in the third quarter of 2013 and the third quarter of 2012. Segment operating
income was $15.3.million (43.7% operating margin) in the third quarter of 2013
compared to $16.0 million (45.6% operating margin) in the third quarter of
2012.

The Environmental Services segment generated revenues of $17.6 million in the
third quarter of 2013 compared to $13.1 million in the third quarter of 2012,
a 34% increase. Segment operating income was $4.7 million (26.5% operating
margin) in the third quarter of 2013 compared to $3.1 million (23.6% operating
margin) in the third quarter of 2012.

EXPANSION OF MAT MANUFACTURING FACILITY

The Company announced plans to expand its mat manufacturing facility, located
in Carencro, Louisiana. The $40 million expansion project is expected to be
completed in early 2015. Upon completion, the project will significantly
increase our production capacity and support expansion into new markets, both
domestically and internationally. The new facility will also include a
research and development center, intended to drive continued new product
development efforts.

LEADERSHIP ANNOUNCEMENT

The Company announced that Phil Vollands has been appointed to the role of
President, North America, Fluids Systems and Engineering, reporting to Bruce
Smith, President, Fluids Systems and Engineering. Most recently, Mr. Vollands
served as Vice President, Tubular Running Services for Weatherford
International. Prior to that, Mr. Vollands served in a variety of sales and
operational leadership positions for National Oilwell Varco and brings years
of global oilfield service leadership experience.

CONFERENCE CALL

Newpark has scheduled a conference call to discuss third quarter 2013
results, which will be broadcast live over the Internet, on Friday, October
25, 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 November 8, 2013 and may be accessed by
dialing (303) 590-3030 and using pass code 4641682#. 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.

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               Nine Months Ended
                         September  June 30,   September  September  September
                         30,                   30,        30,        30,
(In thousands, except    2013       2013       2012       2013       2012
per share data)
Revenues                 $       $       $       $       $   
                         285,708   276,622   259,599   844,848   767,691
Cost of revenues         230,206    225,244    210,276    685,856    626,712
Selling, general and     25,433     24,662     20,878     74,277     62,135
administrative expenses
Other operating income,  (232)      (201)      (311)      (872)      (802)
net
Operating income        30,301     26,917     28,756     85,587     79,646
Foreign currency         975        475        185        1,082      416
exchange loss
Interest expense, net    2,728      2,802      2,416      8,050      7,337
Income from operations   26,598     23,640     26,155     76,455     71,893
before income taxes
Provision for income     7,838      7,976      7,413      24,656     23,054
taxes
Net income              $      $      $      $      $    
                         18,760    15,664    18,742    51,799    48,839
Income per common share  $      $      $      $      $    
-basic:                    0.22    0.19    0.22    0.61    0.55
Income per common share  $      $      $      $      $    
-diluted:                  0.20    0.17    0.20    0.54    0.50
Calculation of Diluted
EPS:
Net income              $      $      $      $      $    
                         18,760    15,664    18,742    51,799    48,839
Assumed conversion of    1,374      1,279      1,396      3,921      3,944
Senior Notes
Adjusted net income     $      $      $      $      $    
                         20,134    16,943    20,138    55,720    52,783
Weighted average number
of common shares         85,775     84,813     86,423     84,902     88,491
outstanding-basic
Add: Dilutive effect
of stock options
andrestricted stock     1,503      1,810      695        1,718      756
awards
 Dilutive      15,682     15,682     15,682     15,682     15,682
effect of Senior Notes
Diluted weighted
average number of        102,960    102,305    102,800    102,302    104,929
common shares
outstanding
Income per common share  $      $      $      $      $    
- diluted                  0.20    0.17    0.20    0.54    0.50





Newpark Resources, Inc.
Operating Segment Results
(Unaudited)                  Three Months Ended
                             September 30,       June 30,   September 30,
(In thousands)               2013                2013       2012
Revenues
 Fluids systems and          $     233,020   $ 233,964  $     211,457
 engineering
 Mats and integrated         35,112              25,412     35,067
 services
 Environmental services      17,576              17,246     13,075
 Total revenues              $     285,708   $ 276,622  $     259,599
Operating income (loss)
 Fluids systems and          $      17,140  $ 17,684  $      14,798
 engineering
 Mats and integrated         15,345              10,341     15,992
 services
 Environmental services      4,656               5,321      3,089
 Corporate office            (6,840)             (6,429)    (5,123)
 Total operating income     $      30,301  $ 26,917  $      28,756
Segment operating margin
 Fluids systems and          7.4%                7.6%       7.0%
 engineering
 Mats and integrated         43.7%               40.7%      45.6%
 services
 Environmental services      26.5%               30.9%      23.6%





Newpark Resources, Inc.
Consolidated Balance Sheets
(Unaudited)
                                                September 30,     December 31,
(In thousands, except share data)               2013              2012
ASSETS
 Cash and cash equivalents                      $            $    
                                                69,409            46,846
 Receivables, net                               316,276           323,439
 Inventories                                    203,926           209,734
 Deferred tax asset                             9,972             11,596
 Prepaid expenses and other current assets      11,889            12,441
         Total current assets                   611,472           604,056
 Property, plant and equipment, net            279,298           253,990
 Goodwill                                       89,360            87,388
 Other intangible assets, net                  30,771            41,018
 Other assets                                   6,985             8,089
         Total assets                           $   1,017,886  $   
                                                                  994,541
LIABILITIES AND STOCKHOLDERS' EQUITY
 Short-term debt                                $            $     
                                                12,242            2,599
 Accounts payable                               99,863            114,377
 Accrued liabilities                            50,603            42,620
         Total current liabilities              162,708           159,596
 Long-term debt, less current portion           219,795           256,832
 Deferred tax liability                         44,115            46,348
 Other noncurrent liabilities                   20,805            18,187
         Total liabilities                      447,423           480,963
 Common stock, $0.01 par value, 200,000,000
 shares authorizedand 97,777,995 and           978               957
 95,733,677 shares issued, respectively
 Paid-in capital                                501,319           484,962
 Accumulated other comprehensive loss          (8,247)           (734)
 Retained earnings                             146,814           95,015
 Treasury stock, at cost; 10,413,402 and        (70,401)          (66,622)
 10,115,951 shares, respectively
         Total stockholders' equity             570,463           513,578
 Total liabilities and stockholders' equity     $   1,017,886  $   
                                                                  994,541





Newpark Resources, Inc.
Consolidated Statements of Cash Flows
(Unaudited)                                    Nine Months Ended September 30,
(In thousands)                                 2013               2012
Cash flows from operating activities:
Net income                                    $ 51,799          $ 48,839
Adjustments to reconcile net income to net
cash provided by operations:
Depreciation and amortization                  33,138             24,406
Stock-based compensation expense               6,954              5,027
Provision for deferred income taxes            (311)              (4,654)
Net provision for doubtful accounts            221                1,282
(Gain) loss on sale of assets                  (437)              512
Excess tax benefit from stock-based            (2,020)            -
compensation
Change in assets and liabilities:
 Decrease in receivables                     1,210              11,964
 Decrease (increase) in inventories          2,964              (6,446)
 Decrease (increase) in other assets         828                (98)
 (Decrease) increase in accounts payable     (11,832)           2,905
 Increase (decrease) in accrued              13,175             (3,085)
liabilities and other
Net cash provided by operating activities      95,689             80,652
Cash flows from investing activities:
Capital expenditures                           (52,550)           (34,858)
Proceeds from sale of property, plant and      1,248              823
equipment
Net cash used in investing activities          (51,302)           (34,035)
Cash flows from financing activities:
Borrowings on lines of credit                  215,994            222,868
Payments on lines of credit                    (243,141)          (213,221)
Proceeds from employee stock plans             8,102              1,007
Post-closing payment for business              -                  (11,892)
acquisition
Purchase of treasury stock                     (4,227)            (35,698)
Excess tax benefit from stock-based            2,020              -
compensation
Other financing activities                     (25)               (48)
Net cash used in financing activities          (21,277)           (36,984)
Effect of exchange rate changes on cash        (547)              577
Net increase in cash and cash equivalents      22,563             10,210
Cash and cash equivalents at beginning of      46,846             25,247
year
Cash and cash equivalents at end of period     $ 69,409          $ 35,457



SOURCE Newpark Resources, Inc.

Website: http://www.newpark.com
 
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