Newpark Resources Reports Net Income Of $0.21 Per Diluted Share For The Second Quarter Of 2014

Newpark Resources Reports Net Income Of $0.21 Per Diluted Share For The Second                                Quarter Of 2014  Fluids segment posts 14% sequential revenue growth and segment margin improves to double-digits  PR Newswire  THE WOODLANDS, Texas, July 24, 2014  THE WOODLANDS, Texas, July 24, 2014 /PRNewswire/ --Newpark Resources, Inc. (NYSE: NR) today announced results for its second quarter ended June 30, 2014. Total revenues for the second quarter of 2014 were $272.5 million compared to $242.8 million in the first quarter of 2014 and $259.4 million in the second quarter of 2013. Income from continuing operations for the second quarter of 2014 was $20.3 million, or $0.21 per diluted share, compared to $11.7 million, or $0.13 per diluted share, in the first quarter of 2014, and $11.9 million, or $0.13 per diluted share, in the second quarter of 2013. The second quarter 2014 results include $1.2 million of pre-tax gains, or $0.01 per diluted share, from the sale of real estate.  Paul Howes, Newpark's President and Chief Executive Officer, stated, "We are very pleased with the solid performance from both our fluids and mats segments. In the fluids business, U.S. revenues grew 20% sequentially as the momentum we experienced at the end of the first quarter continued into the second quarter, reflecting broad-based gains across most regions, along with strong demand for wholesale barite and a deepwater well in the Gulf of Mexico. Internationally, our EMEA revenues increased sharply, including $7 million in contributions from new contract start-ups in the Black Sea and India. These revenue gains, along with our continued success in penetrating the market with new technologies, including our family of Evolution® drilling fluid systems, have helped drive our fluids segment margins back into the double-digits.  "Meanwhile, our mats business continued to perform at a high level. Strong rental demand and the continuing expansion of our rental fleet contributed to a 13% sequential increase in rental revenues and enabled us to maintain margins above 40%.  "We've also continued to execute on our share repurchase program, purchasing an additional $20 million of outstanding shares and bringing our total year-to-date purchases to 4.3 million shares at an average price of $11.70," concluded Howes.  SEGMENT RESULTS  The Fluids Systems segment generated revenues of $241.4 million in the second quarter of 2014 compared to $211.4 million in the first quarter of 2014 and $234.0 million in the second quarter of 2013. Segment operating income was $27.6 million (11.4% operating margin) in the second quarter of 2014, which includes a $0.6 million gain on the sale of real estate, compared to $15.7 million (7.4% operating margin) in the first quarter of 2014 and $17.7 million (7.6% operating margin) in the second quarter of 2013.   The Mats and Integrated Services segment generated revenues of $31.1 million in the second quarter of 2014 compared to $31.4 million in the first quarter of 2014 and $25.4 million in the second quarter of 2013. Segment operating income was $13.7 million (43.9% operating margin) in the second quarter of 2014, which includes a $0.6 million gain on the sale of real estate, compared to $13.4 million (42.6% operating margin) in the first quarter of 2014 and $10.3 million (40.7% operating margin) in the second quarter of 2013.  CONFERENCE CALL  Newpark has scheduled a conference call to discuss second quarter 2014 results, which will be broadcast live over the Internet, on Friday, July 25, 2014 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call, dial (719) 457-2627 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 August 8, 2014 and may be accessed by dialing (719) 457-0820 and using pass code 7386100#. Also, an archive of the webcast will be available shortly after the call at www.newpark.comfor 90 days.  Newpark Resources, Inc. is a worldwide provider of drilling fluids and temporary worksites and access roads for oilfield and other commercial markets. 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, 2013, 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, operating hazards inherent in the oil and natural gas industry, our international operations, the availability of raw materials and skilled personnel, the impact of restrictions on offshore drilling activity, 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                Six Months Ended                         June 30,   March 31,   June 30,   June 30,   June 30, (In thousands, except   2014       2014        2013       2014       2013 per share data) Revenues                $ 272,466  $ 242,824  $ 259,376  $ 515,290  $ 527,299 Cost of revenues        214,711    196,560     214,710    411,271    435,445 Selling, general and administrative          27,981     25,523      23,248     53,504     45,699 expenses Other operating         (2,042)    (16)        (178)      (2,058)    (302) income, net Operating income       31,816     20,757      21,596     52,573     46,457 Foreign currency        (1,805)    54          475        (1,751)    107 exchange (gain) loss Interest expense, net   2,830      2,920       2,802      5,750      5,322 Income from continuing operations before       30,791     17,783      18,319     48,574     41,028 income taxes Provision for income    10,462     6,041       6,460      16,503     14,302 taxes Income from continuing  20,329     11,742      11,859     32,071     26,726 operations Income from discontinued            -          1,152       3,805      1,152      6,313 operations, net of tax Gain from disposal of discontinued            -          22,117      -          22,117     - operations, net of tax Net income             $         $          $         $         $                          20,329     35,011     15,664     55,340     33,039 Income per common share -basic: Income from continuing  $       $        $       $       $    operations              0.24       0.14       0.14       0.38       0.32 Income from discontinued            -          0.27        0.05       0.28       0.07 operations Net income              $       $        $       $       $                            0.24       0.41       0.19       0.66       0.39 Income per common share -diluted: Income from continuing  $       $        $       $       $    operations              0.21       0.13       0.13       0.34       0.29 Income from discontinued            -          0.23        0.04       0.23       0.06 operations Net income              $       $        $       $       $                            0.21       0.36       0.17       0.57       0.35 Calculation of Diluted EPS: Income from continuing  $         $          $         $         $  operations              20,329     11,742     11,859     32,071     26,726 Assumed conversion of   1,253      1,261       1,251      2,514      2,501 Senior Notes Adjusted income from    $         $          $         $         $  continuing operations   21,582     13,003     13,110     34,585     29,227 Weighted average number of common        83,010     84,743      84,813     83,872     84,459 shares outstanding-basic Add: Dilutive effect of stock options andrestricted stock    1,743      1,674       1,810      1,705      1,727 awards  Dilutive effect of Senior        15,682     15,682      15,682     15,682     15,682 Notes Diluted weighted average number of       100,435    102,099     102,305    101,259    101,868 common shares outstanding Diluted income from     $       $        $       $       $    continuing operations   0.21       0.13       0.13       0.34       0.29 per common share  Newpark Resources, Inc. Operating Segment Results (Unaudited)                    Three Months Ended                                June 30,   March 31,    June 30, (In thousands)                 2014       2014         2013 Revenues  Fluids systems               $ 241,386  $ 211,400   $ 233,964  Mats and integrated services  31,080     31,424       25,412  Total revenues                $ 272,466  $ 242,824   $ 259,376 Operating income (loss)  Fluids systems               $ 27,571  $  15,740  $ 17,684  Mats and integrated services  13,653     13,373       10,341  Corporate office              (9,408)    (8,356)      (6,429)  Total operating income       $ 31,816  $  20,757  $ 21,596 Segment operating margin  Fluids systems               11.4%      7.4%         7.6%  Mats and integrated services  43.9%      42.6%        40.7%  Newpark Resources, Inc. Consolidated Balance Sheets (Unaudited)                                                   June 30,    December 31, (In thousands, except share data)                 2014        2013 ASSETS  Cash and cash equivalents                        $  56,753  $                                                                   65,840  Receivables, net                                 315,267     268,529  Inventories                                      199,129     189,680  Deferred tax asset                               11,597      11,272  Prepaid expenses and other current assets        18,313      11,016  Assets of discontinued operations                -           13,103             Total current assets                  601,059     559,440  Property, plant and equipment, net              257,244     217,010  Goodwill                                         94,218      94,064  Other intangible assets, net                    21,254      25,900  Other assets                                     9,326       6,086  Assets of discontinued operations                -           65,917             Total assets                          $ 983,101   $    968,417 LIABILITIES AND STOCKHOLDERS' EQUITY  Short-term debt                                  $  20,463  $                                                                   12,867  Accounts payable                                 102,755     88,586  Accrued liabilities                              51,836      46,341  Liabilities of discontinued operations           -           5,957             Total current liabilities             175,054     153,751  Long-term debt, less current portion             172,754     172,786  Deferred tax liability                           25,523      27,060  Other noncurrent liabilities                     11,001      11,026  Liabilities of discontinued operations           -           22,740             Total liabilities                     384,332     387,363  Commitments and contingencies  Common stock, $0.01 par value, 200,000,000  shares authorizedand 98,883,253 and 98,030,839  989         980  shares issued, respectively  Paid-in capital                                  512,010     504,675  Accumulated other comprehensive loss             (7,904)     (9,484)  Retained earnings                               215,678     160,338  Treasury stock, at cost; 14,781,353 and          (122,004)   (75,455)  10,832,845 shares, respectively             Total stockholders' equity            598,769     581,054  Total liabilities and stockholders' equity       $ 983,101   $    968,417  Newpark Resources, Inc. Consolidated Statements of Cash Flows (Unaudited)                                          Six Months Ended June 30, (In thousands)                                       2014          2013 Cash flows from operating activities: Net income                                           $ 55,340      $ 33,039 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization                        20,301        21,836 Stock-based compensation expense                     5,906         4,289 Provision for deferred income taxes                  (13,788)      (278) Net provision for doubtful accounts                  438           220 Gain on sale of a business                           (33,974)      - Gain on sale of assets                               (1,230)       (323) Excess tax benefit from stock-based compensation     (903)         - Change in assets and liabilities: Increase in receivables                              (38,919)      (18,442) (Increase) decrease in inventories                   (8,480)       4,055 Increase in other assets                             (6,813)       (199) Increase (decrease) in accounts payable              12,029        (1,237) Increase in accrued liabilities and other            4,783         935 Net cash (used in) provided by operating             (5,310)       43,895 activities Cash flows from investing activities: Capital expenditures                                 (56,727)      (37,417) Proceeds from sale of property, plant and            2,526         590 equipment Proceeds from sale of a business                     89,167        - Net cash provided by (used in) investing             34,966        (36,827) activities Cash flows from financing activities: Borrowings on lines of credit                        51,787        159,612 Payments on lines of credit                          (45,170)      (158,679) Other financing activities                           (30)          (39) Proceeds from employee stock plans                   922           6,928 Purchase of treasury stock                           (47,450)      (2,010) Excess tax benefit from stock-based compensation     903           - Net cash (used in) provided by financing             (39,038)      5,812 activities Effect of exchange rate changes on cash              295           (1,681) Net (decrease) increase in cash and cash             (9,087)       11,199 equivalents Cash and cash equivalents at beginning of year       65,840        46,846 Cash and cash equivalents at end of period           $ 56,753      $ 58,045  SOURCE Newpark Resources, Inc.  Website: http://www.newpark.com  
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