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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