Newpark Resources Reports Second Quarter 2009 Results
THE WOODLANDS,
Operating results in the second quarter of 2009 included
"Another key development was the recent completion of the previously
announced amendment to our credit agreement, which provides favorable
adjustments to our covenant requirements over the next four quarters," added
Howes. "Meanwhile, we remain encouraged by our international businesses, as
both
Segment Results
The Fluids Systems and Engineering segment generated revenues of
The Mats and
The Environmental Services segment generated revenues of
CONFERENCE CALL
In conjunction with this release, Newpark has scheduled a conference call,
which will be broadcast live over the Internet, on
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
Contacts: James E. Braun, CFO
Newpark Resources, Inc.
281-362-6800
Ken Dennard, Managing Partner
Dennard Rupp Gray & Easterly, LLC
ksdennard@drg-e.com
713-529-6600
Newpark Resources, Inc.
Consolidated Statements of Operations
Three Months Ended Six Months Ended
(Unaudited) June 30, June 30,
----------- -------- --------
(In thousands, except per share
data) 2009 2008 2009 2008
------------------------------- ---- ---- ---- ----
Revenues $109,599 $210,497 $236,537 $405,233
Cost of revenues 103,906 172,649 227,418 327,769
Selling, general and
administrative expenses 15,652 19,679 31,882 38,870
Other (income) expense, net (37) 152 (62) (37)
--- --- --- ---
Operating (loss) income (9,922) 18,017 (22,701) 38,631
Foreign currency exchange
(gain) loss (590) (199) (561) 97
Interest expense, net 1,600 2,649 3,250 5,876
----- ----- ----- -----
(Loss) income from continuing
operations before income taxes (10,932) 15,567 (25,390) 32,658
Provision for income taxes (2,145) 5,481 (4,599) 11,176
------ ----- ------ ------
(Loss) income from continuing
operations (8,787) 10,086 (20,791) 21,482
Loss from discontinued
operations, net of tax - (84) - (129)
--- --- --- ----
Net (loss) income $(8,787) $10,002 $(20,791) $21,353
======= ======= ======== =======
Basic weighted average common
shares outstanding 88,514 88,762 88,430 89,454
Diluted weighted average common
shares outstanding 88,514 89,073 88,430 89,671
(Loss) income per common share
- basic and diluted:
(Loss) income from continuing
operations $(0.10) $0.11 $(0.24) $0.24
Loss from discontinued
operations - - - -
--- --- --- ---
Net (loss) income per common
share $(0.10) $0.11 $(0.24) $0.24
====== ===== ====== =====
Newpark Resources, Inc.
Operating Segment Results
(Unaudited) Three Months Ended
----------- ------------------
(In thousands) June 30, 2009 March 31, 2009 June 30, 2008
-------------- ------------- -------------- -------------
Revenues
Fluids systems and
engineering $89,642 $106,588 $169,128
Mats and integrated
services 8,638 8,863 24,904
Environmental services 11,319 11,487 16,465
------ ------ ------
Total revenues $109,599 $126,938 $210,497
======== ======== ========
Operating (loss) income
Fluids systems and
engineering $(1,722) $(5,574) $18,104
Mats and integrated
services (4,774) (3,414) 2,417
Environmental services 1,385 1,157 2,492
Corporate office (4,811) (4,948) (4,996)
------ ------ ------
Total operating
(loss) income $(9,922) $(12,779) $18,017
======= ======== =======
Segment operating margin
Fluids systems and
engineering (1.9%) (5.2%) 10.7%
Mats and integrated
services (55.3%) (38.5%) 9.7%
Environmental services 12.2% 10.1% 15.1%
Newpark Resources, Inc.
Consolidated Balance Sheets
June 30, December 31,
(In thousands, except share data) 2009 2008
--------------------------------- ---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $6,711 $8,252
Receivables, net 98,905 211,366
Inventories 137,464 149,304
Deferred tax asset 7,366 22,809
Prepaid expenses and other current assets 11,234 11,062
------ ------
Total current assets 261,680 402,793
Property, plant and equipment, net 230,308 226,627
Goodwill 60,927 60,268
Deferred tax asset, net 7,525 707
Other intangible assets, net 17,562 18,940
Other assets 4,206 4,344
----- -----
Total assets $582,208 $713,679
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Foreign bank lines of credit $6,370 $11,302
Current maturities of long-term debt 10,471 10,391
Accounts payable 44,902 89,018
Accrued liabilities 26,982 38,946
------ ------
Total current liabilities 88,725 149,657
Long-term debt, less current portion 127,944 166,461
Deferred tax liability 1,066 15,979
Other noncurrent liabilities 3,016 3,700
----- -----
Total liabilities 220,751 335,797
Common stock, $0.01 par value,
100,000,000 shares authorized
91,471,050 and 91,139,966 shares
issued, respectively 915 911
Paid-in capital 458,302 457,012
Accumulated other comprehensive income 4,580 1,296
Retained deficit (86,878) (66,087)
Treasury stock, at cost; 2,733,601 and
2,646,409 shares, respectively (15,462) (15,250)
------- -------
Total stockholders' equity 361,457 377,882
------- -------
Total liabilities and stockholders' equity $582,208 $713,679
======== ========
Newpark Resources, Inc.
Consolidated Statements of Cash Flows
Six Months Ended
(Unaudited) June 30,
----------- --------
(In thousands) 2009 2008
-------------- ---- ----
Cash flows from operating activities:
Net (loss) income $(20,791) $21,353
Adjustments to reconcile net (loss) income
to net cash provided by operations:
Net loss from discontinued operations - 129
Non-cash charges 941 -
Depreciation and amortization 14,093 14,554
Stock-based compensation expense 1,190 2,314
Provision for deferred income taxes (6,256) 9,118
Provision for doubtful accounts 1,533 1,336
(Gain) loss on sale of assets (265) 445
Change in assets and liabilities:
Decrease (increase) in receivables 111,652 (34,526)
Decrease (increase) in inventories 12,658 (707)
Decrease (increase) in other assets 427 (963)
(Decrease) increase in accounts payable (45,083) 4,394
(Decrease) increase in accrued liabilities
and other (12,592) 4,155
------- -----
Net operating activities of continuing
operations 57,507 21,602
Net operating activities of discontinued
operations - 1,776
--- -----
Net cash provided by operating activities 57,507 23,378
Cash flows from investing activities:
Capital expenditures (14,139) (11,580)
Proceeds from sale of property, plant and
equipment 734 78
--- ---
Net cash used in investing activities (13,405) (11,502)
Cash flows from financing activities:
Net (payments) borrowings on lines of credit (43,767) 2,098
Principal payments on notes payable and long-term
debt (195) (1,014)
Proceeds from employee stock plans 104 1,241
Purchase of treasury stock (212) (10,039)
---- -------
Net financing activities of continuing operations (44,070) (7,714)
Net financing activities of discontinued operations - (63)
--- ---
Net cash used in financing activities (44,070) (7,777)
Effect of exchange rate changes on cash (1,573) 447
------ ---
Net (decrease) increase in cash and cash equivalents (1,541) 4,546
Cash and cash equivalents at beginning of period 8,252 5,741
----- -----
Cash and cash equivalents at end of period $6,711 $10,287
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SOURCENewpark Resources, Inc. -0-07/30/2009 /CONTACT:James E. Braun , CFO ofNewpark Resources, Inc. , +1-281-362-6800; orKen Dennard , Managing Partner of Dennard Rupp Gray &Easterly, LLC , +1-713-529-6600, ksdennard@drg-e.com/ /Web Site: http://www.newpark.com / (NR) CO:Newpark Resources, Inc. ST:Texas IN: OIL GAS UTI SU: ERP ERN CCA PR -- DA54591 -- 169107/30/2009 16:05 EDT http://www.prnewswire.com