Release Details

THE WOODLANDS, Texas, Oct. 29 /PRNewswire-FirstCall/ -- Newpark Resources, Inc. (NYSE: NR) today announced results for its third quarter ended September 30, 2009. Total revenues were $118.2 million for the third quarter of 2009 compared to $109.6 million for the second quarter of 2009 and $226.2 million for the third quarter of 2008. The Company reported net income of $0.2 million, break-even on a per share basis, for the third quarter of 2009 compared to a net loss of $8.8 million, or $0.10 per share, in the second quarter of 2009 and net income of $10.4 million, or $0.12 per diluted share, for the third quarter of 2008.

Operating results in the third quarter of 2009 included $2.3 million of other income ($1.5 million after-tax) in the Environmental Services segment, reflecting proceeds from the settlement of business interruption insurance claims related to hurricanes and storms in 2008. Operating results in the second quarter of 2009 included $4.8 million of pre-tax charges ($3.1 million after-tax) related to employee termination and related costs associated with North American workforce reductions, the non-renewal of barge leases and asset write-downs.

Paul Howes, President and Chief Executive Officer of Newpark, stated, "Our third quarter revenues and net income improved nicely from the second quarter of this year. After sharp declines earlier in the year, we have seen U.S. drilling activity stabilize and improve during the third quarter. As a result of these improving market conditions and our cost cutting programs executed earlier this year, our Fluids Systems and Engineering segment returned to profitability in the third quarter. In addition, the Mats and Integrated Services segment generated improved operating results, while our Environmental Services segment continued to perform well.

"We remain focused on aggressively managing costs and reducing our debt levels as our total debt was reduced by an additional $10 million during the quarter," added Howes. "Meanwhile, we continued to be encouraged by our international businesses as Brazil activity continues to ramp-up and our Mediterranean operations remain stable."

Segment Results

The Fluids Systems and Engineering segment generated revenues of $99.4 million in the third quarter of 2009 compared to $89.6 million in the second quarter of 2009 and $189.0 million in the third quarter of 2008. Segment operating income was $2.5 million in the third quarter of 2009 compared to an operating loss of $1.7 million in the second quarter of 2009 and operating income of $25.6 million in the third quarter of 2008. North American revenues increased 8% from the second quarter of 2009 primarily due to higher drilling activity, market share gains and a seasonal rebound in Canada, while international revenues increased 16%, primarily due to the ramp-up of activity in Brazil. Compared to the third quarter of 2008, North American revenues decreased 60%, while international revenues increased 3%.

The Mats and Integrated Services segment generated revenues of $7.6 million in the third quarter of 2009 compared to $8.6 million in the second quarter of 2009 and $22.6 million in the third quarter of 2008. Segment operating loss was $0.9 million in the third quarter of 2009 compared to an operating loss of $4.8 million in the second quarter of 2009 and an operating profit of $1.1 million in the third quarter of 2008. Revenues were down 12% from the second quarter of 2009, as declines in mat sales were partially offset by an increase in well site construction activities. Compared to the third quarter of 2008, revenues were down 66%.

The Environmental Services segment generated revenues of $11.2 million in the third quarter of 2009 compared to $11.3 million in the second quarter of 2009 and $14.6 million in the third quarter of 2008. Segment operating income was $4.1 million in the third quarter of 2009, including $2.3 million of other income associated with the settlement of business interruption insurance claims, compared to operating income of $1.4 million in the second quarter of 2009 and $1.9 million in the third quarter of 2008. Compared to the third quarter of 2008, revenues were down 23%.

Corporate office expenses were $3.5 million in the third quarter of 2009, compared to $4.8 million in the second quarter of 2009 and $10.4 million in the third quarter of 2008. Compared to both prior periods, the decrease in expenses is attributable to lower legal and related expenses, along with lower personnel and related costs following the 2009 cost cutting programs. The third quarter of 2008 also included $3.5 million of legal and selling costs associated with the abandoned sale of the Environmental Services business.

CONFERENCE CALL

In conjunction with this release, Newpark has scheduled a conference call, which will be broadcast live over the Internet, on Friday, October 30, 2009 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call, dial (480) 629-9770 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 6, 2009 and may be accessed by dialing (303) 590-3030 and using pass code 4160781#. 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, 2008, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, the instability and effect of the credit and capital markets on the economy in general and the oil and gas industry in particular; the access to the credit markets by both Newpark and Newpark's customers; the outlook for drilling activity in North America and the rest of the world; compliance with our debt covenants; the investigation of certain accounting matters by the Securities and Exchange Commission; changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which Newpark does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of Newpark products and services. 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:  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

    (Unaudited)                Three Months Ended          Nine Months Ended
    -----------                ------------------          -----------------
    (In thousands,
     except per share    Sept. 30,  June 30,   Sept. 30,  Sept. 30,  Sept. 30,
     data)                 2009       2009       2008       2009        2008
    -----------------      ----       ----       ----       ----        ----

      Revenues           $118,208   $109,599   $226,184   $354,745   $631,417

      Cost of revenues    103,985    103,906    184,401    332,442    514,695

      Selling, general
       and administrative
       expenses            14,676     15,652     23,849     45,519     60,194
      Other (income)
       expense, net        (2,691)       (37)      (305)    (2,753)      (342)
                           ------        ---       ----     ------       ----

      Operating
       income (loss)        2,238     (9,922)    18,239    (20,463)    56,870

      Foreign currency
       exchange
       (gain) loss         (1,011)      (590)        36     (1,572)       133
      Interest
       expense, net         3,361      1,600      2,499      6,611      8,375
                            -----      -----      -----      -----      -----

      (Loss) income
       from continuing
       operations
       before income
       taxes                 (112)   (10,932)    15,704    (25,502)    48,362
      Provision for
       income taxes          (314)    (2,145)     5,115     (4,913)    16,291
                             ----     ------      -----     ------     ------

      Income (loss) from
       continuing
       operations             202     (8,787)    10,589    (20,589)    32,071
      Loss from discontinued
       operations, net of tax   -          -       (171)         -       (300)
                              ---        ---       ----        ---       ----

      Net income (loss)      $202    $(8,787)   $10,418   $(20,589)   $31,771
                             ====    =======    =======   ========    =======

    Basic weighted
     average common shares
     outstanding           88,544     88,514     88,682     88,469     89,227
    Diluted weighted
     average common shares
     outstanding           88,655     88,514     89,109     88,469     89,569

    Income (loss) per
     common share - basic:
      Income (loss) from
       continuing
       operations              $-     $(0.10)     $0.12     $(0.23)     $0.36
      Loss from discontinued
       operations               -          -          -          -          -
                              ---        ---        ---        ---        ---
      Net income (loss) per
       common share            $-     $(0.10)     $0.12     $(0.23)     $0.36
                              ===     ======      =====     ======      =====

     Income (loss)
      per common
      share - diluted:
       Income (loss) from
        continuing
        operations             $-     $(0.10)     $0.12     $(0.23)     $0.36
       Loss from
        discontinued
        operations              -          -          -          -      (0.01)
                              ---        ---        ---        ---      -----
       Net income (loss)
        per common share       $-     $(0.10)     $0.12     $(0.23)     $0.35
                              ===     ======      =====     ======      =====


    Newpark Resources, Inc.
    Operating Segment Results


    (Unaudited)                        Three Months Ended
    -----------                        ------------------
                              September 30,   June 30,       September 30,
    (In thousands)                2009          2009             2008
    --------------                ----          ----             ----

    Revenues
      Fluids systems and
       engineering               $99,421       $89,642         $188,975
      Mats and integrated
       services                    7,578         8,638           22,593
      Environmental
       services                   11,209        11,319           14,616
                                  ------        ------           ------
        Total revenues          $118,208      $109,599         $226,184
                                ========      ========         ========

    Operating income (loss)
      Fluids systems and
       engineering                $2,541       $(1,722)         $25,601
      Mats and integrated
       services                     (879)       (4,774)           1,131
      Environmental
       services                    4,070 (1)     1,385            1,874
      Corporate office            (3,494)       (4,811)         (10,367)
                                  ------        ------          -------
        Total operating
         income (loss)            $2,238       $(9,922)         $18,239
                                  ======       =======          =======

    Segment operating margin
      Fluids systems and
       engineering                   2.6%         (1.9%)           13.5%
      Mats and integrated
       services                    (11.6%)       (55.3%)            5.0%
      Environmental
       services                     36.3%         12.2%            12.8%


    (1)  Includes $2.3 million of income reflecting proceeds from the
    settlement of business interruption insurance claims.



    Newpark Resources, Inc.
    Consolidated Balance Sheets

    -------------------                        -------------  ------------
     (In thousands,                            September 30,  December 31,
     except share data)                            2009          2008
    -------------------                            ----          ----
                                               (Unaudited)
    ASSETS
      Cash and cash equivalents                   $6,299        $8,252
      Receivables, net                           108,287       211,366
      Inventories                                123,299       149,304
      Deferred tax asset                           8,887        22,809
      Prepaid expenses and other current
       assets                                     10,365        11,062
                                                  ------        ------
        Total current assets                     257,137       402,793

      Property, plant and equipment, net         228,875       226,627
      Goodwill                                    62,186        60,268
      Deferred tax asset, net                      7,126           707
      Other intangible assets, net                16,995        18,940
      Other assets                                 5,493         4,344
                                                   -----         -----
        Total assets                            $577,812      $713,679
                                                ========      ========

    LIABILITIES AND STOCKHOLDERS' EQUITY
      Foreign bank lines of credit                $8,437       $11,302
      Current maturities of long-term debt        10,593        10,391
      Accounts payable                            45,412        89,018
      Accrued liabilities                         25,984        38,946
                                                  ------        ------
        Total current liabilities                 90,426       149,657

      Long-term debt, less current portion       115,885       166,461
      Deferred tax liability                         715        15,979
      Other noncurrent liabilities                 3,507         3,700
                                                   -----         -----
        Total liabilities                        210,533       335,797

      Common stock, $0.01 par value, 100,000,000
       shares authorized 91,659,870 and
       91,139,966 shares issued, respectively        917           911
      Paid-in capital                            459,331       457,012
      Accumulated other comprehensive
       income                                      9,065         1,296
      Retained deficit                           (86,676)      (66,087)
      Treasury stock, at cost; 2,710,133
       and 2,646,409 shares, respectively        (15,358)      (15,250)
                                                 -------       -------
        Total stockholders' equity               367,279       377,882
                                                 -------       -------
      Total liabilities and stockholders'
       equity                                   $577,812      $713,679
                                                ========      ========



    Newpark Resources, Inc.
    Consolidated Statements of Cash Flows
                                                          Nine Months Ended
    (Unaudited)                                             September 30,
    -----------                                             -------------
    (In thousands)                                          2009     2008
    --------------                                          ----     ----

    Cash flows from operating activities:
    Net (loss) income                                    $(20,589) $31,771
    Adjustments to reconcile net (loss) income to
     net cash provided by operations:
      Net loss from discontinued operations                     -      300
      Non-cash impairment charges                           1,091        -
      Depreciation and amortization                        20,890   21,784
      Stock-based compensation expense                      2,262    4,034
      Provision for deferred income taxes                  (7,718)  12,157
      Provision for doubtful accounts                       2,357    1,752
      Gain on sale of assets                                 (752)    (345)
      Change in assets and liabilities:
        Decrease (increase)  in receivables               103,397  (50,712)
        Decrease (increase) in inventories                 28,179   (6,913)
        Increase in other assets                             (551)  (3,462)
        (Decrease) increase in accounts payable           (44,911)  10,270
        (Decrease) increase in accrued liabilities and
         other                                            (13,890)  14,024
                                                          -------   ------
      Net operating activities of continuing operations    69,765   34,660
      Net operating activities of discontinued
       operations                                               -    2,352
                                                              ---    -----
    Net cash provided by operating activities              69,765   37,012

    Cash flows from investing activities:
      Capital expenditures                                (17,219) (16,937)
      Proceeds from sale of property, plant and
       equipment                                            1,255      522
                                                            -----      ---
    Net cash used in investing activities                 (15,964) (16,415)

    Cash flows from financing activities:
      Net (payments) borrowings  on lines of credit       (54,021)  (1,625)
      Principal payments on notes payable and long-term
       debt                                                  (299)  (2,116)
      Proceeds from employee stock plans                      104    1,897
      Purchase of treasury stock                             (212) (15,093)
                                                             ----  -------
    Net financing activities of continuing operations     (54,428) (16,937)
    Net financing activities of discontinued operations         -      (63)
                                                              ---      ---
    Net cash used in financing activities                 (54,428) (17,000)

    Effect of exchange rate changes on cash                (1,326)   1,578
                                                           ------    -----

    Net (decrease) increase in cash and cash equivalents   (1,953)   5,175
    Cash and cash equivalents at beginning of period        8,252    5,741
                                                            -----    -----

    Cash and cash equivalents at end of period             $6,299  $10,916
                                                           ======  =======

SOURCE Newpark Resources, Inc.

James E. Braun, CFO of Newpark Resources, Inc., +1-281-362-6800; or Ken Dennard, Managing Partner of Dennard Rupp Gray & Easterly, LLC, +1-713-529-6600, ksdennard@drg-e.com, for Newpark Resources, Inc.