Newpark Resources Reports 2008 Fourth Quarter and Full Year Results
THE WOODLANDS,
For the full year 2008, total revenues were
As previously reported, Newpark had entered into an agreement in
"While the decline in E&P spending is expected to negatively impact our operating results in 2009, as compared to the results achieved during 2008, we began taking actions during the fourth quarter to reduce headcount and operating costs, in an effort to meet the lower activity levels," concluded Howes.
Segment Results
The Fluids Systems and Engineering segment generated revenues of
The Mats and
The Environmental Services segment, which is now back in continuing
operations, 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 Year Ended
Ended December 31, December 31,
---------------------------------------------------------------------
(In thousands, except per
share data) 2008 2007 2008 2007
---------------------------------------------------------------------
Revenues $226,933 $172,961 $858,350 $671,207
Cost of revenues 205,821 151,444 760,224 581,881
------- ------- ------- -------
21,112 21,517 98,126 89,326
General and administrative
expenses 6,486 5,090 26,630 22,923
----- ----- ------ ------
Operating income 14,626 16,427 71,496 66,403
Foreign currency exchange
loss (gain) 1,136 (804) 1,269 (1,083)
Interest expense, net 2,506 8,069 10,881 20,251
----- ----- ------ ------
Income from continuing
operations before income
taxes 10,984 9,162 59,346 47,235
Provision for income taxes 3,755 2,386 20,046 15,472
----- ----- ------ ------
Income from continuing
operations 7,229 6,776 39,300 31,763
Loss from discontinued
operations, net of tax (542) (590) (842) (3,488)
Income (loss) from disposal
of discontinued operations,
net of tax - 560 - (1,613)
--- --- --- ------
Net income $6,687 $6,746 $38,458 $26,662
====== ====== ======= =======
Basic weighted average
common shares outstanding 88,199 90,162 88,987 90,015
Diluted weighted average
common shares outstanding 88,239 90,540 89,219 90,527
Income per common share
(basic):
Income from continuing
operations $0.08 $0.08 $0.44 $0.35
Loss from discontinued
operations - (0.01) (0.01) (0.05)
--- ----- ----- -----
Net income per common share $0.08 $0.07 $0.43 $0.30
===== ===== ===== =====
Income per common share
(diluted):
Income from continuing
operations $0.08 $0.07 $0.44 $0.35
Loss from discontinued
operations - - (0.01) (0.06)
--- --- ----- -----
Net income per common share $0.08 $0.07 $0.43 $0.29
===== ===== ===== =====
Newpark Resources, Inc.
Operating Segment Results
(Unaudited) Three Months Ended
----------------------------------------------------------------------
December 31, September 30, December 31,
(In thousands) 2008 2008 2007
----------------------------------------------------------------------
Segment revenues
Fluids systems and
engineering $190,968 $188,975 $136,267
Mats and integrated
services 20,906 22,593 23,473
Environmental
services 15,059 14,616 13,221
------ ------ ------
Total segment
revenues $226,933 $226,184 $172,961
======== ======== ========
Segment operating
income (loss)
Fluids systems and
engineering $22,437 $25,601 $17,645
Mats and integrated
services (1,752) 1,131 1,342
Environmental
services 427 1,874 2,530
--- ----- -----
Total segment
operating income $21,112 $28,606 $21,517
======= ======= =======
Segment operating margin
Fluids systems and
engineering 11.7% 13.5% 12.9%
Mats and integrated
services (8.4%) 5.0% 5.7%
Environmental
services 2.8% 12.8% 19.1%
--- ---- ----
Total segment
operating margin 9.3% 12.6% 12.4%
=== ==== ====
Newpark Resources, Inc.
Consolidated Balance Sheets
(Unaudited)
----------------------------------------------------------------------
December 31, December 31,
(In thousands, except share data) 2008 2007
----------------------------------------------------------------------
ASSETS
Cash and cash equivalents $8,252 $5,741
Receivables, net 211,366 151,176
Inventories 149,304 120,326
Deferred tax asset 22,809 28,484
Prepaid expenses and other current
assets 11,062 12,612
Assets of discontinued operations - 6,026
------ -----
Total current assets 402,793 324,365
Property, plant and equipment, net 226,627 227,763
Goodwill 60,268 62,616
Deferred tax asset, net 707 408
Other intangible assets, net 18,940 21,898
Other assets 4,344 6,443
----- -----
Total assets $713,679 $643,493
======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Foreign bank lines of credit $11,302 $7,297
Current maturities of long-term debt 10,391 11,565
Accounts payable 89,018 68,109
Accrued liabilities 38,946 21,560
Liabilities of discontinued
operations - 944
--- ---
Total current liabilities 149,657 109,475
Long-term debt, less current portion 166,461 158,616
Deferred tax liability 15,979 10,340
Other noncurrent liabilities 3,700 4,398
----- -----
Total liabilities 335,797 282,829
Common Stock, $0.01 par value,
100,000,000 shares authorized
91,139,966 and 90,215,715 shares
issued, respectively 911 902
Paid-in capital 457,012 450,319
Accumulated other comprehensive
income 1,296 13,988
Retained deficit (66,087) (104,545)
Less treasury stock, at cost;
2,646,409 shares (15,250) -
------- ---
Total stockholders' equity 377,882 360,664
------- -------
Total Liabilities and
Stockholders' Equity $713,679 $643,493
======== ========
Newpark Resources, Inc.
Consolidated Statements of Cash Flows
Year Ended
(Unaudited) December 31,
----------------------------------------------------------------------
(In thousands) 2008 2007
----------------------------------------------------------------------
Cash flows from operating activities:
Net income $38,458 $26,662
Adjustments to reconcile net income
to net cash provided by operations:
Net loss from discontinued operations 842 3,488
Net loss on disposal of discontinued operations - 1,613
Impairment losses 3,840 -
Depreciation and amortization 27,343 23,601
Stock-based compensation expense 5,128 3,434
Provision for deferred income taxes 12,773 9,951
Provision for doubtful accounts 2,664 1,315
(Gain) loss on sale of assets (245) 30
Change in assets and liabilities:
(Increase) decrease in receivables (67,741) 5,146
Increase in inventories (37,002) (12,764)
Decrease in other assets 4,651 1,926
Increase in accounts payable 21,340 2,462
Increase (decrease) in accrued
liabilities and other 16,090 (4,869)
------ ------
Net operating activities of continuing
operations 28,141 61,995
Net operating activities of discontinued
operations 546 6,210
--- -----
Net cash provided by operating activities 28,687 68,205
Cash flows from investing activities:
Capital expenditures (22,494) (22,176)
Proceeds from sale of property, plant and
equipment 510 986
Business acquisitions (1,184) (23,203)
------ -------
Net investing activities of continuing
operations (23,168) (44,393)
Net investing activities of discontinued
operations - 4,101
--- -----
Net cash used in investing activities (23,168) (40,292)
Cash flows from financing activities:
Net payments on lines of credit 23,593 67,369
Principal payments on notes payable
and long-term debt (12,252) (155,026)
Long-term borrowings - 50,000
Proceeds from exercise of stock options and ESPP 1,910 2,243
Purchase of treasury stock (15,250) -
------- ---
Net financing activities of continuing operations (1,999) (35,414)
Net financing activities of discontinued operations (63) (235)
--- ----
Net cash used in financing activities (2,062) (35,649)
Effect of exchange rate changes (946) 758
---- ---
Net increase (decrease) in cash and cash equivalents 2,511 (6,978)
Cash and cash equivalents at beginning of year 5,741 12,719
----- ------
Cash and cash equivalents at end of year $8,252 $5,741
====== ======
Newpark Resources, Inc.
Non-GAAP Earnings Reconciliation
Continuing Operations
The table below presents measures not derived in accordance with
accounting principles generally accepted in the United States of
America ("GAAP"). Non-GAAP measures of financial performance exclude
items that the Company believes are infequent or not inidicative of
operating performance. Non-GAAP financials measures should not be
considered a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP. The Company believes
these non-GAAP financial measures are helpful for an understanding of
the Company's operations, and management uses them in comparing the
historical results to current results and measuring operating earnings
trends.
Quarter Ended Year Ended
(Unaudited) December 31, December 31,
----------------------------------------------------------------------
(In thousands, except
per share data) 2008 2007 2008 2007
----------------------------------------------------------------------
Income from continuing
operations before income
taxes - GAAP $10,984 $9,162 $59,346 $47,235
------- ------ ------- -------
Adjustments:
Legal and related
transaction costs
associated with
abandoned sale of U.S.
Environmental Services
business 796 - 4,347 -
Asset write-offs following
abandoned sale of U.S.
Environmental Services
business 2,612 - 2,612 -
Legal costs associated
with anticipated
resolution of
lawsuit with former
Chief Executive Officer 1,172 - 1,172 -
Capitalized financing
cost write-off associated
with debt re-financing - 3,955 - 3,955
Legal and accounting
expenses related to
2005 restatement
and related litigation - - - 2,441
--- --- --- -----
Total adjustments 4,580 3,955 8,131 6,396
----- ----- ----- -----
Income from continuing
operations before income
taxes - Non-GAAP 15,564 13,117 67,477 53,631
Provision for income
taxes on adjusted income 5,321 3,416 22,793 17,567
----- ----- ------ ------
Income from continuing
operations - Non-GAAP $10,243 $9,701 $44,684 $36,064
======= ====== ======= =======
Basic shares outstanding 88,199 90,162 88,987 90,015
Diluted shares outstanding 88,239 90,540 89,219 90,527
Income from continuing
operations per common
share (basic):
Income from continuing
operations per common
share - GAAP $0.08 $0.08 $0.44 $0.35
Impact of adjustments 0.04 0.03 0.06 0.05
---- ---- ---- ----
Income from continuing
operations per common
share - Non-GAAP $0.12 $0.11 $0.50 $0.40
===== ===== ===== =====
Income from continuing
operations per common
share (diluted):
Income from continuing
operations per common
share - GAAP $0.08 $0.07 $0.44 $0.35
Impact of adjustments 0.04 0.04 0.06 0.05
---- ---- ---- ----
Income from continuing
operations per common
share - Non-GAAP $0.12 $0.11 $0.50 $0.40
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SOURCE
/CONTACT:
/Web Site: http://www.newpark.com /