Release Details

THE WOODLANDS, Texas, Oct 28, 2010 /PRNewswire via COMTEX/ --

Newpark Resources, Inc. (NYSE: NR) today announced results for its third quarter ended September 30, 2010. Total revenues were $179.3 million for the third quarter of 2010 compared to $181.4 million for the second quarter of 2010 and $118.2 million for the third quarter of 2009. Net income for the third quarter of 2010 was $8.2 million, or $0.09 per diluted share, compared to net income for the second quarter of 2010 of $10.8 million, or $0.12 per diluted share, and net income for the third quarter of 2009 of $0.2 million, or break-even on a per share basis.

The financial results for the third quarter of 2010 included $2.2 million of other income ($1.2 million after-tax) in the Mats and Integrated Services segment, reflecting net proceeds from the settlement of a lawsuit the Company filed in 2007 against a former raw materials vendor. The third quarter of 2010 also included a $1.2 million charge for interest expense ($0.7 million after-tax), resulting from the termination of interest rate swap agreements following the issuance of $172.5 million of convertible senior notes and subsequent repayment of amounts outstanding under the Company's revolving and term credit facility.

Paul Howes, President and Chief Executive Officer of Newpark, stated, "The third quarter results reflect a solid performance from our Drilling Fluids business, continued growth in Mats and Integrated Services and better than expected results in Environmental Services. We continue to make progress in the development of our new technology and while we expanded the use of our Evolution product beyond the Haynesville shale, we did experience a sequential revenue decline in the Haynesville and other keys markets from a strong second quarter.

"Revenues from areas of the Gulf of Mexico affected by drilling restrictions were down $3.0 million sequentially, which is consistent with our most recent public estimate," added Howes. "Meanwhile, we continue to make inroads into the Northeast U.S. region in both the Drilling Fluids and Mats and Integrated Services businesses. In addition, our previously announced $172.5 million convertible senior notes offering completed earlier this month serves to strengthen our balance sheet and provide increased financial flexibility going forward."

Segment Results

The Fluids Systems and Engineering segment generated revenues of $148.1 million in the third quarter of 2010 compared to $150.5 million in the second quarter of 2010 and $99.4 million in the third quarter of 2009. Segment operating income was $11.8 million in the third quarter of 2010 compared to $15.2 million in the second quarter of 2010 and $2.5 million in the third quarter of 2009. North American revenues were flat with the second quarter of 2010 as a 3% decline in U.S. revenues was offset by seasonal improvements in Canada. International revenues decreased 6% from the second quarter of 2010 as revenues in the Mediterranean and Brazil were both down from the prior quarter. Compared to the third quarter of 2009, North American revenues increased 79%, while international revenues increased 2%.

The Mats and Integrated Services segment generated revenues of $18.2 million in the third quarter of 2010 compared to $17.0 million in the second quarter of 2010 and $7.6 million in the third quarter of 2009. Segment operating income was $8.6 million in the third quarter of 2010, inclusive of the $2.2 million legal settlement gain, compared to operating income of $5.0 million in the second quarter of 2010 and an operating loss of $0.9 million in the third quarter of 2009. Revenues were up 7% from the second quarter of 2010, driven by a $2.3 million increase in rental activity in the Northeast U.S. region. Compared to the third quarter of 2009, segment revenues were up 140%.

The Environmental Services segment generated revenues of $13.0 million in the third quarter of 2010 compared to $13.8 million in the second quarter of 2010 and $11.2 million in the third quarter of 2009. Segment operating income was $3.9 million in the third quarter of 2010 compared to operating income of $4.2 million in the second quarter of 2010 and $4.1 million in the third quarter of 2009. The third quarter of 2010 includes $5.4 million of revenue from waste disposals associated with the Deepwater Horizon oil spill compared to $2.0 million in the second quarter of 2010.

CONFERENCE CALL

Newpark has scheduled a conference call to discuss the third quarter 2010 results, which will be broadcast live over the Internet, on Friday, October 29, 2010 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call, dial 480-629-9724 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 5, 2010 and may be accessed by dialing (303) 590-3030 and using pass code 4366142#. 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, 2009, as well as others, could cause results to differ materially from those stated. These risk factors include, but are not limited to, our customer concentration and cyclical nature of our industry, the availability of raw materials and skilled personnel, our market competition, the cost and continued availability of borrowed funds, our international operations, legal and regulatory matters, including environmental regulations, inherent limitations in insurance coverage, potential impairments of long-lived intangible assets, technological developments in our industry, the impact of severe weather, particularly in the U.S. Gulf Coast, and restrictions on offshore drilling activity in the Gulf of Mexico. 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.

SOURCE Newpark Resources, Inc.