Release Details

THE WOODLANDS, Texas, Oct. 27, 2011 /PRNewswire via COMTEX/ -- Newpark Resources, Inc. (NYSE: NR) today announced results for its third quarter ended September 30, 2011. Total revenues were $261.2 million for the third quarter of 2011 compared to $230.8 million for the second quarter of 2011 and $179.3 million for the third quarter of 2010. Net income for the third quarter of 2011 was $23.0 million, or $0.23 per diluted share, compared to net income for the second quarter of 2011 of $19.3 million, or $0.19 per diluted share, and net income for the third quarter of 2010 of $8.2 million, or $0.09 per diluted share.

For the first nine months of 2011, total revenues were $694.7 million compared to $521.4 million for the first nine months of 2010. Net income for the first nine months of 2011 was $58.1 million, or $0.58 per diluted share, compared to net income of $26.9 million, or $0.30 per diluted share, in the first nine months of 2010.

Paul Howes, Newpark's President and Chief Executive Officer, stated, "The third quarter of 2011 was yet another record quarter for Newpark as we achieved new high marks in both quarterly revenues and profit. Strong performance in all of our operating segments contributed to growth of 13% in consolidated revenues and 19% in consolidated net income, when compared to the prior quarter. In our Fluids Systems and Engineering segment, strength in U.S. drilling activity and market share gains in Canada contributed to a 12% sequential increase in North American revenues. The roll-out of our Evolution(TM) drilling fluid system continued, generating $17 million of revenues in the third quarter, while improving the geographic and customer reach. Internationally, revenues were up 17%, benefitting from improvements in the Mediterranean region, along with the impact of our first full quarter with our recently-acquired Asia Pacific business unit.

"In addition, revenues from our Mats and Integrated Services segment increased 9% sequentially, while our Environmental Services revenues rose 26% during this period," concluded Howes.

Segment Results

The Fluids Systems and Engineering segment generated revenues of $216.2 million in the third quarter of 2011 compared to $191.2 million in the second quarter of 2011 and $148.1 million in the third quarter of 2010. North American revenues increased 12% sequentially in the third quarter of 2011, including a 5% improvement in the U.S. and a $9.9 million increase in Canadian revenues. International revenues increased $8.4 million, or 17%, from the second quarter of 2011, including a $1.9 million increase in revenue from the Asia Pacific region, as the third quarter is the first full quarter with this acquired business unit. Compared to the third quarter of 2010, revenues increased 44% in North America and 51% in the Company's international operations. Segment operating income was $25.6 million (11.9% margin) in the third quarter of 2011 compared to $20.8 million (10.9% margin) in the second quarter of 2011 and $11.8 million (8.0% margin) in the third quarter of 2010.

The Mats and Integrated Services segment generated revenues of $30.2 million in the third quarter of 2011 compared to $27.8 million in the second quarter of 2011 and $18.2 million in the third quarter of 2010. Revenues for the segment were up 9% from the second quarter of 2011, as a $3.7 million decline in rental revenues in the Northeast was more than offset by a $4.8 million increase in composite mat sales, along with increased rental and service revenues in the Rockies and Gulf Coast. Compared to the third quarter of 2010, segment revenues were up 66%. Segment operating income was $14.5 million (48.1% margin) in the third quarter of 2011 compared to operating income of $14.7 million (53.0% margin) in the second quarter of 2011 and $8.6 million (47.2% margin) in the third quarter of 2010.

The Environmental Services segment generated revenues of $14.9 million in the third quarter of 2011 compared to $11.8 million in the second quarter of 2011 and $13.0 million in the third quarter of 2010. The sequential improvement in revenues is primarily attributable to increased market share gains in oilfield waste disposals from state water and inland locations as activity in the federal waters in the Gulf of Mexico continues to be impacted by permitting issues. Compared to the third quarter of 2010, segment revenues were up 15%. Segment operating income was $5.0 million (33.4% margin) in the third quarter of 2011 compared to operating income of $3.0 million (25.2% margin) in the second quarter of 2011 and $3.9 million (30.5% margin) in the third quarter of 2010.

CONFERENCE CALL

Newpark has scheduled a conference call to discuss the third quarter 2011 results, which will be broadcast live over the Internet, on Friday, October 28, 2011 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call, dial 480-629-9771 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 4, 2011 and may be accessed by dialing (303) 590-3030 and using pass code 4472417#. 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 http://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, 2010, 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 successfully integrate the business acquired from Rheochem and to realize the anticipated benefits from the acquisition, the impact of restrictions on offshore drilling activity in the Gulf of Mexico, 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, 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 http://www.newpark.com/.

SOURCE Newpark Resources, Inc.