Newpark Resources Reports Third Quarter 2024 Results
Newpark Resources (NYSE: NR) reported third quarter 2024 results with revenue of $44.2 million and operating income from continuing operations of $1.2 million. The company completed the sale of its Fluids Systems segment on September 13, 2024, receiving $70 million in initial cash proceeds. Q3 performance was impacted by customers shifting priorities from transmission to renewable projects, weather conditions, and facility maintenance. The company ended Q3 with $43 million in cash and $14 million in debt. October set a new monthly record for rental volume, indicating strong Q4 rental revenues ahead.
Newpark Resources (NYSE: NR) ha riportato i risultati del terzo trimestre del 2024 con un fatturato di 44,2 milioni di dollari e un reddito operativo dalle operazioni continuative di 1,2 milioni di dollari. La compagnia ha completato la vendita del suo segmento Fluids Systems il 13 settembre 2024, ricevendo 70 milioni di dollari come proventi iniziali in contante. Le performance del Q3 sono state influenzate dal cambiamento delle priorità dei clienti da progetti di trasmissione a progetti rinnovabili, dalle condizioni meteorologiche e dalla manutenzione degli impianti. L'azienda ha chiuso il Q3 con 43 milioni di dollari in contante e 14 milioni di dollari di debito. Ottobre ha segnato un nuovo record mensile per il volume di noleggio, indicando forti ricavi di noleggio per il Q4.
Newpark Resources (NYSE: NR) reportó los resultados del tercer trimestre de 2024 con ingresos de 44,2 millones de dólares y un ingreso operativo de las operaciones continuas de 1,2 millones de dólares. La empresa completó la venta de su segmento Fluids Systems el 13 de septiembre de 2024, recibiendo 70 millones de dólares en ingresos iniciales en efectivo. El desempeño del tercer trimestre se vio afectado por el cambio de prioridades de los clientes de proyectos de transmisión a proyectos renovables, las condiciones climáticas y el mantenimiento de las instalaciones. La empresa terminó el tercer trimestre con 43 millones de dólares en efectivo y 14 millones de dólares en deuda. Octubre estableció un nuevo récord mensual en volumen de alquiler, lo que indica fuertes ingresos por alquiler en el cuarto trimestre.
뉴파크 리소스(Newpark Resources, NYSE: NR)는 2024년 3분기 실적을 보고하며, 매출이 4,420만 달러이고 지속 운영에서의 운영소득이 120만 달러라고 발표했습니다. 회사는 2024년 9월 13일 플루이드 시스템 부문의 매각을 완료하고 초기 현금 수익으로 7천만 달러를 받았습니다. 3분기 실적은 고객들이 전송 프로젝트에서 재생 가능 프로젝트로 우선 순위를 전환하는 것, 날씨 조건, 그리고 시설 유지보수의 영향을 받았습니다. 회사는 3분기를 4,300만 달러의 현금과 1,400만 달러의 부채로 마감했습니다. 10월은 임대량에서 새로운 월별 기록을 세워, 4분기 임대 수익이 강할 것임을 나타냅니다.
Newpark Resources (NYSE: NR) a rapporté les résultats du troisième trimestre 2024 avec un chiffre d'affaires de 44,2 millions de dollars et un revenu opérationnel des opérations continues de 1,2 million de dollars. L'entreprise a finalisé la vente de son segment Fluids Systems le 13 septembre 2024, recevant 70 millions de dollars de recettes initiales en espèces. La performance du T3 a été affectée par le changement de priorités des clients, passant de projets de transmission à des projets renouvelables, des conditions météorologiques et l'entretien des installations. L'entreprise a terminé le T3 avec 43 millions de dollars en espèces et 14 millions de dollars de dettes. Octobre a établi un nouveau record mensuel pour le volume de location, indiquant de fortes recettes de location à venir pour le T4.
Newpark Resources (NYSE: NR) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 44,2 Millionen Dollar und einem operativen Einkommen aus fortgeführten Aktivitäten von 1,2 Millionen Dollar. Das Unternehmen schloss am 13. September 2024 den Verkauf seines Fluids Systems Segments ab und erhielt 70 Millionen Dollar an anfänglichen Bareinnahmen. Die Leistung im Q3 wurde durch die veränderten Prioritäten der Kunden von Übertragungsprojekten hin zu erneuerbaren Projekten, Wetterbedingungen und Anlagenwartung beeinträchtigt. Das Unternehmen schloss das Q3 mit 43 Millionen Dollar Bargeld und 14 Millionen Dollar Schulden ab. Der Oktober setzte einen neuen monatlichen Rekord für das Mietvolumen, was auf starke Mietumsätze im Q4 hinweist.
- Completed strategic sale of Fluids Systems segment for $70 million initial cash proceeds plus $18 million in deferred consideration
- Strong liquidity position with $43 million cash and $56 million available credit facility
- Record rental volume in October 2024, indicating strong Q4 outlook
- Tax benefit of $14.6 million from release of valuation allowances
- Revenue declined 22.9% year-over-year to $44.2 million
- Operating income dropped 81% to $1.2 million from $6.3 million year-over-year
- Operating margin decreased 850 basis points to 16.5%
- Negative Free Cash Flow of $5.6 million compared to positive $22.9 million in prior year
Insights
The Q3 2024 results reveal significant developments for Newpark Resources. Key highlights include:
- Revenue declined to
$44.2M from$57.3M year-over-year, with operating income falling to$1.2M from$6.3M - Completed strategic sale of Fluids Systems segment, receiving
$70M initial cash proceeds plus$18M in deferred consideration - Strong balance sheet with
$43M cash and only$14M debt - Temporary setback in Q3 due to customer project shifts and facility maintenance, but October showing record rental volumes
The company's transformation into a pure-play specialty rental and services business, coupled with its strong balance sheet and focus on high-margin markets, positions it well for future growth. The
The strategic pivot in Newpark's business model aligns well with major infrastructure trends:
- Growing demand for site access solutions in electricity grid upgrades
- Expansion opportunities in data center construction
- Focus on higher-margin rental markets
While Q3 showed temporary weakness with Adjusted EBITDA margin dropping to
On September 13, 2024, the Company completed the sale of its equity interests in substantially all of the Company’s Fluids Systems segment. The results of the Fluids Systems segment are reported in discontinued operations for all periods.
THIRD QUARTER 2024 RESULTS
-
Revenue of
$44.2 million -
Operating income from continuing operations of
$1.2 million -
Income from continuing operations of
$14.9 million $14.6 million $0.3 million -
Adjusted EBITDA from Continuing Operations of
$7.5 million -
Adjusted EBITDA Margin from Continuing Operations of
17.0% -
$70 million $18 million -
Total cash of
$43 million $14 million
|
Third Quarter |
|
|
|
||||||||
(In millions) |
2024 |
|
2023 |
|
Change |
|||||||
Revenues |
$ |
44.2 |
|
|
$ |
57.3 |
|
|
$ |
(13.1 |
) |
|
Operating income from continuing operations |
$ |
1.2 |
|
|
$ |
6.3 |
|
|
$ |
(5.1 |
) |
|
Net cash provided by operating activities |
$ |
2.8 |
|
|
$ |
27.0 |
|
|
$ |
(24.2 |
) |
|
Free Cash Flow |
$ |
(5.6 |
) |
|
$ |
22.9 |
|
|
$ |
(28.5 |
) |
|
Industrial Solutions Segment |
|
|
|
|
|
|
||||||
Revenues |
$ |
44.2 |
|
|
$ |
57.3 |
|
|
$ |
(13.1 |
) |
|
Operating income |
$ |
7.3 |
|
|
$ |
14.3 |
|
|
$ |
(7.0 |
) |
|
Adjusted EBITDA |
$ |
12.5 |
|
|
$ |
19.7 |
|
|
$ |
(7.2 |
) |
|
Operating margin (%) |
|
16.5 |
% |
|
|
25.0 |
% |
|
|
-850 |
|
bps |
Adjusted EBITDA margin (%) |
|
28.3 |
% |
|
|
34.4 |
% |
|
|
-610 |
|
bps |
MANAGEMENT COMMENTARY
“Our third quarter performance was impacted by a combination of certain key customers shifting their priorities from scheduled transmission projects to renewable generation projects, unfavorable weather conditions, and an extended unplanned maintenance event at our
“Following the more pronounced seasonal effects, customer activity rebounded sharply as we exited the third quarter,” continued Lanigan. “October set a new monthly record for rental volume, putting us on pace for very strong fourth quarter rental revenues.
“Our disciplined, return-driven approach to capital allocation remains central to our value creation thesis,” stated Lanigan. “We intend to prioritize organic investment in rental fleet, while returning capital to shareholders through our programmatic share repurchase program. With the Fluids divestiture completed, we have begun simplifying our business structure and streamlining our support structure around a core site access solutions offering and expect to remain opportunistic acquirors of complementary assets that further enhance our customer value proposition, expand our addressable market, and further support our strategic focus on profitable growth.
“We remain highly constructive on both the near and longer-term outlook for our business,” continued Lanigan. “Entering 2025, our entire organization is solely focused on the significant market opportunity we see in site access solutions. From multi-billion-dollar investment programs focused on high-grading the United States’ aging electricity grid, to the exponential growth in advanced computing data centers, our platform is uniquely equipped to support next-generation investments in our nation’s infrastructure.”
BUSINESS UPDATE
Newpark is engaged in a multi-year business transformation plan designed to drive organic commercial growth within targeted, higher-margin product and rental markets; improve asset optimization and organizational efficiency; and pursue a capital allocation strategy that prioritizes investments in opportunities with superior return profiles, together with a programmatic return of capital program.
The third quarter of 2024 was highlighted by the following:
- Completed Fluids Systems sale. On September 13, 2024, we completed the sale of the equity interests in substantially all of the Company’s Fluids Systems segment to SCF Partners, a leading private equity firm serving the global energy industry. The sale marks an important strategic milestone for our Company as we focus on growing our scale as a leading, pure-play specialty rental and services business in the global worksite access and critical infrastructure markets.
-
Strong balance sheet management. We ended the third quarter of 2024 with total cash of
$43 million $14 million $56 million $18 million -
Summer seasonality in Industrial Solutions segment, but momentum heading into Q4. Industrial Solutions revenue from specialty rental and services decreased to
$32 million U.S. Revenues from product sales decreased to$12 million -
Robust return of capital program. In February 2024, the Board of Directors increased the authorization for repurchases of common stock up to
$50.0 million
FINANCIAL PERFORMANCE
In the third quarter of 2024, Newpark generated income from continuing operations of
Industrial Solutions segment operating income was
BALANCE SHEET AND LIQUIDITY
As of September 30, 2024, Newpark had total cash of
Newpark generated
FINANCIAL GUIDANCE
The following forward-looking guidance reflects the Company’s current expectations and beliefs as of November 7, 2024 and is subject to change. The following statements apply only as of the date of this disclosure and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document.
For the full year 2024, Newpark currently anticipates the following:
-
Industrial Solutions segment revenue in a range of
$217 million $223 million -
Industrial Solutions segment Adjusted EBITDA in a range of
$77 million $81 million -
Total Industrial Solutions capital expenditures in a range of
$33 million $35 million
THIRD QUARTER 2024 RESULTS CONFERENCE CALL
A conference call will be held Friday, November 8, 2024 at 9:30 a.m. ET to review the Company’s financial results and conduct a question-and-answer session.
A webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.newpark.com. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
To participate in the live teleconference:
Domestic Live: |
800-274-8461 |
||
International Live: |
203-518-9814 |
||
Conference ID: |
NRQ324 |
To listen to a replay of the teleconference, which subsequently will be available through November 15, 2024:
Domestic Replay: |
877-710-5302 |
||
International Replay: |
402-220-1605 |
ABOUT NEWPARK RESOURCES
Newpark Resources, Inc. is a site access solutions company that manufactures, sells, and rents industry-leading sustainable composite matting products, along with a full suite of services, including planning, logistics, and remediation. As a geographically diversified company, we deliver superior quality and reliability across critical infrastructure markets, including electrical transmission & distribution, oil and gas exploration, pipeline, renewable energy, petrochemical, construction, and other industries. For more information, visit our website at www.newpark.com.
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as “will,” “may,” “could,” “would,” “should,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying them. These statements are not guarantees that our expectations will prove to be correct 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, and its Quarterly Reports on Form 10-Q, as well as others, could cause actual plans or results to differ materially from those expressed in, or implied by, these statements. These risk factors include, but are not limited to, risks related to our focus on growth of our Industrial Solutions business; the expected benefits from the recently completed sale of our Fluids Systems business; economic and market conditions that may impact our customers’ future spending; the ongoing conflicts in
Newpark Resources, Inc. |
|||||||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(In thousands, except per share data) |
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Revenues |
$ |
44,207 |
|
|
$ |
66,791 |
|
|
$ |
57,262 |
|
|
$ |
159,965 |
|
|
$ |
161,193 |
|
Cost of revenues |
|
32,067 |
|
|
|
41,966 |
|
|
|
37,602 |
|
|
|
105,358 |
|
|
|
104,528 |
|
Selling, general and administrative expenses |
|
11,005 |
|
|
|
12,750 |
|
|
|
13,910 |
|
|
|
35,335 |
|
|
|
40,834 |
|
Other operating (income) loss, net |
|
(99 |
) |
|
|
(432 |
) |
|
|
(523 |
) |
|
|
(1,435 |
) |
|
|
(1,032 |
) |
Operating income from continuing operations |
|
1,234 |
|
|
|
12,507 |
|
|
|
6,273 |
|
|
|
20,707 |
|
|
|
16,863 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency exchange (gain) loss |
|
(562 |
) |
|
|
487 |
|
|
|
514 |
|
|
|
170 |
|
|
|
(172 |
) |
Interest expense, net |
|
943 |
|
|
|
909 |
|
|
|
1,017 |
|
|
|
2,612 |
|
|
|
3,154 |
|
Income from continuing operations before income taxes |
|
853 |
|
|
|
11,111 |
|
|
|
4,742 |
|
|
|
17,925 |
|
|
|
13,881 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision (benefit) for income taxes from continuing operations (1) |
|
(14,016 |
) |
|
|
2,483 |
|
|
|
2,062 |
|
|
|
(9,626 |
) |
|
|
4,900 |
|
Income from continuing operations |
|
14,869 |
|
|
|
8,628 |
|
|
|
2,680 |
|
|
|
27,551 |
|
|
|
8,981 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
||||||||||
Income from discontinued operations before income taxes |
|
629 |
|
|
|
264 |
|
|
|
6,923 |
|
|
|
5,072 |
|
|
|
9,353 |
|
Loss on sale of discontinued operations before income taxes |
|
(195,729 |
) |
|
|
— |
|
|
|
— |
|
|
|
(195,729 |
) |
|
|
— |
|
Provision (benefit) for income taxes from discontinued operations |
|
(5,933 |
) |
|
|
852 |
|
|
|
1,933 |
|
|
|
(4,141 |
) |
|
|
3,342 |
|
Income (loss) from discontinued operations |
|
(189,167 |
) |
|
|
(588 |
) |
|
|
4,990 |
|
|
|
(186,516 |
) |
|
|
6,011 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
(174,298 |
) |
|
$ |
8,040 |
|
|
$ |
7,670 |
|
|
$ |
(158,965 |
) |
|
$ |
14,992 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) per common share - basic: |
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations |
$ |
0.17 |
|
|
$ |
0.10 |
|
|
$ |
0.03 |
|
|
$ |
0.32 |
|
|
$ |
0.10 |
|
Income (loss) from discontinued operations |
|
(2.19 |
) |
|
|
(0.01 |
) |
|
|
0.06 |
|
|
|
(2.18 |
) |
|
|
0.07 |
|
Net income (loss) |
$ |
(2.02 |
) |
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
(1.86 |
) |
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) per common share - diluted: |
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations |
$ |
0.17 |
|
|
$ |
0.10 |
|
|
$ |
0.03 |
|
|
$ |
0.32 |
|
|
$ |
0.10 |
|
Income (loss) from discontinued operations |
|
(2.16 |
) |
|
|
(0.01 |
) |
|
|
0.06 |
|
|
|
(2.13 |
) |
|
|
0.07 |
|
Net income (loss) |
$ |
(1.99 |
) |
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
(1.82 |
) |
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
86,377 |
|
|
|
85,473 |
|
|
|
86,310 |
|
|
|
85,619 |
|
|
|
86,873 |
|
Diluted |
|
87,490 |
|
|
|
87,626 |
|
|
|
88,034 |
|
|
|
87,453 |
|
|
|
88,683 |
|
(1) Provision (benefit) for income taxes from continuing operations for the three and nine months ended September 30, 2024 includes an income tax benefit of |
|||||||||||||||||||
Newpark Resources, Inc. |
|||||||||||||||||||
Operating Segment Results |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(In thousands) |
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Rental and service revenues |
$ |
32,408 |
|
|
$ |
36,396 |
|
|
$ |
38,065 |
|
|
$ |
103,985 |
|
|
$ |
114,374 |
|
Product sales revenues |
|
11,799 |
|
|
|
30,395 |
|
|
|
19,197 |
|
|
|
55,980 |
|
|
|
46,819 |
|
Total revenues (Industrial Solutions) |
$ |
44,207 |
|
|
$ |
66,791 |
|
|
$ |
57,262 |
|
|
$ |
159,965 |
|
|
$ |
161,193 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) from continuing operations |
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Solutions |
$ |
7,286 |
|
|
$ |
19,392 |
|
|
$ |
14,336 |
|
|
$ |
39,614 |
|
|
$ |
41,593 |
|
Corporate office |
|
(6,052 |
) |
|
|
(6,885 |
) |
|
|
(8,063 |
) |
|
|
(18,907 |
) |
|
|
(24,730 |
) |
Total operating income from continuing operations |
$ |
1,234 |
|
|
$ |
12,507 |
|
|
$ |
6,273 |
|
|
$ |
20,707 |
|
|
$ |
16,863 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment operating margin |
|
|
|
|
|
|
|
|
|
||||||||||
Industrial Solutions |
|
16.5 |
% |
|
|
29.0 |
% |
|
|
25.0 |
% |
|
|
24.8 |
% |
|
|
25.8 |
% |
Newpark Resources, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Unaudited) |
|||||||
(In thousands, except share data) |
September 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
42,907 |
|
|
$ |
789 |
|
Receivables, net (1) |
|
54,561 |
|
|
|
42,818 |
|
Inventories |
|
14,910 |
|
|
|
18,606 |
|
Prepaid expenses and other current assets |
|
4,596 |
|
|
|
4,690 |
|
Current assets of discontinued operations |
|
— |
|
|
|
290,321 |
|
Total current assets |
|
116,974 |
|
|
|
357,224 |
|
|
|
|
|
||||
Property, plant and equipment, net |
|
179,690 |
|
|
|
165,544 |
|
Operating lease assets |
|
10,481 |
|
|
|
11,192 |
|
Goodwill |
|
47,461 |
|
|
|
47,283 |
|
Other intangible assets, net |
|
10,864 |
|
|
|
12,461 |
|
Deferred tax assets |
|
17,519 |
|
|
|
1,367 |
|
Other assets |
|
6,617 |
|
|
|
1,582 |
|
Noncurrent assets of discontinued operations |
|
— |
|
|
|
45,683 |
|
Total assets |
$ |
389,606 |
|
|
$ |
642,336 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current debt |
$ |
8,457 |
|
|
$ |
6,319 |
|
Accounts payable |
|
19,130 |
|
|
|
16,345 |
|
Accrued liabilities |
|
23,572 |
|
|
|
21,026 |
|
Current liabilities of discontinued operations |
|
— |
|
|
|
92,594 |
|
Total current liabilities |
|
51,159 |
|
|
|
136,284 |
|
|
|
|
|
||||
Long-term debt, less current portion |
|
5,506 |
|
|
|
55,710 |
|
Noncurrent operating lease liabilities |
|
9,957 |
|
|
|
10,713 |
|
Deferred tax liabilities |
|
1,209 |
|
|
|
3,697 |
|
Other noncurrent liabilities |
|
5,321 |
|
|
|
4,191 |
|
Noncurrent liabilities of discontinued operations |
|
— |
|
|
|
16,377 |
|
Total liabilities |
|
73,152 |
|
|
|
226,972 |
|
|
|
|
|
||||
Common stock, |
|
1,117 |
|
|
|
1,117 |
|
Paid-in capital |
|
632,165 |
|
|
|
639,645 |
|
Accumulated other comprehensive loss |
|
(2,766 |
) |
|
|
(62,839 |
) |
Retained earnings (deficit) |
|
(148,161 |
) |
|
|
10,773 |
|
Treasury stock, at cost (25,172,166 and 26,471,738 shares, respectively) |
|
(165,901 |
) |
|
|
(173,332 |
) |
Total stockholders’ equity |
|
316,454 |
|
|
|
415,364 |
|
Total liabilities and stockholders’ equity |
$ |
389,606 |
|
|
$ |
642,336 |
|
(1) Receivables, net as of September 30, 2024, includes |
|||||||
Newpark Resources, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended
|
||||||
(In thousands) |
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
(158,965 |
) |
|
$ |
14,992 |
|
Adjustments to reconcile net income (loss) to net cash provided by operations: |
|
|
|
||||
Loss on divestitures |
|
195,729 |
|
|
|
— |
|
Impairments and other non-cash charges |
|
— |
|
|
|
2,816 |
|
Depreciation and amortization |
|
21,804 |
|
|
|
23,507 |
|
Stock-based compensation expense |
|
4,119 |
|
|
|
4,967 |
|
Provision for deferred income taxes |
|
(22,290 |
) |
|
|
(1,031 |
) |
Credit loss expense |
|
998 |
|
|
|
827 |
|
Gain on sale of assets |
|
(2,412 |
) |
|
|
(2,176 |
) |
Gain on insurance recovery |
|
(874 |
) |
|
|
— |
|
Amortization of original issue discount and debt issuance costs |
|
885 |
|
|
|
409 |
|
Change in assets and liabilities: |
|
|
|
||||
(Increase) decrease in receivables |
|
(13,734 |
) |
|
|
33,917 |
|
(Increase) decrease in inventories |
|
9,481 |
|
|
|
(2,160 |
) |
Increase in other assets |
|
(1,027 |
) |
|
|
(2,133 |
) |
Increase (decrease) in accounts payable |
|
12,498 |
|
|
|
(11,179 |
) |
Increase (decrease) in accrued liabilities and other |
|
(3,916 |
) |
|
|
1,086 |
|
Net cash provided by operating activities |
|
42,296 |
|
|
|
63,842 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(29,940 |
) |
|
|
(20,134 |
) |
Proceeds from divestitures, net of cash disposed |
|
48,499 |
|
|
|
19,355 |
|
Proceeds from sale of property, plant and equipment |
|
3,188 |
|
|
|
2,952 |
|
Proceeds from insurance property claim |
|
1,385 |
|
|
|
— |
|
Net cash provided by investing activities |
|
23,132 |
|
|
|
2,173 |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Borrowings on lines of credit |
|
177,541 |
|
|
|
198,486 |
|
Payments on lines of credit |
|
(224,292 |
) |
|
|
(229,657 |
) |
Debt issuance costs |
|
(50 |
) |
|
|
— |
|
Purchases of treasury stock |
|
(4,504 |
) |
|
|
(28,226 |
) |
Proceeds from employee stock plans |
|
17 |
|
|
|
179 |
|
Other financing activities |
|
(9,538 |
) |
|
|
(2,950 |
) |
Net cash used in financing activities |
|
(60,826 |
) |
|
|
(62,168 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
(119 |
) |
|
|
(504 |
) |
|
|
|
|
||||
Net increase in cash, cash equivalents, and restricted cash |
|
4,483 |
|
|
|
3,343 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
38,901 |
|
|
|
25,061 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
43,384 |
|
|
$ |
28,404 |
|
Newpark Resources, Inc. |
Non-GAAP Reconciliations |
(Unaudited) |
To help understand the Company’s financial performance, the Company has supplemented its financial results that it provides in accordance with generally accepted accounting principles (“GAAP”) with non-GAAP financial measures. Such financial measures include Adjusted Income (Loss) from Continuing Operations, Adjusted Income (Loss) from Continuing Operations Per Common Share, earnings before interest, taxes, depreciation and amortization (“EBITDA”) from Continuing Operations, Adjusted EBITDA from Continuing Operations, Free Cash Flow, and Adjusted EBITDA Margin from Continuing Operations. |
We believe these non-GAAP financial measures are frequently used by investors, securities analysts and other parties in the evaluation of our performance and liquidity with that of other companies in our industry. Management uses these measures to evaluate our operating performance, liquidity and capital structure. In addition, our incentive compensation plan measures performance based on our consolidated EBITDA, along with other factors. The methods we use to produce these non-GAAP financial measures may differ from methods used by other companies. These measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with GAAP. |
Adjusted Income (Loss) from Continuing Operations and Adjusted Income (Loss) from Continuing Operations Per Common Share |
The following tables reconcile the Company’s income (loss) from continuing operations and income (loss) from continuing operations per common share calculated in accordance with GAAP to the non-GAAP financial measures of Adjusted Net Income (Loss) from Continuing Operations and Adjusted Net Income (Loss) from Continuing Operations Per Common Share: |
Consolidated |
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(In thousands) |
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Income from continuing operations (GAAP) |
$ |
14,869 |
|
|
$ |
8,628 |
|
|
$ |
2,680 |
|
|
$ |
27,551 |
|
|
$ |
8,981 |
|
Gain on insurance recovery |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
Gain on legal settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(550 |
) |
|
|
— |
|
Severance costs |
|
113 |
|
|
|
175 |
|
|
|
466 |
|
|
|
921 |
|
|
|
1,487 |
|
Tax on adjustments |
|
(24 |
) |
|
|
(37 |
) |
|
|
(98 |
) |
|
|
(64 |
) |
|
|
(312 |
) |
Unusual tax items (1) |
|
(14,617 |
) |
|
|
— |
|
|
|
— |
|
|
|
(14,617 |
) |
|
|
— |
|
Adjusted Income from Continuing Operations (non-GAAP) |
$ |
341 |
|
|
$ |
8,766 |
|
|
$ |
3,048 |
|
|
$ |
13,174 |
|
|
$ |
10,156 |
|
Adjusted Income from Continuing Operations (non-GAAP) |
$ |
341 |
|
$ |
8,766 |
|
$ |
3,048 |
|
$ |
13,174 |
|
$ |
10,156 |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares outstanding - basic |
|
86,377 |
|
|
85,473 |
|
|
86,310 |
|
|
85,619 |
|
|
86,873 |
|||||
Dilutive effect of stock options and restricted stock awards |
|
1,113 |
|
|
2,153 |
|
|
1,724 |
|
|
1,834 |
|
|
1,810 |
|||||
Weighted average common shares outstanding - diluted |
|
87,490 |
|
|
87,626 |
|
|
88,034 |
|
|
87,453 |
|
|
88,683 |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Income from Continuing Operations Per Common Share - Diluted (non-GAAP): |
$ |
— |
|
$ |
0.10 |
|
$ |
0.03 |
|
$ |
0.15 |
|
$ |
0.11 |
|||||
(1) Unusual tax items primarily reflects the release of valuation allowances on |
|||||||||||||||||||
Newpark Resources, Inc. |
Non-GAAP Reconciliations (Continued) |
(Unaudited) |
EBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations, and Adjusted EBITDA Margin from Continuing Operations |
The following table reconciles the Company’s income (loss) from continuing operations calculated in accordance with GAAP to the non-GAAP financial measures of EBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations, and Adjusted EBITDA Margin from Continuing Operations: |
Consolidated |
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(In thousands) |
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Revenues |
$ |
44,207 |
|
|
$ |
66,791 |
|
|
$ |
57,262 |
|
|
$ |
159,965 |
|
|
$ |
161,193 |
|
Income from continuing operations (GAAP) |
$ |
14,869 |
|
|
$ |
8,628 |
|
|
$ |
2,680 |
|
|
$ |
27,551 |
|
|
$ |
8,981 |
|
Interest expense, net |
|
943 |
|
|
|
909 |
|
|
|
1,017 |
|
|
|
2,612 |
|
|
|
3,154 |
|
Provision (benefit) for income taxes |
|
(14,016 |
) |
|
|
2,483 |
|
|
|
2,062 |
|
|
|
(9,626 |
) |
|
|
4,900 |
|
Depreciation and amortization |
|
5,592 |
|
|
|
5,674 |
|
|
|
5,821 |
|
|
|
16,932 |
|
|
|
17,688 |
|
EBITDA from Continuing Operations (non-GAAP) |
|
7,388 |
|
|
|
17,694 |
|
|
|
11,580 |
|
|
|
37,469 |
|
|
|
34,723 |
|
Gain on insurance recovery |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
Gain on legal settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(550 |
) |
|
|
— |
|
Severance costs |
|
113 |
|
|
|
175 |
|
|
|
466 |
|
|
|
921 |
|
|
|
1,487 |
|
Adjusted EBITDA from Continuing Operations (non-GAAP) |
$ |
7,501 |
|
|
$ |
17,869 |
|
|
$ |
12,046 |
|
|
$ |
37,773 |
|
|
$ |
36,210 |
|
Adjusted EBITDA Margin from Continuing Operations (non-GAAP) |
|
17.0 |
% |
|
|
26.8 |
% |
|
|
21.0 |
% |
|
|
23.6 |
% |
|
|
22.5 |
% |
Free Cash Flow |
|||||||||||||||||||
The following table reconciles the Company’s net cash provided by operating activities calculated in accordance with GAAP to the non-GAAP financial measure of Free Cash Flow: |
|||||||||||||||||||
Consolidated |
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(In thousands) |
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Net cash provided by operating activities (GAAP) |
$ |
2,765 |
|
|
|
27,581 |
|
|
$ |
26,994 |
|
|
$ |
42,296 |
|
|
$ |
63,842 |
|
Capital expenditures |
|
(9,472 |
) |
|
|
(6,586 |
) |
|
|
(4,787 |
) |
|
|
(29,940 |
) |
|
|
(20,134 |
) |
Proceeds from sale of property, plant and equipment |
|
1,146 |
|
|
|
899 |
|
|
|
648 |
|
|
|
3,188 |
|
|
|
2,952 |
|
Free Cash Flow (non-GAAP) |
$ |
(5,561 |
) |
|
$ |
21,894 |
|
|
$ |
22,855 |
|
|
$ |
15,544 |
|
|
$ |
46,660 |
|
Newpark Resources, Inc. |
|||||||||||||||||||
Non-GAAP Reconciliations (Continued) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin |
|||||||||||||||||||
The following tables reconcile the Company’s segment operating income calculated in accordance with GAAP to the non-GAAP financial measures of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin: |
|||||||||||||||||||
Industrial Solutions |
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(In thousands) |
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Revenues |
$ |
44,207 |
|
|
$ |
66,791 |
|
|
$ |
57,262 |
|
|
$ |
159,965 |
|
|
$ |
161,193 |
|
Operating income (GAAP) |
|
7,286 |
|
|
$ |
19,392 |
|
|
$ |
14,336 |
|
|
$ |
39,614 |
|
|
$ |
41,593 |
|
Depreciation and amortization |
|
5,155 |
|
|
|
5,215 |
|
|
|
5,224 |
|
|
|
15,551 |
|
|
|
15,758 |
|
EBITDA (non-GAAP) |
|
12,441 |
|
|
|
24,607 |
|
|
|
19,560 |
|
|
|
55,165 |
|
|
|
57,351 |
|
Gain on insurance recovery |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
Gain on legal settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(550 |
) |
|
|
— |
|
Severance costs |
|
49 |
|
|
|
175 |
|
|
|
162 |
|
|
|
742 |
|
|
|
254 |
|
Adjusted EBITDA (non-GAAP) |
$ |
12,490 |
|
|
$ |
24,782 |
|
|
$ |
19,722 |
|
|
$ |
55,290 |
|
|
$ |
57,605 |
|
Operating Margin (GAAP) |
|
16.5 |
% |
|
|
29.0 |
% |
|
|
25.0 |
% |
|
|
24.8 |
% |
|
|
25.8 |
% |
Adjusted EBITDA Margin (non-GAAP) |
|
28.3 |
% |
|
|
37.1 |
% |
|
|
34.4 |
% |
|
|
34.6 |
% |
|
|
35.7 |
% |
Newpark Resources, Inc. |
|||||||||||||||||||
Non-GAAP Reconciliations (Continued) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
Trailing Twelve Months (“TTM”) |
|||||||||||||||||||
Consolidated |
Three Months Ended |
|
TTM |
||||||||||||||||
(In thousands) |
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Revenues |
$ |
46,455 |
|
|
$ |
48,967 |
|
|
$ |
66,791 |
|
|
$ |
44,207 |
|
|
$ |
206,420 |
|
Income from Continuing Operations (GAAP) |
$ |
5,168 |
|
|
$ |
4,054 |
|
|
$ |
8,628 |
|
|
$ |
14,869 |
|
|
$ |
32,719 |
|
Interest expense, net |
|
953 |
|
|
|
760 |
|
|
|
909 |
|
|
|
943 |
|
|
|
3,565 |
|
Provision (benefit) for income taxes |
|
673 |
|
|
|
1,907 |
|
|
|
2,483 |
|
|
|
(14,016 |
) |
|
|
(8,953 |
) |
Depreciation and amortization |
|
5,908 |
|
|
|
5,666 |
|
|
|
5,674 |
|
|
|
5,592 |
|
|
|
22,840 |
|
EBITDA from Continuing Operations (non-GAAP) |
|
12,702 |
|
|
|
12,387 |
|
|
|
17,694 |
|
|
|
7,388 |
|
|
|
50,171 |
|
Gain on insurance recovery |
|
— |
|
|
|
(67 |
) |
|
|
— |
|
|
|
— |
|
|
|
(67 |
) |
Gain on legal settlement |
|
— |
|
|
|
(550 |
) |
|
|
— |
|
|
|
— |
|
|
|
(550 |
) |
Severance costs |
|
— |
|
|
|
633 |
|
|
|
175 |
|
|
|
113 |
|
|
|
921 |
|
Adjusted EBITDA from Continuing Operations (non-GAAP) |
$ |
12,702 |
|
|
$ |
12,403 |
|
|
$ |
17,869 |
|
|
$ |
7,501 |
|
|
$ |
50,475 |
|
Adjusted EBITDA Margin from Continuing Operations (non-GAAP) |
|
27.3 |
% |
|
|
25.3 |
% |
|
|
26.8 |
% |
|
|
17.0 |
% |
|
|
24.5 |
% |
Industrial Solutions |
Three Months Ended |
|
TTM |
||||||||||||||||
(In thousands) |
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
||||||||||
Revenues |
$ |
46,455 |
|
|
$ |
48,967 |
|
|
$ |
66,791 |
|
|
$ |
44,207 |
|
|
$ |
206,420 |
|
Operating income (GAAP) |
$ |
11,415 |
|
|
$ |
12,936 |
|
|
$ |
19,392 |
|
|
$ |
7,286 |
|
|
$ |
51,029 |
|
Depreciation and amortization |
|
5,350 |
|
|
|
5,181 |
|
|
|
5,215 |
|
|
|
5,155 |
|
|
|
20,901 |
|
EBITDA (non-GAAP) |
|
16,765 |
|
|
|
18,117 |
|
|
|
24,607 |
|
|
|
12,441 |
|
|
|
71,930 |
|
Gain on insurance recovery |
|
— |
|
|
|
(67 |
) |
|
|
— |
|
|
|
— |
|
|
|
(67 |
) |
Gain on legal settlement |
|
— |
|
|
|
(550 |
) |
|
|
— |
|
|
|
— |
|
|
|
(550 |
) |
Severance costs |
|
— |
|
|
|
518 |
|
|
|
175 |
|
|
|
49 |
|
|
|
742 |
|
Adjusted EBITDA (non-GAAP) |
$ |
16,765 |
|
|
$ |
18,018 |
|
|
$ |
24,782 |
|
|
$ |
12,490 |
|
|
$ |
72,055 |
|
Operating Margin (GAAP) |
|
24.6 |
% |
|
|
26.4 |
% |
|
|
29.0 |
% |
|
|
16.5 |
% |
|
|
24.7 |
% |
Adjusted EBITDA Margin (non-GAAP) |
|
36.1 |
% |
|
|
36.8 |
% |
|
|
37.1 |
% |
|
|
28.3 |
% |
|
|
34.9 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107381828/en/
IR CONTACT
Noel Ryan or Paul Bartolai
Investors@Newpark.com
Source: Newpark Resources, Inc.
FAQ
What was Newpark Resources (NR) revenue in Q3 2024?
How much did Newpark Resources (NR) receive from the Fluids Systems sale?
What was Newpark Resources (NR) operating income in Q3 2024?
What is Newpark Resources (NR) cash position as of September 30, 2024?
