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RPC, Inc. Reports Fourth Quarter And Full Year 2024 Financial Results And Declares Regular Quarterly Cash Dividend

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RPC Inc. (NYSE: RES) reported its Q4 and full-year 2024 financial results. Q4 revenues decreased 1% sequentially to $335.4 million, with net income falling 32% to $12.8 million ($0.06 EPS). Adjusted EBITDA was $46.1 million, down 17% with a 13.7% margin.

For full-year 2024, revenues declined 13% to $1.4 billion, with net income of $91.4 million ($0.43 EPS). The company generated $349.4 million in operating cash flow and $129.5 million in free cash flow. RPC maintained a debt-free status, paid $34.4 million in dividends, and repurchased $9.9 million of common stock.

The company plans capital spending of $150-200 million in 2025 and ended 2024 with over $300 million in cash. The Board declared a quarterly dividend of $0.04 per share, payable March 10, 2025.

RPC Inc. (NYSE: RES) ha riportato i risultati finanziari per il quarto trimestre e l'intero anno 2024. Le entrate del quarto trimestre sono diminuite dell'1% rispetto al trimestre precedente, raggiungendo i 335,4 milioni di dollari, con un utile netto in calo del 32% a 12,8 milioni di dollari (0,06 dollari per azione). L'EBITDA rettificato è stato di 46,1 milioni di dollari, in diminuzione del 17%, con un margine del 13,7%.

Per l'intero anno 2024, le entrate sono diminuiti del 13%, raggiungendo 1,4 miliardi di dollari, con un utile netto di 91,4 milioni di dollari (0,43 dollari per azione). L'azienda ha generato 349,4 milioni di dollari di flusso di cassa operativo e 129,5 milioni di dollari di flusso di cassa libero. RPC ha mantenuto uno stato di assenza di debito, ha pagato 34,4 milioni di dollari in dividendi e ha riacquistato 9,9 milioni di dollari di azioni ordinarie.

L'azienda prevede spese in conto capitale comprese tra 150 e 200 milioni di dollari nel 2025 e ha chiuso il 2024 con oltre 300 milioni di dollari in contante. Il Consiglio ha dichiarato un dividendo trimestrale di 0,04 dollari per azione, pagabile il 10 marzo 2025.

RPC Inc. (NYSE: RES) reportó sus resultados financieros del cuarto trimestre y del año completo 2024. Los ingresos del cuarto trimestre disminuyeron un 1% secuencialmente, alcanzando los 335,4 millones de dólares, con un ingreso neto cayendo un 32% a 12,8 millones de dólares (0,06 dólares por acción). El EBITDA ajustado fue de 46,1 millones de dólares, un 17% menos, con un margen del 13,7%.

Para el año completo 2024, los ingresos cayeron un 13% a 1,4 mil millones de dólares, con un ingreso neto de 91,4 millones de dólares (0,43 dólares por acción). La compañía generó 349,4 millones de dólares en flujo de caja operativo y 129,5 millones de dólares en flujo de caja libre. RPC mantuvo un estatus libre de deudas, pagó 34,4 millones de dólares en dividendos y recompró 9,9 millones de dólares en acciones comunes.

La empresa planea gastos de capital de entre 150 y 200 millones de dólares en 2025 y cerró 2024 con más de 300 millones de dólares en efectivo. La Junta declaró un dividendo trimestral de 0,04 dólares por acción, pagadero el 10 de marzo de 2025.

RPC Inc. (NYSE: RES)는 2024년 4분기 및 연간 재무 결과를 발표했습니다. 4분기 매출은 전년 대비 1% 감소하여 3억 3천5백40만 달러에 이르렀으며, 순이익은 32% 감소한 1천280만 달러(주당 0.06달러)였습니다. 조정된 EBITDA는 4천610만 달러로 17% 감소했으며, 13.7%의 마진을 기록했습니다.

2024년 전체 매출은 13% 감소하여 14억 달러에 이르렀고, 순이익은 9천140만 달러(주당 0.43달러)였습니다. 이 회사는 3억 4천9백40만 달러의 운영 현금 흐름과 1억 2천9백50만 달러의 자유 현금 흐름을 창출했습니다. RPC는 무부채 상태를 유지하며, 3천4백만 달러의 배당금을 지급하고 9백90만 달러의 보통주를 재매입했습니다.

회사는 2025년에 1억 5천만 달러에서 2억 달러의 자본 지출을 계획하고 있으며, 2024년을 현금 3억 달러 이상으로 마감했습니다. 이사회는 주당 0.04달러의 분기 배당금을 선언했으며, 2025년 3월 10일에 지급될 예정입니다.

RPC Inc. (NYSE: RES) a annoncé ses résultats financiers du quatrième trimestre et de l'année 2024. Les revenus du quatrième trimestre ont diminué de 1 % par rapport au trimestre précédent, atteignant 335,4 millions de dollars, avec un bénéfice net en baisse de 32 % à 12,8 millions de dollars (0,06 $ par action). L'EBITDA ajusté était de 46,1 millions de dollars, en baisse de 17 %, avec une marge de 13,7 %.

Pour l'année 2024, les revenus ont chuté de 13 % à 1,4 milliard de dollars, avec un bénéfice net de 91,4 millions de dollars (0,43 $ par action). L'entreprise a généré 349,4 millions de dollars de flux de trésorerie d'exploitation et 129,5 millions de dollars de flux de trésorerie disponible. RPC a maintenu un statut sans dette, a versé 34,4 millions de dollars en dividendes et a racheté pour 9,9 millions de dollars d'actions ordinaires.

L'entreprise prévoit des investissements en capital de 150 à 200 millions de dollars en 2025 et a terminé l'année 2024 avec plus de 300 millions de dollars en espèces. Le Conseil a déclaré un dividende trimestriel de 0,04 $ par action, payable le 10 mars 2025.

RPC Inc. (NYSE: RES) hat seine Finanzberichte für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht. Die Einnahmen im vierten Quartal sind im Vergleich zum Vorquartal um 1% auf 335,4 Millionen Dollar gesunken, während der Nettogewinn um 32% auf 12,8 Millionen Dollar (0,06 Dollar pro Aktie) fiel. Bereinigtes EBITDA lag bei 46,1 Millionen Dollar, was einem Rückgang von 17% und einer Marge von 13,7% entspricht.

Für das Gesamtjahr 2024 sanken die Einnahmen um 13% auf 1,4 Milliarden Dollar, mit einem Nettogewinn von 91,4 Millionen Dollar (0,43 Dollar pro Aktie). Das Unternehmen generierte 349,4 Millionen Dollar an operativem Cashflow und 129,5 Millionen Dollar an freiem Cashflow. RPC behielt einen schuldenfreien Status bei, zahlte 34,4 Millionen Dollar an Dividenden und kaufte Aktien im Wert von 9,9 Millionen Dollar zurück.

Das Unternehmen plant Investitionen von 150 bis 200 Millionen Dollar im Jahr 2025 und schloss das Jahr 2024 mit über 300 Millionen Dollar in bar ab. Der Vorstand erklärte eine vierteljährliche Dividende von 0,04 Dollar pro Aktie, die am 10. März 2025 fällig ist.

Positive
  • Debt-free balance sheet with $326 million cash position
  • Strong operating cash flow of $349.4 million in 2024
  • Free cash flow generation of $129.5 million
  • Continued shareholder returns through dividends ($34.4M) and share buybacks ($9.9M)
Negative
  • Q4 revenues decreased 1% sequentially to $335.4M
  • Q4 net income declined 32% sequentially to $12.8M
  • Full-year 2024 revenues dropped 13% to $1.4B
  • Adjusted EBITDA margin decreased 270 basis points to 13.7%
  • Highly competitive market conditions affecting pricing

Insights

The Q4 2024 results reveal concerning trends in RPC's operational efficiency and market positioning. The 270 basis point sequential decline in Adjusted EBITDA margin to 13.7% signals significant pressure on profitability, despite relatively stable revenues. This compression stems from multiple factors:

The Technical Services segment, particularly pressure pumping, faces an increasingly competitive landscape, evidenced by pricing pressures despite improved utilization. This dynamic suggests potential market share preservation at the expense of margins. The Support Services segment's sharp 51% operating income decline on a 14% revenue drop indicates concerning operating leverage issues.

However, RPC's financial strategy demonstrates prudent management:

  • Maintained a robust balance sheet with $326 million cash position
  • Generated substantial free cash flow of $129.5 million
  • Balanced capital returns through $34.4 million in dividends and $9.9 million in share repurchases

The planned capital expenditure of $150-200 million for 2025 and focus on innovative downhole tools represent strategic pivots toward higher-margin services. This investment cycle, coupled with potential M&A activity, suggests management's proactive approach to addressing margin pressures through service diversification and technological advancement.

The lowered effective tax rate of 9.1% provided a temporary earnings buffer but isn't sustainable long-term. Investors should focus on the core operational metrics, particularly the declining EBITDA margins and segment-specific challenges, as better indicators of future performance.

(PRNewsfoto/RPC, Inc.)

 

ATLANTA, Jan. 30, 2025 /PRNewswire/ -- RPC, Inc. (NYSE: RES) ("RPC" or the "Company"), a leading diversified oilfield services company, announced its unaudited results for the fourth quarter and full year ended December 31, 2024.

* Non-GAAP and adjusted measures, including adjusted operating income, adjusted net income, adjusted earnings per share (diluted), EBITDA and adjusted EBITDA, adjusted EBITDA margin, and free cash flow are reconciled to the most comparable GAAP measures in the appendices of this earnings release.

* Sequential comparisons are to 3Q:24. The Company believes quarterly sequential comparisons are most useful in assessing industry trends and RPC's recent financial results. Both sequential and year-over-year comparisons are available in the tables at the end of this earnings release.

Fourth Quarter 2024 Results

  • Revenues decreased 1% sequentially to $335.4 million
  • Net income was $12.8 million, down 32% sequentially, and diluted Earnings Per Share (EPS) was $0.06; Net income margin decreased 180 basis points to 3.8%
  • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $46.1 million, down 17% sequentially; Adjusted EBITDA margin decreased 270 basis points to 13.7%
  • Results reflected improved utilization driving higher revenues in pressure pumping, while the Company's other service lines' revenues were generally lower due to seasonal softness

Full Year 2024 Results

  • Revenues decreased 13% versus prior year to $1.4 billion
  • Net income was $91.4 million and diluted Earnings Per Share (EPS) was $0.43; Net income margin was 6.5%
  • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $233.0 million; Adjusted EBITDA margin was 16.5%
  • Net cash flow from operating activities was $349.4 million and free cash flow was $129.5 million
  • The Company remained debt-free, paid $34.4 million in dividends, and repurchased $9.9 million of common stock in 2024 (including $7.5 million of buyback program repurchases)

Management Commentary

"We finished 2024 with a slight sequential improvement in pressure pumping results, while the rest of the business was generally soft, reflecting typically lower fourth quarter customer activity," stated Ben M. Palmer, RPC's President and Chief Executive Officer. "The improved utilization of our pressure pumping assets, off a weak third quarter, was driven by tier 4 dual fuel asset demand. While there is some general energy sector optimism regarding the new presidential administration, the oilfield services industry remains highly competitive."

"Looking forward in 2025, we are optimistic about our new products and services in downhole tools gaining traction after early positive results in 2024. We plan to continue investing in innovation across the business and project capital spending in the range of $150 million to $200 million this year. Pursuing acquisitions to expand our business remains another key strategic priority, and we remain focused on targeting high cash flow, profitable operations with strong customer bases. Our debt-free balance sheet remains strong and liquid, with over $300 million in cash at year end to fund organic investments, potential acquisitions and capital returns to our investors," concluded Palmer.

Selected Industry Data (Source: Baker Hughes, Inc., U.S. Energy Information Administration)
























4Q:24


3Q:24


Change


% Change


4Q:23


Change


% Change


U.S. rig count (avg)



586



586




%


622



(36)


(5.8) %


Oil price ($/barrel)


$

70.59


$

76.57


$

(5.98)


(7.8)

%

$

78.52


$

(7.93)


(10.1) %


Natural gas ($/Mcf)


$

2.43


$

2.10


$

0.33


15.7

%

$

2.74


$

(0.31)


(11.3) %


 

4Q:24 Consolidated Financial Results (Sequential Comparisons versus 3Q:24)

Revenues were $335.4 million, down 1%. Revenues for pressure pumping, the Company's largest service line, increased 3%, while all other service lines combined decreased 3%. Within the Technical Services segment, pressure pumping revenues increased primarily due to higher asset utilization, while pricing remains highly competitive in the marketplace. Coiled tubing revenues also increased after a soft third quarter with growth across several large customers, including some new business gains. Service lines such as downhole tools (Technical Services segment) and rental tools (Support Services segment) were lower in the quarter due to seasonal slowdowns. New product launches in downhole tools continued to gain initial customer acceptance and are expected to contribute more meaningfully in 2025.

Cost of revenues, which excludes depreciation and amortization of $32.0 million, was $250.2 million, up from $247.5 million. These costs increased 1% during the quarter despite a modest revenue decline. The increase was primarily due to higher insurance costs. In addition, employee benefit costs increased but were offset by lower maintenance and repair ("M&R") expenses. M&R decreased after a high third quarter as the Company performed maintenance activities during that lower utilization period.

Selling, general and administrative expenses were $41.2 million, up from $37.7 million; as a % of revenues, SG&A increased 110 basis points to 12.3% due primarily to the timing of incentive costs.

Interest income totaled $3.3 million, reflecting lower interest rates, partially offset by higher cash balances.

Income tax provision was $1.3 million, or 9.1% of income before income taxes, below the Company's typical tax rate, primarily due to the implementation of certain tax planning strategies and interest received on tax refunds.

Net income and diluted EPS were $12.8 million and $0.06, respectively, down from $18.8 million and $0.09, respectively, in 3Q:24. Net income margin decreased 180 basis points sequentially to 3.8%.

Adjusted EBITDA was $46.1 million, down from $55.2 million, reflecting slightly lower revenues, associated negative operating leverage and fixed cost absorption, and the insurance costs referenced above. Adjusted EBITDA margin decreased 270 basis points sequentially to 13.7%.

Non-GAAP adjustments: there were no adjustments to GAAP performance measures in 4Q:24 other than those necessary to calculate EBITDA, Adjusted EBITDA and free cash flow (see Appendices A, B, C and D).

Balance Sheet, Cash Flow and Capital Allocation

Cash and cash equivalents were $326.0 million at the end of 2024, with no outstanding borrowings under the Company's $100 million revolving credit facility (facility subject to $16.3 million outstanding letters of credit).

Net cash provided by operating activities and free cash flow were $349.4 million and $129.5 million, respectively, in 2024. Operating cash flow benefitted from the $53 million tax refund received in 2Q:24 as well as other favorable working capital timing inflows during 4Q:24.

Payment of dividends totaled $34.4 million in 2024. The Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on March 10, 2025, to common stockholders of record at the close of business on February 10, 2025.

Share repurchases totaled $9.9 million in 2024. Buybacks under the Company's share repurchase program totaled $7.5 million in 2024 (1,010,258 shares).

Segment Operations: Sequential Comparisons (versus 3Q:24)

Technical Services performs value-added completion, production and maintenance services directly to a customer's well. These services include pressure pumping, downhole tools, coiled tubing, cementing, and other offerings.

  • Revenues were essentially unchanged at $314.6 million
  • Operating income was $10.6 million, down 35%
  • Results were driven primarily by higher direct costs (insurance-related) and SG&A costs despite flat revenues

Support Services provides equipment for customer use or services to assist customer operations, including rental tools, and pipe inspection services and storage.

  • Revenues were $20.7 million, down 14%
  • Operating income was $2.6 million, down 51%
  • Results were driven by lower activity in rental tools and the high fixed-cost nature of these service lines


















Three Months Ended


Year Ended



December 31, 


September 30, 


December 31, 


December 31, 


December 31, 

(In thousands)


2024


2024


2023


2024


2023




(Unaudited)



(Unaudited)



(Unaudited)



(Unaudited)




Revenues:
















Technical Services


$

314,635


$

313,492


$

371,059


$

1,326,005


$

1,516,137

Support Services



20,726



24,160



23,472



88,994



101,337

Total revenues


$

335,361


$

337,652


$

394,531


$

1,414,999


$

1,617,474

Operating income:
















Technical Services


$

10,603


$

16,344


$

46,442


$

89,101


$

245,904

Support Services



2,572



5,286



5,036



15,836



26,461

Corporate expenses



(4,515)



(4,216)



(3,880)



(15,598)



(18,473)

Pension settlement charges











(18,286)

Gain on disposition of assets, net



1,857



1,790



1,615



8,199



9,344

Total operating income


$

10,517


$

19,204


$

49,213


$

97,538


$

244,950

Interest expense



(130)



(261)



(95)



(724)



(341)

Interest income



3,303



3,523



2,596



13,134



8,599

Other income, net



350



1,005



839



2,854



3,035

Income before income taxes


$

14,040


$

23,471


$

52,553


$

112,802


$

256,243

 

Conference Call Information

RPC, Inc. will hold a conference call today, January 30, 2025, at 9:00 a.m. ET to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of RPC, Inc.'s website at www.rpc.net. The live conference call can also be accessed by calling (888) 440-5966, or (646) 960-0125 for international callers, and use conference ID number 9842359. For those not able to attend the live conference call, a replay will be available in the investor relations section of RPC, Inc.'s website beginning approximately two hours after the call and for a period of 90 days.

About RPC

RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of Mexico, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC's investor website can be found at www.rpc.net.

Forward Looking Statements

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations or hopes. In particular, such statements include, without limitation: statements regarding our optimism about our new products and services in downhole tools gaining traction after early positive results in 2024, our plan to continue investing in innovation across the business, statements regarding projected capital spending in the range of $150 million to $200 million in 2025, statements regarding acquisitions to expand our business remaining a key strategic priority and our focus on targeting high cash flow, profitable operations with strong customer bases, our belief that with over $300 million in cash at year end we will be able to fund organic investments, potential acquisitions and capital returns to our investors, and that new product launches in downhole tools are expected to contribute more meaningfully in 2025. Risk factors that could cause such future events not to occur as expected include the following: the price of oil and natural gas and overall performance of the U.S. economy, both of which can impact capital spending by our customers and demand for our services; business interruptions due to adverse weather conditions; changes in the competitive environment of our industry; political instability in the petroleum-producing regions of the world; the actions of the OPEC oil cartel; our customers' drilling and production activities; the risk that our assessments, such as regarding the oversupplied nature of oilfield services, will turn out incorrect; and our ability to identify and complete acquisitions and/or other strategic investments or transactions. Additional factors that could cause the actual results to differ materially from management's projections, forecasts, estimates, and expectations are contained in RPC's Form 10-K for the year ended December 31, 2023.

For information about RPC, Inc., please contact:

Mark Chekanow, CFA, Vice President Investor Relations
(404) 419-3809
mark.chekanow@rpc.net

Michael L. Schmit, Chief Financial Officer
(404) 321-2140
irdept@rpc.net

RPC INCORPORATED AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)



















Three Months Ended


Year Ended



December 31, 


September 30, 


December 31, 


December 31, 


December 31, 



2024


2024


2023


2024


2023




(Unaudited)



(Unaudited)



(Unaudited)



(Unaudited)




















REVENUES


$

335,361


$

337,652


$

394,531


$

1,414,999


$

1,617,474

COSTS AND EXPENSES:
















Cost of revenues (exclusive of depreciation and amortization shown separately below)



250,248



247,507



279,399



1,036,648



1,089,519

Selling, general and administrative expenses



41,249



37,697



38,127



156,437



165,940

Pension settlement charges











18,286

Depreciation and amortization



35,204



35,034



29,407



132,575



108,123

Gain on disposition of assets, net



(1,857)



(1,790)



(1,615)



(8,199)



(9,344)

Operating income



10,517



19,204



49,213



97,538



244,950

Interest expense



(130)



(261)



(95)



(724)



(341)

Interest income



3,303



3,523



2,596



13,134



8,599

Other income, net



350



1,005



839



2,854



3,035

Income before income taxes



14,040



23,471



52,553



112,802



256,243

Income tax provision



1,278



4,675



12,294



21,358



61,130

NET INCOME


$

12,762


$

18,796


$

40,259


$

91,444


$

195,113

































EARNINGS PER SHARE
















Basic


$

0.06


$

0.09


$

0.19


$

0.43


$

0.90

Diluted


$

0.06


$

0.09


$

0.19


$

0.43


$

0.90

















WEIGHTED AVERAGE SHARES OUTSTANDING
















Basic



214,950



214,976



216,006



214,942



216,472

Diluted



214,950



214,976



216,006



214,942



216,472

 

RPC INCORPORATED AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS










(In thousands)



December 31, 


December 31, 



2024


2023




(Unaudited)




ASSETS







Cash and cash equivalents


$

325,975


$

223,310

Accounts receivable, net



276,577



324,915

Inventories



107,628



110,904

Income taxes receivable



4,332



52,269

Prepaid expenses



16,136



12,907

Other current assets



2,194



2,768

Total current assets



732,842



727,073

Property, plant and equipment, net



513,516



435,139

Operating lease right-of-use assets



27,465



24,537

Finance lease right-of-use assets



4,400



1,036

Goodwill



50,824



50,824

Other intangibles, net



13,843



12,825

Retirement plan assets



30,666



26,772

Other assets



12,933



8,639

Total assets


$

1,386,489


$

1,286,845








LIABILITIES AND STOCKHOLDERS' EQUITY







LIABILITIES







Accounts payable


$

84,494


$

85,036

Accrued payroll and related expenses



25,243



30,956

Accrued insurance expenses



7,942



5,340

Accrued state, local and other taxes



3,234



4,461

Income taxes payable



446



275

Unearned revenue



45,376



15,743

Current portion of operating lease liabilities



7,108



7,367

Current portion of finance lease liabilities and finance obligations



3,522



375

Accrued expenses and other liabilities



4,548



2,304

Total current liabilities



181,913



151,857

Long-term accrued insurance expenses



12,175



10,202

Retirement plan liabilities



24,539



23,724

Long-term operating lease liabilities



21,724



18,600

Long-term finance lease liabilities



559



819

Other long-term liabilities



9,099



7,840

Deferred income taxes



58,189



51,290

Total liabilities



308,198



264,332


STOCKHOLDERS' EQUITY 

Common stock



21,494



21,502

Capital in excess of par value





Retained earnings



1,059,625



1,003,380

Accumulated other comprehensive loss



(2,828)



(2,369)

Total stockholders' equity



1,078,291



1,022,513

Total liabilities and stockholders' equity


$

1,386,489


$

1,286,845

 

RPC INCORPORATED AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS










(In thousands)

Twelve Months Ended December 31, 


2024


2023




(Unaudited)




OPERATING ACTIVITIES







Net income


$

91,444


$

195,113

Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization



132,575



108,123

Pension settlement charge





18,286

Working capital



116,663



57,810

Other operating activities



8,704



15,431

Net cash provided by operating activities



349,386



394,763








INVESTING ACTIVITIES







Capital expenditures



(219,930)



(181,005)

Proceeds from sale of assets



18,379



18,091

Purchase of business





(78,798)

Net cash used for investing activities



(201,551)



(241,712)








FINANCING ACTIVITIES







Payment of dividends



(34,433)



(34,562)

Cash paid for common stock purchased and retired



(9,938)



(21,088)

Cash paid for finance lease and finance obligations



(799)



(515)

Net cash used for financing activities



(45,170)



(56,165)








Net increase in cash and cash equivalents



102,665



96,886

Cash and cash equivalents at beginning of period



223,310



126,424

Cash and cash equivalents at end of period


$

325,975


$

223,310

 

Non-GAAP Measures

RPC, Inc. has used the non-GAAP financial measures of adjusted operating income, adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and free cash flow in today's earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting these non-GAAP measures enables investors to compare the operating performance of our core business consistently over various time periods, and in the case of EBITDA and adjusted EBITDA, without regard to changes in our capital structure. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating RPC's liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, RPC's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows.

A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on RPC, Inc.'s investor website, which can be found on the Internet at www.rpc.net.

Appendix A

















(Unaudited)


Three Months Ended


Year Ended



December 31, 


September 30, 


December 31, 


December 31, 


December 31, 

(In thousands)


2024


2024


2023


2024


2023

Reconciliation of Operating Income to Adjusted
Operating Income
































Operating income


$

10,517


$

19,204


$

49,213


$

97,538


$

244,950

Add: Pension settlement charges











18,286

Adjusted operating income


$

10,517


$

19,204


$

49,213


$

97,538


$

263,236

 

Appendix B

















(Unaudited)


Three Months Ended


Year Ended



December 31, 


September 30, 


December 31, 


December 31, 


December 31, 

(In thousands)


2024


2024


2023


2024


2023

Reconciliation of Net Income to Adjusted Net Income
































Net income


$

12,762


$

18,796


$

40,259


$

91,444


$

195,113

Adjustments:
















Add: Pension settlement charges, before taxes











18,286

Less: Tax effect of pension settlement charges











(4,370)

Total adjustments, net of tax











13,916

Adjusted net income


$

12,762


$

18,796


$

40,259


$

91,444


$

209,029

 

































(Unaudited)


Three Months Ended


Year Ended



December 31, 


September 30, 


December 31, 


December 31, 


December 31, 



2024


2024


2023


2024


2023

Reconciliation of Diluted Earnings Per Share to Adjusted
Diluted Earnings Per Share
































Diluted earnings per share


$

0.06


$

0.09


$

0.19


$

0.43


$

0.90

Adjustments:
















Add: Pension settlement charges, before taxes











0.09

   Less: Tax effect of pension settlement charges











(0.02)

Total adjustments, net of tax











0.07

Adjusted diluted earnings per share


$

0.06


$

0.09


$

0.19


$

0.43


$

0.97

















Weighted average shares outstanding (in thousands)



214,950



214,976



216,006



214,942



216,472

 

Appendix C

(Unaudited)


Three Months Ended


Year Ended



December 31, 


September 30, 


December 31, 


December 31, 


December 31, 

(In thousands)


2024


2024


2023


2024


2023

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
















Net income


$

12,762


$

18,796


$

40,259


$

91,444


$

195,113

Adjustments:
















Add: Income tax provision



1,278



4,675



12,294



21,358



61,130

Add: Interest expense



130



261



95



724



341

Add: Depreciation and amortization



35,204



35,034



29,407



132,575



108,123

Less: Interest income



3,303



3,523



2,596



13,134



8,599

EBITDA


$

46,071


$

55,243


$

79,459


$

232,967


$

356,108

Add: Pension settlement charges











18,286

Adjusted EBITDA


$

46,071


$

55,243


$

79,459


$

232,967


$

374,394

















Revenues


$

335,361


$

337,652


$

394,531


$

1,414,999


$

1,617,474

















Net income margin(1)



3.8 %



5.6 %



10.2 %



6.5 %



12.1 %

















Adjusted EBITDA margin(1)



13.7 %



16.4 %



20.1 %



16.5 %



23.1 %


(1) Net income margin is calculated as net income divided by revenues. EBITDA margin is calculated as EBITDA divided by revenues.

 

Appendix D

(Unaudited)


Twelve Months Ended



December 31,


December 31,

(In thousands)


2024


2023

Reconciliation of Operating Cash Flow to Free Cash Flow







Net cash provided by operating activities


$

349,386


$

394,763

Capital expenditures



(219,930)



(181,005)

Free cash flow


$

129,456


$

213,758

 

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SOURCE RPC, Inc.

FAQ

What were RPC's (RES) Q4 2024 financial results?

RPC reported Q4 2024 revenues of $335.4M (down 1% sequentially), net income of $12.8M (down 32%), and EPS of $0.06. Adjusted EBITDA was $46.1M with a 13.7% margin.

How much cash does RPC (RES) have at the end of 2024?

RPC ended 2024 with $326.0 million in cash and cash equivalents, with no outstanding debt.

What is RPC's (RES) planned capital spending for 2025?

RPC plans capital spending in the range of $150 million to $200 million for 2025.

How much did RPC (RES) return to shareholders in 2024?

RPC returned capital to shareholders through $34.4 million in dividends and $9.9 million in share repurchases during 2024.

What is RPC's (RES) latest quarterly dividend?

RPC declared a regular quarterly cash dividend of $0.04 per share, payable on March 10, 2025, to stockholders of record as of February 10, 2025.

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