Company reports net income of $0.06 per diluted share; Adjusted Net Income of
$0.09 per diluted
share
Cash flow from operating activities of $29 million; Free Cash Flow of $23 million
Industrial Solutions
revenues increased 58% year-over-year
THE
WOODLANDS, Texas, May 2, 2023
/PRNewswire/ -- Newpark Resources, Inc. (NYSE: NR) ("Newpark" or
the "Company") today announced results for its first quarter ended
March 31, 2023. Total revenues for
the first quarter of 2023 were $200.0
million compared to $225.2
million for the fourth quarter of 2022 and $176.4 million for the first quarter of 2022. Net
income for the first quarter of 2023 was $5.6 million, or $0.06 per diluted share. Net income was
$9.0 million, or $0.10 per diluted share, for the fourth quarter
of 2022, and $2.5 million, or
$0.03 per diluted share, for the
first quarter of 2022. Adjusted Net Income for the first quarter of
2023 was $0.09 per diluted share and
Adjusted EBITDA was $21.0 million, as
compared to Adjusted Net Income of $0.07 per diluted share and Adjusted EBITDA of
$21.5 million in the fourth quarter
of 2022, and Adjusted Net Loss of $0.00 per share and Adjusted EBITDA of
$11.7 million in the first quarter of
2022.
Matthew Lanigan, Newpark's
President and Chief Executive Officer, stated, "Our first quarter
continued the momentum from the fourth quarter, marked by solid
performance both financially, and against our stated key
initiatives. We also continued to return significant value to
shareholders through the repurchase of nearly 4% of our outstanding
shares in the quarter.
"Our Industrial Solutions segment delivered the strongest first
quarter revenue performance in our history, validating the strength
of our offering and the robustness of market demand. The utilities
and industrial end-markets contributed nearly 80% of our first
quarter Industrial Solutions revenues, and we are pleased with our
progress to solidify Newpark as a leader in the development of
sustainable technologies and services, supporting the energy
transition. First quarter 2023 Industrial Solutions revenues
included a $36 million contribution
from rental and services and $19
million of product sales, resulting in segment operating
income of $14.5 million and Adjusted
EBITDA of $19.7 million for the
quarter. Benefitting from 58% year-over-year revenue growth, the
segment has delivered $213 million of
revenues, $52 million of operating
income and $74 million of Adjusted
EBITDA over the trailing 12-month period. Additionally, we are
pleased to highlight that we began to ramp up production of our new
DURA-BASE® 800 seriesTM mat in the first
quarter, which fully integrates with our existing DURA-BASE format
and offers a nearly 15% reduction in weight, therefore driving
further efficiency in transportation costs and associated carbon
emissions without impacting product performance."
Lanigan continued, "With the effect of the fourth quarter
divestitures within the U.S., Fluids Systems delivered revenues of
$144 million, operating income of
$3.5 million and Adjusted EBITDA of
$8.7 million in the first quarter.
The first quarter included $69
million of revenues from U.S. land markets, $19 million from Canada, and $56
million from international operations, which included a
quarterly record of $53 million from
the EMEA region. Corporate office expense increased to $7.8 million in the first quarter, which includes
nearly $1 million related to
strategic planning activities and an organizational design
project.
"Following the end of the first quarter, we've implemented
several organizational changes to reduce the overhead structure for
the evolving business, intended to streamline operational support,
remove layers of management and simplify our business support
activities to drive decision-making closer to the customer,
particularly within Fluids Systems and the Corporate office. These
recent actions are expected to generate $6
million of annualized recurring cost savings, with the
benefits being realized over the next few quarters.
"Regarding cash flows, we had a very solid start to the year,
reflecting the benefits of our recent divestitures and the ongoing
business transformation. Cash flows from operating activities was
$29 million for the quarter, driving
Free Cash Flow of $23 million. Total
capital expenditures were $7 million,
roughly 95% of which was directed to support our Industrial
Solutions expansion in the utilities sector. The usage of our Free
Cash Flow and proceeds from divestitures was fairly balanced, with
$15 million being used to reduce debt
and another $15 million used to
repurchase shares," added Lanigan.
"As we look ahead to the second quarter, we expect Industrial
Solutions to deliver modest year-over-year revenue growth, which
puts the segment on track to deliver mid-to-upper teens percentage
revenue growth for the full year 2023. Fluids Systems is expected
to pull back roughly 15% sequentially in the second quarter,
reflecting the Canada seasonality
and our ongoing efforts to focus on key markets. We expect
strong Free Cash Flow generation in the second quarter, including
continued robust EBITDA generation in Industrial Solutions along
with reductions in Fluids Systems working capital. During the month
of April, we completed $5 million of
additional share repurchases and our outstanding share count now
stands at 85 million shares, a reduction of nearly 10% within the
past six months," concluded Lanigan.
Strategic Actions Update
As part of the Company's previously disclosed strategic
portfolio review, which focused on identifying opportunities for
value-creating options in the portfolio, several strategic actions
were completed in the fourth quarter of 2022. These actions
included the exit of the Industrial Blending business and sale of
associated assets, the sale of the Excalibar U.S. mineral grinding
business, and the exit of the Gulf of Mexico Fluids operations.
During the first quarter of 2023, $21
million of cash was generated primarily from the winddown of
the retained working capital from these transactions.
Following these divestiture transactions, Fluids Systems is
meaningfully simplified, with operations primarily in North America land and EMEA regions. As of
March 31, 2023, the segment has
nearly $220 million of net working
capital, primarily inventory and receivables, which represents
roughly 85% of the segment's net capital employed.
We continue to evaluate our portfolio, as we streamline
operations, monetize working capital in areas that no longer
demonstrate a clear pathway to generate sufficient returns, and
prioritize investment for high-return growth opportunities.
Segment Results
The Industrial Solutions segment generated revenues of
$55.9 million for the first quarter
of 2023 compared to $57.5 million for
the fourth quarter of 2022 and $35.4
million for the first quarter of 2022. Segment operating
income was $14.5 million for the
first quarter of 2023 compared to $17.8
million for the fourth quarter of 2022 and $6.4 million for the first quarter of 2022.
The Fluids Systems segment generated revenues of $144.2 million for the first quarter of 2023
compared to $167.7 million for the
fourth quarter of 2022 and $141.0
million for the first quarter of 2022. Segment operating
income was $3.5 million for the first
quarter of 2023 compared to operating income of $4.8 million for the fourth quarter of 2022 and
$3.4 million for the first quarter of
2022. The Fluids Systems operating income for the first quarter of
2023 includes $3.2 million in charges
primarily related to facility exit and severance costs. The Fluids
Systems operating income for the fourth quarter of 2022 included a
$1.0 million pre-tax gain related to
the Excalibar sale, as well as $1.2
million in charges primarily related to facility exit and
severance costs.
Conference Call
Newpark has scheduled a conference call to discuss first quarter
of 2023 results and its near-term operational outlook, which will
be broadcast live over the Internet, on Wednesday, May 3, 2023 at 9:30 a.m. Eastern Time / 8:30 a.m. Central Time. To participate in the
call, dial 412-902-0030 and ask for the Newpark Resources 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 May 17, 2023 and may be accessed by dialing
201-612-7415 and using pass code 13737710#. Also, an archive of the
webcast will be available shortly after the call at www.newpark.com
for 90 days. Please submit any questions for management prior to
the call via email to NR@dennardlascar.com.
Newpark Resources, Inc. is a geographically diversified supplier
providing environmentally-sensitive products, as well as rentals
and services to a variety of industries, including oil and gas
exploration, electrical transmission & distribution, pipeline,
renewable energy, petrochemical, construction, and other
industries. 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
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 the worldwide oil and natural gas industry; our
ability to generate internal growth; economic and market conditions
that may impact our customers' future spending; our customer
concentration and reliance on the U.S. exploration and production
market; our international operations; the ongoing conflict between
Russia and Ukraine; operating hazards present in the oil
and natural gas and utilities industries and substantial liability
claims, including catastrophic well incidents; our contracts that
can be terminated or downsized by our customers without penalty;
our product offering and market expansion; our ability to attract,
retain, and develop qualified leaders, key employees, and skilled
personnel; our expanding services in the utilities sector, which
may require unionized labor; the price and availability of raw
materials; inflation; capital investments, business acquisitions,
and joint ventures; our market competition; technological
developments and intellectual property; severe weather, natural
disasters, and seasonality; public health crises, epidemics, and
pandemics; our cost and continued availability of borrowed funds,
including noncompliance with debt covenants; environmental laws and
regulations; our legal compliance; the inherent limitations of
insurance coverage; income taxes; cybersecurity breaches or
business system disruptions; our strategic actions; our
divestitures; activist stockholders that may attempt to effect
changes at our Company or acquire control over our Company; share
repurchases; and our amended and restated bylaws, which could limit
our stockholders' ability to obtain what such stockholders believe
to be a favorable judicial forum for disputes with us or our
directors, officers or other employees. We assume no obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
securities laws. 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.
Newpark Resources,
Inc.
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
Three Months
Ended
|
(In thousands, except
per share data)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Revenues
|
$
200,030
|
|
$
225,159
|
|
$
176,438
|
Cost of
revenues
|
164,738
|
|
186,980
|
|
150,988
|
Selling, general and
administrative expenses
|
25,410
|
|
24,648
|
|
24,433
|
Other operating
(income) loss, net
|
(261)
|
|
(3,995)
|
|
50
|
Operating
income
|
10,143
|
|
17,526
|
|
967
|
|
|
|
|
|
|
Foreign currency
exchange loss
|
319
|
|
2,332
|
|
64
|
Interest expense,
net
|
2,089
|
|
2,321
|
|
1,206
|
Income (loss) before
income taxes
|
7,735
|
|
12,873
|
|
(303)
|
|
|
|
|
|
|
Provision (benefit) for
income taxes
|
2,115
|
|
3,881
|
|
(2,824)
|
Net income
|
$
5,620
|
|
$
8,992
|
|
$
2,521
|
|
|
|
|
|
|
Calculation of
EPS:
|
|
|
|
|
|
Net income - basic and
diluted
|
$
5,620
|
|
$
8,992
|
|
$
2,521
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
88,573
|
|
92,324
|
|
92,118
|
Dilutive effect of
stock options and restricted stock awards
|
1,997
|
|
1,156
|
|
1,821
|
Weighted average common
shares outstanding - diluted
|
90,570
|
|
93,480
|
|
93,939
|
|
|
|
|
|
|
Net income per common
share - basic:
|
$
0.06
|
|
$
0.10
|
|
$
0.03
|
Net income per common
share - diluted:
|
$
0.06
|
|
$
0.10
|
|
$
0.03
|
Newpark Resources,
Inc.
|
Operating Segment
Results
|
(Unaudited)
|
|
|
Three Months
Ended
|
(In
thousands)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Revenues
|
|
|
|
|
|
Fluids
Systems
|
$
144,174
|
|
$
167,705
|
|
$
141,014
|
Industrial
Solutions
|
55,856
|
|
57,454
|
|
35,424
|
Industrial
Blending
|
—
|
|
—
|
|
—
|
Total
revenues
|
$
200,030
|
|
$
225,159
|
|
$
176,438
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Fluids
Systems
|
$
3,466
|
|
$
4,828
|
|
$
3,374
|
Industrial
Solutions
|
14,483
|
|
17,751
|
|
6,358
|
Industrial
Blending
|
—
|
|
2,322
|
|
(886)
|
Corporate
office
|
(7,806)
|
|
(7,375)
|
|
(7,879)
|
Total operating
income (loss)
|
$ 10,143
|
|
$ 17,526
|
|
$
967
|
|
|
|
|
|
|
Segment operating
margin
|
|
|
|
|
|
Fluids
Systems
|
2.4 %
|
|
2.9 %
|
|
2.4 %
|
Industrial
Solutions
|
25.9 %
|
|
30.9 %
|
|
17.9 %
|
Industrial
Blending
|
NM
|
|
NM
|
|
NM
|
Summarized operating results (including charges in the Fluids
Systems non-GAAP reconciliation table) of our now exited Excalibar
business and Gulf of Mexico
operations, both included in the Fluids Systems segment historical
results, are shown in the following tables:
|
Three Months
Ended
|
(In
thousands)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Revenues
|
|
|
|
|
|
Excalibar
|
$
—
|
|
$
11,922
|
|
$
14,346
|
Gulf of
Mexico
|
—
|
|
8,011
|
|
2,694
|
Total
revenues
|
$
—
|
|
$
19,933
|
|
$
17,040
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Excalibar
|
$
(77)
|
|
$
1,127
|
|
$
833
|
Gulf of
Mexico
|
(2,311)
|
|
(4,023)
|
|
(2,617)
|
Total operating
income (loss)
|
$
(2,388)
|
|
$
(2,896)
|
|
$
(1,784)
|
Newpark Resources,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
(In thousands, except
share data)
|
March 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
23,618
|
|
$
23,182
|
Receivables,
net
|
212,694
|
|
242,247
|
Inventories
|
149,989
|
|
149,571
|
Prepaid expenses and
other current assets
|
9,962
|
|
10,966
|
Total current
assets
|
396,263
|
|
425,966
|
|
|
|
|
Property, plant and
equipment, net
|
194,626
|
|
193,099
|
Operating lease
assets
|
22,605
|
|
23,769
|
Goodwill
|
47,174
|
|
47,110
|
Other intangible
assets, net
|
19,471
|
|
20,215
|
Deferred tax
assets
|
2,402
|
|
2,275
|
Other
assets
|
2,330
|
|
2,441
|
Total
assets
|
$
684,871
|
|
$
714,875
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
debt
|
$
23,158
|
|
$
22,438
|
Accounts
payable
|
92,600
|
|
93,633
|
Accrued
liabilities
|
37,763
|
|
46,871
|
Total current
liabilities
|
153,521
|
|
162,942
|
|
|
|
|
Long-term debt, less
current portion
|
78,041
|
|
91,677
|
Noncurrent operating
lease liabilities
|
18,859
|
|
19,816
|
Deferred tax
liabilities
|
7,692
|
|
8,121
|
Other noncurrent
liabilities
|
9,529
|
|
9,291
|
Total
liabilities
|
267,642
|
|
291,847
|
|
|
|
|
Common stock, $0.01
par value (200,000,000 shares authorized and
111,456,999 and 111,451,999 shares issued, respectively)
|
1,115
|
|
1,115
|
Paid-in
capital
|
643,004
|
|
641,266
|
Accumulated other
comprehensive loss
|
(65,187)
|
|
(67,186)
|
Retained
earnings
|
8,109
|
|
2,489
|
Treasury stock, at
cost (25,129,909 and 21,751,232 shares, respectively)
|
(169,812)
|
|
(154,656)
|
Total stockholders'
equity
|
417,229
|
|
423,028
|
Total liabilities and
stockholders' equity
|
$
684,871
|
|
$
714,875
|
Newpark Resources,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
(In
thousands)
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
5,620
|
|
$
2,521
|
Adjustments to
reconcile net income to net cash provided by operations:
|
|
|
|
Depreciation and
amortization
|
7,895
|
|
10,452
|
Stock-based
compensation expense
|
1,738
|
|
1,468
|
Provision for deferred
income taxes
|
(726)
|
|
(5,202)
|
Credit loss
expense
|
272
|
|
185
|
Gain on sale of
assets
|
(554)
|
|
(1,606)
|
Amortization of
original issue discount and debt issuance costs
|
138
|
|
178
|
Change in assets and
liabilities:
|
|
|
|
Decrease in
receivables
|
27,287
|
|
5,795
|
Increase in
inventories
|
(3,870)
|
|
(14,812)
|
Decrease in other
assets
|
1,098
|
|
17
|
Increase (decrease) in
accounts payable
|
(1,233)
|
|
11,246
|
Decrease in accrued
liabilities and other
|
(8,221)
|
|
(7,452)
|
Net cash provided by
operating activities
|
29,444
|
|
2,790
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(6,972)
|
|
(7,621)
|
Proceeds from
divestitures
|
7,153
|
|
—
|
Proceeds from sale of
property, plant and equipment
|
740
|
|
575
|
Net cash provided by
(used in) investing activities
|
921
|
|
(7,046)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on lines of
credit
|
76,447
|
|
69,188
|
Payments on lines of
credit
|
(90,212)
|
|
(65,202)
|
Purchases of treasury
stock
|
(15,006)
|
|
(4)
|
Other financing
activities
|
(1,499)
|
|
(2,711)
|
Net cash provided by
(used in) financing activities
|
(30,270)
|
|
1,271
|
|
|
|
|
Effect of exchange rate
changes on cash
|
375
|
|
(376)
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash
|
470
|
|
(3,361)
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
25,061
|
|
29,489
|
Cash, cash equivalents,
and restricted cash at end of period
|
$
25,531
|
|
$
26,128
|
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 Net Income (Loss), Adjusted Net Income (Loss) Per Common
Share, earnings before interest, taxes, depreciation and
amortization ("EBITDA"), Adjusted EBITDA, Free Cash Flow, Adjusted
EBITDA Margin, Net Debt, and the Ratio of Net Debt to Capital.
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 Net Income (Loss) and Adjusted Net Income (Loss) Per
Common Share
The following tables reconcile the Company's net income (loss)
and net income (loss) per common share calculated in accordance
with GAAP to the non-GAAP financial measures of adjusted net income
(loss) and adjusted net income (loss) per common share:
Consolidated
|
Three Months
Ended
|
(In
thousands)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Net income (loss)
(GAAP)
|
$
5,620
|
|
$
8,992
|
|
$
2,521
|
Gain on
divestitures
|
—
|
|
(3,596)
|
|
—
|
Facility exit costs
and other
|
2,292
|
|
1,303
|
|
—
|
Severance
costs
|
955
|
|
216
|
|
367
|
Tax expense (benefit)
on adjustments
|
(682)
|
|
(318)
|
|
(77)
|
Tax benefit on
restructuring of certain subsidiary legal entities
|
—
|
|
—
|
|
(3,111)
|
Adjusted net income
(loss) (non-GAAP)
|
$
8,185
|
|
$
6,597
|
|
$
(300)
|
|
|
|
|
|
|
Adjusted net income
(loss) (non-GAAP)
|
$
8,185
|
|
$
6,597
|
|
$
(300)
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
88,573
|
|
92,324
|
|
92,118
|
Dilutive effect of
stock options and restricted stock awards
|
1,997
|
|
1,156
|
|
—
|
Weighted average common
shares outstanding - diluted
|
90,570
|
|
93,480
|
|
92,118
|
|
|
|
|
|
|
Adjusted net income
(loss) per common share - diluted (non-GAAP):
|
$
0.09
|
|
$
0.07
|
|
$
—
|
Newpark Resources, Inc.
Non-GAAP Reconciliations
(Continued)
(Unaudited)
EBITDA and Adjusted EBITDA
The following table reconciles the Company's net income
calculated in accordance with GAAP to the non-GAAP financial
measures of EBITDA and Adjusted EBITDA:
Consolidated
|
Three Months
Ended
|
(In
thousands)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Net income
(GAAP)
|
$
5,620
|
|
$
8,992
|
|
$
2,521
|
Interest expense,
net
|
2,089
|
|
2,321
|
|
1,206
|
Provision (benefit)
for income taxes
|
2,115
|
|
3,881
|
|
(2,824)
|
Depreciation and
amortization
|
7,895
|
|
8,351
|
|
10,452
|
EBITDA
(non-GAAP)
|
17,719
|
|
23,545
|
|
11,355
|
Gain on
divestitures
|
—
|
|
(3,596)
|
|
—
|
Facility exit costs
and other
|
2,292
|
|
1,303
|
|
—
|
Severance
costs
|
955
|
|
216
|
|
367
|
Adjusted EBITDA
(non-GAAP)
|
$
20,966
|
|
$
21,468
|
|
$
11,722
|
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 the Company's free cash flow:
Consolidated
|
Three Months
Ended
|
(In
thousands)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Net cash provided by
operating activities (GAAP)
|
$
29,444
|
|
$
3,072
|
|
$
2,790
|
Capital
expenditures
|
(6,972)
|
|
(10,553)
|
|
(7,621)
|
Proceeds from sale of
property, plant and equipment
|
740
|
|
720
|
|
575
|
Free Cash Flow
(non-GAAP)
|
$
23,212
|
|
$
(6,761)
|
|
$
(4,256)
|
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:
Fluids
Systems
|
Three Months
Ended
|
(In
thousands)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Revenues
|
$
144,174
|
|
$
167,705
|
|
$
141,014
|
Operating income
(GAAP)
|
$
3,466
|
|
$
4,828
|
|
$
3,374
|
Depreciation and
amortization
|
1,975
|
|
2,358
|
|
4,057
|
EBITDA
(non-GAAP)
|
5,441
|
|
7,186
|
|
7,431
|
Gain on
divestiture
|
—
|
|
(971)
|
|
—
|
Facility exit costs
and other
|
2,292
|
|
1,000
|
|
—
|
Severance
costs
|
955
|
|
163
|
|
152
|
Adjusted EBITDA
(non-GAAP)
|
$
8,688
|
|
$
7,378
|
|
$
7,583
|
Operating Margin
(GAAP)
|
2.4 %
|
|
2.9 %
|
|
2.4 %
|
Adjusted EBITDA
Margin (non-GAAP)
|
6.0 %
|
|
4.4 %
|
|
5.4 %
|
Industrial
Solutions
|
Three Months
Ended
|
(In
thousands)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Revenues
|
$ 55,856
|
|
$ 57,454
|
|
$ 35,424
|
Operating income
(GAAP)
|
$ 14,483
|
|
$ 17,751
|
|
$
6,358
|
Depreciation and
amortization
|
5,257
|
|
5,482
|
|
5,442
|
EBITDA
(non-GAAP)
|
19,740
|
|
23,233
|
|
11,800
|
Severance
costs
|
—
|
|
53
|
|
68
|
Adjusted EBITDA
(non-GAAP)
|
$ 19,740
|
|
$ 23,286
|
|
$ 11,868
|
Operating Margin
(GAAP)
|
25.9 %
|
|
30.9 %
|
|
17.9 %
|
Adjusted EBITDA
Margin (non-GAAP)
|
35.3 %
|
|
40.5 %
|
|
33.5 %
|
Industrial
Blending
|
Three Months
Ended
|
(In
thousands)
|
March 31,
2023
|
|
December
31, 2022
|
|
March 31,
2022
|
Revenues
|
$
—
|
|
$
—
|
|
$
—
|
Operating income
(loss) (GAAP)
|
$
—
|
|
$
2,322
|
|
$
(886)
|
Depreciation and
amortization
|
—
|
|
—
|
|
270
|
EBITDA
(non-GAAP)
|
—
|
|
2,322
|
|
(616)
|
Gain on
divestiture
|
—
|
|
(2,625)
|
|
—
|
Facility exit costs
and other
|
—
|
|
303
|
|
—
|
Severance
costs
|
—
|
|
—
|
|
148
|
Adjusted EBITDA
(non-GAAP)
|
$
—
|
|
$
—
|
|
$
(468)
|
Newpark Resources, Inc.
Non-GAAP Reconciliations
(Continued)
(Unaudited)
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin -
Trailing Twelve Months ("TTM")
Consolidated
|
Three Months
Ended
|
|
TTM
|
(In
thousands)
|
June 30,
2022
|
|
September
30,
2022
|
|
December
31, 2022
|
|
March 31,
2023
|
|
March 31,
2023
|
Net income
(GAAP)
|
$
(7,752)
|
|
$
(24,595)
|
|
$
8,992
|
|
$
5,620
|
|
$
(17,735)
|
Interest expense,
net
|
1,638
|
|
1,875
|
|
2,321
|
|
2,089
|
|
7,923
|
Provision (benefit)
for income taxes
|
480
|
|
2,834
|
|
3,881
|
|
2,115
|
|
9,310
|
Depreciation and
amortization
|
10,111
|
|
9,696
|
|
8,351
|
|
7,895
|
|
36,053
|
EBITDA
(non-GAAP)
|
4,477
|
|
(10,190)
|
|
23,545
|
|
17,719
|
|
35,551
|
Impairments and other
charges
|
7,905
|
|
29,417
|
|
—
|
|
—
|
|
37,322
|
Gain on
divestiture
|
—
|
|
—
|
|
(3,596)
|
|
—
|
|
(3,596)
|
Facility exit costs
and other
|
761
|
|
388
|
|
1,303
|
|
2,292
|
|
4,744
|
Severance
costs
|
153
|
|
—
|
|
216
|
|
955
|
|
1,324
|
Adjusted EBITDA
(non-GAAP)
|
$
13,296
|
|
$
19,615
|
|
$
21,468
|
|
$
20,966
|
|
$
75,345
|
Fluids
Systems
|
Three Months
Ended
|
|
TTM
|
(In
thousands)
|
June 30,
2022
|
|
September
30,
2022
|
|
December
31, 2022
|
|
March 31,
2023
|
|
March 31,
2023
|
Revenues
|
$
145,261
|
|
$
168,621
|
|
$
167,705
|
|
$
144,174
|
|
$
625,761
|
Operating income
(GAAP)
|
$
425
|
|
$
(24,193)
|
|
$
4,828
|
|
$
3,466
|
|
$
(15,474)
|
Depreciation and
amortization
|
3,862
|
|
3,598
|
|
2,358
|
|
1,975
|
|
11,793
|
EBITDA
(non-GAAP)
|
4,287
|
|
(20,595)
|
|
7,186
|
|
5,441
|
|
(3,681)
|
Impairments and other
charges
|
—
|
|
29,417
|
|
—
|
|
—
|
|
29,417
|
Gain on
divestiture
|
—
|
|
—
|
|
(971)
|
|
—
|
|
(971)
|
Facility exit costs
and other
|
—
|
|
—
|
|
1,000
|
|
2,292
|
|
3,292
|
Severance
costs
|
84
|
|
—
|
|
163
|
|
955
|
|
1,202
|
Adjusted EBITDA
(non-GAAP)
|
$
4,371
|
|
$
8,822
|
|
$
7,378
|
|
$
8,688
|
|
$ 29,259
|
Operating Margin
(GAAP)
|
0.3 %
|
|
(14.3) %
|
|
2.9 %
|
|
2.4 %
|
|
(2.5) %
|
Adjusted EBITDA
Margin (non-GAAP)
|
3.0 %
|
|
5.2 %
|
|
4.4 %
|
|
6.0 %
|
|
4.7 %
|
Industrial
Solutions
|
Three Months
Ended
|
|
TTM
|
(In
thousands)
|
June 30,
2022
|
|
September
30,
2022
|
|
December
31, 2022
|
|
March 31,
2023
|
|
March 31,
2023
|
Revenues
|
$ 48,883
|
|
$ 51,232
|
|
$ 57,454
|
|
$ 55,856
|
|
$
213,425
|
Operating income
(GAAP)
|
$
9,754
|
|
$ 10,036
|
|
$ 17,751
|
|
$ 14,483
|
|
$ 52,024
|
Depreciation and
amortization
|
5,362
|
|
5,367
|
|
5,482
|
|
5,257
|
|
21,468
|
EBITDA
(non-GAAP)
|
15,116
|
|
15,403
|
|
23,233
|
|
19,740
|
|
73,492
|
Severance
costs
|
93
|
|
—
|
|
53
|
|
—
|
|
146
|
Adjusted EBITDA
(non-GAAP)
|
$ 15,209
|
|
$ 15,403
|
|
$ 23,286
|
|
$ 19,740
|
|
$ 73,638
|
Operating Margin
(GAAP)
|
20.0 %
|
|
19.6 %
|
|
30.9 %
|
|
25.9 %
|
|
24.4 %
|
Adjusted EBITDA
Margin (non-GAAP)
|
31.1 %
|
|
30.1 %
|
|
40.5 %
|
|
35.3 %
|
|
34.5 %
|
Newpark Resources, Inc.
Non-GAAP Reconciliations
(Continued)
(Unaudited)
Ratio of Net Debt to
Capital
The following table reconciles the Company's ratio of total debt
to capital calculated in accordance with GAAP to the non-GAAP
financial measure of the Company's ratio of net debt to
capital:
(In
thousands)
|
March 31,
2023
|
|
December 31,
2022
|
Current
debt
|
$
23,158
|
|
$
22,438
|
Long-term debt, less
current portion
|
78,041
|
|
91,677
|
Total
Debt
|
101,199
|
|
114,115
|
Total stockholders'
equity
|
417,229
|
|
423,028
|
Total
Capital
|
$
518,428
|
|
$
537,143
|
|
|
|
|
Ratio of Total Debt
to Capital
|
19.5 %
|
|
21.2 %
|
|
|
|
|
Total
Debt
|
$
101,199
|
|
$
114,115
|
Less: cash and cash
equivalents
|
(23,618)
|
|
(23,182)
|
Net
Debt
|
77,581
|
|
90,933
|
Total stockholders'
equity
|
417,229
|
|
423,028
|
Total Capital, Net
of Cash
|
$
494,810
|
|
$
513,961
|
|
|
|
|
Ratio of Net Debt to
Capital
|
15.7 %
|
|
17.7 %
|
Contacts:
|
Gregg
Piontek
|
|
Senior Vice President
and Chief Financial Officer
|
|
Newpark Resources,
Inc.
|
|
gpiontek@newpark.com
|
|
281-362-6800
|
View original
content:https://www.prnewswire.com/news-releases/newpark-resources-reports-first-quarter-2023-results-301813620.html
SOURCE Newpark Resources, Inc.