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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
washington, d.c. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 26, 2023
RPC, INC.
(Exact name of registrant as specified in
its charter)
Delaware |
1-8726 |
58-1550825 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer
Identification No.) |
2801 Buford Highway NE, Suite 300, Atlanta, Georgia 30329
(Address of principal executive office) (zip code)
Registrant's telephone number, including area code: (404) 321-2140
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, $0.10 par value |
|
RES |
|
New York Stock Exchange |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and
Financial Condition.
On July 26, 2023, RPC, Inc. issued a press release titled
"RPC, Inc. Reports Second Quarter 2023 Financial Results," announcing the financial results for the second quarter ended June
30, 2023.
Item 9.01 Financial Statements and Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, RPC, Inc. has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
| RPC, Inc. |
| |
Date: July 26, 2023 | /s/ Michael L. Schmit |
| Michael L. Schmit |
| Vice President and Chief Financial Officer |
Exhibit 99.1
RPC,
Inc. Reports Second Quarter 2023 Financial Results
ATLANTA,
July 26, 2023 - RPC, Inc. (NYSE: RES) today announced its unaudited results for the second quarter and six months ended June 30, 2023.
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 and in selected international
markets.
For
the quarter ended June 30, 2023, RPC generated revenues of $415.9 million, a decrease compared to $476.7 million in the first quarter.
Revenues declined due to job delays and cancellations by several pressure pumping customers as well as weaker activity levels in most
of the natural gas-directed basins in which RPC operates. Operating profit for the second quarter of 2023 was $82.4 million compared
to $90.7 million in the first quarter. Net income for the second quarter of 2023 was $65.0 million, or $0.30 diluted earnings per share,
compared to net income of $71.5 million, or $0.33 diluted earnings per share, in the first quarter.
Adjusted
operating profit1 for the second quarter of 2023 was $83.3 million compared to $108.0 million in the first quarter of 2023.
Adjusted net income2 for the second quarter of 2023 was $65.7 million, or $0.30 adjusted diluted earnings per share2,
compared to adjusted net income of $84.9 million, or $0.39 adjusted diluted earnings per share, in the first quarter. Adjusted earnings
before interest, taxes, depreciation, and amortization (EBITDA)3 for the second quarter of 2023 was $110.1 million, a decrease
compared to $132.9 million in the first quarter. In connection with the final termination of our pension plan, RPC recorded a non-cash
pension settlement charge of $911 thousand in the second quarter of 2023 compared to a $17.4 million charge in the prior quarter.
Cost
of revenues during the second quarter of 2023 was $265.8 million compared to $305.3 million in the first quarter. Cost of revenues as
a percentage of revenues was 63.9 percent in the second quarter of 2023, essentially the same as 64.0 percent of revenues in the first
quarter. Selling, general and administrative expenses were $43.6 million in the second quarter of 2023 compared to $42.2 million in the
first quarter of 2023. Depreciation and amortization was $26.2 million in the second quarter of 2023 compared to $24.1 million in the
first quarter of 2023.
1Adjusted operating profit is a financial measure which
does not conform to GAAP. Additional disclosure regarding this non-GAAP financial measure and its reconciliation to operating profit,
the nearest GAAP financial measure, is disclosed in Appendix A to this press release.
2Adjusted net income and adjusted diluted earnings per share
are financial measures which do not conform to GAAP. Additional disclosure regarding these non-GAAP financial measures and their reconciliation
to net income and income per share, the nearest GAAP financial measures, are disclosed in Appendix B to this press release.
3Adjusted EBITDA and EBITDA are financial measures which
do not conform to GAAP. Additional disclosure regarding these non-GAAP financial measures and their reconciliation to net income, the
nearest GAAP financial measure, are disclosed in Appendix C to this press release.
Page 2
Second Quarter 2023 Earnings Release
RPC’s
revenues for the quarter ended June 30, 2023 increased by $40.4 million, or 10.7 percent, compared to the second quarter of the prior
year due to improved pricing, higher customer activity levels and a larger active fleet of revenue-producing equipment. Cost of revenues
during the second quarter of 2023 increased by $4.9 million compared to the second quarter of 2022. As a percentage of revenues, cost
of revenues decreased to 63.9 percent in the second quarter of 2023 from 69.5 percent in the second quarter of 2022 because of improved
pricing for our services and increases in customer supplied materials, as well as reduced maintenance expense due to an improvement in
the average age of our equipment.
Selling,
general and administrative expenses increased by $7.7 million in the second quarter of 2023 compared to the second quarter of the
prior year primarily due to costs related to the settlement of a vendor dispute and the July 1, 2023 acquisition of Spinnaker
Oilwell Services, LLC (“Spinnaker”). RPC’s operating profit in the second quarter of 2023 was
$82.4 million, compared to $60.4 million in the second quarter of 2022. Net income for the second quarter of 2023 was $65.0 million
compared to $46.9 million in the second quarter of 2022. Adjusted EBITDA3 for the second quarter of 2023 was $110.1
million compared to $80.6 million in the second quarter of 2022.
For
the six months ended June 30, 2023, revenues increased 35.2 percent to $892.5 million compared to $660.1 million for the same period
last year. Net income for the six-month period was $136.5 million, or $0.63 diluted earnings per share, compared to net income of $62.0
million, or $0.29 diluted earnings per share, in the same period last year.
Rig
Count and Commodity Price Statistics
The
average U.S. domestic rig count during the second quarter of 2023 was 719, a 5.4 percent decrease compared to the first quarter of 2023,
and unchanged compared to the same period in 2022. The average price of oil during the second quarter of 2023 was $73.54 per barrel,
a 3.2 percent decrease compared to the first quarter of 2023, and a 32.5 percent decrease compared to the same period in 2022. The average
price of natural gas during the second quarter of 2023 was $2.16 per Mcf, a decrease of 18.8 percent compared to the first quarter of
2023, and a 71.2 percent decrease compared to the same period in the prior year.
Management
Commentary
“RPC’s
second quarter 2023 financial results reflect a slight decline in drilling and completion activity, particularly in natural gas-directed
basins. This weakness impacted our pressure pumping revenues and profits, as several large customers either reduced their well completion
activity or delayed completion work,” stated Ben M. Palmer, RPC’s President and Chief Executive Officer. “While we
believe that this slowdown is temporary, we are taking prudent cost-cutting measures to better align our cost structure to activity levels.
“As
we announced several weeks ago, RPC acquired Spinnaker Oilwell Services, a leading provider of oilfield cementing services in the
Permian and mid-Continent basins. This acquisition will significantly expand our cementing business beyond its current location in
South Texas to two other basins in which we provide our other services. As we begin the integration of Spinnaker into our
operations, we continue to be impressed with the quality of Spinnaker’s management, employees and operations,” concluded
Palmer.
Page 3
Second Quarter 2023 Earnings Release
Summary
of Segment Operating Performance
RPC
manages two operating segments – Technical Services and Support Services.
Technical
Services includes RPC’s oilfield service lines that utilize people and equipment to perform value-added completion, production
and maintenance services directly to a customer’s well. These services are generally directed toward improving the flow of oil
and natural gas from producing formations or to address well control issues. The Technical Services segment includes pressure pumping,
downhole tools and services, coiled tubing, nitrogen, hydraulic workover services, surface pressure control equipment, well control,
cementing and fishing tool operations.
Support
Services includes RPC’s oilfield service lines that provide equipment for customer use or services to assist customer operations.
The equipment and services offered include rental of tubulars and related tools, pipe inspection and storage services, and oilfield training
services.
Technical
Services second quarter 2023 revenues decreased by 13.7 percent compared to the prior quarter but increased by 9.5 percent compared to
the same period of the prior year. Technical Services generated an operating profit of $77.0 million in the second quarter of 2023 compared
to $103.5 million in the prior quarter and an operating profit of $59.8 million in the second quarter of the prior year. The year-over-year
improvements in Technical Services operating results were driven by higher customer activity levels, improved pricing, and a larger active
fleet of revenue-producing equipment.
Support
Services revenues increased by 4.7 percent during the second quarter of 2023 compared to the prior quarter and by 33.2 percent compared
to the same period of the prior year. The revenue increase was due to higher activity levels and improved pricing within rental tools.
Support Services generated an operating profit of $7.9 million in the second quarter of 2023 and $6.6 million in the first quarter. Second
quarter 2023 Support Services operating profit increased by $4.6 million compared to the second quarter of the prior year due to higher
activity levels, improved pricing, and leverage of higher revenues over costs that are fixed during the short term.
(in thousands) | |
Three Months Ended | | |
Six Months Ended June 30, | |
| |
June 30, | | |
March 31, | | |
June 30, | | |
| | |
| |
| |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Revenues: | |
| | | |
| | | |
| | | |
| | | |
| | |
Technical Services | |
$ | 390,018 | | |
$ | 451,991 | | |
$ | 356,103 | | |
$ | 842,009 | | |
$ | 622,452 | |
Support Services | |
| 25,840 | | |
| 24,677 | | |
| 19,404 | | |
| 50,517 | | |
| 37,679 | |
Total revenues | |
$ | 415,858 | | |
$ | 476,668 | | |
$ | 375,507 | | |
$ | 892,526 | | |
$ | 660,131 | |
Operating profit: | |
| | | |
| | | |
| | | |
| | | |
| | |
Technical Services | |
$ | 77,017 | | |
$ | 103,533 | | |
$ | 59,827 | | |
$ | 180,550 | | |
$ | 81,638 | |
Support Services | |
| 7,920 | | |
| 6,644 | | |
| 3,334 | | |
| 14,564 | | |
| 6,114 | |
Corporate expenses | |
| (4,672 | ) | |
| (5,081 | ) | |
| (4,544 | ) | |
| (9,753 | ) | |
| (9,054 | ) |
Pension settlement charges | |
| (911 | ) | |
| (17,375 | ) | |
| - | | |
| (18,286 | ) | |
| - | |
Gain on disposition of assets, net | |
| 3,015 | | |
| 2,936 | | |
| 1,798 | | |
| 5,951 | | |
| 4,752 | |
Total operating profit | |
$ | 82,369 | | |
$ | 90,657 | | |
$ | 60,415 | | |
$ | 173,026 | | |
$ | 83,450 | |
Interest expense | |
| (73 | ) | |
| (72 | ) | |
| (222 | ) | |
| (145 | ) | |
| (400 | ) |
Interest income | |
| 2,698 | | |
| 1,855 | | |
| 128 | | |
| 4,553 | | |
| 143 | |
Other income, net | |
| 631 | | |
| 761 | | |
| 79 | | |
| 1,392 | | |
| 583 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
$ | 85,625 | | |
$ | 93,201 | | |
$ | 60,400 | | |
$ | 178,826 | | |
$ | 83,776 | |
Page 4
Second Quarter 2023 Earnings Release
RPC,
Inc. will hold a conference call today, July 26, 2023 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 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.
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
rpc.net.
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, including all statements that look forward in time or express management’s beliefs,
expectations or hopes. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of RPC to be materially different from any future results, performance or achievements expressed or implied
in such forward-looking statements, including statements regarding (i) our belief that the slowdown in drilling and completion activity
is temporary, and (ii) our continued belief in the quality of Spinnaker’s management and operations. Additional discussion of factors
that could cause the actual results to differ materially from management’s projections, forecasts, estimates, and expectations
is contained in RPC's Form 10-K for the year ended December 31, 2022.
For
information about RPC, Inc., please contact:
Michael
L. Schmit, Chief Financial Officer
(404)
321-2140
irdept@rpc.net
Jim
Landers, Vice President Corporate Services
(404)
321-2162
JLanders@rpc.net
Page 5
Second Quarter 2023 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES | |
| | |
| | |
| | |
| | |
| |
| |
| | |
| | |
| | |
| | |
| |
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) | |
| | |
| | |
| |
| |
| | |
| | |
| |
| |
Three Months Ended | | |
Six Months Ended | |
Periods ended, (Unaudited) | |
June 30,
2023 | | |
March 31,
2023 | | |
June 30,
2022 | | |
June 30,
2023 | | |
June 30,
2022 | |
REVENUES | |
$ | 415,858 | | |
$ | 476,668 | | |
$ | 375,507 | | |
$ | 892,526 | | |
$ | 660,131 | |
COSTS AND EXPENSES: | |
| | | |
| | | |
| | | |
| | | |
| | |
Cost of revenues | |
| 265,786 | | |
| 305,250 | | |
| 260,917 | | |
| 571,036 | | |
| 469,754 | |
Selling, general and administrative expenses | |
| 43,604 | | |
| 42,197 | | |
| 35,879 | | |
| 85,801 | | |
| 72,119 | |
Pension settlement charges | |
| 911 | | |
| 17,375 | | |
| - | | |
| 18,286 | | |
| - | |
Depreciation and amortization | |
| 26,203 | | |
| 24,125 | | |
| 20,094 | | |
| 50,328 | | |
| 39,560 | |
Gain on disposition of assets, net | |
| (3,015 | ) | |
| (2,936 | ) | |
| (1,798 | ) | |
| (5,951 | ) | |
| (4,752 | ) |
Operating profit | |
| 82,369 | | |
| 90,657 | | |
| 60,415 | | |
| 173,026 | | |
| 83,450 | |
Interest expense | |
| (73 | ) | |
| (72 | ) | |
| (222 | ) | |
| (145 | ) | |
| (400 | ) |
Interest income | |
| 2,698 | | |
| 1,855 | | |
| 128 | | |
| 4,553 | | |
| 143 | |
Other income, net | |
| 631 | | |
| 761 | | |
| 79 | | |
| 1,392 | | |
| 583 | |
Income before income taxes | |
| 85,625 | | |
| 93,201 | | |
| 60,400 | | |
| 178,826 | | |
| 83,776 | |
Income tax provision | |
| 20,612 | | |
| 21,677 | | |
| 13,461 | | |
| 42,289 | | |
| 21,758 | |
NET INCOME | |
$ | 65,013 | | |
$ | 71,524 | | |
$ | 46,939 | | |
$ | 136,537 | | |
$ | 62,018 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
EARNINGS PER SHARE | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.30 | | |
$ | 0.33 | | |
$ | 0.22 | | |
$ | 0.63 | | |
$ | 0.29 | |
Diluted | |
$ | 0.30 | | |
$ | 0.33 | | |
$ | 0.22 | | |
$ | 0.63 | | |
$ | 0.29 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
WEIGHTED AVERAGE SHARES OUTSTANDING | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 216,398 | | |
| 217,152 | | |
| 216,565 | | |
| 216,762 | | |
| 216,403 | |
Diluted | |
| 216,398 | | |
| 217,152 | | |
| 216,565 | | |
| 216,762 | | |
| 216,403 | |
Page 6
Second Quarter 2023 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES | |
| | |
| |
| |
| | |
| |
CONSOLIDATED BALANCE SHEETS | |
| | |
| |
| |
| |
| |
(In thousands) | |
| |
June 30,
2023 | | |
December 31,
2022 | |
| |
(Unaudited) | | |
| |
ASSETS | |
| | | |
| | |
Cash and cash equivalents | |
$ | 100,535 | | |
$ | 126,424 | |
Accounts receivable, net | |
| 393,609 | | |
| 416,568 | |
Inventories | |
| 104,194 | | |
| 97,107 | |
Income taxes receivable | |
| 53,148 | | |
| 42,403 | |
Prepaid expenses | |
| 14,427 | | |
| 17,753 | |
Purchase of business - advance | |
| 78,982 | | |
| - | |
Other current assets | |
| 3,440 | | |
| 3,086 | |
Total current assets | |
| 748,335 | | |
| 703,341 | |
Property, plant and equipment, net | |
| 387,988 | | |
| 333,093 | |
Operating lease right-of-use assets | |
| 27,331 | | |
| 28,864 | |
Goodwill | |
| 32,150 | | |
| 32,150 | |
Other assets | |
| 32,384 | | |
| 31,565 | |
Total assets | |
$ | 1,228,188 | | |
$ | 1,129,013 | |
| |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | | |
| | |
Accounts payable | |
$ | 88,006 | | |
$ | 115,213 | |
Accrued payroll and related expenses | |
| 26,099 | | |
| 33,161 | |
Accrued insurance expenses | |
| 5,165 | | |
| 3,232 | |
Accrued state, local and other taxes | |
| 6,417 | | |
| 4,296 | |
Income taxes payable | |
| 404 | | |
| 499 | |
Pension liabilities | |
| - | | |
| 9,610 | |
Current portion of operating lease liabilities | |
| 9,201 | | |
| 10,728 | |
Other accrued expenses | |
| 1,807 | | |
| 1,864 | |
Total current liabilities | |
| 137,099 | | |
| 178,603 | |
Long-term accrued insurance expenses | |
| 9,640 | | |
| 7,149 | |
Long-term retirement plan liabilities | |
| 23,526 | | |
| 23,106 | |
Long-term operating lease liabilities | |
| 19,555 | | |
| 19,517 | |
Other long-term liabilities | |
| 3,938 | | |
| 5,430 | |
Deferred income taxes | |
| 47,028 | | |
| 37,473 | |
Total liabilities | |
| 240,786 | | |
| 271,278 | |
Common stock | |
| 21,641 | | |
| 21,661 | |
Capital in excess of par value | |
| - | | |
| - | |
Retained earnings | |
| 968,023 | | |
| 856,013 | |
Accumulated other comprehensive loss | |
| (2,262 | ) | |
| (19,939 | ) |
Total stockholders' equity | |
| 987,402 | | |
| 857,735 | |
Total liabilities and stockholders' equity | |
$ | 1,228,188 | | |
$ | 1,129,013 | |
Page 7
Second Quarter 2023 Earnings Release
Appendix
A
RPC,
Inc. has used the non-GAAP financial measure of adjusted operating profit in today's earnings release and anticipates using this non-GAAP
financial measure in today's earnings conference call. This measure should not be considered in isolation or as a substitute for operating
profit, or other performance measures prepared in accordance with GAAP.
Management
believes that presenting the financial measure of adjusted operating profit enables us to compare our operating performance consistently
over various time periods.
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 below is a reconciliation of this non-GAAP measure with its most directly comparable GAAP
measure. This reconciliation also appears on RPC, Inc.'s investor website, which can be found on the Internet at rpc.net.
The
Reconciliation of Operating Profit to Adjusted Operating Profit is shown below:
Periods ended, (Unaudited) | |
Three Months Ended | | |
Six Months Ended | |
(In thousands) | |
June 30,
2023 | | |
March 31,
2023 | | |
June 30,
2022 | | |
June 30,
2023 | | |
June 30,
2022 | |
Reconciliation of Operating Profit to Adjusted Operating Profit | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Operating Profit | |
$ | 82,369 | | |
$ | 90,657 | | |
$ | 60,415 | | |
$ | 173,026 | | |
$ | 83,450 | |
Add: | |
| | | |
| | | |
| | | |
| | | |
| | |
Pension settlement charges | |
| 911 | | |
| 17,375 | | |
| - | | |
| 18,286 | | |
| - | |
Adjusted Operating Profit | |
$ | 83,280 | | |
$ | 108,032 | | |
$ | 60,415 | | |
$ | 191,312 | | |
$ | 83,450 | |
Page 8
Second Quarter 2023 Earnings Release
Appendix
B
RPC,
Inc. has used the non-GAAP financial measures of adjusted net income and adjusted diluted earnings per share in today's earnings release
and anticipates using these non-GAAP financial measures in today's earnings conference call. These measures should not be considered
in isolation or as a substitute for net income, income per share, or other performance measures prepared in accordance with GAAP.
Management
believes that presenting the financial measures of adjusted net income and adjusted income per share, enable us to compare our operating
performance consistently over various time periods.
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 below is a reconciliation of these non-GAAP measures with their most directly comparable
GAAP measures. This reconciliation also appears on RPC, Inc.'s investor website, which can be found on the Internet at rpc.net.
The
Reconciliation of Net Income to Adjusted Net Income and the Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings
Per Share is shown below:
Periods ended, (Unaudited) | |
Three Months Ended | | |
Six Months Ended | |
(In thousands) | |
June 30,
2023 | | |
March 31,
2023 | | |
June 30,
2022 | | |
June 30,
2023 | | |
June 30,
2022 | |
Reconciliation of Net Income to Adjusted Net Income | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Income | |
$ | 65,013 | | |
$ | 71,524 | | |
$ | 46,939 | | |
$ | 136,537 | | |
$ | 62,018 | |
Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | |
Pension settlement charges, before taxes | |
| 911 | | |
| 17,375 | | |
| - | | |
| 18,286 | | |
| - | |
Tax effect of pension settlement charges * | |
| (220 | ) | |
| (4,048 | ) | |
| - | | |
| (4,315 | ) | |
| - | |
Total adjustments, net of tax | |
| 691 | | |
| 13,327 | | |
| - | | |
| 13,971 | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted Net Income | |
$ | 65,704 | | |
$ | 84,851 | | |
$ | 46,939 | | |
$ | 150,508 | | |
$ | 62,018 | |
* The sum of adjustments for the
three-month periods presented may differ from the amounts for the six month period due to the differences in effective
tax rate for each period.
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Diluted Earnings Per Share | |
$ | 0.30 | | |
$ | 0.33 | | |
$ | 0.22 | | |
$ | 0.63 | | |
$ | 0.29 | |
Add: | |
| | | |
| | | |
| | | |
| | | |
| | |
Pension settlement charges, net of tax | |
$ | 0.00 | | |
$ | 0.06 | | |
$ | 0.00 | | |
$ | 0.06 | | |
$ | 0.00 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted Diluted Earnings Per Share | |
$ | 0.30 | | |
$ | 0.39 | | |
$ | 0.22 | | |
$ | 0.69 | | |
$ | 0.29 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted Average Shares Outstanding | |
| 216,398 | | |
| 217,152 | | |
| 216,565 | | |
| 216,762 | | |
| 216,403 | |
Page 9
Second Quarter 2023 Earnings Release
Appendix
C
RPC
has used the non-GAAP financial measures of earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted earnings
before interest, taxes, depreciation, and amortization (adjusted EBITDA) in today's earnings release and anticipates using EBITDA and
adjusted EBITDA in today's earnings conference call. EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute
for net income or other performance measures prepared in accordance with GAAP.
RPC
uses EBITDA and adjusted EBITDA as measures of operating performance because they allow us to compare performance consistently over various
periods without regard to changes in our capital structure. Adjusted EBITDA is useful to compare operating performance net of unusual
or non-recurring charges. We are also required to use EBITDA to report compliance with financial covenants under our revolving credit
facility.
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 below is a reconciliation of net income, the most directly comparable GAAP measure, to
EBITDA and adjusted EBITDA. This reconciliation also appears on RPC's investor website, which can be found on the Internet at rpc.net.
The
Reconciliation of Net Income to EBITDA and Adjusted EBITDA is shown below:
| |
Three Months Ended | | |
Six Months Ended | |
(In thousands) | |
June 30,
2023 | | |
March 31,
2023 | | |
June 30,
2022 | | |
June 30,
2023 | | |
June 30,
2022 | |
Reconciliation of Net Income to EBITDA and Adjusted EBITDA | |
| | | |
| | | |
| | | |
| | | |
| | |
Net Income | |
$ | 65,013 | | |
$ | 71,524 | | |
$ | 46,939 | | |
$ | 136,537 | | |
$ | 62,018 | |
Add: | |
| | | |
| | | |
| | | |
| | | |
| | |
Income tax provision | |
| 20,612 | | |
| 21,677 | | |
| 13,461 | | |
| 42,289 | | |
| 21,758 | |
Interest expense | |
| 73 | | |
| 72 | | |
| 222 | | |
| 145 | | |
| 400 | |
Depreciation and amortization | |
| 26,203 | | |
| 24,125 | | |
| 20,094 | | |
| 50,328 | | |
| 39,560 | |
Less: | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income | |
| 2,698 | | |
| 1,855 | | |
| 128 | | |
| 4,553 | | |
| 143 | |
EBITDA | |
$ | 109,203 | | |
$ | 115,543 | | |
$ | 80,588 | | |
$ | 224,746 | | |
$ | 123,593 | |
Add: | |
| | | |
| | | |
| | | |
| | | |
| | |
Pension settlement charges | |
| 911 | | |
| 17,375 | | |
| - | | |
| 18,286 | | |
| - | |
Adjusted EBITDA | |
$ | 110,114 | | |
$ | 132,918 | | |
$ | 80,588 | | |
$ | 243,032 | | |
$ | 123,593 | |
v3.23.2
Cover
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Jul. 26, 2023 |
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