Newpark Resources, Inc. (NYSE: NR) (“Newpark” or the “Company”)
today announced results for the three and six months ended June 30,
2024.
SECOND QUARTER 2024 RESULTS (all comparisons versus the
prior year period unless otherwise noted)
- Net income of $8.0 million, or $0.09 per diluted share
- Adjusted Net Income of $10.4 million, or $0.12 per diluted
share
- Adjusted EBITDA +18% to $23.4 million
- Adjusted EBITDA margin of 13.1%, +230 basis points
- Total Debt of $58 million, Net Debt of $23 million and Net
Leverage of 0.3x as of June 30, 2024
Second Quarter
(In millions)
2024
2023
Change
Revenues
$
179.0
$
183.3
$
(4.3
)
Operating income
$
13.3
$
5.9
$
7.4
Net cash provided by operating
activities
$
27.6
$
7.4
$
20.2
Free Cash Flow
$
21.9
$
0.6
$
21.3
Fluids Systems Segment
Revenues
$
112.2
$
135.2
$
(23.0
)
Operating income
$
2.3
$
2.0
$
0.3
Adjusted EBITDA
$
5.2
$
8.8
$
(3.6
)
Operating margin (%)
2.1
%
1.5
%
60
bps
Adjusted EBITDA margin (%)
4.6
%
6.5
%
-190
bps
Industrial Solutions Segment
Revenues
$
66.8
$
48.1
$
18.7
Operating income
$
19.4
$
12.8
$
6.6
Adjusted EBITDA
$
24.8
$
18.1
$
6.7
Operating margin (%)
29.0
%
26.6
%
240
bps
Adjusted EBITDA margin (%)
37.1
%
37.7
%
-60
bps
MANAGEMENT COMMENTARY
“We delivered a strong second quarter performance, as Industrial
Solutions segment revenue increased nearly 40% on an organic basis
versus the prior-year period,” stated Matthew Lanigan, President
and CEO of Newpark. “Industrial Solutions revenue growth was
supported by a combination of fleet expansion and a continued shift
in customer preference from legacy, wood-based mats toward our
DURA-BASE composite-based matting system. Product sales increased
to an all-time quarterly record in the second quarter, while rental
revenue increased 9% versus the prior-year period.
“We remain highly focused on driving performance excellence
across all aspects of our organization as we seek to maximize
operating leverage and capital efficiency,” continued Lanigan. “In
the second quarter, this strategic focus translated to significant
year-over-year growth in adjusted EBITDA, adjusted net income and
free cash flow conversion, while providing us with improved balance
sheet optionality to support our capital allocation priorities.
“To that end, our capital allocation strategy continues to
prioritize investments in our rental fleet, return of capital
through our share repurchase authorization, and opportunistic
inorganic growth within both existing and complementary worksite
access markets,” noted Lanigan. “We generated free cash flow of $22
million in the second quarter while net leverage declined to 0.3x
as of June 30, 2024.
Lanigan continued, “With regard to the Fluids Systems sale
process, our entire organization has worked tirelessly on all
aspects of diligence and separation planning, with an eye on a
mid-year completion. Our international business continues to
operate at a very strong level, contributing more than 70% of the
segment’s global revenues and on pace for a record year in both
EBITDA and returns, however, the natural complexities of the global
business are extending the process timeline beyond our targeted
dates. While impacting our timing expectations, we remain committed
to achieving a resolution to our strategic review process and
continue to work diligently to achieve this goal in the third
quarter.
“Today, we are reiterating our full-year 2024 financial guidance
for our Industrial Solutions segment,” concluded Lanigan. “While
the third quarter is typically a seasonally softer period of the
year for our business, with activity levels generally below second
quarter levels, we remain encouraged by the longer-term demand
outlook across our core end-markets, as we continue to expand our
market.”
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.
During the second quarter 2024, Newpark continued to deliver on
its business transformation plan, highlighted by the following (all
comparisons versus the prior year period unless otherwise
noted):
- Rental demand strengthens in the second quarter 2024.
Industrial Solutions revenue from specialty rental increased 9% for
the second quarter of 2024, somewhat mitigating a lower
contribution from associated services. Total rental and services
declined 9%.
- Robust product sales demand. Revenues from product sales
achieved a quarterly record $30 million, primarily driven by strong
demand from the power transmission sector and project timing.
- Fluids Systems segment continues momentum in international
operations. The segment delivered strong international revenue
growth in the second quarter of 2024, with international operations
contributing 71% of Fluids Systems revenue in the quarter.
Newpark’s Eastern Hemisphere revenue increased 2% to $66 million
and Canada increased 28% to $13 million.
- Delivered margin expansion. Consolidated gross margin
increased 370 basis points year-over-year to 21.7%, benefiting from
a higher contribution from Industrial Solutions and improving
Fluids Systems fundamentals. Adjusted EBITDA margin improved 230
basis points to 13.1% in the second quarter of 2024. For the
quarter, Industrial Solutions segment Adjusted EBITDA margin was
37.1% and Fluids Systems segment Adjusted EBITDA margin was
4.6%.
- 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. In 2023, Newpark repurchased more
than $30 million of its common equity, representing more than 7% of
total shares outstanding. No share repurchases were made in the
first half of 2024, due to trading blackout restrictions associated
with the ongoing Fluids Systems segment sale process.
FINANCIAL PERFORMANCE
In the second quarter 2024, Newpark generated net income of $8.0
million, or $0.09 per diluted share, on total revenue of $179.0
million, compared to net income of $1.7 million, or $0.02 per
diluted share, on total revenue of $183.3 million, in the prior
year period.
The Company reported second quarter Adjusted Net Income of $10.4
million, or $0.12 per diluted share, compared to Adjusted Net
Income of $6.8 million, or $0.08 per diluted share, in the prior
year period. Newpark reported Adjusted EBITDA of $23.4 million in
the second quarter of 2024, or 13.1% of total revenue, compared to
$19.8 million, or 10.8% of total revenue, in the second quarter of
2023.
The Industrial Solutions segment generated revenues of $66.8
million in the second quarter of 2024, compared to $48.1 million in
the prior year period. Segment operating income was $19.4 million
in the second quarter, compared to $12.8 million in the prior year
period.
The Fluids Systems segment generated revenues of $112.2 million
in the second quarter of 2024, compared to $135.2 million in the
prior year period. Segment operating income was $2.3 million in the
second quarter, compared to $2.0 million in the prior year period.
The second quarter 2024 Fluids Systems segment operating income
includes $1.1 million in facility exit costs, transaction expenses
related to the ongoing Fluids Systems segment sale process, and
severance costs. The second quarter 2023 Fluids Systems operating
income included $4.9 million in total charges including $2.1
million of net facility exit and severance costs as well as $2.8
million of non-cash impairment charges related to inventory and
long-lived assets associated with the exit of certain
operations.
Corporate office expenses were $8.4 million in the second
quarter of 2024, compared to $8.9 million in the prior year period.
The second quarter 2024 corporate office expenses include $1.6
million in transaction expenses related to the ongoing Fluids
Systems segment sale process. The second quarter 2023 corporate
office expenses included $0.9 million of severance expense
associated with restructuring actions as well as $0.8 million of
costs related to strategic planning projects.
BALANCE SHEET AND LIQUIDITY
As of June 30, 2024, Newpark had total cash of $35.1 million,
substantially all of which resides within our international Fluids
Systems subsidiaries, and available liquidity under its ABL credit
facility of $74.4 million. At the end of the second quarter, the
Company had total Net Debt outstanding of $23 million, or 0.3x its
trailing twelve-month Adjusted EBITDA as of June 30, 2024.
Newpark generated $27.6 million of operating cash flow in the
second quarter of 2024. Capital investments totaled $6 million,
net, in the second quarter of 2024, primarily related to the
expansion of Newpark’s composite matting rental fleet.
FINANCIAL GUIDANCE
The following forward-looking guidance reflects the Company’s
current expectations and beliefs as of August 5, 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 $230 million
to $240 million and segment Adjusted EBITDA in a range of $80
million to $85 million
- Total Industrial Solutions capital expenditures in a range of
$30 million to $35 million
SECOND QUARTER 2024 RESULTS CONFERENCE CALL
A conference call will be held Tuesday, August 6, 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 and accompanying presentation
materials will be available in the Investor Relations section of
the Company’s website at https://investor.newpark.com. 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. Individuals can also participate by
teleconference dial-in.
To participate in the live teleconference:
Domestic Live:
800-267-6316
International Live:
203-518-9783
Conference ID:
NRQ224
To listen to a replay of the teleconference, which subsequently
will be available through August 13, 2024:
Domestic Replay:
888-219-1263
International Replay:
402-220-4943
ABOUT NEWPARK RESOURCES
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.
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 exploration of strategic alternatives for the
long-term positioning of our Fluids Systems division, including the
ongoing sale process as well as whether any such transaction will
be consummated on the anticipated timeline or at all; divestitures;
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 conflicts in Europe and the Middle East;
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; expanding our
services in the utilities sector, which may require unionized
labor; the price and availability of raw materials; inflation;
capital investments and business acquisitions; 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; legal compliance; the inherent
limitations of insurance coverage; income taxes; cybersecurity
incidents or business system disruptions; 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
Six Months Ended
(In thousands, except per share data)
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Revenues
$
179,009
$
169,107
$
183,256
$
348,116
$
383,286
Cost of revenues
140,084
134,587
150,170
274,671
314,908
Selling, general and administrative
expenses
26,381
24,344
25,576
50,725
50,986
Other operating (income) loss, net
(755
)
(1,683
)
(1,184
)
(2,438
)
(1,445
)
Impairments and other charges
—
—
2,816
—
2,816
Operating income
13,299
11,859
5,878
25,158
16,021
Foreign currency exchange (gain) loss
128
(31
)
(102
)
97
217
Interest expense, net
1,796
1,750
2,146
3,546
4,235
Income before income taxes
11,375
10,140
3,834
21,515
11,569
Provision for income taxes
3,335
2,847
2,132
6,182
4,247
Net income
$
8,040
$
7,293
$
1,702
$
15,333
$
7,322
Calculation of
EPS:
Net income - basic and diluted
$
8,040
$
7,293
$
1,702
$
15,333
$
7,322
Weighted average common shares outstanding
- basic
85,473
85,001
85,761
85,237
87,159
Dilutive effect of stock options and
restricted stock awards
2,153
2,244
1,712
2,198
1,853
Weighted average common shares outstanding
- diluted
87,626
87,245
87,473
87,435
89,012
Net income per common share - basic:
$
0.09
$
0.09
$
0.02
$
0.18
$
0.08
Net income per common share - diluted:
$
0.09
$
0.08
$
0.02
$
0.18
$
0.08
Newpark Resources, Inc.
Operating Segment Results
(Unaudited)
Three Months Ended
Six Months Ended
(In thousands)
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Revenues
Fluids Systems
$
112,218
$
120,140
$
135,181
$
232,358
$
279,355
Industrial Solutions
66,791
48,967
48,075
115,758
103,931
Total revenues
$
179,009
$
169,107
$
183,256
$
348,116
$
383,286
Operating income (loss)
Fluids Systems
$
2,345
$
6,836
$
1,965
$
9,181
$
5,431
Industrial Solutions
19,392
12,936
12,774
32,328
27,257
Corporate office
(8,438
)
(7,913
)
(8,861
)
(16,351
)
(16,667
)
Total operating income
$
13,299
$
11,859
$
5,878
$
25,158
$
16,021
Segment operating margin
Fluids Systems
2.1
%
5.7
%
1.5
%
4.0
%
1.9
%
Industrial Solutions
29.0
%
26.4
%
26.6
%
27.9
%
26.2
%
Fluids Systems operating income for the three months and six
months ended June 30, 2023 included a $2.1 million and $4.4
million, respectively, loss associated with our now exited Gulf of
Mexico operations.
Newpark Resources, Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands, except share data)
June 30, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
35,087
$
38,594
Receivables, net
158,834
168,457
Inventories
127,421
141,079
Prepaid expenses and other current
assets
10,284
9,094
Total current assets
331,626
357,224
Property, plant and equipment, net
205,076
195,289
Operating lease assets
19,555
20,731
Goodwill
47,259
47,283
Other intangible assets, net
15,580
17,114
Deferred tax assets
3,553
2,628
Other assets
2,151
2,067
Total assets
$
624,800
$
642,336
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current debt
$
17,591
$
16,916
Accounts payable
69,153
70,087
Accrued liabilities
40,162
49,281
Total current liabilities
126,906
136,284
Long-term debt, less current portion
40,392
58,117
Noncurrent operating lease liabilities
16,587
17,404
Deferred tax liabilities
6,843
8,307
Other noncurrent liabilities
7,463
6,860
Total liabilities
198,191
226,972
Common stock, $0.01 par value (200,000,000
shares authorized and 111,669,464 and 111,669,464 shares issued,
respectively)
1,117
1,117
Paid-in capital
631,497
639,645
Accumulated other comprehensive loss
(66,084
)
(62,839
)
Retained earnings
26,137
10,773
Treasury stock, at cost (25,202,455 and
26,471,738 shares, respectively)
(166,058
)
(173,332
)
Total stockholders’ equity
426,609
415,364
Total liabilities and stockholders’
equity
$
624,800
$
642,336
Newpark Resources, Inc.
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
Six Months Ended June
30,
(In thousands)
2024
2023
Cash flows from operating
activities:
Net income
$
15,333
$
7,322
Adjustments to reconcile net income to net
cash provided by operations:
Impairments and other non-cash charges
—
2,816
Depreciation and amortization
14,835
15,803
Stock-based compensation expense
3,122
3,298
Provision for deferred income taxes
(2,196
)
(916
)
Credit loss expense
1,040
464
Gain on sale of assets
(1,049
)
(1,649
)
Gain on insurance recovery
(874
)
—
Amortization of original issue discount
and debt issuance costs
260
274
Change in assets and liabilities:
Decrease in receivables
4,369
39,324
(Increase) decrease in inventories
12,158
(3,440
)
Increase in other assets
(1,524
)
(3,187
)
Increase (decrease) in accounts
payable
647
(14,453
)
Decrease in accrued liabilities and
other
(6,590
)
(8,808
)
Net cash provided by operating
activities
39,531
36,848
Cash flows from investing
activities:
Capital expenditures
(20,468
)
(15,347
)
Proceeds from divestitures
—
18,086
Proceeds from sale of property, plant and
equipment
2,042
2,304
Proceeds from insurance property claim
1,385
—
Net cash provided by (used in)
investing activities
(17,041
)
5,043
Cash flows from financing
activities:
Borrowings on lines of credit
87,444
149,253
Payments on lines of credit
(101,077
)
(167,435
)
Purchases of treasury stock
(4,332
)
(21,966
)
Proceeds from employee stock plans
17
—
Other financing activities
(7,040
)
(2,864
)
Net cash used in financing
activities
(24,988
)
(43,012
)
Effect of exchange rate changes on
cash
(961
)
332
Net decrease in cash, cash equivalents,
and restricted cash
(3,459
)
(789
)
Cash, cash equivalents, and restricted
cash at beginning of period
38,901
25,061
Cash, cash equivalents, and restricted
cash at end of period
$
35,442
$
24,272
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, Adjusted Net Income Per Common Share, earnings
before interest, taxes, depreciation and amortization (“EBITDA”),
Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA Margin, Net Debt,
and Net Leverage.
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 and Adjusted Net Income Per Common
Share
The following tables reconcile the Company’s net income and net
income per common share calculated in accordance with GAAP to the
non-GAAP financial measures of Adjusted Net Income and Adjusted Net
Income Per Common Share:
Consolidated
Three Months Ended
Six Months Ended
(In thousands)
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income (loss) (GAAP)
$
8,040
$
7,293
$
1,702
$
15,333
$
7,322
Fluids Systems sale process transaction
expenses
1,859
2,256
—
4,115
—
Impairments and other charges
—
—
2,816
—
2,816
Gain on insurance recovery
—
(874
)
—
(874
)
—
Gain on legal settlement
—
(550
)
—
(550
)
—
Facility exit costs and other, net
741
—
2,107
741
4,399
Severance costs
212
1,147
1,169
1,359
2,124
Tax on adjustments
(435
)
(416
)
(1,019
)
(851
)
(1,701
)
Adjusted Net Income (non-GAAP)
$
10,417
$
8,856
$
6,775
$
19,273
$
14,960
Adjusted Net Income (non-GAAP)
$
10,417
$
8,856
$
6,775
$
19,273
$
14,960
Weighted average common shares outstanding
- basic
85,473
85,001
85,761
85,237
87,159
Dilutive effect of stock options and
restricted stock awards
2,153
2,244
1,712
2,198
1,853
Weighted average common shares outstanding
- diluted
87,626
87,245
87,473
87,435
89,012
Adjusted Net Income Per Common Share -
Diluted (non-GAAP):
$
0.12
$
0.10
$
0.08
$
0.22
$
0.17
Newpark Resources, Inc. Non-GAAP Reconciliations
(Continued) (Unaudited)
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
The following table reconciles the Company’s net income
calculated in accordance with GAAP to the non-GAAP financial
measures of EBITDA, Adjusted EBITDA, and Adjusted EBITDA
Margin:
Consolidated
Three Months Ended
Six Months Ended
(In thousands)
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Revenues
$
179,009
$
169,107
$
183,256
$
348,116
$
383,286
Net income (GAAP)
$
8,040
$
7,293
$
1,702
$
15,333
$
7,322
Interest expense, net
1,796
1,750
2,146
3,546
4,235
Provision for income taxes
3,335
2,847
2,132
6,182
4,247
Depreciation and amortization
7,424
7,411
7,908
14,835
15,803
EBITDA (non-GAAP)
20,595
19,301
13,888
39,896
31,607
Fluids Systems sale process transaction
expenses
1,859
2,256
—
4,115
—
Impairments and other charges
—
—
2,816
—
2,816
Gain on insurance recovery
—
(874
)
—
(874
)
—
Gain on legal settlement
—
(550
)
—
(550
)
—
Facility exit costs and other, net
741
—
1,944
741
4,236
Severance costs
212
1,147
1,169
1,359
2,124
Adjusted EBITDA (non-GAAP)
$
23,407
$
21,280
$
19,817
$
44,687
$
40,783
Adjusted EBITDA Margin
(non-GAAP)
13.1
%
12.6
%
10.8
%
12.8
%
10.6
%
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
Six Months Ended
(In thousands)
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net cash provided by operating
activities (GAAP)
27,581
11,950
7,404
39,531
36,848
Capital expenditures
(6,586
)
(13,882
)
(8,375
)
(20,468
)
(15,347
)
Proceeds from sale of property, plant and
equipment
899
1,143
1,564
2,042
2,304
Free Cash Flow (non-GAAP)
$
21,894
$
(789
)
$
593
$
21,105
$
23,805
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
Six Months Ended
(In thousands)
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Revenues
$
112,218
$
120,140
$
135,181
$
232,358
$
279,355
Operating income (loss) (GAAP)
$
2,345
$
6,836
$
1,965
$
9,181
$
5,431
Depreciation and amortization
1,750
1,745
1,961
3,495
3,936
EBITDA (non-GAAP)
4,095
8,581
3,926
12,676
9,367
Fluids Systems sale process transaction
expenses
304
313
—
617
—
Impairments and other charges
—
—
2,816
—
2,816
Gain on insurance recovery
—
(807
)
—
(807
)
—
Facility exit costs and other, net
741
—
1,944
741
4,236
Severance costs
36
515
148
551
1,103
Adjusted EBITDA (non-GAAP)
$
5,176
$
8,602
$
8,834
$
13,778
$
17,522
Operating Margin (GAAP)
2.1
%
5.7
%
1.5
%
4.0
%
1.9
%
Adjusted EBITDA Margin
(non-GAAP)
4.6
%
7.2
%
6.5
%
5.9
%
6.3
%
Industrial Solutions
Three Months Ended
Six Months Ended
(In thousands)
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Revenues
$
66,791
$
48,967
$
48,075
$
115,758
$
103,931
Operating income (GAAP)
$
19,392
$
12,936
$
12,774
$
32,328
$
27,257
Depreciation and amortization
5,215
5,181
5,277
10,396
10,534
EBITDA (non-GAAP)
24,607
18,117
18,051
42,724
37,791
Gain on insurance recovery
—
(67
)
—
(67
)
—
Gain on legal settlement
—
(550
)
—
(550
)
—
Severance costs
175
518
92
693
92
Adjusted EBITDA (non-GAAP)
$
24,782
$
18,018
$
18,143
$
42,800
$
37,883
Operating Margin (GAAP)
29.0
%
26.4
%
26.6
%
27.9
%
26.2
%
Adjusted EBITDA Margin
(non-GAAP)
37.1
%
36.8
%
37.7
%
37.0
%
36.5
%
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)
September 30,
2023
December 31,
2023
March 31, 2024
June 30, 2024
June 30, 2024
Revenues
$
198,498
$
167,816
$
169,107
$
179,009
$
714,430
Net income (loss) (GAAP)
$
7,670
$
(476
)
$
7,293
$
8,040
$
22,527
Interest expense, net
2,027
1,919
1,750
1,796
7,492
Provision for income taxes
3,995
2,424
2,847
3,335
12,601
Depreciation and amortization
7,704
7,865
7,411
7,424
30,404
EBITDA (non-GAAP)
21,396
11,732
19,301
20,595
73,024
Fluids Systems sale process transaction
expenses
892
894
2,256
1,859
5,901
Impairments and other charges
—
3,540
—
—
3,540
Gain on insurance recovery
—
—
(874
)
—
(874
)
Gain on legal settlement
—
—
(550
)
—
(550
)
Facility exit costs and other, net
358
—
—
741
1,099
Severance costs
506
29
1,147
212
1,894
Adjusted EBITDA (non-GAAP)
$
23,152
$
16,195
$
21,280
$
23,407
$
84,034
Adjusted EBITDA Margin
(non-GAAP)
11.7
%
9.7
%
12.6
%
13.1
%
11.8
%
Fluids Systems
Three Months Ended
TTM
(In thousands)
September 30,
2023
December 31,
2023
March 31, 2024
June 30, 2024
June 30, 2024
Revenues
$
141,236
$
121,361
$
120,140
$
112,218
$
494,955
Operating income (loss) (GAAP)
$
7,573
$
(1,147
)
$
6,836
$
2,345
$
15,607
Depreciation and amortization
1,883
1,957
1,745
1,750
7,335
EBITDA (non-GAAP)
9,456
810
8,581
4,095
22,942
Fluids Systems sale process transaction
expenses
293
326
313
304
1,236
Impairments and other charges
—
3,540
—
—
3,540
Gain on insurance recovery
—
—
(807
)
—
(807
)
Facility exit costs and other, net
358
—
—
741
1,099
Severance costs
40
29
515
36
620
Adjusted EBITDA (non-GAAP)
$
10,147
$
4,705
$
8,602
$
5,176
$
28,630
Operating Margin (GAAP)
5.4
%
(0.9
)%
5.7
%
2.1
%
3.2
%
Adjusted EBITDA Margin
(non-GAAP)
7.2
%
3.9
%
7.2
%
4.6
%
5.8
%
Newpark Resources, Inc.
Non-GAAP Reconciliations
(Continued)
(Unaudited)
Industrial Solutions
Three Months Ended
TTM
(In thousands)
September 30,
2023
December 31,
2023
March 31, 2024
June 30, 2024
June 30, 2024
Revenues
$
57,262
$
46,455
$
48,967
$
66,791
$
219,475
Operating income (GAAP)
$
14,336
$
11,415
$
12,936
$
19,392
$
58,079
Depreciation and amortization
5,224
5,350
5,181
5,215
20,970
EBITDA (non-GAAP)
19,560
16,765
18,117
24,607
79,049
Gain on insurance recovery
—
—
(67
)
—
(67
)
Gain on legal settlement
—
—
(550
)
—
(550
)
Severance costs
162
—
518
175
855
Adjusted EBITDA (non-GAAP)
$
19,722
$
16,765
$
18,018
$
24,782
$
79,287
Operating Margin (GAAP)
25.0
%
24.6
%
26.4
%
29.0
%
26.5
%
Adjusted EBITDA Margin
(non-GAAP)
34.4
%
36.1
%
36.8
%
37.1
%
36.1
%
Net Debt and Net Leverage
The following table reconciles the Company’s total debt
calculated in accordance with GAAP to the non-GAAP financial
measures of Net Debt and Net Leverage:
(In thousands)
June 30, 2024
December 31,
2023
Current debt
$
17,591
$
16,916
Long-term debt, less current portion
40,392
58,117
Total Debt
57,983
75,033
Less: cash and cash equivalents
(35,087
)
(38,594
)
Net Debt
$
22,896
$
36,439
Adjusted EBITDA (non-GAAP) -
TTM
$
84,034
$
80,130
Net Leverage
0.3x
0.5x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805537773/en/
IR CONTACT Noel Ryan or Paul Bartolai
Investors@Newpark.com
Grafico Azioni Newpark Resources (NYSE:NR)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Newpark Resources (NYSE:NR)
Storico
Da Dic 2023 a Dic 2024
