Company reports net loss of ($0.08) per share; Adjusted net income of
$0.01 per diluted share
THE
WOODLANDS, Texas, Aug. 2, 2022
/PRNewswire/ -- Newpark Resources, Inc. (NYSE: NR) ("Newpark" or
the "Company") today announced results for its second quarter ended
June 30, 2022. Total revenues for the second quarter of 2022
were $194.1 million compared to
$176.4 million for the first quarter
of 2022 and $142.2 million for the
second quarter of 2021. Net loss for the second quarter of 2022 was
$7.8 million, or ($0.08) per share, compared to net income of
$2.5 million, or $0.03 per diluted share, for the first quarter of
2022, and a net loss of $6.0 million,
or ($0.07) per share, for the second
quarter of 2021.
Adjusted net income for the second quarter of 2022 was
$1.1 million, or $0.01 per diluted share. Second quarter 2022
results include $9.1 million of
pre-tax charges ($8.8 million
after-tax, $0.09 per share),
including $8.9 million for the
Industrial Blending segment primarily related to the impairment of
assets, as well as exit and other costs associated with the
Conroe, Texas industrial blending
and warehouse facility. As previously announced, the Company shut
down the Industrial Blending operations in March 2022 and is divesting of the assets.
Matthew Lanigan, Newpark's
President and Chief Executive Officer, stated, "Our second quarter
performance demonstrated progress in both of our businesses, with
strong execution and improving market fundamentals contributing to
a 10% sequential increase in revenues and continued improvement in
EBITDA within our core business activities. Consolidated revenues
were $194 million for the second
quarter of 2022, delivering Adjusted EBITDA of $13.3 million.
"The Industrial Solutions segment revenues improved by 38%
sequentially to $49 million in the
second quarter, benefitting from $19
million in second quarter product sales, reflective of
robust demand from the utilities sector, along with the benefit of
a shift in delivery of certain first quarter orders into April.
Rental and service revenues declined slightly from the prior
quarter, as the strong start to the quarter was offset by the
impact from the dry and warm weather pattern in the Southern U.S.,
as well as unanticipated delays in customer projects associated
with various supply chain disruptions. The Industrial Solutions
segment delivered $9.8 million of
operating income and EBITDA of $15.1
million for the second quarter of 2022."
Lanigan continued, "The Fluids Systems segment revenues improved
by 3% sequentially, as the seasonal pullback in Canada through Spring break-up was more than
offset by solid revenue growth in U.S. land markets and a
$5 million increase in the
Gulf of Mexico. Outside of
North America, revenues improved
slightly to $49 million in the second
quarter, with improvements from Asia
Pacific and the start-up of the previously-disclosed project
in Cyprus being mostly offset by
lower activity in Kuwait and parts
of Europe, as well as the impact
of the strengthening U.S. dollar. Operating income and EBITDA for
the Fluids Systems segment declined to $0.4
million and $4.3 million,
respectively, with profitability negatively impacted by Spring
break-up in Canada, a softer
product mix, as well as an elevated operating loss in the
Gulf of Mexico. The second quarter
Gulf of Mexico result reflects a
combination of incremental costs incurred to meet a tight deepwater
project timeline, with unrelated operational issues ultimately
leading the customer to delay and reduce the scope of the planned
drilling project, and return unused inventory. The operating loss
from our Gulf of Mexico operations
increased approximately $1 million in
the second quarter, overshadowing the solid progress we're making
in other areas.
"Regarding cash flows, operating activities used cash of
$26 million in the second quarter,
primarily reflecting an increase in working capital. Inventories
used $24 million of cash in the
quarter, reflecting ongoing inflation in raw material costs,
activity-driven increases, and increased vendor prepayments on
purchases, as well as higher levels of contingency stocks to ensure
our ability to deliver for our customers as drilling activity
recovers. Our U.S. mineral grinding business and Gulf of Mexico operations contributed
$10 million of the sequential
increase in inventories. Receivables also used $11 million of cash in the quarter, as the impact
from the higher revenues was partially offset by a meaningful
improvement in receivable DSO's," added Lanigan. "Looking ahead, we
expect revenues and income to strengthen and a return to positive
operating cash flow generation in the third quarter, primarily
benefitting from the stabilizing supply chain environment, the
continued ramp-up of deferred projects in the EMEA region, and the
seasonal recovery in Canada. We
expect the robust market outlook across all facets of the energy
sector, along with our ongoing portfolio actions to strengthen our
Fluids Systems business, will provide a foundation for sustainable
free cash flow generation over the longer-term. Additionally, our
announced divestiture actions, as well as efforts to optimize
investments within the Gulf of
Mexico, provides the opportunity for more than $70 million of cash generation in the coming
months, which can be redeployed to reduce our debt, accelerate
investment in Industrial Solutions growth, and return value to
shareholders."
U.S. Mineral Grinding Business Divestiture
Update
As previously disclosed, in February
2022, the Company's Board of Directors approved management's
plan to explore strategic options for the U.S. mineral grinding
business. During the second quarter of 2022, the Company initiated
a formal sales process, led by our third-party advisor PPHB.
While market and other inherent uncertainties remain that could
impact the timing or completion of a sale transaction, we currently
anticipate completing a divestiture transaction in the fourth
quarter of 2022. As of June 30, 2022,
the U.S. mineral grinding business had $53
million of net capital employed, including $31 million of net working capital. The U.S.
mineral grinding business is reported within the Fluids Systems
segment.
Segment Change and Results
Our Industrial Blending segment (previously aggregated within
the Industrial Solutions segment) began operations in 2020 and
supported industrial end-markets, including the production of
disinfectants and industrial cleaning products. As part of the
previously announced exit plan approved by our Board of Directors
in February 2022, we completed the
wind down of the Industrial Blending business in the first quarter
of 2022 and are currently pursuing the sale of the industrial
blending and warehouse facility and related equipment located in
Conroe, Texas. Beginning in the
second quarter of 2022, the assets and operating results associated
with our Industrial Blending operations have been reported as a
separate segment for all periods presented.
The Industrial Solutions segment generated revenues of
$48.9 million for the second quarter
of 2022 compared to $35.4 million for
the first quarter of 2022 and $43.3
million for the second quarter of 2021. Segment operating
income was $9.8 million for the
second quarter of 2022 compared to $6.4
million for the first quarter of 2022 and $11.3 million for the second quarter of 2021.
Industrial Solutions operating income for the second quarter of
2021 included a $1.0 million gain
related to a legal settlement.
The Fluids Systems segment generated revenues of $145.3 million for the second quarter of 2022
compared to $141.0 million for the
first quarter of 2022 and $97.1
million for the second quarter of 2021. Segment operating
income was $0.4 million for the
second quarter of 2022 compared to operating income of $3.4 million for the first quarter of 2022 and an
operating loss of $6.5 million for
the second quarter of 2021.
The Industrial Blending segment generated no revenues in 2022,
and $1.9 million for the second
quarter of 2021. Segment operating loss was $8.9 million for the second quarter of 2022
compared to an operating loss of $0.9
million for the first quarter of 2022 and an operating loss
of $1.2 million for the second
quarter of 2021. The Industrial Blending operating loss for the
second quarter of 2022 includes a $7.9
million non-cash charge for the impairment of the long-lived
assets as well as exit and other costs related to the ongoing
process to sell these assets.
Conference Call
Newpark has scheduled a conference call to discuss second
quarter of 2022 results and its near-term operational outlook,
which will be broadcast live over the Internet, on Wednesday, August 3, 2022 at 10:00 a.m. Eastern Time / 9:00 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 August 17, 2022 and may be accessed by dialing
201-612-7415 and using pass code 13731190#. Also, an archive of the
webcast will be available shortly after the call at
www.newpark.com for 90 days.
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 for the year ended December 31, 2021, and its Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2022, 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 ongoing conflict
between Russia and Ukraine; the COVID-19 pandemic; the worldwide
oil and natural gas industry; our customer concentration and
reliance on the U.S. exploration and production market; our
international operations; operating hazards present in the oil and
natural gas industry and substantial liability claims, including
catastrophic well incidents; our contracts that can be terminated
or downsized by our customers without penalty; our product offering
expansion; our ability to attract, retain and develop qualified
leaders, key employees and skilled personnel; the price and
availability of raw materials; business acquisitions and capital
investments; our market competition; technological developments and
intellectual property in our industry; severe weather, natural
disasters, and seasonality; 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
restructuring activities; activist stockholders that may attempt to
effect changes at our Company or acquire control over our Company;
our ability to maintain compliance with the New York Stock
Exchange's continued listing requirements; 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,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
Revenues
|
$
194,144
|
|
$
176,438
|
|
$
142,249
|
|
$
370,582
|
|
$
283,421
|
Cost of
revenues
|
168,206
|
|
150,988
|
|
124,106
|
|
319,194
|
|
244,097
|
Selling, general and
administrative expenses
|
24,330
|
|
24,433
|
|
22,980
|
|
48,763
|
|
43,891
|
Other operating
(income) loss, net
|
(80)
|
|
50
|
|
(1,590)
|
|
(30)
|
|
(1,864)
|
Impairment
|
7,905
|
|
—
|
|
—
|
|
7,905
|
|
—
|
Operating income
(loss)
|
(6,217)
|
|
967
|
|
(3,247)
|
|
(5,250)
|
|
(2,703)
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
exchange (gain) loss
|
(583)
|
|
64
|
|
224
|
|
(519)
|
|
(108)
|
Interest expense,
net
|
1,638
|
|
1,206
|
|
2,164
|
|
2,844
|
|
4,572
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
790
|
Loss before income
taxes
|
(7,272)
|
|
(303)
|
|
(5,635)
|
|
(7,575)
|
|
(7,957)
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes
|
480
|
|
(2,824)
|
|
363
|
|
(2,344)
|
|
3,403
|
Net income
(loss)
|
$
(7,752)
|
|
$
2,521
|
|
$
(5,998)
|
|
$
(5,231)
|
|
$
(11,360)
|
|
|
|
|
|
|
|
|
|
|
Calculation of
EPS:
|
|
|
|
|
|
|
|
|
|
Net income (loss) -
basic and diluted
|
$
(7,752)
|
|
$
2,521
|
|
$
(5,998)
|
|
$
(5,231)
|
|
$
(11,360)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding – basic
|
92,657
|
|
92,118
|
|
91,145
|
|
92,389
|
|
90,924
|
Dilutive effect of
stock options and restricted stock awards
|
—
|
|
1,821
|
|
—
|
|
—
|
|
—
|
Weighted average common
shares outstanding – diluted
|
92,657
|
|
93,939
|
|
91,145
|
|
92,389
|
|
90,924
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share - basic:
|
$
(0.08)
|
|
$
0.03
|
|
$
(0.07)
|
|
$
(0.06)
|
|
$
(0.12)
|
Net income (loss) per
common share - diluted:
|
$
(0.08)
|
|
$
0.03
|
|
$
(0.07)
|
|
$
(0.06)
|
|
$
(0.12)
|
Newpark Resources, Inc.
Operating Segment
Results
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
(In
thousands)
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
Revenues
|
|
|
|
|
|
|
|
|
|
Fluids
Systems
|
$
145,261
|
|
$
141,014
|
|
$ 97,093
|
|
$
286,275
|
|
$
184,942
|
Industrial
Solutions
|
48,883
|
|
35,424
|
|
43,287
|
|
84,307
|
|
92,057
|
Industrial
Blending
|
—
|
|
—
|
|
1,869
|
|
—
|
|
6,422
|
Total
revenues
|
$
194,144
|
|
$
176,438
|
|
$
142,249
|
|
$
370,582
|
|
$
283,421
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
Fluids
Systems
|
$
425
|
|
$
3,374
|
|
$ (6,531)
|
|
$
3,799
|
|
$
(13,298)
|
Industrial
Solutions
|
9,754
|
|
6,358
|
|
11,298
|
|
16,112
|
|
24,478
|
Industrial Blending
(1)
|
(8,912)
|
|
(886)
|
|
(1,155)
|
|
(9,798)
|
|
(1,205)
|
Corporate
office
|
(7,484)
|
|
(7,879)
|
|
(6,859)
|
|
(15,363)
|
|
(12,678)
|
Total operating
income (loss)
|
$ (6,217)
|
|
$
967
|
|
$ (3,247)
|
|
$ (5,250)
|
|
$ (2,703)
|
|
|
|
|
|
|
|
|
|
|
Segment operating
margin
|
|
|
|
|
|
|
|
|
|
Fluids
Systems
|
0.3 %
|
|
2.4 %
|
|
(6.7) %
|
|
1.3 %
|
|
(7.2) %
|
Industrial
Solutions
|
20.0 %
|
|
17.9 %
|
|
26.1 %
|
|
19.1 %
|
|
26.6 %
|
Industrial
Blending
|
NM
|
|
NM
|
|
(61.8) %
|
|
NM
|
|
(18.8) %
|
|
(1) Industrial
Blending operating loss for the three months and six months ended
June 30, 2022 includes a $7.9 million non-cash charge for the
impairment of the long-lived assets as well as exit and other costs
related to the ongoing process to sell these assets.
|
Newpark Resources, Inc.
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
(In thousands, except
share data)
|
June 30,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
20,159
|
|
$
24,088
|
Receivables,
net
|
192,801
|
|
194,296
|
Inventories
|
190,171
|
|
155,341
|
Prepaid expenses and
other current assets
|
17,800
|
|
14,787
|
Total current
assets
|
420,931
|
|
388,512
|
|
|
|
|
Property, plant and
equipment, net
|
242,062
|
|
260,256
|
Operating lease
assets
|
25,500
|
|
27,569
|
Goodwill
|
47,132
|
|
47,283
|
Other intangible
assets, net
|
22,006
|
|
24,959
|
Deferred tax
assets
|
5,403
|
|
2,316
|
Other
assets
|
2,890
|
|
1,991
|
Total
assets
|
$
765,924
|
|
$
752,886
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
debt
|
$
22,484
|
|
$
19,210
|
Accounts
payable
|
94,587
|
|
84,585
|
Accrued
liabilities
|
39,194
|
|
46,597
|
Total current
liabilities
|
156,265
|
|
150,392
|
|
|
|
|
Long-term debt, less
current portion
|
121,975
|
|
95,593
|
Noncurrent operating
lease liabilities
|
20,488
|
|
22,352
|
Deferred tax
liabilities
|
7,143
|
|
11,819
|
Other noncurrent
liabilities
|
9,302
|
|
10,344
|
Total
liabilities
|
315,173
|
|
290,500
|
|
|
|
|
Common stock, $0.01
par value (200,000,000 shares authorized and 111,287,933 and
109,330,733 shares issued, respectively)
|
1,113
|
|
1,093
|
Paid-in
capital
|
637,293
|
|
634,929
|
Accumulated other
comprehensive loss
|
(68,801)
|
|
(61,480)
|
Retained
earnings
|
18,091
|
|
24,345
|
Treasury stock, at
cost (17,288,261 and 16,981,147 shares, respectively)
|
(136,945)
|
|
(136,501)
|
Total stockholders'
equity
|
450,751
|
|
462,386
|
Total liabilities and
stockholders' equity
|
$
765,924
|
|
$
752,886
|
Newpark Resources, Inc.
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
(In
thousands)
|
2022
|
|
2021
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(5,231)
|
|
$
(11,360)
|
Adjustments to
reconcile net loss to net cash provided by (used in)
operations:
|
|
|
|
Impairment
|
7,905
|
|
—
|
Depreciation and
amortization
|
20,563
|
|
21,493
|
Stock-based
compensation expense
|
3,198
|
|
3,273
|
Provision for deferred
income taxes
|
(6,918)
|
|
402
|
Credit loss
expense
|
447
|
|
230
|
Gain on sale of
assets
|
(2,001)
|
|
(5,358)
|
Loss on extinguishment
of debt
|
—
|
|
790
|
Amortization of
original issue discount and debt issuance costs
|
587
|
|
2,068
|
Change in assets and
liabilities:
|
|
|
|
Increase in
receivables
|
(5,350)
|
|
(5,594)
|
Increase in
inventories
|
(38,660)
|
|
(209)
|
Increase in other
assets
|
(5,196)
|
|
(2,236)
|
Increase in accounts
payable
|
12,208
|
|
21,344
|
Increase (decrease) in
accrued liabilities and other
|
(4,563)
|
|
994
|
Net cash provided by
(used in) operating activities
|
(23,011)
|
|
25,837
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(9,515)
|
|
(10,477)
|
Proceeds from sale of
property, plant and equipment
|
1,943
|
|
9,208
|
Net cash used in
investing activities
|
(7,572)
|
|
(1,269)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on lines of
credit
|
156,420
|
|
97,746
|
Payments on lines of
credit
|
(129,914)
|
|
(100,469)
|
Purchases of
Convertible Notes
|
—
|
|
(18,107)
|
Proceeds from term
loan
|
3,754
|
|
8,258
|
Debt issuance
costs
|
(997)
|
|
(196)
|
Purchases of treasury
stock
|
(2,537)
|
|
(1,350)
|
Other financing
activities
|
296
|
|
808
|
Net cash provided by
(used in) financing activities
|
27,022
|
|
(13,310)
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(1,412)
|
|
(591)
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash
|
(4,973)
|
|
10,667
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
29,489
|
|
30,348
|
Cash, cash equivalents,
and restricted cash at end of period
|
$
24,516
|
|
$
41,015
|
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, 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
|
|
Six Months
Ended
|
(In
thousands)
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
Net income (loss)
(GAAP)
|
$
(7,752)
|
|
$
2,521
|
|
$
(5,998)
|
|
$
(5,231)
|
|
$
(11,360)
|
Impairment
|
7,905
|
|
—
|
|
—
|
|
7,905
|
|
—
|
Restructuring charges
(1)
|
1,184
|
|
367
|
|
670
|
|
1,551
|
|
1,057
|
Gain on legal
settlement
|
—
|
|
—
|
|
(1,000)
|
|
—
|
|
(1,000)
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
790
|
Tax on
adjustments
|
(249)
|
|
(77)
|
|
69
|
|
(326)
|
|
(12)
|
Tax benefit on
restructuring of certain subsidiary legal entities
|
—
|
|
(3,111)
|
|
—
|
|
(3,111)
|
|
—
|
Adjusted net income
(loss) (non-GAAP)
|
$
1,088
|
|
$
(300)
|
|
$
(6,259)
|
|
$
788
|
|
$
(10,525)
|
|
(1) Restructuring
charges primarily relates to severance costs. In addition,
restructuring charges for the three months and six months ended
June 30, 2022 include exit and other costs related to the ongoing
process to sell the Industrial Blending assets.
|
Adjusted net income
(loss) (non-GAAP)
|
$
1,088
|
|
$
(300)
|
|
$
(6,259)
|
|
$
788
|
|
$
(10,525)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding – basic
|
92,657
|
|
92,118
|
|
91,145
|
|
92,389
|
|
90,924
|
Dilutive effect of
stock options and restricted stock awards
|
1,794
|
|
—
|
|
—
|
|
1,807
|
|
—
|
Weighted average common
shares outstanding – diluted
|
94,451
|
|
92,118
|
|
91,145
|
|
94,196
|
|
90,924
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per common share - diluted (non-GAAP):
|
$
0.01
|
|
$
—
|
|
$
(0.07)
|
|
$
0.01
|
|
$
(0.12)
|
EBITDA and Adjusted EBITDA
The following tables
reconcile the Company's net income (loss) calculated in accordance
with GAAP to the non-GAAP financial measures of EBITDA and Adjusted
EBITDA:
Consolidated
|
Three Months
Ended
|
|
Six Months
Ended
|
(In
thousands)
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
Net income (loss)
(GAAP)
|
$
(7,752)
|
|
$
2,521
|
|
$
(5,998)
|
|
$
(5,231)
|
|
$
(11,360)
|
Interest expense,
net
|
1,638
|
|
1,206
|
|
2,164
|
|
2,844
|
|
4,572
|
Provision (benefit)
for income taxes
|
480
|
|
(2,824)
|
|
363
|
|
(2,344)
|
|
3,403
|
Depreciation and
amortization
|
10,111
|
|
10,452
|
|
10,663
|
|
20,563
|
|
21,493
|
EBITDA
(non-GAAP)
|
4,477
|
|
11,355
|
|
7,192
|
|
15,832
|
|
18,108
|
Impairment
|
7,905
|
|
—
|
|
—
|
|
7,905
|
|
—
|
Restructuring charges
(1)
|
914
|
|
367
|
|
670
|
|
1,281
|
|
1,057
|
Gain on legal
settlement
|
—
|
|
—
|
|
(1,000)
|
|
—
|
|
(1,000)
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
790
|
Adjusted EBITDA
(non-GAAP)
|
$
13,296
|
|
$
11,722
|
|
$
6,862
|
|
$
25,018
|
|
$
18,955
|
|
(1) Restructuring
charges primarily relates to severance costs. In addition,
restructuring charges for the three months and six months ended
June 30, 2022 include exit and other costs related to the ongoing
process to sell the Industrial Blending assets.
|
Free Cash Flow
The following table reconciles the
Company's net cash provided by (used in) 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,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
Net cash provided by
(used in) operating activities (GAAP)
|
$
(25,801)
|
|
$
2,790
|
|
$
(1,936)
|
|
$
(23,011)
|
|
$
25,837
|
Capital
expenditures
|
(1,894)
|
|
(7,621)
|
|
(1,828)
|
|
(9,515)
|
|
(10,477)
|
Proceeds from sale of
property, plant and equipment
|
1,368
|
|
575
|
|
1,181
|
|
1,943
|
|
9,208
|
Free Cash Flow
(non-GAAP)
|
$
(26,327)
|
|
$
(4,256)
|
|
$
(2,583)
|
|
$
(30,583)
|
|
$
24,568
|
Newpark Resources, Inc.
Non-GAAP Reconciliations
(Continued)
(Unaudited)
EBITDA Margin
The following tables reconcile the Company's segment operating
income (loss) calculated in accordance with GAAP to the non-GAAP
financial measures of EBITDA and EBITDA Margin:
Fluids
Systems
|
Three Months
Ended
|
|
Six Months
Ended
|
(In
thousands)
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
Operating income
(loss) (GAAP)
|
$
425
|
|
$
3,374
|
|
$ (6,531)
|
|
$
3,799
|
|
$
(13,298)
|
Depreciation and
amortization
|
3,862
|
|
4,057
|
|
4,537
|
|
7,919
|
|
9,164
|
EBITDA
(non-GAAP)
|
4,287
|
|
7,431
|
|
(1,994)
|
|
11,718
|
|
(4,134)
|
Revenues
|
145,261
|
|
141,014
|
|
97,093
|
|
286,275
|
|
184,942
|
Operating Margin
(GAAP)
|
0.3 %
|
|
2.4 %
|
|
(6.7) %
|
|
1.3 %
|
|
(7.2) %
|
EBITDA Margin
(non-GAAP)
|
3.0 %
|
|
5.3 %
|
|
(2.1) %
|
|
4.1 %
|
|
(2.2) %
|
Industrial
Solutions
|
Three Months
Ended
|
|
Six Months
Ended
|
(In
thousands)
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
Operating income
(GAAP)
|
$
9,754
|
|
$
6,358
|
|
$ 11,298
|
|
$ 16,112
|
|
$ 24,478
|
Depreciation and
amortization
|
5,362
|
|
5,442
|
|
4,758
|
|
10,804
|
|
9,604
|
EBITDA
(non-GAAP)
|
15,116
|
|
11,800
|
|
16,056
|
|
26,916
|
|
34,082
|
Revenues
|
48,883
|
|
35,424
|
|
43,287
|
|
84,307
|
|
92,057
|
Operating Margin
(GAAP)
|
20.0 %
|
|
17.9 %
|
|
26.1 %
|
|
19.1 %
|
|
26.6 %
|
EBITDA Margin
(non-GAAP)
|
30.9 %
|
|
33.3 %
|
|
37.1 %
|
|
31.9 %
|
|
37.0 %
|
Industrial
Blending
|
Three Months
Ended
|
|
Six Months
Ended
|
(In
thousands)
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
Operating loss
(GAAP) (1)
|
$
(8,912)
|
|
$
(886)
|
|
$ (1,155)
|
|
$
(9,798)
|
|
$ (1,205)
|
Depreciation and
amortization
|
270
|
|
270
|
|
282
|
|
540
|
|
572
|
EBITDA (non-GAAP)
(1)
|
(8,642)
|
|
(616)
|
|
(873)
|
|
(9,258)
|
|
(633)
|
Revenues
|
—
|
|
—
|
|
1,869
|
|
—
|
|
6,422
|
Operating Margin
(GAAP)
|
NM
|
|
NM
|
|
(61.8) %
|
|
NM
|
|
(18.8) %
|
EBITDA Margin
(non-GAAP)
|
NM
|
|
NM
|
|
(46.7) %
|
|
NM
|
|
(9.9) %
|
|
(1) Industrial
Blending operating loss and EBITDA for the three months and six
months ended June 30, 2022 includes a $7.9 million non-cash charge
for the impairment of the long-lived assets as well as exit and
other costs related to the ongoing process to sell these
assets.
|
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 ratio of net debt to capital:
(In
thousands)
|
June 30,
2022
|
|
December 31,
2021
|
Current
debt
|
$
22,484
|
|
$
19,210
|
Long-term debt, less
current portion
|
121,975
|
|
95,593
|
Total
Debt
|
144,459
|
|
114,803
|
Total stockholders'
equity
|
450,751
|
|
462,386
|
Total
Capital
|
$
595,210
|
|
$
577,189
|
|
|
|
|
Ratio of Total Debt
to Capital
|
24.3 %
|
|
19.9 %
|
|
|
|
|
Total
Debt
|
$
144,459
|
|
$
114,803
|
Less: cash and cash
equivalents
|
(20,159)
|
|
(24,088)
|
Net
Debt
|
124,300
|
|
90,715
|
Total stockholders'
equity
|
450,751
|
|
462,386
|
Total Capital, Net
of Cash
|
$
575,051
|
|
$
553,101
|
|
|
|
|
Ratio of Net Debt to
Capital
|
21.6 %
|
|
16.4 %
|
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-second-quarter-2022-results-301598262.html
SOURCE Newpark Resources, Inc.