Delaware | 001-2960 | 72-1123385 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
9320 Lakeside Blvd., Suite 100 The Woodlands, TX | 77381 | |
(Address of principal executive offices) | (Zip Code) |
p | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
p | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
p | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
p | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c)) |
Exhibit No. | Description | |
99.1 | Press release issued by Newpark Resources, Inc. on April 27, 2017. |
NEWPARK RESOURCES, INC. | |||
Dated: | April 27, 2017 | By: | /s/ Gregg S. Piontek |
Gregg S. Piontek, Vice President and Chief Financial Officer | |||
(Principal Financial Officer) |
Exhibit No. | Description | |
99.1 | Press release issued by Newpark Resources, Inc. on April 27, 2017. |
![]() | NEWS RELEASE | ||
Contacts: | Brian Feldott Director, Investor Relations Newpark Resources, Inc. bfeldott@newpark.com 281-362-6800 | ||
FOR IMMEDIATE RELEASE |
Three Months Ended | ||||||||||||
(In thousands, except per share data) | March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||||
Revenues | $ | 158,691 | $ | 137,083 | $ | 114,544 | ||||||
Cost of revenues | 129,590 | 124,167 | 111,573 | |||||||||
Selling, general and administrative expenses | 25,397 | 21,810 | 23,492 | |||||||||
Other operating income, net | (42 | ) | (516 | ) | (1,696 | ) | ||||||
Impairments and other charges | — | (180 | ) | — | ||||||||
Operating income (loss) | 3,746 | (8,198 | ) | (18,825 | ) | |||||||
Foreign currency exchange (gain) loss | 392 | (270 | ) | (455 | ) | |||||||
Interest expense, net | 3,218 | 2,636 | 2,081 | |||||||||
(Gain) loss on extinguishment of debt | — | 279 | (1,894 | ) | ||||||||
Income (loss) from operations before income taxes | 136 | (10,843 | ) | (18,557 | ) | |||||||
Provision (benefit) for income taxes | 1,119 | (10,786 | ) | (5,257 | ) | |||||||
Net loss | $ | (983 | ) | $ | (57 | ) | $ | (13,300 | ) | |||
Calculation of EPS: | ||||||||||||
Basic - net loss | $ | (983 | ) | $ | (57 | ) | $ | (13,300 | ) | |||
Assumed conversions of Convertible Notes due 2017 | — | — | — | |||||||||
Diluted - adjusted net loss | $ | (983 | ) | $ | (57 | ) | $ | (13,300 | ) | |||
Basic - weighted average common shares outstanding | 84,153 | 84,066 | 83,258 | |||||||||
Dilutive effect of stock options and restricted stock awards | — | — | — | |||||||||
Dilutive effect of Convertible Notes due 2017 | — | — | — | |||||||||
Dilutive effect of Convertible Notes due 2021 | — | — | — | |||||||||
Diluted - weighted average common shares outstanding | 84,153 | 84,066 | 83,258 | |||||||||
Loss per common share - basic: | $ | (0.01 | ) | $ | — | $ | (0.16 | ) | ||||
Loss per common share - diluted: | $ | (0.01 | ) | $ | — | $ | (0.16 | ) |
Three Months Ended | |||||||||||
(In thousands) | March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||
Revenues | |||||||||||
Fluids systems | $ | 136,050 | $ | 111,560 | $ | 98,651 | |||||
Mats and integrated services | 22,641 | 25,523 | 15,893 | ||||||||
Total revenues | $ | 158,691 | $ | 137,083 | $ | 114,544 | |||||
Operating income (loss) | |||||||||||
Fluids systems | $ | 6,352 | $ | (7,505 | ) | $ | (15,207 | ) | |||
Mats and integrated services | 6,402 | 6,134 | 3,736 | ||||||||
Corporate office | (9,008 | ) | (6,827 | ) | (7,354 | ) | |||||
Operating income (loss) | $ | 3,746 | $ | (8,198 | ) | $ | (18,825 | ) | |||
Segment operating margin | |||||||||||
Fluids systems | 4.7 | % | (6.7 | )% | (15.4 | )% | |||||
Mats and integrated services | 28.3 | % | 24.0 | % | 23.5 | % |
(In thousands, except share data) | March 31, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Cash and cash equivalents | $ | 69,876 | $ | 87,878 | |||
Receivables, net | 238,158 | 214,307 | |||||
Inventories | 145,384 | 143,612 | |||||
Prepaid expenses and other current assets | 16,765 | 17,143 | |||||
Total current assets | 470,183 | 462,940 | |||||
Property, plant and equipment, net | 301,167 | 303,654 | |||||
Goodwill | 20,051 | 19,995 | |||||
Other intangible assets, net | 5,452 | 6,067 | |||||
Deferred tax assets | 1,837 | 1,747 | |||||
Other assets | 3,568 | 3,780 | |||||
Total assets | $ | 802,258 | $ | 798,183 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current debt | $ | 83,086 | $ | 83,368 | |||
Accounts payable | 62,536 | 65,281 | |||||
Accrued liabilities | 34,357 | 31,152 | |||||
Total current liabilities | 179,979 | 179,801 | |||||
Long-term debt, less current portion | 73,936 | 72,900 | |||||
Deferred tax liabilities | 36,323 | 38,743 | |||||
Other noncurrent liabilities | 6,627 | 6,196 | |||||
Total liabilities | 296,865 | 297,640 | |||||
Common stock, $0.01 par value, 200,000,000 shares authorized and 99,876,940 and 99,843,094 shares issued, respectively | 999 | 998 | |||||
Paid-in capital | 562,004 | 558,966 | |||||
Accumulated other comprehensive loss | (60,653 | ) | (63,208 | ) | |||
Retained earnings | 128,704 | 129,873 | |||||
Treasury stock, at cost; 15,110,843 and 15,162,050 shares, respectively | (125,661 | ) | (126,086 | ) | |||
Total stockholders’ equity | 505,393 | 500,543 | |||||
Total liabilities and stockholders' equity | $ | 802,258 | $ | 798,183 |
Three Months Ended March 31, | |||||||
(In thousands) | 2017 | 2016 | |||||
Cash flows from operating activities: | |||||||
Net loss | $ | (983 | ) | $ | (13,300 | ) | |
Adjustments to reconcile net loss to net cash used in operations: | |||||||
Depreciation and amortization | 9,387 | 9,573 | |||||
Stock-based compensation expense | 2,836 | 2,974 | |||||
Provision for deferred income taxes | (2,545 | ) | (36 | ) | |||
Net provision for doubtful accounts | 666 | 528 | |||||
Gain on sale of assets | (847 | ) | (1,271 | ) | |||
Gain on extinguishment of debt | — | (1,894 | ) | ||||
Amortization of original issue discount and debt issuance costs | 1,330 | 286 | |||||
Change in assets and liabilities: | |||||||
(Increase) decrease in receivables | (23,019 | ) | 27,606 | ||||
(Increase) decrease in inventories | (829 | ) | 10,630 | ||||
Decrease in other assets | 521 | 1,381 | |||||
Decrease in accounts payable | (1,692 | ) | (20,028 | ) | |||
Increase (decrease) in accrued liabilities and other | 3,731 | (19,349 | ) | ||||
Net cash used in operating activities | (11,444 | ) | (2,900 | ) | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (7,291 | ) | (13,418 | ) | |||
Increase in restricted cash | (46 | ) | — | ||||
Proceeds from sale of property, plant and equipment | 288 | 1,450 | |||||
Net cash used in investing activities | (7,049 | ) | (11,968 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings on lines of credit | — | 2,479 | |||||
Payments on lines of credit | — | (4,851 | ) | ||||
Purchase of Convertible Notes due 2017 | — | (9,206 | ) | ||||
Debt issuance costs | (157 | ) | — | ||||
Other financing activities | (371 | ) | (3 | ) | |||
Proceeds from employee stock plans | 211 | — | |||||
Purchases of treasury stock | (48 | ) | — | ||||
Net cash used in financing activities | (365 | ) | (11,581 | ) | |||
Effect of exchange rate changes on cash | 856 | 1,845 | |||||
Net decrease in cash and cash equivalents | (18,002 | ) | (24,604 | ) | |||
Cash and cash equivalents at beginning of year | 87,878 | 107,138 | |||||
Cash and cash equivalents at end of period | $ | 69,876 | $ | 82,534 |