-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TkyDKg/fxDyHyezvHetnbqTgdbeKKeP3s9476J2znV1Q9idIiP9i9GKDwmFEUKlk 2zo429tgDURxDx7ohHX6PQ== 0000891092-05-000821.txt : 20050427 0000891092-05-000821.hdr.sgml : 20050427 20050427163454 ACCESSION NUMBER: 0000891092-05-000821 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050427 DATE AS OF CHANGE: 20050427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RPC INC CENTRAL INDEX KEY: 0000742278 STANDARD INDUSTRIAL CLASSIFICATION: OIL, GAS FIELD SERVICES, NBC [1389] IRS NUMBER: 581550825 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08726 FILM NUMBER: 05776817 BUSINESS ADDRESS: STREET 1: 2170 PIEDMONT RD NE CITY: ATLANTA STATE: GA ZIP: 30324 BUSINESS PHONE: 4048882950 MAIL ADDRESS: STREET 1: 2170 PIEDMONT ROAD CITY: ATLANTA STATE: GA ZIP: 30324 FORMER COMPANY: FORMER CONFORMED NAME: RPC ENERGY SERVICES INC DATE OF NAME CHANGE: 19920703 8-K 1 e20802_8k.txt FORM 8-K ================================================================================ 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): April 27, 2005 RPC, INC. (Exact name of registrant as specified in its charter) ---------- Delaware 1-8726 58-1550825 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 2170 Piedmont Road, NE, Atlanta, Georgia 30324 (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)) ================================================================================ Item 2.02 Results of Operations and Financial Condition. On April 27, 2005, RPC, Inc. issued a press release entitled "RPC, Inc. Reports 2005 First Quarter Financial Results," that announced the financial results for the first quarter ended March 31, 2005. Item 9.01 Financial Statements and Exhibits. (c) Exhibits. Exhibit 99 - Press Release dated April 27, 2005. -2- 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: April 27, 2005 /s/ BEN M. PALMER ------------------------------------- Ben M. Palmer Vice President, Chief Financial Officer and Treasurer -3- EX-99 2 e20802ex99.txt PRESS RELEASE Exhibit 99 [LOGO] RPC An Oil & Gas Services Company FOR IMMEDIATE RELEASE RPC, Inc. Reports 2005 First Quarter Financial Results o Revenues for the First Quarter Increased 15.4 Percent over Prior Year o Diluted EPS for the First Quarter Increased by 76.9 Percent to $0.23, Compared to $0.13 in the First Quarter of the Prior Year ATLANTA, April 27, 2005 -- RPC, Inc. (NYSE: RES) announced its unaudited results for the first quarter ended March 31, 2005. 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 March 31, 2005, revenues increased 15.4 percent to $92,330,000 compared to $80,002,000 in the first quarter last year. Operating profit for the quarter was $14,233,000 compared to $9,233,000 in the prior year. Net income was $9,927,000, or $0.23 diluted earnings per share, compared to $5,801,000 or $0.13 diluted earnings per share last year. Cost of services rendered and goods sold was $50,411,000, or 54.6 percent of revenues, during the first quarter of 2005, compared to $47,107,000, or 58.9 percent of revenues, in the prior year. The increase in these costs was due to the variable nature of many of these expenses, including fuel costs, maintenance and repair expenses, and materials and supplies expenses. As a percentage of revenues, however, these costs decreased because of improved pricing and higher equipment and personnel utilization and leveraging fixed costs over higher revenues. Selling, general and administrative expenses increased by 21.7 percent in the first quarter of 2005 to $18,406,000 from $15,126,000 in the prior year. This increase was due primarily to higher salary and wage expenses and increased incentive compensation consistent with higher activity levels and improved profitability. These costs also increased due to increased public company compliance costs. As a percentage of revenues, these costs increased to 19.9 percent in 2005 compared to 18.9 percent last year. Depreciation and amortization were $9,280,000 during the quarter, 8.7 percent higher than last year. This increase was due to the higher level of capital expenditures made during the recent quarters. Other income in the first quarter increased to $1,896,000 in 2005 compared to $149,000 last year due primarily to proceeds from a litigation settlement. "RPC's first quarter results reflect continued high activity levels, improved pricing, and capacity growth in our strongest service lines," stated Richard A. Hubbell, RPC's President and Chief Executive Officer. "The average domestic rig count during the first quarter was 1,283, 14.7 percent higher than the same period in 2004. The average price of oil increased almost 44 percent and the average price of natural gas increased by more than 16 percent during the quarter compared to the prior year, both of which served to drive the higher rig count. Our domestic revenues grew compared to the prior year, due to increases in capacity, utilization, and pricing. Our consolidated revenue growth rate was impacted by a decline in our international revenues. Revenues declined in our Kuwait operation, although this decline was partially offset by increases from new business in China. In addition, the strength in our domestic oilfield revenues compared to the prior year was partially offset by no revenue from our domestic marine liftboat division and from a non-oilfield business unit, both of which were sold subsequent to the end of the first quarter of 2004. We continued to support our strong service lines by making over $13 million in capital expenditures during the quarter, which enhanced our equipment's operating condition and increased our capacity." Page 2 1st Quarter 2005 Press Release Summary of Segment Operating Performance RPC's business segments are 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 include pressure pumping, snubbing, coiled tubing, nitrogen, wireline, well control, downhole tools, surface production equipment, casing installation services, 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 drill pipe and related tools, pipe handling, inspection and storage services and oilfield training services. Both Technical Services and Support Services experienced stronger results due to the increased drilling rig count and related customer activity. Technical Services revenues rose 19.0 percent for the quarter compared to the prior year, driven by higher activity, capacity and pricing in particular in pressure pumping but also in other service lines in this segment, offset by decreases in snubbing revenues due to declines in international revenues. Support Services revenues rose by 22.7 percent during the quarter compared to the prior year. This increase was driven by increased capacity and utilization in the rental tool division, which is the largest service line within Support Services. This increase was partially offset by no revenues from our marine liftboat division, which was sold during the fourth quarter of 2004. Other revenues declined, partially due to the sale in April 2004 of a non-oilfield business unit. Corporate expenses increased primarily due to higher public company compliance costs. Three Months Ended March 31, ---------------------------- 2005 2004 ---------------------------- (in thousands) Revenues: Technical services $ 77,958 $ 65,486 Support services 14,355 11,700 Other 17 2,816 - ------------------------------------------------ -------- -------- Total revenues $ 92,330 $ 80,002 - ------------------------------------------------ -------- -------- Operating profit (loss): Technical services $ 14,788 $ 11,150 Support services 2,171 139 Other (165) (211) Corporate expenses (2,561) (1,845) - ------------------------------------------------ -------- -------- Total operating profit (loss) $ 14,233 $ 9,233 - ------------------------------------------------ -------- -------- Other income, net 1,896 149 Interest expense, net (92) 25 - ------------------------------------------------ -------- -------- Income (loss) before income taxes $ 16,221 $ 9,357 ================================================ ======== ======== Page 3 1st Quarter 2005 Press Release 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 and Rocky Mountain regions, and in selected international markets. RPC's investor website can be found at www.rpc.net. For information about RPC, Inc., please contact: BEN M. PALMER Chief Financial Officer 404.321.2140 irdept@rpc.net JIM LANDERS Corporate Finance 404.321.2162 jlanders@rpc.net Page 4 1st Quarter 2005 Press Release RPC INCORPORATED AND SUBSIDIARIES
- ------------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) - ------------------------------------------------------------------------------------------------------------------------------------ Periods ended March 31, (Unaudited) First Quarter - ------------------------------------------------------------------------------------------------------------------------------------ % BETTER 2005 2004 (WORSE) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES $ 92,330 $ 80,002 15.4% COSTS AND EXPENSES: Cost of services rendered and goods sold 50,411 47,107 (7.0) Selling, general and administrative expenses 18,406 15,126 (21.7) Depreciation and amortization 9,280 8,536 (8.7) - ------------------------------------------------------------------------------------------------------------------------------------ Operating profit 14,233 9,233 54.2 Interest (income) expense, net (92) 25 NM Other income, net 1,896 149 NM - ------------------------------------------------------------------------------------------------------------------------------------ Income before income taxes 16,221 9,357 73.4 Income tax provision 6,294 3,556 (77.0) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME $ 9,927 $ 5,801 71.1% ==================================================================================================================================== EARNINGS PER SHARE Basic $ 0.23 $ 0.14 64.3% ================================================= Diluted $ 0.23 $ 0.13 76.9% ================================================= AVERAGE SHARES OUTSTANDING Basic 42,614 42,401 =============================== Diluted 44,033 43,071 ===============================
Page 5 1st Quarter 2005 Press Release RPC INCORPORATED AND SUBSIDIARIES - -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- At March 31, (Unaudited) (In thousands) - -------------------------------------------------------------------------------- 2005 2004 - -------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 22,272 $ 13,229 Accounts receivable, net 79,805 66,338 Inventories 11,565 10,838 Deferred income taxes 5,151 5,250 Income taxes receivable 286 2,074 Prepaid expenses and other current assets 3,462 3,363 - -------------------------------------------------------------------------------- Total current assets 122,541 101,092 - -------------------------------------------------------------------------------- Property, plant and equipment, net 117,941 108,916 Goodwill and other intangibles, net 20,509 15,905 Other assets 3,121 1,870 - -------------------------------------------------------------------------------- Total assets $ 264,112 $ 227,783 ================================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 23,804 $ 22,038 Accrued payroll and related expenses 7,645 6,227 Accrued insurance expenses 3,844 3,130 Accrued state, local and other taxes 1,581 950 Current portion of long-term debt 2,000 700 Other accrued expenses 5,086 3,793 - -------------------------------------------------------------------------------- Total current liabilities 43,960 36,838 - -------------------------------------------------------------------------------- Accrued insurance expenses 6,294 5,798 Long-term debt -- 4,800 Pension liabilities 10,527 9,220 Deferred income taxes 11,467 13,415 Other long-term liabilities 1,372 1,598 - -------------------------------------------------------------------------------- Total liabilities 73,620 71,669 - -------------------------------------------------------------------------------- Common stock 4,347 4,295 Capital in excess of par value 30,842 25,401 Retained earnings 168,411 133,766 Deferred compensation (6,335) (1,015) Accumulated other comprehensive loss (6,773) (6,333) - -------------------------------------------------------------------------------- Total stockholders' equity 190,492 156,114 - -------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 264,112 $ 227,783 ================================================================================ Page 6 1st Quarter 2005 Press Release RPC INCORPORATED AND SUBSIDIARIES - -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - -------------------------------------------------------------------------------- Three months ended March 31, (Unaudited) (In thousands) - -------------------------------------------------------------------------------- 2005 2004 - -------------------------------------------------------------------------------- Operating Activities: Net income $ 9,927 $ 5,801 Depreciation, amortization and other non-cash charges 9,621 8,555 Other net changes in operating activities (10,428) (14,026) - -------------------------------------------------------------------------------- Net cash provided by operating activities 9,120 330 - -------------------------------------------------------------------------------- Investing Activities: Capital expenditures (13,318) (8,625) Other investing activities 947 453 - -------------------------------------------------------------------------------- Net cash used for investing activities (12,371) (8,172) - -------------------------------------------------------------------------------- Financing Activities: Payment of dividends (1,704) (859) Payments on debt (2,800) (410) Cash paid for common stock purchased and retired (73) 0 Proceeds from exercise of stock options 464 38 - -------------------------------------------------------------------------------- Net cash used for financing activities (4,113) (1,231) - -------------------------------------------------------------------------------- Net decrease in cash and cash equivalents (7,364) (9,073) Cash and cash equivalents at beginning of period 29,636 22,302 - -------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 22,272 $ 13,229 ================================================================================ -----END PRIVACY-ENHANCED MESSAGE-----