-----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, Aj0selUblH8OT4xmL1elVKermBlOVFHeXb33cM+5Ntn+J4jjyDkqodQHwXkwMi/H rmcEqCTQxTcyxQLq85FdZA== 0000891092-05-001387.txt : 20050727 0000891092-05-001387.hdr.sgml : 20050727 20050727064648 ACCESSION NUMBER: 0000891092-05-001387 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050630 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050727 DATE AS OF CHANGE: 20050727 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: 05975493 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 e22222_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): July 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 July 27, 2005, RPC, Inc. issued a press release entitled "RPC, Inc. Reports 2005 Second Quarter Financial Results," that announced the financial results for the second quarter ended June 30, 2005. Item 9.01 Financial Statements and Exhibits. (c) Exhibits. Exhibit 99 - Press Release dated July 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: July 27, 2005 /s/ BEN M. PALMER ------------------------------------- Ben M. Palmer Vice President, Chief Financial Officer and Treasurer -3- EX-99 2 e22222ex_99.txt PRESS RELEASE Exhibit 99 [LOGO] RPC An Oil & Gas Service Company FOR IMMEDIATE RELEASE RPC, INC. REPORTS RECORD 2005 SECOND QUARTER REVENUES AND PROFITS o Revenues for the Second Quarter Increased 19.3 Percent over Prior Year o Diluted EPS for the Second Quarter Increased 58.8 Percent to $0.27 from $0.17 in the Prior Year ATLANTA, July 27, 2005 -- RPC, Inc. (NYSE: RES) announced its unaudited results for the second quarter ended June 30, 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 June 30, 2005, revenues increased 19.3 percent to $101,945,000 compared to $85,426,000 last year. Operating profit for the quarter was $18,404,000, compared to $11,467,000 in the prior year, an increase of 60.5 percent. Net income for the quarter was $11,910,000, or $0.27 diluted earnings per share, compared to $7,474,000, or $0.17 diluted earnings per share last year. Cost of services rendered and goods sold was $55,746,000, or 54.7 percent of revenues, during the second quarter of 2005, compared to $49,189,000, or 57.6 percent of revenues, in the prior year. The increase in these costs was due to the variable nature of many of these expenses, including compensation, materials and supplies, maintenance and repair, and fuel costs. As a percentage of revenues, however, these costs decreased because of higher equipment and personnel utilization, improved pricing, and the leverage of fixed costs over higher revenues. Selling, general and administrative expenses increased by 12.5 percent in the second quarter of 2005 to $18,188,000 from $16,166,000 in the prior year. This increase was principally due to an increase in field administrative personnel consistent with higher activity levels. These costs were 17.8 percent of revenues in 2005 and 18.9 percent last year. The decrease as a percentage of revenues was due to leverage of these costs over higher revenues. Depreciation and amortization were $9,607,000 during the quarter, 11.7 percent higher than last year, due to capital expenditures made during recent quarters. For the six months ended June 30, 2005, revenues increased 17.4 percent to $194,275,000 compared to $165,428,000 last year. Net income increased 64.5 percent to $21,837,000, or $0.50 diluted earnings per share compared to net income of $13,275,000, or $0.31 diluted earnings per share last year. "RPC's second quarter results reflect the continuation of strong activity levels and the results of our continued investment in our business," stated Richard A. Hubbell, RPC's President and Chief Executive Officer. "Our overall domestic revenues increased due to higher activity levels, increased capacity, and increased pricing for our services. The average domestic rig count during the second quarter was 1,339, 15 percent higher than the same period in 2004. Our revenues grew at a higher rate than the rig count because of the factors mentioned above, partially offset by declines in international revenues and the elimination of revenues from our marine liftboat division, which was sold in the fourth quarter of 2004. Our international revenues declined in Kuwait and West Africa, although they increased in Mexico and China. Page 2 2nd Quarter 2005 Press Release "We continue to believe that the near-term prospects for the domestic oilfield are favorable," continued Hubbell. "We invested $21 million in new equipment and maintenance of existing equipment during the quarter. We also invested more than $10 million to re-purchase our common stock during the quarter. In spite of these capital commitments, we continue to maintain a conservative, liquid balance sheet." Page 3 2nd 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, 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 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 increased 21.7 percent for the quarter compared to the prior year, driven by higher activity levels, increased capacity, and pricing increases. Support Services revenues increased by 15.5 percent during the quarter compared to the prior year. This increase was due to higher activity levels and increased capacity resulting from continued investment in the rental tools service line, partially offset by the elimination of revenues from our marine liftboats, which were sold during the fourth quarter of 2004. There were no revenues in the other segment during the quarter due to the sale of the non-oilfield business unit that comprised this segment, which occurred during the second quarter of 2004. [GRAPHIC OMITTED] 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. Page 4 2nd Quarter 2005 Press Release 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. Such forward-looking statements include statements regarding the near term prospects for the domestic oilfield and RPC's expected activity and performance in the future. 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. Such risks include the possibility of declines in the price of oil and natural gas, which tend to result in a decrease in drilling activity and therefore a decline in the demand for our services, the actions of the OPEC cartel, the ultimate impact of current and potential political unrest and armed conflict in the oil-producing regions of the world, which could impact drilling activity, adverse weather conditions in oil or gas producing regions, including the Gulf of Mexico, competition in the oil and gas industry, and risks of international 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 filed with the Securities and Exchange Commission for the year ended December 31, 2004. For information contact: BEN M. PALMER Chief Financial Officer 404.321.2140 irdept@rpc.net JIM LANDERS Corporate Finance 404.321.2162 jlanders@rpc.net Page 5 2nd Quarter 2005 Press Release RPC INCORPORATED AND SUBSIDIARIES
- ---------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) - ---------------------------------------------------------------------------------- ----------------------------------- Periods ended June 30, (Unaudited) Second Quarter Six Months - ---------------------------------------------------------------------------------- ----------------------------------- BETTER BETTER 2005 2004 (WORSE) 2005 2004 (WORSE) - ---------------------------------------------------------------------------------- ----------------------------------- REVENUES $ 101,945 $ 85,426 19.3% $ 194,275 $ 165,428 17.4% COSTS AND EXPENSES: Cost of services rendered and goods sold 55,746 49,189 (13.3) 106,157 96,296 (10.2) Selling, general and administrative expenses 18,188 16,166 (12.5) 36,594 31,292 (16.9) Depreciation and amortization 9,607 8,604 (11.7) 18,887 17,140 (10.2) - ---------------------------------------------------------------------------------- ----------------------------------- Operating profit 18,404 11,467 60.5 32,637 20,700 57.7 Interest income (expense), net 78 (33) NM 170 (58) NM Other income, net 978 620 57.7 2,874 769 NM - ---------------------------------------------------------------------------------- ----------------------------------- Income before income taxes 19,460 12,054 61.4 35,681 21,411 66.6 Income tax provision 7,550 4,580 (64.8) 13,844 8,136 (70.2) - ---------------------------------------------------------------------------------- ----------------------------------- NET INCOME $ 11,910 $ 7,474 59.4% $ 21,837 $ 13,275 64.5% ================================================================================== ==================================== EARNINGS PER SHARE Basic $ 0.28 $ 0.18 55.6% $ 0.51 $ 0.31 64.5% ================================== ================================== Diluted $ 0.27 $ 0.17 58.8% $ 0.50 $ 0.31 61.3% ================================== ================================== AVERAGE SHARES OUTSTANDING Basic 42,232 42,450 42,423 42,424 ================== ================== Diluted 43,522 43,218 43,792 43,103 ================== ==================
Page 6 2nd Quarter 2005 Press Release RPC INCORPORATED AND SUBSIDIARIES - -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- At June 30, (Unaudited) (In thousands) - -------------------------------------------------------------------------------- 2005 2004 - -------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 10,610 $ 12,495 Accounts receivable, net 81,926 69,037 Inventories 12,684 9,133 Deferred income taxes 4,497 4,982 Income taxes receivable 577 4,340 Prepaid expenses and other current assets 2,775 2,677 - -------------------------------------------------------------------------------- Total current assets 113,069 102,664 - -------------------------------------------------------------------------------- Property, plant and equipment, net 127,887 114,683 Goodwill and other intangibles, net 24,770 15,942 Other assets 3,242 2,577 - -------------------------------------------------------------------------------- Total assets $ 268,968 $ 235,866 ================================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 26,150 $ 21,746 Accrued payroll and related expenses 10,065 8,524 Accrued insurance expenses 3,271 3,869 Accrued state, local and other taxes 2,222 1,727 Current portion of long-term debt 2,000 700 Other accrued expenses 4,814 493 - -------------------------------------------------------------------------------- Total current liabilities 48,522 37,059 - -------------------------------------------------------------------------------- Accrued insurance expenses 6,932 6,123 Long-term debt -- 4,100 Pension liabilities 11,025 9,614 Deferred income taxes 10,024 15,439 Other long-term liabilities 1,381 1,820 - -------------------------------------------------------------------------------- Total liabilities 77,884 74,155 - -------------------------------------------------------------------------------- Common stock 4,282 4,314 Capital in excess of par value 20,949 27,134 Retained earnings 178,625 140,390 Deferred compensation (6,018) (3,820 Accumulated other comprehensive loss (6,754) (6,307 - -------------------------------------------------------------------------------- Total stockholders' equity 191,084 161,711 - -------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 268,968 $ 235,866 ================================================================================ Certain prior year balances have been reclassified to conform with current year presentation. Page 7 2nd Quarter 2005 Press Release RPC INCORPORATED AND SUBSIDIARIES - -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - -------------------------------------------------------------------------------- Six months ended June 30, (Unaudited) (In thousands) - -------------------------------------------------------------------------------- 2005 2004 - -------------------------------------------------------------------------------- Operating Activities: Net income $ 21,837 $ 13,275 Depreciation, amortization and other non-cash charges 19,547 17,301 Other net changes in operating activities (8,866) (10,948) - -------------------------------------------------------------------------------- Net cash provided by operating activities 32,518 19,628 - -------------------------------------------------------------------------------- Investing Activities: Capital expenditures (34,066) (25,151) Other investing activities (1,711) 108 - -------------------------------------------------------------------------------- Net cash used for investing activities (35,777) (25,043) - -------------------------------------------------------------------------------- Financing Activities: Payment of dividends (3,400) (1,708) Payments on debt (2,800) (1,110) Cash paid for common stock purchased and retired (10,211) (1,922) Proceeds from exercise of stock options 644 348 - -------------------------------------------------------------------------------- Net cash used for financing activities (15,767) (4,392) - -------------------------------------------------------------------------------- Net decrease in cash and cash equivalents (19,026) (9,807) Cash and cash equivalents at beginning of period 29,636 22,302 - -------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 10,610 $ 12,495 ================================================================================ -----END PRIVACY-ENHANCED MESSAGE-----