8-K 1 e23913_8k.txt 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 26, 2006 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 26, 2006, RPC, Inc. issued a press release entitled "RPC, Inc. Reports 2006 First Quarter Financial Results," that announced the financial results for the first quarter ended March 31, 2006. Item 9.01 Financial Statements and Exhibits. (c) Exhibits. Exhibit 99 - Press Release dated April 26, 2006 -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 26, 2006 /s/ BEN M. PALMER ------------------------------------- Ben M. Palmer Vice President, Chief Financial Officer and Treasurer -3- Three Months Ended March 31 --------------------------- 2006 2005 --------------------------- (in thousands) Revenues: Technical services $ 114,761 $ 77,958 Support services 21,263 14,355 Other 0 17 -------------------------------------------------- --------- --------- Total revenues $ 136,024 $ 92,330 -------------------------------------------------- --------- --------- Operating Profit: Technical services $ 36,239 $ 14,788 Support services 5,191 2,171 Other 0 (165) Corporate expenses (2,945) (2,561) Gain on disposition of assets, net 1,032 626 -------------------------------------------------- --------- --------- Total operating profit $ 39,517 $ 14,859 -------------------------------------------------- --------- --------- Other income, net 261 1,270 Interest income, net 153 92 -------------------------------------------------- --------- --------- Income before income taxes $ 39,931 $ 16,221 ================================================== ========= ========= RPC INCORPORATED AND SUBSIDIARIES -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) -------------------------------------------------------------------------------- Periods ended March 31, (Unaudited) First Quarter -------------------------------------------------------------------------------- % BETTER 2006 2005 (WORSE) -------------------------------------------------------------------------------- REVENUES $136,024 $92,330 47.3% COSTS AND EXPENSES: Cost of services rendered and goods sold 65,751 50,411 (30.4) Selling, general and administrative expenses 21,083 18,406 (14.5) Depreciation and amortization 10,705 9,280 (15.4) Gain on disposition of assets, net (1,032) (626) 64.9 -------------------------------------------------------------------------------- Operating profit 39,517 14,859 165.9 Interest income, net 153 92 66.3 Other income, net 261 1,270 (79.4) -------------------------------------------------------------------------------- Income before income taxes 39,931 16,221 146.2 Income tax provision 15,031 6,294 (138.8) -------------------------------------------------------------------------------- NET INCOME $ 24,900 $ 9,927 150.8% ================================================================================ EARNINGS PER SHARE Basic $ 0.39 $ 0.15 160.0% ================================================ Diluted $ 0.38 $ 0.15 153.3% ================================================ AVERAGE SHARES OUTSTANDING Basic 63,354 63,920 ====================== Diluted 65,831 66,049 ====================== RPC INCORPORATED AND SUBSIDIARIES -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS -------------------------------------------------------------------------------- At March 31, (Unaudited) (In thousands) -------------------------------------------------------------------------------- 2006 2005 -------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 7,386 $ 22,272 Accounts receivable, net 116,165 79,805 Inventories 15,090 11,565 Deferred income taxes 4,273 5,151 Income taxes receivable -- 286 Prepaid expenses and other current assets 3,542 3,462 -------------------------------------------------------------------------------- Total current assets 146,456 122,541 -------------------------------------------------------------------------------- Property, plant and equipment, net 156,159 117,941 Goodwill 24,093 20,468 Other assets 4,254 3,162 -------------------------------------------------------------------------------- Total assets $ 330,962 $ 264,112 ================================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 31,066 $ 23,804 Accrued payroll and related expenses 9,872 7,645 Accrued insurance expenses 3,606 3,844 Accrued state, local and other taxes 1,781 1,581 Income taxes payable 2,393 -- Current portion of long-term debt -- 2,000 Other accrued expenses 503 5,086 -------------------------------------------------------------------------------- Total current liabilities 49,221 43,960 -------------------------------------------------------------------------------- Accrued insurance expenses 6,479 6,294 Pension liabilities 11,798 10,527 Deferred income taxes 7,777 11,467 Other long-term liabilities 789 1,372 -------------------------------------------------------------------------------- Total liabilities 76,064 73,620 -------------------------------------------------------------------------------- Common stock 6,480 6,521 Capital in excess of par value 14,584 28,668 Retained earnings 241,637 168,411 Deferred compensation -- (6,335) Accumulated other comprehensive loss (7,803) (6,773) -------------------------------------------------------------------------------- Total stockholders' equity 254,898 190,492 -------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 330,962 $ 264,112 ================================================================================ Certain prior year balances have been reclassified to conform with current year presentation. RPC INCORPORATED AND SUBSIDIARIES -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS -------------------------------------------------------------------------------- Three months ended March 31, (Unaudited) (In thousands) -------------------------------------------------------------------------------- 2006 2005 -------------------------------------------------------------------------------- Operating Activities: Net income $ 24,900 $ 9,927 Depreciation, amortization and other non-cash charges 11,405 9,621 Other net changes in operating activities (14,020) (10,428) -------------------------------------------------------------------------------- Net cash provided by operating activities 22,285 9,120 -------------------------------------------------------------------------------- Investing Activities: Capital expenditures (25,970) (13,318) Other investing activities 1,357 947 -------------------------------------------------------------------------------- Net cash used for investing activities (24,613) (12,371) -------------------------------------------------------------------------------- Financing Activities: Payment of dividends (3,170) (1,704) Payments on debt -- (2,800) Cash paid for common stock purchased and retired (1,110) (73) Other financing activities 1,185 464 -------------------------------------------------------------------------------- Net cash used for financing activities (3,095) (4,113) -------------------------------------------------------------------------------- Net (decrease) in cash and cash equivalents (5,423) (7,364) Cash and cash equivalents at beginning of period 12,809 29,636 -------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 7,386 $ 22,272 ================================================================================