0000912057-95-006111.txt : 19950810 0000912057-95-006111.hdr.sgml : 19950810 ACCESSION NUMBER: 0000912057-95-006111 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950809 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RPC INC CENTRAL INDEX KEY: 0000742278 STANDARD INDUSTRIAL CLASSIFICATION: SHIP & BOAT BUILDING & REPAIRING [3730] IRS NUMBER: 581550825 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08726 FILM NUMBER: 95559884 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 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q /X/ Quarterly report pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1995 / / Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File No. 1-8726 RPC, INC. DELAWARE 58-1550825 (State of Incorporation) (I.R.S. Employer Identification Number) 2170 Piedmont Road, NE, Atlanta, Georgia 30324 Telephone Number -- (404) 888-2950 FORMERLY RPC ENERGY SERVICES, INC. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- As of June 30, 1995, RPC, Inc. had 14,541,331 shares of common stock outstanding (excluding 68,723 treasury shares). 1 of 9 RPC, INC. AND SUBSIDIARIES PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 1995 AND DECEMBER 31, 1994 (In thousands except stock information)
JUNE 30, December 31, 1995 1994 (UNAUDITED) (Audited) -------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 13,917 $ 15,038 Marketable securities 10,112 6,885 Accounts receivable, net of allowance for doubtful accounts of $7,188 and $6,300, respectively 18,845 20,577 Inventories, at lower of cost or market 10,794 12,342 Deferred income taxes 7,166 6,811 Prepaid expenses and other current assets 1,072 1,474 -------------------------------------------------------------------------------- Current assets 61,906 63,127 -------------------------------------------------------------------------------- Equipment and property, net 31,776 28,837 Marketable securities 22,927 19,291 Goodwill, net 8,229 8,098 Deferred income taxes 915 825 Other assets 2,003 2,064 -------------------------------------------------------------------------------- TOTAL ASSETS $127,756 $122,242 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 4,608 $ 5,387 Accrued payroll and related expenses 3,324 3,441 Accrued insurance expenses 5,413 5,227 Accrued state, local and other taxes 2,642 2,567 Federal income taxes payable 141 198 Accrued discounts 1,376 824 Other accrued expenses 7,802 7,656 -------------------------------------------------------------------------------- Current liabilities 25,306 25,300 -------------------------------------------------------------------------------- Long-term accrued insurance expenses 3,704 3,443 -------------------------------------------------------------------------------- Total liabilities 29,010 28,743 -------------------------------------------------------------------------------- Commitments and contingencies -------------------------------------------------------------------------------- Common stock 1,461 1,461 Capital in excess of par value 34,599 34,228 Earnings retained 62,911 58,296 Common stock in treasury, at cost, 68,723 shares and 147,723 shares, respectively (225) (486) -------------------------------------------------------------------------------- Total stockholders' equity 98,746 93,499 -------------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $127,756 $122,242 -------------------------------------------------------------------------------- --------------------------------------------------------------------------------
2 of 9 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 1995 AND 1994 (In thousands except per share data) (Unaudited)
Three months ended Six months ended June 30, June 30, ------------------------- ------------------------ 1995 1994 1995 1994 ------------------------------------------------------ ------------------------ REVENUE $44,576 $39,871 $86,796 $77,204 --------------------------------------------------------------------------------- Cost of goods sold 20,669 18,234 37,946 34,595 Operating expenses 18,735 17,132 38,621 33,571 Depreciation and amortization 1,698 1,569 3,315 3,024 Interest income (547) (385) (1,069) (637) -------------------------------------------------------------------------------- Income before income taxes 4,021 3,321 7,983 6,651 Income tax provision 1,415 1,179 2,810 2,361 -------------------------------------------------------------------------------- NET INCOME $ 2,606 $ 2,142 $ 5,173 $ 4,290 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- EARNINGS PER SHARE $ 0.18 $ 0.15 $ 0.36 $ 0.30 -------------------------------------------------------------------------------- Average shares outstanding 14,541,331 14,436,531 14,515,580 14,436,201 --------------------------------------------------------------------------------
3 of 9 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994 (In thousands) (Unaudited)
Six months ended June 30, ------------------------------------ 1995 1994 --------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES $11,866 $7,247 --------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (6,397) (2,839) Proceeds from sale of equipment and property 680 2,117 Sale (purchase) of marketable securities (6,863) 3,834 Other (481) 0 --------------------------------------------------------------------------------------------------------- Net cash provided by (used for) investing activities (13,061) 3,112 --------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Treasury stock issued for benefit plans 74 7 --------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 74 7 --------------------------------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents (1,121) 10,366 Cash and cash equivalents at beginning of period 15,038 13,296 --------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $13,917 $23,662 --------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------
4 of 9 RPC, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The consolidated financial statements included herein have been prepared by the Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the financial statements and related notes contained in the Registrant's annual report on Form 10-K for the fiscal year ended December 31, 1994. In the opinion of management, the consolidated financial statements included herein contain all adjustments necessary to present fairly the financial position of the Registrant as of June 30, 1995, the results of operations for the quarter and six months then ended and the changes in cash flows for the six months then ended. 2. Earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. 3. The results of operations for the quarter and the six months ended June 30, 1995 are not necessarily indicative of the results to be expected for the full year. 5 of 9 RPC, INC. AND SUBSIDIARIES ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION THREE MONTHS ENDED JUNE 30, 1995 COMPARED TO THREE MONTHS ENDED JUNE 30, 1994 Revenue for the second quarter ended June 30, 1995 was $44,576,000 compared with $39,871,000 for the quarter ended June 30, 1994 and $42,220,000 for the previous quarter ended March 31, 1995. Revenue for the quarter ended June 30, 1995 increased $4,705,000 or 12% from the same period one year ago and increased $2,356,000 or 6% from the quarter ended March 31, 1995. The oil and gas services segment revenue of $18,779,000 increased 9% from last year's second quarter in spite of a decrease in the average U.S. rig count and the price of natural gas. This was because of a strong performance by the service lines which are less dependent on drilling activity. The oil and gas services segment's revenue decreased 6% from the quarter ended March 31, 1995. The boat manufacturing segment revenue for the quarter ended June 30, 1995 of $23,418,000 increased 16% from last year's second quarter of $20,224,000 due to an increase in average sales price. This was caused by sales of the larger models in all boat lines combined with the impact of price increases. The boat manufacturing segment revenue increased 21% from the quarter ended March 31, 1995 as a result of a normal seasonal upturn. Boat sales for the second half of 1995 are not anticipated to keep pace with the record levels of the first half of the year. Net income for the quarter ended June 30, 1995 was $2,606,000 or 18 cents per share versus net income of $2,142,000 or 15 cents per share for the quarter ended June 30, 1994 and net income of $2,567,000 or 18 cents per share for the quarter ended March 31, 1995. The increase in earnings from the same period one year ago was due to the revenue increases for both the oil and gas services and the boat manufacturing segments, as well as improved margins for both segments. 6 of 9 RPC, INC. AND SUBSIDIARIES ITEM 2. CONT'D SIX MONTHS ENDED JUNE 30, 1995 COMPARED TO SIX MONTHS ENDED JUNE 30, 1994 Revenue for the six months ended June 30, 1995 increased 12% to $86,796,000 compared to $77,204,000 for the six months ended June 30, 1994. An increase of 14% occurred in the oil and gas services segment and a 13% increase occurred in the boat manufacturing segment. In the oil and gas services segment, the revenue improvement was due to the strong performance by the service lines that are less dependent on drilling activity, offset by declining oil drilling revenue. An increase in the average sales price, offset by a decrease in the number of boats sold caused the increase in revenue in the boat manufacturing segment for the first six months of 1995. Net income for the six months ended June 30, 1995 was $5,173,000 or 36 cents per share compared to net income of $4,290,000 or 30 cents per share for the six months ended June 30, 1994. The 21% increase was due to the revenue increases for both the oil and gas services and the boat manufacturing segments, as well as improved margins for both segments. FINANCIAL CONDITION The Registrant's current ratio remained strong as of June 30, 1995 with current assets of $61,906,000 exceeding current liabilities of $25,306,000 by a ratio of 2.4-to-1. This compares to a current ratio of 2.5-to-1 at December 31, 1994. Capital expenditures during the first six months of $6,397,000 included approximately $6,013,000 spent on revenue equipment and vehicles in the oil and gas services segment. The remainder was spent on various purchases for the other business segments. Funding for future capital requirements will be provided from operations. 7 of 9 RPC, INC. AND SUBSIDIARIES PART II. OTHER INFORMATION ITEM 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit 27 - Financial Data Schedule (b) Reports on Form 8-K No reports on Form 8-K were filed or required to be filed during the quarter ended June 30, 1995. 8 of 9 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RPC, INC. /s/ Richard A. Hubbell ---------------------- Date: August 8, 1995 Richard A. Hubbell President and Chief Operating Officer /s/ Debra G. Herron -------------------- Date: August 8, 1995 Debra G. Herron Treasurer and Chief Financial Officer 9 of 9 EX-27 2 EXHIBIT 27
5 1,000 6-MOS DEC-31-1995 JAN-01-1995 JUN-30-1995 13,917 10,112 26,033 7,188 10,794 61,906 31,776 0 127,756 25,306 0 1,461 0 0 97,285 127,756 0 86,796 37,946 76,567 3,315 0 0 7,983 2,810 5,173 0 0 0 5,173 .36 .36