-----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, RfyGowGctaFRZIIZEDgPpkg+xf/155YAKr6KYqCw8JuJ1tvNmD600g8znASxlvG/ hgtNZztYtHQKYz5U0FOAaA== 0000912057-95-009632.txt : 19951119 0000912057-95-009632.hdr.sgml : 19951119 ACCESSION NUMBER: 0000912057-95-009632 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 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: 95589334 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 SEPTEMBER 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 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 September 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 SEPTEMBER 30, 1995 AND DECEMBER 31, 1994 (In thousands except stock information)
SEPTEMBER 30, December 31, 1995 1994 (UNAUDITED) (Audited) - ------------------------------------------------------------------------------------------------------------ ASSETS Cash and cash equivalents $18,456 $15,038 Marketable securities 5,048 6,885 Accounts receivable, net of allowance for doubtful accounts of $7,947 and $6,300, respectively 20,319 20,577 Inventories, at lower of cost or market 11,438 12,342 Deferred income taxes 7,398 6,811 Prepaid expenses and other current assets 895 1,474 - ------------------------------------------------------------------------------------------------------------ Current assets 63,554 63,127 - ------------------------------------------------------------------------------------------------------------ Equipment and property, net 34,054 28,837 Marketable securities 20,643 19,291 Goodwill, net 8,079 8,098 Deferred income taxes 821 825 Other assets 1,821 2,064 - ------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $128,972 $122,242 ============================================================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $3,794 $5,387 Accrued payroll and related expenses 3,454 3,441 Accrued insurance expenses 5,687 5,227 Accrued state, local and other taxes 2,891 2,567 Federal income taxes payable 231 198 Accrued discounts 502 824 Other accrued expenses 7,607 7,656 - ------------------------------------------------------------------------------------------------------------ Current liabilities 24,166 25,300 - ------------------------------------------------------------------------------------------------------------ Long-term accrued insurance expenses 3,782 3,443 - ------------------------------------------------------------------------------------------------------------ Total liabilities 27,948 28,743 - ------------------------------------------------------------------------------------------------------------ Commitments and contingencies - ------------------------------------------------------------------------------------------------------------ Common stock 1,461 1,461 Capital in excess of par value 34,599 34,228 Earnings retained 65,189 58,296 Common stock in treasury, at cost, 68,723 share and 147,723 shares, respectively (225) (486) - ------------------------------------------------------------------------------------------------------------ Total stockholders' equity 101,024 93,499 - ------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $128,972 $122,242 ============================================================================================================
2 of 9 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994 (In thousands except per share data) (Unaudited)
Three months ended Nine months ended September 30, September 30, -------------------- ----------------------- 1995 1994 1995 1994 - --------------------------------------------------------- ----------------------- REVENUE $35,756 $38,561 $122,552 $115,765 - ---------------------------------------------------------------------------------------- Cost of goods sold 12,162 15,703 50,108 50,298 Operating expenses 19,039 18,970 57,660 52,541 Depreciation and amortization 1,739 1,579 5,054 4,603 Interest income (551) (411) (1,620) (1,048) - ---------------------------------------------------------------------------------------- Income before income taxes 3,367 2,720 11,350 9,371 Income tax provision 1,105 966 3,915 3,327 - ---------------------------------------------------------------------------------------- NET INCOME $2,262 $1,754 $7,435 $6,044 ======================================================================================== EARNINGS PER SHARE $0.15 $0.12 $0.51 $0.42 - ---------------------------------------------------------------------------------------- Average shares outstanding 14,541,331 14,436,531 14,524,258 14,436,312 - ----------------------------------------------------------------------------------------
3 of 9 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994 (In thousands) (Unaudited)
Nine months ended September 30, --------------------------------- 1995 1994 - ------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES $12,818 $ 9,148 - ------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (10,447) (7,282) Proceeds from sale of equipment and property 983 2,413 Sale (purchase) of marketable securities 485 (461) Other (511) 0 - ------------------------------------------------------------------------------------------------- Net cash (used for) investing activities (9,490) (5,330) - ------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Treasury stock issued for benefit plans 90 7 - ------------------------------------------------------------------------------------------------- Net cash provided by financing activities 90 7 - ------------------------------------------------------------------------------------------------- Net increase in cash and cash equivalents 3,418 3,825 Cash and cash equivalents at beginning of period 15,038 13,296 - ------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $18,456 $17,121 =================================================================================================
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 September 30, 1995, the results of operations for the quarter and nine months then ended and the changes in cash flows for the nine 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 nine months ended September 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 SEPTEMBER 30, 1995 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 1994 Revenue for the third quarter ended September 30, 1995 was $35,756,000 compared with $38,561,000 for the quarter ended September 30, 1994 and $44,576,000 for the previous quarter ended June 30, 1995. Revenue for the quarter ended September 30, 1995 decreased $2,805,000 or 7% from the same period one year ago and decreased $8,820,000 or 20% from the quarter ended June 30, 1995. The oil and gas services segment revenue of $20,428,000 increased 8% 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 primarily due to a strong performance by the service lines that are less dependent on drilling activity. Improvements in international revenue also contributed to the favorable results for the quarter. The oil and gas services segment's revenue increased 9% from the quarter ended June 30, 1995. The boat manufacturing segment revenue for the quarter ended September 30, 1995 of $12,805,000 decreased 25% from last year's third quarter of $17,034,000 due to an overall slowdown in the boating industry. The boat manufacturing segment revenue decreased 45% from the quarter ended June 30, 1995 as a result of a normal seasonal decline and the overall slowdown in the boating industry. Boat sales for the remainder 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 September 30, 1995 was $2,262,000 or 15 cents per share versus net income of $1,754,000 or 12 cents per share for the quarter ended September 30, 1994 and net income of $2,606,000 or 18 cents per share for the quarter ended June 30, 1995. The increase in earnings from the same period one year ago was due to the revenue increase for the oil and gas services segment. 6 of 9 RPC, INC. AND SUBSIDIARIES ITEM 2. CONT'D NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 1994 Revenue for the nine months ended September 30, 1995 increased 6% to $122,552,000 compared to $115,765,000 for the nine months ended September 30, 1994. An increase of 12% occurred in the oil and gas services segment and a 1% 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. 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 nine months of 1995. Net income for the nine months ended September 30, 1995 was $7,435,000 or 51 cents per share compared to net income of $6,044,000 or 42 cents per share for the nine months ended September 30, 1994. The 23% 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 September 30, 1995 with current assets of $63,554,000 exceeding current liabilities of $24,166,000 by a ratio of 2.6-to-1. This compares to a current ratio of 2.5-to-1 at December 31, 1994. Capital expenditures during the first nine months of $10,447,000 included approximately $9,998,000 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 September 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: November 8, 1995 Richard A. Hubbell President and Chief Operating Officer /S/ DEBRA G. HERRON ------------------------------------------ Date: November 8, 1995 Debra G. Herron Treasurer and Chief Financial Officer 9 of 9 EX-27 2 EXHIBIT 27
5 1,000 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 18,456 5,048 28,266 7,947 11,438 63,554 34,054 0 128,972 24,166 0 1,461 0 0 99,563 128,972 0 122,552 50,108 107,768 5,054 0 0 11,350 3,915 7,435 0 0 0 7,435 .51 .51
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