-----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, KqcIQwxZEoIKZ4gnvdXJ7QCuZG4RP409cC9xmTp7IocIHLlDw+sSvkPIAPRxNmjK s5f8NouA0ppTTIg4azZzgQ== 0000912057-96-025008.txt : 19961108 0000912057-96-025008.hdr.sgml : 19961108 ACCESSION NUMBER: 0000912057-96-025008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961107 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: 96656096 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, 1996 / / 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, 1996, RPC, Inc. had 14,574,690 shares of common stock outstanding (excluding 61,841 treasury shares). 1 of 9 RPC, INC. AND SUBSIDIARIES PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 1996, AND DECEMBER 31, 1995 (In thousands except share information) SEPTEMBER 30, December 31, 1996 1995 (UNAUDITED) (Audited) - -------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $13,457 $18,126 Marketable securities 4,865 4,468 Accounts receivable, net of allowance for doubtful accounts of $5,743 and $4,205, respectively 26,155 20,802 Inventories, at lower of cost or market 15,065 14,445 Deferred income taxes 6,953 7,241 Prepaid expenses and other current assets 1,077 1,848 - -------------------------------------------------------------------------------- Current assets 67,572 66,930 - -------------------------------------------------------------------------------- Equipment and property, net 45,683 36,225 Marketable securities 25,071 19,280 Goodwill, net 8,301 7,900 Deferred income taxes 269 714 Other assets 1,404 1,607 - -------------------------------------------------------------------------------- TOTAL ASSETS $148,300 $132,656 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $6,977 $5,035 Accrued payroll and related expenses 4,369 3,899 Accrued insurance expenses 5,563 5,039 Accrued state, local and other taxes 3,422 2,315 Federal income taxes payable 71 38 Accrued discounts 635 635 Other accrued expenses 8,879 8,026 - -------------------------------------------------------------------------------- Current liabilities 29,916 24,987 - -------------------------------------------------------------------------------- Long-term accrued insurance expenses 4,000 3,308 Long-term debt 499 0 - -------------------------------------------------------------------------------- Total liabilities 34,415 28,295 - -------------------------------------------------------------------------------- Commitments and contingencies - -------------------------------------------------------------------------------- Common stock 1,464 1,461 Capital in excess of par value 34,743 34,599 Earnings retained 77,881 68,526 Common stock in treasury, at cost, 61,841 shares and 68,723 shares, respectively (203) (225) - -------------------------------------------------------------------------------- Total stockholders' equity 113,885 104,361 - -------------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $148,300 $132,656 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2 of 9 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1996, AND 1995 (In thousands except share and per share data) (Unaudited) Three months ended Nine months ended September 30, September 30, ---------------------- ---------------------- 1996 1995 1996 1995 - ------------------------------------------------------ ---------------------- REVENUE $44,942 $35,756 $146,863 $122,552 - ------------------------------------------------------------------------------ Cost of goods sold 16,037 12,162 59,124 50,108 Operating expenses 22,674 19,039 68,062 57,660 Depreciation and amortization 2,338 1,739 6,620 5,054 Interest income (479) (551) (1,331) (1,620) - ------------------------------------------------------------------------------ Income before income taxes 4,372 3,367 14,388 11,350 Income tax provision 1,559 1,105 4,964 3,915 - ------------------------------------------------------------------------------ NET INCOME $2,813 $2,262 $9,424 $7,435 - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ EARNINGS PER SHARE $0.19 $0.15 $0.65 $0.51 - ------------------------------------------------------------------------------ Average shares outstanding 14,569,786 14,541,331 14,560,662 14,524,258 - ------------------------------------------------------------------------------ 3 of 9 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996, and 1995 (In thousands) (Unaudited)
Nine months ended September 30, ------------------------------- 1996 1995 - ------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES $16,789 $12,818 - ------------------------------------------------------------------------------------------ CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (16,236) (10,447) Proceeds from sale of equipment and property 1,434 983 Net sale (purchase) of marketable securities (6,188) 485 Other (500) (511) - ------------------------------------------------------------------------------------------ Net cash (used for) investing activities (21,490) (9,490) - ------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of stock options 32 90 - ------------------------------------------------------------------------------------------ Net cash provided by financing activities 32 90 - ------------------------------------------------------------------------------------------ Net increase (decrease) in cash and cash equivalents (4,669) 3,418 Cash and cash equivalents at beginning of period 18,126 15,038 - ------------------------------------------------------------------------------------------ Cash and cash equivalents at end of period $13,457 $18,456 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------
4 of 9 RPC, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The consolidated financial statements included herein have been prepared by the Company, 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 Company's annual report on Form 10-K for the fiscal year ended December 31, 1995. In the opinion of management, the consolidated financial statements included herein contain all adjustments necessary to present fairly the financial position of the Company as of September 30, 1996, the results of operations for the quarter and nine months then ended and the 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, 1996, 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, 1996, COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 1995 Revenue for the third quarter ended September 30, 1996, was $44,942,000 compared with $35,756,000 for the quarter ended September 30, 1995, and $52,204,000 for the previous quarter ended June 30, 1996. Revenue for the quarter ended September 30, 1996, increased $9,186,000 or 26% from the same period one year ago and decreased $7,262,000 or 14% from the quarter ended June 30, 1996. The oil and gas services segment revenue of $25,057,000 increased 23% from last year's third quarter primarily due to a 38% increase in the price of natural gas and rising U.S. demand and reduced storage capacity. This price increase caused a significant increase in natural gas activity, particularly in the Gulf of Mexico, the area where most of our business is centered. The average U.S. rig count has increased 8% from September 30, 1995. The oil and gas services segment revenue increased 6% from the quarter ended June 30, 1996. The boat manufacturing segment revenue for the quarter ended September 30, 1996, of $16,961,000 increased 33% from last year's third quarter of $12,805,000 as the result of growth in the boating industry overall, in addition to an increase in Chaparral's market share. In particular, the Sunesta, Chaparral's deck boat line, has continued to surpass sales expectations. The boat manufacturing segment revenue decreased 34% from the quarter ended June 30, 1996, as a result of normal seasonal decline. Net income for the quarter ended September 30, 1996, was $2,813,000 or 19 cents per share versus net income of $2,262,000 or 15 cents per share for the quarter ended September 30, 1995, and net income of $3,161,000 or 22 cents per share for the quarter ended June 30, 1996. The increase in earnings from the same period one year ago was due to the revenue increase and improved profit margins for both the oil and gas services and the boat manufacturing segments. 6 of 9 RPC, INC. AND SUBSIDIARIES ITEM 2. CONT'D NINE MONTHS ENDED SEPTEMBER 30, 1996, COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 1995 Revenue for the nine months ended September 30, 1996, increased 20% to $146,863,000 compared to $122,552,000 for the nine months ended September 30, 1995. An increase of 21% occurred in the oil and gas services segment and an 18% increase occurred in the boat manufacturing segment. The last nine months have seen an upturn in the oil and gas industry as a whole. In particular, natural gas prices have stabilized to the extent that investors, drillers, and exploration companies have maintained a higher level of activity than in previous years. Rising U.S. demand and reduced storage capacity has allowed natural gas prices and the average U.S. rig count to increase. Growth in the overall boating industry combined with an increase in Chaparral's market share caused the revenue increase in the boat manufacturing segment for the first nine months of 1996. Net income for the nine months ended September 30, 1996, was $9,424,000 or 65 cents per share compared to net income of $7,435,000 or 51 cents per share for the nine months ended September 30, 1995. The 27% increase was due to the revenue increases and improved margins for both the oil and gas services and the boat manufacturing segments. FINANCIAL CONDITION The Company's current ratio remained strong as of September 30, 1996, with current assets of $67,572,000 exceeding current liabilities of $29,916,000 by a ratio of 2.3-to-1. This compares to a current ratio of 2.7-to-1 at December 31, 1995. Capital expenditures during the first nine months of 1996 totaling $16,236,000 included approximately $15,196,000 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, 1996. 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 6, 1996 Richard A. Hubbell President and Chief Operating Officer /s/ Ben M. Palmer ----------------- Date: November 6, 1996 Ben M. Palmer Asst. Treasurer and Chief Financial Officer 9 of 9 EX-27 2 EXHIBIT 27
5 1,000 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 13,457 4,865 31,898 5,743 15,065 67,572 45,683 0 148,300 29,916 499 0 0 1,464 112,421 148,300 0 146,863 59,124 127,186 6,620 0 0 14,388 4,964 9,424 0 0 0 9,424 .65 .65
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