-----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, IhC2nCCOihCM3tD6cg5TPmpjWNXZ0PJPpqkKY8tBFaJHihLqXh2kmZNo3HA3rdoO b+z4Jn6OmeqcwYUyT1jf0Q== 0000912057-97-027575.txt : 19970814 0000912057-97-027575.hdr.sgml : 19970814 ACCESSION NUMBER: 0000912057-97-027575 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970813 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: 97658806 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 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, 1997 / / 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) 321-2140 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, 1997, RPC, Inc. had 14,703,438 shares of common stock outstanding (excluding 78,253 treasury shares). 1 of 9 RPC, INC. AND SUBSIDIARIES PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 1997, AND DECEMBER 31, 1996 (In thousands except share information)
June 30, December 31, 1997 1996 ----------- ------------ (Unaudited) (Audited) ASSETS Cash and cash equivalents............................................................. $ 11,432 $ 13,124 Marketable securities................................................................. 6,728 8,149 Accounts receivable, net of allowance for doubtful accounts of $6,864 and $7,058, respectively........................................................................ 33,741 24,156 Inventories, at lower of cost or market............................................... 14,494 15,427 Deferred income taxes................................................................. 7,440 7,623 Prepaid expenses and other current assets............................................. 1,337 1,663 ----------- ------------ Current assets........................................................................ 75,172 70,142 ----------- ------------ Equipment and property, net........................................................... 53,773 47,791 Marketable securities................................................................. 30,776 25,071 Goodwill, net......................................................................... 8,733 8,105 Deferred income taxes................................................................. -- 86 Other assets.......................................................................... 1,168 1,605 ----------- ------------ Total assets.......................................................................... $ 169,622 $ 152,800 ----------- ------------ ----------- ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable...................................................................... $ 7,632 $ 6,756 Accrued payroll and related expenses.................................................. 4,583 4,541 Accrued insurance expenses............................................................ 6,435 6,679 Accrued state, local and other taxes.................................................. 3,633 3,211 Federal income taxes payable.......................................................... 176 88 Accrued discounts..................................................................... 1,333 786 Current portion of long-term debt..................................................... 1,159 -- Other accrued expenses................................................................ 10,451 8,889 ----------- ------------ Current liabilities................................................................... 35,402 30,950 ----------- ------------ Long-term accrued insurance expenses.................................................. 4,601 3,551 Long-term debt........................................................................ 1,402 500 ----------- ------------ Total liabilities..................................................................... 41,405 35,001 ----------- ------------ Commitments and contingencies Common stock.......................................................................... 1,478 1,471 Capital in excess of par value........................................................ 35,560 35,176 Earnings retained..................................................................... 91,632 81,555 Common stock in treasury, at cost, 78,253 shares and 74,953 shares, respectively...... (453) (403) ----------- ------------ Total stockholders' equity............................................................ 128,217 117,799 ----------- ------------ Total liabilities and stockholders' equity............................................ $ 169,622 $ 152,800 ----------- ------------ ----------- ------------
2 of 9 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 1997, AND 1996 (In thousands except share and per share data) (Unaudited)
Three Months Ended June 30, Six Months Ended June 30, --------------------------- -------------------------- 1997 1996 1997 1996 ------------ ------------ ------------ ------------ Revenue.................................................. $ 67,032 $ 52,204 $ 125,235 $ 101,921 ------------ ------------ ------------ ------------ Cost of goods sold....................................... 24,969 22,257 47,383 43,087 Operating expenses....................................... 30,499 23,320 57,445 45,388 Depreciation and amortization............................ 3,118 2,250 5,896 4,282 Interest income.......................................... (582) (414) (1,090) (852) ------------ ------------ ------------ ------------ Income before income taxes............................... 9,028 4,791 15,601 10,016 Income tax provision..................................... 3,116 1,630 5,382 3,405 ------------ ------------ ------------ ------------ Net income............................................... $ 5,912 $ 3,161 $ 10,219 $ 6,611 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Earnings per share....................................... $ 0.41 $ 0.22 $ 0.70 $ 0.46 ------------ ------------ ------------ ------------ Average shares outstanding............................... 14,574,149 14,567,413 14,577,160 14,556,050 ------------ ------------ ------------ ------------
3 of 9 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1997, and 1996 (In thousands) (Unaudited)
Six Months Ended June 30, ------------------------- 1997 1996 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES.................................................... $ 11,772 $ 8,130 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures.................................................................... (11,816) (10,722) Proceeds from sale of equipment and property............................................ 1,391 1,009 Net (purchase) sale of marketable securities............................................ (4,284) 2,763 Other................................................................................... 1,093 (457) --------- --------- Net cash (used for) investing activities................................................ (13,616) (7,407) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of stock options................................................. 152 4 --------- --------- Net cash provided by financing activities............................................... 152 4 --------- --------- Net (decrease) increase in cash and cash equivalents.................................... (1,692) 727 Cash and cash equivalents at beginning of period........................................ 13,124 18,126 --------- --------- Cash and cash equivalents at end of period.............................................. $ 11,432 $ 18,853 --------- --------- --------- ---------
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, 1996. 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, 1997, the results of operations for the quarter and the six months ended June 30, 1997 and 1996, and the cash flows for the six months ended June 30, 1997 and 1996. 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 ended June 30, 1997 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, 1997 COMPARED TO THREE MONTHS ENDED JUNE 30, 1996 Revenue for the first quarter ended June 30, 1997 was $67,032,000 compared with $52,204,000 for the quarter ended June 30, 1996 and $58,203,000 for the previous quarter ended March 31, 1997. Revenue for the quarter ended June 30, 1997 increased $14,828,000 or 28% from the same period one year ago and increased $8,829,000 or 15% from the quarter ended March 31, 1997. The oil and gas services segment revenue of $34,898,000 increased 47% from last year's second quarter primarily due to a higher level of oil and gas exploration and production activities by the major and independent oil companies, and expansion of international operations. The oil and gas services segment revenue increased 16% from the quarter ended March 31, 1997. The powerboat manufacturing segment revenue for the quarter ended June 30, 1997 of $28,846,000 increased 13% from last year's second quarter of $25,519,000 as the result, we believe, of an increase in Chaparral's market share. The powerboat manufacturing segment revenue increased 16% from the quarter ended March 31, 1997 as a result of a normal seasonal upturn. Net income for the quarter ended June 30, 1997 was $5,912,000 or 41 cents per share compared to net income of $3,161,000 or 22 cents per share for the quarter ended June 30, 1996 and net income of $4,307,000 or 29 cents per share for the quarter ended March 31, 1997. The increase in earnings from the same period one year ago was due to the revenue increase for both business segments as well as improved margins for the oil and gas services segment. 6 of 9 RPC, INC. AND SUBSIDIARIES ITEM 2. CONT'D SIX MONTHS ENDED JUNE 30, 1997 COMPARED TO SIX MONTHS ENDED JUNE 30, 1996 Revenue for the six months ended June 30, 1997 increased 23% or $23,314,000 to $125,235,000 compared with $101,921,000 for the six months ended June 30, 1996. An increase of 40% occurred in the oil and gas services segment and an increase of 10% occurred in the powerboat manufacturing segment The oil and gas services segment revenue increased despite recent declines in oil prices. A higher level of oil and gas exploration and production activities by the major and independent oil companies and expansion of international operations contributed to the increase. The powerboat manufacturing revenue increased despite an overall decline in sales in the powerboat market. We believe this increase is the result of increased market share. Net income for the six months ended June 30, 1997 was $10,219,000 or 70 cents per share compared to net income of $6,611,000 or 46 cents per share for the six months ended June 30, 1996. The increase in earnings from the same period one year ago was due to the revenue increase for both business segments as well as improved margins for the oil and gas services segment. FINANCIAL CONDITION The Registrant's current ratio remained strong as of June 30, 1997 with current assets of $75,172,000 exceeding current liabilities of $35,402,000 by a ratio of 2.1-to-1. This compares to a current ratio of 2.4-to-1 at March 31, 1997. Capital expenditures during the first six months of $11,816,000 were primarily for revenue-producing equipment 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, 1997. 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 11, 1997 Richard A. Hubbell President and Chief Operating Officer /s/ Ben M. Palmer ------------------------- Date: August 11, 1997 Ben M. Palmer Treasurer and Chief Financial Officer 9 of 9 EX-27 2 EXHIBIT 27
5 1,000 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 11,432 6,728 40,605 6,864 14,494 75,172 201,331 147,558 169,622 35,402 1,402 0 0 1,478 126,739 169,622 0 125,235 47,383 104,828 5,896 0 0 15,601 5,382 10,219 0 0 0 10,219 0.70 0.70
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