-----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, Htw5TdiF76aZlHzXagoopgGrVHCHNG+5t6XlaQohfprdAT8+WP7jBAbMppHNvwcK O2oYCcNYxmDnijzg1RyuSA== 0001047469-97-002790.txt : 19971106 0001047469-97-002790.hdr.sgml : 19971106 ACCESSION NUMBER: 0001047469-97-002790 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971105 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: SEC FILE NUMBER: 001-08726 FILM NUMBER: 97708283 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, 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 September 30, 1997, RPC, Inc. had 14,840,591 shares of common stock outstanding (excluding 80,999 treasury shares). 1 of 9 RPC, INC. AND SUBSIDIARIES PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 1997, AND DECEMBER 31, 1996 (In thousands except share information)
SEPTEMBER 30, DECEMBER 31, 1997 1996 (UNAUDITED) (AUDITED) ------------- ------------ ASSETS Cash and cash equivalents........................................................... $ 15,504 $ 13,124 Marketable securities............................................................... 10,831 8,149 Accounts receivable, net of allowance for doubtful accounts of $6,831 and $7,058, respectively...................................................................... 34,328 24,156 Inventories, at lower of cost or market............................................. 15,110 15,427 Deferred income taxes............................................................... 7,520 7,623 Prepaid expenses and other current assets........................................... 472 1,663 ------------- ------------ Current assets...................................................................... 83,765 70,142 ------------- ------------ Equipment and property, net......................................................... 55,615 47,791 Marketable securities............................................................... 27,036 25,071 Intangible assets, net.............................................................. 8,511 8,105 Deferred income taxes............................................................... -- 86 Other assets........................................................................ 1,157 1,605 ------------- ------------ TOTAL ASSETS........................................................................ $ 176,084 $ 152,800 ------------- ------------ ------------- ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable.................................................................... $ 8,559 $ 6,756 Accrued payroll and related expenses................................................ 5,027 4,541 Accrued insurance expenses.......................................................... 7,167 6,679 Accrued state, local and other taxes................................................ 4,297 3,211 Federal income taxes payable........................................................ -- 88 Accrued discounts................................................................... 589 786 Current portion of long-term debt................................................... 847 -- Other accrued expenses.............................................................. 10,424 8,889 ------------- ------------ Current liabilities................................................................. 36,910 30,950 ------------- ------------ Long-term accrued insurance expenses................................................ 4,545 3,551 Long-term debt...................................................................... 1,413 500 ------------- ------------ Total liabilities................................................................... 42,868 35,001 ------------- ------------ Commitments and contingencies ------------- ------------ Common stock........................................................................ 1,484 1,471 Capital in excess of par value...................................................... 36,388 35,176 Earnings retained................................................................... 95,862 81,555 Common stock in treasury, at cost, 80,999 shares and 74,953 shares, respectively.... (518) (403) ------------- ------------ Total stockholders' equity.......................................................... 133,216 117,799 ------------- ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.......................................... $ 176,084 $ 152,800 ------------- ------------ ------------- ------------
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RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS AND THE NINE MONTHS ENDED SEPTEMBER 30, 1997, AND 1996 (In thousands except share and per share data) (Unaudited) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------------- -------------------------- 1997 1996 1997 1996 ------------ ------------ ------------ ------------ REVENUE.................................................. $ 57,857 $ 44,942 $ 183,092 $ 146,863 ------------ ------------ ------------ ------------ Cost of goods sold....................................... 17,191 16,037 64,574 59,124 Operating expenses....................................... 29,539 22,674 86,985 68,062 Depreciation and amortization............................ 3,512 2,338 9,408 6,620 Interest income.......................................... (645) (479) (1,735) (1,331) ------------ ------------ ------------ ------------ Income before income taxes............................... 8,260 4,372 23,860 14,388 Income tax provision..................................... 2,850 1,559 8,232 4,964 ------------ ------------ ------------ ------------ NET INCOME............................................... $ 5,410 $ 2,813 $ 15,628 $ 9,424 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ EARNINGS PER SHARE....................................... $ 0.36 $ 0.19 $ 1.06 $ 0.65 ------------ ------------ ------------ ------------ Average shares outstanding............................... 14,882,877 14,569,786 14,775,954 14,560,662 ------------ ------------ ------------ ------------
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RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997, and 1996 (In thousands) (Unaudited) NINE MONTHS ENDED SEPTEMBER 30, -------------------- 1997 1996 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES........................................................ $ 21,774 $ 16,789 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures........................................................................ (16,904) (16,236) Proceeds from sale of equipment and property................................................ 1,932 1,434 Net (purchase) sale of marketable securities................................................ (4,647) (6,188) Other....................................................................................... 712 (500) --------- --------- Net cash (used for) investing activities.................................................... (18,907) (21,490) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Dividend distributions...................................................................... (736) -- Proceeds from exercise of stock options..................................................... 249 32 --------- --------- Net cash provided by financing activities................................................... (487) 32 --------- --------- Net increase (decrease) in cash and cash equivalents........................................ 2,380 (4,669) Cash and cash equivalents at beginning of period............................................ 13,124 18,126 --------- --------- Cash and cash equivalents at end of period.................................................. $ 15,504 $ 13,457 --------- --------- --------- ---------
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, 1996. 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, 1997, 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, 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 SEPTEMBER 30, 1997, COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 1996 Revenue for the third quarter ended September 30, 1997, was $57,857,000 compared with $44,942,000 for the quarter ended September 30, 1996, and $67,032,000 for the previous quarter ended June 30, 1997. Revenue for the quarter ended September 30, 1997, increased $12,915,000 or 29% from the same period one year ago and decreased $9,175,000 or 14% from the quarter ended June 30, 1997. The oil and gas services segment revenue of $35,512,000 increased 42% from last year's third quarter primarily due to a 20% increase in the average natural gas rig count and a 23% increase in the average U.S. rig count from September 30, 1996. This increase is attributable 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 2% from the quarter ended June 30, 1997. The powerboat manufacturing segment revenue for the quarter ended September 30, 1997, of $19,136,000 increased 13% from last year's third quarter of $16,961,000 as the result, we believe, of an increase in Chaparral's market share. The powerboat manufacturing segment revenue decreased 34% from the quarter ended June 30, 1997, as a result of the normal seasonal decline. Net income for the quarter ended September 30, 1997, was $5,410,000 or $0.36 per share versus net income of $2,813,000 or $0.19 per share for the quarter ended September 30, 1996, and net income of $5,912,000 or $0.41 per share for the quarter ended June 30, 1997. 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 powerboat manufacturing segments. 6 of 9 RPC, INC. AND SUBSIDIARIES ITEM 2. CONT'D NINE MONTHS ENDED SEPTEMBER 30, 1997, COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 1996 Revenue for the nine months ended September 30, 1996, increased 25% to $183,092,000 compared to $146,863,000 for the nine months ended September 30, 1996. An increase of 40% occurred in the oil and gas services segment and an 11% increase occurred in the powerboat 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. The expansion of international operations has also 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 nine months ended September 30, 1997, was $15,628,000 or $1.06 per share compared to net income of $9,424,000 or $0.65 per share for the nine months ended September 30, 1996. The 66% increase in earnings from the same period one year ago was due to the revenue increases and improved profit margins for both the oil and gas services and the powerboat manufacturing segments. FINANCIAL CONDITION The Company's current ratio remained strong as of September 30, 1997, with current assets of $83,765,000 exceeding current liabilities of $36,910,000 by a ratio of 2.3-to-1. This compares to a current ratio of 2.3-to-1 at December 31, 1996. Capital expenditures during the first nine months of 1996 totaling $16,904,000 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. The Company's Board of Directors declared a split of its common stock on October 28, 1997 to be effective on December 10, 1997 of one share of common stock for each share held of record at the close of business November 10, 1997. The two-for-one stock split is being made at this time to not only broaden the market for the stock but also due to the Company's continued strong financial performance. 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, 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: November 3, 1997 Richard A. Hubbell President and Chief Operating Officer /s/ Ben M. Palmer ---------------------------------------- Date: November 3, 1997 Ben M. Palmer Treasurer and Chief Financial Officer 9 of 9 EX-27 2 EXHIBIT 27 FDS
5 9-MOS DEC-31-1997 JUL-1-1997 SEP-30-1997 15,504 10,831 41,159 6,831 15,110 83,765 205,235 149,620 176,084 36,910 2,260 0 0 1,484 131,732 176,084 0 183,092 64,574 151,559 9,408 0 0 23,860 8,232 15,628 0 0 0 15,628 1.06 1.06
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