-----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, Came6ztB5f2VguU9brmW/e4K6fJmsP+cvx27mRFANYtgP/HMMnjfAFlK+i0DOIUs crRGPHZvPynWy/bW3+Y7uw== 0001047469-98-020448.txt : 19980518 0001047469-98-020448.hdr.sgml : 19980518 ACCESSION NUMBER: 0001047469-98-020448 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 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: 98622321 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 March 31, 1998 [ ] 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 March 31, 1998, RPC, Inc. had 29,619,063 shares of common stock outstanding (excluding 258,092 treasury shares). 1 of 10 RPC, INC. AND SUBSIDIARIES PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 1998, AND DECEMBER 31, 1997 (In thousands except share information)
March 31, December 31, 1998 1997 (Unaudited) (Audited) - ----------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $10,490 $17,409 Marketable securities 2,714 11,276 Accounts receivable, net of allowance for doubtful accounts of $6,999 and $6,967, respectively 34,493 32,153 Inventories, at lower of cost or market 15,938 16,025 Deferred income taxes 9,035 8,626 Prepaid expenses and other current assets 2,892 2,390 - ----------------------------------------------------------------------------------------------------------------------------- Current assets 75,562 87,879 - ----------------------------------------------------------------------------------------------------------------------------- Equipment and property, net 57,849 55,673 Marketable securities 46,935 29,499 Intangibles, net 8,067 8,289 Other assets 1,098 1,178 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Total assets $189,511 $182,518 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $8,493 $7,437 Accrued payroll and related expenses 5,316 5,826 Accrued insurance expenses 7,253 7,422 Accrued state, local and other taxes 4,425 4,211 Federal income taxes payable 3,741 1,061 Accrued discounts 1,279 826 Current portion of long-term debt 587 857 Other accrued expenses 10,244 9,844 - ----------------------------------------------------------------------------------------------------------------------------- Current liabilities 41,338 37,484 - ----------------------------------------------------------------------------------------------------------------------------- Deferred income taxes 436 309 Long-term accrued insurance expenses 3,833 4,034 Long-term debt 1,014 1,315 - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 46,621 43,142 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Commitments and contingencies - ----------------------------------------------------------------------------------------------------------------------------- Common stock 2,982 2,978 Capital in excess of par value 35,580 35,211 Earnings retained 105,963 101,805 Common stock in treasury, at cost, 258,092 shares and 169,392 shares, respectively (1,635) (618) - ----------------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 142,890 139,376 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $189,511 $182,518 - ----------------------------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements. 2 of 10 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1998, AND 1997 (In thousands except share and per share data) (Unaudited)
Three months ended March 31, ----------------------------------- 1998 1997 Revenue $66,940 $58,203 - --------------------------------------------------------------------------------------------------------- Cost of goods sold 23,121 22,414 Operating expenses 31,570 26,946 Depreciation and amortization 3,620 2,778 Interest income (489) (508) - --------------------------------------------------------------------------------------------------------- Income before income taxes 9,118 6,573 Income tax provision 3,464 2,266 - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Net income $5,654 $4,307 - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Earnings per share Basic $0.19 $0.15 - --------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------- Diluted $0.19 $0.15 - --------------------------------------------------------------------------------------------------------- Average shares outstanding Basic 29,230,201 29,089,688 - --------------------------------------------------------------------------------------------------------- Diluted 29,629,711 29,327,600 - ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements. 3 of 10 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1998, and 1997 (In thousands) (Unaudited)
Three months ended March 31, ---------------------------------------- 1998 1997 - --------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES $9,671 $6,677 - --------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (5,775) (5,240) Proceeds from sale of equipment and property 594 683 Net (purchase) sale of marketable securities (8,874) 412 Other (571) (120) - --------------------------------------------------------------------------------------------------------- Net cash used for investing activities (14,626) (4,265) - --------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Dividend distributions (1,037) 0 Purchase of treasury stock (968) 0 Proceeds from exercise of stock options 41 133 - --------------------------------------------------------------------------------------------------------- Net cash (used for) provided by financing activities (1,964) 133 - --------------------------------------------------------------------------------------------------------- Net (decrease) increase in cash and cash equivalents (6,919) 2,545 Cash and cash equivalents at beginning of period 17,409 13,124 - --------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $10,490 $15,669 - --------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements. 4 of 10 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, 1997. 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 March 31, 1998, the results of operations and the cash flows for the three months then ended. 2. Basic and diluted earnings per share are computed by dividing net income by the respective weighted average number of shares outstanding during the respective periods. 3. The results of operations for the quarter ended March 31, 1998, are not necessarily indicative of the results to be expected for the full year. 4. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS No. 130), which establishes standards for displaying comprehensive income and its components in a full set of general purpose financial statements. SFAS No. 130 is effective for fiscal years beginning after December 15, 1997. The adoption of SFAS No. 130 does not have a material impact. 5. Also, in June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information" (SFAS No. 131), which establishes standards for reporting information about operating segments in annual financial statements and requires reporting selected information about operating segments in interim financial reports issued to stockholders. SFAS No. 131 is effective for fiscal years beginning after December 15, 1997. The adoption of SFAS No. 131 is not expected to have a material impact. 5 of 10 RPC, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONT'D Certain information with respect to RPC's business segments is set forth in the following table:
----------------------------------------------------------------------------------- March 31, 1998 1997 ----------------------------------------------------------------------------------- (in thousands) Revenue: Oil and gas services $ 35,591 $ 29,974 Powerboat manufacturing 26,487 24,935 Other segments 4,582 3,294 ----------------------------------------------------------------------------------- Total revenue $ 68,940 $ 58,203 ----------------------------------------------------------------------------------- Operating income (loss): Oil and gas services $ 6,254 $ 4,688 Powerboat manufacturing 3,610 2,699 Other segments (148) (545) ----------------------------------------------------------------------------------- Total operating income 9,716 6,842 ----------------------------------------------------------------------------------- Corporate expenses, net (598) (269) ----------------------------------------------------------------------------------- Income before income taxes $ 9,118 $ 6,573 ----------------------------------------------------------------------------------- -----------------------------------------------------------------------------------
The identifiable assets for the powerboat manufacturing segment increased by $3,738,000 from $25,076,000 at December 31, 1997 to $28,814,000 at March 31, 1998. The identifiable assets for the oil and gas segment increased by $383,000 from $86,578,000 at December 31, 1997 to $86,961,000 at March 31, 1998. 6 of 10 RPC, INC. AND SUBSIDIARIES ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION THREE MONTHS ENDED MARCH 31, 1998, COMPARED TO THREE MONTHS ENDED MARCH 31, 1997 Revenue for the first quarter ended March 31, 1998, was $66,940,000 compared with $58,203,000 for the quarter ended March 31, 1997. Revenue for the quarter ended March 31, 1998, increased $8,737,000 or 15% from the same period one year. The oil and gas services segment revenue of $35,891,000 increased 20% from last year's first quarter primarily due to a 14% increase in the average natural gas rig count and a 27% increase in natural gas prices. 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 powerboat manufacturing segment revenue for the quarter ended March 31, 1998, of $26,487,000 increased 6% from last year's first quarter of $24,935,000 as the result of an increase in Chaparral's market share. Net income for the quarter ended March 31, 1998, was $5,654,000 or $0.19 diluted earnings per share versus net income of $4,307,000 or $0.15 diluted earnings per share for the quarter ended March 31, 1997. Basic earnings per share was the same as diluted earnings per share at $0.19 cents per share versus $0.15 cents per share last year. 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. 7 of 10 RPC, INC. AND SUBSIDIARIES ITEM 2. CONT'D FINANCIAL CONDITION The Company's current ratio remained strong as of March 31, 1998, with current assets of $75,562,000 exceeding current liabilities of $41,338,000 by a ratio of 1.8-to-1. This compares to a current ratio of 2.3-to-1 at December 31, 1997. Capital expenditures during the first three months of 1998 totaling $5,775,000 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. Management's discussion and analysis of results of operations and financial condition include "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included or incorporated by reference which address activities, events or developments which the Company expects or anticipates will or may occur in the future, including statements regarding trends in the boating industry, and anticipated trends and similar expressions concerning matters that are not historical facts, are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the Company's expectations, including economic conditions, conditions in the industries in which the Company operates, competition, and other factors, many of which are beyond the control of the Company. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business or operations. The Company assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise. 8 of 10 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 March 31, 1998. 9 of 10 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: May 13, 1997 Richard A. Hubbell President and Chief Operating Officer /s/ Ben M. Palmer ------------------------------------------- Date: May 13, 1997 Ben M. Palmer Treasurer and Chief Financial Officer 10 of 10 EX-27 2 EXHIBIT 27
5 1,000 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 10,490 2,714 41,492 6,999 15,938 75,562 210,751 152,902 189,511 41,338 1,014 0 0 2,982 139,908 189,511 0 66,940 23,121 54,691 3,620 0 0 9,118 3,464 5,654 0 0 0 5,654 0.19 0.19
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