-----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, FncN16bloN6lOzTtx00gdhmDvpzJJYJiFi6Hmv4LtsH/1NgkGMPnC8bayf/uOpPi t6b6hkbHBHJIcmdTS55qtw== 0001047469-98-030948.txt : 19980814 0001047469-98-030948.hdr.sgml : 19980814 ACCESSION NUMBER: 0001047469-98-030948 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980813 SROS: AMEX 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: 98684720 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 June 30, 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 June 30, 1998, RPC, Inc. had 29,411,472 shares of common stock issued and outstanding. 1 of 10 RPC, INC. AND SUBSIDIARIES PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 1998, AND DECEMBER 31, 1997 (In thousands except share information)
June 30, December 31, 1998 1997 (Unaudited) (Audited) --------- --------- ASSETS Cash and cash equivalents $ 15,076 $ 17,409 Marketable securities 6,134 11,276 Accounts receivable, net of allowance for doubtful accounts of $7,492 and $6,967, respectively 33,999 32,153 Inventories, at lower of cost or market 17,735 16,025 Deferred income taxes 9,070 8,626 Prepaid expenses and other current assets 2,071 2,390 --------- --------- Current assets 84,085 87,879 --------- --------- Equipment and property, net 61,784 55,673 Marketable securities 35,911 29,499 Intangibles, net 7,847 8,289 Other assets 1,075 1,178 --------- --------- Total assets $ 190,702 $ 182,518 --------- --------- --------- --------- LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 10,773 $ 7,437 Accrued payroll and related expenses 4,874 5,826 Accrued insurance expenses 6,324 7,422 Accrued state, local and other taxes 4,283 4,211 Federal income taxes payable 0 1,061 Accrued discounts 1,787 826 Current portion of long-term debt 578 857 Other accrued expenses 10,767 9,844 --------- --------- Current liabilities 39,386 37,484 --------- --------- Deferred income taxes 285 309 Long-term accrued insurance expenses 3,617 4,034 Long-term debt 911 1,315 --------- --------- Total liabilities 44,199 43,142 --------- --------- Commitments and contingencies --------- --------- Common stock 2,941 2,978 Capital in excess of par value 31,972 35,211 Earnings retained 111,590 101,805 Common stock in treasury, at cost, 0 shares and 169,392 shares, respectively 0 (618) Total stockholders' equity 146,503 139,376 --------- --------- Total liabilities and stockholders' equity $ 190,702 $ 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 AND SIX MONTHS ENDED JUNE 30, 1998, AND 1997 (In thousands except per share data) (Unaudited)
Three months ended June 30, Six months ended June 30, --------------------------- ------------------------- 1998 1997 1998 1997 --------------------------- ------------------------- Revenue $ 66,375 $ 67,032 $ 133,315 $ 125,235 --------- --------- --------- --------- Cost of goods sold 24,710 24,969 47,831 47,383 Operating expenses 28,136 30,499 59,706 57,445 Depreciation and amortization 3,745 3,118 7,365 5,896 Interest income (554) (582) (1,043) (1,090) --------- --------- --------- --------- Income before income taxes 10,338 9,028 19,456 15,601 Income tax provision 3,928 3,116 7,392 5,382 --------- --------- --------- --------- Net income $ 6,410 $ 5,912 $ 12,064 $ 10,219 --------- --------- --------- --------- --------- --------- --------- --------- Earnings per share Basic $ 0.22 $ 0.20 $ 0.41 $ 0.35 --------- --------- --------- --------- Diluted $ 0.22 $ 0.20 $ 0.41 $ 0.35 --------- --------- --------- --------- Average shares outstanding Basic 29,269 29,076 29,243 29,142 --------- --------- --------- --------- Diluted 29,685 29,443 29,649 29,599 --------- --------- --------- ---------
The accompanying notes are an integral part of these statements. 3 of 10 RPC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1998, and 1997 (In thousands) (Unaudited)
Six months ended June 30, ----------------------- 1998 1997 ----------------------- CASH FLOWS FROM OPERATING ACTIVITIES $ 15,598 $ 11,772 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (14,176) (11,816) Proceeds from sale of equipment and property 2,350 1,391 Net (purchase) sale of marketable securities (1,270) (4,284) Other 0 1,093 -------- -------- Net cash used for investing activities (13,096) (13,616) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Dividend distributions (2,072) 0 Repayment of debt (683) 0 Cash paid for treasury stock (2,135) 0 Proceeds from exercise of stock options 55 152 -------- -------- Net cash (used for) provided by financing activities (4,835) 152 -------- -------- Net (decrease) increase in cash and cash equivalents (2,333) (1,692) Cash and cash equivalents at beginning of period 17,409 13,124 -------- -------- Cash and cash equivalents at end of period $ 15,076 $ 11,432 -------- -------- -------- --------
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 June 30, 1998, the results of operations for the quarter and the six months ended June 30, 1998 and 1997, and the cash flows for the six months ended June 30, 1998 and 1997. 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 June 30, 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. 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. 5 of 10 6. In June, 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS No. 133), which establishes standards for reporting and disclosing information about derivative instruments. SFAS No. 133 is effective for fiscal years beginning after June 15, 1998. The adoption of SFAS No. 133 is not expected to have a material impact. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION THREE MONTHS ENDED JUNE 30, 1998, COMPARED TO THREE MONTHS ENDED JUNE 30, 1997 Revenue for the second quarter ended June 30, 1998, was $66,375,000 compared with $67,032,000 for the quarter ended June 30, 1997, a decrease of $657,000 or 1%. The oil and gas services segment revenue of $33,603,000 decreased 4% from last year's second quarter due, in large part, to decreased foreign activity, primarily in Venezuela, offset by solid increases in domestic activity. In addition, oil prices have decreased 30 percent compared to prior year and the number of working rigs in the United States has decreased approximately 16 percent from the previous year. The powerboat manufacturing segment revenue for the quarter ended June 30, 1998, of $29,056,000 increased 1% from last year's first quarter of $28,846,000 as the result of an increase in Chaparral's market share. Net income for the quarter ended June 30, 1998, was $6,410,000 or $0.22 diluted earnings per share versus net income of $5,912,000 or $0.20 diluted earnings per share for the quarter ended June 30, 1997. Basic earnings per share was the same as diluted earnings per share at $0.22 cents per share versus $0.20 cents per share last year. The increase in earnings from the same period one year ago was due to the improved profit margins for both the oil and gas services and the powerboat manufacturing segments. SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO SIX MONTHS ENDED JUNE 30, 1997 Revenue for the six months ended June 30, 1998 was $133,315,000 compared with $125,235,000 for the six months ended June 30, 1997, an increase of $8,080,000 or 6%. The oil and gas services segment revenue increased 7% and the powerboat manufacturing segment increased 3%. The oil and gas services revenue increased for the six months, despite declines in oil prices and decreased foreign activity, due to the higher level of oil and gas exploration and production activities by the major and independent oil companies. The powerboat manufacturing revenue increased despite an overall decline in sales in the powerboat market. This increase is attributable to Chaparral's increased market share. 6 of 10 RPC, INC. AND SUBSIDIARIES ITEM 2. CONT'D Net income for the six months ended June 30, 1998 was $12,064,000 or $0.41 diluted earnings per share versus net income of $10,219,000 or $0.35 diluted earnings per share for the six months ended June 30, 1997. Basic earnings per share was the same as diluted earnings per share at $0.41 cents per share versus $0.35 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. FINANCIAL CONDITION The Company's current ratio remained strong as of June 30, 1998, with current assets of $84,085,000 exceeding current liabilities of $39,386,000 by a ratio of 2.1-to-1. This compares to a current ratio of 2.3-to-1 at December 31, 1997. Capital expenditures during the first six months of 1998 totaling $14,176,000 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 7 of 10 RPC, INC. AND SUBSIDIARIES ITEM 2. CONT'D 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 June 30, 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: August 13, 1998 Richard A. Hubbell President and Chief Operating Officer /s/ Ben M. Palmer ----------------------------------- Date: August 13, 1998 Ben M. Palmer Treasurer and Chief Financial Officer 10 of 10 EX-27 2 EX-27
5 1,000 3-MOS DEC-31-1998 APR-01-1998 JUN-30-1998 15,076 6,134 41,491 7,492 17,735 84,085 207,992 146,208 190,702 39,386 911 0 0 2,941 143,562 190,702 0 66,375 24,710 52,846 3,745 0 0 10,338 3,928 6,410 0 0 0 6,410 0.22 0.22
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