-----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, HFsSQqUrnCLcqOMbHBMUu9mc4IlKvjeEIOmHUSNQy4gf/5VCu4X9QwdYF6yJEmoT ATQQMC4X8iMf2WL3uMjPIw== 0001157523-03-003193.txt : 20030723 0001157523-03-003193.hdr.sgml : 20030723 20030723115839 ACCESSION NUMBER: 0001157523-03-003193 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030723 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RPC INC CENTRAL INDEX KEY: 0000742278 STANDARD INDUSTRIAL CLASSIFICATION: OIL, GAS FIELD SERVICES, NBC [1389] IRS NUMBER: 581550825 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08726 FILM NUMBER: 03797720 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 8-K 1 a4438918.txt RPC, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): July 23, 2003 Commission File No. 1-8726 RPC, INC. (exact name of registrant as specified in its charter) Delaware 58-1550825 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 2170 Piedmont Road, NE, Atlanta, Georgia 30324 (Address of principal executive offices) (zip code) (404) 321-2140 Registrant's telephone number, including area code Item 5. Other Events and Regulation FD Disclosure On July 23, 2003, registrant issued a press release titled "RPC, Inc. Reports 2003 Second Quarter Results," that announces the results of the second quarter of 2003 for RPC, Inc. Item 7. Financial Statements and Exhibits (c) Exhibits. Exhibit 99 - Press release dated July 23, 2003. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RPC, Inc. Date: July 23, 2003 /s/ BEN M. PALMER ------------------------------------- Ben M. Palmer Vice President, Chief Financial Officer and Treasurer EX-99 3 a4438918ex99.txt EXHIBIT 99 PRESS RELEASE Exhibit 99 RPC, Inc. Reports 2003 Second Quarter Results ATLANTA--(BUSINESS WIRE)--July 23, 2003--RPC Incorporated (NYSE: RES): -- Revenues for the Second Quarter Increased 42.2 Percent over Prior Year -- Diluted EPS for the Second Quarter Increased to Earnings of $0.16 from a Loss of $0.07 in the Prior Year RPC Incorporated (NYSE: RES) announced its unaudited results for the second quarter and six months ended June 30, 2003. For the quarter ended June 30, 2003, revenues increased 42.2 percent to $70,864,000 compared to $49,821,000 last year. Net income was $4,705,000, or $0.16 diluted earnings per share, compared to a net loss of $1,953,000 or $0.07 diluted loss per share last year. Cost of services rendered and goods sold were $42,390,000 during the second quarter of 2003, a 21.5 percent increase over the prior year. As a percentage of revenues, these costs decreased to 59.8 percent compared to 70.0 percent in 2002 because of improved pricing in several service lines, as well as higher levels of personnel and equipment utilization. Selling, general and administrative expenses increased by 23.4 percent in the second quarter of 2003 to $13,208,000 compared to $10,704,000 in the prior year. This increase was due to higher personnel and incentive compensation expense consistent with increased activity and profitability, and increased pension expense relating to RPC's pension plan obligation. Depreciation and amortization increased by 7.6 percent to $8,401,000 due to the effect of capital expenditures made during the first six months of 2003. Income before income taxes was $7,589,000 in the second quarter of 2003, compared to a loss before income taxes of $3,151,000 in the prior year. This improvement resulted from the increases in revenues and non-operating income, partially offset by the increases in operating expenses and depreciation and amortization. For the six months ended June 30, 2003, revenues increased 30.8 percent to $131,564,000 compared to $100,587,000 last year. Net income was $5,010,000, or $0.17 diluted earnings per share compared to a net loss of $3,120,000, or $0.11 diluted per share last year. "RPC's second quarter results continued the upturn that began in the first quarter of 2003," stated Richard A. Hubbell, RPC's President and Chief Executive Officer. "The average domestic rig count during the second quarter was 1,028, 27.2 percent higher than the same period in 2002. We are pleased that RPC's quarterly revenue growth exceeded the domestic rig count growth rate. However, the U.S. land rig count, which we believe is a better indicator of our customers' activity levels, grew by 31.5 percent, from 695 last year to 914 this year. Also, the average natural gas price was $5.59 this quarter, 70 percent higher than the second quarter of last year, and we believe that our activity levels are affected more by natural gas prices than by the price of oil. Hubbell continued, "Our revenue increases were driven primarily by higher activity levels in most of our service lines, but also by slightly increased pricing in several of our service lines. Although these developments are encouraging, the pricing in our largest service lines remains low by historical measures during periods of favorable industry conditions. We continue to look for strong expansion opportunities, as evidenced by the acquisition of Bronco Oilfield Services, which we completed early in the second quarter. However, we are still dedicated to maintaining a strong balance sheet and conservative capital structure due to the volatility of the oilfield services industry." Summary of Segment Operating Performance RPC's business segments are Technical Services and Support Services. Technical Services includes RPC's oilfield service lines that utilize people and equipment to perform value-added completion, production and maintenance services directly to a customer's well. These services are generally directed toward improving the flow of oil and natural gas from producing formations or to address well control issues. The Technical Services include snubbing, coiled tubing, pressure pumping, nitrogen, well control, downhole tools, wire line, fluid pumping, and casing installation services. Support Services includes RPC's oilfield service lines that provide equipment for customer use or services to assist customer operations. The equipment and services offered include drill pipe and related tools, pipe handling, inspection and storage services, work platform vessels, and oilfield training services. Both Technical Services and Support Services experienced stronger results due to the increased drilling rig count and related customer activity. Technical Services revenues rose 49.7 percent for the quarter compared to the 27.2 percent increase in the rig count. Support Services revenues rose by 27.6 percent during the quarter compared to the prior year. The increase in revenues in both segments was principally due to increased utilization of equipment and personnel. The relatively larger increase in Technical Services revenues was due to higher overall pricing in this segment, in contrast to Support Services, a segment in which activity increased but pricing in the rental tools service line has been impacted by relatively lower increases in customer activity in the Gulf of Mexico area. Three Months Ended Six Months Ended June 30, June 30, --------------------- --------------------- 2003 2002 2003 2002 (in thousands) Revenues: Technical services $58,073 $38,796 $105,891 $78,732 Support services 10,670 8,359 20,368 16,860 Other 2,121 2,666 5,305 4,995 -------- --------- --------- --------- Total revenues $70,864 $49,821 $131,564 $100,587 -------- --------- --------- --------- Operating income (loss): Technical services $ 8,440 $(1,321) $11,185 $ (495) Support services 750 (813) 697 (3,137) Other (543) (415) (781) (879) -------- --------- --------- --------- Segment operating profit (loss) $ 8,647 $(2,549) $11,101 $ (4,511) -------- --------- --------- --------- Corporate expenses (1,782) (1,039) (3,411) (2,307) Other income, net 801 466 483 1,830 Interest expense, net (77) (29) (92) (45) -------- --------- --------- --------- Income (loss) before income taxes $ 7,589 $(3,151) $8,081 $ (5,033) ======== ========= ========= ========= RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of Mexico, mid-continent, southwest and Rocky Mountain regions, and in selected international markets. RPC's investor website can be found at www.rpc.net. Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding RPC's future performance. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RPC to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Such risks include the possibility of declines in the price of oil and natural gas, which tend to result in a decrease in drilling activity and therefore a decline in the demand for our services, the ultimate impact of current and potential political unrest and armed conflict in the oil-producing regions of the world, which could impact drilling activity, adverse weather conditions in oil or gas producing regions, competition in the oil and gas industry, and risks of international operations. Additional discussion of factors that could cause the actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in RPC's Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2002. RPC INCORPORATED AND SUBSIDIARIES - --------------------------------------------------------------------- STATEMENTS OF OPERATIONS (In thousands except per share data) - --------------------------------------------------------------------- Six months Second Quarter Six Months ended June 30, (Unaudited) - --------------------------------------------------------------------- % BETTER % BETTER 2003 2002 (WORSE) 2003 2002 (WORSE) - ---------------------------------------------------------------------- REVENUES $70,864 $49,821 42.2 % $131,564 $100,587 30.8 % COSTS AND EXPENSES: Cost of services rendered and goods sold 42,390 34,899 (21.5) 82,316 68,845 (19.6) Selling, general and administrative expenses 13,208 10,704 (23.4) 25,161 23,030 (9.3) Depreciation and amortization 8,401 7,806 (7.6) 16,397 15,530 (5.6) - ----------------------------------------- --------------------------- Operating profit (loss) 6,865 (3,588) NM 7,690 (6,818) NM Interest expense, net (77) (29) (165.5) (92) (45) (104.4) Other income, net 801 466 71.9 483 1,830 (73.6) - ----------------------------------------- --------------------------- Income (loss) before income taxes 7,589 (3,151) NM 8,081 (5,033) NM Income tax provision (benefit) 2,884 (1,198) NM 3,071 (1,913) NM - ----------------------------------------- --------------------------- NET INCOME (LOSS) $ 4,705 $(1,953) NM % $ 5,010 $ (3,120) NM % ========================================= =========================== EARNINGS (LOSS) PER SHARE Basic $ 0.17 $ (0.07) NM % $ 0.18 $ (0.11) NM % ========================== ============================ Diluted $ 0.16 $ (0.07) NM % $ 0.17 $ (0.11) NM % ========================== ============================ AVERAGE SHARES OUTSTANDING Basic 28,439 28,265 28,348 28,265 ================ ================== Diluted 28,851 28,265 28,754 28,265 ================ ================== NM = Not Meaningful RPC INCORPORATED AND SUBSIDIARIES - ---------------------------------------------------------------------- BALANCE SHEETS - ---------------------------------------------------------------------- At June 30, (Unaudited) (In thousands) - ---------------------------------------------------------------------- 2003 2002 - ---------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 10,182 $ 7,364 Accounts receivable, net 52,388 42,609 Inventories 9,629 8,683 Deferred income taxes 6,548 5,505 Taxes receivable 267 7,682 Prepaid expenses and other current assets 2,774 2,184 - ---------------------------------------------------------------------- Total current assets 81,788 74,027 - ---------------------------------------------------------------------- Property, plant and equipment, net 110,802 109,652 Intangibles, net 12,657 9,399 Other assets 1,627 1,457 - ---------------------------------------------------------------------- Total assets $ 206,874 $ 194,535 ====================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 14,151 $ 11,788 Accrued payroll and related expenses 6,440 5,731 Accrued insurance expenses 4,507 5,473 Accrued state, local and other taxes 2,075 1,818 Short-term debt 1,133 1,068 Other accrued expenses 526 1,615 - ---------------------------------------------------------------------- Total current liabilities 28,832 27,493 - ---------------------------------------------------------------------- Long-term accrued insurance expenses 4,137 3,974 Long-term debt 4,800 2,442 Pension liabilities 7,891 2,778 Deferred income taxes 10,424 6,096 - ---------------------------------------------------------------------- Total liabilities 56,084 42,783 - ---------------------------------------------------------------------- Common stock 2,881 2,867 Capital in excess of par value 28,581 26,961 Deferred compensation (1,197) (1,592) Earnings retained 124,380 124,377 Accumulated other comprehensive loss (3,855) (861) - ---------------------------------------------------------------------- Total stockholders' equity 150,790 151,752 - ---------------------------------------------------------------------- Total liabilities and stockholders' equity $ 206,874 $ 194,535 ====================================================================== RPC INCORPORATED AND SUBSIDIARIES -------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) -------------------------------------------------------------------- Six months ended June 30, (unaudited) -------------------------------------------------------------------- 2003 2002 -------------------------------------------------------------------- Operating Activities: Net income (loss) $ 5,010 $ (3,120) Depreciation and amortization 16,450 15,578 Other non-cash (credits) charges to earnings (86) 2,197 Changes in working capital (708) (4,850) -------------------------------------------------------------------- Net cash provided by operating activities 20,666 9,805 -------------------------------------------------------------------- Investing Activities: Capital expenditures (14,584) (10,613) Other investing activities (5,508) 7 -------------------------------------------------------------------- Net cash used for investing activities (20,092) (10,606) -------------------------------------------------------------------- Financing Activities: Dividend distributions (1,435) (1,435) Cash paid for common stock purchased and retired (14) (484) Other financing activities (476) (651) -------------------------------------------------------------------- Net cash used for financing activities (1,925) (2,570) -------------------------------------------------------------------- Net decrease in cash and cash equivalents (1,351) (3,371) Cash and cash equivalents at beginning of period 11,533 10,735 -------------------------------------------------------------------- Cash and cash equivalents at end of period $ 10,182 $ 7,364 ==================================================================== CONTACT: RPC Incorporated, Atlanta Ben M. Palmer, 404/321-2140 or Jim Landers, 404/321-2162 irdept@rpc.net -----END PRIVACY-ENHANCED MESSAGE-----