-----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, ABpS9SbURuZo5teMWyj80BSfg1h2+WDvccb8ABg4elK6QOv2QV5xvtYohMu0830M 0S2BdGLudP5v6WLlKrsbhQ== 0001157523-03-005997.txt : 20031029 0001157523-03-005997.hdr.sgml : 20031029 20031029140137 ACCESSION NUMBER: 0001157523-03-005997 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031029 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031029 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: 03963139 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 a4502933.txt RPC 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): October 29, 2003 Commission File No. 1-8726 RPC, INC. (exact name of registrant as specified in its charter) Delaware 58-1550825 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) 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 October 29, 2003, registrant issued a press release titled "RPC, Inc. Reports 2003 Third Quarter Results," that announces the results of the third quarter of 2003 for RPC, Inc. Item 7. Financial Statements and Exhibits (c) Exhibits. Exhibit 99 - Press release dated October 29, 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: October 29, 2003 /s/ BEN M. PALMER ------------------------------------ Ben M. Palmer Vice President, Chief Financial Officer and Treasurer EX-99 3 a4502933_ex991.txt RPC EXHIBIT 99.1 Exhibit 99.1 RPC, Inc. Reports 2003 Third Quarter Results ATLANTA--(BUSINESS WIRE)--Oct. 29, 2003-- -- Revenues for the Third Quarter Increased 29.7 Percent over Prior Year -- Diluted EPS for the Third Quarter Increased to Earnings of $0.09 from a Loss of $0.04 in the Prior Year RPC Incorporated (NYSE: RES) announced its unaudited results for the third quarter and nine months ended September 30, 2003. For the quarter ended September 30, 2003, revenues increased 29.7 percent to $69,244,000 compared to $53,370,000 last year. Net income was $2,577,000, or $0.09 diluted earnings per share, compared to a net loss of $1,040,000 or $0.04 diluted loss per share last year. Cost of services rendered and goods sold was $43,482,000 during the third quarter of 2003, a 19.5 percent increase over the prior year. These increases were due to increases in direct employment costs and certain operational expenses, both of which vary with activity levels, coupled with increased self-insured casualty claims costs. As a percentage of revenues, these costs decreased to 62.8 percent compared to 68.2 percent in 2002 because of improved pricing and higher equipment and personnel utilization. Selling, general and administrative expenses increased by 21.2 percent in the third quarter of 2003 to $13,438,000 compared to $11,083,000 in the prior year. This increase was due to higher personnel and incentive compensation expense consistent with increased activity levels and profitability, and increased pension expense relating to RPC's pension plan obligation. Depreciation and amortization increased during the quarter by 5.4 percent to $8,387,000 due to the effect of capital expenditures made during the first nine months of 2003. Income before income taxes was $4,156,000 in the third quarter of 2003, compared to a loss before income taxes of $1,677,000 in the prior year. This improvement resulted from the increases in revenues, partially offset by the increases in operating expenses and depreciation and amortization. For the nine months ended September 30, 2003, revenues increased 30.4 percent to $200,808,000 compared to $153,957,000 last year. Net income was $7,587,000, or $0.26 diluted earnings per share compared to a net loss of $4,160,000, or $0.15 diluted per share last year. "RPC's third quarter results reflect the continuation of higher activity levels than we experienced one year ago," stated Richard A. Hubbell, RPC's President and Chief Executive Officer. "Our overall domestic activity has increased because of higher customer drilling activity. The average domestic rig count during the third quarter was 1,088, 27.6 percent higher than the same period in 2002. Our revenues grew at a slightly higher rate than the rig count, principally because of the effect of our Bronco Oilfield Services acquisition, which was closed in the second quarter of 2003. Also, the average natural gas price was $4.82 this quarter, 49.7 percent higher than the third quarter of last year, which had a positive impact on our results, because we believe that our activity levels are affected more by natural gas prices than by the price of oil. Our revenue increases compared to the prior year were driven by higher overall activity and pricing levels in most of our service lines. While we are pleased with these year-over-year improvements, we should also note that our revenues are slightly lower this quarter compared to the second quarter of 2003 due to lower activity levels in many of our service lines. We are also continuing to experience weakness in the Gulf of Mexico market, where activity levels have not increased to the extent that they have in the U.S. land markets. Hubbell continued, "We continued to make selective capital expenditures during the quarter to position ourselves to take advantage of relatively stable industry conditions. As always, however, we continued to focus on a strong balance sheet and I am pleased to state that our cash and cash equivalents balance increased by more than $10 million during the quarter. We continue to explore domestic and international opportunities that can provide acceptable expected returns on investment and diversify our operations into other markets and services." 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, surface production equipment, 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 29.0 percent for the quarter compared to the prior year, driven by higher overall pricing and activity levels. Support Services revenues rose by 40.5 percent during the quarter compared to the prior year. This relatively higher increase was due to significantly higher activity levels in the rental tools service line and higher utilization and pricing of our work platform vessels due to a long term project which ended during the quarter. Three Months Ended Nine Months Ended Sept 30, Sept 30, ---------------------------------------- 2003 2002 2003 2002 -------- -------- ---------- ---------- (in thousands) Revenues: Technical services $ 53,603 $41,542 $ 159,494 $ 120,274 Support services 13,125 9,339 33,493 26,199 Other 2,516 2,489 7,821 7,484 - ----------------------------- -------- ------- --------- --------- Total revenues $ 69,244 $53,370 $ 200,808 $ 153,957 - ----------------------------- -------- ------- --------- --------- Operating profit (loss): Technical services $ 3,969 $ (365) $ 15,154 $ (860) Support services 2,376 (116) 3,073 (3,253) Other (419) (445) (1,200) (1,324) Corporate expenses (1,989) (1,132) (5,400) (3,439) -------- ------- --------- --------- Total operating profit (loss) $ 3,937 $(2,058) $ 11,627 $ (8,876) - ----------------------------- -------- ------- --------- --------- Other income, net 264 398 747 2,228 Interest expense, net (45) (17) (137) (62) -------- ------- --------- --------- Income (loss) before income taxes $ 4,156 $(1,677) $ 12,237 $ (6,710) - ----------------------------- -------- ------- --------- --------- 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) - ---------------------------------------------------------------------- Periods ended September 30, (Unaudited) Third Quarter - ---------------------------------------------------------------------- % BETTER 2003 2002 (WORSE) - -------------------------------------- ------------------------------- REVENUES $ 69,244 $ 53,370 29.7 % COSTS AND EXPENSES: Cost of services rendered and goods sold 43,482 36,391 (19.5) Selling, general and administrative expenses 13,438 11,083 (21.2) Depreciation and amortization 8,387 7,954 (5.4) - -------------------------------------- ------------------------------ Operating profit (loss) 3,937 (2,058) NM Interest expense, net (45) (17) (164.7) Other income, net 264 398 (33.7) - -------------------------------------- ------------------------------ Income (loss) before income taxes 4,156 (1,677) NM Income tax provision (benefit) 1,579 (637) NM - -------------------------------------- ------------------------------ NET INCOME (LOSS) $ 2,577 $ (1,040) NM % ====================================== ============================== EARNINGS (LOSS) PER SHARE Basic $ 0.09 $ (0.04) NM % ============================== Diluted $ 0.09 $ (0.04) NM % ============================== AVERAGE SHARES OUTSTANDING Basic 28,446 28,259 ==================== Diluted 28,877 28,259 ==================== NM= Not Meaningful RPC INCORPORATED AND SUBSIDIARIES - -------------------------------------- ------------------------------ STATEMENTS OF OPERATIONS (In thousands except per share data) - --------------------------------------------------------------------- Periods ended September 30, (Unaudited) Nine Months - --------------------------------------------------------------------- % BETTER 2003 2002 (WORSE) - -------------------------------------- ------------------------------- REVENUES $ 200,808 $153,957 30.4 % COSTS AND EXPENSES: Cost of services rendered and goods sold 125,798 105,236 19.5) Selling, general and administrative expenses 38,599 34,113 (13.2) Depreciation and amortization 24,784 23,484 (5.5) - -------------------------------------- ------------------------------ Operating profit (loss) 11,627 (8,876) NM Interest expense, net (137) (62) (121.0) Other income, net 747 2,228 (66.5) - -------------------------------------- ------------------------------ Income (loss) before income taxes 12,237 (6,710) NM Income tax provision (benefit) 4,650 (2,550) NM - -------------------------------------- ------------------------------ NET INCOME (LOSS) $ 7,587 $ (4,160) NM % ====================================== ============================== EARNINGS (LOSS) PER SHARE Basic $ 0.27 $ (0.15) NM % =============================== Diluted $ 0.26 $ (0.15) NM % =============================== AVERAGE SHARES OUTSTANDING Basic 28,380 28,263 ==================== Diluted 28,794 28,263 ==================== NM= Not Meaningful RPC INCORPORATED AND SUBSIDIARIES - ------------------------------------------------- CONSOLIDATED BALANCE SHEETS - ---------------------------------------------------------------------- At September 30, (Unaudited) (In thousands) - ------------------------------------------------- ------------------- 2003 2002 - ------------------------------------------------- ------------------- ASSETS Cash and cash equivalents $ 20,972 $ 8,956 Accounts receivable, net 48,587 38,571 Inventories 9,538 8,590 Deferred income taxes 8,313 2,215 Taxes receivable 2,993 9,959 Prepaid expenses and other current assets 1,777 1,112 - ---------------------------------------------------------------------- Total current assets 92,180 69,403 - ------------------------------------------------- ------------------- Property, plant and equipment, net 108,008 107,235 Intangibles, net 12,663 9,620 Other assets 1,775 1,440 - ------------------------------------------------- ------------------- Total assets $214,626 $187,698 ================================================= =================== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 15,606 $ 11,375 Accrued payroll and related expenses 7,898 5,317 Accrued insurance expenses 3,008 4,124 Accrued state, local and other taxes 1,500 2,234 Short-term debt 1,110 604 Other accrued expenses 511 1,646 - ------------------------------------------------- ------------------- Total current liabilities 29,633 25,300 - ------------------------------------------------- ------------------- Long-term accrued insurance expenses 6,414 3,971 Long-term debt 4,800 2,410 Pension liabilities 8,388 1,806 Deferred income taxes 13,475 4,105 - ------------------------------------------------- ------------------- Total liabilities 62,710 37,592 - ------------------------------------------------- ------------------- Common stock 2,873 2,865 Capital in excess of par value 27,810 26,896 Earnings retained 126,237 122,621 Deferred compensation (1,137) (1,415) Accumulated other comprehensive loss (3,867) (861) - ---------------------------------------------------------------------- Total stockholders' equity 151,916 150,106 - ------------------------------------------------- ------------------- Total liabilities and stockholders' equity $214,626 $187,698 ================================================= =================== RPC INCORPORATED AND SUBSIDIARIES - ------------------------------------------------ CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - ------------------------------------------------ Nine months ended September 30, (unaudited) - ------------------------------------------------ (In Thousands) 2003 2002 - ------------------------------------------------ -------------------- Operating Activities: Net income (loss) $ 7,587 $ (4,160) Depreciation and amortization 24,857 23,558 Other non-cash charges to earnings 1,150 2,871 Changes in working capital 4,886 (4,096) - ------------------------------------------------ --------- ---------- Net cash provided by operating activities 38,480 18,173 - ------------------------------------------------ --------- ---------- Investing Activities: Capital expenditures (20,711) (16,264) Other investing activities (4,883) 270 - ------------------------------------------------ --------- ---------- Net cash used for investing activities (25,594) (15,994) - ------------------------------------------------ --------- ---------- Financing Activities: Dividend distributions (2,155) (2,152) Cash paid for common stock purchased and retired (836) (680) Other financing activities (456) (1,126) - ------------------------------------------------ --------- ---------- Net cash used for financing activities (3,447) (3,958) - ------------------------------------------------ --------- ---------- Net increase (decrease) in cash and cash equivalents 9,439 (1,779) Cash and cash equivalents at beginning of period 11,533 10,735 - ------------------------------------------------ --------- ---------- Cash and cash equivalents at end of period $ 20,972 $ 8,956 ================================================ ========= ========== CONTACT: RPC, Inc., Atlanta Ben M. Palmer, 404/321-2140 or Jim Landers, 404/321-2162 irdept@Rpc.Net -----END PRIVACY-ENHANCED MESSAGE-----