Delaware | 58-1550825 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
RPC, INC. AND SUBSIDIARIES
Table of Contents
|
||
Part I. Financial Information
|
Page No.
|
|
Item 1.
|
Financial Statements (Unaudited)
|
|
Consolidated Balance Sheets –As of June 30, 2013 and December 31, 2012
|
3
|
|
Consolidated Statements of Operations – For the three and six months ended June 30, 2013 and 2012
|
4
|
|
Consolidated Statements of Comprehensive Income – For the three and six months ended June 30, 2013 and 2012
|
5
|
|
Consolidated Statement of Stockholders’ Equity – For the six months ended June 30, 2013
|
6
|
|
Consolidated Statements of Cash Flows – For the six months ended June 30, 2013 and 2012
|
7
|
|
Notes to Consolidated Financial Statements
|
8 – 16
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
17 – 25
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
25
|
Item 4.
|
Controls and Procedures
|
25
|
Part II. Other Information
|
||
Item 1.
|
Legal Proceedings
|
26
|
Item 1A.
|
Risk Factors
|
26
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
26
|
Item 3.
|
Defaults upon Senior Securities
|
27
|
Item 4.
|
Mine Safety Disclosures
|
27
|
Item 5.
|
Other Information
|
27
|
Item 6.
|
Exhibits
|
28
|
|
||
Signatures
|
29
|
June 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
ASSETS
|
(Note 1)
|
|||||||
Cash and cash equivalents
|
$ | 10,259 | $ | 14,163 | ||||
Accounts receivable, net
|
380,951 | 387,530 | ||||||
Inventories
|
134,170 | 140,867 | ||||||
Deferred income taxes
|
7,662 | 5,777 | ||||||
Income taxes receivable
|
- | 4,234 | ||||||
Prepaid expenses
|
8,056 | 10,762 | ||||||
Other current assets
|
5,294 | 4,494 | ||||||
Total current assets
|
546,392 | 567,827 | ||||||
Property, plant and equipment, net
|
739,624 | 756,326 | ||||||
Goodwill
|
24,093 | 24,093 | ||||||
Other
assets
|
18,873 | 18,917 | ||||||
Total assets
|
$ | 1,328,982 | $ | 1,367,163 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Accounts payable
|
$ | 108,286 | $ | 109,846 | ||||
Accrued payroll and related expenses
|
28,800 | 32,053 | ||||||
Accrued insurance expenses
|
6,321 | 6,152 | ||||||
Accrued state, local and other taxes
|
7,932 | 7,326 | ||||||
Income taxes payable
|
10,111 | 6,428 | ||||||
Other accrued expenses
|
1,098 | 2,706 | ||||||
Total current liabilities
|
162,548 | 164,511 | ||||||
Long-term accrued insurance expenses
|
11,005 | 10,400 | ||||||
Notes payable to banks
|
67,200 | 107,000 | ||||||
Long-term pension liabilities
|
27,066 | 26,543 | ||||||
Deferred income taxes
|
141,382 | 155,007 | ||||||
Other long-term liabilities
|
2,634 | 4,470 | ||||||
Total liabilities
|
411,835 | 467,931 | ||||||
Common stock
|
21,936 | 22,014 | ||||||
Retained earnings
|
909,867 | 891,464 | ||||||
Accumulated other comprehensive loss
|
(14,656 | ) | (14,246 | ) | ||||
Total stockholders’ equity
|
917,147 | 899,232 | ||||||
Total liabilities and stockholders’ equity
|
$ | 1,328,982 | $ | 1,367,163 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
|
3 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Revenues
|
$ | 457,566 | $ | 500,106 | $ | 883,387 | $ | 1,002,663 | ||||||||
Cost of revenues
|
287,578 | 281,279 | 555,805 | 555,078 | ||||||||||||
Selling, general and administrative expenses
|
47,611 | 43,115 | 92,525 | 88,042 | ||||||||||||
Depreciation and amortization
|
52,767 | 53,950 | 105,588 | 105,520 | ||||||||||||
Loss on disposition of assets, net
|
1,757 | 1,904 | 4,397 | 3,308 | ||||||||||||
Operating profit
|
67,853 | 119,858 | 125,072 | 250,715 | ||||||||||||
Interest expense
|
(942 | ) | (650 | ) | (1,282 | ) | (1,246 | ) | ||||||||
Interest income
|
60 | 4 | 65 | 9 | ||||||||||||
Other (expense) income, net
|
(191 | ) | (880 | ) | 364 | 40 | ||||||||||
Income before income taxes
|
66,780 | 118,332 | 124,219 | 249,518 | ||||||||||||
Income tax provision
|
26,364 | 46,072 | 48,727 | 96,503 | ||||||||||||
Net income
|
$ | 40,416 | $ | 72,260 | $ | 75,492 | $ | 153,015 | ||||||||
Earnings per share
|
||||||||||||||||
Basic
|
$ | 0.19 | $ | 0.34 | $ | 0.35 | $ | 0.71 | ||||||||
Diluted
|
$ | 0.19 | $ | 0.33 | $ | 0.35 | $ | 0.71 | ||||||||
Dividends per share
|
$ | 0.10 | $ | 0.08 | $ | 0.20 | $ | 0.16 | ||||||||
Weighted Average shares outstanding
|
||||||||||||||||
Basic
|
215,883 | 214,893 | 216,039 | 215,241 | ||||||||||||
Diluted
|
216,695 | 216,127 | 217,190 | 216,780 | ||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
4 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net income
|
$ | 40,416 | $ | 72,260 | $ | 75,492 | $ | 153,015 | ||||||||
Other
comprehensive income (loss), net of taxes:
|
||||||||||||||||
Pension adjustment
|
124 | 106 | 248 | 212 | ||||||||||||
Foreign currency translation
|
(383 | ) | (119 | ) | (627 | ) | (18 | ) | ||||||||
Unrealized gain (loss) on securities
|
||||||||||||||||
and reclassification adjustments
|
30 | (116 | ) | (31 | ) | (121 | ) | |||||||||
Comprehensive income
|
$ | 40,187 | $ | 72,131 | $ | 75,082 | $ | 153,088 | ||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
5 |
Common Stock
|
Capital in
Excess of Par Value |
Retained
Earnings |
Accumulated
Other Comprehensive Loss |
|||||||||||||||||||||
Shares
|
Amount
|
Total
|
||||||||||||||||||||||
Balance, December 31, 2012
|
220,144 | $ | 22,014 | $ | — | $ | 891,464 | ($ | 14,246 | ) | $ | 899,232 | ||||||||||||
Stock issued for stock incentive
|
||||||||||||||||||||||||
plans, net
|
756 | 76 | 4,175 | — | — | 4,251 | ||||||||||||||||||
Stock purchased and retired
|
(1,544 | ) | (154 | ) | (7,372 | ) | (13,059 | ) | — | (20,585 | ) | |||||||||||||
Net income
|
— | — | — | 75,492 | — | 75,492 | ||||||||||||||||||
Pension adjustment, net of taxes
|
— | — | — | — | 248 | 248 | ||||||||||||||||||
Foreign currency translation | — | — | — | — | (627 | ) | (627 | ) | ||||||||||||||||
Unrealized loss on securities,
|
||||||||||||||||||||||||
net of taxes
|
— | — | — | — | (31 | ) | (31 | ) | ||||||||||||||||
Dividends declared
|
— | — | — | (44,030 | ) | — | (44,030 | ) | ||||||||||||||||
Excess tax benefits for share-
|
||||||||||||||||||||||||
based payments
|
— | — | 3,197 | — | — | 3,197 | ||||||||||||||||||
Balance, June 30, 2013
|
219,356 | $ | 21,936 | $ | — | $ | 909,867 | ($ | 14,656 | ) | $ | 917,147 | ||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
6 |
Six months ended June 30,
|
||||||||
2013
|
2012
|
|||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 75,492 | $ | 153,015 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation, amortization and other non-cash charges
|
107,056 | 105,121 | ||||||
Stock-based compensation expense
|
4,251 | 3,902 | ||||||
Loss on disposition of assets, net
|
4,397 | 3,308 | ||||||
Deferred income tax (benefit) provision
|
(15,635 | ) | 6,931 | |||||
Excess tax benefits for share-based payments
|
(3,197 | ) | (2,172 | ) | ||||
(Increase) decrease in assets:
|
||||||||
Accounts receivable
|
6,416 | 47,766 | ||||||
Income taxes receivable
|
7,431 | 12,449 | ||||||
Inventories
|
6,276 | (18,621 | ) | |||||
Prepaid expenses
|
2,706 | 2,478 | ||||||
Other current assets
|
(964 | ) | (6,864 | ) | ||||
Other non-current assets
|
26 | (3,661 | ) | |||||
Increase (decrease) in liabilities:
|
||||||||
Accounts payable
|
7,090 | 8,399 | ||||||
Income taxes payable
|
3,683 | (7,840 | ) | |||||
Accrued payroll and related expenses
|
(3,253 | ) | (1,524 | ) | ||||
Accrued insurance expenses
|
169 | (281 | ) | |||||
Accrued state, local and other taxes
|
606 | 3,368 | ||||||
Other accrued expenses
|
(1,586 | ) | (1,056 | ) | ||||
Pension liabilities
|
915 | (2,148 | ) | |||||
Long-term accrued insurance expenses
|
605 | 230 | ||||||
Other long-term liabilities
|
(1,836 | ) | (666 | ) | ||||
Net cash provided by operating activities
|
200,648 | 302,134 | ||||||
INVESTING ACTIVITIES
|
||||||||
Capital expenditures
|
(108,490 | ) | (204,202 | ) | ||||
Proceeds from sale of assets
|
5,158 | 7,999 | ||||||
Net cash used for investing activities
|
(103,332 | ) | (196,203 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Payment of dividends
|
(44,030 | ) | (35,083 | ) | ||||
Borrowings from notes payable to banks
|
350,500 | 450,850 | ||||||
Repayments of notes payable to banks
|
(390,300 | ) | (492,150 | ) | ||||
Excess tax benefits for share-based payments
|
3,197 | 2,172 | ||||||
Cash paid for common stock purchased and retired
|
(20,587 | ) | (30,024 | ) | ||||
Proceeds received upon exercise of stock options
|
— | 167 | ||||||
Net cash used for financing activities
|
(101,220 | ) | (104,068 | ) | ||||
Net (decrease) increase in cash and cash equivalents
|
(3,904 | ) | 1,863 | |||||
Cash and cash equivalents at beginning of period
|
14,163 | 7,393 | ||||||
Cash and cash equivalents at end of period
|
$ | 10,259 | $ | 9,256 | ||||
Supplemental cash flows disclosure:
|
||||||||
Interest paid, net of amounts capitalized
|
$ | 406 | $ | 978 | ||||
Income taxes paid, net
|
$ | 53,298 | $ | 84,965 | ||||
Supplemental disclosure of noncash investing activities:
|
||||||||
Capital expenditures included in accounts payable
|
$ | 15,793 | $ | 18,272 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
|
7 |
1.
|
GENERAL
|
2.
|
REVENUES
|
3.
|
RECENT ACCOUNTING PRONOUNCEMENTS
|
8 |
4.
|
EARNINGS PER SHARE
|
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
(In thousands except per share data )
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net income available for stockholders:
|
$ | 40,416 | $ | 72,260 | $ | 75,492 | $ | 153,015 | ||||||||
Less: Dividends paid
|
(22,015 | ) | (17,512 | ) | (44,030 | ) | (35,083 | ) | ||||||||
Undistributed earnings
|
$ | 18,401 | $ | 54,748 | $ | 31,462 | $ | 117,932 | ||||||||
Basic shares outstanding:
|
||||||||||||||||
Common stock
|
211,707 | 210,331 | 211,790 | 210,683 | ||||||||||||
Restricted shares of common stock
|
4,176 | 4,562 | 4,249 | 4,558 | ||||||||||||
215,883 | 214,893 | 216,039 | 215,241 | |||||||||||||
Diluted shares outstanding:
|
||||||||||||||||
Common stock
|
211,707 | 210,331 | 211,790 | 210,683 | ||||||||||||
Dilutive effect of stock based awards
|
812 | 1,234 | 1,151 | 1,539 | ||||||||||||
212,519 | 211,565 | 212,941 | 212,222 | |||||||||||||
Restricted shares of common stock
|
4,176 | 4,562 | 4,249 | 4,558 | ||||||||||||
216,695 | 216,127 | 217,190 | 216,780 |
9 |
5.
|
STOCK-BASED COMPENSATION
|
Three months ended
|
Six months ended
|
||||||||||||||||
June 30
|
June 30
|
||||||||||||||||
(in thousands)
|
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Pre-tax expense
|
$ | 2,146 | $ | 2,001 | $ | 4,251 | $ | 3,902 | |||||||||
After tax expense
|
$ | 1,363 | $ | 1,271 | $ | 2,699 | $ | 2,478 |
Shares
|
Weighted Average
Grant-Date Fair Value |
|||||||
Non-vested shares at December 31, 2012
|
4,494,191 | $ | 8.12 | |||||
Granted
|
850,500 | 13.68 | ||||||
Vested
|
(1,078,534 | ) | 6.36 | |||||
Forfeited
|
(94,807 | ) | 9.73 | |||||
Non-vested shares at June 30, 2013
|
4,171,350 | $ | 9.67 |
6.
|
BUSINESS SEGMENT INFORMATION
|
10 |
11 |
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
(in thousands)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Revenues:
|
||||||||||||||||
Technical Services
|
$ | 424,030 | $ | 461,643 | $ | 818,041 | $ | 923,164 | ||||||||
Support Services
|
33,536 | 38,463 | 65,346 | 79,499 | ||||||||||||
Total revenues
|
$ | 457,566 | $ | 500,106 | $ | 883,387 | $ | 1,002,663 | ||||||||
Operating profit:
|
||||||||||||||||
Technical Services
|
$ | 66,123 | $ | 112,371 | $ | 124,624 | $ | 235,902 | ||||||||
Support Services
|
7,081 | 12,543 | 13,339 | 26,528 | ||||||||||||
Corporate
|
(3,594 | ) | (3,152 | ) | (8,494 | ) | (8,407 | ) | ||||||||
Loss on disposition of assets, net
|
(1,757 | ) | (1,904 | ) | (4,397 | ) | (3,308 | ) | ||||||||
Total operating profit
|
$ | 67,853 | $ | 119,858 | $ | 125,072 | $ | 250,715 | ||||||||
Interest expense
|
(942 | ) | (650 | ) | (1,282 | ) | (1,246 | ) | ||||||||
Interest income
|
60 | 4 | 65 | 9 | ||||||||||||
Other (expense) income, net
|
(191 | ) | (880 | ) | 364 | 40 | ||||||||||
Income before income taxes
|
$ | 66,780 | $ | 118,332 | $ | 124,219 | $ | 249,518 |
Six months ended June 30, 2013
|
Technical
Services |
Support
Services
|
Corporate
|
Total
|
||||||||||||
(in thousands)
|
||||||||||||||||
Identifiable assets at June 30, 2013
|
$ | 1,079,607 | $ | 195,406 | $ | 53,969 | $ | 1,328,982 | ||||||||
Capital expenditures
|
86,217 | 21,626 | 647 | 108,490 | ||||||||||||
Depreciation and amortization
|
$ | 89,442 | $ | 15,803 | $ | 343 | $ | 105,588 |
Six months ended June 30, 2012
|
Technical
Services |
Support
Services
|
Corporate
|
Total
|
||||||||||||
(in thousands)
|
||||||||||||||||
Identifiable assets at June 30, 2012
|
$ | 1,138,612 | $ | 194,979 | $ | 50,050 | $ | 1,383,641 | ||||||||
Capital expenditures
|
168,976 | 32,620 | 2,606 | 204,202 | ||||||||||||
Depreciation and amortization
|
$ | 90,154 | $ | 15,189 | $ | 177 | $ | 105,520 |
12 |
7.
|
INVENTORIES
|
8.
|
EMPLOYEE BENEFIT PLAN
|
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
(in thousands)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Service cost
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Interest cost
|
436 | 467 | 870 | 934 | ||||||||||||
Expected return on plan assets
|
(511 | ) | (462 | ) | (1,022 | ) | (924 | ) | ||||||||
Amortization of net losses
|
196 | 167 | 391 | 334 | ||||||||||||
Net periodic benefit cost
|
$ | 121 | $ | 172 | $ | 239 | $ | 344 |
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
(in thousands)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Gains (losses), net
|
$ | 46 | $ | (470 | ) | $ | 568 | $ | 180 |
9.
|
NOTES PAYABLE TO BANKS
|
13 |
·
|
the Base Rate, which is the highest of Bank of America’s “prime rate” for the day of the borrowing, a fluctuating rate per annum equal to the Federal Funds Rate plus 0.50%, and a rate per annum equal to the one (1) month LIBOR rate plus 1.00%; in each case plus a margin that ranges from 0.25% to 1.25% based on a quarterly debt covenant calculation; or
|
·
|
with respect to any Eurodollar borrowings, Adjusted LIBOR (which equals LIBOR as increased to account for the maximum reserve percentages established by the U.S. Federal Reserve) plus a margin ranging from 1.25% to 2.25%, based upon a quarterly debt covenant calculation.
|
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(in thousands except interest rate data)
|
||||||||||||||||
Interest incurred
|
$ | 324 | $ | 831 | $ | 677 | $ | 1,754 | ||||||||
Capitalized interest
|
$ | 247 | $ | 196 | $ | 489 | $ | 517 | ||||||||
Weighted average interest rate
|
3.12 | % | 2.12 | % | 3.05 | % | 2.09 | % |
10.
|
INCOME TAXES
|
14 |
11.
|
FAIR VALUE DISCLOSURES
|
1.
|
Level 1 – Quoted market prices in active markets for identical assets or liabilities.
|
2.
|
Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
3.
|
Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use.
|
Fair value measurements at June 30, 2013 with: | ||||||||||||
(in thousands) | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | |||||||||
(Level 1)
| (Level 2)
| (Level 3)
| ||||||||||
Assets: | ||||||||||||
Trading securities | $ | — | $ | 11,671 | $ | — | ||||||
Available for sale securities | 330 | — | — |
Fair value measurements at December 31, 2012 with: | ||||||||||||
(in thousands) | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | |||||||||
(Level 1)
| (Level 2)
| (Level 3)
| ||||||||||
Assets: | ||||||||||||
Trading securities | $ | — | $ | 11,103 | $ | — | ||||||
Available for sale securities | 380 | — | — |
15 |
12.
|
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
|
Pension
Adjustment
|
Unrealized
Gain (Loss) On
Securities
|
Foreign Currency Translation
|
Total
|
|||||||||||||
Balance at December 31, 2012
|
$ | (14,688 | ) | $ | 29 | $ | 413 | $ | (14,246 | ) | ||||||
Change during the period:
|
||||||||||||||||
Before-tax amount
|
- | (49 | ) | (627 | ) | (676 | ) | |||||||||
Tax (expense) benefit
|
- | 18 | - | 18 | ||||||||||||
Reclassification adjustment, net of taxes:
|
||||||||||||||||
Amortization of net loss (1)
|
248 | - | - | 248 | ||||||||||||
Total activity for the period
|
248 | (31 | ) | (627 | ) | (410 | ) | |||||||||
Balance at June 30, 2013
|
$ | (14,440 | ) | $ | (2 | ) | $ | (214 | ) | $ | (14,656 | ) |
Pension
Adjustment
|
Unrealized
Gain (Loss) On
Securities
|
Foreign Currency Translation
|
Total
|
|||||||||||||
Balance at December 31, 2011
|
$ | (12,981 | ) | $ | 187 | $ | 148 | $ | (12,646 | ) | ||||||
Change during the period:
|
||||||||||||||||
Before-tax amount
|
- | (191 | ) | (28 | ) | (209 | ) | |||||||||
Tax (expense) benefit
|
- | 70 | 10 | 70 | ||||||||||||
Reclassification adjustment, net of taxes:
|
||||||||||||||||
Amortization of net loss (1)
|
212 | - | - | 212 | ||||||||||||
Total activity for the period
|
212 | (121 | ) | (18 | ) | 73 | ||||||||||
Balance at June 30, 2012
|
$ | (12,769 | ) | $ | 66 | $ | 130 | $ | (12,573 | ) |
16 |
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
17 |
18 |
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Consolidated revenues [in thousands]
|
$ | 457,566 | $ | 500,106 | $ | 883,387 | $ | 1,002,663 | ||||||||
Revenues by business segment [in thousands]:
|
||||||||||||||||
Technical
|
$ | 424,030 | $ | 461,643 | $ | 818,041 | $ | 923,164 | ||||||||
Support
|
33,536 | 38,463 | 65,346 | 79,499 | ||||||||||||
Consolidated operating profit [in thousands]
|
$ | 67,853 | $ | 119,858 | $ | 125,072 | $ | 250,715 | ||||||||
Operating profit by business segment [in thousands]:
|
||||||||||||||||
Technical
|
$ | 66,123 | $ | 112,371 | $ | 124,624 | $ | 235,902 | ||||||||
Support
|
7,081 | 12,543 | 13,339 | 26,528 | ||||||||||||
Corporate
|
(3,594 | ) | (3,152 | ) | (8,494 | ) | (8,407 | ) | ||||||||
Loss on disposition of assets, net
|
(1,757 | ) | (1,904 | ) | (4,397 | ) | (3,308 | ) | ||||||||
Percentage cost of revenues to revenues
|
62.8 | % | 56.2 | % | 62.9 | % | 55.4 | % | ||||||||
Percentage selling, general & administrative expenses to revenues
|
10.4 | % | 8.6 | % | 10.5 | % | 8.8 | % | ||||||||
Percentage depreciation and amortization expense to revenues
|
11.5 | % | 10.8 | % | 12.0 | % | 10.5 | % | ||||||||
Average U.S. domestic rig count
|
1,761 | 1,970 | 1,760 | 1,980 | ||||||||||||
Average natural gas price (per thousand cubic feet (mcf))
|
$ | 3.97 | $ | 2.29 | $ | 3.74 | $ | 2.35 | ||||||||
Average oil price (per barrel)
|
$ | 94.07 | $ | 92.92 | $ | 94.24 | $ | 97.96 |
19 |
20 |
Three and six months ended June 30
|
||||||||
(In thousands)
|
2013
|
2012
|
||||||
Net cash provided by operating activities
|
$ | 200,648 | $ | 302,134 | ||||
Net cash used for investing activities
|
(103,332 | ) | (196,203 | ) | ||||
Net cash used for financing activities
|
(101,220 | ) | (104,068 | ) |
21 |
22 |
23 |
24 |
25 |
Period
|
Total Number
of Shares (or Units) Purchased |
Average Price
Paid Per Share (or Unit)
|
Total Number
of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number
(or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) |
|||||||||||||
Month #1
|
|||||||||||||||||
April 1, 2013 to April 31, 2013
|
30,000 | (1) | $ | 12.94 | 30,000 | 1,193,848 | |||||||||||
Month #2
|
|||||||||||||||||
July 31, 2013 to May 28, 2013
|
942,934 | (1) | 13.09 | 942,934 | 250,914 | ||||||||||||
Month #3
|
|||||||||||||||||
June 1, 2013 to June 30, 2013
|
224,599 | (1) | 12.87 | 224,599 | 5,026,315 | ||||||||||||
Totals
|
1,197,533 | $ | 13.05 | 1,197,533 | 5,026,315 | ||||||||||||
(1) | The Company’s Board of Directors announced a stock buyback program in March 1998 that authorizes the repurchase of 31,578,125 shares. On June 5, 2013, the Board of Directors authorized an additional 5,000,000 shares for repurchase under this program. There were 1,197,533 shares purchased on the open market during the second quarter of 2013, and 5,026,315 shares remain available to be repurchased as of June 30, 2013. Currently the program does not have a predetermined expiration date. |
26 |
27 |
Exhibit
Number |
Description
|
|
3.1(a)
|
Restated certificate of incorporation of RPC, Inc. (incorporated herein by reference to Exhibit 3.1 to the Annual Report on Form 10-K for the fiscal year ended December 31, 1999).
|
|
3.1(b)
|
Certificate of amendment of the certificate of incorporation of RPC, Inc. (incorporated by reference to Exhibit 3.1(b) to Registrant’s Quarterly Report on Form 10-Q filed on May 8, 2006).
|
|
3.1(c)
|
Certificate of amendment of the certificate of incorporation of RPC, Inc. (incorporated by reference to Exhibit 3.1(c) to the Registrant’s Quarterly Report on Form 10-Q filed on August 2, 2012).
|
|
3.2
|
Amended and Restated Bylaws of RPC, Inc. (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on October 25, 2007).
|
|
4
|
Form of Stock Certificate (incorporated herein by reference to Exhibit 4 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1998).
|
|
31.1
|
Section 302 certification for Chief Executive Officer.
|
|
31.2
|
Section 302 certification for Chief Financial Officer.
|
|
32.1
|
Section 906 certifications for Chief Executive Officer and Chief Financial Officer.
|
|
95.1
|
Mine Safety Disclosures
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
28 |
RPC, INC. | ||
/s/ Richard A. Hubbell | ||
Date: July 31, 2013 | Richard A. Hubbell | |
President and Chief Executive Officer | ||
(Principal Executive Officer)
|
||
/s/ Ben M. Palmer | ||
Date: July 31, 2013 | Ben M. Palmer | |
Vice President and Chief Financial Officer | ||
(Principal Financial and Accounting Officer)
|
29 |
EXHIBIT 31.1
CERTIFICATIONS
I, Richard A. Hubbell, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of RPC, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: July 31, 2013 | /s/ Richard A. Hubbell |
Richard A. Hubbell | |
President and Chief Executive Officer | |
(Principal Executive Officer) | |
EXHIBIT 31.2
CERTIFICATIONS
I, Ben M. Palmer, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of RPC, Inc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: July 31, 2013 | /s/ Ben M. Palmer |
Ben M. Palmer | |
Vice President, Chief Financial Officer, and Treasurer | |
(Principal Financial and Accounting Officer) | |
EXHIBIT 32.1
CERTIFICATION OF PERIODIC FINANCIAL REPORTS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
To the best of their knowledge the undersigned hereby certify that the Quarterly Report on Form 10-Q of RPC, Inc. for the period ended March 31, 2013, fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78m) and that the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of RPC, Inc.
Date: July 31, 2013 | /s/ Richard A. Hubbell |
Richard A. Hubbell | |
President and Chief Executive Officer | |
(Principal Executive Officer) | |
Date: July 31, 2013 | /s/ Ben M. Palmer |
Ben M. Palmer | |
Vice President, Chief Financial Officer and Treasurer | |
(Principal Financial and Accounting Officer) | |
Exhibit 95.1
MINE SAFETY ACT DISCLOSURES
No items to disclose for this period
FAIR VALUE DISCLOSURES
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES |
The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows:
The following table summarizes the valuation of financial instruments measured at fair value on a recurring basis in the balance sheets as of June 30, 2013 and December 31, 2012:
The Company determines the fair value of the marketable securities that are available-for-sale through quoted market prices. The total fair value is the final closing price, as defined by the exchange in which the asset is actively traded, on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. Significant observable inputs in addition to quoted market prices were used to value trading securities. As a result, the Company classified these investments as using level 2 inputs.
The outstanding balance on the Revolving Credit Agreement was $67.2 million at June 30, 2013 and $107.0 million at December 31, 2012 which approximates fair value. The fair value of these borrowings was based on quotes from the lender (level 2 inputs). The borrowings under the Company’s revolving credit agreement bear interest at the variable rate described in Note 9. The Company is subject to interest rate risk on the variable component of the interest rate.
The carrying amounts of other financial instruments reported in the balance sheet for current assets and current liabilities approximate their fair values because of the short maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether or not it will elect this option for financial instruments it may acquire in the future.
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Statement Of Income and Comprehensive Income [Abstract] | ||||
Net income | $ 40,416 | $ 72,260 | $ 75,492 | $ 153,015 |
Other comprehensive income (loss), net of taxes: | ||||
Pension adjustment | 124 | 106 | 248 | 212 |
Foreign currency translation | (383) | (119) | (627) | (18) |
Unrealized gain (loss) on securities and reclassification adjustments | 30 | (116) | (31) | (121) |
Comprehensive income | $ 40,187 | $ 72,131 | $ 75,082 | $ 153,088 |
EARNINGS PER SHARE
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. The basic and diluted calculations differ as a result of the dilutive effect of stock options and time lapse restricted shares included in diluted earnings per share, but excluded from basic earnings per share. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities.
A reconciliation of weighted average shares outstanding is as follows:
Reported basic EPS of the restricted shares of common stock under the two-class method generated the following reductions - $0.02 for the three months ended June 30, 2013 and 2012, and $0.03 for the six months ended June 30, 2013 and $0.04 for the six months ended June 30, 2012. |
FAIR VALUE DISCLOSURES (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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FAIR VALUE DISCLOSURES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of valuation of financial instruments measured at fair value on a recurring basis |
|
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME |
Accumulated other comprehensive (loss) income consists of the following (in thousands):
(1) Reported as part of selling, general and administrative expenses.
(1) Reported as part of selling, general and administrative expenses. |
EMPLOYEE BENEFIT PLAN (Detail Textuals) (USD $)
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
Multiple Employer Retirement Income Plan
|
Jun. 30, 2013
Non-qualified Supplemental Retirement Plan ("SERP")
|
Dec. 31, 2012
Non-qualified Supplemental Retirement Plan ("SERP")
|
|
Multiemployer Plans [Line Item] | |||
Contribution by employer for retirement income plan | $ 800,000 | ||
SERP assets | $ 11,671,000 | $ 11,103,000 |
EARNINGS PER SHARE (Detail Textuals) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Earnings Per Share [Line Items] | ||||
Reduction in basic EPS of restricted shares of common stock | $ 0.19 | $ 0.34 | $ 0.35 | $ 0.71 |
Restricted Shares
|
||||
Earnings Per Share [Line Items] | ||||
Reduction in basic EPS of restricted shares of common stock | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.04 |
EARNINGS PER SHARE - Reconciliation of weighted average shares outstanding (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
EARNINGS PER SHARE | ||||
Net income available for stockholders: | $ 40,416 | $ 72,260 | $ 75,492 | $ 153,015 |
Less: Dividends paid | (22,015) | (17,512) | (44,030) | (35,083) |
Undistributed earnings | $ 18,401 | $ 54,748 | $ 31,462 | $ 117,932 |
Basic shares outstanding: | ||||
Common stock | 211,707 | 210,331 | 211,790 | 210,683 |
Restricted shares of common stock | 4,176 | 4,562 | 4,249 | 4,558 |
Basic shares outstanding, Total | 215,883 | 214,893 | 216,039 | 215,241 |
Diluted shares outstanding: | ||||
Common stock | 211,707 | 210,331 | 211,790 | 210,683 |
Dilutive effect of stock based awards | 812 | 1,234 | 1,151 | 1,539 |
Diluted shares outstanding excluding restricted shares of common stock, Total | 212,519 | 211,565 | 212,941 | 212,222 |
Restricted shares of common stock | 4,176 | 4,562 | 4,249 | 4,558 |
Diluted shares outstanding, Total | 216,695 | 216,127 | 217,190 | 216,780 |
BUSINESS SEGMENT INFORMATION (Detail Textuals)
|
6 Months Ended |
---|---|
Jun. 30, 2013
Reportable_Segment
|
|
BUSINESS SEGMENT INFORMATION | |
Number of reportable segments | 2 |
NOTES PAYABLE TO BANKS (Detail Textuals) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Aug. 31, 2010
|
|
Revolving credit facility
|
||
Line of Credit Facility [Line Items] | ||
Percentage of ownership | 100.00% | |
Description of variable rate basis of debt instrument | The Base Rate, which is the highest of Bank of America's "prime rate" for the day of the borrowing, a fluctuating rate per annum equal to the Federal Funds Rate plus 0.50%, and a rate per annum equal to the one (1) month LIBOR rate plus 1.00%; in each case plus a margin that ranges from 0.25% to 1.25% based on a quarterly debt covenant calculation; or with respect to any Eurodollar borrowings, Adjusted LIBOR (which equals LIBOR as increased to account for the maximum reserve percentages established by the U.S. Federal Reserve) plus a margin ranging from 1.25% to 2.25%, based upon a quarterly debt covenant calculation. | |
Replaced credit facility | $ 200 | |
Amount of credit facility | 350 | |
Loan origination fees and other debt related costs | 2.3 | |
Term of line of credit facility | 5 years | |
Revolving credit facility | Minimum
|
||
Line of Credit Facility [Line Items] | ||
Fees on unused portion of facility | 0.25% | |
Revolving credit facility | Maximum
|
||
Line of Credit Facility [Line Items] | ||
Fees on unused portion of facility | 0.35% | |
Revolving credit facility | Option 1 A
|
||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Description of reference rate basis | prime rate | |
Revolving credit facility | Option 1 A | Minimum
|
||
Line of Credit Facility [Line Items] | ||
Range of margin based on quarterly debt covenant calculation | 0.25% | |
Revolving credit facility | Option 1 A | Maximum
|
||
Line of Credit Facility [Line Items] | ||
Range of margin based on quarterly debt covenant calculation | 1.25% | |
Revolving credit facility | Option 1 B
|
||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Description of reference rate basis | LIBOR rate | |
Revolving credit facility | Option 1 B | Minimum
|
||
Line of Credit Facility [Line Items] | ||
Range of margin based on quarterly debt covenant calculation | 0.25% | |
Revolving credit facility | Option 1 B | Maximum
|
||
Line of Credit Facility [Line Items] | ||
Range of margin based on quarterly debt covenant calculation | 1.25% | |
Letter of credit subfacility
|
||
Line of Credit Facility [Line Items] | ||
Amount of credit facility | 50 | |
Letter of swingline subfacility
|
||
Line of Credit Facility [Line Items] | ||
Amount of credit facility | $ 25 |
STOCK-BASED COMPENSATION (Detail Textuals 1) (Stock Options, USD $)
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Stock Options
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total intrinsic value of stock options exercised | $ 1,128,000 |
INCOME TAXES (Detail Textuals)
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3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
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Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
INCOME TAXES | ||||
Effective tax rate | 39.50% | 38.90% | 39.20% | 38.70% |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables)
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Jun. 30, 2013
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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated other comprehensive (loss) income |
(1) Reported as part of selling, general and administrative expenses.
(1) Reported as part of selling, general and administrative expenses. |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
OPERATING ACTIVITIES | ||
Net income | $ 75,492 | $ 153,015 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and other non-cash charges | 107,056 | 105,121 |
Stock-based compensation expense | 4,251 | 3,902 |
Loss on disposition of assets, net | 4,397 | 3,308 |
Deferred income tax (benefit) provision | (15,635) | 6,931 |
Excess tax benefits for share-based payments | (3,197) | (2,172) |
(Increase) decrease in assets: | ||
Accounts receivable | 6,416 | 47,766 |
Income taxes receivable | 7,431 | 12,449 |
Inventories | 6,276 | (18,621) |
Prepaid expenses | 2,706 | 2,478 |
Other current assets | (964) | (6,864) |
Other non-current assets | 26 | (3,661) |
Increase (decrease) in liabilities: | ||
Accounts payable | 7,090 | 8,399 |
Income taxes payable | 3,683 | (7,840) |
Accrued payroll and related expenses | (3,253) | (1,524) |
Accrued insurance expenses | 169 | (281) |
Accrued state, local and other taxes | 606 | 3,368 |
Other accrued expenses | (1,586) | (1,056) |
Pension liabilities | 915 | (2,148) |
Long-term accrued insurance expenses | 605 | 230 |
Other long-term liabilities | (1,836) | (666) |
Net cash provided by operating activities | 200,648 | 302,134 |
INVESTING ACTIVITIES | ||
Capital expenditures | (108,490) | (204,202) |
Proceeds from sale of assets | 5,158 | 7,999 |
Net cash used for investing activities | (103,332) | (196,203) |
FINANCING ACTIVITIES | ||
Payment of dividends | (44,030) | (35,083) |
Borrowings from notes payable to banks | 350,500 | 450,850 |
Repayments of notes payable to banks | (390,300) | (492,150) |
Excess tax benefits for share-based payments | 3,197 | 2,172 |
Cash paid for common stock purchased and retired | (20,587) | (30,024) |
Proceeds received upon exercise of stock options | 167 | |
Net cash used for financing activities | (101,220) | (104,068) |
Net (decrease) increase in cash and cash equivalents | (3,904) | 1,863 |
Cash and cash equivalents at beginning of period | 14,163 | 7,393 |
Cash and cash equivalents at end of period | 10,259 | 9,256 |
Supplemental cash flows disclosure: | ||
Interest paid, net of amounts capitalized | 406 | 978 |
Income taxes paid, net | 53,298 | 84,965 |
Supplemental disclosure of noncash investing activities: | ||
Capital expenditures included in accounts payable | $ 15,793 | $ 18,272 |
REVENUES
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6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
|
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REVENUES | |||
REVENUES |
RPC’s revenues are generated principally from providing services and the related equipment. Revenues are recognized when the services are rendered and collectability is reasonably assured. Revenues from services and equipment are based on fixed or determinable priced purchase orders or contracts with the customer and do not include the right of return. Rates for services and equipment are priced on a per day, per unit of measure, per man hour or similar basis. Sales tax charged to customers is presented on a net basis within the consolidated statement of operations and excluded from revenues. |
STOCK-BASED COMPENSATION
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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STOCK-BASED COMPENSATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION |
The Company reserved 11,390,625 shares of common stock under its 2004 Stock Incentive Plan which expires ten years from the date of approval. This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted shares. As of June 30, 2013, there were approximately 1,299,000 shares available for grants.
Stock-based employee compensation expense was as follows for the periods indicated:
Stock Options
There were no stock options exercised during 2013 and there are no stock options outstanding since December 31, 2012. The total intrinsic value of stock options exercised was approximately $1,128,000 during the six months ended June 30, 2012.
Restricted Stock
The following is a summary of the changes in non-vested restricted shares for the six months ended June 30, 2013:
The total fair value of shares vested during the six months ended June 30, 2013 was approximately $15,471,000 and during the six months ended June 30, 2012 was approximately $10,695,000. Tax benefits for compensation tax deductions in excess of compensation expense for restricted shares totaled approximately $3,197,000 for the six months ended June 30, 2013 and $2,172,000 for the six months ended June 30, 2012. These tax benefits were credited to capital in excess of par value and classified as financing cash flows.
As of June 30, 2013, total unrecognized compensation cost related to non-vested restricted shares was approximately $38,539,000 which is expected to be recognized over a weighted-average period of 3.7 years. |
RECENT ACCOUNTING PRONOUNCEMENTS
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
|
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RECENT ACCOUNTING PRONOUNCEMENTS | |||
RECENT ACCOUNTING PRONOUNCEMENTS |
During 2013, the Financial Accounting Standards Board (FASB) issued the following applicable Accounting Standards Updates (ASU):
Recently Adopted Accounting Pronouncements:
Accounting Standards Update 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. In addition, an entity is required to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The Company adopted these provisions in the second quarter of 2013 and has included the required additional disclosures in the accompanying financial statements and notes.
Recently Issued Accounting Pronouncements Not Yet Adopted:
Accounting Standards Update 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The amendments in this ASU requires that when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity, the parent should release the cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Additionally, the amendments in this ASU clarify that the sale of an investment in a foreign entity includes both: (1) events that result in the loss of a controlling financial interest in a foreign entity; and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. Upon the occurrence of those events, the cumulative translation adjustment should be released into net income. The amendments in this ASU are effective prospectively for fiscal years beginning after December 15, 2013 and for interim reporting periods within those years, with early adoption being permitted. The Company plans to adopt these provisions in the first quarter of 2014 and does not expect the adoption to have a material impact on the Company’s consolidated financial statements. |
NOTES PAYABLE TO BANKS (Detail Textuals 1) (Revolving credit facility, Option 2, Eurodollar Borrowings)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Line of Credit Facility [Line Items] | |
Description of reference rate basis | Adjusted LIBOR |
Minimum
|
|
Line of Credit Facility [Line Items] | |
Fees on unused portion of facility | 1.25% |
Maximum
|
|
Line of Credit Facility [Line Items] | |
Fees on unused portion of facility | 2.25% |
STOCK-BASED COMPENSATION - Stock-based employee compensation expense (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
STOCK-BASED COMPENSATION | ||||
Pre-tax expense | $ 2,146 | $ 2,001 | $ 4,251 | $ 3,902 |
After tax expense | $ 1,363 | $ 1,271 | $ 2,699 | $ 2,478 |
STOCK-BASED COMPENSATION (Detail Textuals 2) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax benefits for compensation expense for restricted stock | $ 3,197,000 | $ 2,172,000 |
Restricted Stock
|
||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total fair value of shares vested | 15,471,000 | 10,695,000 |
Tax benefits for compensation expense for restricted stock | 3,197,000 | 2,172,000 |
Unrecognized compensation cost related to non-vested restricted shares | $ 38,539,000 | |
Unrecognized compensation cost related to non-vested restricted shares recognized period | 3.7 years |
EMPLOYEE BENEFIT PLAN - Trading results related to SERP (Details 1) (Non-qualified Supplemental Retirement Plan ("SERP"), USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Non-qualified Supplemental Retirement Plan ("SERP")
|
||||
Multiemployer Plans [Line Item] | ||||
Gains (losses), net | $ 46 | $ (470) | $ 568 | $ 180 |