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Newpark Resources(NR) - 2019 Q4 - Annual Report
2020-02-21 18:15
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-02960 Newpark Resources, Inc. (Exact name of registrant as specified in its charter) 9320 Lakeside Boulevard, Suite 100 S ...
Newpark Resources(NR) - 2019 Q4 - Earnings Call Transcript
2020-02-07 19:28
Financial Data and Key Metrics Changes - The fourth quarter 2019 revenues totaled $189 million, representing a 7% decline from the prior quarter and a 23% decline year-over-year [39] - The net loss for the fourth quarter was $0.19 per share, compared to a net loss of $0.02 in the third quarter and net income of $0.11 per diluted share in the fourth quarter of the previous year [41] - Free cash flow for the fourth quarter totaled $17 million, bringing the full-year 2019 free cash flow to $41 million [22][42] Business Line Data and Key Metrics Changes - The Fluids Systems segment generated total revenues of $135 million for the fourth quarter, reflecting a 12% sequential decrease and a 24% year-over-year decrease [25] - The Mats business saw total segment revenues improve to $55 million in the fourth quarter, representing a 9% sequential improvement driven by a $13 million increase in product sales [34] - The operating margin for the Mats segment improved sequentially to 27% for the fourth quarter, compared to 20% in the third quarter [37] Market Data and Key Metrics Changes - North American revenues declined 22% sequentially, reflecting the impact of the declining rig count and budget exhaustion by several customers [18] - International revenues improved by 12% sequentially, with the EMEA region contributing 36% of the fourth quarter fluids revenues [30] - Canadian revenues declined by 33% to $5 million, driven by budget exhaustion with several key customers [29] Company Strategy and Development Direction - The company is focused on diversifying its product offering, customer base, and geographic scope to mitigate risks associated with North American market volatility [60] - Investments are being made to expand geographical and commercial footprint, particularly in the energy infrastructure market [64] - The company aims to leverage its growing IOC and NOC customer relationships to provide greater stability and stronger financial returns [67] Management's Comments on Operating Environment and Future Outlook - Management noted that the North American land environment remains challenging, but they have demonstrated the ability to adjust course and deliver consistent free cash flow [59] - The expectation is for U.S. revenues to remain relatively consistent with fourth quarter levels, with a modest improvement in deepwater activities [47] - The company anticipates total Q1 revenues to pull back to roughly the $40 million level, with near-term margins likely pulling back into the mid-to-high teens [52][53] Other Important Information - The company has taken actions to rightsize its operational footprint and drive a more variable cost structure in response to market conditions [32] - The fourth quarter provision for income taxes was $2.6 million, despite reporting a pre-tax loss of $14 million [40] - The company plans to utilize its free cash flow generation in 2020 primarily to reduce its bank facility balance [46] Q&A Session Summary Question: On the Fluids side, have we aligned the cost structure to today's activity level enough? - Management indicated that it will take a few quarters for the cost structure adjustments to fully reflect the activity levels, with steady month-over-month cost improvements expected [80][86] Question: Can you talk about the breadth of your non-E&P Mats customer base? - Management reported an increase in the number of customers purchasing Mats, with over two dozen customers in Q4, indicating growing product awareness and adoption [87] Question: What are you hearing from your customers about the 2020 activity plans? - Management noted that customers are focused on capital discipline and free cash flow, with cautious optimism for a ramp-up in activity in the second and third quarters [108]
Newpark Resources(NR) - 2019 Q3 - Earnings Call Transcript
2019-11-03 09:12
Newpark Resources, Inc. (NYSE:NR) Q3 2019 Earnings Conference Call October 31, 2019 10:00 AM ET Company Participants Ken Dennard - CEO & Managing Partner, Dennard Lascar Associates, LLC, IR Paul Howes - President and CEO David Paterson - Corporate VP and President of Fluids Systems Business Gregg Piontek - CFO Conference Call Participants Praveen Narra - Raymond James William Dezellem - Tieton Capital Management Operator Greetings, and welcome to the Newpark Resources Third Quarter Earnings Conference Call. ...
Newpark Resources(NR) - 2019 Q3 - Quarterly Report
2019-10-31 16:42
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-02960 Newpark Resources, Inc. (Exact name of registrant as specified in its charter) Delaware 72-1123385 (Addres ...
Newpark Resources(NR) - 2019 Q2 - Earnings Call Transcript
2019-07-31 18:31
Newpark Resources Inc. (NYSE:NR) Q2 2019 Earnings Conference Call July 31, 2019 10:00 AM ET Company Participants Ken Dennard ??? Dennard Lascar Paul Howes ??? President and Chief Executive Officer Gregg Piontek ??? Chief Financial Officer Matthew Lanigan ??? President-Mats Business Conference Call Participants Praveen Narra ??? Raymond James Bill Dezellem ??? Tieton Capital Management Operator Greetings, and welcome to the Newpark Resources Second Quarter Earnings Conference Call. [Operator Instructions] As ...
Newpark Resources(NR) - 2019 Q2 - Quarterly Report
2019-07-31 16:05
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-02960 Newpark Resources, Inc. (Exact name of registrant as specified in its charter) Delaware 72-1123385 (State or ot ...
Newpark Resources(NR) - 2019 Q1 - Earnings Call Transcript
2019-04-27 02:50
Financial Data and Key Metrics Changes - First quarter consolidated revenues were $211 million, representing a 15% decline from the previous quarter and a 7% decline year-over-year [6][17][20] - The provision for income taxes for the first quarter was $1.8 million, reflecting an effective tax rate of 58%, compared to 32% in the fourth quarter and 30% in the first quarter of 2018 [19] - Net income for the first quarter was $0.01 per diluted share, which includes a $0.03 negative impact from retirement policy modification and employee severance charges [20] Business Line Data and Key Metrics Changes - In the Fluids segment, total revenues were $161 million for Q1 2019, reflecting a 10% sequential decrease and a 9% year-over-year decrease [11] - The Mats segment reported revenues of $51 million for Q1 2019, representing a 27% sequential decline but a 2% improvement year-over-year [10][16] - The Fluids segment operating income declined to $4 million for the quarter, impacted by lower revenues and unfavorable revenue mix [14][15] Market Data and Key Metrics Changes - In North America, revenues declined 4% sequentially to $116 million, reflecting softer activity levels in the U.S. and lack of seasonal improvements in Canada [6] - International revenues declined 21% sequentially, primarily due to contract transitions in Algeria and Brazil, along with project delays in Eastern Europe [6][13] - Year-over-year, revenues from international regions declined by $18 million, largely reflecting contract transitions and a decline in Eastern Europe [14] Company Strategy and Development Direction - The company is focused on expanding its presence in targeted non-E&P end markets to improve stability in performance over time [25] - A long-term strategic planning initiative has been initiated, expected to take approximately 6 months to complete, engaging outside consultants to assess the long-term strategy [35][36] - The company aims to maximize long-term shareholder value by driving growth and consistent fee and cash flow generation while improving return on invested capital [37] Management Comments on Operating Environment and Future Outlook - Management remains encouraged by operational execution and commercial success in new markets despite market softness and contract transitions impacting Q1 results [5] - The company expects Q1 to serve as an inflection point for segment revenues and operating margins, anticipating improvements going forward [8] - The outlook for the Fluids business includes expectations for increased activity levels in the U.S. and Eastern Hemisphere, offsetting seasonal declines in Canada [24] Other Important Information - The company amended its asset-based loan facility, expanding revolving loan capacity from $150 million to $200 million, increasing available liquidity [22] - Total debt balance at the end of the quarter was $182 million, with a cash balance of $54 million, resulting in a total debt to capital ratio of 24% [23] Q&A Session Summary Question: U.S. profitability improvement and international profitability discrepancy - Management indicated that U.S. profitability improved due to cost efforts and deepwater work, while international profitability was negatively impacted by transition costs [40] Question: Guidance for Mats segment - Management noted that the Q1 mix was stronger than typical, and they expect normalization in Q2, impacting margin profiles [41] Question: Outlook for Brazil - Management stated that they rightsized the organization in Brazil but maintained an operational presence for deepwater work, seeing more opportunities ahead [43] Question: International opportunities compared to 6 months ago - Management observed increased tender activity, particularly in the Middle East and deepwater offshore Brazil, indicating a positive shift in international opportunities [48] Question: Shell contract and its implications - Management confirmed they are currently operating on 2 rigs and expect a third rig to start soon, highlighting the significance of their technology and service quality in competitive environments [51]
Newpark Resources(NR) - 2019 Q1 - Quarterly Report
2019-04-26 16:08
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-02960 Newpark Resources, Inc. (Exact name of registrant as specified in its charter) Delaware 72-1123385 (State ...
Newpark Resources(NR) - 2018 Q4 - Annual Report
2019-02-22 18:45
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-02960 Newpark Resources, Inc. (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR Delaware 72-1123385 (State or ot ...
Newpark Resources(NR) - 2018 Q4 - Earnings Call Transcript
2019-02-08 18:45
Financial Data and Key Metrics Changes - Revenues for the full year 2018 improved by 27% year-over-year to $947 million, while EBITDA improved by 56% to $108 million [10] - Fourth quarter consolidated revenues were $248 million, representing a 5% improvement from Q3 and a 21% improvement year-over-year [43] - Net income from continuing operations for the fourth quarter was $0.11 per diluted share, compared to $0.04 in the previous quarter and $0.09 in the fourth quarter of last year [46] Business Line Data and Key Metrics Changes - In the Fluids segment, full year 2018 revenues were $716 million, reflecting a 16% year-over-year increase, while operating income improved by 46% [11] - Fourth quarter revenues for the Fluids segment came in at $178 million, a 2% sequential decrease, but a 9% improvement year-over-year [31] - The Mats segment posted $230 million in revenue for the full year 2018, with a 26% operating margin, and fourth quarter revenues achieved a record of $70 million, representing a 29% sequential improvement [20][29] Market Data and Key Metrics Changes - U.S. revenues in the Fluids segment were $107 million, flat sequentially, with a year-over-year increase of 19% [32] - In Canada, revenues were $15 million for the fourth quarter, reflecting an 11% sequential decline but an 11% year-over-year increase [34] - Revenues in the Eastern Hemisphere were $50 million in the fourth quarter, relatively flat to prior quarter levels, with a year-over-year improvement of 4% [35] Company Strategy and Development Direction - The company aims to become a global technology leader in Fluids Systems while building on its strong position in Mats and generating free cash flow for shareholders [58] - The focus is on expanding product offerings and penetrating key international oil companies (IOCs) and national oil companies (NOCs) [11][60] - The Mats division is diversifying its market presence, with revenues evenly split between exploration and production (E&P) and non-E&P markets [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2019 despite some near-term headwinds, focusing on the deepening relationships with IOCs and NOCs [58] - The company expects modestly softer revenues in the near term, primarily driven by transitory declines in international units [50] - Management highlighted the importance of maintaining a modest debt burden and protecting the balance sheet [25] Other Important Information - The company ended the year with a total debt balance of $162 million and a cash balance of $56 million, resulting in a total debt to capital ratio of 22% [48] - The Board of Directors expanded the share repurchase authorization to $100 million, providing flexibility to optimize the capital structure [49] Q&A Session Summary Question: Can you break down the sales on the mat side? - Management noted that there were more customers purchasing in Q4, with over half of the sales going to utility customers, indicating a diversification in the sales footprint [71][72] Question: How much do you estimate the weather-related impact in Q4? - The estimated impact was a high-single digit percentage, primarily due to the extension of planned jobs [73] Question: What actions are being taken to drive increased returns in the Fluids business? - Management emphasized covering the cost of capital and highlighted growth initiatives, cost optimization, pricing discipline, and working capital management as key levers [80][82] Question: Can you describe the volume and margin opportunity in stimulation and completion fluids? - Management indicated that the margin profile for stimulation chemicals is expected to be similar to drilling fluids, with significant volume potential from single frac fleets consuming substantial amounts of chemicals annually [90][94] Question: Is the new Kuwait oil contract a follow-on to the previous one? - Management confirmed that it is partially a follow-on, with new work in high-temperature, high-pressure regions expected to yield higher margins [102][105] Question: How does the company weigh paying down debt versus buying back stock? - The approach remains thoughtful and prudent, maintaining a modest debt load while using excess cash for share repurchases as part of a maintenance program [106]