Newpark Resources(US:NR)2024-08-05 20:29Financial Performance - Net income for Q2 2024 was $8.0 million, or $0.09 per diluted share, compared to $1.7 million, or $0.02 per diluted share in Q2 2023[5]. - Revenues for Q2 2024 were $179,009 thousand, a 5.3% increase from $169,107 thousand in Q1 2024, but a 2.4% decrease from $183,256 thousand in Q2 2023[20]. - Net income for Q2 2024 was $8,040 thousand, up 10.3% from $7,293 thousand in Q1 2024, and significantly higher than $1,702 thousand in Q2 2023[20]. - The company reported a total operating income of $13,299 thousand for Q2 2024, an increase from $11,859 thousand in Q1 2024 and $5,878 thousand in Q2 2023[23]. - Net income for the six months ended June 30, 2024, was $15,333,000, a 109% increase from $7,322,000 in the same period of 2023[27]. - Revenues for the six months ended June 30, 2024, totaled $348,116,000, a decrease from $383,286,000 in the same period of 2023[32]. Segment Performance - Industrial Solutions segment revenue grew by 39% on an organic basis, reaching $66.8 million, with operating income of $19.4 million[2][7]. - Fluids Systems segment revenue decreased to $112.2 million from $135.2 million in the prior year, with operating income of $2.3 million[1][8]. - The Industrial Solutions segment reported an operating income of $19,392 thousand in Q2 2024, compared to $12,936 thousand in Q1 2024 and $12,774 thousand in Q2 2023, reflecting a strong performance[23]. - Revenues for Fluids Systems in Q2 2024 were $112,218, down 16.9% from $135,181 in Q2 2023[35]. - Operating income for Industrial Solutions in Q2 2024 was $19,392, an increase of 51.8% from $12,774 in Q2 2023[36]. Cash Flow and Investments - Free cash flow for Q2 2024 was $21.9 million, significantly up from $0.6 million in Q2 2023[1][4]. - Capital investments in Q2 2024 totaled $6 million, primarily for expanding the composite matting rental fleet[10]. - Net cash provided by operating activities increased to $39,531,000 for the six months ended June 30, 2024, compared to $36,848,000 for the same period in 2023[27]. - Free Cash Flow for the six months ended June 30, 2024, was $21,105,000, down from $23,805,000 in the same period of 2023[33]. - Capital expenditures for the six months ended June 30, 2024, were $20,468,000, compared to $15,347,000 in the same period of 2023, indicating a 33% increase[27]. Debt and Leverage - Total debt stood at $58 million, with net debt of $23 million and a net leverage ratio of 0.3x as of June 30, 2024[1][10]. - Total Debt decreased from $75,033,000 in December 31, 2023 to $57,983,000 as of June 30, 2024, representing a reduction of approximately 23%[42]. - Net Debt reduced significantly from $36,439,000 to $22,896,000, a decrease of about 37%[42]. - Net Leverage improved from 0.5x to 0.3x, indicating a stronger balance sheet position[42]. Margins and Profitability - Adjusted EBITDA increased by 18% to $23.4 million, with an adjusted EBITDA margin of 13.1%, up 230 basis points year-over-year[1][7]. - Consolidated gross margin improved by 370 basis points year-over-year to 21.7%[4]. - Adjusted EBITDA for the six months ended June 30, 2024, was $44,687,000, compared to $40,783,000 for the same period in 2023, reflecting a 10% increase[32]. - Adjusted EBITDA Margin for the six months ended June 30, 2024, was 12.8%, up from 10.6% in the same period of 2023[32]. - Adjusted EBITDA for Fluids Systems in Q2 2024 was $5,176, a decrease of 41.8% compared to $8,834 in Q2 2023[35]. Shareholder Returns - The company has a share repurchase authorization of up to $50 million, with over $30 million repurchased in 2023[4].