Newpark Resources(US:NR)2024-08-06 16:58Revenue Performance - Total revenues for the second quarter of 2024 decreased by 2% to $179.0 million compared to $183.3 million in the second quarter of 2023[65] - For the first half of 2024, total revenues decreased by 9% to $348.1 million, with a notable 19% decrease in North America revenues[73] - Total revenues for the Fluids Systems segment decreased by 17% to $232.4 million in the first half of 2024, compared to $279.4 million in the first half of 2023[82] - North America revenues for the Fluids Systems segment fell 38% to $97.6 million, primarily due to a decline in U.S. market share and activity[83] - The Industrial Solutions segment reported an 11% increase in total revenues to $115.8 million for the first half of 2024, up from $103.9 million in the same period of 2023[86] Operating Income - Total operating income for the second quarter of 2024 was $13.3 million, a significant increase of 126% compared to $5.9 million in the same quarter of 2023[65] - The Fluids Systems segment generated operating income of $2.3 million, up from $2.0 million in the prior year, despite incurring $1.1 million in facility exit and transaction costs[67] - Industrial Solutions segment operating income rose to $19.4 million, compared to $12.8 million in the second quarter of 2023, attributed to higher product sales revenues[69] - Operating income for the Fluids Systems segment rose to $9.2 million in the first half of 2024, compared to $5.4 million in the first half of 2023[85] - The Industrial Solutions segment generated operating income of $32.3 million for the first half of 2024, an increase from $27.3 million in the first half of 2023[87] Net Income and Cash Flow - Net income for the first half of 2024 was $15.3 million, significantly up from $7.3 million in the first half of 2023[72] - Net cash provided by operating activities was $39.5 million for the first half of 2024, compared to $36.8 million for the first half of 2023[89] Costs and Expenditures - Cost of revenues for the first half of 2024 decreased by 13% to $274.7 million, reflecting the overall decline in revenues[74] - Capital expenditures for the first half of 2024 were $20.5 million, primarily focused on expanding the Industrial Solutions segment rental fleet[89] - The company expects capital expenditures in 2024 to be approximately $30 million to $40 million, with a focus on expanding the mat rental fleet[89] Debt and Liquidity - Total debt decreased to $57.98 million as of June 30, 2024, down from $75.03 million at the end of 2023, resulting in a total debt to capitalization ratio of 12.0%[90] - The company anticipates using proceeds from the Fluids Systems sale process to repay a significant portion of existing debt, enhancing liquidity for long-term strategic initiatives[89] Tax Provision - The provision for income taxes for the first half of 2024 was $6.2 million, with an effective tax rate of 29%, compared to 37% in the prior year[80]