Newpark Resources(US:NR)2024-11-07 21:28Revenue Performance - Revenue for Q3 2024 was $44.2 million, a decrease of 13.1% from $57.3 million in Q3 2023[2] - Revenues for Q3 2024 were $44.2 million, a decrease of 33.7% from $66.8 million in Q2 2024 and a decrease of 22.8% from $57.3 million in Q3 2023[24] - The Industrial Solutions segment generated revenues of $44.2 million, with operating income of $7.3 million, both lower than the previous year[3] - Industrial Solutions revenue for the three months ended September 30, 2024, was $44,207,000, a decrease of 33.8% compared to $66,791,000 for the previous quarter[39] - Total revenues for the nine months ended September 30, 2024, were $159,965,000, slightly down from $161,193,000 for the same period in 2023[39] - The company reported a total of $206,420,000 in revenues for the trailing twelve months ended September 30, 2024[41] Income and Profitability - Operating income from continuing operations was $1.2 million, down from $6.3 million in the prior year[3] - Operating income from continuing operations for Q3 2024 was $1.2 million, down from $12.5 million in Q2 2024 and $6.3 million in Q3 2023[24] - Net loss for Q3 2024 was $(174.3) million, compared to net income of $8.0 million in Q2 2024 and a net income of $7.7 million in Q3 2023[24] - Adjusted EBITDA from continuing operations was $7.5 million, representing a margin of 17.0%, down from $12.0 million and 21.0% in Q3 2023[12] - Adjusted EBITDA for the three months ended September 30, 2024, was $12,490,000, down 49.6% from $24,782,000 in the previous quarter[39] - Operating margin (GAAP) for the three months ended September 30, 2024, was 16.5%, a decline from 29.0% in the previous quarter[39] - Adjusted EBITDA margin (non-GAAP) for the three months ended September 30, 2024, was 28.3%, down from 37.1% in the previous quarter[39] Cash and Debt Position - Total cash as of September 30, 2024, was $43 million, with total debt of $14 million[7] - Cash and cash equivalents increased to $42.9 million as of September 30, 2024, up from $0.8 million at the end of 2023[27] - The company had cash, cash equivalents, and restricted cash of $43,384 thousand at the end of the period on September 30, 2024, up from $28,404 thousand at the end of the same period in 2023[29] Assets and Liabilities - Total assets decreased to $389.6 million as of September 30, 2024, down from $642.3 million at the end of 2023[27] - Total current liabilities decreased to $51.2 million as of September 30, 2024, compared to $136.3 million at the end of 2023[27] - The company reported a deferred tax asset of $17.5 million as of September 30, 2024, significantly up from $1.4 million at the end of 2023[27] Divestitures and Capital Expenditures - The company completed the sale of its Fluids Systems segment on September 13, 2024, receiving initial cash proceeds of $70 million[2] - The company incurred a loss of $(195.7) million on the sale of discontinued operations[24] - The company experienced a loss on divestitures amounting to $195,729 thousand during the nine months ended September 30, 2024[29] - The company reported capital expenditures of $29,940 thousand for the nine months ended September 30, 2024, compared to $20,134 thousand for the same period in 2023[29] Future Outlook - For the full year 2024, the company anticipates Industrial Solutions segment revenue between $217 million and $223 million[17] - The company expects a strong rebound in rental revenues in Q4 2024 following a seasonal slowdown in Q3[4] Shareholder Returns - The company has a robust return of capital program, with a $50 million authorization for share repurchases[9] Adjusted Metrics - Adjusted income from continuing operations (non-GAAP) for the nine months ended September 30, 2024, was $10,156 thousand, compared to $13,174 thousand for the same period in 2023[30] - Adjusted EBITDA from continuing operations (non-GAAP) for the nine months ended September 30, 2024, was $37,773 thousand, compared to $36,210 thousand for the same period in 2023[36] - Free cash flow (non-GAAP) for the nine months ended September 30, 2024, was $15,544 thousand, down from $46,660 thousand in the same period of 2023[37] - The adjusted EBITDA margin from continuing operations (non-GAAP) for the nine months ended September 30, 2024, was 23.6% compared to 22.5% for the same period in 2023[36] Share Count - The weighted average shares outstanding for basic shares were 86.4 million for Q3 2024, compared to 85.5 million in Q2 2024[24] - The weighted average common shares outstanding - diluted for the nine months ended September 30, 2024, was 87,490 thousand[30]