RPC(US:RES)2025-02-28 19:42Financial Performance - Revenues for 2024 totaled $1.4 billion, a decrease of 12.5% compared to 2023, primarily due to lower industry activity levels and competitive pricing [139]. - Operating profit for 2024 was $97.5 million, a 60.2% decrease from the prior year, attributed to lower industry activity and reduced fixed cost absorption [140]. - Net income for 2024 was $91.4 million, or $0.43 earnings per share, compared to $195.1 million, or $0.90 earnings per share in 2023 [140]. - Adjusted EBITDA for 2024 was $233.0 million, with an Adjusted EBITDA margin of 16.5%, down from $374.4 million and 23.1% in 2023 [162]. - Net income for the year ended December 31, 2024, was $91.4 million, a decrease of 53.2% compared to $195.1 million in 2023 [168]. - Revenues for 2024 were $1.415 billion, down 12.5% from $1.617 billion in 2023 [168]. - Adjusted EBITDA for 2024 was $233.0 million, a decline of 37.8% from $374.4 million in 2023 [168]. - Free cash flow decreased to $129.5 million in 2024 from $213.8 million in 2023, reflecting a reduction of 39.3% [170]. Cash Flow and Capital Expenditures - Cash provided by operating activities decreased to $349.4 million in 2024 from $394.8 million in 2023 [163]. - Free cash flow decreased to $129.5 million in 2024 from $213.8 million in 2023, primarily due to lower net income and increased capital expenditures [163]. - Capital expenditures totaled $219.9 million in 2024, including the purchase of a new Tier 4 dual-fuel fleet [141]. - Capital expenditures rose to $219.9 million in 2024, up from $181.0 million in 2023, primarily due to the purchase of a new pressure pumping fleet [171]. - The company expects capital expenditures to be between $150 million and $200 million in 2025, focusing on maintenance and growth opportunities [176]. Segment Performance - Technical Services segment revenues were $1.3 billion in 2024, a 12.5% decrease compared to the prior year, driven by lower pressure pumping activity [152]. - Support Services segment revenues decreased by 12.2% in 2024, primarily due to lower activity levels within rental tools [152]. Tax and Financial Position - The effective tax provision rate was 18.9% for 2024, down from 23.9% in the prior year, due to beneficial discrete adjustments on decreased pretax income [160]. - Cash and cash equivalents increased to $326.0 million as of December 31, 2024, compared to $223.3 million in 2023 [169]. Shareholder Returns and Future Outlook - The company has a stock buyback program with 12.8 million shares remaining available for repurchase as of December 31, 2024 [178]. - The company declared a quarterly cash dividend of $0.04 per share, payable on March 10, 2025 [181]. - The company anticipates that long-term demand for oil and natural gas will drive increased activity in its operating basins [183]. Risk Management - The Company is subject to interest rate risk exposure through borrowings on its revolving credit facility, with no outstanding interest-bearing advances as of December 31, 2024 [200]. - The Company is exposed to foreign exchange rate risk; however, the majority of transactions occur in U.S. currency, minimizing material effects on financial results [201]. Business Combinations and Impairment Testing - The Company conducts impairment tests on long-lived assets whenever events indicate that the carrying value may not be recoverable, comparing estimated future undiscounted cash flows to the carrying amount [194]. - The acquisition of a business requires recognizing assets and liabilities at acquisition date fair values, with any excess consideration recorded as goodwill [195]. - Adjustments to the assets acquired and liabilities assumed may occur during the measurement period, which can last up to one year from the acquisition date [196]. - Management must make significant estimates and assumptions during business combinations, including for intangible assets and contingent considerations [198].