RPC(US:RES)2025-04-24 19:28Financial Performance - Total revenues for Q1 2025 were $332.9 million, a decrease of $45.0 million or 11.9% compared to Q1 2024[105] - Net income for Q1 2025 was $12.0 million, or $0.06 diluted earnings per share, down from $27.5 million, or $0.13 diluted earnings per share in Q1 2024[106] - EBITDA for Q1 2025 was $48.9 million, with an EBITDA margin of 14.7%, compared to $63.1 million and 16.7% in Q1 2024[129] - Cash provided by operating activities decreased to $39.9 million in Q1 2025 from $56.6 million in Q1 2024[130] - Cost of revenues decreased by 11.8% to $243.9 million in Q1 2025, in line with the decrease in revenues[121] - Selling, general and administrative expenses increased to $42.5 million in Q1 2025, primarily due to ERP system implementation costs[122] Cash Flow and Capital Expenditures - Free cash flow increased to $7.6 million in Q1 2025, up from $3.8 million in Q1 2024, primarily due to lower capital expenditures[130] - Cash used for investing activities decreased by $21.6 million to $27.4 million for the three months ended March 31, 2025, primarily due to a reduction in capital expenditures from $52.8 million in 2024 to $32.3 million in 2025[140] - Cash used for financing activities decreased by $7.0 million to $11.7 million for the three months ended March 31, 2025, mainly due to fewer repurchases of common shares[141] - The company expects capital expenditures, including recently acquired Pintail, to be between $165 million and $215 million in 2025, with $32.3 million already spent as of March 31, 2025[149] Revenue Segments and Market Conditions - The Technical Services segment revenues decreased by 12.5% in Q1 2025, primarily due to lower pressure pumping revenues[117] - The average price of natural gas increased by 70.4% in Q1 2025 compared to the same period in the prior year[116] - International revenues represented 2.4% of total revenues in Q1 2025, slightly down from 2.6% in Q1 2024[115] - The company believes that international revenues will continue to be less than 10% of consolidated revenues in the foreseeable future[175] - The company projects that long-term demand for oil and natural gas should drive increased activity in most operating basins[174] - The company acknowledges that the recent decline in oil prices could lead customers to delay completion activities[172] Future Outlook and Strategic Plans - The company is currently evaluating future investments and options to upgrade equipment across the business[149] - The company continues to monitor the supply and demand for its services, with a focus on increasing customer preferences for lower emission and more efficient equipment[160] - The company expects to continue paying cash dividends to common stockholders, subject to industry conditions and financial performance[175] - The company has ongoing sales and use tax audits that could result in unfavorable outcomes, but the exposure has been recorded to the extent it is estimable[150] - The company filed a shelf registration statement on April 23, 2025, allowing for the offering of securities up to $300 million, subject to market conditions[148] Liquidity and Financial Health - The company anticipates that the liquidity provided by existing cash and cash equivalents will be sufficient to meet requirements for at least the next twelve months[175] - The company has a $100.0 million revolving credit facility with $83.9 million available as of March 31, 2025, and no outstanding borrowings[144] - The company is subject to interest rate risk exposure through borrowings, but as of March 31, 2025, there were no outstanding interest-bearing advances on its credit facility[176] Dividends and Shareholder Returns - A regular quarterly cash dividend of $0.04 per share was declared, payable on June 10, 2025, to common stockholders of record on May 9, 2025[154]