Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (December 2017)
29 slides from Npk International's investor presentation, Dec 4, 2017
Slide 1: Newpark Resources Presentation December 2017
N E W P A R K R E S O U R C E S P R E S E N TAT I O N D E C E M B E R 2 0 1 7
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including Newpark's strat
Slide 3: Non-GAAP Financial Measures
This presentation includes references to financial measurements that are supplemental to the Company’s financial performance as calculated in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures include earnings before interest, taxes, depreciation and
Slide 4: Company Overview
$984 $1,042 $1,118 $677 $471 $543 $334 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2012 2013 2014 2015 2016 2017 83% 17% Two Operating Segments: Fluids Systems Oil and Gas exploration Mats and Integrated Services Oil and Gas exploration Electrical transmission and distribution Pipeline P
Slide 5: Global Strength: Revenue by Region
Revenue by Region G L O B A L S T R E N G T H 5 67% 57% 45% 61% 7% 8% 7% 8% 8% 7% 9% 5% 18% 28% 39% 26% 2014 2015 2016 First Nine Months U.S. Canada Latin America EMEA/APAC
Slide 6: Strengthened by Our Investments
S T R E N G T H E N E D B Y O U R I N V E S T M E N T S Elevated capital campaign completed Infrastructure investments open new markets and significantly enhance our competitiveness Reflects our commitment to be the global leader in fluids and mats technology 6 Fluids: Manufacturing Facility &
Slide 7: Fluids Systems - Overview
55% 9% 30% 6% U.S. Canada EMEA/APAC Latin America Largest independent drilling fluids provider 3rd largest drilling fluids company worldwide* Seek to capitalize on strong market position and extend Fluids’ product offerings to completions and other applications Expanding global market share,
Slide 8: Fluids Systems - Technology
F L U I D S S Y S T E M S - T E C H N O L O G Y 8 Proven drilling fluid systems designed to enhance wellsite performance Evolution® high-performance, water-based technology for global applications Fusion™ brine fluid system creates a unique enhancement for shale basins Kronos™ deepwater dril
Slide 9: Fluids Systems - North America
2,283 2,114 2,241 1,170 639 1,068 10% 11% 12% 13% 14% 15% 16% - 500 1,000 1,500 2,000 2,500 2012 2013 2014 2015 2016 First Nine Months NAM Rig Count Market Share $615 $654 $687 $352 $183 $123 $292 $0 $100 $200 $300 $400 $500 $600 $700 $800 2012 2013 2014 2015 2016 2017 Revenues impacted by lower d
Slide 10: Fluids Systems - International
$246 $272 $278 $229 $212 $161 $161 $0 $50 $100 $150 $200 $250 $300 $350 2012 2013 2014 2015 2016 2017 $117 $137 $166 $164 $167 $87 $99 $84 $47 $40 $42 $36 $28 $18 $5 2012 2013 2014 2015 2016 EMEA LATAM APAC International presence remains key to our strategy More stable than NAM, through the indu
Slide 11: Mats & Integrated Services - Overview
$122 $116 $153 $96 $76 $51 $90 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2012 2013 2014 2015 2016 2017 Leading provider of engineered worksite solutions Established core rental business in NAM exploration market, where mats reduce operator’s costs and improve environmental protection during dr
Slide 12: Mats - Competitive Advantages Across Industries
M AT S - C O M P E T I T I V E A D V A N TA G E S A C R O S S I N D U S T R I E S 12 Superior Quality Enhanced EH&S Attributes Scale & Responsiveness DO WE HAVE PHOTOS OF ACTUAL INSTALL? PHOTO FROM PG 3 OF BROCHURE? Transportation, Install & Remediation Efficiency
Slide 13: Mats - Accelerating Diversification
Diversifying beyond the wellsite Accelerate penetration of non- exploration markets, both domestically and internationally Larger addressable market Similar value drivers as exploration market Innovate and commercialize differentiated system enhancements, including EPZ Grounding System™ fo
Slide 14: Mats - Well Service Group / Utility Access Solution Acquisition
M AT S – W E L L S E R V I C E G R O U P / U T I L I T Y A C C E S S S O L U T I O N A C Q U I S I T I O N 14 Completed November 2017 Total consideration included $45m cash and $32m equity WSG served as strategic logistics and installation service partner since 2012 Expands complementary ser
Slide 15: Mats - Diversification Is Key to Earnings Stability
M AT S – D I V E R S I F I C AT I O N I S K E Y T O E A R N I N G S S TA B I L I T Y 15 $122 $116 $153 $96 $76 0% 10% 20% 30% 40% 50% 60% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2012 2013 2014 2015 2016 R e ve n u e ($ m il) EB IT D A M ar gi n * * EBITDA and EBITDA margin are non-GAAP fina
Slide 16: Financial Focus
F I N A N C I A L F O C U S Short-Term Actions Focused on managing cost structure as activity levels improve Continuing efforts to optimize working capital Limit capital investments beyond growth/diversification projects Long-term Focus Continue investing in strategic projects in fluids
Slide 17: Appendix
A P P E N D I X
Slide 18: Consolidated Statements of Operations
C O N S O L I D AT E D S TAT E M E N T S O F O P E R AT I O N S 18 Note: For all periods presented, we excluded the assumed conversion of the Convertible Notes in calculating diluted earnings per share as the effect was anti-dilutive. Three Months Ended Nine Months Ended (In thousands, except per sh
Slide 19: Operating Segment Results
O P E R AT I N G S E G M E N T R E S U LT S 19 (1) Operating results for the third quarter and first nine months of 2016 included $2.6 million of charges associated with asset demobilization and wind- down of our operations in Uruguay following the customer decision to discontinue offshore explorati
Slide 20: Consolidated Balance Sheets
C O N S O L I D AT E D B A L A N C E S H E E T S 20 (In thousands, except share data) September 30, 2017 December 31, 2016 ASSETS Cash and cash equivalents $ 64,741 $ 87,878 Receivables, net 262,105 214,307 Inventories 164,384 143,612 Prepaid expenses and other current assets 104,703 17,143 Total cu
Slide 21: Consolidated Statements of Cash Flow
C O N S O L I D AT E D S TAT E M E N T S O F C A S H F L O W 21 Nine Months Ended September 30, (In thousands) 2017 2016 Cash flows from operating activities: Net income (loss) $ 3,302 $ (40,655 ) Adjustments to reconcile net income (loss) to net cash provided by operations: Impairments and other no
Slide 22: Non-GAAP Financial Measures
N O N - G A A P F I N A N C I A L M E A S U R E S 22 To help understand the Company’s financial performance, the Company has supplemented its financial results that it provides in accordance with generally accepted accounting principles (“GAAP”) with non-GAAP financial measures. Such financial measu
Slide 23: Non-GAAP Financial Measures
N O N - G A A P F I N A N C I A L M E A S U R E S 23 (2) 2015 Fluids Systems operating results and EBITDA included $82.7 million of pre-tax charges associated with goodwill and other asset impairments and workforce reductions. 2016 Fluids Systems operating results and EBITDA included $15.6 million o
Slide 24: Non-GAAP Financial Measures
N O N - G A A P F I N A N C I A L M E A S U R E S 24 The following table reconciles the Company’s ratio of total debt to capital calculated in accordance with GAAP to the non-GAAP financial measure of the Company’s ratio of net debt to capital: Consolidated September 30, (In thousands) 2012 2013 201
Slide 25: Experienced Leadership
E X P E R I E N C E D L E A D E R S H I P • Paul Howes President & CEO • Gregg Piontek Vice President & CFO • Mark Airola SVP, GC & Admin Officer • Phil Vollands President Fluids Systems • Bruce Smith Chief Technology Officer Fluids Systems • Matthew Lanigan President Mats & Integrated Services • Id
Slide 26: Management Biographies
M A N A G E M E N T B I O G R A P H I E S Paul L. Howes, President & CEO: Paul L. Howes joined our Board of Directors and was appointed as our Chief Executive Officer in March 2006. In June 2006, Mr. Howes was also appointed as our President. Mr. Howes’ career has included experience in the defense
Slide 27: Management Biographies (continued)
Phillip T. Vollands, President, Fluids Systems: Phil joined Newpark in October 2013 as President, North America Fluids Systems and became President, Western Hemisphere in 2016. Prior to Newpark, he was Vice President, Tubular Running Services for Weatherford International from 2010 to 2013. Previous
Slide 28: Board of Directors
Our Board members represent a desirable mix of diverse backgrounds, skills and experiences and we believe they all share the personal attributes of effective directors. They each hold themselves to the highest standards of integrity and are committed to the long-term interests of our stockholders. B
Slide 29: Focused on Customer's Needs
‘4 T mie 2 ants ig “FOCUSED ON CUSTOMER’S NEEDS = DURA-BASECCT T CLEANING purA-BASE™DEFENDE THE LINER-LESS SPILL COI c
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