Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (December 2018)
30 slides from Npk International's investor presentation, Dec 4, 2018
Slide 1: Newpark Resources Presentation December 2018
NEWPARK RESOURCES PRESENTATION DECEMBER 2018
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements that address expectations or projections about the future, including Newpark's strategy for growth, product develo
Slide 3: Non-GAAP Financial Measures
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 inter
Slide 4: Company Overview
COMPANY OVERVIEW Consolidated Revenues $1,400 . Revenue recovery driven by oilfield Full Year $1,200 $1,118 activity increase and end-market $1,042 First Nine Months diversification initiatives $1,000 $800 $748 Balanced income contribution from $677 . $600 $699 two operating segments: $471 $543 Reve
Slide 5: Global Strength
GLOBAL STRENGTH Revenue by Region – First Nine Months 2018 U.S. Canada Latin America Eastern Hemisphere 24% 3% 65% 8% 5
Slide 6: Fluids System - Overview
FLUIDS SYSTEM - OVERVIEW Total Segment Revenues $1,200 . Expanding IOC & NOC Full Year relationships have been key to $1,000 $965 $926 First Nine Months global market share growth: $800 – Approx. 1/3 of 2018 Fluids Systems $581 $616 $600 revenues generated from IOC/NOC $395 $538 $400 $453 customer b
Slide 7: Fluids Systems – North America
FLUIDS SYSTEMS – NORTH AMERICA North American Revenues $800 . Four years of sequential $687 $700 $654 Full Year expansion in market share $600 First Nine Months – Hold #2 drilling fluids market share $500 $395 position in U.S. land* $400 $352 $300 $355 . Service quality, technology, $183 $292 $200 o
Slide 8: Fluids Systems – North America Expansion Underway
FLUIDS SYSTEMS – NORTH AMERICA EXPANSION UNDERWAY Manufacturing . Expansion capitalizes on existing infrastructure, expertise and market credibility Deepwater Gulf of Mexico – Two deepwater projects completed with Shell; additional work planned – Completion fluids facility to be operational by end o
Slide 9: Fluids Systems – International
FLUIDS SYSTEMS – INTERNATIONAL International Revenues . International presence remains key to $350 Full Year our strategy, leveraging IOC/NOC $300 $272 $278 First Nine Months relationships globally $250 $229 $212 $220 . More stable than NAM through the $200 industry cycles $150 $183 $161 – Longer te
Slide 10: Fluids Systems – Leading Technology
FLUIDS SYSTEMS – LEADING TECHNOLOGY Developing Total Fluid Solutions . Proven drilling fluid systems designed to enhance wellsite performance, including: – Kronos™ deepwater drilling fluid systems successfully used for 8 offshore wells in 2018, including two deepwater GOM projects . Innovative reser
Slide 11: Mats & Integrated Services - Overview
MATS & INTEGRATED SERVICES - OVERVIEW Total Segment Revenues . Leading provider of engineered worksite and access solutions $180 Full Year $160 $153 First Nine Months – In early phases of global market $161 $140 $132 penetration, where our patented $120 $116 systems reduce operators’ costs and $100
Slide 12: Mats - Competitive Advantages Across Industries
MATS - COMPETITIVE ADVANTAGES ACROSS INDUSTRIES Superior Transportation, Install & Enhanced EH&S Scale & Quality Remediation Efficiency Attributes Responsiveness DO WE HAVE PHOTOS OF ACTUAL INSTALL? 12
Slide 13: Mats – Core Market Overview
MATS – CORE MARKET OVERVIEW Exploration & Production Pipeline SIZE SIZE PENETRATION PENETRATION HISTORY HISTORY Transmission & Distribution Construction & Other SIZE SIZE PENETRATION PENETRATION HISTORY HISTORY 13
Slide 14: Mats – Accelerating Product Development
MATS – ACCELERATING PRODUCT DEVELOPMENT Leveraging R&D center to drive innovation, including next-generation matting systems, accessories and adaptations EPZ Grounding System – Patented system – Elevates worksite safety in utility transmission and distribution markets – Fully integrated with Dura-Ba
Slide 15: Mats Innovation – Above Ground Storage Tank
MATS INNOVATION – ABOVE GROUND STORAGE TANK Water management for E&P and Pipeline is a growing issue Modular Above Ground Storage Tank (AST) . Utilizing DURA-BASE matting, modular design enables multiple size configurations to support site design limitations . Industry leading 80,000 Bbl. max capac
Slide 16: Financial Focus
FINANCIAL FOCUS Operating Cash Flow Consistent positive operating $140 $122 cash flow generation through cycle $120 $100 $89 . Working capital investments $80 impacting 2018 cash flow $60 $38 $ Millions $40 $20 Short-Term Focus $20 $11 $0 . Pursue repatriation of available foreign 2014 2015 2016 201
Slide 17: Appendix
APPENDIX F sewnanx
Slide 18: Consolidated Statements of Operations (Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended September June 30, September September September (In thousands, except per share data) 30, 2018 2018 30, 2017 30, 2018 30, 2017 Revenues$ 235,329 $ 236,262 $ 201,663 $ 698,884 $ 543,374 Cost of revenues 194,730 18
Slide 19: Operating Segment Results (Unaudited)
OPERATING SEGMENT RESULTS (UNAUDITED) Three Months Ended Nine Months Ended September June 30, September September September (In thousands) 30, 2018 2018 30, 2017 30, 2018 30, 2017 Revenues Fluids systems$ 180,970 $ 179,738 $ 166,726 $ 538,087 $ 453,399 Mats and integrated services 54,359 56,524 34,9
Slide 20: Consolidated Balance Sheets (Unaudited)
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share data) September 30, 2018 December 31, 2017 ASSETS Cash and cash equivalents$ 52,243 $ 56,352 Receivables, net 264,014 265,866 Inventories 202,707 165,336 Prepaid expenses and other current assets 18,016 17,483 Total current assets 5
Slide 21: Consolidated Statements of Cash Flows (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended September 30, (In thousands) 2018 2017 Cash flows from operating activities: Net income$ 21,712 $ 3,302 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 34,346 28,998 Stock‐based
Slide 22: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) 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 measures include e
Slide 23: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) Nine Months Ended September Fluids Systems Twelve Months Ended December 31, 30, (In thousands) 2013 2014 2015 2016 2017 2018 Operating income (loss) (GAAP) (2) $ 72,604 $ 95,600 $ (86,770) $ (43,631) $ 27,580 $ 32,092 Depreciation and amortization 26,679 22,93
Slide 24: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) 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 December 31, September 30, (In thousands) 2013 2014 201
Slide 25: Experienced Leadership
EXPERIENCED LEADERSHIP Paul Howes President & Chief Executive Officer Gregg Piontek Senior Vice President & Chief Financial Officer Chip Earle Vice President, General Counsel & Chief Administrative Officer, Chief Compliance Officer & Corporate Secretary Bruce Smith Interim President Fluids Systems M
Slide 26: Management Biographies
MANAGEMENT BIOGRAPHIES Paul L. Howes, President & CEO: Paul L. Howes joined Newpark’s Board of Directors and was appointed as the Chief Executive Officer in March 2006. In June 2006, Mr. Howes was also appointed as the President. Mr. Howes’ career has included experience in the defense industry, che
Slide 27: Management Biographies
MANAGEMENT BIOGRAPHIES Edward “Chip” Earle, Vice President, General Counsel & Chief Administrative Officer, Chief Compliance Officer & Corporate Secretary: Chip joined Newpark in August 2018 as Vice President and Executive Advisor as part of a succession plan to become the Vice President, General Co
Slide 28: Management Biographies
MANAGEMENT BIOGRAPHIES Matthew Lanigan, President Mats and Integrated Services: Matthew joined Newpark in April 2016, as President of Newpark Mats & Integrated Services. Matthew began his professional career at ExxonMobil in Australia working on rigs as a Drilling & Completions Engineer, progressing
Slide 29: Board of Directors
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
Slide 30: Focused on Customer's Needs
FOCUSED ON CUSTOMER’S NEEDS
Newpark Resources — Investor Presentation (December 2018) on 6ix