Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (August 2022)
21 slides from Npk International's investor presentation, Aug 3, 2022
Slide 1: Investor Presentation August 2022
Investor Presentation August 2022
Slide 2: Notice to Investors: Forward Looking Statements
Notice to Investors 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 other than statements of historical facts are forward-looking statements. Words such as “will,
Slide 3: Why Invest in Newpark Resources?
Why Invest in Newpark Resources? 3 Leading Provider of Sustainable Technologies and Services Across the Energy Industry Global presence in large-scale energy markets Proven technologies that offer tangible economic and ESG benefits Reshaping the balance sheet and capital structure to support growth
Slide 4: Who are Newpark Resources Today?
Who are Newpark Resources Today? 4 $947 $820 $493 $615 $702 $116 $82 ($7) $39 $45 ($40) $0 $40 $80 $120 $160 $0 $200 $400 $600 $800 $1,000 2018 2019 2020 2021 TTM Q2 2022 EB IT D A (M IL LI O N S) Re ve nu es (M IL LI O N S) CONSOLIDATED REVENUES & ADJUSTED EBITDA** Revenues Adjusted EBITDA $83 $70
Slide 5: Strong Foundations for Value Creation & Growth
Strong Foundations for Value Creation & Growth Recognized industry leader, leveraging decades of experience PROVEN CREDIBILITY Sustainable and economically advantaged technology offerings TECHNOLOGY FOCUSED Newpark Service Advantage recognized by global customer base* SERVICE CULTURE Established pre
Slide 6: Serving Large-Scale, Long-Term End Markets
Serving Large-Scale, Long-Term End Markets 6 Multi Billion-Dollar Markets Provide Opportunity for Each Newpark Division to Reach Scale GLOBAL ANNUAL ELECTRICAL GRID INVESTMENT ~$14T Investment in global electrical grid to enable “electrification of everything” ~$12T - $26T Investment in Oil & Gas pr
Slide 7: Clear Strategic Focus
Clear Strategic Focus 7 Prioritize investment into high returning industrial growth markets aligned to energy transition and sustainability tailwinds Leverage strong foundations to expand sustainable technology and service solutions Laser focus on operating cost and balance sheet discipline to fund
Slide 8: Ability to Transition Business in Evolving Markets
Ability to Transition Business in Evolving Markets 8 2018 vs 2022 YTD RELATIVE EBITDA CONTRIBUTION O&G Utilities & Industrial From Origins as US Land Oil & Gas Services Provider Through Evolution by Focusing on Sustainable Technology To Global Sustainable Technology and Services Provider across the
Slide 9: Proven Commitment to ESG
Proven Commitment to ESG 9 Board of Directors ESG Committee Provides Oversight Industrial Solutions Fluids Systems • Water-based fluids lowers environmental impact, risk to people, and overall carbon footprint • Brine-tolerant chemicals reduces need for fresh water in stimulation • Safety drives eve
Slide 10: Prioritizing Investment in High Returning Industrial Growth
Prioritizing Investment in High Returning Industrial Growth 10 11% CAGR in Revenues from Utilities & Industrial Markets from 2018 - 2021 * Source: Edison Electric Institute, December 2021 ** Reflects management estimate $64 $61 $60 $66 $71 $82 $86 $83 $85 $81 $43 $45 $39 $27 $43 $48 $58 $66 $51 $59
Slide 11: Responsibly Funding Our Transition
$37 $28 $0 $10 $20 $30 $40 2019 First Half 2022 Annualized $14 $6 $0 $4 $8 $12 $16 2019 First Half 2022 Annualized INTEREST EXPENSE 3% Average borrowing rate on outstanding debt • Leveraging asset-based lending to drive reductions in borrowing cost • Primary bank facility matures in May 2027 Respons
Slide 12: Business Segment Revenue Contribution
Business Segment Revenue Contribution Industrial Solutions Fluids Systems 12 $116 $90 $37 $37 $38 $115 $110 $93 $149 $139 $83 $70 $34 $61 $54 $0 $20 $40 $60 $80 $100 $120 $0 $50 $100 $150 $200 $250 2018 2019 2020 2021 TTM Q2 2022 AD JU ST ED E BI TD A (M IL LI O N S) RE VE N U E (M IL LI O N S) Util
Slide 13: FCF Generation and Capital Allocation Philosophy
FCF Generation and Capital Allocation Philosophy 13 Stabilizing Business Post-COVID & Supply Chain Disruption; Clear Priorities Established $21 $41 $52 ($9) ($31) ($40) ($20) $0 $20 $40 $60 2018 2019 2020 2021 First Half 2022 M IL LI O N S FREE CASH FLOW (FCF)* Net Income adj. for non-cash Items Inc
Slide 14: Why Invest in Newpark Resources?
Why Invest in Newpark Resources? Global presence in large scale energy markets Demonstrated ability to adapt and grow Operate at both ends of the energy transition Proven technologies with economic and ESG benefits Focusing investment on higher growth industrial opportunities Capital structure to su
Slide 15: Appendix
APPENDIX
Slide 16: Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited) 16 (In thousands, except per share data) June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Revenues 194,144$ 176,438$ 142,249$ 370,582$ 283,421$ Cost of revenues 168,206 150,988 124,106 319,194 244,097 Selling, general and admini
Slide 17: Operating Segment Results (unaudited)
Operating Segment Results (unaudited) 17 (In thousands) June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Revenues Fluids Systems 145,261$ 141,014$ 97,093$ 286,275$ 184,942$ Industrial Solutions 48,883 35,424 43,287 84,307 92,057 Industrial Blending - - 1,869 - 6,422 Total reven
Slide 18: Consolidated Balance Sheets (unaudited)
Consolidated Balance Sheets (unaudited) 18 (In thousands, except share data) June 30, 2022 December 31, 2021 ASSETS Cash and cash equivalents 20,159$ 24,088$ Receivables, net 192,801 194,296 Inventories 190,171 155,341 Prepaid expenses and other current assets 17,800 14,787 Total current assets 420,
Slide 19: Consolidated Statements of Cash Flows
(In thousands) 2022 2021 Cash flows from operating activities: Net income (loss) (5,231)$ (11,360)$ Adjustments to reconcile net loss to net cash provided by (used in) operations: Impairment 7,905 - Depreciation and amortization 20,563 21,493 Stock-based compensation expense 3,198 3,273 Provision fo
Slide 20: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 20 Consolidated (In thousands) 2018 2019 2020 2021 2021 2022 Net cash provided by (used in) operating activities (GAAP) 63,403$ 72,286$ 55,791$ (3,013)$ 25,837$ (23,011)$ Capital expenditures (45,141) (44,806) (15,794) (21,793) (10,477) (9,515) Proceeds from s
Slide 21: Non-GAAP Financial Measures (unaudited)
21 Non-GAAP Financial Measures (unaudited)
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