Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (June 2020)
27 slides from Npk International's investor presentation, Jun 12, 2020
Slide 1: Newpark Resources
Newpark Resources June 2020 TF scweanx
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 other than statements of historical facts are forward‐looking statements. Words such as “will,” “may,” “could,” “w
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 Our strategic playbook has led to improved $1,000 $947 diversification of our revenue stream in Full Year $900 recent years, reducing our dependency on $820 First Quarter $800 $748 oil and gas customers, better positioning $700 the Company to navigate through t
Slide 5: Committed To Sustainability
Committed To Sustainability ENVIRONMENTALLY ROBUST GOVERNANCE HIGH SOCIAL STANDARDS FOCUSED PRODUCT OFFERING PROGRAMS Composite Matting System Safety First Compliance Program • Manufactured with 100% recyclable • Aim for Zero Incidents • Annual compliance training and Code materials • Training of Et
Slide 6: COVID-19 Impact
COVID‐19 Impact First Quarter 2020 ‐ Revenue 10% U.S. Company Impact of COVID‐19 • Both operating segments considered “essential services” 27% Europe, Middle East, 63% • Limited number of employee cases, Africa none serious Rest of World Primary Commercial Impact of COVID‐19 • Fluids Systems (EMEA r
Slide 7: Fluids Systems Overview
Fluids Systems Overview Total Segment Revenues $800 $716 Full Year $700 $620 $616 First Quarter $600 PROVIDING TOTAL FLUIDS SOLUTION $500 millions) $400 $395 • Non‐aqueous ($ • $300 Drilling Water‐based • Specialty Systems $200 Fluids • Industrial Minerals Revenues $100 $161 $133 • Solids Control an
Slide 8: Fluids Systems – North America
Fluids Systems –North America North American Revenues U.S. Land $600 Full Year $477 First Quarter • Unprecedented market collapse in recent months, $500 $427 $395 with market rig count now 70% below 2019 $400 average ($MIL) $300 • Swift actions taken to rationalize cost structure $183 $200 and monet
Slide 9: Fluids Systems - International
Fluids Systems ‐ International International Revenues $250 $239 Full Year EMEA $212 $220 First Quarter • Beyond near‐term COVID‐19 impact on customer $193 $200 operations, region anticipated to demonstrate $150 greater stability, consistent with 2015‐2016 millions) • ($ Foundation is built upon long
Slide 10: Mats & Integrated Services - Overview
Mats & Integrated Services ‐ Overview Total Segment Revenues Full Year Value Proposition $250 $231 First Quarter • Leading provider of engineered worksite $200 $200 access solutions, designed to: o Reduce customer operating costs $150 millions) $132 Reduce customer execution risk o ($ o Improve envi
Slide 11: Mats – Environmental Commitment
Mats – Environmental Commitment >360,000* >8,200* TONS >4.6* Million Trees Saved Since 1998 CO2 Emission Reduction Miles Saved This Year This Year Our fully recyclable Lighter weight mats require Fewer truckloads mean less composite matting program fewer truckloads, thereby miles driven and safer pr
Slide 12: Mats – Core Market Overview
Mats –Core Market Overview TRANSMISSION & DISTRIBUTION PIPELINE SIZE SIZE PENETRATION PENETRATION HISTORY HISTORY EXPLORATION & PRODUCTION CONSTRUCTION & OTHER SIZE SIZE PENETRATION PENETRATION HISTORY HISTORY 12
Slide 13: Financial Focus
Financial Focus Net Capital Expenditures ($MIL) Cash Flow and Liquidity $10 Capital Expenditures Proceeds from PP&E Sales (1) Net • Swiftly restructuring U.S. Fluids business to $Mil $5 minimize near‐term cash burn in) (2) $0 $(2) $(2) $(3) • $280m of net working capital provides tailwind (Used ‐$5
Slide 14: Appendix
APPENDIX e NEWPARK
Slide 15: Consolidated Statements of Operations (Unaudited)
Financial Report CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 15
Slide 16: Operating Segment Results (Unaudited)
Financial Report OPERATING SEGMENT RESULTS (UNAUDITED) (1) Fluids Systems operating loss for the three months ended March 31, 2020 includes a total of $1.2 million of charges associated with inventory write- downs and severance costs. Fluids Systems operating loss for the three months ended December
Slide 17: Consolidated Balance Sheets (Unaudited)
Financial Report CONSOLIDATED BALANCE SHEETS (UNAUDITED) 17
Slide 18: Consolidated Statements of Cash Flows (Unaudited)
Financial Report CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 18
Slide 19: Non-GAAP Financial Measures (Unaudited)
Financial Report NON‐GAAP FINANCIAL MEASURES (UNAUDITED) The following tables reconcile the Company’s net income (loss) or segment operating income (loss) calculated in accordance with GAAP to the non-GAAP financial measure of EBITDA: (1) 2020 net loss and EBITDA include a total of $2.3 million of c
Slide 20: Non-GAAP Financial Measures (Unaudited)
Financial Report NON‐GAAP FINANCIAL MEASURES (UNAUDITED) (1) 2020 Fluids Systems operating loss and EBITDA includes a total of $1.2 million of charges associated with inventory write-downs and severance costs. 2019 Fluids Systems operating income and EBITDA include $18.7 million of charges, consisti
Slide 21: Non-GAAP Financial Measures: Free Cash Flow
Financial Report NON‐GAAP FINANCIAL MEASURES (UNAUDITED) The following table reconciles the Company’s net cash provided by operating activities calculated in accordance with GAAP to the non-GAAP financial measure of the Company's free cash flow: 21
Slide 22: Non-GAAP Financial Measures: Net Debt to Capital
Financial Report 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: 22
Slide 23: Executive Management
Executive Management 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 David Paterson President F
Slide 24: Management Biographies
Executive Management 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
Slide 25: Management Biographies
Executive Management 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 P
Slide 26: Management Biographies
Executive Management 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
Slide 27: 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
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