Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (September 2019)
30 slides from Npk International's investor presentation, Sep 17, 2019
Slide 1: Newpark Resources Presentation September 2019
NEWPARK RESOURCES PRESENTATION SEPTEMBER 2019
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 inte
Slide 4: Company Overview
COMPANY OVERVIEW Consolidated Revenues $1,400 Full Year . Newpark’s value-proposition is driven by $1,200 $1,118 First Half a focus on providing leading technology that reduces customer’s total operating $1,000 $947 costs, risk, and environmental impact. $800 $748 Two operating segments: $677 $600 $
Slide 5: Global Strength
GLOBAL STRENGTH First Half 2019 - Revenue by Region U.S. Canada Latin America Eastern Hemisphere 23% 1% 5% 71% 5
Slide 6: Fluids Systems - Overview
FLUIDS SYSTEMS - OVERVIEW Total Segment Revenues $1,200 . Expanding IOC & NOC relationships Full Year have been key to global market share $1,000 $965 First Half growth: $800 $716 – Newpark share positioned #3 globally, #2 North $581 $616 $600 America* $400 $395 – Nearly 1/3 of segment revenues gene
Slide 7: Fluids Systems – Leading Technology
FLUIDS SYSTEMS – LEADING TECHNOLOGY Developing Total Fluids Solutions . Our focus on sustainability is a driving force behind breakthroughs in our Evolution high performance water-based drilling fluid systems, which offer environmentally-sound solutions to the rigorous operational demands of today’s
Slide 8: Fluids Systems – North America
FLUIDS SYSTEMS – NORTH AMERICA North American Revenues $800 $687 Full Year $700 . Revenue recovery has outperformed First Half $600 industry rig counts, driven primarily $500 $477 by market share expansion, entry $395 $400 $352 into Gulf of Mexico, and increases in $300 drilled footage per rig $183
Slide 9: Fluids Systems – Market Expansion Underway
FLUIDS SYSTEMS – MARKET EXPANSION UNDERWAY Manufacturing . Expansion capitalizes upon existing Fluids Systems infrastructure, expertise and market credibility Deepwater Gulf of Mexico – Building upon initial success, market share expanding with additional deepwater rigs in 2019; presence expanding t
Slide 10: Fluids Systems – International
FLUIDS SYSTEMS – INTERNATIONAL International Revenues $350 Full Year . Strong IOC/NOC presence has been key $300 $278 First Half to revenue and profitability stability $250 $239 $229 $212 $220 through the industry cycle $200 . International IOC/NOC contract stability $150 impact by: $100 $126 $95 –
Slide 11: Mats & Integrated Services - Overview
MATS & INTEGRATED SERVICES - OVERVIEW $250 Total Segment Revenues $231 . Leading provider of engineered $200 Full Year worksite and access solutions, where First Half our systems: $153 $150 $132 – Reduce customer operating costs – Reduce customer execution risk $96 $100 $106 – Improve environmental
Slide 12: Mats - Competitive Advantages Across Industries
MATS - COMPETITIVE ADVANTAGES ACROSS INDUSTRIES Transportation, Enhanced Superior Install, and Environmental Scale and Quality Remediation Sustainability & Responsiveness Efficiency Safety 12
Slide 13: Mats – Core Market Overview
MATS – CORE MARKET OVERVIEW Exploration & Production Energy Infrastructure - Pipeline SIZE SIZE PENETRATION PENETRATION HISTORY HISTORY Energy Infrastructure – Utility T&D Construction & Other General Access 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-Base
Slide 15: Financial Focus
FINANCIAL FOCUS . Generating consistent positive free cash Free Cash Flow (1) flow while funding strategic growth $60 $55 initiatives $40 . Maintained modest debt burden through $21 $20 $15 $16 the cycle $Millions $0 Short-Term Focus -$20 Continue repatriation of available foreign ($23) . -$40 cash
Slide 16: Appendix
APPENDIX ol -EL NEWPARK
Slide 17: Consolidated Statements of Operations (Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 17
Slide 18: Operating Segment Results (Unaudited)
OPERATING SEGMENT RESULTS (UNAUDITED) (1) Corporate office and Fluids Systems operating income (loss) for the three months ended March 31, 2019 includes charges of $3.4 million and $1.1 million, respectively, related to the modification of the Company's retirement policy and severance costs. 18
Slide 19: Consolidated Balance Sheets (Unaudited)
CONSOLIDATED BALANCE SHEETS (UNAUDITED) 19
Slide 20: Consolidated Statements of Cash Flows (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 20
Slide 21: 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 22: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) (2) 2019 Fluids Systems operating income and EBITDA include $1.1 million of charges associated with the modification of the Company's retirement policy and severance costs. 2018 Fluids Systems operating income and EBITDA include $4.9 million of charges, includ
Slide 23: Non-GAAP Financial Measures (Unaudited)
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: ConsolidatedDecember 31, June 30, (In thousands) 2014 2015 2016 2017 20
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: 24
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 David Paterson President Fluids Systems Matthew
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 Cou
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: Rated
4 st Rated Fluids, Chemicals {4 & Proppants OILFIELD PRODUCTS NEWPARK 4 st Rated in Deepwater Applications OILFIELD SERVICES Drilling Fluids pucTs Applications = al — =
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