Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (August 2021)
26 slides from Npk International's investor presentation, Aug 12, 2021
Slide 1: Newpark Resources August 2021
Newpark Resources August 2021
Slide 2: Forward-looking statements
2 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,” “would,” “should,” “anticip
Slide 3: Non-GAAP Financial Measures
3 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 a
Slide 4: Two operating segments: Industrial Solutions and Fluids Systems
Two operating segments: Industrial Solutions We are a leading provider of engineered site access solutions, with a diversified customer base • Power transmission and renewable energy • Oil and gas exploration • Construction and other general access • Industrial blending operations began in 2020 Indu
Slide 5: Environmentally focused product offering and high social standards
ENVIRONMENTALLY FOCUSED PRODUCT OFFERING Environmentally-Focused Drilling Fluids Technologies • Water-based and synthetic-based fluids, replacing oil-based mud • Lower environmental impact • Lower risk to people & environment • Offering includes TerraThermTM system, designed specifically for geother
Slide 6: COVID-19 Impact
6 Primary Commercial Impact of COVID-19: • Fluids Systems (EMEA region) Periods of Primary Impact: Q2 2020 – Current Restrictions on movement of personnel and products within several countries have caused operational disruptions and customer project delays. Although recovering with global vaccine ro
Slide 7: Strategic Course Unchanged
Strategic Course Unchanged • While 2020 reflected meaningful COVID-19 impact, 2021 roughly on pace with 2019 performance, as delayed power transmission projects recommence • Strategy remains focused on industrial end-market penetration, with targeted markets expected to benefit from energy transitio
Slide 8: U.S. Electrical Transmission Investment
U.S. Electrical Transmission Investment* $20 $21 $21 $22 $22 $23 $26 $27 $26 $26 $0 $5 $10 $15 $20 $25 $30 $35 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ($ b ill io ns ) Taking Strategic Actions to Support Expansion • Enhancing utility sector expertise through recent Board of Directors appoi
Slide 9: Site and Access Solutions Environmental Commitment
Our fully recyclable composite matting program prevents the deforestation associated with production of timber alternatives Lighter weight mats require fewer truckloads, thereby reducing GHG emissions with every load eliminated Fewer truckloads mean less miles driven and safer conditions for the com
Slide 10: Fluids Systems Overview
Total Segment Revenues ($MIL) $106 $16 $58 NAM Land U.S. GOM Europe, Middle East, Africa Rest of World First Half 2021 Revenues By Region ($MIL) Drilling Fluids Completion & Reservoir Fluids Stimulation Fluids • Non-aqueous • Water-based • Specialty Systems • Industrial Minerals • Solids Control and
Slide 11: Fluids Systems – North America
$395 $477 $427 $227 $133 $122 $0 $100 $200 $300 $400 $500 2017 2018 2019 2020 2021 North America Revenues ($MIL) 11 Full Year First Half $310 $325 $308 $214 $209 $0 $100 $200 $300 $400 2017 2018 2019 2020 Q2 2021 North America Net Capital Employed ($MIL) (end of period) North America • Unprecedented
Slide 12: Fluids Systems – International
12 $220 $239 $193 $128 $75 $63 $0 $50 $100 $150 $200 $250 2017 2018 2019 2020 2021 International Revenues ($MIL) $41 $22 First Half 2021 Revenues by Customer Type ($MIL) IOC/NOC Regional Independent All Other Markets • Selective geographic expansion as market outlook improves, pursuing opportunities
Slide 13: Flexible Balance Sheet and Cash Flow and Liquidity
13* Free Cash Flow is a non-GAAP financial measure. See reconciliation to the most comparable GAAP measure in the Appendix to this presentation. ** Net Debt is a non-GAAP financial measure. See reconciliation to the most comparable GAAP measure in the Appendix to this presentation. Flexible Balance
Slide 14: Appendix
APPENDIX NEWPARK
Slide 15: Consolidated Statements of Operations (Unaudited)
15 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Financial Report
Slide 16: Operating Segment Results (Unaudited)
16 OPERATING SEGMENT RESULTS (UNAUDITED) Financial Report
Slide 17: Consolidated Balance Sheets (Unaudited)
17 CONSOLIDATED BALANCE SHEETS (UNAUDITED) Financial Report
Slide 18: Consolidated Statements of Cash Flows (Unaudited)
18 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Financial Report (In thousands) 2021 2020 Cash flows from operating activities: Net loss (11,360)$ (38,392)$ Adjustments to reconcile net loss to net cash provided by operations: Inventory impairments - 8,996 Depreciation and amortization 21,493 2
Slide 19: Non-GAAP Financial Measures – Consolidated EBITDA
19 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Consolidated (In thousands) 2017 2018 2019 2020 2020 2021 Net income (loss) (GAAP) (1) (6,148)$ 32,281$ (12,946)$ (80,696)$ (38,392)$ (11,360)$ Loss from disposal of discontinued operations, net of tax 17,367 - - - - - Interest expense, net
Slide 20: Non-GAAP Financial Measures – Segment EBITDA
20 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Fluids Systems (In thousands) 2017 2018 2019 2020 2020 2021 Operating income (loss) (GAAP) (1) 27,580$ 40,337$ 3,814$ (66,403)$ (27,327)$ (13,298)$ Depreciation and amortization 21,566 20,922 21,202 20,555 10,459 9,164 EBITDA (non-GAAP) (1)
Slide 21: Non-GAAP Financial Measures – Free Cash Flow and Net Debt
21 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Consolidated (In thousands) 2017 2018 2019 2020 2020 2021 Net cash provided by (used in) operating activities (GAAP) 38,381$ 63,403$ 72,286$ 55,791$ 25,013$ 25,837$ Capital expenditures (31,371) (45,141) (44,806) (15,794) (10,655) (10,477)
Slide 22: Experienced Leadership: Executive Management
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 Lanigan President Indu
Slide 23: Paul L. Howes, President & CEO
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, chemicals and plastics man
Slide 24: Edward Chip Earle, General Counsel
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 Counsel, Corporate Secreta
Slide 25: Matthew Lanigan, President Industrial Solutions
Matthew Lanigan, President Industrial Solutions: 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 from there to Offshore Product
Slide 26: 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. A
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