Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Burkenroad Reports/Tulane University (April 2008)
28 slides from Npk International's conference presentation, Apr 25, 2008
Slide 1: Forward-Looking Statements
1 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. All statements that address expectations or projections about the futu
Slide 2: Leadership Focus Growth
Leadership Focus Growth Newpark Burkenroad Reports/Tulane University April 25, 2008 Newpark Resources, Inc. James E. Braun, VP & CFO
Slide 3: Company Profile
3 Company Profile Specialized provider of: Fluids Systems and Engineering Well Site Construction Services Environmental Services* Customers: Oil and Gas Industry Key markets: North America North Africa South America *Environmental Services to be divested *Environmental Services to be divested *Envir
Slide 4: Mission & Vision
4 Mission & Vision Leadership, focus, growth Achieve best-in-class competitive positioning and performance in each business line Position for long-term growth through more disciplined approach to strategic investments Build a strong reputation with investors by delivering consistent performance to r
Slide 5: Experienced Leadership
5 Experienced Leadership Paul Howes, President & CEO Jim Braun, VP & CFO Mark Airola, GC & Admin Officer Bruce Smith, President Fluids Systems and Engineering Tom Eisenman, President Excalibar Minerals LLC
Slide 6: Overall Growth Strategy
6 Overall Growth Strategy Grow Fluids Systems and Engineering Organically / Acquisitions / Domestically / Internationally Expand scope and geographic position in Well Site Construction Services Acquired SEM Construction, based in Western Colorado Exit Environmental Services New agreement signed in A
Slide 7: Revenue Mix
7 Revenue Mix Fluids Well Site Construction 80 20 Well Site Construction Services 80% Fluids Systems and Engineering 20%
Slide 8: Fluids Strategy
8 Fluids Systems and Engineering Strategy Core business line - 80% of revenues Technologically advanced & unique fluid systems DeepDrill, FlexDrill, DeepDrill II and family of specialized water-based products, has performance applications for off-shore deepwater and shelf, as well as land based dril
Slide 9: Strong Revenue Growth 25% CAGR
9 Fluids Systems and Engineering Strong Revenue Growth 25% CAGR
Slide 10: Strong Margin Growth
10 Fluids Systems and Engineering Strong Margin Growth
Slide 11: Scope of Operations North America
11 Serves major North America basins Approximately 16% share of markets serviced in North America1 Substantial service facilities network Growing share vis-a-vis other players Well-positioned to expand into new customers and basins Fluids Systems and Engineering Scope of Operations North America Str
Slide 12: Expanding Internationally
12 International market expansion through acquisition of Ava, S.p.A. (Italy) Current key markets Mediterranean North Africa Eastern Europe Brazilian market expansion New contracts signed CapEx in new fixed assets Fluids Systems and Engineering Scope of Operations Expanding Internationally Mediterran
Slide 13: Fluids - Significant Contract Awards
13 Fluids - Significant Contract Awards Super major in offshore Brazil Large independent in the Rockies Offshore work in Libya with an NOC Large independent in the Gulf Coast International oil company in Gulf of Mexico deepwater
Slide 14: Excalibar Minerals LLC
14 Quality processor and supplier of industrial minerals Barite, Barytes Calcium Carbonate Alumina Trihydrate (ATH) Applications Oilfield Industrial Integral to Fluids Systems and Engineering Scope of Operations Excalibar Minerals LLC
Slide 15: Well Site Construction Services
15 Well Site Construction Services Leverage relationship with existing customers Advantage of often being first service provider "on site" Expand product and service offerings in the well site preparation market Expansion and diversification Growth opportunities beyond Gulf Coast region Maximize ren
Slide 16: Well Site Construction Services
16 Well Site Construction Services
Slide 17: Aiming to Expand Margins
17 Well Site Construction Services Aiming to Expand Margins 0.6% 6.5% 13.6% 15.1% 14.2% 0% 3% 6% 9% 12% 15% 18% 2003 2004 2005 2006 2007 Operating Margins
Slide 18: Improvements in Balance Sheet-Debt
18 Improvements in Balance Sheet-Debt $209.5 $213.0 $177.5 $150 $175 $200 $225 2005 2006 2007
Slide 19: Capital Structure
Capital Structure $ in millions Dec 2007 Revolver $ 117.0 Term Loan 50.0 Other 10.5 Total Debt 177.5 Equity 360. Total Capitalization Debt/Capitalization 33.0% NYSE: NR
Slide 20: Investment Considerations
20 Investment Considerations Leadership Management team with significant industry experience in place Focus Greater discipline Focusing on improving profitability, returns and free cash flow Growth Spears & Associates projects fluids market to grow 10% in 2008 Growing Fluids organically and through
Slide 21: Thank you for your interest!
New Leadership New Focus New Strategy Newpark Thank you for your interest!
Slide 22: Appendix
New Leadership New Focus New Strategy Newpark Appendix
Slide 23: Consolidated Statements of Operations
res... Financials Newpark Resources, Ine. Consolidated Statements of Operations Wnaudited) “Three Months Ended December 31, ‘Year Ended December 31, {Gn thousands, excep per shave daa) 2007 2006; 2007 "006 Revenues Ss 15970 S Mess 612,764 S 381908 Cost of revenues 140.753, 124034 533.929 500,062 189
Slide 24: Newpark Resources Financials
PB Newpark Resources Financials soi san 9330 24
Slide 25: Operating Segment Results 2007
res... Financials Newpark Resources, Ine. Operating Segment Results (Craudited) Quarter Ended, Year Ended Tune30, September 30, December 31, December 31, (ln thousands) 2007 2007 2007 2007 2007 Segment revenues Fluids systems and engineering © $_125,298 $131,163 $ 129986 S$ 136267 S$ 502,714 Mats an
Slide 26: Operating Segment Results 2006
| Financials Newpark Resources, Ine. Operating Segment Results, Wrausited) Quarter Ended ‘Year Ended March 31, Jane30, Seplember30, December31, December 31, (in thousands) 2006 2006 2006 2006 2006 Segment revenues Fluids systems and engineering $115 289 $ 111868 S$ 125,30 $ 129091 $8378 Mats and int
Slide 27: Management Biographies
27 Paul L. Howes, President & CEO: Paul joined Newpark's Board of Directors and was appointed its Chief Executive Officer in March 2006. In June 2006, Mr. Howes also was appointed as Newpark's President. Mr. Howes' career has included experience in the defense industry, chemicals and plastics manufa
Slide 28: Management Biographies (continued)
28 Bruce C. Smith, President Fluids Systems and Engineering: Bruce joined Newpark in April 1998 as Vice President, International. Since October 2000, he has served as President of its subsidiary Newpark Drilling Fluids, L.P. Prior to joining Newpark, Mr. Smith was the Managing Director of the U.K. o
Newpark Resources — Burkenroad Reports/Tulane University (April 2008) on 6ix