Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Q1 2021 Earnings Presentation
26 slides from Npk International's earnings presentation, May 18, 2021
Slide 1: Newpark Resources
Newpark Resources May 2021
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
Slide 4: Company Overview
Two operating segments: Industrial Solutions (38% of Q1 2021 Revenues) • • • • Fluids Systems (62% of Q1 2021 Revenues) Company Overview $15 $21 $41 $52 $27 $0 $10 $20 $30 $40 $50 $60 2017 2018 2019 2020 2021 Free Cash Flow * ($MIL) $748 $947 $820 $493 $165 $141 2017 2018 2019 2020 2021 Consolidated
Slide 5: Committed To Sustainability
ENVIRONMENTALLY FOCUSED PRODUCT OFFERING Environmentally-Focused Drilling Fluids Technologies • • • Efficient Stimulation Products • • Composite Matting System • • • HIGH SOCIAL STANDARDS Safety First • • • Ethical Supply Chain • • • Supported Employees • • • ROBUST GOVERNANCE PROGRAMS Compliance Pr
Slide 6: COVID-19 Impact
Primary Commercial Impact of COVID-19: • Fluids Systems (EMEA region) • Site and Access Solutions (U.S.) COVID-19 Impact $55 $32 $27 $29 $50 $53 $135 $133 $75 $68 $79 $88 $0 $25 $50 $75 $100 $125 $150 $175 $200 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Fluid Systems Industrial Solutions Quarte
Slide 7: Industrial Solutions - Overview
Strategic Course Unchanged • • Industrial End-Markets Remain Primary Focus • • • • • Industrial Solutions - Overview $29 $20 $5 Q1 2021 Revenue Split ($MIL) Total Segment EBITDA * ($MIL) Total Segment Revenues ($MIL) $132 $231 $200 $138 $32 $53 $0 $50 $100 $150 $200 $250 $55 $82 $69 $34 $8 $18 $0 $2
Slide 8: Site & Access Solutions - Utility and Other Industrial
U.S. Electrical Transmission Investment* $20 $21 $21 $22 $22 $23 $26 $27 $26 $26 $0 $5 $10 $15 $20 $25 $30 $35 Taking Strategic Actions to Support Expansion • • Stable Market with Strong Outlook • o o Market Penetration Gaining Momentum • • • • • Energy Infrastructure Growth Opportunity Site & Acces
Slide 9: Site and Access Solutions Environmental Commitment
Our fully recyclable composite matting program prevents the deforestation associated with production of timber alternatives Lighter weight mats require fewer truckloads, thereby saving CO2 emissions with every load eliminated Fewer truckloads mean less miles driven and safer conditions for the commu
Slide 10: Fluids Systems Overview
Total Segment Revenues ($MIL) $52 $9 $25 Q1 2021 Revenues By Region ($MIL) Drilling Fluids Completion & Reservoir Fluids Stimulation Fluids • • • • • • • • • • • • • • PROVIDING TOTAL FLUIDS SOLUTION Fluids Systems Overview $616 $716 $620 $355 $133 $88 $0 $200 $400 $600 $800 $49 $61 $25 ($46) ($5) (
Slide 11: Fluids Systems – North America
$395 $477 $427 $227 $87 $60 $0 $100 $200 $300 $400 $500 2017 2018 2019 2020 2021 North America Revenues ($MIL) $310 $325 $308 $214 $213 $0 $100 $200 $300 $400 2017 2018 2019 2020 Q1 2021 North America Net Capital Employed ($MIL) (end of period) North America • • • • • • • Fluids Systems – North Amer
Slide 12: Fluids Systems - International
$220 $239 $193 $128 $46 $28 $0 $50 $100 $150 $200 $250 2017 2018 2019 2020 2021 International Revenues ($MIL) $19 $9 Q1 2021 Revenues by Customer Type ($MIL) IOC/NOC Regional Independent All Other Markets • • • • EMEA • • • • • • Fluids Systems - International
Slide 13: Flexible Balance Sheet and Modest Debt Capital Structure
Flexible Balance Sheet and Modest Debt Capital Structure • • • Cash Flow and Liquidity • • • $160 $162 $160 $87 $72$104 $106 $111 $63 $38 $200 $150 $100 $50 $0 2017 2018 2019 2020 Q1 2021 Total and Net Debt (2) (End of Period) $(24) $(43) $(31) $(3) $(1) ($50) ($40) ($30) ($20) ($10) $0 $10 $20 2017
Slide 14: Appendix
APPENDIX NEWPARK
Slide 15: Consolidated Statements of Operations (Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Financial Report
Slide 16: Operating Segment Results (Unaudited)
OPERATING SEGMENT RESULTS (UNAUDITED) Financial Report
Slide 17: Consolidated Balance Sheets (Unaudited)
CONSOLIDATED BALANCE SHEETS (UNAUDITED) Financial Report
Slide 18: Consolidated Statements of Cash Flows (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Financial Report
Slide 19: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report
Slide 20: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report
Slide 21: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report
Slide 22: 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