Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (August 2008)
29 slides from Npk International's investor presentation, Aug 19, 2008
Slide 1: Leadership Focus Growth Newpark
Leadership Focus Growth Newpark August 2008 Newpark Resources, Inc.
Slide 2: Forward-Looking Statements
2 2 2 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
Slide 3: Company Profile
3 3 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 *E
Slide 4: Mission & Vision
4 4 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
Slide 5: Experienced Leadership
5 5 5 Experienced Leadership Paul Howes, President & CEO Jim Braun, VP & CFO Mark Airola, GC & Admin Officer Bruce Smith, President Fluids Systems and Engineering Bill Moss, President Mats and Integrated Services Tom Eisenman, President Excalibar Minerals LLC
Slide 6: Overall Growth Strategy
6 6 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 Close expected in fou
Slide 7: Revenue Mix
7 Revenue Mix Fluids Well Site Construction 86 14 Well Site Construction Services 86% Fluids Systems and Engineering 14%
Slide 8: Engineering Strategy
8 8 8 Fluids Systems and Engineering Strategy Core business line - 86% 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
Slide 9: Engineering Strong Revenue Growth
9 9 9 Fluids Systems and Engineering Strong Revenue Growth 25% CAGR * 6 months annualized
Slide 10: Engineering Strong Margin Growth
10 10 10 Fluids Systems and Engineering Strong Margin Growth
Slide 11: Engineering Scope of Operations North America
11 11 11 Serves major North America basins Approximately 17% 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 Ameri
Slide 12: Expanding Internationally
12 12 12 Aggressive international market expansion 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 Mediterranean Revenue Growth $62 $87
Slide 13: Fluids - Significant Contract Awards
13 13 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 14 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 15 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 Maximi
Slide 16: Well Site Construction Services
16 16 16 Well Site Construction Services * 6 months annualized
Slide 17: Well Site Construction Services Aiming to Expand Margins
17 17 17 Well Site Construction Services Aiming to Expand Margins
Slide 18: Capital Structure - June 30, 2008
18 18 18 Capital Structure - June 30, 2008
Slide 19: Solid Capital Structure
Solid Capital Structure Strong cash flow has allowed $42 million debt reduction over last two years Includes $10 million share repurchases No significant near-term debt maturities: $10 million per year next four years 19
Slide 20: FY 2008 Q2 Results
20 20 FY 2008 Q2 Results Strong growth in total revenues to $194 million, up 29% from 2Q07 Fluid Systems & Engineering Revenues up 8% sequentially and 29% YOY. Strong growth in the U.S. reflecting market share gains; Europe and North Africa revenues continue to grow Operating margin of 10.7%, down s
Slide 21: Investment Considerations
21 21 21 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 th
Slide 22: Thank you for your interest!
New Leadership New Focus New Strategy Newpark Thank you for your interest!
Slide 23: Appendix
New Leadership New Focus New Strategy Newpark Appendix
Slide 24: Consolidated Statements of Operations
Financials Newpark Resources, Ine Consolidated Statements of Operations ‘Three Months Six Months rausites) Ended June 30, Ended June 30 (Gn thousands excap per hare daa) 2008 2007 oo 3007 Revenues S 194032 $4998 $372,499 $299,246 Cost of evemes 330,820, _ 289.420, 41679 393826 General and administra
Slide 25: Financials
Sa omkieone Financials NYSE: NR
Slide 26: Operating Segment Results
eS... Financials Newpark Resources, Inc. Operating Segment Results (Unaudited) ‘Three Months Ended (In thousands) ‘June 30,2008 March 31,2008 June 30, 2007 ‘Segment revenues Fluids systems and engineering 169,128 197,216 131,163 Mats and integrated services 24,904 21,251 18,819 Total segment revenue
Slide 27: Financials
27 27 27 Financials
Slide 28: Management Biographies
28 28 28 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
Slide 29: Management Biographies
29 29 29 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
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