Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (June 2017)
23 slides from Npk International's investor presentation, Jun 21, 2017
Slide 1: Newpark Resources Presentation June 2017
N E W P A R K R E S O U R C E S P R E S E N TAT I O N J U N E 2 0 1 7
Slide 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 future, including Newpark's strat
Slide 3: Company Overview
$984 $1,042 $1,118 $677 $471 $159 $115 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2012 2013 2014 2015 2016 2017 86% 14% First Quarter 2017 - Revenue by Segment Two Operating Segments: Fluids Systems Oil and Gas exploration Mats and Integrated Services Oil and Gas exploration Electrical tran
Slide 4: Global Strength: Revenue by Region
Revenue by Region G L O B A L S T R E N G T H 4 67% 57% 45% 54% 7% 8% 7% 12% 8% 7% 9% 6% 18% 28% 39% 28% 2014 2015 2016 Q1 2017 U.S. Canada Latin America EMEA/APAC
Slide 5: Strengthened by Our Investments
S T R E N G T H E N E D B Y O U R I N V E S T M E N T S Mats: Completed Manufacturing 2015 and Technology Center 2016 Elevated capital campaign completed Infrastructure investments open new markets and significantly enhance our competitiveness Reflects our commitment to be the global leader in
Slide 6: Fluids Systems - Overview
48% 14% 31% 7% U.S. Canada EMEA/APAC Latin America Largest independent drilling fluids provider 3rd largest drilling fluids company worldwide* Seek to capitalize on competitive diversions to drive further market share gains Expanding global market share, leveraging IOC/NOC relationships $862
Slide 7: Fluids Systems - Technology
F L U I D S S Y S T E M S - T E C H N O L O G Y 7 Proven drilling fluid systems designed to enhance wellsite performance Evolution® high-performance, water-based technology for global applications Fusion™ brine fluid system creates a unique enhancement for shale basins Kronos™ deepwater dril
Slide 8: Fluids Systems - North America
2,283 2,114 2,241 1,170 639 1,037 10% 11% 12% 13% 14% 15% 16% - 500 1,000 1,500 2,000 2,500 2012 2013 2014 2015 2016 First Quarter 2017 NAM Rig Count Market Share $615 $654 $687 $352 $183 $50 $85 $0 $100 $200 $300 $400 $500 $600 $700 $800 2012 2013 2014 2015 2016 2017 Revenues impacted by drilling
Slide 9: Fluids Systems - International
$246 $272 $278 $229 $212 $48 $51 $0 $50 $100 $150 $200 $250 $300 $350 2012 2013 2014 2015 2016 2017 $117 $137 $166 $164 $167 $87 $99 $84 $47 $40 $42 $36 $28 $18 $5 2012 2013 2014 2015 2016 EMEA LATAM APAC International expansion is key to our strategy More stable than NAM, through the industry c
Slide 10: Mats & Integrated Services - Overview
$122 $116 $153 $96 $76 $16 $23 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2012 2013 2014 2015 2016 2017 Leading provider of engineered worksite solutions Patented technology, service capability and size of composite mat rental fleet provide competitive advantage Recent completion of R&D Cente
Slide 11: Mats & Integrated Services - Strategy and Systems
Diversifying beyond the wellsite Accelerate penetration of non- exploration markets, both domestically and internationally Larger addressable market Similar value drivers as exploration market Innovate and commercialize differentiated system enhancements, including EPZ Grounding System™ fo
Slide 12: Mats & Integrated Services - Market Diversification
M AT S & I N T E G R AT E D S E R V I C E S – M A R K E T D I V E R S I F I C AT I O N 12 $122 $116 $153 $96 $76 0% 10% 20% 30% 40% 50% 60% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2012 2013 2014 2015 2016 R e ve n u e ($ m il) EB IT D A M ar gi n * * EBITDA and EBITDA margin are non-GAAP fi
Slide 13: Financial Focus
F I N A N C I A L F O C U S Short-Term Actions Focused on managing cost structure as NAM activity levels improve Continuing efforts to optimize working capital Limit capital investments beyond growth/diversification projects Long-term Focus Continue investing in strategic projects IOC/
Slide 14: Appendix
A P P E N D I X
Slide 15: Consolidated Statements of Operations
C O N S O L I D AT E D S TAT E M E N T S O F O P E R AT I O N S 15 Three Months Ended (In thousands, except per share data) March 31, 2017 December 31, 2016 March 31, 2016 Revenues $ 158,691 $ 137,083 $ 114,544 Cost of revenues 129,590 124,167 111,573 Selling, general and administrative expenses 25,
Slide 16: Operating Segment Results
O P E R AT I N G S E G M E N T R E S U LT S 16 Three Months Ended (In thousands) March 31, 2017 December 31, 2016 March 31, 2016 Revenues Fluids systems $ 136,050 $ 111,560 $ 98,651 Mats and integrated services 22,641 25,523 15,893 Total revenues $ 158,691 $ 137,083 $ 114,544 Operating income (loss)
Slide 17: Consolidated Balance Sheets
C O N S O L I D AT E D B A L A N C E S H E E T S 17 March 31, 2017 December 31, 2016 ASSETS Cash and cash equivalents $ 69,876 $ 87,878 Receivables, net 238,158 214,307 Inventories 145,384 143,612 Prepaid expenses and other current assets 16,765 17,143 Total current assets 470,183 462,940 Property,
Slide 18: Consolidated Statements of Cash Flow
C O N S O L I D AT E D S TAT E M E N T S O F C A S H F L O W 18 Three Months Ended March 31, (In thousands) 2017 2016 Cash flows from operating activities: Net loss $ (983 ) $ (13,300 ) Adjustments to reconcile net loss to net cash used in operations: Depreciation and amortization 9,387 9,573 Stock-
Slide 19: Non-GAAP Financial Measures
N O N - G A A P F I N A N C I A L M E A S U R E S 19 We consider earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA Margin to be important supplemental performance measures and believe they are frequently used by investors, securities analysts and other parties in t
Slide 20: Experienced Leadership
E X P E R I E N C E D L E A D E R S H I P • Paul Howes President & CEO • Gregg Piontek Vice President & CFO • Mark Airola SVP, GC & Admin Officer • Bruce Smith President Fluids Systems • Matthew Lanigan President Mats & Integrated Services • Ida Ashley Vice President, Human Resources 20
Slide 21: Management Biographies
M A N A G E M E N T B I O G R A P H I E S Paul L. Howes, President & CEO: Paul L. Howes joined our Board of Directors and was appointed as our Chief Executive Officer in March 2006. In June 2006, Mr. Howes was also appointed as our President. Mr. Howes’ career has included experience in the defense
Slide 22: Management Biographies
Bruce C. Smith, Executive VP and President Fluids Systems: 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. ope
Slide 23: Focused on Customer's Needs
‘4 T mie 2 ants ig “FOCUSED ON CUSTOMER’S NEEDS = DURA-BASECCT T CLEANING purA-BASE™DEFENDE THE LINER-LESS SPILL COI c
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