Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (February 2022)
27 slides from Npk International's investor presentation, Feb 18, 2022
Slide 1: Newpark Resources February 2022
Newpark Resources February 2022
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: Company Overview: Two operating segments
Two operating segments: Industrial Solutions We are a leading provider of temporary worksite access solutions, with a diversified customer base • Power transmission and renewable energy • Oil and gas exploration • Construction and other general access Industrial Solutions has historically been the p
Slide 5: Strategic Priorities
5 Strategic Priorities Prioritize investment into high returning growth markets, including markets aligned to energy transition & sustainability tailwinds, while continuing to transform Fluids Systems to a capital-light cash generator Leverage extensive experience & credibility to expand sustainable
Slide 6: Key Execution Pillars
6 Key Execution Pillars Rightsize for New Market Realities • Evaluating portfolio options for U.S. and Gulf of Mexico operations • Pursue asset monetization of non-core assets, as market conditions support Drive Variable Cost Structure to Enhance Cash Flow Consistency • Reduce fixed cost burden on t
Slide 7: 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 8: Industrial Solutions - Overview
Strategic Course Unchanged • While 2020 reflected meaningful COVID-19 impact, 2021 performance more in line with 2019 results, benefitting from growth in power transmission sector • Industrial end-market growth remains primary focus, while presence maintained in key E&P markets Industrial End-Market
Slide 9: U.S. Electrical Transmission Investment
U.S. Electrical Transmission Investment* $20 $21 $21 $22 $22 $24 $25 $28 $27 $27 $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 • Enhanced utility sector expertise through 2021 Board of Directors appointm
Slide 10: 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 11: Fluids Systems Overview
Total Segment Revenues ($MIL) $250 $25 $132 NAM Land U.S. GOM Europe, Middle East, Africa Rest of World 2021 Revenues By Region ($MIL) Drilling Fluids Completion & Reservoir Fluids Stimulation Fluids • Non-aqueous • Water-based • Specialty Systems • Industrial Minerals • Solids Control and Waste Man
Slide 12: Fluids Systems - North America
$395 $477 $427 $227 $275 $0 $100 $200 $300 $400 $500 2017 2018 2019 2020 2021 North America Revenues ($MIL) 12 $310 $325 $308 $214 $220 $0 $100 $200 $300 $400 2017 2018 2019 2020 2021 North America Net Capital Employed ($MIL) (end of period) North America • Unprecedented market collapse in 2020, wit
Slide 13: Fluids Systems - International
13 $220 $239 $193 $128 $146 $0 $50 $100 $150 $200 $250 2017 2018 2019 2020 2021 International Revenues ($MIL) $85 $61 2021 Revenues by Customer Type ($MIL) IOC/NOC Regional Independent All Other Markets • Selective geographic expansion that meet appropriate qualifications: • Non-commoditized market
Slide 14: Flexible Balance Sheet and Cash Flow
14* 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 15: Appendix
APPENDIX NEWPARK
Slide 16: Consolidated Statements of Operations (Unaudited)
16 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Financial Report (In thousands, except per share data) December 31, 2021 September 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Revenues 179,563$ 151,797$ 129,705$ 614,781$ 492,625$ Cost of revenues 153,182 132,273 115,583 529,55
Slide 17: Operating Segment Results (Unaudited)
17 OPERATING SEGMENT RESULTS (UNAUDITED) Financial Report (In thousands) December 31, 2021 September 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Revenues Fluids Systems 127,892$ 107,955$ 79,430$ 420,789$ 354,608$ Industrial Solutions 51,671 43,842 50,275 193,992 138,017 Total reve
Slide 18: Consolidated Balance Sheets (Unaudited)
18 CONSOLIDATED BALANCE SHEETS (UNAUDITED) Financial Report (In thousands, except share data) December 31, 2021 December 31, 2020 ASSETS Cash and cash equivalents 24,088$ 24,197$ Receivables, net 194,296 141,045 Inventories 155,341 147,857 Prepaid expenses and other current assets 14,787 15,081 Tota
Slide 19: Consolidated Statements of Cash Flows (Unaudited)
19 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Financial Report (In thousands) 2021 2020 Cash flows from operating activities: Net loss (25,526)$ (80,696)$ Adjustments to reconcile net loss to net cash provided by (used in) operations: Impairments and other non-cash charges - 25,072 Depreciati
Slide 20: Non-GAAP Financial Measures: Consolidated EBITDA
20 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Consolidated (In thousands) 2017 2018 2019 2020 2021 Net income (loss) (GAAP) (1) (6,148)$ 32,281$ (12,946)$ (80,696)$ (25,526)$ Loss from disposal of discontinued operations, net of tax 17,367 - - - - Interest expense, net 13,273 14,864 14
Slide 21: Non-GAAP Financial Measures: Segment EBITDA
21 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Fluids Systems (In thousands) 2017 2018 2019 2020 2021 Operating income (loss) (GAAP) (1) 27,580$ 40,337$ 3,814$ (66,403)$ (19,012)$ Depreciation and amortization 21,566 20,922 21,202 20,555 17,877 EBITDA (non-GAAP) (1) 49,146 61,259 25,016
Slide 22: Non-GAAP Financial Measures: Free Cash Flow and Net Debt
22 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Consolidated (In thousands) 2017 2018 2019 2020 2021 Net cash provided by (used in) operating activities (GAAP) 38,381$ 63,403$ 72,286$ 55,791$ (3,013)$ Capital expenditures (31,371) (45,141) (44,806) (15,794) (21,793) Proceeds from sale of
Slide 23: Experienced Leadership: Executive Management
Paul Howes Chief Executive Officer (Retiring February 2022) Matthew Lanigan President and Chief Operating Officer (Succeeding Mr. Howes as CEO February 2022) Gregg Piontek Senior Vice President & Chief Financial Officer Chip Earle Vice President, General Counsel, Chief Administrative Officer, Chief
Slide 24: Executive biographies: Paul L. Howes
Paul L. Howes, CEO: Paul L. Howes joined Newpark’s Board of Directors and was appointed as the Chief Executive Officer in March 2006 and has announced his decision to retire in February 2022. Mr. Howes’ career has included experience in the defense industry, chemicals and plastics manufacturing, and
Slide 25: Executive biographies: Gregg S. Piontek
Gregg S. Piontek, SVP & CFO: Gregg joined Newpark in April 2007 and served as Vice President, Controller and Chief Accounting Officer from April 2007 to October 2011. Prior to joining Newpark, Mr. Piontek was Vice President and Chief Accounting Officer of Stewart & Stevenson LLC from 2006 to 2007. F
Slide 26: Executive biographies: David A. Paterson
David A. Paterson, President, Fluid Systems: David was appointed as Vice President of the Company and President of Fluids Systems in July 2019. From October 2018 to July 2019, Mr. Paterson served as President - Pressure Pumping of Weir Oil and Gas. From December 1995 to October 2018, he served in va
Slide 27: 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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