Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Q3 2021 Earnings Presentation
26 slides from Npk International's earnings presentation, Nov 8, 2021
Slide 1: Newpark Resources November 2021
Newpark Resources November 2021
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: Two operating segments: Industrial Solutions and Fluids Systems
Two operating segments: Industrial Solutions We are a leading provider of engineered site access solutions, with a diversified customer base • Power transmission and renewable energy • Oil and gas exploration • Construction and other general access • Industrial blending operations began in 2020 Indu
Slide 5: 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 6: COVID-19 Impact
6 Primary Commercial Impact of COVID-19: • Fluids Systems (EMEA region) Periods of Primary Impact: Q2 2020 – Current Restrictions on movement of personnel and products within several countries have caused operational disruptions and customer project delays. Although recovering with global vaccine ro
Slide 7: 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 8: U.S. Electrical Transmission Investment
U.S. Electrical Transmission Investment* $20 $21 $21 $22 $22 $23 $26 $27 $26 $26 $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 • Enhancing utility sector expertise through recent Board of Directors appoi
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 reducing GHG emissions with every load eliminated Fewer truckloads mean less miles driven and safer conditions for the com
Slide 10: Fluids Systems Overview
Total Segment Revenues ($MIL) $171 $21 $91 NAM Land U.S. GOM Europe, Middle East, Africa Rest of World First Nine Months 2021 Revenues By Region ($MIL) Drilling Fluids Completion & Reservoir Fluids Stimulation Fluids • Non-aqueous • Water-based • Specialty Systems • Industrial Minerals • Solids Cont
Slide 11: Fluids Systems - North America
$395 $477 $427 $227 $175 $193 $0 $100 $200 $300 $400 $500 2017 2018 2019 2020 2021 North America Revenues ($MIL) 11 Full Year First Nine Months $310 $325 $308 $214 $213 $0 $100 $200 $300 $400 2017 2018 2019 2020 Q3 2021 North America Net Capital Employed ($MIL) (end of period) North America • Unprec
Slide 12: Fluids Systems - International
12 $220 $239 $193 $128 $100 $100 $0 $50 $100 $150 $200 $250 2017 2018 2019 2020 2021 International Revenues ($MIL) $64 $36 First Nine Months 2021 Revenues by Customer Type ($MIL) IOC/NOC Regional Independent All Other Markets • Selective geographic expansion as market outlook improves, pursuing oppo
Slide 13: Flexible Balance Sheet and Modest Debt Capital Structure
13* 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 14: Appendix
APPENDIX NEWPARK
Slide 15: Consolidated Statements of Operations (Unaudited)
15 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Financial Report (In thousands, except per share data) September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Revenues 151,797$ 142,249$ 96,424$ 435,218$ 362,920$ Cost of revenues 132,273 124,106 99,301 376,370 3
Slide 16: Operating Segment Results (Unaudited)
16 OPERATING SEGMENT RESULTS (UNAUDITED) Financial Report (In thousands) September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Revenues Fluids Systems 107,955$ 97,093$ 67,711$ 292,897$ 275,178$ Industrial Solutions 43,842 45,156 28,713 142,321 87,742 Total revenue
Slide 17: Consolidated Balance Sheets (Unaudited)
17 CONSOLIDATED BALANCE SHEETS (UNAUDITED) Financial Report (In thousands, except share data) September 30, 2021 December 31, 2020 ASSETS Cash and cash equivalents 31,242$ 24,197$ Receivables, net 163,309 141,045 Inventories 148,194 147,857 Prepaid expenses and other current assets 17,124 15,081 Tot
Slide 18: Consolidated Statements of Cash Flows (Unaudited)
18 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Financial Report (In thousands) 2021 2020 Cash flows from operating activities: Net loss (21,845)$ (62,262)$ Adjustments to reconcile net loss to net cash provided by operations: Impairments and other non-cash charges - 13,024 Depreciation and amo
Slide 19: Non-GAAP Financial Measures - Consolidated EBITDA
19 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Consolidated (In thousands) 2017 2018 2019 2020 2020 2021 Net income (loss) (GAAP) (1) (6,148)$ 32,281$ (12,946)$ (80,696)$ (62,262)$ (21,845)$ Loss from disposal of discontinued operations, net of tax 17,367 - - - - - Interest expense, net
Slide 20: Non-GAAP Financial Measures - Segment EBITDA
20 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Fluids Systems (In thousands) 2017 2018 2019 2020 2020 2021 Operating income (loss) (GAAP) (1) 27,580$ 40,337$ 3,814$ (66,403)$ (46,284)$ (19,944)$ Depreciation and amortization 21,566 20,922 21,202 20,555 15,686 13,585 EBITDA (non-GAAP) (1
Slide 21: Non-GAAP Financial Measures - Free Cash Flow and Net Debt
21 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report Consolidated (In thousands) 2017 2018 2019 2020 2020 2021 Net cash provided by (used in) operating activities (GAAP) 38,381$ 63,403$ 72,286$ 55,791$ 40,293$ 13,670$ Capital expenditures (31,371) (45,141) (44,806) (15,794) (14,609) (19,103)
Slide 22: Experienced Leadership - Executive Management
Paul Howes Chief Executive Officer Matthew Lanigan President and Chief Operating 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 Flu
Slide 23: Paul L. Howes, CEO biography
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 24: Gregg S. Piontek, SVP & CFO biography
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 25: David A. Paterson, President, Fluids Systems biography
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 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