Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (June 2019)
29 slides from Npk International's investor presentation, Jun 14, 2019
Slide 1: Newpark Resources Presentation June 2019
NEWPARK RESOURCES PRESENTATION JUNE 2019
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 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 inter
Slide 4: Company Overview
COMPANY OVERVIEW Consolidated Revenues $1,400 Full Year . Revenue recovery driven by oilfield $1,200 $1,118 First Quarter activity increase and end-market diversification initiatives; Q1 2019 $1,000 $947 impacted by contract transitions in $800 $748 Fluids $677 $600 $471 . Two Operating Segments: Re
Slide 5: Global Strength
GLOBAL STRENGTH First Quarter 2019 - Revenue by Region U.S. Canada Latin America Eastern Hemisphere 21% 1% 6% 72% 5
Slide 6: Fluids Systems - Overview
FLUIDS SYSTEMS - OVERVIEW Total Segment Revenues $1,200 . Expanding IOC & NOC relationships Full Year have been key to global market share $1,000 $965 First Quarter growth: $800 $716 – Newpark share positioned #3 globally, #2 North $581 $616 $600 America* $400 $395 – Approx. 1/3 of 2018 Fluids Syste
Slide 7: Fluids Systems – Product Offering Expansion Underway
FLUIDS SYSTEMS – PRODUCT OFFERING EXPANSION UNDERWAY Manufacturing . Expansion capitalizes on existing Fluids Systems infrastructure, expertise and market credibility Deepwater Gulf of Mexico – Building upon 2018 success, market share expanding with additional deepwater projects scheduled in 2019 –
Slide 8: Fluids Systems – Leading Technology
FLUIDS SYSTEMS – LEADING TECHNOLOGY Developing Total Fluids Solutions . Our focus on sustainability is a driving force behind breakthroughs in high performance water-based drilling fluid systems, which offer environmentally-sound solutions to the rigorous operational demands of today’s most challeng
Slide 9: Fluids Systems – North America
FLUIDS SYSTEMS – NORTH AMERICA North American Revenues . Four years of sequential expansion $800 $687 Full Year in market share $700 First Quarter $600 – Hold #2 drilling fluids market share $500 $477 position in U.S. land* $395 $352 $400 . Superior focus on service quality and $300 $183 differentia
Slide 10: Fluids Systems – International
FLUIDS SYSTEMS – INTERNATIONAL International Revenues . Revenue reduction in Q1 2019 resulted $350 Full Year primarily from contract transitions in $300 $278 First Quarter Algeria and Brazil; anticipate rebound in $250 $239 Q2 2019 $229 $212 $220 $200 . International presence remains key to $150 our
Slide 11: Mats & Integrated Services - Overview
MATS & INTEGRATED SERVICES - OVERVIEW Total Segment Revenues . Leading provider of engineered worksite and access solutions $250 $231 Full Year – In early phases of global market penetration, where our systems reduce $200 First Quarter operators’ costs and improve $153 environmental sustainability $
Slide 12: Mats - Competitive Advantages Across Industries
MATS - COMPETITIVE ADVANTAGES ACROSS INDUSTRIES Superior Transportation, Install & Enhanced Environmental Scale & Quality Remediation Efficiency Sustainability & Safety Responsiveness Attributes DO WE HAVE PHOTOS OF ACTUAL INSTALL? 12
Slide 13: Mats – Core Market Overview
MATS – CORE MARKET OVERVIEW Exploration & Production Pipeline SIZE SIZE PENETRATION PENETRATION HISTORY HISTORY Transmission & Distribution Construction & Other SIZE SIZE PENETRATION PENETRATION HISTORY HISTORY 13
Slide 14: Mats – Accelerating Product Development
MATS – ACCELERATING PRODUCT DEVELOPMENT Leveraging R&D center to drive innovation, including next-generation matting systems, accessories and adaptations EPZ Grounding System . Patented system . Elevates worksite safety in utility transmission and distribution markets . Fully integrated with Dura-Ba
Slide 15: Financial Focus
FINANCIAL FOCUS Operating Cash Flow Consistent positive operating $140 $122 cash flow generation through cycle $120 $100 $89 . Q1 2019 reflects seasonal increase in $80 $63 net working capital; expected to reverse $60 $38 in Q2 $Millions $40 $11 $20 $2 Short-Term Focus $0 2014 2015 2016 2017 2018 Fi
Slide 16: Appendix
APPENDIX ol -EL NEWPARK
Slide 17: Consolidated Statements of Operations (Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, December 31, March 31, (In thousands, except per share data) 2019 2018 2018 Revenues $ 211,473 $ 247,664 $ 227,293 Cost of revenues 174,976 197,310 186,455 Selling, general and administrative expenses 30,742 29,645 26,954
Slide 18: Operating Segment Results (Unaudited)
OPERATING SEGMENT RESULTS (UNAUDITED) Three Months Ended March 31, December March 31, (In thousands) 2019 31, 2018 2018 Revenues Fluids systems$ 160,653 $ 177,726 $ 177,379 Mats and integrated services 50,820 69,938 49,914 Total revenues $ 211,473 $ 247,664 $ 227,293 Operating income (loss) (1) Flui
Slide 19: Consolidated Balance Sheets (Unaudited)
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share data) March 31, 2019 December 31, 2018 ASSETS Cash and cash equivalents$ 54,486 $ 56,118 Receivables, net 250,053 254,394 Inventories 186,495 196,896 Prepaid expenses and other current assets 15,535 15,904 Total current assets 506,5
Slide 20: Consolidated Statements of Cash Flows (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, (In thousands) 2019 2018 Cash flows from operating activities: Net income $ 1,282 $ 7,222 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 11,438 11,271 Stock-based com
Slide 21: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) To help understand the Company’s financial performance, the Company has supplemented its financial results that it provides in accordance with generally accepted accounting principles (“GAAP”) with non-GAAP financial measures. Such financial measures include e
Slide 22: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) Three Months Ended Fluids SystemsTwelve Months Ended December 31, March 31, (In thousands) 2014 2015 2016 2017 2018 2019 Operating income (loss) (GAAP) (2) $ 95,600 $ (86,770) $ (43,631) $ 27,580 $ 40,337 $ 3,874 Depreciation and amortization 22,934 22,108 20,
Slide 23: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) The following table reconciles the Company’s ratio of total debt to capital calculated in accordance with GAAP to the non-GAAP financial measure of the Company’s ratio of net debt to capital: ConsolidatedDecember 31, March 31, (In thousands) 2014 2015 2016 201
Slide 24: Experienced Leadership
EXPERIENCED LEADERSHIP 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 Bruce Smith Executive Vice President & Presiden
Slide 25: Management Biographies
MANAGEMENT BIOGRAPHIES 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, che
Slide 26: Management Biographies
MANAGEMENT BIOGRAPHIES 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 Cou
Slide 27: Management Biographies
MANAGEMENT BIOGRAPHIES Matthew Lanigan, President Mats and Integrated Services: 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
Slide 28: Board of Directors
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
Slide 29: Rated
4 st Rated Fluids, Chemicals {4 & Proppants OILFIELD PRODUCTS NEWPARK 4 st Rated in Deepwater Applications OILFIELD SERVICES Drilling Fluids pucTs Applications = al — =
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