Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (February 2018)
29 slides from Npk International's investor presentation, Feb 12, 2018
Slide 1: Newpark Resources Presentation February 2018
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 F E B R U A R Y 2 0 1 8
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: 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 interest, taxes, depreciation and
Slide 4: Company Overview
$984 $1,042 $1,118 $677 $471 $748 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2012 2013 2014 2015 2016 2017 82% 18% Two Operating Segments: Fluids Systems Oil and Gas exploration Mats and Integrated Services Oil and Gas exploration Electrical transmission and distribution Pipeline Petroc
Slide 5: Global Strength: Revenue by Region
Revenue by Region G L O B A L S T R E N G T H 5 67% 57% 45% 62% 7% 8% 7% 7% 8% 7% 9% 5% 18% 28% 39% 26% 2014 2015 2016 2017 U.S. Canada Latin America EMEA/APAC
Slide 6: 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 Elevated capital campaign completed Infrastructure investments open new markets and significantly enhance our competitiveness Reflects our commitment to be the global leader in fluids and mats technology 6 Fluids: Manufacturing Facility &
Slide 7: Fluids Systems - Overview
55% 9% 30% 6% U.S. Canada EMEA/APAC Latin America Largest independent drilling fluids provider 3rd largest drilling fluids company worldwide* Seek to capitalize on strong market position and extend Fluids’ product offerings to completions and other applications Expanding global market share,
Slide 8: 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 8 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 9: Fluids Systems - North America
2,283 2,114 2,241 1,170 639 1,083 10% 11% 12% 13% 14% 15% 16% - 500 1,000 1,500 2,000 2,500 2012 2013 2014 2015 2016 2017 NAM Rig Count Market Share $615 $654 $687 $352 $183 $395 $0 $100 $200 $300 $400 $500 $600 $700 $800 2012 2013 2014 2015 2016 2017 Revenues impacted by lower drilling activity l
Slide 10: Fluids Systems - International
$246 $272 $278 $229 $212 $220 $0 $50 $100 $150 $200 $250 $300 $350 2012 2013 2014 2015 2016 2017 $117 $137 $166 $164 $167 $179 $87 $99 $84 $47 $40 $37 $42 $36 $28 $18 $5 $4 2012 2013 2014 2015 2016 2017 EMEA LATAM APAC International presence remains key to our strategy More stable than NAM, thro
Slide 11: Mats & Integrated Services - Overview
$122 $116 $153 $96 $76 $132 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2012 2013 2014 2015 2016 2017 Leading provider of engineered worksite solutions Established core rental business in NAM exploration market, where mats reduce operator’s costs and improve environmental protection during drill
Slide 12: Mats - Competitive Advantages Across Industries
M AT S - C O M P E T I T I V E A D V A N TA G E S A C R O S S I N D U S T R I E S 12 Superior Quality Enhanced EH&S Attributes Scale & Responsiveness DO WE HAVE PHOTOS OF ACTUAL INSTALL? PHOTO FROM PG 3 OF BROCHURE? Transportation, Install & Remediation Efficiency
Slide 13: Mats - Accelerating Diversification
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 14: Mats - Well Service Group / Utility Access Solution Acquisition
M AT S – W E L L S E R V I C E G R O U P / U T I L I T Y A C C E S S S O L U T I O N A C Q U I S I T I O N 14 Completed November 2017 Contributed $9m of revenue in 2017 WSG served as strategic logistics and installation service partner since 2012 Expands complementary service offering, creat
Slide 15: Mats - Diversification Is Key to Earnings Stability
M AT S – D I V E R S I F I C AT I O N I S K E Y T O E A R N I N G S S TA B I L I T Y 15 $122 $116 $153 $96 $76 $132 0% 10% 20% 30% 40% 50% 60% $0 $50 $100 $150 $200 2012 2013 2014 2015 2016 2017 R e ve n u e ($ m il) EB IT D A M ar gi n * * EBITDA and EBITDA margin are non-GAAP financial measures. S
Slide 16: Financial Focus
F I N A N C I A L F O C U S Generated positive operating cash flow through the cycle Debt level remains modest Short-Term Focus Pursue repatriation of available foreign cash following U.S. tax reform Continuing efforts to optimize working capital Limit capital investments beyond strategi
Slide 17: Appendix
A P P E N D I X
Slide 18: Consolidated Statements of Operations (Unaudited)
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 ( U N A U D I T E D ) 18 Note: For all periods presented, we excluded the assumed conversion of the Convertible Notes in calculating diluted earnings per share as the effect was anti-dilutive.
Slide 19: Operating Segment Results (Unaudited)
O P E R AT I N G S E G M E N T R E S U LT S ( U N A U D I T E D ) 19 (In thousands) December 31, 2017 September 30, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Revenues Fluids systems 162,404$ 166,726$ 111,560$ 615,803$ 395,461$ Mats and integrated services 41,985 34,937 25,523 131,96
Slide 20: Consolidated Balance Sheets (Unaudited)
C O N S O L I D AT E D B A L A N C E S H E E T S ( U N A U D I T E D ) 20
Slide 21: Consolidated Statements of Cash Flow (Unaudited)
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 ( U N A U D I T E D ) 21
Slide 22: Non-GAAP Financial Measures (Unaudited)
N O N - G A A P F I N A N C I A L M E A S U R E S ( U N A U D I T E D ) 22 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
Slide 23: Non-GAAP Financial Measures (Unaudited)
N O N - G A A P F I N A N C I A L M E A S U R E S ( U N A U D I T E D ) 23 (2) 2015 Fluids Systems operating results and EBITDA included $82.7 million of pre-tax charges associated with goodwill and other asset impairments and workforce reductions. 2016 Fluids Systems operating results and EBITDA in
Slide 24: Non-GAAP Financial Measures (Unaudited)
N O N - G A A P F I N A N C I A L M E A S U R E S ( U N A U D I T E D ) 24 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: Consolidated (In thousands) 2012
Slide 25: 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 • Phil Vollands President Fluids Systems • Bruce Smith Chief Technology Officer Fluids Systems • Matthew Lanigan President Mats & Integrated Services • Id
Slide 26: 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 27: Management Biographies
Phillip T. Vollands, President, Fluids Systems: Phil joined Newpark in October 2013 as President, North America Fluids Systems and became President, Western Hemisphere in 2016. Prior to Newpark, he was Vice President, Tubular Running Services for Weatherford International from 2010 to 2013. Previous
Slide 28: 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. B
Slide 29: purA-BASE Defender liner-less spill containment system
=—. purA-BASE™DEFENDE THE LINER-LESS SPILL CONTAINMENT SYSTEM” WITH OXa SEAL 10Gy™
Newpark Resources — Investor Presentation (February 2018) on 6ix