Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Q1 2024 Earnings Presentation
32 slides from Npk International's earnings presentation, May 3, 2024
Slide 1: May 2024 Investor Presentation
May 2024 Investor Presentation Positioned for Sustainable Growth
Slide 2: Notice to Investors
Notice to Investors Disclaimers 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 s
Slide 3: Agenda
Agenda Introduction End-Market Overview Summary of Key Financial Data 3
Slide 4: Introduction
1) Introduction
Slide 5: Transformation Strategy Aligning Portfolio to Maximize Value Creation
Transformation Strategy Aligning Portfolio to Maximize Value Creation Through Accelerated Growth in Power & Infrastructure Markets Disciplined Strategy Aligned with Long-Term Global Megatrends
Slide 6: Company Overview
Company Overview Specialty Rental & Services Company Supporting Power and Infrastructure Markets Newpark Resources, Inc. headquartered in The Woodlands, TX, is a global company operating NEWPARK RESOURCES GLOBAL FOOTPRINT two independent business units, Industrial Solutions and Fluids Systems, suppo
Slide 7: Leader in Power and Energy Infrastructure Solutions
Leader in Power and Energy Infrastructure Solutions Providing Innovative Product & Service Solutions for Power T&D and O&G Infrastructure 68% INDUSTRIAL SOLUTIONS Power Infrastructure, O&G, 95% 32% FLUID SYSTEMS 5% OF SEGMENT ADJ. OF SEGMENT OF SEGMENT ADJ. Oil, Natural Gas, and Geothermal OF SEGME
Slide 8: Segment Approach Supports Growth & Shareholder Return
Segment Approach Supports Growth & Shareholder Return Net Assets* TTM ADJ EBITDA** Market Outlook Approach $248M Actual & Projected Transmission Investment*** Industrial Solutions $73M BILLIONS Inventory Invest & Grow AR, net of AP Rental fleet Other long-lived assets, net YEARS Actual Projected $20
Slide 9: Key Operational Highlights Aligned with Strategy
Key Operational Highlights Aligned with Strategy Disciplined Execution Delivering Shareholder Value Creation Rental and Service Industrial Solutions Fluid Systems Weighted Average Revenue EBITDA* Net Working Capital Shares Outstanding $160 $80 $260 96 $150 $75 $240 94 $140 $70 $220 92 $130 $65 $20
Slide 10: Well-Positioned in Substantial Energy Megatrends
Well-Positioned in Substantial Energy Megatrends Multi-Trillion Dollar Markets Provide Long-Term Opportunities $14T+ $1T+ $12T+ Electrification Renewables Global Oil & Gas Investment in global Renewable Generation tie- O&G Investment is projected electrical grid to enable ins and grid hardening to m
Slide 11: Differentiated Model Exploiting Competitive Advantages
Differentiated Model Exploiting Competitive Advantages Over 50 Years of Technology & Service Innovation Positioning Us for Tomorrow’s Opportunities • Self-funding organic expansion in high-growth, high-returning infrastructure markets • Focused capital light Fluid Systems positioned to generate cas
Slide 12: Meaningful Progress in our Transformation
Meaningful Progress in our Transformation Strategic Focus on Growth in More Stable, Higher-Margin Industrial Markets Key to Long-Term Value Creation 2019 2023 Change Maintaining Adjusted EBITDA as we reposition the $82M $80M -2% Company Adjusted EBITDA* Adjusted EBITDA* Increasing Adjusted EBITDA ge
Slide 13: End-Market Overview
End-Market Overview 13
Slide 14: Utilities Infrastructure Megatrend Powering Growth
Utilities Infrastructure Megatrend Powering Growth Significant Long-term Capital Investment in Innovation & Infrastructure Enhanced by Legislation The $1.2 trillion Infrastructure Investment and Jobs Infrastructure Investment and Jobs Act (IIJA) is investing significantly over next decade, $1.2T+ Ac
Slide 15: Positioned for Growth in Multi-Billion Dollar Temporary Access Market
Positioned for Growth in Multi-Billion Dollar Temporary Access Market Specialty Rental and Services Supporting Infrastructure Megatrends Our Footprint What We Do Leading rental provider and manufacturer of composite temporary worksite access solutions with a diversified customer base, which primaril
Slide 16: Industrial Solutions End-to-End Operating Model
Industrial Solutions End-to-End Operating Model Differentiated by Optimizing Across the Value Chain Providing Strong Results Product Engineering & Design Belief in Innovation • High performance, safety, and service-centric culture • Introduced DURA-BASE to the world over 25 years ago as the 100% re
Slide 17: Industrial Solutions
Industrial Solutions Strategic Progress Supported by Strong Infrastructure Trends • Strategic investments in technology, scale, and service to drive specialty rental differentiation • Expansion of specialty rental fleet to meet long-term infrastructure build-out in multiple industries • 14% average
Slide 18: Global Demand for Oil and Gas Remains Resilient
Global Demand for Oil and Gas Remains Resilient Emergence of Alternative Energy Lags Global Demand OUTLOOK BY 2050 $12T+ Investment in Oil & Gas projected to meet global demand in Sustainable Development Scenario over next 30 years 80%+ World’s Energy which comes from fossil fuels today Access to af
Slide 19: Fluids Systems
Fluids Systems Agile, Capital-Light Technology & Services Capable of Cash Generation Through Cycles • Recent divestitures driving shift to international markets; 75% of Q1 2024 revenues generated outside of U.S. • Global footprint aligned to long-term, strategic markets • Reshaping balance sheet to
Slide 20: Long-Term Capital Allocation Strategy
Long-Term Capital Allocation Strategy Disciplined Approach Balances Growth Investments with Return of Capital Maintain Target Return Excess Invest in Growth Leverage Cash to Investors • Target net leverage range Organic M&A • Committed to programmatic of 0.5x–1.5x return of capital through share • C
Slide 21: Sustainability Embedded in Our DNA
Sustainability Embedded in Our DNA 2023 Sustainability Report Including SASB & TCFD Disclosures Available on Website Environmental Social Governance Safety Drives Everything We Do 0.7 Board Independence 0.6 Independent 0.5 Board Diversity 0.4 0.3 0.2 0.1 0.0 2019 2020 2021 2022 2023 Total Company TR
Slide 22: Why Invest in Newpark Resources?
Why Invest in Newpark Resources? Leading Provider of Sustainable Technologies and Services Meaningful growth opportunity tied to the energy transition and critical infrastructure Global presence in large-scale energy markets Proven technologies with economic and environmental benefits Demonstrated a
Slide 23: Summary of Key Financial Data
Summary of Key Financial Data 23
Slide 24: Business Segment Overview
Business Segment Overview Industrial Solutions Fluids Systems Revenues $750 $60 $225 $90 Revenues Adjusted EBITDA* Adjusted EBITDA* ADJUSTED EBITDA (MILLIONS) $675 ADJUSTED EBITDA (MILLIONS) REVENUE (MILLIONS) $80 REVENUE (MILLIONS) $600 $40 $200 $525 $70 $450 $20 $175 $60 $375 $300 $0 $150 $50 2021
Slide 25: Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited) 25
Slide 26: Operating Segment Results (unaudited)
Operating Segment Results (unaudited) 26
Slide 27: Consolidated Balance Sheets (unaudited)
Consolidated Balance Sheets (unaudited) 27
Slide 28: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) 28
Slide 29: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 29
Slide 30: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 30
Slide 31: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 31
Slide 32: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 32