Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (December 2024)
35 slides from Npk International's investor presentation, December 2024
Slide 1: Investor Presentation
Investor Presentation December 2024 Privileged & Confidential | © 2024 Newpark Resources Inc.
Slide 2: Safe Harbor
Safe Harbor 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 such as “w
Slide 3: Business Overview
Business Overview NEWPARK
Slide 4: We Are a Pure-Play Specialty Rental & Services Company
We Are a Pure-Play Specialty Rental & Services Company We provide worksite access solutions to power and infrastructure markets ABOUT NEWPARK Financial Highlights Revenue Adj. EBITDA* Adj. EPS* We are a vertically integrated 32% $208 industrial services company $206 $49 $50 $0.21 that provides speci
Slide 5: DURA-BASE® Advanced-Composite Mat System
DURA-BASE® Advanced-Composite Mat System Our flagship product is the original composite mat made from 100% recyclable high-density polyethylene DURA-BASE® COMPOSITE MATTING SYSTEM Flexible Model Accommodates Varying Customer Needs We provide both rental and purchase options for our customers DURA-BA
Slide 6: Vertically Integrated Model Supports Specialty End-Markets
Vertically Integrated Model Supports Specialty End-Markets We combine industry-leading IP and deep manufacturing expertise with on-demand logistics support and installation Engineering & Design Precision Manufacturing Logistics Planning & Installation Specialty Rental, Product Sale • Introduced DURA
Slide 7: We Own and Operate The Largest Composite Matting Fleet in the U.S.
We Own and Operate The Largest Composite Matting Fleet in the U.S. We have the scale to capitalize on multi-year investment cycles across multiple end-markets Revenue Macro End-market Concentration Segment Demand Drivers Outlook Power Transmission • Need for significant sustained investment driven b
Slide 8: Stable Base of Recurring Customer Relationships
Stable Base of Recurring Customer Relationships Newpark is approaching 10% market share in the U.S. matting market* High Recurring Revenue Relationships** Growing Revenue Per Relationship Percentage of recurring rental & service customers for 2023 Average rental & service revenue per customer, $ in
Slide 9: Significant Opportunity within Power Transmission Market
Significant Opportunity within Power Transmission Market Stable & growing investments in an aging grid to support hardening, upgrades and interconnects with renewables Total Estimated Transmission CapEx and Power Demand Adaptation, hardening and resilience $45 4,500 as drivers of transmission invest
Slide 10: Our Specialty Rental Business Generates ~35% IRR
Our Specialty Rental Business Generates ~35% IRR Recyclable composite matting provides for long useful raw material life and superior IRR Newpark Rental Mat Economic Case Material can be $10,000 recycled multiple Annual Rental Revenue generation times $8,000 revenue ~50% of cost Recycled for <50% of
Slide 11: Recent Performance
Recent Performance NEWPARK
Slide 12: 3Q24 Performance Summary, 4Q24 & Full-Year 2024 Outlook
3Q24 Performance Summary, 4Q24 & Full-Year 2024 Outlook Following a challenged 3Q24 performance, rental demand has rebounded sharply entering 4Q24 Third Quarter 2024 Fourth Quarter & Full-Year 2024 Performance Summary Performance Outlook Project timing & facility maintenance impacted performance We
Slide 13: 3Q23 vs. 3Q24 Performance Bridge
3Q23 vs. 3Q24 Performance Bridge 3Q23 vs. 3Q24 Adjusted EBITDA from Continuing Operations* $ in millions $12 ($0) ($1) ($2) $3 $8 ($3) ($1) Q3 2023 Rental Pricing Rental Volume Service Product Sales Maintenance Cost Reduction Q3 2024 * Represents a non-GAAP financial measure. See reconciliation to t
Slide 14: Strategic Focus on Fleet Optimization, Price Discipline, Cost Controls
Strategic Focus on Fleet Optimization, Price Discipline, Cost Controls Industrial Solutions Revenue Industrial Solutions Adjusted EBITDA* Industrial Solutions Adjusted EBITDA Margin* $ in millions $ in millions Adjusted EBITDA as % of total revenue $207.6 $74.4 35.8% 34.4% 28.3% $57.3 $19.7 $44.2 $1
Slide 15: Anticipate Demand Acceleration in 4Q24 and into 2025
Anticipate Demand Acceleration in 4Q24 and into 2025 TTM Rental Revenue TTM Services Revenue TTM Product Sales Revenue $ in millions $ in millions $ in millions Anticipate both a q/q and y/y Lower service intensity on rental projects Product sales can be volatile quarter-to- improvement in rental re
Slide 16: Industrial Solutions Driving Superior Return on Invested Capital
Industrial Solutions Driving Superior Return on Invested Capital Pre-Tax Return on Industrial Solutions Segment Net Assets* (%) Strong historical returns improving as rental operations expand 23.2% 21.1% 20.6% 20.0% FY21 FY22 FY23 TTM 3Q24 * Net assets represents segment net assets, excluding cash a
Slide 17: Financial Guidance
Financial Guidance Current as of November 7, 2024 For The Full Year 2024, Newpark Currently Anticipates The Following: Industrial Solutions Industrial Solutions Industrial Solutions Revenue Adjusted EBITDA Capital Expenditures in a range of in a range of in a range of $217-$223 $77-$81 $33-$35 milli
Slide 18: Value Creation Roadmap
Value Creation Roadmap é NEWPARK
Slide 19: Our Commercial Growth Priorities Include Both Organic and Inorganic Growth
Our Commercial Growth Priorities Include Significant Balance Sheet Optionality Both Organic and Inorganic Growth Net cash* of $29 million at 9/30/24 Nearly $100 million of cash and availability under ABL credit facility exiting 3Q24 Our Organic Growth Priorities Pursuing the highest-return, value-en
Slide 20: Our Operational Excellence Initiatives Drive Asset Optimization, Sustainable Cost Reductions
Our Operational Excellence Initiatives Reducing Fixed Overhead, Drive Asset Optimization, Sustainable Improving Efficiency Cost Reductions SG&A as % of total revenue Fluids Systems divestiture paves the way for further SG&A reductions ~350 bps of SG&A margin Recent Operational Improvements improveme
Slide 21: Our Capital Allocation Priorities Seek To Maximize Return On Capital Employed
Our Capital Allocation Priorities Seek To Maximize Return On Capital Employed Consistent return of capital under $50 million share repurchase authorization $ in Millions $46 Capital Allocation Priorities $40 $35 $34 Maintain modest leverage Organic investment to expand rental fleet, along with assoc
Slide 22: Investment Conclusion
Investment Conclusion We are a pure-play worksite access solutions business Newpark has become a leading, pure-play specialty rental and services company serving the global worksite access and critical infrastructure markets, creating a simpler, higher-margin, more profitable business entering 2025
Slide 23: Appendix
IX Append NEWPARK
Slide 24: Experienced Leadership Team
Experienced Leadership Team Matthew S. Lanigan Gregg S. Piontek Lori Briggs Celeste Frugé President and Chief Executive Officer Senior Vice President Vice President, Business Operations Vice President – General Counsel, Chief & Chief Financial Officer Compliance Officer & Corporate Secretary Matthew
Slide 25: Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited) (1) Provision (benefit) for income taxes from continuing operations for the three and nine months ended September 30, 2024 includes an income tax benefit of $14.6 million primarily reflecting the release of valuation allowances on U.S. net operating
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
Slide 33: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 33
Slide 34: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) 34
Slide 35: Privileged & Confidential | © 2024 Newpark Resources Inc.
Privileged & Confidential | © 2024 Newpark Resources Inc.
Newpark Resources — Investor Presentation (December 2024) on 6ix