Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (December 2019)
29 slides from Npk International's investor presentation, Dec 11, 2019
Slide 1: Newpark Resources Presentation December 2019
NEWPARK RESOURCES PRESENTATION DECEMBER 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 inte
Slide 4: Company Overview
COMPANY OVERVIEW Consolidated Revenues $1,400 Full Year . Newpark’s value-proposition is driven by $1,200 $1,118 First Nine Months a focus on providing leading technology that reduces customer’s total operating $1,000 $947 costs, risk, and environmental impact. $800 $748 Two operating segments: $677
Slide 5: Global Strength
GLOBAL STRENGTH First Nine Months 2019 - Revenue by Region U.S. Europe, Middle East, Rest of World Africa 7% 21% 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 Nine Months growth: $800 $716 Newpark share positioned #3 globally $616 $600 $581 Nearly 1/3 of segment revenues generated from IOC/NOC cus
Slide 7: Fluids Systems – Leading Technology
FLUIDS SYSTEMS – LEADING TECHNOLOGY Developing Total Fluids Solutions . Our focus on sustainability is a driving force behind breakthroughs in our Evolution high performance water-based drilling fluid systems, which offer environmentally-sound solutions to the rigorous operational demands of today’s
Slide 8: Fluids Systems – North America
FLUIDS SYSTEMS – NORTH AMERICA North American Revenues . Revenue recovery has outperformed $800 industry rig counts, driven primarily $687 Full Year $700 by entry into Gulf of Mexico, and rig First Nine Months $600 efficiency (increases in drilled $500 $477 $395 footage per rig) $400 $352 $300 $355
Slide 9: Fluids Systems – Market Expansion Underway
FLUIDS SYSTEMS – MARKET EXPANSION UNDERWAY Manufacturing . Market expansion capitalizes upon existing Fluids Systems infrastructure, expertise and market credibility Deepwater Gulf of Mexico Deepwater market share recently expanded to four rigs Expansion into completions fluids increases revenue
Slide 10: Fluids Systems – International
FLUIDS SYSTEMS – INTERNATIONAL International Revenues $350 Full Year . Strong IOC/NOC presence has been key $300 $278 First Nine Months to revenue and profitability stability $250 $239 $229 $212 $220 through the industry cycle $200 . International IOC/NOC contract stability $150 $183 $141 impacted b
Slide 11: Mats & Integrated Services - Overview
MATS & INTEGRATED SERVICES - OVERVIEW Total Segment Revenues $250 Full Year $231 . Leading provider of engineered First Nine Months worksite and access solutions, where $200 our systems are designed to: $153 Reduce customer operating costs $150 $132 $161 $145 Reduce customer execution risk Imp
Slide 12: Mats - Competitive Advantages Across Industries
MATS - COMPETITIVE ADVANTAGES ACROSS INDUSTRIES Transportation, Enhanced Superior Install, and Environmental Scale and Quality Remediation Sustainability & Responsiveness Efficiency Safety 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: Financial Focus
FINANCIAL FOCUS Free Cash Flow (1) Cash Flow and Liquidity Profile $60 $55 . Generating consistent positive free cash $40 $21 $24 flow while funding strategic growth initiatives $20 $15 . Modest debt burden provides flexibility $0 $Millions -$20 Near-Term Focus ($23) -$40 . Continue repatriation of
Slide 15: Appendix
APPENDIX ol -EL NEWPARK
Slide 16: Consolidated Statements of Operations (Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 16
Slide 17: Operating Segment Results (Unaudited)
OPERATING SEGMENT RESULTS (UNAUDITED) 17
Slide 18: Consolidated Balance Sheets (Unaudited)
CONSOLIDATED BALANCE SHEETS (UNAUDITED) 18
Slide 19: Consolidated Statements of Cash Flows (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 19
Slide 20: 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 21: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) (2) 2019 Fluids Systems operating income and EBITDA include charges of $1.7 million related to the modification of the Company’s retirement policy and severance costs. 2018 Fluids Systems operating income and EBITDA include a total of $5.0 million of charges a
Slide 22: Non-GAAP Financial Measures (Unaudited)
NON-GAAP FINANCIAL MEASURES (UNAUDITED) The following table reconciles the Company’s net cash provided by operating activities calculated in accordance with GAAP to the non-GAAP financial measure of the Company's free cash flow: 22
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: 23
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 David Paterson President Fluids Systems Matthew
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 — =
Newpark Resources — Investor Presentation (December 2019) on 6ix