Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (November 2022)
21 slides from Npk International's investor presentation, Nov 2, 2022
Slide 1: Investor Presentation November 2022
Investor Presentation November 2022
Slide 2: Notice to Investors: Forward Looking Statements
Notice to Investors 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,
Slide 3: Why Invest in Newpark Resources?
Why Invest in Newpark Resources? 3 Leading Provider of Sustainable Technologies and Services Across the Energy Industry Global presence in large-scale energy markets Proven technologies that offer tangible economic and ESG benefits Reshaping the balance sheet and capital structure to support growth
Slide 4: Who are Newpark Resources Today?
Who are Newpark Resources Today? 4 $947 $820 $493 $615 $770 $116 $82 ($7) $39 $56 ($40) $0 $40 $80 $120 $160 $0 $200 $400 $600 $800 $1,000 2018 2019 2020 2021 TTM Q3 2022 EB IT D A (M IL LI O N S) Re ve nu es (M IL LI O N S) CONSOLIDATED REVENUES & ADJUSTED EBITDA** Revenues Adjusted EBITDA $83 $70
Slide 5: Strong Foundations for Value Creation & Growth
Strong Foundations for Value Creation & Growth Proven credibility, leveraging decades of experience INDUSTRY LEADER Sustainable and economically advantaged technology offerings TECHNOLOGY DRIVEN Newpark Service Advantage recognized by global customer base* SERVICE CULTURE Established presence in all
Slide 6: Serving Large-Scale, Long-Term End Markets
Serving Large-Scale, Long-Term End Markets 6 Multi Billion-Dollar Markets Provide Opportunity for Each Newpark Division to Scale GLOBAL ANNUAL ELECTRICAL GRID INVESTMENT ~$14T Investment in global electrical grid to enable “electrification of everything” ~$12T - $26T Investment in Oil & Gas projecte
Slide 7: Clear Strategic Focus
Clear Strategic Focus 7 Prioritize investment into high returning industrial growth markets aligned to energy transition and sustainability tailwinds Leverage strong foundations to expand sustainable technology and service solutions Laser focus on operating cost and balance sheet discipline to fund
Slide 8: Ability to Transition Business in Evolving Markets
Ability to Transition Business in Evolving Markets 8 2018 vs 2022 YTD RELATIVE EBITDA CONTRIBUTION O&G Utilities & Industrial From Origins as US Land Oil & Gas Services Provider Through Evolution by Focusing on Sustainable Technology To Global Sustainable Technology and Services Provider across the
Slide 9: Proven Commitment to ESG
Proven Commitment to ESG 9 Board of Directors ESG Committee Provides Oversight Industrial Solutions Fluids Systems • Water-based fluids lowers environmental impact, risk to people, and overall carbon footprint • Brine-tolerant chemicals reduces need for fresh water in stimulation • Safety drives eve
Slide 10: Business Segment Overview
Business Segment Overview Industrial Solutions Fluids Systems 10 $116 $90 $37 $37 $44 $115 $110 $93 $149 $143 $83 $70 $34 $61 $57 $0 $20 $40 $60 $80 $100 $120 $0 $50 $100 $150 $200 $250 2018 2019 2020 2021 TTM Q3 2022 AD JU ST ED E BI TD A (M IL LI O N S) RE VE N U E (M IL LI O N S) Utilities & Othe
Slide 11: Responsibly Managing Our Transition
$37 $27 $0 $10 $20 $30 $40 2019 YTD Q3 2022 Annualized $14 $6 $0 $4 $8 $12 $16 2019 YTD Q3 2022 Annualized INTEREST EXPENSE 5% Average borrowing rate on outstanding debt • Leveraging asset-based lending to drive reductions in borrowing cost • Primary bank facility matures in May 2027 Responsibly Man
Slide 12: Prioritizing Investment in High Returning Industrial Growth
Prioritizing Investment in High Returning Industrial Growth 12 11% CAGR in Revenues from Utilities & Industrial Markets from 2018 - 2021 * Source: Edison Electric Institute, December 2021 ** Reflects management estimate $61 $60 $66 $71 $82 $86 $83 $85 $81 $83 $45 $39 $27 $43 $48 $58 $66 $51 $59 $59
Slide 13: FCF Generation and Capital Allocation Philosophy
FCF Generation and Capital Allocation Philosophy 13 Q4 2022 Divestitures Set the Stage for Positive FCF Generation; Clear Priorities Established $21 $41 $52 ($9) ($43) ($60) ($40) ($20) $0 $20 $40 $60 2018 2019 2020 2021 YTD Q3 2022 M IL LI O N S FREE CASH FLOW (FCF)* Net Income adj. for non-cash It
Slide 14: Why Invest in Newpark Resources?
Why Invest in Newpark Resources? Global presence in large scale energy markets Demonstrated ability to transition and grow Operate at both ends of the energy spectrum Proven technologies with economic and ESG benefits Focusing investment on higher growth industrial opportunities Capital structure to
Slide 15: Appendix
APPENDIX
Slide 16: Consolidated Statements of Operations
Consolidated Statements of Operations (unaudited) 16 (In thousands, except per share data) September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Revenues 219,853$ 194,144$ 151,797$ 590,435$ 435,218$ Cost of revenues 187,884 168,206 132,273 507,078 376,370 Selling,
Slide 17: Operating Segment Results
Operating Segment Results (unaudited) 17 (In thousands) September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Revenues Fluids Systems 168,621$ 145,261$ 107,955$ 454,896$ 292,897$ Industrial Solutions 51,232 48,883 41,976 135,539 134,033 Industrial Blending - - 1,8
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets (unaudited) 18 (In thousands, except share data) September 30, 2022 December 31, 2021 ASSETS Cash and cash equivalents 20,450$ 24,088$ Receivables, net 211,496 194,296 Inventories 160,039 155,341 Prepaid expenses and other current assets 14,162 14,787 Current assets held
Slide 19: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (unaudited) 19 (In thousands) 2022 2021 Cash flows from operating activities: Net loss (29,826)$ (21,845)$ Adjustments to reconcile net loss to net cash provided by (used in) operations: Impairments and other non-cash charges 37,322 - Depreciation and amortizati
Slide 20: Non-GAAP Financial Measures: Consolidated
Non-GAAP Financial Measures (unaudited) 20 Consolidated (In thousands) 2018 2019 2020 2021 2021 2022 2022 Net income (loss) (GAAP) 32,281$ (12,946)$ (80,696)$ (25,526)$ (21,845)$ (29,826)$ (33,507)$ Interest expense, net 14,864 14,369 10,986 8,805 6,748 4,719 6,776 Provision (benefit) for income tax
Slide 21: Non-GAAP Financial Measures: Fluids Systems
21 Non-GAAP Financial Measures (unaudited) Fluids Systems (In thousands) 2018 2019 2020 2021 2021 2022 2022 Revenues 715,813$ 620,317$ 354,608$ 420,789$ 292,897$ 454,896$ 582,788$ Operating income (loss) (GAAP) 40,337$ 3,814$ (66,403)$ (19,012)$ (19,944)$ (20,394)$ (19,462)$ Depreciation and amortiz
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