Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Investor Presentation (May 2018)
29 slides from Npk International's investor presentation, May 15, 2018
Slide 1: Newpark Resources Presentation May 2018
NEWPARK RESOURCES PRESENTATION MAY 2018
Slide 2: Forward Looking Statements
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
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 Two Operating Segments provide Full Year balanced income contribution: $1,200 $1,118 First Quarter $1,042 $1,000 Fluids Systems 3rd largest global provider of Drilling and millions) $800 $748 ($ $677 Completions Fluids to Oil and Gas $600 $471 explorat
Slide 5: Global Strength
GLOBAL STRENGTH Revenue by Region –Q1 2018 U.S. Canada Latin America Eastern Hemisphere 25% 4% 61% 10% 5
Slide 6: Strengthened by Our Investments
STRENGTHENED BY OUR INVESTMENTS Elevated capital campaign completed Mats: Completed Manufacturing 2015 Infrastructure investments significantly and Technology Center 2016 enhance our competitiveness and support our market expansion initiatives Reflects our commitment to be the global leader in
Slide 7: Fluids Systems - Overview
FLUIDS SYSTEMS‐ OVERVIEW Total Segment Revenues $1,200 Full Year Largest independent Drilling $965 $1,000 $926 First Quarter and Completion Fluids provider $800 globally* millions) $616 $600 $581 ($ $395 $400 Capitalizing on strong market $200 Revenues $136 $177 $0 position in drilling fluids to
Slide 8: Fluids Systems - Leading Technology
FLUIDS SYSTEMS‐ LEADING TECHNOLOGY 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 drilling fluid syst
Slide 9: Fluids Systems - North America
FLUIDS SYSTEMS –NORTH AMERICA North American Revenues $800 $687 $700 $654 Full Year Currently hold #2 market share $600 First Quarter position in U.S. land* millions) $500 ($ $395 $400 $352 Consistently expanded share $300 through cycle $183 Revenue $200 $100 Service quality, operational focus
Slide 10: Fluids Systems - International
FLUIDS SYSTEMS – INTERNATIONAL International Revenues $350 International presence remains key to Full Year $300 $272 $278 First Quarter our strategy, leveraging IOC/NOC $250 $229 $220 relationships globally $212 $200 millions) More stable than NAM, through the ($ $150 industry cycles $100 Long
Slide 11: Mats & Integrated Services - Overview
MATS & INTEGRATED SERVICES ‐ OVERVIEW Leading provider of engineered worksite and access solutions Established core business in NAM exploration market, where mats reduce operator’s costs and improve environmental protection during drilling and completion phase In recent years, expanded into no
Slide 12: Mats - Competitive Advantages Across Industries
MATS ‐ COMPETITIVE ADVANTAGES ACROSS INDUSTRIES Superior Transportation, Install & Enhanced EH&S Scale & Quality Remediation Efficiency Attributes Responsiveness DO WE HAVE PHOTOS OF ACTUAL INSTALL? PHOTO FROM PG 3 OF BROCHURE? 12
Slide 13: Mats - Accelerating Diversification
MATS – ACCELERATING DIVERSIFICATION Diversifying beyond the wellsite Accelerating penetration of non‐ exploration markets, both domestically and internationally Larger addressable market Similar value drivers as exploration market Innovate and commercialize differentiated system enhancemen
Slide 14: Mats - Well Service Group/Utility Access Solution Acquisition
MATS –WELL SERVICE GROUP/UTILITY ACCESS SOLUTION ACQUISITION Acquisition completed November 2017 Served as strategic logistics and installation service provider since 2012 Expands complementary service offering, creating natural bundles with matting systems Enhances mats geographical presenc
Slide 15: Mats - Diversification Is Key to Earnings Stability
MATS –DIVERSIFICATION IS KEY TO EARNINGS STABILITY Following collapse of O&G activity in Segment Revenue and EBITDA Margin Revenue 2015, expansion of business outside of 60% NAM exploration accelerated $200 EBITDA Margin 50% $153 Geographic and end‐user market Millions) $150 40% Margin* $132 ($
Slide 16: Financial Focus
FINANCIAL FOCUS Operating Cash Flow $200 Consistently generated positive operating $152 cash flow through the cycle $150 $122 Maintained modest debt level throughout $89 $100 the cycle Millions $38 $50 $ Short‐Term Focus $11 $1 $0 Pursue repatriation of available foreign 2013 2014 2015 2016 20
Slide 17: Appendix
Dcwranx APPENDIX
Slide 18: Consolidated Statements of Operations (Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) Three Months Ended March 31, December 31, March 31, (In thousands, except per share data) 2018 2017 2017 Revenues$ 227,293 $ 204,389 $ 158,691 Cost of revenues 186,455 165,291 129,590 Selling, general and administrative expenses 26,954 29,541 25,397 O
Slide 19: Operating Segment Results (Unaudited)
OPERATING SEGMENT RESULTS (UNAUDITED) Three Months Ended March 31, December 31, March 31, (In thousands) 2018 2017 2017 Revenues Fluids systems$ 177,379 $ 162,404 $ 136,050 Mats and integrated services 49,914 41,985 22,641 Total revenues $ 227,293 $ 204,389 $ 158,691 Operating income (loss) Fluids s
Slide 20: Consolidated Balance Sheet (Unaudited)
CONSOLIDATED BALANCE SHEET (UNAUDITED) (In thousands, except share data) March 31, 2018 December 31, 2017 ASSETS Cash and cash equivalents$ 59,938 $ 56,352 Receivables, net 267,179 265,866 Inventories 189,109 165,336 Prepaid expenses and other current assets 16,502 17,483 Total current assets 532,72
Slide 21: Consolidated Statements of Cash Flow (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) Three Months Ended March 31, (In thousands) 2018 2017 Cash flows from operating activities: Net income (loss) $ 7,222 $ (983) Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: Depreciation and amortization 11,271
Slide 22: 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 23: Non-GAAP Financial Measures (Unaudited)
NON‐ GAAP FINANCIAL MEASURES(UNAUDITED) Fluids Sys tems December 31, March 31, (In thousands) 2013 2014 2015 2016 2017 2018 Operating income (loss) (GAAP) (2) $ 72,604 $ 95,600 $ (86,770) $ (43,631) $ 27,580 $ 10,477 Depreciation and amortization 26,679 22,934 22,108 20,746 21,566 5,290 EBITDA (non-
Slide 24: 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: Consolidated December 31, March 3 1 , (In thousands) 2013 2014 2015
Slide 25: Experienced Leadership
EXPERIENCED LEADERSHIP • Paul Howes President & Chief Executive Officer • Gregg Piontek Senior Vice President & Chief Financial Officer • Mark Airola Senior Vice President, General Counsel & Administration Officer • Phil Vollands President Fluids Systems • Bruce Smith Chief Technology Marketing Offi
Slide 26: Management Biographies
MANAGEMENT BIOGRAPHIES 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 industry, chemicals
Slide 27: Management Biographies
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
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: Focused on Customer's Needs
FOCUSED ON CUSTOMER’S NEEDS