Npk International Inc. · NYSE:NPKI
Npk International — Newpark Resources — Q4 2020 Earnings Presentation
25 slides from Npk International's earnings presentation, Feb 12, 2021
Slide 1: Newpark Resources February 2021
Newpark Resources February 2021
Slide 2: Forward-looking statements
2 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,” “would,” “should,” “anticip
Slide 3: Non-GAAP Financial Measures
3 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 interest, taxes, depreciation a
Slide 4: Consolidated Revenues and Operating Segments
$471 $748 $947 $820 $493 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2016 2017 2018 2019 2020 Re ve nu es ($ m ill io ns ) Consolidated Revenues Two operating segments: Fluids Systems We are a leading provider of drilling, completion, and stimulation chemical products, rated #1 in custome
Slide 5: Environmentally Focused Product Offering and Social Standards
ENVIRONMENTALLY FOCUSED PRODUCT OFFERING Environmentally-Focused Drilling Fluids Technologies • Water-based and synthetic-based fluids, replacing oil-based mud • Lower environmental impact • Lower risk to people & environment Efficient Stimulation Products • Lower water u liza on • U lize more recyc
Slide 6: COVID-19 Impact and Quarterly Revenue
6 Primary Commercial Impact of COVID-19: • Fluids Systems (EMEA region) Restrictions on movement of personnel and products within several countries have caused operational disruptions and customer project delays. Q4 2020 revenues down 50% from Q4 2019, with recovery dependent on the lifting of COVID
Slide 7: Fluids Systems Overview
$395 $616 $716 $620 $355 $0 $100 $200 $300 $400 $500 $600 $700 $800 2016 2017 2018 2019 2020 Re ve nu es ($ m ill io ns ) Total Segment Revenues Fourth Quarter 2020 - Revenue by Region 43% 15% 31% 11% U.S. Land U.S. GOM Europe, Middle East, Africa Rest of World Drilling Fluids Completion & Reservoir
Slide 8: Fluids Systems – North America
$183 $395 $477 $427 $227 $44 $49 $0 $100 $200 $300 $400 $500 2016 2017 2018 2019 2020 Re ve nu e ($ M IL ) North America Revenues 8 Total Revenue GOM Revenue $260 $310 $325 $308 $214 $0 $100 $200 $300 $400 2016 2017 2018 2019 2020N et C ap it al E m pl oy ed ($ M IL ) North America Net Capital Emplo
Slide 9: Fluids Systems – International
9 $212 $220 $239 $193 $128 $0 $50 $100 $150 $200 $250 2016 2017 2018 2019 2020 International Revenues Re ve nu e ($ m ill io ns ) $95 $33 2020 Revenues by Customer Type IOC/NOC Regional Independent All Other Markets • Selective geographic expansion as market outlook improves, pursuing opportunities
Slide 10: Industrial Solutions Overview
Total Segment Revenues $76 $132 $231 $200 $138 $0 $50 $100 $150 $200 $250 2016 2017 2018 2019 2020 Re ve nu es ($ m ill io ns ) Strategic Course Unchanged • 2021 poised for growth as utility sector projects delayed by COVID-19 recommence • Strategy expected to continue to capitalize on energy transi
Slide 11: Site and Access Solutions – Environmental Commitment
Our fully recyclable composite matting program prevents the deforestation associated with production of timber alternatives Lighter weight mats require fewer truckloads, thereby saving CO2 emissions with every load eliminated Fewer truckloads mean less miles driven and safer conditions for the commu
Slide 12: Financial Focus: Capital Structure, Cash Flow and Liquidity
12(1) Proceeds from sale of property, plant and equipment include the commercial sale of assets from mat rental fleet and other asset disposals. Financial Focus Capital Structure • 2020 debt balance reflects lowest level in > 20 years • $67m Convertible Notes due December 2021 expected to be settled
Slide 13: Appendix
APPENDIX NEWPARK
Slide 14: Consolidated Statements of Operations (Unaudited)
14 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Financial Report
Slide 15: Operating Segment Results (Unaudited)
15 OPERATING SEGMENT RESULTS (UNAUDITED) Financial Report
Slide 16: Consolidated Balance Sheets (Unaudited)
16 CONSOLIDATED BALANCE SHEETS (UNAUDITED) Financial Report
Slide 17: Consolidated Statements of Cash Flows (Unaudited)
17 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Financial Report
Slide 18: Non-GAAP Financial Measures (Unaudited)
18 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report
Slide 19: Non-GAAP Financial Measures (Unaudited)
19 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report
Slide 20: Non-GAAP Financial Measures (Unaudited)
20 NON-GAAP FINANCIAL MEASURES (UNAUDITED) Financial Report
Slide 21: Experienced Leadership: Executive Management
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 Lanigan President Indu
Slide 22: Paul L. Howes, President & CEO
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, chemicals and plastics man
Slide 23: Edward "Chip" Earle, General Counsel and Chief Administrative Officer
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 Counsel, Corporate Secreta
Slide 24: Matthew Lanigan, President Industrial Solutions
Matthew Lanigan, President Industrial Solutions: 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 from there to Offshore Product
Slide 25: 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 our stockholders. A