Company provides outlook for first quarter 2009
THE WOODLANDS, Texas, March 24 /PRNewswire-FirstCall/ -- Newpark
Resources, Inc. (NYSE: NR) will present at the Sidoti & Company New York
Emerging Growth Institutional Investor Forum on Wednesday, March 25, 2009,
during which Newpark President and CEO Paul Howes will provide an overview of
the Company's progress on its strategic initiatives and will also give
preliminary estimates of expected results for the first quarter of 2009. The
presentation slides will be available on the Company's website and filed as an
exhibit to a Current Report on Form 8-K to be filed by the Company on March
With regard to the first quarter of 2009, based on management's
preliminary review of quarter to date operational results, Newpark expects to
report revenues for the first quarter of 2009 between $120 million and $130
million and a net loss in the range of $0.08 to $0.12 per diluted share. This
estimate excludes the impact, if any, from an evaluation of the carrying value
of the Company's goodwill and other intangible assets and any possible
non-cash impairment charges.
Paul Howes, President and Chief Executive Officer of Newpark, stated, "The
first three months of 2009 are proving to be an extremely difficult market for
oil service companies in North America. The U.S. rig count for the week ended
March 20, 2009 was 1,085, down 47% from its peak of 2,031 in September 2008.
This significant decline in rig activity combined with aggressive bidding from
our competitors on new and existing work is causing a correlating drop in
revenue and compression of margins.
"As previously announced, we began cost cutting initiatives during the
fourth quarter of 2008, and we anticipate annual savings of approximately $40
million from actions taken to date. These cost cutting initiatives consist of
significant headcount reductions, a salary and wage freeze, reduced
discretionary spending as well as reductions in capital expenditures. Efforts
to further drive down costs throughout 2009 will focus on transportation
expenses in addition to procurement of barite and other materials.
"On a more positive note, our international markets are more robust and
more geared to oil as compared to natural gas activity here in North America.
We expect to see continued opportunities to grow our international business in
the Mediterranean, Middle East and Brazil. Further, we are pleased that we
have been able to reduce the outstanding balance on our line of credit by $26
million since the beginning of 2009," concluded Howes.
Newpark Resources, Inc. is a worldwide provider of drilling fluids,
temporary worksites and access roads for oilfield and other commercial
markets, and environmental waste treatment solutions. For more information,
visit our website at www.newpark.com.
This news release 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, including Newpark's strategy for
growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the forward-looking
statements may be identified by words like "expects," "anticipates," "plans,"
"intends," "projects," "indicates," and similar expressions. These statements
are not guarantees of future performance and involve a number of risks,
uncertainties and assumptions. Many factors, including those discussed more
fully elsewhere in this release and in documents filed with the Securities and
Exchange Commission by Newpark, particularly its Annual Report on Form 10-K
for the year ended December 31, 2008, as well as others, could cause results
to differ materially from those stated. These factors include, but are not
limited to, the instability and effect of the credit and capital markets on
the economy in general and the oil and gas industry in particular, the access
to the credit markets by both Newpark and Newpark's customers, the outlook for
drilling activity in North America and the rest of the world, the
investigation of the certain accounting matters by the Securities and Exchange
Commission; changes in the laws, regulations, policies and economic
conditions, including inflation, interest and foreign currency exchange rates,
of countries in which Newpark does business; competitive pressures; successful
integration of structural changes, including restructuring plans,
acquisitions, divestitures and alliances; cost of raw materials, research and
development of new products, including regulatory approval and market
acceptance; and seasonality of sales of Newpark products. Newpark's filings
with the Securities and Exchange Commission can be obtained at no charge at
www.sec.gov, as well as through our website at www.newpark.com.
Contacts: James E. Braun, CFO
Newpark Resources, Inc.
Ken Dennard, Managing Partner
Dennard Rupp Gray & Easterly, LLC
SOURCE Newpark Resources, Inc.