Newpark Resources Reports First Quarter 2023 Results


Company reports net income of $0.06 per diluted share; Adjusted Net Income of $0.09 per diluted share
Cash flow from operating activities of $29 million; Free Cash Flow of $23 million
Industrial Solutions revenues increased 58% year-over-year
 
THE WOODLANDS, TexasMay 2, 2023 /PRNewswire/ -- Newpark Resources, Inc. (NYSE: NR) ("Newpark" or the "Company") today announced results for its first quarter ended March 31, 2023. Total revenues for the first quarter of 2023 were $200.0 million compared to $225.2 million for the fourth quarter of 2022 and $176.4 million for the first quarter of 2022. Net income for the first quarter of 2023 was $5.6 million, or $0.06 per diluted share. Net income was $9.0 million, or $0.10 per diluted share, for the fourth quarter of 2022, and $2.5 million, or $0.03 per diluted share, for the first quarter of 2022. Adjusted Net Income for the first quarter of 2023 was $0.09 per diluted share and Adjusted EBITDA was $21.0 million, as compared to Adjusted Net Income of $0.07 per diluted share and Adjusted EBITDA of $21.5 million in the fourth quarter of 2022, and Adjusted Net Loss of $0.00 per share and Adjusted EBITDA of $11.7 million in the first quarter of 2022.

Matthew Lanigan, Newpark's President and Chief Executive Officer, stated, "Our first quarter continued the momentum from the fourth quarter, marked by solid performance both financially, and against our stated key initiatives. We also continued to return significant value to shareholders through the repurchase of nearly 4% of our outstanding shares in the quarter.

"Our Industrial Solutions segment delivered the strongest first quarter revenue performance in our history, validating the strength of our offering and the robustness of market demand. The utilities and industrial end-markets contributed nearly 80% of our first quarter Industrial Solutions revenues, and we are pleased with our progress to solidify Newpark as a leader in the development of sustainable technologies and services, supporting the energy transition. First quarter 2023 Industrial Solutions revenues included a $36 million contribution from rental and services and $19 million of product sales, resulting in segment operating income of $14.5 million and Adjusted EBITDA of $19.7 million for the quarter. Benefitting from 58% year-over-year revenue growth, the segment has delivered $213 million of revenues, $52 million of operating income and $74 million of Adjusted EBITDA over the trailing 12-month period. Additionally, we are pleased to highlight that we began to ramp up production of our new DURA-BASE® 800 seriesTM mat in the first quarter, which fully integrates with our existing DURA-BASE format and offers a nearly 15% reduction in weight, therefore driving further efficiency in transportation costs and associated carbon emissions without impacting product performance."

Lanigan continued, "With the effect of the fourth quarter divestitures within the U.S., Fluids Systems delivered revenues of $144 million, operating income of $3.5 million and Adjusted EBITDA of $8.7 million in the first quarter. The first quarter included $69 million of revenues from U.S. land markets, $19 million from Canada, and $56 million from international operations, which included a quarterly record of $53 million from the EMEA region. Corporate office expense increased to $7.8 million in the first quarter, which includes nearly $1 million related to strategic planning activities and an organizational design project.

"Following the end of the first quarter, we've implemented several organizational changes to reduce the overhead structure for the evolving business, intended to streamline operational support, remove layers of management and simplify our business support activities to drive decision-making closer to the customer, particularly within Fluids Systems and the Corporate office. These recent actions are expected to generate $6 million of annualized recurring cost savings, with the benefits being realized over the next few quarters.

"Regarding cash flows, we had a very solid start to the year, reflecting the benefits of our recent divestitures and the ongoing business transformation. Cash flows from operating activities was $29 million for the quarter, driving Free Cash Flow of $23 million. Total capital expenditures were $7 million, roughly 95% of which was directed to support our Industrial Solutions expansion in the utilities sector. The usage of our Free Cash Flow and proceeds from divestitures was fairly balanced, with $15 million being used to reduce debt and another $15 million used to repurchase shares," added Lanigan.

"As we look ahead to the second quarter, we expect Industrial Solutions to deliver modest year-over-year revenue growth, which puts the segment on track to deliver mid-to-upper teens percentage revenue growth for the full year 2023. Fluids Systems is expected to pull back roughly 15% sequentially in the second quarter, reflecting the Canada seasonality and our ongoing efforts to focus on key markets.  We expect strong Free Cash Flow generation in the second quarter, including continued robust EBITDA generation in Industrial Solutions along with reductions in Fluids Systems working capital. During the month of April, we completed $5 million of additional share repurchases and our outstanding share count now stands at 85 million shares, a reduction of nearly 10% within the past six months," concluded Lanigan.

Strategic Actions Update

As part of the Company's previously disclosed strategic portfolio review, which focused on identifying opportunities for value-creating options in the portfolio, several strategic actions were completed in the fourth quarter of 2022. These actions included the exit of the Industrial Blending business and sale of associated assets, the sale of the Excalibar U.S. mineral grinding business, and the exit of the Gulf of Mexico Fluids operations. During the first quarter of 2023, $21 million of cash was generated primarily from the winddown of the retained working capital from these transactions.

Following these divestiture transactions, Fluids Systems is meaningfully simplified, with operations primarily in North America land and EMEA regions. As of March 31, 2023, the segment has nearly $220 million of net working capital, primarily inventory and receivables, which represents roughly 85% of the segment's net capital employed.

We continue to evaluate our portfolio, as we streamline operations, monetize working capital in areas that no longer demonstrate a clear pathway to generate sufficient returns, and prioritize investment for high-return growth opportunities.

Segment Results

The Industrial Solutions segment generated revenues of $55.9 million for the first quarter of 2023 compared to $57.5 million for the fourth quarter of 2022 and $35.4 million for the first quarter of 2022. Segment operating income was $14.5 million for the first quarter of 2023 compared to $17.8 million for the fourth quarter of 2022 and $6.4 million for the first quarter of 2022.

The Fluids Systems segment generated revenues of $144.2 million for the first quarter of 2023 compared to $167.7 million for the fourth quarter of 2022 and $141.0 million for the first quarter of 2022. Segment operating income was $3.5 million for the first quarter of 2023 compared to operating income of $4.8 million for the fourth quarter of 2022 and $3.4 million for the first quarter of 2022. The Fluids Systems operating income for the first quarter of 2023 includes $3.2 million in charges primarily related to facility exit and severance costs. The Fluids Systems operating income for the fourth quarter of 2022 included a $1.0 million pre-tax gain related to the Excalibar sale, as well as $1.2 million in charges primarily related to facility exit and severance costs.

Conference Call

Newpark has scheduled a conference call to discuss first quarter of 2023 results and its near-term operational outlook, which will be broadcast live over the Internet, on Wednesday, May 3, 2023 at 9:30 a.m. Eastern Time / 8:30 a.m. Central Time. To participate in the call, dial 412-902-0030 and ask for the Newpark Resources call at least 10 minutes prior to the start time, or access it live over the Internet at www.newpark.com. For those who cannot listen to the live call, a replay will be available through May 17, 2023 and may be accessed by dialing 201-612-7415 and using pass code 13737710#. Also, an archive of the webcast will be available shortly after the call at www.newpark.com for 90 days. Please submit any questions for management prior to the call via email to NR@dennardlascar.com.

Newpark Resources, Inc. is a geographically diversified supplier providing environmentally-sensitive products, as well as rentals and services to a variety of industries, including oil and gas exploration, electrical transmission & distribution, pipeline, renewable energy, petrochemical, construction, and other industries. 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 of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as "will," "may," "could," "would," "should," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying them. These statements are not guarantees that our expectations will prove to be correct 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, and its Quarterly Reports on Form 10-Q, as well as others, could cause actual plans or results to differ materially from those expressed in, or implied by, these statements. These risk factors include, but are not limited to, risks related to the worldwide oil and natural gas industry; our ability to generate internal growth; economic and market conditions that may impact our customers' future spending; our customer concentration and reliance on the U.S. exploration and production market; our international operations; the ongoing conflict between Russia and Ukraine; operating hazards present in the oil and natural gas and utilities industries and substantial liability claims, including catastrophic well incidents; our contracts that can be terminated or downsized by our customers without penalty; our product offering and market expansion; our ability to attract, retain, and develop qualified leaders, key employees, and skilled personnel; our expanding services in the utilities sector, which may require unionized labor; the price and availability of raw materials; inflation; capital investments, business acquisitions, and joint ventures; our market competition; technological developments and intellectual property; severe weather, natural disasters, and seasonality; public health crises, epidemics, and pandemics; our cost and continued availability of borrowed funds, including noncompliance with debt covenants; environmental laws and regulations; our legal compliance; the inherent limitations of insurance coverage; income taxes; cybersecurity breaches or business system disruptions; our strategic actions; our divestitures; activist stockholders that may attempt to effect changes at our Company or acquire control over our Company; share repurchases; and our amended and restated bylaws, which could limit our stockholders' ability to obtain what such stockholders believe to be a favorable judicial forum for disputes with us or our directors, officers or other employees. We assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws. 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.

 

Newpark Resources, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 
 

Three Months Ended

(In thousands, except per share data)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Revenues

$       200,030

 

$       225,159

 

$       176,438

Cost of revenues

164,738

 

186,980

 

150,988

Selling, general and administrative expenses

25,410

 

24,648

 

24,433

Other operating (income) loss, net

(261)

 

(3,995)

 

50

Operating income

10,143

 

17,526

 

967

           

Foreign currency exchange loss

319

 

2,332

 

64

Interest expense, net

2,089

 

2,321

 

1,206

Income (loss) before income taxes

7,735

 

12,873

 

(303)

           

Provision (benefit) for income taxes

2,115

 

3,881

 

(2,824)

Net income

$           5,620

 

$           8,992

 

$           2,521

           

Calculation of EPS:

         

Net income - basic and diluted

$           5,620

 

$           8,992

 

$           2,521

           

Weighted average common shares outstanding - basic

88,573

 

92,324

 

92,118

Dilutive effect of stock options and restricted stock awards

1,997

 

1,156

 

1,821

Weighted average common shares outstanding - diluted

90,570

 

93,480

 

93,939

           

Net income per common share - basic:

$             0.06

 

$             0.10

 

$             0.03

Net income per common share - diluted:

$             0.06

 

$             0.10

 

$             0.03

 

Newpark Resources, Inc.

Operating Segment Results

(Unaudited)

 
 

Three Months Ended

(In thousands)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Revenues

         

Fluids Systems

$   144,174

 

$   167,705

 

$   141,014

Industrial Solutions

55,856

 

57,454

 

35,424

Industrial Blending

 

 

Total revenues

$   200,030

 

$   225,159

 

$   176,438

           

Operating income (loss)

         

Fluids Systems

$       3,466

 

$       4,828

 

$       3,374

Industrial Solutions

14,483

 

17,751

 

6,358

Industrial Blending

 

2,322

 

(886)

Corporate office

(7,806)

 

(7,375)

 

(7,879)

Total operating income (loss)

$     10,143

 

$     17,526

 

$           967

           

Segment operating margin

         

Fluids Systems

2.4 %

 

2.9 %

 

2.4 %

Industrial Solutions

25.9 %

 

30.9 %

 

17.9 %

Industrial Blending

NM

 

NM

 

NM

Summarized operating results (including charges in the Fluids Systems non-GAAP reconciliation table) of our now exited Excalibar business and Gulf of Mexico operations, both included in the Fluids Systems segment historical results, are shown in the following tables:

 

Three Months Ended

(In thousands)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Revenues

         

Excalibar

$                 —

 

$         11,922

 

$         14,346

Gulf of Mexico

 

8,011

 

2,694

Total revenues

$                 —

 

$         19,933

 

$         17,040

           

Operating income (loss)

         

Excalibar

$               (77)

 

$           1,127

 

$              833

Gulf of Mexico

(2,311)

 

(4,023)

 

(2,617)

Total operating income (loss)

$          (2,388)

 

$         (2,896)

 

$         (1,784)

 

Newpark Resources, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

(In thousands, except share data)

March 31,
2023

 

December 31,
2022

ASSETS

     

Cash and cash equivalents

$             23,618

 

$             23,182

Receivables, net

212,694

 

242,247

Inventories

149,989

 

149,571

Prepaid expenses and other current assets

9,962

 

10,966

Total current assets

396,263

 

425,966

       

Property, plant and equipment, net

194,626

 

193,099

Operating lease assets

22,605

 

23,769

Goodwill

47,174

 

47,110

Other intangible assets, net

19,471

 

20,215

Deferred tax assets

2,402

 

2,275

Other assets

2,330

 

2,441

Total assets

$           684,871

 

$           714,875

       

LIABILITIES AND STOCKHOLDERS' EQUITY

     

Current debt

$             23,158

 

$             22,438

Accounts payable

92,600

 

93,633

Accrued liabilities

37,763

 

46,871

Total current liabilities

153,521

 

162,942

       

Long-term debt, less current portion

78,041

 

91,677

Noncurrent operating lease liabilities

18,859

 

19,816

Deferred tax liabilities

7,692

 

8,121

Other noncurrent liabilities

9,529

 

9,291

Total liabilities

267,642

 

291,847

       

Common stock, $0.01 par value (200,000,000 shares authorized and
111,456,999 and 111,451,999 shares issued, respectively)

1,115

 

1,115

Paid-in capital

643,004

 

641,266

Accumulated other comprehensive loss

(65,187)

 

(67,186)

Retained earnings

8,109

 

2,489

Treasury stock, at cost (25,129,909 and 21,751,232 shares, respectively)

(169,812)

 

(154,656)

Total stockholders' equity

417,229

 

423,028

Total liabilities and stockholders' equity

$           684,871

 

$           714,875

 

Newpark Resources, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 
 

Three Months Ended March 31,

(In thousands)

2023

 

2022

Cash flows from operating activities:

     

Net income

$                   5,620

 

$                   2,521

Adjustments to reconcile net income to net cash provided by operations:

     

Depreciation and amortization

7,895

 

10,452

Stock-based compensation expense

1,738

 

1,468

Provision for deferred income taxes

(726)

 

(5,202)

Credit loss expense

272

 

185

Gain on sale of assets

(554)

 

(1,606)

Amortization of original issue discount and debt issuance costs

138

 

178

Change in assets and liabilities:

     

Decrease in receivables

27,287

 

5,795

Increase in inventories

(3,870)

 

(14,812)

Decrease in other assets

1,098

 

17

Increase (decrease) in accounts payable

(1,233)

 

11,246

Decrease in accrued liabilities and other

(8,221)

 

(7,452)

Net cash provided by operating activities

29,444

 

2,790

       

Cash flows from investing activities:

     

Capital expenditures

(6,972)

 

(7,621)

Proceeds from divestitures

7,153

 

Proceeds from sale of property, plant and equipment

740

 

575

Net cash provided by (used in) investing activities

921

 

(7,046)

       

Cash flows from financing activities:

     

Borrowings on lines of credit

76,447

 

69,188

Payments on lines of credit

(90,212)

 

(65,202)

Purchases of treasury stock

(15,006)

 

(4)

Other financing activities

(1,499)

 

(2,711)

Net cash provided by (used in) financing activities

(30,270)

 

1,271

       

Effect of exchange rate changes on cash

375

 

(376)

       

Net increase (decrease) in cash, cash equivalents, and restricted cash

470

 

(3,361)

Cash, cash equivalents, and restricted cash at beginning of period

25,061

 

29,489

Cash, cash equivalents, and restricted cash at end of period

$                 25,531

 

$                 26,128

 

Newpark Resources, Inc.
Non-GAAP Reconciliations
(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 Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Common Share, earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, Free Cash Flow, Adjusted EBITDA Margin, Net Debt, and the Ratio of Net Debt to Capital.

We believe these non-GAAP financial measures are frequently used by investors, securities analysts and other parties in the evaluation of our performance and liquidity with that of other companies in our industry. Management uses these measures to evaluate our operating performance, liquidity and capital structure. In addition, our incentive compensation plan measures performance based on our consolidated EBITDA, along with other factors. The methods we use to produce these non-GAAP financial measures may differ from methods used by other companies. These measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with GAAP.

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Common Share

The following tables reconcile the Company's net income (loss) and net income (loss) per common share calculated in accordance with GAAP to the non-GAAP financial measures of adjusted net income (loss) and adjusted net income (loss) per common share:

Consolidated

Three Months Ended

(In thousands)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Net income (loss) (GAAP)

$           5,620

 

$           8,992

 

$           2,521

Gain on divestitures

 

(3,596)

 

Facility exit costs and other

2,292

 

1,303

 

Severance costs

955

 

216

 

367

Tax expense (benefit) on adjustments

(682)

 

(318)

 

(77)

Tax benefit on restructuring of certain subsidiary legal entities

 

 

(3,111)

Adjusted net income (loss) (non-GAAP)

$           8,185

 

$           6,597

 

$            (300)

           

Adjusted net income (loss) (non-GAAP)

$           8,185

 

$           6,597

 

$            (300)

           

Weighted average common shares outstanding - basic

88,573

 

92,324

 

92,118

Dilutive effect of stock options and restricted stock awards

1,997

 

1,156

 

Weighted average common shares outstanding - diluted

90,570

 

93,480

 

92,118

           

Adjusted net income (loss) per common share - diluted (non-GAAP):

$             0.09

 

$             0.07

 

$                —

 

Newpark Resources, Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)

EBITDA and Adjusted EBITDA

The following table reconciles the Company's net income calculated in accordance with GAAP to the non-GAAP financial measures of EBITDA and Adjusted EBITDA:

Consolidated

Three Months Ended

(In thousands)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Net income (GAAP)

$           5,620

 

$           8,992

 

$           2,521

Interest expense, net

2,089

 

2,321

 

1,206

Provision (benefit) for income taxes

2,115

 

3,881

 

(2,824)

Depreciation and amortization

7,895

 

8,351

 

10,452

EBITDA (non-GAAP)

17,719

 

23,545

 

11,355

Gain on divestitures

 

(3,596)

 

Facility exit costs and other

2,292

 

1,303

 

Severance costs

955

 

216

 

367

Adjusted EBITDA (non-GAAP)

$         20,966

 

$         21,468

 

$         11,722

Free Cash Flow

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:

Consolidated

Three Months Ended

(In thousands)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Net cash provided by operating activities (GAAP)

$         29,444

 

$           3,072

 

$           2,790

Capital expenditures

(6,972)

 

(10,553)

 

(7,621)

Proceeds from sale of property, plant and equipment

740

 

720

 

575

Free Cash Flow (non-GAAP)

$         23,212

 

$         (6,761)

 

$         (4,256)

 

Newpark Resources, Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin

The following tables reconcile the Company's segment operating income calculated in accordance with GAAP to the non-GAAP financial measures of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin:

Fluids Systems

Three Months Ended

(In thousands)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Revenues

$   144,174

 

$   167,705

 

$   141,014

Operating income (GAAP)

$       3,466

 

$       4,828

 

$       3,374

Depreciation and amortization

1,975

 

2,358

 

4,057

EBITDA (non-GAAP)

5,441

 

7,186

 

7,431

Gain on divestiture

 

(971)

 

Facility exit costs and other

2,292

 

1,000

 

Severance costs

955

 

163

 

152

Adjusted EBITDA (non-GAAP)

$       8,688

 

$       7,378

 

$       7,583

Operating Margin (GAAP)

2.4 %

 

2.9 %

 

2.4 %

Adjusted EBITDA Margin (non-GAAP)

6.0 %

 

4.4 %

 

5.4 %

 

Industrial Solutions

Three Months Ended

(In thousands)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Revenues

$     55,856

 

$     57,454

 

$     35,424

Operating income (GAAP)

$     14,483

 

$     17,751

 

$       6,358

Depreciation and amortization

5,257

 

5,482

 

5,442

EBITDA (non-GAAP)

19,740

 

23,233

 

11,800

Severance costs

 

53

 

68

Adjusted EBITDA (non-GAAP)

$     19,740

 

$     23,286

 

$     11,868

Operating Margin (GAAP)

25.9 %

 

30.9 %

 

17.9 %

Adjusted EBITDA Margin (non-GAAP)

35.3 %

 

40.5 %

 

33.5 %

 

Industrial Blending

Three Months Ended

(In thousands)

March 31,
2023

 

December
31, 2022

 

March 31,
2022

Revenues

$                 —

 

$                 —

 

$                 —

Operating income (loss) (GAAP)

$                 —

 

$            2,322

 

$             (886)

Depreciation and amortization

 

 

270

EBITDA (non-GAAP)

 

2,322

 

(616)

Gain on divestiture

 

(2,625)

 

Facility exit costs and other

 

303

 

Severance costs

 

 

148

Adjusted EBITDA (non-GAAP)

$                 —

 

$                 —

 

$             (468)

 

Newpark Resources, Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin - Trailing Twelve Months ("TTM")

Consolidated

Three Months Ended

 

TTM

(In thousands)

June 30,
2022

 

September 30,
2022

 

December
31, 2022

 

March 31,
2023

 

March 31,
2023

Net income (GAAP)

$         (7,752)

 

$       (24,595)

 

$           8,992

 

$           5,620

 

$       (17,735)

Interest expense, net

1,638

 

1,875

 

2,321

 

2,089

 

7,923

Provision (benefit) for income taxes

480

 

2,834

 

3,881

 

2,115

 

9,310

Depreciation and amortization

10,111

 

9,696

 

8,351

 

7,895

 

36,053

EBITDA (non-GAAP)

4,477

 

(10,190)

 

23,545

 

17,719

 

35,551

Impairments and other charges

7,905

 

29,417

 

 

 

37,322

Gain on divestiture

 

 

(3,596)

 

 

(3,596)

Facility exit costs and other

761

 

388

 

1,303

 

2,292

 

4,744

Severance costs

153

 

 

216

 

955

 

1,324

Adjusted EBITDA (non-GAAP)

$         13,296

 

$         19,615

 

$         21,468

 

$         20,966

 

$         75,345

 

Fluids Systems

Three Months Ended

 

TTM

(In thousands)

June 30,
2022

 

September 30,
2022

 

December
31, 2022

 

March 31,
2023

 

March 31,
2023

Revenues

$    145,261

 

$   168,621

 

$   167,705

 

$   144,174

 

$   625,761

Operating income (GAAP)

$           425

 

$    (24,193)

 

$       4,828

 

$       3,466

 

$    (15,474)

Depreciation and amortization

3,862

 

3,598

 

2,358

 

1,975

 

11,793

EBITDA (non-GAAP)

4,287

 

(20,595)

 

7,186

 

5,441

 

(3,681)

Impairments and other charges

 

29,417

 

 

 

29,417

Gain on divestiture

 

 

(971)

 

 

(971)

Facility exit costs and other

 

 

1,000

 

2,292

 

3,292

Severance costs

84

 

 

163

 

955

 

1,202

Adjusted EBITDA (non-GAAP)

$        4,371

 

$       8,822

 

$       7,378

 

$       8,688

 

$     29,259

Operating Margin (GAAP)

0.3 %

 

(14.3) %

 

2.9 %

 

2.4 %

 

(2.5) %

Adjusted EBITDA Margin (non-GAAP)

3.0 %

 

5.2 %

 

4.4 %

 

6.0 %

 

4.7 %

 

Industrial Solutions

Three Months Ended

 

TTM

(In thousands)

June 30,
2022

 

September 30,
2022

 

December
31, 2022

 

March 31,
2023

 

March 31,
2023

Revenues

$     48,883

 

$     51,232

 

$     57,454

 

$     55,856

 

$   213,425

Operating income (GAAP)

$       9,754

 

$     10,036

 

$     17,751

 

$     14,483

 

$     52,024

Depreciation and amortization

5,362

 

5,367

 

5,482

 

5,257

 

21,468

EBITDA (non-GAAP)

15,116

 

15,403

 

23,233

 

19,740

 

73,492

Severance costs

93

 

 

53

 

 

146

Adjusted EBITDA (non-GAAP)

$     15,209

 

$     15,403

 

$     23,286

 

$     19,740

 

$     73,638

Operating Margin (GAAP)

20.0 %

 

19.6 %

 

30.9 %

 

25.9 %

 

24.4 %

Adjusted EBITDA Margin (non-GAAP)

31.1 %

 

30.1 %

 

40.5 %

 

35.3 %

 

34.5 %

 

Newpark Resources, Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)

Ratio of Net Debt to Capital

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:

(In thousands)

March 31,
2023

 

December 31,
2022

Current debt

$            23,158

 

$            22,438

Long-term debt, less current portion

78,041

 

91,677

Total Debt

101,199

 

114,115

Total stockholders' equity

417,229

 

423,028

Total Capital

$          518,428

 

$          537,143

       

Ratio of Total Debt to Capital

19.5 %

 

21.2 %

       

Total Debt

$          101,199

 

$          114,115

Less: cash and cash equivalents

(23,618)

 

(23,182)

Net Debt

77,581

 

90,933

Total stockholders' equity

417,229

 

423,028

Total Capital, Net of Cash

$          494,810

 

$          513,961

       

Ratio of Net Debt to Capital

15.7 %

 

17.7 %

 

Contacts:

Gregg Piontek

 

Senior Vice President and Chief Financial Officer

 

Newpark Resources, Inc.

 

gpiontek@newpark.com

 

281-362-6800

 

Cision View original content:https://www.prnewswire.com/news-releases/newpark-resources-reports-first-quarter-2023-results-301813620.html

SOURCE Newpark Resources, Inc.