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These forward-looking statements reflect the current views of the management of Newpark Resources, Inc.; however, various risks, uncertainties and contingencies could cause actual operating results to differ materially from those in the forward-looking statements.

These risks, uncertainties and contingencies are detailed in filings with the Securities and Exchange Commission made by the company, including, without limitation, its quarterly report on Form 10-Q and its annual report on Form 10-K.

Newpark Resources, Inc. undertakes no obligations to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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Newpark Resources Reports Fourth Quarter 2022 Results

February 16, 2023
PDF Version

Company reports revenues of $225 million, net income of $0.10 per diluted share and Adjusted Net Income of $0.07 per diluted share

THE WOODLANDS, Texas, Feb. 16, 2023 /PRNewswire/ -- Newpark Resources, Inc. (NYSE: NR) ("Newpark" or the "Company") today announced results for its fourth quarter ended December 31, 2022. Total revenues for the fourth quarter of 2022 were $225.2 million compared to $219.9 million for the third quarter of 2022 and $179.6 million for the fourth quarter of 2021. Net income for the fourth quarter of 2022 was $9.0 million, or $0.10 per diluted share, which includes $2.4 million of net income ($0.03 per diluted share) associated with previously disclosed divestiture transactions completed in the quarter. Adjusted Net Income for the fourth quarter of 2022 grew 27% sequentially to $0.07 per diluted share and Adjusted EBITDA improved 9% sequentially to $21.5 million. Net loss for the third quarter of 2022 was $24.6 million, or ($0.26) per share, which included $29.9 million of pre-tax charges ($29.8 million after-tax, $0.32 per diluted share). Net loss for the fourth quarter of 2021 was $3.7 million, or ($0.04) per share.

Matthew Lanigan, Newpark's President and Chief Executive Officer, stated, "The fourth quarter provided a strong finish to 2022 with the successful closure of our key strategic divestitures and solid operating performances across our ongoing business segments. We also returned significant value to shareholders through the repurchase of nearly 5% of our outstanding shares.

"Our strong operational execution was led by Industrial Solutions, where robust demand from the utilities sector contributed to a 12% sequential growth in revenues. Rental and service revenues improved to $40 million for the fourth quarter of 2022, a 22% sequential increase and a 39% year-over-year increase, reflecting strength in utility infrastructure project activity combined with the benefit of favorable weather conditions, which extended rental projects and elevated rental fleet utilization to very strong levels. Product sales contributed $17 million of revenues for the fourth quarter of 2022, reflecting a decline from prior quarter and prior year, as utility customers elected to focus their remaining 2022 capital budgets on items that had been delayed by supply chain disruptions earlier in the year. Revenues from the utilities and other industrial end-markets reached a new quarterly record, coming in at $43 million for the fourth quarter. Benefitting from the extremely robust market environment, including a favorable revenue mix and improved pricing dynamics, the Industrial Solutions segment delivered operating income of $17.8 million and Adjusted EBITDA of $23.3 million for the quarter."

Lanigan continued, "In Fluids Systems, while the fourth quarter was impacted by the partial-quarter results and some operational inefficiency associated with the divestitures, the U.S. land business delivered solid improvement. Segment revenues declined modestly to $168 million for the fourth quarter, as a $6 million decline from the divested operations was substantially offset by net improvements in other regions. Excluding the divested Excalibar business, U.S. land revenues improved $8 million sequentially, benefitting from growth across most regions. The divested Excalibar and Gulf of Mexico operations contributed $20 million of revenue and a $2.9 million operating loss in the fourth quarter of 2022, while the ongoing Fluids Systems segment operations delivered $148 million of revenues, a 4% sequential increase, and operating income of $7.7 million, which reflects a 5.2% operating margin.

"Regarding cash flows, we generated roughly $80 million of cash in the fourth quarter from the divested business units, including $71 million of cash proceeds from the divestiture transactions, reduced total debt by $47 million and used $18 million to fund share repurchases. Additionally, we expect roughly $30 million of cash flow in the first half of 2023 from the wind-down of remaining receivables and other working capital retained within the divested business units," added Lanigan. "In terms of our continuing business operations, elevated receivable DSO's in the U.S. Fluids business provided roughly a $10 million headwind to fourth quarter cash flows, though we expect this to reverse in the first quarter, providing an additional tailwind to 2023 Free Cash Flow generation.

"As we look to the year ahead, we expect to deliver solid Free Cash Flow, as we focus on executing our disciplined growth strategy, including the acceleration of our growth in the utilities sector, while also continuing to return excess cash generation to shareholders through additional share repurchases," concluded Lanigan.

Segment Results

The Industrial Solutions segment generated revenues of $57.5 million for the fourth quarter of 2022 compared to $51.2 million for the third quarter of 2022 and $51.1 million for the fourth quarter of 2021. Segment operating income was $17.8 million for the fourth quarter of 2022 compared to $10.0 million for the third quarter of 2022 and $9.5 million for the fourth quarter of 2021.

The Fluids Systems segment generated revenues of $167.7 million for the fourth quarter of 2022 compared to $168.6 million for the third quarter of 2022 and $127.9 million for the fourth quarter of 2021. Segment operating income was $4.8 million for the fourth quarter of 2022 compared to an operating loss of $24.2 million for the third quarter of 2022 and operating income of $0.9 million for the fourth quarter of 2021. The Fluids Systems operating income for the fourth quarter of 2022 includes 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. The Fluids Systems operating loss for the third quarter of 2022 included $29.4 million of non-cash impairment charges related to the long-lived assets and inventory associated with the exit of Gulf of Mexico operations. The Fluids Systems operating income for the fourth quarter of 2021 included $0.9 million of charges primarily related to facility exit and severance costs.

Conference Call

Newpark has scheduled a conference call to discuss fourth quarter of 2022 results and its near-term operational outlook, which will be broadcast live over the Internet, on Friday, February 17, 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 March 3, 2023 and may be accessed by dialing 201-612-7415 and using pass code 13735641#. 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

  

Twelve Months Ended

(In thousands, except per share data)

December
31,
2022

  

September
30,
2022

  

December
31,
2021

  

December
31,
2022

  

December
31,
2021

Revenues

$       225,159

  

$       219,853

  

$       179,563

  

$       815,594

  

$       614,781

Cost of revenues

186,980

  

187,884

  

153,182

  

694,058

  

529,552

Selling, general and administrative expenses

24,648

  

24,207

  

26,690

  

97,618

  

94,445

Other operating (income) loss, net

(3,995)

  

(345)

  

(250)

  

(4,370)

  

(391)

Impairments and other charges

—

  

29,417

  

—

  

37,322

  

—

Operating income (loss)

17,526

  

(21,310)

  

(59)

  

(9,034)

  

(8,825)
                   

Foreign currency exchange (gain) loss

2,332

  

(1,424)

  

(314)

  

389

  

(397)

Interest expense, net

2,321

  

1,875

  

2,057

  

7,040

  

8,805

Loss on extinguishment of debt

—

  

—

  

—

  

—

  

1,000

Income (loss) before income taxes

12,873

  

(21,761)

  

(1,802)

  

(16,463)

  

(18,233)
                   

Provision for income taxes

3,881

  

2,834

  

1,879

  

4,371

  

7,293

Net income (loss)

$           8,992

  

$       (24,595)

  

$         (3,681)

  

$       (20,834)

  

$       (25,526)
                   

Calculation of EPS:

                  

Net income (loss) - basic and diluted

$           8,992

  

$       (24,595)

  

$         (3,681)

  

$       (20,834)

  

$       (25,526)
                   

Weighted average common shares outstanding - basic

92,324

  

93,737

  

92,043

  

92,712

  

91,460

Dilutive effect of stock options and restricted stock awards

1,156

  

—

  

—

  

—

  

—

Weighted average common shares outstanding - diluted

93,480

  

93,737

  

92,043

  

92,712

  

91,460
                   

Net income (loss) per common share - basic:

$             0.10

  

$           (0.26)

  

$           (0.04)

  

$           (0.22)

  

$           (0.28)

Net income (loss) per common share - diluted:

$             0.10

  

$           (0.26)

  

$           (0.04)

  

$           (0.22)

  

$           (0.28)

 

Newpark Resources, Inc.
Operating Segment Results
(Unaudited)
 
 

Three Months Ended 

  

Twelve Months Ended 

(In thousands)

December
31,
2022

  

September
30,
2022

  

December
31,
2021

  

December
31,
2022

  

December
31,
2021

Revenues

                  

Fluids Systems

$   167,705

  

$   168,621

  

$   127,892

  

$   622,601

  

$   420,789

Industrial Solutions

57,454

  

51,232

  

51,138

  

192,993

  

185,171

Industrial Blending

—

  

—

  

533

  

—

  

8,821

Total revenues

$   225,159

  

$   219,853

  

$   179,563

  

$   815,594

  

$   614,781
                   

Operating income (loss)

                  

Fluids Systems (1)

$       4,828

  

$   (24,193)

  

$           932

  

$   (15,566)

  

$   (19,012)

Industrial Solutions

17,751

  

10,036

  

9,472

  

43,899

  

42,117

Industrial Blending (2)

2,322

  

(526)

  

(1,115)

  

(8,002)

  

(2,384)

Corporate office

(7,375)

  

(6,627)

  

(9,348)

  

(29,365)

  

(29,546)

Total operating income (loss)

$     17,526

  

$   (21,310)

  

$           (59)

  

$     (9,034)

  

$     (8,825)
                   

Segment operating margin

                  

Fluids Systems

2.9 %

  

(14.3) %

  

0.7 %

  

(2.5) %

  

(4.5) %

Industrial Solutions

30.9 %

  

19.6 %

  

18.5 %

  

22.7 %

  

22.7 %

Industrial Blending

NM

  

NM

  

NM

  

NM

  

(27.0) %
   

(1)

Fluids Systems operating loss for the three months ended September 30, 2022 and twelve months ended December 31, 2022 includes $29.4 million of non-cash impairment charges related to the long-lived assets and inventory associated with the exit of our Gulf of Mexico operations. Fluids Systems operating loss for the twelve months ended December 31, 2021 included $5.5 million of charges primarily related to self-insured costs associated with Hurricane Ida damage to our Fourchon, Louisiana Fluids Systems operating base, facility exit, and severance costs.
   

(2)

Industrial Blending operating income for the three months ended December 31, 2022 includes a $2.6 million gain related to the sale of the blending facility and related assets, partially offset by exit and other costs. Industrial Blending operating loss for the twelve months ended December 31, 2022 includes a $7.9 million non-cash charge for the impairment of the long-lived assets as well as exit and other costs, partially offset by the $2.6 million gain upon the eventual sale of these assets.
   

Summarized operating results (including impairments and other charges described above) 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

  

Twelve Months Ended

(In thousands)

December
31,
2022

  

September
30,
2022

  

December
31,
2021

  

December
31,
2022

  

December
31,
2021

Revenues

                  

Excalibar

$     11,922

  

$     17,623

  

$     10,816

  

$     55,990

  

$     36,396

Gulf of Mexico

8,011

  

8,591

  

4,049

  

26,708

  

25,366

Total revenues

$     19,933

  

$     26,214

  

$     14,865

  

$     82,698

  

$     61,762
                   

Operating income (loss)

                  

Excalibar

$       1,127

  

$           888

  

$           385

  

$       3,665

  

$         (277)

Gulf of Mexico

(4,023)

  

(32,931)

  

(2,257)

  

(43,215)

  

(6,753)

Total operating income (loss)

$     (2,896)

  

$   (32,043)

  

$     (1,872)

  

$   (39,550)

  

$     (7,030)

 

Newpark Resources, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)
 

(In thousands, except share data)

December 31,
2022

  

December 31,
2021

ASSETS

      

Cash and cash equivalents

$             23,182

  

$             24,088

Receivables, net

242,247

  

194,296

Inventories

149,571

  

155,341

Prepaid expenses and other current assets

10,966

  

14,787

Total current assets

425,966

  

388,512
       

Property, plant and equipment, net

193,099

  

260,256

Operating lease assets

23,769

  

27,569

Goodwill

47,110

  

47,283

Other intangible assets, net

20,215

  

24,959

Deferred tax assets

2,275

  

2,316

Other assets

2,441

  

1,991

Total assets

$           714,875

  

$           752,886
       

LIABILITIES AND STOCKHOLDERS' EQUITY

      

Current debt

$             22,438

  

$             19,210

Accounts payable

93,633

  

84,585

Accrued liabilities

46,871

  

46,597

Total current liabilities

162,942

  

150,392
       

Long-term debt, less current portion

91,677

  

95,593

Noncurrent operating lease liabilities

19,816

  

22,352

Deferred tax liabilities

8,121

  

11,819

Other noncurrent liabilities

9,291

  

10,344

Total liabilities

291,847

  

290,500
       

Common stock, $0.01 par value (200,000,000 shares authorized and 111,451,999 and
109,330,733 shares issued, respectively)

1,115

  

1,093

Paid-in capital

641,266

  

634,929

Accumulated other comprehensive loss

(67,186)

  

(61,480)

Retained earnings

2,489

  

24,345

Treasury stock, at cost (21,751,232 and 16,981,147 shares, respectively)

(154,656)

  

(136,501)

Total stockholders' equity

423,028

  

462,386

Total liabilities and stockholders' equity

$           714,875

  

$           752,886

 

Newpark Resources, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)
 
 

Twelve Months Ended December 31,

(In thousands)

2022

  

2021

Cash flows from operating activities:

      

Net loss

$               (20,834)

  

$               (25,526)

Adjustments to reconcile net loss to net cash used in operations:

      

Impairments and other non-cash charges

37,322

  

—

Depreciation and amortization

38,610

  

42,225

Stock-based compensation expense

6,861

  

7,926

Provision for deferred income taxes

(3,384)

  

(1,209)

Credit loss expense

1,039

  

664

Gain on divestitures

(3,596)

  

—

Gain on sale of assets

(2,809)

  

(7,182)

Gain on insurance recovery

—

  

(849)

Loss on extinguishment of debt

—

  

1,000

Amortization of original issue discount and debt issuance costs

871

  

3,707

Change in assets and liabilities:

      

Increase in receivables

(42,452)

  

(61,283)

Increase in inventories

(46,909)

  

(10,336)

Increase in other assets

(855)

  

(726)

Increase in accounts payable

10,781

  

36,341

Increase in accrued liabilities and other

334

  

12,235

Net cash used in operating activities

(25,021)

  

(3,013)
       

Cash flows from investing activities:

      

Capital expenditures

(28,273)

  

(21,793)

Proceeds from divestitures

71,286

  

—

Business acquisitions, net of cash acquired

—

  

(13,434)

Proceeds from sale of property, plant and equipment

3,217

  

15,999

Proceeds from insurance property claim

—

  

1,753

Net cash provided by (used in) investing activities

46,230

  

(17,475)
       

Cash flows from financing activities:

      

Borrowings on lines of credit

287,276

  

286,154

Payments on lines of credit

(290,886)

  

(208,575)

Purchases of Convertible Notes

—

  

(28,137)

Payment on Convertible Notes

—

  

(38,567)

Proceeds from term loan

3,754

  

8,258

Proceeds from financing obligation

—

  

8,004

Debt issuance costs

(1,499)

  

(295)

Purchases of treasury stock

(20,248)

  

(1,448)

Other financing activities

(3,327)

  

(3,986)

Net cash provided by (used in) financing activities

(24,930)

  

21,408
       

Effect of exchange rate changes on cash

(707)

  

(1,779)
       

Net decrease in cash, cash equivalents, and restricted cash

(4,428)

  

(859)

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

29,489

  

30,348

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

$                 25,061

  

$                 29,489
 

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, 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

  

Twelve Months Ended

(In thousands)

December
31,
2022

  

September
30,
2022

  

December
31,
2021

  

December
31,
2022

  

December
31,
2021

Net income (loss) (GAAP)

$           8,992

  

$       (24,595)

  

$         (3,681)

  

$       (20,834)

  

$       (25,526)

Impairments and other charges

—

  

29,417

  

—

  

37,322

  

—

Gain on divestitures

(3,596)

  

—

  

—

  

(3,596)

  

—

Fourchon, Louisiana hurricane-related costs

—

  

—

  

—

  

—

  

2,596

Facility exit costs and other

1,303

  

526

  

708

  

2,860

  

2,399

Severance costs

216

  

—

  

201

  

736

  

1,898

Gain on legal settlement

—

  

—

  

—

  

—

  

(1,000)

Loss on extinguishment of debt

—

  

—

  

—

  

—

  

1,000

Gain on insurance recovery

—

  

—

  

—

  

—

  

(849)

Tax expense (benefit) on adjustments

(318)

  

(110)

  

—

  

(755)

  

—

Tax benefit on restructuring of certain subsidiary legal entities

—

  

—

  

—

  

(3,111)

  

—

Adjusted net income (loss) (non-GAAP)

$           6,597

  

$           5,238

  

$         (2,772)

  

$         12,622

  

$       (19,482)

Adjusted net income (loss) (non-GAAP)

$           6,597

  

$           5,238

  

$         (2,772)

  

$         12,622

  

$       (19,482)
                   

Weighted average common shares outstanding - basic

92,324

  

93,737

  

92,043

  

92,712

  

91,460

Dilutive effect of stock options and restricted stock awards

1,156

  

446

  

—

  

1,300

  

—

Weighted average common shares outstanding - diluted

93,480

  

94,183

  

92,043

  

94,012

  

91,460
                   

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

$             0.07

  

$             0.06

  

$           (0.03)

  

$             0.13

  

$           (0.21)
                   

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

EBITDA and Adjusted EBITDA

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

Consolidated

Three Months Ended

  

Twelve Months Ended

(In thousands)

December
31,
2022

  

September
30,
2022

  

December
31,
2021

  

December
31,
2022

  

December
31,
2021

Net income (loss) (GAAP)

$           8,992

  

$       (24,595)

  

$         (3,681)

  

$       (20,834)

  

$       (25,526)

Interest expense, net

2,321

  

1,875

  

2,057

  

7,040

  

8,805

Provision (benefit) for income taxes

3,881

  

2,834

  

1,879

  

4,371

  

7,293

Depreciation and amortization

8,351

  

9,696

  

10,216

  

38,610

  

42,225

EBITDA (non-GAAP)

23,545

  

(10,190)

  

10,471

  

29,187

  

32,797

Impairments and other charges

—

  

29,417

  

—

  

37,322

  

—

Gain on divestitures

(3,596)

  

—

  

—

  

(3,596)

  

—

Fourchon, Louisiana hurricane-related costs

—

  

—

  

—

  

—

  

2,596

Facility exit costs and other

1,303

  

388

  

708

  

2,452

  

2,399

Severance costs

216

  

—

  

201

  

736

  

1,898

Gain on legal settlement

—

  

—

  

—

  

—

  

(1,000)

Loss on extinguishment of debt

—

  

—

  

—

  

—

  

1,000

Gain on insurance recovery

—

  

—

  

—

  

—

  

(849)

Adjusted EBITDA (non-GAAP)

$         21,468

  

$         19,615

  

$         11,380

  

$         66,101

  

$         38,841
 

Free Cash Flow

The following table reconciles the Company's net cash provided by (used in) operating activities calculated in accordance with GAAP to the non-GAAP financial measure of the Company's free cash flow:

Consolidated

Three Months Ended

  

Twelve Months Ended

(In thousands)

December 31,
2022

  

September 30,
2022

  

December 31,
2021

  

December 31,
2022

  

December 31,
2021

Net cash provided by (used in)
operating activities (GAAP)

$               3,072

  

$             (5,082)

  

$           (16,683)

  

$           (25,021)

  

$             (3,013)

Capital expenditures

(10,553)

  

(8,205)

  

(2,690)

  

(28,273)

  

(21,793)

Proceeds from sale of property,
plant and equipment

720

  

554

  

4,269

  

3,217

  

15,999

Free Cash Flow (non-GAAP)

$             (6,761)

  

$           (12,733)

  

$           (15,104)

  

$           (50,077)

  

$             (8,807)
 

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

EBITDA Margin

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

Fluids Systems

Three Months Ended

  

Twelve Months Ended

(In thousands)

December
31,
2022

  

September
30,
2022

  

December
31,
2021

  

December
31,
2022

  

December
31,
2021

Revenues

$   167,705

  

$   168,621

  

$   127,892

  

$   622,601

  

$   420,789

Operating income (loss) (GAAP)

$       4,828

  

$   (24,193)

  

$           932

  

$   (15,566)

  

$   (19,012)

Depreciation and amortization

2,358

  

3,598

  

4,292

  

13,875

  

17,877

EBITDA (non-GAAP)

7,186

  

(20,595)

  

5,224

  

(1,691)

  

(1,135)

Impairments and other charges

—

  

29,417

  

—

  

29,417

  

—

Gain on divestiture

(971)

  

—

  

—

  

(971)

  

—

Fourchon, Louisiana hurricane-related costs

—

  

—

  

—

  

—

  

2,596

Facility exit costs and other

1,000

  

—

  

708

  

1,000

  

2,399

Severance costs

163

  

—

  

152

  

398

  

1,329

Gain on insurance recovery

—

  

—

  

—

  

—

  

(849)

Adjusted EBITDA (non-GAAP)

$       7,378

  

$       8,822

  

$       6,084

  

$     28,153

  

$       4,340

Operating Margin (GAAP)

2.9 %

  

(14.3) %

  

0.7 %

  

(2.5) %

  

(4.5) %

Adjusted EBITDA Margin (non-GAAP)

4.4 %

  

5.2 %

  

4.8 %

  

4.5 %

  

1.0 %
       
       

Industrial Solutions

Three Months Ended

  

Twelve Months Ended

(In thousands)

December
31,
2022

  

September
30,
2022

  

December
31,
2021

  

December
31,
2022

  

December
31,
2021

Revenues

$     57,454

  

$     51,232

  

$     51,138

  

$   192,993

  

$   185,171

Operating income (GAAP)

$     17,751

  

$     10,036

  

$       9,472

  

$     43,899

  

$     42,117

Depreciation and amortization

5,482

  

5,367

  

4,960

  

21,653

  

19,304

EBITDA (non-GAAP)

23,233

  

15,403

  

14,432

  

65,552

  

61,421

Severance costs

53

  

—

  

49

  

214

  

302

Gain on legal settlement

—

  

—

  

—

  

—

  

(1,000)

Adjusted EBITDA (non-GAAP)

$     23,286

  

$     15,403

  

$     14,481

  

$     65,766

  

$     60,723

Operating Margin (GAAP)

30.9 %

  

19.6 %

  

18.5 %

  

22.7 %

  

22.7 %

Adjusted EBITDA Margin (non-GAAP)

40.5 %

  

30.1 %

  

28.3 %

  

34.1 %

  

32.8 %

 

Newpark Resources, Inc.

Non-GAAP Reconciliations (Continued)

(Unaudited)
 

Industrial Blending

Three Months Ended

  

Twelve Months Ended

(In thousands)

December
31,
2022

  

September
30,
2022

  

December
31,
2021

  

December
31,
2022

  

December
31,
2021

Revenues

$                —

  

$                 —

  

$              533

  

$                 —

  

$           8,821

Operating income (loss) (GAAP)

$           2,322

  

$             (526)

  

$          (1,115)

  

$          (8,002)

  

$          (2,384)

Depreciation and amortization

—

  

138

  

270

  

678

  

1,095

EBITDA (non-GAAP)

2,322

  

(388)

  

(845)

  

(7,324)

  

(1,289)

Impairment

—

  

—

  

—

  

7,905

  

—

Gain on divestiture

(2,625)

  

—

  

—

  

(2,625)

  

—

Facility exit costs and other

303

  

388

  

—

  

1,453

  

—

Severance costs

—

  

—

  

—

  

123

  

61

Adjusted EBITDA (non-GAAP)

$                —

  

$                 —

  

$            (845)

  

$            (468)

  

$         (1,228)
 

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)

December 31,
2022

  

December 31,
2021

Current debt

$            22,438

  

$            19,210

Long-term debt, less current portion

91,677

  

95,593

Total Debt

114,115

  

114,803

Total stockholders' equity

423,028

  

462,386

Total Capital

$          537,143

  

$          577,189
       

Ratio of Total Debt to Capital

21.2 %

  

19.9 %
       

Total Debt

$          114,115

  

$          114,803

Less: cash and cash equivalents

(23,182)

  

(24,088)

Net Debt

90,933

  

90,715

Total stockholders' equity

423,028

  

462,386

Total Capital, Net of Cash

$          513,961

  

$          553,101
       

Ratio of Net Debt to Capital

17.7 %

  

16.4 %

 

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-fourth-quarter-2022-results-301749167.html

SOURCE Newpark Resources, Inc.