ATLANTA, July 26,
2023 /PRNewswire/ -- RPC, Inc. (NYSE: RES) today
announced its unaudited results for the second quarter and six
months ended June 30, 2023. RPC
provides a broad range of specialized oilfield services and
equipment primarily to independent and major oilfield companies
engaged in the exploration, production, and development of oil and
gas properties throughout the United
States and in selected international markets.
For the quarter ended June 30,
2023, RPC generated revenues of $415.9 million, a decrease compared to
$476.7 million in the first quarter.
Revenues declined due to job delays and cancellations by several
pressure pumping customers as well as weaker activity levels in
most of the natural gas-directed basins in which RPC operates.
Operating profit for the second quarter of 2023 was $82.4 million compared to $90.7 million in the first quarter. Net income
for the second quarter of 2023 was $65.0
million, or $0.30 diluted
earnings per share, compared to net income of $71.5 million, or $0.33 diluted earnings per share, in the first
quarter.
Adjusted operating profit1 for the second quarter of
2023 was $83.3 million compared to
$108.0 million in the first quarter
of 2023. Adjusted net income2 for the second quarter of
2023 was $65.7 million, or
$0.30 adjusted diluted earnings per
share2, compared to adjusted net income of $84.9 million, or $0.39 adjusted diluted earnings per share, in the
first quarter. Adjusted earnings before interest, taxes,
depreciation, and amortization (EBITDA)3 for the second
quarter of 2023 was $110.1 million, a
decrease compared to $132.9 million
in the first quarter. In connection with the final termination of
our pension plan, RPC recorded a non-cash pension settlement charge
of $911 thousand in the second
quarter of 2023 compared to a $17.4
million charge in the prior quarter.
Cost of revenues during the second quarter of 2023 was
$265.8 million compared to
$305.3 million in the first quarter.
Cost of revenues as a percentage of revenues was 63.9 percent in
the second quarter of 2023, essentially the same as 64.0 percent of
revenues in the first quarter. Selling, general and administrative
expenses were $43.6 million in the
second quarter of 2023 compared to $42.2
million in the first quarter of 2023. Depreciation and
amortization was $26.2 million in the
second quarter of 2023 compared to $24.1
million in the first quarter of 2023.
RPC's revenues for the quarter ended June
30, 2023 increased by $40.4
million, or 10.7 percent, compared to the second quarter of
the prior year due to improved pricing, higher customer activity
levels and a larger active fleet of revenue-producing equipment.
Cost of revenues during the second quarter of 2023 increased by
$4.9 million compared to the second
quarter of 2022. As a percentage of revenues, cost of revenues
decreased to 63.9 percent in the second quarter of 2023 from 69.5
percent in the second quarter of 2022 because of improved pricing
for our services and increases in customer supplied materials, as
well as reduced maintenance expense due to an improvement in the
average age of our equipment.
Selling, general and administrative expenses increased by
$7.7 million in the second quarter of
2023 compared to the second quarter of the prior year primarily due
to costs related to the settlement of a vendor dispute and the
July 1, 2023 acquisition of Spinnaker
Oilwell Service, LLC ("Spinnaker"). RPC's operating profit in
the second quarter of 2023 was $82.4
million, compared to $60.4
million in the second quarter of 2022. Net income for the
second quarter of 2023 was $65.0
million compared to $46.9
million in the second quarter of 2022. Adjusted
EBITDA3 for the second quarter of 2023 was $110.1 million compared to $80.6 million in the second quarter of 2022.
For the six months ended June 30,
2023, revenues increased 35.2 percent to $892.5 million compared to $660.1 million for the same period last year. Net
income for the six-month period was $136.5
million, or $0.63 diluted
earnings per share, compared to net income of $62.0 million, or $0.29 diluted earnings per share, in the same
period last year.
Rig Count and Commodity Price Statistics
The average U.S. domestic rig count during the second quarter of
2023 was 719, a 5.4 percent decrease compared to the first quarter
of 2023, and unchanged compared to the same period in 2022. The
average price of oil during the second quarter of 2023 was
$73.54 per barrel, a 3.2 percent
decrease compared to the first quarter of 2023, and a 32.5 percent
decrease compared to the same period in 2022. The average price of
natural gas during the second quarter of 2023 was $2.16 per Mcf, a decrease of 18.8 percent
compared to the first quarter of 2023, and a 71.2 percent decrease
compared to the same period in the prior year.
Management Commentary
"RPC's second quarter 2023 financial results reflect a slight
decline in drilling and completion activity, particularly in
natural gas-directed basins. This weakness impacted our pressure
pumping revenues and profits, as several large customers either
reduced their well completion activity or delayed completion work,"
stated Ben M. Palmer, RPC's
President and Chief Executive Officer. "While we believe that this
slowdown is temporary, we are taking prudent cost-cutting measures
to better align our cost structure to activity levels.
"As we announced several weeks ago, RPC acquired Spinnaker
Oilwell Services, a leading provider of oilfield cementing services
in the Permian and mid-Continent basins. This acquisition will
significantly expand our cementing business beyond its current
location in South Texas to two
other basins in which we provide our other services. As we begin
the integration of Spinnaker into our operations, we continue to be
impressed with the quality of Spinnaker's management, employees and
operations," concluded Palmer.
Summary of Segment Operating Performance
RPC manages two operating segments – Technical Services and
Support Services.
Technical Services includes RPC's oilfield service lines that
utilize people and equipment to perform value-added completion,
production and maintenance services directly to a customer's well.
These services are generally directed toward improving the flow of
oil and natural gas from producing formations or to address well
control issues. The Technical Services segment includes pressure
pumping, downhole tools and services, coiled tubing, nitrogen,
hydraulic workover services, surface pressure control equipment,
well control, cementing and fishing tool operations.
Support Services includes RPC's oilfield service lines that
provide equipment for customer use or services to assist customer
operations. The equipment and services offered include rental of
tubulars and related tools, pipe inspection and storage services,
and oilfield training services.
Technical Services second quarter 2023 revenues decreased by
13.7 percent compared to the prior quarter but increased by 9.5
percent compared to the same period of the prior year. Technical
Services generated an operating profit of $77.0 million in the second quarter of 2023
compared to $103.5 million in the
prior quarter and an operating profit of $59.8 million in the second quarter of the prior
year. The year-over-year improvements in Technical Services
operating results were driven by higher customer activity levels,
improved pricing, and a larger active fleet of revenue-producing
equipment.
Support Services revenues increased by 4.7 percent during the
second quarter of 2023 compared to the prior quarter and by 33.2
percent compared to the same period of the prior year. The revenue
increase was due to higher activity levels and improved pricing
within rental tools. Support Services generated an operating profit
of $7.9 million in the second quarter
of 2023 and $6.6 million in the first
quarter. Second quarter 2023 Support Services operating profit
increased by $4.6 million compared to
the second quarter of the prior year due to higher activity levels,
improved pricing, and leverage of higher revenues over costs that
are fixed during the short term.
(in
thousands)
|
|
Three Months Ended
|
|
|
Six Months Ended June 30,
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Technical
Services
|
$
|
390,018
|
$
|
451,991
|
$
|
356,103
|
|
$
|
842,009
|
$
|
622,452
|
Support
Services
|
|
25,840
|
|
24,677
|
|
19,404
|
|
|
50,517
|
|
37,679
|
Total revenues
|
$
|
415,858
|
$
|
476,668
|
$
|
375,507
|
|
$
|
892,526
|
$
|
660,131
|
Operating profit:
|
|
|
|
|
|
|
|
|
|
|
|
Technical
Services
|
$
|
77,017
|
$
|
103,533
|
$
|
59,827
|
|
$
|
180,550
|
$
|
81,638
|
Support
Services
|
|
7,920
|
|
6,644
|
|
3,334
|
|
|
14,564
|
|
6,114
|
Corporate
expenses
|
|
(4,672)
|
|
(5,081)
|
|
(4,544)
|
|
|
(9,753)
|
|
(9,054)
|
Pension
settlement charges
|
|
(911)
|
|
(17,375)
|
|
-
|
|
|
(18,286)
|
|
-
|
Gain on
disposition of assets, net
|
|
3,015
|
|
2,936
|
|
1,798
|
|
|
5,951
|
|
4,752
|
Total operating profit
|
$
|
82,369
|
$
|
90,657
|
$
|
60,415
|
|
$
|
173,026
|
$
|
83,450
|
Interest expense
|
|
(73)
|
|
(72)
|
|
(222)
|
|
|
(145)
|
|
(400)
|
Interest income
|
|
2,698
|
|
1,855
|
|
128
|
|
|
4,553
|
|
143
|
Other income, net
|
|
631
|
|
761
|
|
79
|
|
|
1,392
|
|
583
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
$
|
85,625
|
$
|
93,201
|
$
|
60,400
|
|
$
|
178,826
|
$
|
83,776
|
|
|
|
|
|
|
|
|
|
|
|
|
RPC, Inc. will hold a conference call today, July 26, 2023 at 9:00 a.m.
ET to discuss the results for the quarter. Interested
parties may listen in by accessing a live webcast in the investor
relations section of RPC, Inc.'s website at rpc.net. The live
conference call can also be accessed by calling (888) 440-5966, or
(646) 960-0125 for international callers, and use conference ID
number 9842359. For those not able to attend the live conference
call, a replay will be available in the investor relations section
of RPC, Inc.'s website beginning approximately two hours after the
call and for a period of 90 days.
RPC provides a broad range of specialized oilfield services and
equipment primarily to independent and major oilfield companies
engaged in the exploration, production and development of oil and
gas properties throughout the United
States, including the Gulf of
Mexico, mid-continent, southwest, Appalachian and Rocky
Mountain regions, and in selected international markets. RPC's
investor website can be found at rpc.net.
Certain statements and information included in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, including
all statements that look forward in time or express management's
beliefs, expectations or hopes. These statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of RPC to be materially
different from any future results, performance or achievements
expressed or implied in such forward-looking statements, including
statements regarding (i) our belief that the slowdown in drilling
and completion activity is temporary, and (ii) our continued belief
in the quality of Spinnaker's management and operations. Additional
discussion of factors that could cause the actual results to differ
materially from management's projections, forecasts, estimates, and
expectations is contained in RPC's Form 10-K for the year ended
December 31, 2022.
For information about RPC, Inc., please contact:
Michael L. Schmit, Chief
Financial Officer
(404) 321-2140
irdept@rpc.net
Jim Landers, Vice President
Corporate Services
(404) 321-2162
JLanders@rpc.net
RPC INCORPORATED AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months Ended
|
Periods ended,
(Unaudited)
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
June 30,
2022
|
|
|
June 30,
2023
|
|
|
June 30,
2022
|
REVENUES
|
|
$
|
415,858
|
|
$
|
476,668
|
|
$
|
375,507
|
|
$
|
892,526
|
|
$
|
660,131
|
COSTS AND EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
265,786
|
|
|
305,250
|
|
|
260,917
|
|
|
571,036
|
|
|
469,754
|
Selling, general and
administrative expenses
|
|
|
43,604
|
|
|
42,197
|
|
|
35,879
|
|
|
85,801
|
|
|
72,119
|
Pension settlement
charges
|
|
|
911
|
|
|
17,375
|
|
|
-
|
|
|
18,286
|
|
|
-
|
Depreciation and
amortization
|
|
|
26,203
|
|
|
24,125
|
|
|
20,094
|
|
|
50,328
|
|
|
39,560
|
Gain on disposition of
assets, net
|
|
|
(3,015)
|
|
|
(2,936)
|
|
|
(1,798)
|
|
|
(5,951)
|
|
|
(4,752)
|
Operating
profit
|
|
|
82,369
|
|
|
90,657
|
|
|
60,415
|
|
|
173,026
|
|
|
83,450
|
Interest
expense
|
|
|
(73)
|
|
|
(72)
|
|
|
(222)
|
|
|
(145)
|
|
|
(400)
|
Interest
income
|
|
|
2,698
|
|
|
1,855
|
|
|
128
|
|
|
4,553
|
|
|
143
|
Other income,
net
|
|
|
631
|
|
|
761
|
|
|
79
|
|
|
1,392
|
|
|
583
|
Income before income
taxes
|
|
|
85,625
|
|
|
93,201
|
|
|
60,400
|
|
|
178,826
|
|
|
83,776
|
Income tax
provision
|
|
|
20,612
|
|
|
21,677
|
|
|
13,461
|
|
|
42,289
|
|
|
21,758
|
NET INCOME
|
|
$
|
65,013
|
|
$
|
71,524
|
|
$
|
46,939
|
|
$
|
136,537
|
|
$
|
62,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.30
|
|
$
|
0.33
|
|
$
|
0.22
|
|
$
|
0.63
|
|
$
|
0.29
|
Diluted
|
|
$
|
0.30
|
|
$
|
0.33
|
|
$
|
0.22
|
|
$
|
0.63
|
|
$
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
216,398
|
|
|
217,152
|
|
|
216,565
|
|
|
216,762
|
|
|
216,403
|
Diluted
|
|
|
216,398
|
|
|
217,152
|
|
|
216,565
|
|
|
216,762
|
|
|
216,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RPC INCORPORATED AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
June 30,
2023
|
|
|
December
31,
2022
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
100,535
|
|
$
|
126,424
|
Accounts receivable,
net
|
|
393,609
|
|
|
416,568
|
Inventories
|
|
104,194
|
|
|
97,107
|
Income taxes
receivable
|
|
53,148
|
|
|
42,403
|
Prepaid
expenses
|
|
14,427
|
|
|
17,753
|
Purchase of business -
advance
|
|
78,982
|
|
|
-
|
Other current
assets
|
|
3,440
|
|
|
3,086
|
Total
current assets
|
|
748,335
|
|
|
703,341
|
Property, plant and
equipment, net
|
|
387,988
|
|
|
333,093
|
Operating lease
right-of-use assets
|
|
27,331
|
|
|
28,864
|
Goodwill
|
|
32,150
|
|
|
32,150
|
Other assets
|
|
32,384
|
|
|
31,565
|
Total
assets
|
$
|
1,228,188
|
|
$
|
1,129,013
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Accounts
payable
|
$
|
88,006
|
|
$
|
115,213
|
Accrued payroll and
related expenses
|
|
26,099
|
|
|
33,161
|
Accrued insurance
expenses
|
|
5,165
|
|
|
3,232
|
Accrued state, local
and other taxes
|
|
6,417
|
|
|
4,296
|
Income taxes
payable
|
|
404
|
|
|
499
|
Pension
liabilities
|
|
-
|
|
|
9,610
|
Current portion of
operating lease liabilities
|
|
9,201
|
|
|
10,728
|
Other accrued
expenses
|
|
1,807
|
|
|
1,864
|
Total current
liabilities
|
|
137,099
|
|
|
178,603
|
Long-term accrued
insurance expenses
|
|
9,640
|
|
|
7,149
|
Long-term retirement
plan liabilities
|
|
23,526
|
|
|
23,106
|
Long-term operating
lease liabilities
|
|
19,555
|
|
|
19,517
|
Other long-term
liabilities
|
|
3,938
|
|
|
5,430
|
Deferred income
taxes
|
|
47,028
|
|
|
37,473
|
Total
liabilities
|
|
240,786
|
|
|
271,278
|
Common stock
|
|
21,641
|
|
|
21,661
|
Capital in excess of
par value
|
|
-
|
|
|
-
|
Retained
earnings
|
|
968,023
|
|
|
856,013
|
Accumulated other
comprehensive loss
|
|
(2,262)
|
|
|
(19,939)
|
Total
stockholders' equity
|
|
987,402
|
|
|
857,735
|
Total
liabilities and stockholders' equity
|
$
|
1,228,188
|
|
$
|
1,129,013
|
|
|
|
|
|
|
Appendix A
RPC, Inc. has used the non-GAAP financial measure of adjusted
operating profit in today's earnings release and anticipates using
this non-GAAP financial measure in today's earnings conference
call. This measure should not be considered in isolation or as a
substitute for operating profit, or other performance measures
prepared in accordance with GAAP.
Management believes that presenting the financial measure of
adjusted operating profit enables us to compare our operating
performance consistently over various time periods.
A non-GAAP financial measure is a numerical measure of financial
performance, financial position, or cash flows that either 1)
excludes amounts, or is subject to adjustments that have the effect
of excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP
in the statement of operations, balance sheet or statement of cash
flows, or 2) includes amounts, or is subject to adjustments that
have the effect of including amounts, that are excluded from the
most directly comparable measure so calculated and presented. Set
forth below is a reconciliation of this non-GAAP measure with its
most directly comparable GAAP measure. This reconciliation
also appears on RPC, Inc.'s investor website, which can be found on
the Internet at rpc.net.
The Reconciliation of Operating Profit to Adjusted Operating
Profit is shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Periods ended,
(Unaudited)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
(In thousands)
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
June 30,
2022
|
|
|
June 30,
2023
|
|
|
June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Profit to Adjusted
Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
$
|
82,369
|
|
$
|
90,657
|
|
$
|
60,415
|
|
$
|
173,026
|
|
$
|
83,450
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement
charges
|
|
|
911
|
|
|
17,375
|
|
|
-
|
|
|
18,286
|
|
|
-
|
Adjusted Operating
Profit
|
|
$
|
83,280
|
|
$
|
108,032
|
|
$
|
60,415
|
|
$
|
191,312
|
|
$
|
83,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix B
RPC, Inc. has used the non-GAAP financial measures of adjusted
net income and adjusted diluted earnings per share in today's
earnings release and anticipates using these non-GAAP financial
measures in today's earnings conference call. These measures
should not be considered in isolation or as a substitute for net
income, income per share, or other performance measures prepared in
accordance with GAAP.
Management believes that presenting the financial measures of
adjusted net income and adjusted income per share, enable us to
compare our operating performance consistently over various time
periods.
A non-GAAP financial measure is a numerical measure of financial
performance, financial position, or cash flows that either 1)
excludes amounts, or is subject to adjustments that have the effect
of excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP
in the statement of operations, balance sheet or statement of cash
flows, or 2) includes amounts, or is subject to adjustments that
have the effect of including amounts, that are excluded from the
most directly comparable measure so calculated and presented. Set
forth below is a reconciliation of these non-GAAP measures with
their most directly comparable GAAP measures. This
reconciliation also appears on RPC, Inc.'s investor website, which
can be found on the Internet at rpc.net.
The Reconciliation of Net Income to Adjusted Net Income and the
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted
Earnings Per Share is shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Periods ended,
(Unaudited)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
(In thousands)
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
June 30,
2022
|
|
|
June 30,
2023
|
|
|
June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted Net
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
65,013
|
|
$
|
71,524
|
|
$
|
46,939
|
|
$
|
136,537
|
|
$
|
62,018
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement charges,
before taxes
|
|
|
911
|
|
|
17,375
|
|
|
-
|
|
|
18,286
|
|
|
-
|
Tax effect of pension
settlement charges *
|
|
|
(220)
|
|
|
(4,048)
|
|
|
-
|
|
|
(4,315)
|
|
|
-
|
Total adjustments, net
of tax
|
|
|
691
|
|
|
13,327
|
|
|
-
|
|
|
13,971
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income
|
|
$
|
65,704
|
|
$
|
84,851
|
|
$
|
46,939
|
|
$
|
150,508
|
|
$
|
62,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The sum of
adjustments for the three-month periods presented may differ from
the amounts for the six month period due to the differences
in effective tax
|
|
|
|
|
|
|
rate for
each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Diluted Earnings Per Share to
Adjusted Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
$
|
0.30
|
|
$
|
0.33
|
|
$
|
0.22
|
|
$
|
0.63
|
|
$
|
0.29
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement charges,
net of tax
|
|
$
|
0.00
|
|
$
|
0.06
|
|
$
|
0.00
|
|
$
|
0.06
|
|
$
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share
|
|
$
|
0.30
|
|
$
|
0.39
|
|
$
|
0.22
|
|
$
|
0.69
|
|
$
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding
|
|
|
216,398
|
|
|
217,152
|
|
|
216,565
|
|
|
216,762
|
|
|
216,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix C
RPC has used the non-GAAP financial measures of earnings before
interest, taxes, depreciation, and amortization (EBITDA) and
adjusted earnings before interest, taxes, depreciation, and
amortization (adjusted EBITDA) in today's earnings release and
anticipates using EBITDA and adjusted EBITDA in today's earnings
conference call. EBITDA and adjusted EBITDA should not be
considered in isolation or as a substitute for net income or other
performance measures prepared in accordance with GAAP.
RPC uses EBITDA and adjusted EBITDA as measures of operating
performance because they allow us to compare performance
consistently over various periods without regard to changes in our
capital structure. Adjusted EBITDA is useful to compare operating
performance net of unusual or non-recurring charges. We are also
required to use EBITDA to report compliance with financial
covenants under our revolving credit facility.
A non-GAAP financial measure is a numerical measure of financial
performance, financial position, or cash flows that either 1)
excludes amounts, or is subject to adjustments that have the effect
of excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP
in the statement of operations, balance sheet or statement of cash
flows, or 2) includes amounts, or is subject to adjustments that
have the effect of including amounts, that are excluded from the
most directly comparable measure so calculated and presented. Set
forth below is a reconciliation of net income, the most directly
comparable GAAP measure, to EBITDA and adjusted EBITDA. This
reconciliation also appears on RPC's investor website, which can be
found on the Internet at rpc.net.
The Reconciliation of Net Income to EBITDA and Adjusted EBITDA
is shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
(In thousands)
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
June 30,
2022
|
|
|
June 30,
2023
|
|
|
June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
65,013
|
|
$
|
71,524
|
|
$
|
46,939
|
|
$
|
136,537
|
|
$
|
62,018
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
|
|
20,612
|
|
|
21,677
|
|
|
13,461
|
|
|
42,289
|
|
|
21,758
|
Interest expense
|
|
|
73
|
|
|
72
|
|
|
222
|
|
|
145
|
|
|
400
|
Depreciation and
amortization
|
|
|
26,203
|
|
|
24,125
|
|
|
20,094
|
|
|
50,328
|
|
|
39,560
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
2,698
|
|
|
1,855
|
|
|
128
|
|
|
4,553
|
|
|
143
|
EBITDA
|
|
$
|
109,203
|
|
$
|
115,543
|
|
$
|
80,588
|
|
$
|
224,746
|
|
$
|
123,593
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement
charges
|
|
|
911
|
|
|
17,375
|
|
|
-
|
|
|
18,286
|
|
|
-
|
Adjusted
EBITDA
|
|
$
|
110,114
|
|
$
|
132,918
|
|
$
|
80,588
|
|
$
|
243,032
|
|
$
|
123,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Adjusted operating profit is a financial measure
which does not conform to GAAP. Additional disclosure regarding
this non-GAAP financial measure and its reconciliation to operating
profit, the nearest GAAP financial measure, is disclosed in
Appendix A to this press release.
2Adjusted net income and adjusted diluted earnings
per share are financial measures which do not conform to GAAP.
Additional disclosure regarding these non-GAAP financial measures
and their reconciliation to net income and income per share, the
nearest GAAP financial measures, are disclosed in Appendix B to
this press release.
3Adjusted EBITDA and EBITDA are financial measures
which do not conform to GAAP. Additional disclosure regarding these
non-GAAP financial measures and their reconciliation to net income,
the nearest GAAP financial measure, are disclosed in Appendix C to
this press release.
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SOURCE RPC, Inc.