If you would like to receive our news via email, Click Here to sign up.
RPC, Inc. Reports Record 2001 First Quarter Results |
Earnings Per Share of $0.24 - Up 200 Percent
ATLANTA, April 20 /PRNewswire Interactive News Release/ -- RPC, Inc. (NYSE: RES) announced its unaudited results for the first quarter ended March 31, 2001. For the period, revenues increased 75 percent to $62,733,000 compared to $35,883,000 last year. Net income from continuing operations increased 203 percent to $6,870,000 or $0.24 diluted earnings per share compared to $2,267,000 or $0.08 diluted earnings per share last year. Gross profit for the first quarter of 2001 was $28,671,000, a 94 percent improvement over the same period in 2000. Operating income for the first quarter was $10,887,000, a 226 percent increase compared to the first quarter last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $16,439,000 or $0.58 per diluted share for the quarter compared to $7,568,000 or $0.27 per diluted share in the prior year.
The company's higher gross profit and operating income resulted from continued improvements in industry activity levels. The number of active drilling rigs in the United States has increased approximately 51 percent when compared to the prior year. This higher business activity has led to new investment opportunities, greater utilization of our equipment, and more recently, improved pricing. Absent a significant decrease in demand caused by an economic recession, oilfield service companies should continue to experience strong operating results as increased drilling activity will be required to maintain oil and gas reserves.
"RPC's results reflect significantly improved industry conditions coupled with continued excellent performance from our traditional service lines such as rental tools, snubbing and coiled tubing. It also reflects our ability to capitalize on many new opportunities including our investments in high demand areas such as pressure pumping," said Richard A. Hubbell, President of RPC.
On February 28, 2001, RPC spun off Marine Products Corporation and its wholly owned subsidiary Chaparral Boats, Inc. to RPC stockholders. RPC stockholders received 0.6 shares of Marine Products common stock for each share of RPC common stock owned. Marine Products is now listed on the American Stock Exchange under the ticker symbol MPX.
Marine Products has been accounted for as a discontinued operation and, accordingly, the operating results of this discontinued operation have been reported separately through February 28, 2001. At December 31, 2000, the consolidated balance sheet of RPC reflected a payable to Marine Products Corporation. In connection with the spin-off, RPC transferred $13.8 million in cash and marketable securities to Marine Products to establish an initial cash balance of $15 million. The remaining payable to Marine Products, totaling approximately $53.6 million, was cancelled and RPC's retained earnings was increased by an equal amount.
"We are pleased to have the spin-off transaction completed. RPC can now focus exclusively on growing its oilfield service businesses, including the pursuit of larger acquisitions. RPC, as a pure play oil and gas services company, is also afforded a greater opportunity of financing acquisitions with stock as well as cash. Historically, our stock, as an acquisition currency, has been less attractive because of RPC's diversified holdings. This impediment no longer exits," added Mr. Hubbell.
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 and Rocky Mountain regions, and in selected international markets. RPC's oil and gas services operating subsidiaries include Cudd Pressure Control, Inc., Patterson Services, Inc., and Patterson Tubular Services, Inc. RPC's business segments are Technical Services and Support Services. Technical Services include oilfield services that utilize people and equipment to perform value- added completion, production and maintenance services directly to a customer's well. Support Services include oilfield services that provide equipment for customer use or services to assist customer operations.
** See attachment for entire release and tables ** |
|
|
|
|
|
|