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RPC, Inc. Reports 2002 Second Quarter Results |
ATLANTA, Jul 19, 2002 /PRNewswire-FirstCall via COMTEX/ -- RPC Incorporated (NYSE: RES) announced its unaudited results for the quarter and six months ended June 30, 2002. For the quarter ended June 30, 2002, revenues decreased 34.0 percent to $46,774,000 compared to $70,831,000 last year. Net loss from continuing operations was $1,953,000, or $0.07 diluted loss per share, compared to net income from continuing operations of $9,703,000 or $0.34 diluted earnings per share last year. Gross profit for the second quarter was $14,921,000, a 54.0 percent decrease from the same period in 2001. The operating loss for the second quarter was $3,122,000, compared to an operating profit of $15,666,000 in the second quarter of last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $4,708,000 or $0.17 per diluted share for the quarter, compared to $21,367,000 or $0.75 per diluted share in the prior year.
For the six months ended June 30, 2002, revenues decreased 30.0 percent to $93,502,000 compared to $133,564,000 last year. Net loss from continuing operations was $3,120,000, or a net loss of $0.11 per share compared to net income from continuing operations of $16,573,000 or $0.58 diluted earnings per share last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $10,590,000 or $0.37 per diluted share, compared to $37,832,000 or $1.33 per diluted share in the prior year.
During the quarter the Company repurchased a total of 42,100 shares of its common stock for cash on the open market under its stock buyback program announced March 9, 1998.
"RPC's Second Quarter results reflect the impact of low customer activity levels as reflected in the decline in the domestic oil and gas rig count," stated Richard A. Hubbell, RPC's President and Chief Operation Officer. "The average quarterly rig count of 808 was 35 percent lower than the same period of 2001, and flat compared to the average rig count of 814 in the first quarter of 2002. Although the average price of natural gas has risen 23 percent during the second quarter of this year, our customers have not increased their capital spending.
"Our second quarter revenues are flat compared to the first quarter of 2002, however, our gross profit has declined 11 percent due to the difficult pricing environment coupled with an unfavorable change in the mix of revenues, and delays in re-establishing our contractual relationship in Algeria."
Hubbell continued, "Despite a difficult industry environment for oilfield services, RPC generated positive operating cash flow this quarter and we are committed to maintaining a strong, virtually debt free balance sheet. Because of continuing industry and overall economic uncertainties, we are reducing our operating costs and reassessing our capital spending levels. We remain focused on improving our operational performance, and preparing RPC for the eventual improvement in industry conditions."
Summary of Segment Operating Performance
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 towards improving the flow of oil and natural gas from producing formations or to address well control issues. The Technical Services include snubbing, coiled tubing, pressure pumping, nitrogen, well control, downhole tools, wire line, fluid pumping, hot tapping, gate valve drilling and casing installation services.
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 drill pipe and related tools, pipe handling, inspection and storage services, work platform vessels, and oilfield training services.
Both Technical Services and Support Services were impacted by weaker customer demand. Revenues overall were down, but slightly offset in Technical Services by the pressure pumping acquisitions made during the second and third quarters last year. Technical Services revenues fell 31 percent compared to the 35 percent decline in the rig count.
Our Support Services tend to be impacted more by dramatic changes in rig counts, as indicated by the 51 percent decline in revenues for the quarter, compared to the prior year. These service lines perform quite well when industry conditions are more favorable.
** See attachment for entire release and tables ** |
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