RPC Inc. (RES, Financial) filed Quarterly Report for the period ended 2009-09-30.
RPCInc. has two major business segments: boat manufacturing and oil and gas services. Chaparral Boats Inc. a wholly owned subsidiary of RPCsells four lines of powerboats to a nationwide network of independent dealers. The oil and gas services segment provides a variety of servicesequipment and personnel to the oil and gas industry. Rpc Inc. has a market cap of $901.4 million; its shares were traded at around $9.16 with a P/E ratio of 305.3 and P/S ratio of 1.1. The dividend yield of Rpc Inc. stocks is 1.8%. Rpc Inc. had an annual average earning growth of 20.3% over the past 10 years.
Capital expenditures were $58.7 million during the first nine months of 2009. We currently expect capital expenditures to be approximately $70 million during 2009. This estimated amount is lower than in any of the previous three fiscal years in response to low pricing and utilization on our existing fleet of equipment at the present time, and our strategy to maintain a conservative balance sheet. We expect that our capital expenditures for the fourth quarter of 2009 will be primarily directed toward routine and emergency maintenance and for equipment related to specific projects in which we have a contract with a customer.
Interest expense and interest income. Interest expense was $533 thousand for the three months ended September 30, 2009 compared to $1.2 million for the quarter ended September 30, 2008. The decrease in 2009 is due to lower interest rates and a lower average balance on our revolving line of credit, net of interest capitalized on equipment and facilities under construction. Interest income was $41 thousand for the three months ended September 30, 2009 and $17 thousand for the three months ended September 30, 2008.
Revenues. Revenues for the nine months ended September 30, 2009 decreased 32.9 percent compared to the nine months ended September 30, 2008. Domestic revenues decreased 35.6 percent to $402.9 million compared to the same period in the prior year. The decreases in revenues are due primarily to lower pricing for our services and lower utilization of our equipment and personnel. International revenues increased from $24.2 million to $32.6 million compared to the same period in the prior year. Our international revenues are impacted by the timing of project initiation and their ultimate duration and can be volatile in nature.
Interest expense and interest income. Interest expense was $1.7 million for the nine months ended September 30, 2009 compared to $4.0 million for the nine months ended September 30, 2008. The decrease in 2009 is due to lower interest rates and a lower average balance on our revolving line of credit, net of interest capitalized on equipment and facilities under construction. Interest income was $126 thousand for the nine months ended September 30, 2009 and $63 thousand for the nine months ended September 30, 2008.
The Company s financial condition as of September 30, 2009 remains strong. We believe the liquidity provided by our existing cash and cash equivalents, our overall strong capitalization, cash expected to be generated from operations and our credit facility will provide sufficient capital to meet our requirements for at least the next twelve months. The Company currently has a $200 million revolving credit facility (the “Revolving Credit Agreement”) that matures in September 2011. The Revolving Credit Agreement contains customary terms and conditions, including certain financial covenants including covenants restricting RPC s ability to incur liens or merge or consolidate with another entity. Our outstanding borrowings were $101.9 million at September 30, 2009 and approximately $15.1 million of the credit facility supports outstanding letters of credit relating to self-insurance programs or contract bids. A total of $83.0 million was available under our facility as of September 30, 2009. Additional information regarding our Revolving Credit Agreement is included in Note 10 to our Consolidated Financial Statements included in this report.
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RPCInc. has two major business segments: boat manufacturing and oil and gas services. Chaparral Boats Inc. a wholly owned subsidiary of RPCsells four lines of powerboats to a nationwide network of independent dealers. The oil and gas services segment provides a variety of servicesequipment and personnel to the oil and gas industry. Rpc Inc. has a market cap of $901.4 million; its shares were traded at around $9.16 with a P/E ratio of 305.3 and P/S ratio of 1.1. The dividend yield of Rpc Inc. stocks is 1.8%. Rpc Inc. had an annual average earning growth of 20.3% over the past 10 years.
Highlight of Business Operations:
The Company realized a pretax loss of $14.8 million for the three months ended September 30, 2009 compared to pretax income of $42.7 million in the prior year. The pretax loss for the three months ended September 30, 2009 resulted in the Company recording an income tax benefit of $4.4 million for the quarter, compared to income tax provision of $16.9 million, in the prior year. Diluted loss per share was $0.11 for the three months ended September 30, 2009 compared to diluted earnings per share of $0.26 in the same period in the prior year. Cash flows from operating activities were $144.7 million for the nine months ended September 30, 2009 compared to $126.9 million for the same period in the prior year due to decreased working capital requirements realized consistent with lower revenues and business activity levels. The notes payable to banks declined to $101.9 million as of September 30, 2009 compared to $185.6 million as of September 30, 2008 as available cash flow has been directed towards debt reduction.Capital expenditures were $58.7 million during the first nine months of 2009. We currently expect capital expenditures to be approximately $70 million during 2009. This estimated amount is lower than in any of the previous three fiscal years in response to low pricing and utilization on our existing fleet of equipment at the present time, and our strategy to maintain a conservative balance sheet. We expect that our capital expenditures for the fourth quarter of 2009 will be primarily directed toward routine and emergency maintenance and for equipment related to specific projects in which we have a contract with a customer.
Interest expense and interest income. Interest expense was $533 thousand for the three months ended September 30, 2009 compared to $1.2 million for the quarter ended September 30, 2008. The decrease in 2009 is due to lower interest rates and a lower average balance on our revolving line of credit, net of interest capitalized on equipment and facilities under construction. Interest income was $41 thousand for the three months ended September 30, 2009 and $17 thousand for the three months ended September 30, 2008.
Revenues. Revenues for the nine months ended September 30, 2009 decreased 32.9 percent compared to the nine months ended September 30, 2008. Domestic revenues decreased 35.6 percent to $402.9 million compared to the same period in the prior year. The decreases in revenues are due primarily to lower pricing for our services and lower utilization of our equipment and personnel. International revenues increased from $24.2 million to $32.6 million compared to the same period in the prior year. Our international revenues are impacted by the timing of project initiation and their ultimate duration and can be volatile in nature.
Interest expense and interest income. Interest expense was $1.7 million for the nine months ended September 30, 2009 compared to $4.0 million for the nine months ended September 30, 2008. The decrease in 2009 is due to lower interest rates and a lower average balance on our revolving line of credit, net of interest capitalized on equipment and facilities under construction. Interest income was $126 thousand for the nine months ended September 30, 2009 and $63 thousand for the nine months ended September 30, 2008.
The Company s financial condition as of September 30, 2009 remains strong. We believe the liquidity provided by our existing cash and cash equivalents, our overall strong capitalization, cash expected to be generated from operations and our credit facility will provide sufficient capital to meet our requirements for at least the next twelve months. The Company currently has a $200 million revolving credit facility (the “Revolving Credit Agreement”) that matures in September 2011. The Revolving Credit Agreement contains customary terms and conditions, including certain financial covenants including covenants restricting RPC s ability to incur liens or merge or consolidate with another entity. Our outstanding borrowings were $101.9 million at September 30, 2009 and approximately $15.1 million of the credit facility supports outstanding letters of credit relating to self-insurance programs or contract bids. A total of $83.0 million was available under our facility as of September 30, 2009. Additional information regarding our Revolving Credit Agreement is included in Note 10 to our Consolidated Financial Statements included in this report.
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