Newpark Resources Inc. (NR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Newpark Resources Inc. has a market cap of $571.28 million; its shares were traded at around $6.42 with a P/E ratio of 321 and P/S ratio of 1.17. NR is in the portfolios of Chuck Royce of Royce& Associates, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Operating income for this segment was $12.4 million in the first quarter of 2010, reflecting an improvement of $18.0 million from a $5.6 million operating loss for the same period in 2009. Substantially all of this improvement was generated by the North American operations, which generated a $17.9 million improvement in operating income. This improvement is primarily attributable to the incremental profit from a $20.2 million increase in revenues described above, combined with lower freight costs on barite ore, operating expense reductions from programs implemented during 2009, and $2.0 million of first quarter 2009 charges associated with employee terminations.
Operating income from international operations increased $0.1 million, including a $1.9 million increase in Brazil, resulting from the increased revenue levels. This increase was offset by a $1.8 decline in the Mediterranean operations, resulting from the $2.8 million decline in revenues in this region.
Segment operating income increased by $6.1 million to $2.7 million for the first quarter of 2010. This improvement in operating income is primarily attributable to the $4.8 million increase in revenues, along with $2.5 million in operating expense reductions associated with 2009 cost reduction programs, including $0.4 million of employee termination costs incurred in the prior year. In addition, the first quarter of 2010 included $0.9 million of other income reflecting proceeds for insurance claims related to Hurricane Ike in 2008.
Environmental services operating income increased by $1.5 million in the first quarter of 2010, despite a $0.6 million decline in revenues compared to the first quarter of 2009. The impact of the lower revenues was more than offset by operating expense reductions, including a $0.9 million reduction in equipment rental expenses, a $0.5 million reduction in personnel expenses, and a $0.3 million reduction in waste transportation expenses.
Net cash used by operating activities during the first quarter of 2010 totaled $2.4 million. Net income adjusted for non-cash items provided $19.1 million of cash during the period, while increases in working capital used $21.5 million of cash. The increase in working capital during the period includes $32.7 million from increases in receivables reflecting the impact of increased revenue levels, partially offset by a $9.2 million decrease in inventories.
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Newpark Resources Inc. has a market cap of $571.28 million; its shares were traded at around $6.42 with a P/E ratio of 321 and P/S ratio of 1.17. NR is in the portfolios of Chuck Royce of Royce& Associates, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Selling, general and administrative expenses declined $1.8 million to $14.4 million in the first quarter of 2010 from $16.2 million for the first quarter of 2009. The decrease includes $0.6 million in fluids systems and engineering and $0.8 million in the corporate office, and is primarily attributable to the impact of cost reduction programs implemented during 2009, partially offset by a $1.8 million increase in performance-based employee incentive costs in the 2010 period.Operating income for this segment was $12.4 million in the first quarter of 2010, reflecting an improvement of $18.0 million from a $5.6 million operating loss for the same period in 2009. Substantially all of this improvement was generated by the North American operations, which generated a $17.9 million improvement in operating income. This improvement is primarily attributable to the incremental profit from a $20.2 million increase in revenues described above, combined with lower freight costs on barite ore, operating expense reductions from programs implemented during 2009, and $2.0 million of first quarter 2009 charges associated with employee terminations.
Operating income from international operations increased $0.1 million, including a $1.9 million increase in Brazil, resulting from the increased revenue levels. This increase was offset by a $1.8 decline in the Mediterranean operations, resulting from the $2.8 million decline in revenues in this region.
Segment operating income increased by $6.1 million to $2.7 million for the first quarter of 2010. This improvement in operating income is primarily attributable to the $4.8 million increase in revenues, along with $2.5 million in operating expense reductions associated with 2009 cost reduction programs, including $0.4 million of employee termination costs incurred in the prior year. In addition, the first quarter of 2010 included $0.9 million of other income reflecting proceeds for insurance claims related to Hurricane Ike in 2008.
Environmental services operating income increased by $1.5 million in the first quarter of 2010, despite a $0.6 million decline in revenues compared to the first quarter of 2009. The impact of the lower revenues was more than offset by operating expense reductions, including a $0.9 million reduction in equipment rental expenses, a $0.5 million reduction in personnel expenses, and a $0.3 million reduction in waste transportation expenses.
Net cash used by operating activities during the first quarter of 2010 totaled $2.4 million. Net income adjusted for non-cash items provided $19.1 million of cash during the period, while increases in working capital used $21.5 million of cash. The increase in working capital during the period includes $32.7 million from increases in receivables reflecting the impact of increased revenue levels, partially offset by a $9.2 million decrease in inventories.
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