Newpark Resources Reports Net Income of $0.09 Per Diluted Share for the First Quarter 2010

THE WOODLANDS, Texas, April 29 /PRNewswire-FirstCall/ -- Newpark Resources, Inc. (NYSE: NR) today announced results for its first quarter ended March 31, 2010.  Total revenues were $160.8 million for the first quarter of 2010 compared to $135.5 million for the fourth quarter of 2009 and $126.9 million for the first quarter of 2009.  Net income for the first quarter of 2010 was $7.8 million, or $0.09 per diluted shared, compared to net income of $16 thousand for the fourth quarter of 2009, break-even on a per share basis, and a net loss of $12.0 million for the first quarter of 2009, a loss of $0.14 per share.  

Operating results in the first quarter of 2010 included $0.9 million of other income ($0.6 million after-tax) in the Mats & Integrated Services segment, reflecting proceeds from insurance claims related to Hurricane Ike in 2008.  Operating results in the first quarter of 2009 included pre-tax employee termination and related charges of $2.6 million ($1.7 million after-tax) associated with North American workforce reductions.

Paul Howes, President and Chief Executive Officer of Newpark, stated, "We are very pleased by the continued sequential improvements in all of our businesses, as we gain momentum and emerge from the challenges of 2009.  As our operating results indicate, we have emerged from the 2009 downturn with a much leaner cost structure, demonstrated by the $8.6 million sequential improvement in operating income on the $25.3 million increase in revenue from the fourth quarter of 2009.  

"Our focus on technology is also providing benefits, as we continue to generate market share gains in the U.S. shale plays through the deployment of our water-based fluids," added Howes.  "Meanwhile, revenues in our Brazil business rose in the first quarter, as compared to the fourth quarter of 2009, and we have taken actions to control our cost structure as activity continues to ramp-up in this key market," concluded Howes.

Segment Results

The Fluids Systems and Engineering segment generated revenues of $136.3 million in the first quarter of 2010 compared to $113.8 million in the fourth quarter of 2009 and $106.6 million in the first quarter of 2009.  Segment operating income was $12.4 million in the first quarter of 2010 compared to $6.7 million in the fourth quarter of 2009 and an operating loss of $5.6 million in the first quarter of 2009.  North American revenues increased 38% from the fourth quarter of 2009 primarily due to higher drilling activity, market share gains and a seasonal rebound in Canada.  Meanwhile, international revenues decreased 11%, primarily due to drilling program delays in North Africa and the impact of unusually cold weather in Eastern Europe.  Compared to the first quarter of 2009, North American revenues increased 26%, while international revenues increased 34%.  

The Mats and Integrated Services segment generated revenues of $13.6 million in the first quarter of 2010 compared to $12.4 million in the fourth quarter of 2009 and $8.9 million in the first quarter of 2009.  Segment operating income was $2.7 million in the first quarter of 2010, including $0.9 million of insurance recoveries, compared to operating income of $1.2 million in the fourth quarter of 2009 and an operating loss of $3.4 million in the first quarter of 2009.  Revenues were up 10% from the fourth quarter of 2009, primarily driven by increased rental activity in the Northeast U.S., while mat sales declined slightly.  Compared to the first quarter of 2009, segment revenues were up 54%.  

The Environmental Services segment generated revenues of $10.9 million in the first quarter of 2010 compared to $9.3 million in the fourth quarter of 2009 and $11.5 million in the first quarter of 2009.  Segment operating income was $2.7 million in the first quarter of 2010, compared to operating income of $1.1 million in the fourth quarter of 2009 and $1.2 million in the first quarter of 2009.  The revenue increase from the fourth quarter of 2009 is primarily attributable to higher oilfield waste disposals in the Gulf Coast, while the decline from the first quarter of 2009 is due to lower disposals in the Gulf Coast and West Texas.

Corporate office expenses were $4.1 million in the first quarter of 2010, compared to $3.9 million in the fourth quarter of 2009 and $4.9 million in the first quarter of 2009.  

CONFERENCE CALL

Newpark has scheduled a conference call to discuss the first quarter 2010 results, which will be broadcast live over the Internet, on Friday, April 30, 2010 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time.  To participate in the call, dial 480-629-9722 and ask for the Newpark Resources conference call at least 10 minutes prior to the start time, or access it live over the Internet at www.newpark.com.  For those who cannot listen to the live call, a replay will be available through May 7, 2010 and may be accessed by dialing (303) 590-3030 and using pass code 4272524#.  Also, an archive of the webcast will be available shortly after the call at www.newpark.com for 90 days.

Newpark Resources, Inc. is a worldwide provider of drilling fluids, temporary worksites and access roads for oilfield and other commercial markets, and environmental waste treatment solutions.  For more information, visit our website at www.newpark.com.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including Newpark's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Newpark, particularly its Annual Report on Form 10-K for the year ended December 31, 2009, as well as others, could cause results to differ materially from those stated. These risk factors include, but are not limited to, our customer concentration and cyclical nature of our industry, the availability of raw materials and skilled personnel, our market competition, the cost and continued availability of borrowed funds, our international operations, legal and regulatory matters, including environmental regulations, inherent limitations in insurance coverage, potential impairments of long-lived intangible assets, technological developments in our industry, and the impact of severe weather, particularly in the U.S. Gulf Coast.  Newpark's filings with the Securities and Exchange Commission can be obtained at no charge at www.sec.gov, as well as through our website at www.newpark.com.

SOURCE Newpark Resources, Inc.