RPC, Inc. Reports Record 2001 First Quarter Results

Earnings Per Share of $0.24 - Up 200 Percent



Apr 20, 2001, 01:00 ET from RPC, Inc.

    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.
 
 
     Summary of Segment Operating Performance
 
                                             Three months ended March 31,
                                                 2001            2000
                                                   (in thousands)
     Revenues:
        Technical Services                   $  46,922         $  24,172
        Support Services                        12,538             8,299
        Other                                    3,273             3,412
     Total revenue                           $  62,733         $  35,883
     Operating income (loss):
        Technical Services                   $   9,390         $   2,945
        Support Services                         2,851             1,023
        Other                                     (158)             (208)
     Total operating income                  $  12,083         $   3,760
     Corporate expenses                          1,196               421
     Interest income                               193               317
     Interest before income taxes            $  11,080         $   3,656
 
 
     Certain statements and information included in this press release
 constitute "forward-looking statements" within the meaning of the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 involve known and unknown risks, uncertainties and other factors which may
 cause the actual results, performance or achievements of RPC to be materially
 different from any future results, performance or achievements expressed or
 implied in such forward-looking statements.  Additional discussion of factors
 that could cause the actual results to differ materially from management's
 projections, forecasts, estimates and expectations is contained in RPC's
 Securities and Exchange Commission filings.
 
 
     RPC INCORPORATED AND SUBSIDIARIES
 
     STATEMENTS OF INCOME  (In thousands except per share data)
     Periods ended March 31, (Unaudited)                 First Quarter
                                                     2001              2000
     Revenues                                       $62,733           $35,883
     Cost of services rendered and goods
      sold                                           34,062            21,089
     Gross profit                                    28,671            14,794
     Selling, general and administrative
      expenses                                       12,232             7,226
     Depreciation and amortization                    5,552             4,229
     Operating profit                                10,887             3,339
     Interest income                                    193               317
     Income from continuing operations
      before income taxes                            11,080             3,656
     Income tax provision                             4,210             1,389
     Income from continuing operations                6,870             2,267
     Income from discontinued operation,
      net of income taxes of $910 in 2001 and
      $4,099 in 2000                                  1,486             6,696
     NET INCOME                                      $8,356            $8,963
 
     EARNINGS PER SHARE - BASIC
       Income from continuing operations              $0.25             $0.08
       Income from discontinued operation              0.05              0.24
       Net income                                     $0.30             $0.32
 
     EARNINGS PER SHARE - DILUTED
       Income from continuing operations              $0.24             $0.08
       Income from discontinued operation              0.05              0.24
       Net income                                     $0.29             $0.32
 
     AVERAGE SHARES OUTSTANDING
        Basic                                        27,908            27,828
        Diluted                                      28,482            28,124
 
 
 
     RPC INCORPORATED AND SUBSIDIARIES
 
     BALANCE  SHEETS
     (In thousands)                                 March            December
                                                     2001              2000
     ASSETS
     Cash and cash equivalents                       $7,317            $5,437
     Marketable securities                              ---             3,888
     Accounts receivable, net                        56,090            55,485
     Inventories                                      8,418             7,212
     Deferred income taxes                            6,837             6,837
     Prepaid expenses and other current
      assets                                          2,352             2,322
       Current assets                                81,014            81,181
     Property, plant and equipment, net              95,649            85,032
     Intangibles, net                                 4,240             4,044
     Marketable securities                              ---            13,868
     Other assets                                     1,209             1,197
     Net assets of discontinued operation               ---            92,593
       Total assets                                $182,112          $277,915
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Accounts payable                               $16,255           $10,237
     Accrued payroll and related expenses             5,414             7,108
     Accrued insurance expenses                       6,144             5,927
     Accrued state, local and other taxes             3,593             3,804
     Current portion of long-term debt                  367               470
     Other accrued expenses                           2,536             2,904
     Federal income taxes payable                     4,536             2,937
       Current liabilities                           38,845            33,387
     Payable to Marine Products
      Corporation                                       ---            68,276
     Long-term accrued insurance expenses             4,664             5,007
     Long-term debt                                     714               848
     Deferred income taxes                            1,078             1,078
       Total liabilities                             45,301           108,596
     Common stock                                     2,835             2,830
     Capital in excess of par value                  22,903            22,541
     Earnings retained                              111,073           143,948
       Total stockholders' equity                   136,811           169,319
       Total liabilities and stockholders'
        equity                                     $182,112          $277,915
 
 
     CONTACT:  Ben M. Palmer of RPC, Inc., 404-321-2140
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X31976418
 
 

SOURCE RPC, Inc.
    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.
 
 
     Summary of Segment Operating Performance
 
                                             Three months ended March 31,
                                                 2001            2000
                                                   (in thousands)
     Revenues:
        Technical Services                   $  46,922         $  24,172
        Support Services                        12,538             8,299
        Other                                    3,273             3,412
     Total revenue                           $  62,733         $  35,883
     Operating income (loss):
        Technical Services                   $   9,390         $   2,945
        Support Services                         2,851             1,023
        Other                                     (158)             (208)
     Total operating income                  $  12,083         $   3,760
     Corporate expenses                          1,196               421
     Interest income                               193               317
     Interest before income taxes            $  11,080         $   3,656
 
 
     Certain statements and information included in this press release
 constitute "forward-looking statements" within the meaning of the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 involve known and unknown risks, uncertainties and other factors which may
 cause the actual results, performance or achievements of RPC to be materially
 different from any future results, performance or achievements expressed or
 implied in such forward-looking statements.  Additional discussion of factors
 that could cause the actual results to differ materially from management's
 projections, forecasts, estimates and expectations is contained in RPC's
 Securities and Exchange Commission filings.
 
 
     RPC INCORPORATED AND SUBSIDIARIES
 
     STATEMENTS OF INCOME  (In thousands except per share data)
     Periods ended March 31, (Unaudited)                 First Quarter
                                                     2001              2000
     Revenues                                       $62,733           $35,883
     Cost of services rendered and goods
      sold                                           34,062            21,089
     Gross profit                                    28,671            14,794
     Selling, general and administrative
      expenses                                       12,232             7,226
     Depreciation and amortization                    5,552             4,229
     Operating profit                                10,887             3,339
     Interest income                                    193               317
     Income from continuing operations
      before income taxes                            11,080             3,656
     Income tax provision                             4,210             1,389
     Income from continuing operations                6,870             2,267
     Income from discontinued operation,
      net of income taxes of $910 in 2001 and
      $4,099 in 2000                                  1,486             6,696
     NET INCOME                                      $8,356            $8,963
 
     EARNINGS PER SHARE - BASIC
       Income from continuing operations              $0.25             $0.08
       Income from discontinued operation              0.05              0.24
       Net income                                     $0.30             $0.32
 
     EARNINGS PER SHARE - DILUTED
       Income from continuing operations              $0.24             $0.08
       Income from discontinued operation              0.05              0.24
       Net income                                     $0.29             $0.32
 
     AVERAGE SHARES OUTSTANDING
        Basic                                        27,908            27,828
        Diluted                                      28,482            28,124
 
 
 
     RPC INCORPORATED AND SUBSIDIARIES
 
     BALANCE  SHEETS
     (In thousands)                                 March            December
                                                     2001              2000
     ASSETS
     Cash and cash equivalents                       $7,317            $5,437
     Marketable securities                              ---             3,888
     Accounts receivable, net                        56,090            55,485
     Inventories                                      8,418             7,212
     Deferred income taxes                            6,837             6,837
     Prepaid expenses and other current
      assets                                          2,352             2,322
       Current assets                                81,014            81,181
     Property, plant and equipment, net              95,649            85,032
     Intangibles, net                                 4,240             4,044
     Marketable securities                              ---            13,868
     Other assets                                     1,209             1,197
     Net assets of discontinued operation               ---            92,593
       Total assets                                $182,112          $277,915
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Accounts payable                               $16,255           $10,237
     Accrued payroll and related expenses             5,414             7,108
     Accrued insurance expenses                       6,144             5,927
     Accrued state, local and other taxes             3,593             3,804
     Current portion of long-term debt                  367               470
     Other accrued expenses                           2,536             2,904
     Federal income taxes payable                     4,536             2,937
       Current liabilities                           38,845            33,387
     Payable to Marine Products
      Corporation                                       ---            68,276
     Long-term accrued insurance expenses             4,664             5,007
     Long-term debt                                     714               848
     Deferred income taxes                            1,078             1,078
       Total liabilities                             45,301           108,596
     Common stock                                     2,835             2,830
     Capital in excess of par value                  22,903            22,541
     Earnings retained                              111,073           143,948
       Total stockholders' equity                   136,811           169,319
       Total liabilities and stockholders'
        equity                                     $182,112          $277,915
 
 
     CONTACT:  Ben M. Palmer of RPC, Inc., 404-321-2140
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X31976418
 
 SOURCE  RPC, Inc.