Newpark Resources, Inc. (NR) Bundle
A Brief History of Newpark Resources, Inc.
Newpark Resources, Inc. (NYSE: NR) is a site access solutions company that specializes in manufacturing and renting sustainable composite matting products. The company also provides comprehensive services including planning, logistics, and remediation. As of 2024, Newpark has undergone significant transformations, primarily focusing on its Industrial Solutions segment following the divestiture of its Fluids Systems segment.
Recent Developments
On September 13, 2024, Newpark completed the sale of its equity interests in substantially all of the Fluids Systems segment to SCF Partners, a private equity firm. This strategic move marks a pivotal shift for Newpark, allowing the company to concentrate on enhancing its core specialty rental and services business within critical infrastructure markets.
Financial Performance Overview
For the third quarter of 2024, Newpark reported:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $44.2 million | $57.3 million | $(13.1) million |
| Operating Income | $1.2 million | $6.3 million | $(5.1) million |
| Income from Continuing Operations | $14.9 million | $2.7 million | $12.2 million |
| Adjusted EBITDA | $7.5 million | $12.0 million | $(4.5) million |
| Adjusted EBITDA Margin | 17.0% | 21.0% | -4.0% |
Newpark's income from continuing operations for the third quarter included a substantial tax benefit of $14.6 million, primarily due to the release of valuation allowances on U.S. net operating losses following the Fluids Systems sale.
Balance Sheet and Liquidity Position
As of September 30, 2024, Newpark reported:
| Metric | Amount |
|---|---|
| Total Cash | $43 million |
| Total Debt | $14 million |
| Available Liquidity (ABL credit facility) | $56 million |
| Deferred Consideration from Fluids Systems Sale | $18 million |
The company generated $3 million of operating cash flow in the third quarter, with capital investments amounting to $8 million, primarily for expanding the rental fleet to meet anticipated demand in the fourth quarter.
Segment Performance
The Industrial Solutions segment reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Rental and Service Revenues | $32.4 million | $38.1 million |
| Product Sales Revenues | $11.8 million | $19.2 million |
| Total Revenues | $44.2 million | $57.3 million | Operating Income | $7.3 million | $14.3 million |
Despite a seasonal decline in revenues due to customers shifting focus to renewable projects and adverse weather conditions, Newpark anticipates a rebound in activity as it enters the fourth quarter of 2024.
Future Outlook
Looking ahead, Newpark has provided financial guidance for the full year 2024, estimating:
| Metric | Estimated Range |
|---|---|
| Industrial Solutions Segment Revenue | $217 million - $223 million |
| Adjusted EBITDA | $77 million - $81 million |
| Capital Expenditures | $33 million - $35 million |
Newpark's strategic focus on organic growth and capital allocation reflects its commitment to enhancing shareholder value while navigating the evolving market landscape.
A Who Owns Newpark Resources, Inc. (NR)
Ownership Structure
As of 2024, Newpark Resources, Inc. (NR) has a diversified ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 9.5% |
| Institutional Investor | BlackRock, Inc. | 8.2% |
| Institutional Investor | Dimensional Fund Advisors LP | 6.7% |
| Individual Shareholder | Matthew Lanigan (CEO) | 1.2% |
| Individual Shareholder | Paul Bartolai (CFO) | 0.8% |
| Other Insiders | Various | 2.0% |
| Public Float | Public Shareholders | 71.6% |
Recent Changes in Ownership
In September 2024, Newpark Resources completed the sale of its Fluids Systems segment, which is expected to have implications for its ownership structure as the company refocuses on its core operations. Following the sale, the company has seen an increase in institutional interest as it transitions into a more specialized service provider in the site access solutions market.
Stock Performance and Market Capitalization
As of the end of Q3 2024, Newpark Resources, Inc. had a market capitalization of approximately $389.6 million, reflecting its stock performance and overall financial health. The company's stock price has experienced fluctuations due to market conditions and operational changes. The following table summarizes key financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $389.6 million |
| Stock Price (as of Sept 30, 2024) | $3.48 |
| 52-Week High | $5.12 |
| 52-Week Low | $2.80 |
| Average Daily Volume | 250,000 shares |
Financial Health Indicators
As of September 30, 2024, Newpark Resources reported total cash of $43 million and total debt of $14 million. The company's balance sheet reflects a solid liquidity position, with available credit facilities of $56 million. The following table provides an overview of key financial ratios:
| Financial Ratio | Value |
|---|---|
| Current Ratio | 2.28 |
| Debt-to-Equity Ratio | 0.04 |
| Return on Equity (ROE) | -46.0% |
| Adjusted EBITDA Margin | 17.0% |
Future Outlook
Newpark Resources anticipates that its Industrial Solutions segment will generate revenues between $217 million and $223 million for the full year 2024, with an expected Adjusted EBITDA in the range of $77 million to $81 million. This outlook reflects the company's strategic focus on enhancing its market position following the divestiture of underperforming assets.
Newpark Resources, Inc. (NR) Mission Statement
Overview
Newpark Resources, Inc. is a site access solutions company focused on providing sustainable composite matting products and associated services across various critical infrastructure markets. The company emphasizes the importance of quality and reliability in its offerings, catering to sectors such as electrical transmission, oil and gas exploration, renewable energy, and construction.
Mission Statement
The mission of Newpark Resources, Inc. is to deliver superior quality and innovative solutions that enhance the safety, efficiency, and sustainability of our customers' operations. We strive to lead the industry in environmental stewardship by offering products that minimize ecological impact and contribute to the advancement of renewable energy initiatives.
Financial Performance Highlights
As of the third quarter of 2024, Newpark Resources reported significant financial metrics that reflect its operational effectiveness and strategic focus:
| Financial Metric | Value (Q3 2024) | Value (Q3 2023) | Change |
|---|---|---|---|
| Total Revenue | $44.2 million | $57.3 million | -$13.1 million |
| Operating Income | $1.2 million | $6.3 million | -$5.1 million |
| Income from Continuing Operations | $14.9 million | $2.7 million | +$12.2 million |
| Adjusted EBITDA | $7.5 million | $12.0 million | -$4.5 million |
| Adjusted EBITDA Margin | 17.0% | 21.0% | -4.0% |
| Total Cash | $43 million | N/A | N/A |
| Total Debt | $14 million | N/A | N/A |
Strategic Focus Areas
Newpark Resources is engaged in a multi-year transformation plan aimed at:
- Driving organic growth in higher-margin product and rental markets.
- Improving asset optimization and operational efficiency.
- Executing a disciplined capital allocation strategy.
Recent Developments
In September 2024, Newpark completed the sale of its Fluids Systems segment, marking a strategic shift to focus on its core site access solutions business. This divestiture is expected to streamline operations and enhance shareholder value.
Outlook and Guidance
For the full year 2024, Newpark anticipates:
- Industrial Solutions segment revenue in a range of $217 million to $223 million.
- Adjusted EBITDA in a range of $77 million to $81 million.
- Total capital expenditures in a range of $33 million to $35 million.
Newpark's commitment to sustainability and operational excellence positions it favorably within the site access solutions market, particularly as demand for renewable energy solutions grows.
How Newpark Resources, Inc. (NR) Works
Company Overview
Newpark Resources, Inc. operates primarily in the site access solutions sector, specializing in the manufacturing, selling, and renting of composite matting products. These products are essential for ensuring safe and efficient access to various industrial sites, particularly in critical infrastructure markets.
Financial Performance 2024
As of the third quarter of 2024, Newpark reported total revenues of $44.2 million, a decrease from $57.3 million in the same period in 2023. The operating income from continuing operations was $1.2 million, down from $6.3 million year-over-year. The income from continuing operations stood at $14.9 million, which includes a significant tax benefit of $14.6 million due to the release of valuation allowances on U.S. net operating losses.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $44.2 million | $57.3 million | $(13.1) million |
| Operating Income | $1.2 million | $6.3 million | $(5.1) million |
| Income from Continuing Operations | $14.9 million | $2.7 million | $12.2 million |
| Adjusted EBITDA | $7.5 million | $12.0 million | $(4.5) million |
Segment Performance
The Industrial Solutions segment generated revenues of $44.2 million, with rental and service revenues at $32.4 million and product sales at $11.8 million. The operating income for this segment was $7.3 million, compared to $14.3 million in the prior year.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Operating Income |
|---|---|---|---|
| Industrial Solutions | $44.2 million | $57.3 million | $7.3 million |
| Rental and Service Revenues | $32.4 million | $38.1 million | N/A |
| Product Sales Revenues | $11.8 million | $19.2 million | N/A |
Balance Sheet Highlights
As of September 30, 2024, Newpark's total cash amounted to $43 million with total debt at $14 million. The company reported available liquidity under its ABL credit facility of $56 million. The net deferred consideration and note receivable from the Fluids Systems sale were $18 million.
| Balance Sheet Item | Amount |
|---|---|
| Total Cash | $43 million |
| Total Debt | $14 million |
| Available Liquidity | $56 million |
| Deferred Consideration | $18 million |
Cash Flow Analysis
In the third quarter of 2024, Newpark generated an operating cash flow of $3 million. After accounting for capital investments of $8 million and a reduction of debt by $36 million, the free cash flow was reported at $(5.6) million.
| Cash Flow Metric | Amount |
|---|---|
| Operating Cash Flow | $3 million |
| Capital Expenditures | $(8 million) |
| Debt Reduction | $(36 million) |
| Free Cash Flow | $(5.6 million) |
Future Guidance
For the full year 2024, Newpark anticipates Industrial Solutions segment revenue to be in the range of $217 million to $223 million, with Adjusted EBITDA expected between $77 million and $81 million. Capital expenditures for the segment are projected between $33 million and $35 million.
| Guidance Metric | Projected Amount |
|---|---|
| Industrial Solutions Revenue | $217 million to $223 million |
| Adjusted EBITDA | $77 million to $81 million |
| Capital Expenditures | $33 million to $35 million |
Conclusion
Newpark Resources, Inc. continues to adapt and transform following the divestiture of its Fluids Systems segment. The focus remains on enhancing its core site access solutions business while maintaining a strong balance sheet and pursuing profitable growth opportunities in critical infrastructure markets.
How Newpark Resources, Inc. (NR) Makes Money
Overview of Business Segments
Newpark Resources, Inc. operates primarily through two segments: Industrial Solutions and Fluids Systems. As of 2024, the company has divested its Fluids Systems segment, focusing on its Industrial Solutions business, which includes rental and service offerings and product sales.
Revenue Generation
In the third quarter of 2024, Newpark reported total revenues of $44.2 million, a decrease from $57.3 million in the same period of the previous year. The Industrial Solutions segment generated revenues of $44.2 million, with rental and service revenues accounting for $32.4 million and product sales contributing $11.8 million.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Total Revenues | $44.2 | $57.3 | $(13.1) |
| Rental and Service Revenues | $32.4 | $38.1 | $(5.7) |
| Product Sales Revenues | $11.8 | $19.2 | $(7.4) |
Income and Profitability
For the third quarter of 2024, Newpark generated an operating income from continuing operations of $1.2 million, compared to $6.3 million in Q3 2023. The income from continuing operations for Q3 2024 was $14.9 million, significantly influenced by a $14.6 million tax benefit.
Adjusted EBITDA Performance
Adjusted EBITDA from continuing operations for Q3 2024 was reported at $7.5 million, reflecting a margin of 17.0%. This is a decline from $12.0 million and a margin of 21.0% in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Operating Income | $1.2 million | $6.3 million | $(5.1 million) |
| Income from Continuing Operations | $14.9 million | $2.7 million | +$12.2 million |
| Adjusted EBITDA | $7.5 million | $12.0 million | $(4.5 million) |
| Adjusted EBITDA Margin | 17.0% | 21.0% | -4.0% |
Capital Expenditures and Cash Flow
Newpark's capital investments totaled $9.5 million in Q3 2024, aimed at expanding its mat rental fleet. The company generated $3 million in operating cash flow during the same period, but experienced a free cash flow of $(5.6) million due to increased capital expenditures.
| Cash Flow Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Cash Flow | $3 million | $27 million |
| Capital Expenditures | $(9.5 million) | $(4.8 million) |
| Free Cash Flow | $(5.6 million) | $22.9 million |
Balance Sheet and Liquidity Position
As of September 30, 2024, Newpark held total cash of $43 million and total debt of $14 million. The company reported available liquidity of $56 million under its ABL credit facility.
| Balance Sheet Metrics | As of September 30, 2024 |
|---|---|
| Total Cash | $43 million |
| Total Debt | $14 million |
| Available Liquidity | $56 million |
Market Outlook and Strategic Focus
Newpark anticipates Industrial Solutions segment revenues in the range of $217 million to $223 million for the full year 2024, with Adjusted EBITDA expected between $77 million and $81 million.
| 2024 Financial Guidance | Metric | Forecast |
|---|---|---|
| Industrial Solutions Segment Revenue | Range | $217 million - $223 million |
| Adjusted EBITDA | Range | $77 million - $81 million |
| Capital Expenditures | Range | $33 million - $35 million |
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Resources:
- Newpark Resources, Inc. (NR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Newpark Resources, Inc. (NR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Newpark Resources, Inc. (NR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.