Rpc Inc (RES) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2019

Exhibit 99

RPC, Inc. Reports Fourth Quarter 2019 Financial Results

ATLANTA, January 29, 2020 - RPC, Inc. (NYSE: RES) today announced its unaudited results for the fourth quarter and year ended December 31, 2019.

For the quarter ended December 31, 2019, revenues were $236.0 million, a decrease of 37.4 percent, compared with $376.8 million in the fourth quarter of 2018. Revenues decreased due to lower activity levels and pricing, a more pronounced fourth quarter seasonal decline than in the prior year, and a smaller fleet of pressure pumping equipment. Operating loss for the fourth quarter of 2019 was $27.9 million compared to operating profit of $19.7 million in the same period of the prior year. Adjusted operating loss for the fourth quarter of 2019 was $17.3 million.² Net loss for the fourth quarter of 2019 was $23.4 million, or $0.11 loss per share, compared to net income of $13.4 million, or $0.06 diluted earnings per share, in the fourth quarter of 2018. Adjusted net loss for the fourth quarter of 2019 was $13.9 million, or $0.07 adjusted loss per share.¹ Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2019 was $12.6 million, compared to EBITDA of $61.7 million in the same period of the prior year.³ Adjusted EBITDA for the fourth quarter of 2019 was $23.2 million.³

For the 12 months ended December 31, 2019, revenues decreased to $1.22 billion compared to $1.72 billion in the prior year. Net loss for the 12 months ended December 31, 2019 was $87.1 million, or $0.41 loss per share, compared to net income of $175.4 million, or $0.82 diluted earnings per share in the prior year. Adjusted net loss for the 12 months ended December 31, 2019 was $26.5 million, or $0.12 adjusted loss per share.¹

Cost of revenues during the fourth quarter of 2019 was $176.9 million, or 75.0 percent of revenues, compared to $274.4 million, or 72.8 percent of revenues, during the fourth quarter of 2018. Cost of revenues decreased primarily due to lower materials and supplies expenses and other expenses associated with lower activity levels. In addition, cost of revenues declined due to lower employment costs as a result of our downsizing. Cost of revenues as a percentage of revenues increased primarily due to lower activity levels and more competitive pricing for our services.

¹ Adjusted net loss, adjusted net income, adjusted loss per share, and adjusted earnings per share are financial measures which do not conform to GAAP. Additional disclosure regarding these non-GAAP financial measures and their reconciliation to net loss, net income, net loss per share, and net income per share, the nearest GAAP financial measures, are disclosed in Appendix A to this press release.

² Adjusted operating loss is a financial measure which does not conform to GAAP. Additional disclosure regarding this non-GAAP financial measure and its reconciliation to operating loss and operating profit, the nearest GAAP financial measures, are disclosed in Appendix B to this press release.

³ Adjusted EBITDA and EBITDA are financial measures which do not conform to GAAP. Additional disclosure regarding these non-GAAP financial measures and their reconciliation to net loss and net income, the nearest GAAP financial measures, are disclosed in Appendix C to this press release.