Rpc Inc (RES) SEC Filing 10-Q Quarterly report for the period ending Tuesday, March 31, 2020

Exhibit 99

RPC, Inc. Reports First Quarter 2020 Financial Results

ATLANTA, May 6, 2020 - RPC, Inc. (NYSE: RES) today announced its unaudited results for the first quarter ended March 31, 2020.

For the quarter ended March 31, 2020, revenues were $243.8 million, a decrease of 27.2 percent, compared with $334.7 million in the first quarter of 2019. Revenues decreased due to lower activity levels and pricing, and a smaller fleet of pressure pumping equipment compared to the first quarter of the prior year. Operating loss for the first quarter of 2020 was $218.7 million compared to operating loss of $2.2 million in the same period of the prior year. Adjusted operating loss for the first quarter of 2020 was $13.2 million.² Net loss for the first quarter of 2020 was $160.4 million, or $0.76 loss per share, compared to a net loss of $739 thousand, or $0.00 per share, in the first quarter of 2019. Adjusted net loss for the first quarter of 2020 was $9.0 million, or $0.04 adjusted loss per share.¹ Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2020 was negative $179.7 million, compared to EBITDA of $40.8 million in the same period of the prior year.³ Adjusted EBITDA for the first quarter of 2020 was $25.8 million.³

Cost of revenues during the first quarter of 2020 was $181.9 million, or 74.6 percent of revenues, compared to $252.4 million, or 75.4 percent of revenues, during the first quarter of 2019. Cost of revenues decreased primarily due to lower materials and supplies expenses and employment expenses consistent with lower activity levels.

Selling, general and administrative expenses were $36.5 million in the first quarter of 2020 compared to $45.4 million in the first quarter of 2019. These expenses decreased during the first quarter compared to the prior year primarily due to lower employment costs. Depreciation and amortization decreased to $39.3 million in the first quarter of 2020 compared to $42.5 million in the first quarter of the prior year.

In connection with the preparation of our first quarter financial statements, RPC recorded impairment and other charges of $205.5 million, the vast majority of which were non-cash. These charges were recognized in several of our service lines within RPC’s Technical Services operating segment.

¹ Adjusted net loss and adjusted loss 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 and loss 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, 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, the nearest GAAP financial measures, are disclosed in Appendix C to this press release.