Rpc Inc (RES) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

Exhibit 99

RPC, Inc. Reports Third Quarter 2020 Financial Results

ATLANTA, October 28, 2020 - RPC, Inc. (NYSE: RES) today announced its unaudited results for the third quarter ended September 30, 2020. 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 and in selected international markets.

For the quarter ended September 30, 2020, revenues were $116.6 million, a decrease of 60.2 percent compared with $293.2 million in the third quarter of 2019. Operating loss for the third quarter of 2020 was $31.8 million compared to an operating loss of $92.6 million in the same period of the prior year. Adjusted operating loss for the third quarter of 2019 was $21.0 million.¹ Net loss for the third quarter of 2020 was $16.4 million, or $0.08 loss per share, compared to a net loss of $69.2 million, or $0.33 loss per share, in the third quarter of 2019. Adjusted net loss for the third quarter of 2020 was $20.0 million, or $0.09 adjusted loss per share, compared to an adjusted net loss of $18.0 million, or $0.08 adjusted loss per share, in the third quarter of 2019.² Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2020 was negative $12.3 million, compared to EBITDA of negative $48.9 million in the same period of the prior year.³ Adjusted EBITDA for the third quarter of 2019 was $22.8 million.³

For the nine months ended September 30, 2020, revenues decreased to $449.7 million compared to $986.4 million last year. Net loss for the nine-month period was $202.0 million, or $0.95 loss per share, compared to a net loss of $63.7 million, or $0.30 loss per share in the same period last year. Adjusted net loss for the nine months ended September 30, 2020 was $51.2 million, or $0.24 loss per share, compared to an adjusted net loss for the nine months ended September 30, 2019 of $12.5 million, or $0.06 adjusted loss per share. ²

Cost of revenues during the third quarter of 2020 was $100.9 million, or 86.5 percent of revenues, compared to $225.2 million, or 76.8 percent of revenues, during the third quarter of 2019. Cost of revenues declined primarily due to decreases in expenses consistent with lower activity levels and RPC’s cost reduction initiatives. Cost of revenues as a percentage of revenues increased primarily due to lower pricing for our services.

Selling, general and administrative expenses were $32.4 million in the third quarter of 2020 compared to $42.6 million in the third quarter of 2019. These expenses decreased due to lower employment costs, primarily the result of cost reduction initiatives during previous quarters. These decreases were partially offset by $3.3 million of accelerated amortization of restricted stock related to the passing of R. Randall Rollins, RPC’s Chairman. Depreciation and amortization decreased to $18.7 million in the third quarter of 2020 compared to $44.7 million in the third quarter of the prior year. Depreciation and amortization declined significantly primarily due to asset impairment charges recorded in previous quarters which decreased RPC’s depreciable property, plant and equipment, as well as lower capital expenditures.

¹ 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 A to this press release.

² 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 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.