Rpc Inc (RES) SEC Filing 10-Q Quarterly Report for the period ending Wednesday, June 30, 2021

Exhibit 99

RPC, Inc. Reports Second Quarter 2021 Financial Results

ATLANTA, July 28, 2021 - RPC, Inc. (NYSE: RES) today announced its unaudited results for the second quarter ended June 30, 2021. 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 June 30, 2021, RPC generated revenues of $188.8 million, an increase of 111.4 percent compared to $89.3 million in the second quarter of 2020, which was significantly impacted by the COVID-19 pandemic. Operating loss for the second quarter of 2021 was $1.2 million compared to an operating loss of $37.5 million and an adjusted operating loss of $35.9 million in the second quarter of the prior year.¹ Net loss for the second quarter of 2021 was $726 thousand, or $0.00 per share, compared to a net loss of $25.1 million, or $0.12 loss per share in second quarter of the prior year. In the second quarter of 2020 the adjusted net loss was $22.3 million, or $0.10 adjusted loss per share.² Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2021 was $17.3 million, compared to EBITDA of negative $19.4 million and an adjusted EBITDA of negative $17.8 million in the same period of the prior year.³

Cost of revenues during the second quarter of 2021 was $145.8 million, or 77.2 percent of revenues, compared to $80.0 million, or 89.6 percent of revenues during the second quarter of 2020. Cost of revenues increased primarily due to increases in expenses consistent with higher activity levels, as well as higher fuel costs. Cost of revenues as a percentage of revenues decreased due to the leverage of higher revenues over certain fixed direct costs.

Selling, general and administrative expenses were $29.4 million in the second quarter of 2021 compared to $28.8 million in the second quarter of 2020. These expenses reflect higher bad debt expense and expenses consistent with higher activity levels partially offset by lower employment costs consistent with RPC’s cost control efforts. Selling, general and administrative expenses decreased from 32.2 percent of revenues in the second quarter of 2020 to 15.6 percent of revenues in the second quarter of 2021 due to cost leverage on higher revenues. Depreciation and amortization was $17.9 million in the second quarter of 2021 compared to $19.6 million in the second quarter of the prior year. Depreciation and amortization declined primarily because capital expenditures have remained relatively low during the last several quarters.

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 measure, is 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 measure, is disclosed in Appendix C to this press release.