Rpc Inc (RES) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Exhibit 99

RPC, Inc. Reports Third Quarter 2018 Financial Results

ATLANTA, October 24, 2018 - RPC, Inc. (NYSE: RES) today announced its unaudited results for the third quarter ended September 30, 2018. 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, 2018, revenues were $440.0 million, a decrease of 6.6 percent, compared to $471.0 million in the third quarter of last year. Revenues decreased compared to the same period of the prior year due to lower activity levels and slightly lower pricing, primarily within RPC’s pressure pumping service line. Operating profit for the quarter was $54.6 million, a decrease of 44.0 percent, compared to operating profit of $97.4 million in the same period of the prior year. Net income for the third quarter was $50.0 million or $0.23 diluted earnings per share, including a $0.04 per share favorable discrete tax adjustment, compared to net income of $57.3 million or $0.26 diluted earnings per share in the third quarter of 2017. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $97.8 million, a decrease of 28.9 percent, compared to $137.5 million in the prior year.¹

For the nine months ended September 30, 2018, revenues increased to $1.34 billion compared to $1.17 billion last year. Net income for the nine-month period was $162.0 million, or $0.75 diluted earnings per share, compared to $104.8 million, or $0.48 diluted earnings per share in the same period last year.

Cost of revenues during the third quarter of 2018 was $300.9 million, or 68.4 percent of revenues, compared to $294.8 million, or 62.6 percent of revenues, during the third quarter of last year. Cost of revenues increased primarily due to higher employment costs, partially offset by lower materials and supplies expenses, which declined due to lower activity levels, particularly within our pressure pumping service line. Cost of revenues as a percentage of revenues increased due to inefficiencies caused by inconsistent activity levels and higher employment costs.

Selling, general and administrative expenses were $41.8 million in the third quarter of 2018 compared to $39.7 million in the third quarter of 2017. As a percentage of revenues, these expenses increased to 9.5 percent in the third quarter of 2018 compared to 8.4 percent of revenues in the third quarter of 2017, due to relatively fixed nature of these expenses during the short term. Depreciation and amortization increased to $43.0 million compared to $39.6 million in the third quarter of the prior year due to capital expenditures made during the previous four quarters.

¹ EBITDA is a financial measure which does not conform to generally accepted accounting principles (GAAP). Additional disclosure regarding this non-GAAP financial measure is disclosed in Appendix A to this press release.