Rpc Inc (RES) SEC Filing 10-Q Quarterly report for the period ending Sunday, March 31, 2019

Exhibit 99

RPC, Inc. Reports First Quarter 2019 Financial Results

ATLANTA, April 24, 2019 - RPC, Inc. (NYSE: RES) today announced its unaudited results for the first quarter ended March 31, 2019. 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 March 31, 2019, revenues were $334.7 million, a decrease of 23.3 percent, compared with $436.3 million in the first quarter of 2018. Revenues decreased due primarily to lower pricing and lower activity levels within pressure pumping, which is RPC’s largest service line. Operating loss for the quarter was $2.2 million compared to operating profit of $60.8 million in the same period of the prior year. Net loss for the first quarter of 2019 was $739 thousand, or $0.00 per share, compared to net income of $52.1 million, or $0.24 diluted earnings per share, in the first quarter of 2018. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter were $40.8 million, a decrease of 60.7 percent, compared to $103.7 million in the same period of the prior year.^[1]

Cost of revenues during the first quarter of 2019 was $252.4 million, or 75.4 percent of revenues, compared to $295.6 million, or 67.7 percent of revenues, during the first quarter of 2018. Cost of revenues decreased, consistent with lower activity levels, due to lower materials and supplies expenses within RPC’s pressure pumping service line, as well as lower maintenance and repair and fuel expenses. Cost of revenues as a percentage of revenues increased due to lower revenues, and labor costs that are relatively fixed in the short term.

Selling, general and administrative expenses increased from $43.8 million in the first quarter of 2018 to $45.4 million in the first quarter of 2019. As a percentage of revenues, these expenses increased to 13.6 percent in the first quarter of 2019 compared to 10.0 percent in the first quarter of 2018. Depreciation and amortization increased to $42.5 million in the first quarter of 2019 compared with $37.5 million in the first quarter of the prior year due to capital expenditures made during the previous four quarters.

Discussion of Sequential Quarterly Financial Results

RPC’s revenues for the quarter ended March 31, 2019 decreased by $42.1 million, or 11.2 percent, compared with the fourth quarter of 2018 due principally to lower pricing and utilization in pressure pumping. Cost of revenues during the first quarter of 2019 decreased by $22.0 million, or 8.0 percent, due primarily to decreases in materials and supplies expenses. As a percentage of revenues, cost of revenues increased from 72.8 percent in the fourth quarter of 2018 to 75.4 percent in the first quarter of 2019, due to lower revenues, and labor cost inefficiencies resulting from lower activity levels. RPC’s operating loss for the first quarter was $2.2 million, a decrease of $21.8 million compared with an operating profit of $19.7 million in the fourth quarter of 2018. EBITDA for the first quarter of 2019 decreased by $20.9 million, or 33.9 percent, compared to the prior quarter.

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