Rpc Inc (RES) SEC Filing 10-Q Quarterly report for the period ending Sunday, June 30, 2019

Exhibit 99

RPC, Inc. Reports Second Quarter 2019 Financial Results

ATLANTA, July 24, 2019 - RPC, Inc. (NYSE: RES) today announced its unaudited results for the second quarter ended June 30, 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 June 30, 2019, revenues were $358.5 million, a decrease of 23.4 percent, compared with $467.9 million in the second quarter of 2018. Revenues decreased due primarily to lower pricing, lower activity levels, and an unfavorable materials mix within pressure pumping, which is RPC’s largest service line. Operating profit for the second quarter of 2019 was $8.4 million compared to operating profit of $75.0 million in the same period of the prior year. Net income for the second quarter of 2019 was $6.2 million, or $0.03 diluted earnings per share, compared to net income of $59.9 million, or $0.28 diluted earnings per share, in the second quarter of 2018. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter were $51.2 million, a decrease of 57.0 percent, compared to $119.2 million in the same period of the prior year.¹ For the six months ended June 30, 2019, revenues decreased to $693.2 million compared to $904.3 million last year. Net income for the six-month period was $5.4 million, or $0.02 diluted earnings per share, compared to $112.1 million, or $0.52 diluted earnings per share in the same period last year.

Cost of revenues during the second quarter of 2019 was $265.1 million, or 73.9 percent of revenues, compared to $312.1 million, or 66.7 percent of revenues, during the second quarter of 2018. Cost of revenues decreased, consistent with lower activity levels, due to lower materials and supplies expenses, including an unfavorable materials mix within RPC’s pressure pumping service line, as well as lower fuel costs. Cost of revenues as a percentage of revenues increased due to lower revenues, increasingly competitive pricing for our services, and labor cost inefficiencies.

Selling, general and administrative expenses increased slightly to $43.3 million in the second quarter of 2019 compared with $42.5 million in the second quarter of 2018. As a percentage of revenues, these expenses increased to 12.1 percent in the second quarter of 2019 compared with 9.1 percent in the second quarter of 2018. Depreciation and amortization increased to $42.9 million in the second quarter of 2019 compared with $40.1 million in the second quarter of the prior year due to capital expenditures made during the previous four quarters.