NPK International Inc. · NYSE:NPKI
NPK International — Newpark Resources — Howard Weil Energy Conference 2007
26 slides from NPK International's conference presentation, Apr 4, 2007
Slide 1: New Leadership, New Focus, New Strategy
New Leadership New Focus New Strategy Newpark Howard Weil Energy Conference April 4, 2007 Newpark Resources, Inc. Paul Howes, President and CEO
Slide 2: Company Profile
Company Profile Specialized provider of: Fluids Systems and Engineering Mat and Integrated Services Environmental Services* Customers: Oil and Gas Industry Key markets: North America North Africa Recent entry into South America * Environmental Services to be divested
Slide 3: Mission & Vision
Mission & Vision New leadership, new focus, new strategy Achieve best-in-class competitive positioning and performance in each business line Position for long-term growth through more disciplined approach to strategic investments Build a strong reputation with investors by delivering consistent perf
Slide 4: New Leadership
New Leadership Paul Howes, President & CEO Jim Braun, VP & CFO Mark Airola, GC & Admin Officer Bruce Smith, President Fluids Systems and Engineering Tom Eisenman, President Excalibar Minerals LLC Sean Mikaelian, President Mat & Integrated Services Sammy Cooper, President Environmental Services
Slide 5: New Focus
New Focus New leadership brought in with industry experience Spent majority of 2006 cleaning house Exited poor return businesses Worked with Board to develop strategic growth plan New strategy rolled out in March 2007 based on the principles of: Growth Focus Discipline
Slide 6: New Strategy
New Strategy Grow Fluids Systems and Engineering Organically / Acquisitions / Domestically / Internationally Expand scope and geographic position in Mat and Integrated Services Reorganized from 5 units to 1 unit; 15% headcount reduction Leverage relationships with existing customers Exit Environment
Slide 7: New Strategy Rationale - Fluids
New Strategy Rationale - Fluids Core business line - 80% of revenues Technologically advanced & unique fluid systems DeepDrill, FlexDrill, DeepDrill II and family of specialized water-based products, has performance applications for off-shore deepwater and shelf, as well as land based drilling Oppor
Slide 8: New Strategy Rationale - Fluids: Strong Revenue Growth
New Strategy Rationale - Fluids Strong Revenue Growth 31% CAGR
Slide 9: New Strategy Rationale - Fluids: Strong Margin Growth
New Strategy Rationale - Fluids Strong Margin Growth
Slide 10: Scope of Operations: North America Stronghold
Serves major North America basins Approximately 16% share of markets serviced in North America1 Substantial service facilities network Growing share vis-a-vis other players Well-positioned to expand into new customers and basins Scope of Operations North America Stronghold Offices Barite Mills Offsh
Slide 11: Scope of Operations: Expanding Internationally
Initial international market entry through acquisition of Ava, S.p.A. (Italy) Current key markets Mediterranean North Africa Eastern Europe Plans for market expansion Brazil Scope of Operations Expanding Internationally
Slide 12: Scope of Operations: Excalibar Minerals LLC
Quality processor and supplier of industrial minerals Barite, Barytes Calcium Carbonate Alumina Trihydrate (ATH) Applications Oilfield Industrial Integral to Fluids Systems and Engineering Scope of Operations Excalibar Minerals LLC
Slide 13: New Strategy Rationale - Mats
New Strategy Rationale - Mats Leverage relationship with existing customers Advantage of often being first service provider "on site" Expand product and service offerings in the well site preparation market Expansion and diversification Growth opportunities beyond current Gulf Coast region Maximize
Slide 14: New Strategy Rationale - Mats: 10% CAGR
New Strategy Rationale - Mats New Strategy Rationale - Mats 10% CAGR
Slide 15: New Strategy Rationale - Mats: Aiming to Expand Margins
New Strategy Rationale - Mats Aiming to Expand Margins
Slide 16: Exit Strategy Rationale - Environmental
Exit Strategy Rationale - Environmental Seek greater strategic focus Rationalize business mix that offers greatest long term growth Deploy capital with greater returns
Slide 17: Investment Considerations
Investment Considerations New Leadership Building management team with industry experience New Focus Greater discipline Focusing on improving profitability, returns and free cash flow New Strategy Growing Fluids organically and through acquisitions Growing Mats through additional products, services
Slide 18: Thank you for your interest!
New Leadership New Focus New Strategy Newpark Thank you for your interest!
Slide 19: Appendix
New Leadership New Focus New Strategy Newpark Appendix
Slide 20: Consolidated Income Statement
tk Resources ces... Financials Newpark Resources, Inc. Consolidated Income Statement ($000s, except per share data) (Unaudited) Quarter Ended December 31, Year Ended December 31, (n thousands, except per share ala) 2006. 2005 2006 2005 Revenues 8 167,798 144,879 § 668,685 = § $53,632 Cost of revenue
Slide 21: Non-GAAP Earnings Reconciliation
Resources... Financials Newpark Resources, Inc. Non-GAAP Earnings Reconciliation ($0005) YearEnded Quarter Ended (Unaudited) 1213112006 1219112006 Loss from continuing operations before taxes (as reported) $ (23671) $ — (89,73) Goodwill & lang lived asset impairment 72,638 72,638 Business insurance
Slide 22: Segment Comparison
tk Resources Financials Newpurk Rexources, Inc. Segment Compurizon ($0005) Quarter Ended ‘Yeur Ended December 31 7a1/2006 979072006 72n1/2005 2006 2005 Segment revenues Fluids systems and engineering § 129091 8 125,130 S 101648 $481,378 $ 384,208 Mat and integrated services 21,704 26,451 27,238 116.
Slide 23: Consolidated Balance Sheet
Resources eES..0 Financials Newpark Resources, Inc. Connolicated Bulance Sheet 000s) December 31, December 31, Unaudited) 2006 2005 ASSETS Curent assets: Cash and cash ecuivalents 3 13218 «$7888 Trade accounts receivable, less allovances 153481 198,798 Notes and other receivables 2740 i252 Inventori
Slide 24: Management Biographies
Paul L. Howes, President & CEO: Paul joined Newpark's Board of Directors and was appointed its Chief Executive Officer in March 2006. In June 2006, Mr. Howes also was appointed as Newpark's President. Mr. Howes' career has included experience in the defense industry, chemicals and plastics manufactu
Slide 25: Management Biographies (continued)
Bruce C. Smith, President Fluids Systems and Engineering: Bruce joined Newpark in April 1998 as Vice President, International. Since October 2000, he has served as President of its subsidiary Newpark Drilling Fluids, L.P. Prior to joining Newpark, Mr. Smith was the Managing Director of the U.K. oper
Slide 26: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future
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