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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995 Commission File No. 1-2960
Newpark Resources, Inc.
(Exact name of registrant as specified in its charter)
Delaware 72-1123385
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3850 N. Causeway, Suite 1770
Metairie, Louisiana 70002
(Address of principal executive offices) (Zip Code)
(504) 838-8222
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the
issuer's classes of common stock as of the latest
practicable date.
Common Stock, $0.01 par value: 10,124,786 shares at November 10, 1995.
Page 1 of 16
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<PAGE>
NEWPARK RESOURCES, INC.
INDEX TO FORM 10-Q
FOR THE THREE AND NINE MONTH PERIODS ENDED
SEPTEMBER 30, 1995
Item Page
Number Description Number
______ ___________ ______
PART I
______
1 Unaudited Consolidated Financial Statements:
Balance Sheets -
September 30, 1995 and December 31, 1994........3
Statements of Income for the Three Month And
Nine Month Periods Ended September 30, 1995
and 1994........................................4
Statements of Cash Flows for the Nine Month
Periods Ended September 30, 1995 and
1994............................................5
Notes to Consolidated Financial Statements...........6
2 Management's Discussion and Analysis of Financial
Condition and Results of Operations..................8
PART II
_______
5 Other Information.......................................15
6 Exhibits and Reports on Form 8-K........................15
2
<PAGE>
PART I
ITEM 1. Financial Statements
____________________
<TABLE>
<CAPTION>
Newpark Resources, Inc.
Consolidated Balance Sheets
As of September 30, 1995 and December 31, 1994
(Unaudited) September 30, December 31,
______________________________________________________________________________
(In thousands, except share data) 1995 1994
______________________________________________________________________________
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,180 $ 1,404
Accounts and notes receivable, less allowance
of $416 in 1995 and $455 in 1994 33,332 21,450
Inventories 10,235 7,099
Other current assets 1,514 1,544
_______ _______
Total current assets 46,261 31,497
Property, plant and equipment, at cost, net of
accumulated depreciation 79,112 67,630
Cost in excess of net assets of purchased
businesses, net of accumulated amortization 4,356 4,403
Other assets 6,524 7,226
_______ _______
$136,253 $110,756
======= =======
LIABILITIES AND SHAREHOLDERSO EQUITY
Current liabilities:
Notes payable $ - $ 1,796
Current maturities of long-term debt 6,025 8,236
Accounts payable 9,856 5,022
Accrued liabilities 2,425 2,858
_______ _______
Total current liabilities 18,306 17,912
Long-term debt 44,269 28,892
Other non-current liabilities 791 253
Commitments and contingencies
Shareholders' equity:
Preferred Stock, $.01 par value , 1,000,000
shares authorized, no shares outstanding - -
Common Stock, $.01 par value, 20,000,000
shares authorized, 10,074,786 shares
outstanding in 1995 and 9,985,785 in 1994 100 99
Paid-in capital 135,044 134,252
Retained earnings (deficit) (62,257) (70,652)
_______ _______
Total shareholders' equity 72,887 63,699
_______ _______
$136,253 $110,756
======= =======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
Newpark Resources, Inc.
Consolidated Statements of Income
For the Three and Nine Month Periods Ended September 30,
(Unaudited)
______________________________________________________________________________
(In thousands, except per share data)
______________________________________________________________________________
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1995 1994 1995 1994
_________________ ________________
<S> <C> <C> <C> <C>
Revenues $24,793 $21,169 $69,456 $57,711
Operating costs and expenses:
Cost of services provided 16,163 14,847 46,345 41,188
Operating costs 2,307 1,420 6,901 5,227
______ ______ ______ ______
18,470 16,267 53,246 46,415
General and administrative
expenses 749 1,209 2,066 2,379
Provision for uncollectible accounts
and notes receivable 45 528 115 621
______ ______ ______ ______
Operating income 5,529 3,165 14,029 8,296
Interest income (31) (69) (152) (69)
Interest expense 905 698 2,794 1,816
Non-recurring expense 436 - 436 -
______ ______ ______ ______
Income from operations before
provision for income taxes 4,219 2,536 10,951 6,549
Provision for income taxes 1,519 100 2,555 100
______ ______ ______ ______
Net income $2,700 $2,436 $8,396 $6,449
====== ====== ====== ======
Weighted average
shares outstanding 10,069 9,937 10,041 9,913
====== ====== ====== ======
Net income per common share $0.27 $0.25 $0.84 $0.65
====== ====== ====== ======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
4
<PAGE>
<TABLE>
<CAPTION>
Newpark Resources, Inc.
Consolidated Statements of Cash Flows
For the Nine Month Periods Ended September 30,
(Unaudited)
______________________________________________________________________________
(In thousands) 1995 1994
______________________________________________________________________________
<S> <C> <C>
Cash flows from operating activities:
Net income $ 8,396 $ 6,449
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 7,306 5,265
Loss (gain) on sales of assets 85 (6)
Provision for deferred income taxes 2,555 -
Provision for doubtful accounts 115 621
Change in assets and liabilities:
Increase in accounts and notes receivable (10,925) (4,103)
(Increase) decrease in inventories (3,136) 508
Increase in other assets (1,276) (948)
Increase in accounts payable 2,163 202
Decrease in accrued liabilities and other (179) (765)
_______ _______
Net cash provided by operating activities 5,104 7,223
_______ _______
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment 487 88
Payments received on notes receivable 120 13
Disbursements for loans outstanding (221) (1,000)
Proceeds from sale of net assets of discontinued
operations - 661
Investment in joint venture (1,172) -
Capital expenditures (16,704) (15,671)
_______ _______
Net cash used in investing activities (17,490) (15,909)
_______ _______
Cash flows from financing activities:
Net borrowings on lines of credit 16,638 636
Principal payments on notes payable, capital lease
obligations and long-term debt (19,564) (9,692)
Proceeds from the issuance of debt 14,296 16,819
Proceeds from conversion of stock options 792 584
_______ _______
Net cash provided by financing activities 12,162 8,347
_______ _______
Net decrease in cash and cash equivalents (224) (339)
Cash and cash equivalents at beginning of year 1,404 1,171
_______ _______
Cash and cash equivalents at end of the period $ 1,180 $ 832
======= =======
</TABLE>
Included in accounts payable at September 30, 1995 were
equipment purchases of $2,671,000. Included in accounts
payable and accrued liabilities at September 30, 1994 were
equipment purchases of $638,000 and $467,000, respectively.
The net assets of the Company's discontinued operations were
exchanged for a receivable, the net amount of which was
$400,000 at September 30, 1994.
Interest of $2,998,000 and $1,946,000 and income taxes of
$51,400 and $42,000 were paid during the nine months ending
September 30, 1995 and 1994, respectively.
See accompanying Notes to Consolidated Financial Statements.
5
<PAGE>
NEWPARK RESOURCES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1 In the opinion of management the accompanying
unaudited consolidated financial statements reflect
all adjustments necessary to present fairly the
financial position of Newpark Resources, Inc.
("Newpark" or the "Company") as of September 30,
1995, and the results of operations for the three
and nine month periods ended September 30, 1995 and
1994 and cash flows for the nine month periods ended
September 30, 1995 and 1994. All such adjustments
are of a normal recurring nature. These interim
financial statements should be read in conjunction
with the December 31, 1994 audited financial
statements and related notes filed on Form 10-K at
December 31, 1994.
Note 2 The consolidated financial statements include
the accounts of Newpark and its wholly-owned
subsidiaries. All material intercompany
transactions are eliminated in consolidation.
Certain reclassifications have been made in the 1994
financial statements to conform them to the 1995
presentation.
Note 3 The results of operations for the three and
nine month periods ended September 30, 1995 are not
necessarily indicative of the results to be expected
for the entire year.
Note 4 The following is a summary of inventories at
September 30, 1995 and December 31, 1994 (in
thousands):
1995 1994
____ ____
Raw materials $9,713 $6,752
Finished goods 522 347
______ ______
$10,235 $7,099
====== ======
Note 5 Interest of $149,000 and $61,000 was capitalized
during the three months ended September 30, 1995 and
1994, respectively. For the nine months ended
September 30, 1995 and 1994, interest of $276,000 and
$128,000 was capitalized, respectively.
Note 6 The Company maintains a $50.0 million bank
credit facility with $25.0 million in the form of a
revolving line of credit commitment and the
remaining $25.0 million in a term note. The line of
credit is secured by a pledge of accounts receivable
and certain inventory. It bears interest at either
a specified prime rate or the LIBOR rate plus a
spread which is determined quarterly based upon the
ratio of the Company's funded debt to cash flow.
6
<PAGE>
The line of credit requires monthly interest
payments and matures on December 31, 1998. At
September 30, 1995, $6.3 million of letters of
credit were issued and outstanding, leaving a net of
$18.7 million available for cash advances under the
line of credit, against which $14.2 million had been
borrowed. The term loan was used to refinance
existing debt and requires monthly interest
installments and seventeen equal quarterly principal
payments commencing March 31, 1996. The term loan
bears interest at the Company's option of either a
specified prime rate or LIBOR rate, plus a spread
which is determined quarterly based upon the ratio
of the Company's funded debt to cash flow. The
credit agreement requires that the Company maintain
certain specified financial ratios and comply with
other usual and customary requirements. The Company
was in full compliance with the agreement at
September 30, 1995.
Note 7 Newpark and its subsidiaries are involved in
litigation and other claims or assessments on
matters arising in the normal course of business.
In the opinion of management, any recovery or
liability in these matters will not have a material
adverse effect on Newpark's consolidated financial
statements.
During 1992, the State of Texas assessed additional
sales taxes for the years 1988-1991. The Company
has filed a petition for redetermination with the
Comptroller of Public Accounts. The Company
believes that the ultimate resolution of this matter
will not have a material adverse effect on the
consolidated financial statements.
In the normal course of business, in conjunction
with its insurance programs, the Company has
established letters of credit in favor of certain
insurance companies in the amount of $2,825,000 at
September 30, 1995. At September 30, 1995, the
Company had outstanding a letter of credit in the
amount of $3,816,000 in connection with facility
closure obligations.
The Company holds the exclusive right to use a
patented prefabricated mat system throughout the
continental United States. The license agreement
requires, among other things, that the Company
purchase a minimum of 20,000 mats annually. Any
purchases in excess of that level may be applied to
future annual requirements. The Company's annual
commitment to maintain the agreement in force is
estimated to be $3,600,000.
7
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
The following tables represent revenue by product line
for the three and nine month periods ended September 30,
1995 and 1994.
<TABLE>
<CAPTION>
Three Month Periods Ended September 30,
_______________________________________
(Dollars in thousands)
1995 1994
______________ ______________
<S> <C> <C> <C> <C>
Revenues by product line:
Offsite waste processing $7,229 29.2% $5,592 26.4%
Site preparation 7,319 29.5 5,075 24.0
Onsite environmental management 5,227 21.1 4,319 20.4
Wood product sales 3,039 12.2 3,330 15.7
General oilfield services 1,579 6.4 2,453 11.6
Other 400 1.6 400 1.9
______ _____ ______ _____
Total revenues $24,793 100.0% $21,169 100.0%
====== ===== ====== =====
</TABLE>
<TABLE>
<CAPTION>
Nine Month Periods Ended September 30,
______________________________________
(Dollars in thousands)
1995 1994
_______________ _______________
<S> <C> <C> <C> <C>
Revenues by product line:
Offsite waste processing $22,144 31.9% $14,410 25.0%
Site preparation 19,253 27.7 15,034 26.0
Onsite environmental management 12,457 17.9 10,303 17.8
Wood product sales 8,449 12.2 10,248 17.8
General oilfield services 5,953 8.6 6,516 11.3
Other 1,200 1.7 1,200 2.1
______ _____ ______ _____
Total revenues $69,456 100.0% $57,711 100.0%
====== ===== ====== =====
</TABLE>
Three Month Period Ended September 30, 1995 Compared to
Three Month Period Ended September 30, 1994
Revenues
Total revenues increased $3.6 million or 17.1% to $24.8
million in the 1995 period from $21.2 million in the 1994
period. Principal components of the increase by product line
are described as follows:
Site preparation revenue increased $2.2 million or
44.2%, attributable to a 26% increase in the volume of mats
installed and a 14.5% increase in average pricing. Much of
8
<PAGE>
the improvement was the result of the continuing shift of
exploration activity to the coastal marsh "transition zone"
between dry land and the Gulf of Mexico. This area has
previously been only lightly drilled, due in part to the
high cost of construction of temporary sites and
restrictions which have prevented dredging in the area. The
availability of three dimensional seismic data and use of
other advanced technologies, which improve the probability
of a commercially successful well, have made it feasible for
customers to conduct such expensive operations.
Offsite waste processing revenue increased $1.6 million
or 29.3%. The increase was derived from processing
naturally occurring radioactive material (ONORMO) which
began with the opening of the Company's processing plant in
the fourth quarter of 1994, thus no comparable revenue
existed in the prior period. Revenue from processing
nonhazardous oilfield waste (ONOWO) was substantially
unchanged at $5.6 million compared to $5.7 million in the
prior period. A 4.4% increase in volume was offset in part
by a 2.7% decline in effective pricing, averaging $8.16 per
barrel in the period due to changes in revenue mix. Volume
for the quarter was affected by lower receipts from the
offshore market, which was hampered by tropical weather
during the quarter, as well as the delay in the commencement
of several remediation projects. The reduced volume from
the higher-priced, service intensive offshore market was
offset by lower-priced volume from the pit remediation
market.
Onsite environmental management services revenue
increased $908,000 or 21%. A total of $570,000 of the
increase was the result of increased activity in the pit
remediation market, which generated approximately 82,000
barrels of NOW waste for disposal in the quarter. This
increase has been made possible by the resolution of the
NORM regulations which were promulgated in both Louisiana
and Texas in late 1994 and early 1995, allowing resumption
of remediation activities. Mat re-rental revenue increased
approximately $340,000 or 17.4% and is a function of the
increased duration of use of the typical location as a
result of changes in the type and mix of current drilling
activities.
Revenue from wood product sales decreased $291,000.
The decline is due in part to the inclusion of a large order
of logs in the 1994 period that did not occur in the 1995
period. While the Company experienced an increase in lumber
sales of approximately $700,000, total revenues were reduced
due to the effect of the start-up process related to recent
capacity expansion.
Revenue from general oilfield services decreased
$874,000 due largely to the continuing decline in the total
number of new wells spudded, reducing the number of
opportunities for sale of such services.
9
<PAGE>
Operating Income
Operating income increased $2.4 million or 74.7% to
$5.5 million or 22.3% of revenue in the 1995 period from
$3.2 million or 14.9% of revenue in the 1994 period.
Material factors contributing to the increase included: (i)
an approximate $780,000 increase in operating income from
the Company's site preparation and onsite environmental
management operations. The increased contribution was the
effect of both the Company's low variable costs relative to
the incremental revenue resulting from the volume increase
in the period, as well as increases in income from board
road mat rerentals of approximately $340,000; (ii) an
approximate $330,000 net increase in operating income from
offsite waste processing of which $800,000 was attributable
to NORM processing operations; the contributions from NOW
processing declined $475,000 with the combined effect of
lower prices due to mix of waste receipts and the cost of
increased capacity recently constructed; (iii) an
approximate $323,000 increase in operating income on better
gross margin mix from wood product sales; (iv) a reduction
of $460,000 in general and administrative expenses which, as
a proportion of revenue, decreased to 3.0% for the 1995
period as compared to 5.7% in the 1994 period. The 1994
period was affected by a charge for legal costs incurred due
to the appeal of an expropriation matter and a provision for
an additional franchise tax expense; and (v) a $483,000
lower provision for uncollectible accounts and notes
receivable in the current period.
Interest Expense
Interest expense increased $207,000, to $905,000 in the
1995 period from $698,000 in the 1994 period, as the Company
increased net borrowings to finance new facilities and
equipment.
Non-recurring Operating Expense
Non-recurring operating expenses were related to a
proposed acquisition which was terminated in August of 1995.
The majority of these expenses were legal, accounting and
investment advisory fees.
Income from Operations before Provision for Income Taxes
Income from operations before provision for income
taxes increased $1.7 million or 66.4% to $4.2 million in the
1995 period from $2.5 million in the 1994 period.
10
<PAGE>
Provision for Income Taxes
The net provision for the 1995 period of $1.5 million
equal to a 36% effective rate is comprised of a provision
for federal and state income taxes. The 1994 period's net
provision was $100,000, and benefited from the recognition
of certain net operating loss carryforwards that were not
available in the current period.
Net Income
Net income increased $264,000 or 10.8% to $2.7 million
in the 1995 period from $2.4 million in the 1994 period.
Nine Month Period Ended September 30, 1995 Compared to Nine
Month Period Ended September 30, 1994
Revenues
Total revenues increased to $69.5 million in the 1995
period from $57.7 million in the 1994 period, an increase of
$11.7 million or 20.3%. Significant components of the
increase by product line are described as follows:
Offsite waste processing revenue increased $7.7 million
or 53.7%, which included $4.5 million in NORM processing
revenue which was begun in the fourth quarter of 1994, and
thus did not contribute to the comparable 1994 period, and
$3.2 million from NOW processing, primarily the effect of
increased processing volume. NOW processing volume in the
1995 period was 2,054,000 barrels, compared to 1,710,000 in
the 1994 period. This volume change was attributed to
increased regulation of the industry's current drilling and
production operations.
Site preparation revenue increased $4.2 million or
28.1%. Non-oilfield wetlands site revenue contributed to
$2.6 million of the increase. Pricing in the current nine
months rose 10.4% accounting for 37% of the revenue gain,
with the remainder attributable to increased volume.
Onsite environmental management service revenue
increased $2.2 million or 20.9%. A total of $1.7 million or
77% of the increase was the result of increased re-rental
revenues earned, as customers extend the term during which a
site is in use, due to a shift towards drilling to deeper
targets in the coastal marsh. The remainder of the increase
came as a result of increased site remediation activity in
the period.
General oilfield services revenue decreased $563,000
or 8.6%, generally the result of lower exploration activity
in the 1995 period in terms of the number of wells drilled.
11
<PAGE>
Wood product sales declined $1.8 million due to the
inclusion of a large order which provided $2.6 million of
revenue in the 1994 period and did not recur in the current
period, net of an increase in lumber and chip revenues
facilitated by the installation of an additional processing
line at the mill.
Operating Income
Operating income increased $5.7 million or 69.1% to
$14.0 million or 20.2% of revenue in the 1995 period from
$8.3 million or 14.4% of revenue in the 1994 period.
Factors contributing to the increase included (i) a $2.5
million increase in operating income from site preparation
and onsite environmental management operations, which was
primarily due to a $1.7 million increase in income from mat
re-rentals, which are becoming more frequent as the
Company's customers' drilling patterns move toward deeper
wells, which take longer to complete, particularly in the
Louisiana market; (ii) a $2.4 million increase in operating
profit from offsite waste processing of which approximately
$2.0 million was derived from NORM processing operations
which began in the fourth quarter of 1994; the difference
was an increase of $400,000 or 15% in operating profit from
NOW processing operations due to increased volume; (iii) an
approximate $300,000 decrease in general and administrative
expenses which, as a proportion of revenue, decreased to
3.0% for the 1995 period as compared to 4.1% in the 1994
period. The 1994 period was adversely affected by a charge
for legal costs incurred due to the appeal of an
expropriation matter coupled with a provision for additional
franchise tax expense; and (iv) an approximate $500,000
decrease in the provision for uncollectible accounts and
notes receivable in the current period.
Interest Expense
Interest expense increased $978,000 to $2.8 million in
the 1995 period from $1.8 million in the 1994 period, as the
Company increased net borrowings to finance additions to its
facilities and equipment.
Non-recurring Operating Expense
Non-recurring operating expenses were related to a
proposed acquisition which was terminated in August of 1995.
The majority of these expenses were legal, accounting and
investment advisory fees.
Income from Operations before Provision for Income Taxes
Income from operations before provision for income
taxes increased $4.4 million or 67.2% to $11.0 million in
the 1995 period from $6.5 million in the 1994 period.
12
<PAGE>
Provision for Income Taxes
The net provision for the 1995 period of $2.6 million
equal to a 23.3% average rate, is comprised of a provision
for federal and state income taxes net of the recognition of
the future federal and state income tax carryforwards
available to offset estimated future earnings.
Net Income
Net income increased $1.9 million or 30.2% to $8.4
million in the 1995 period from $6.4 million in the 1994
period.
Liquidity and Capital Resources
The Company's working capital increased $14.4 million
during the nine month period. Key working capital data is
as follows:
September 30, 1995 December 31, 1994
__________________ __________________
Working Capital (000's) $27,955 $13,585
Ratio of current assets to
current liabilities 2.53:1 1.76:1
During 1995, the Company's working capital needs have
been generally provided from operating cash flow.
During the first nine months of 1995, the Company has
made capital expenditures of $16.7 million. The Company
successfully completed four new injection wells, including
two additional wells at its Big Hill facility and two at a
new facility in the Fannett field. The new wells double the
Company's disposal capacity to more than 5 million barrels
annually. Construction of the bulk waste handling facility
located near the existing NOW and NORM processing plants at
Port Arthur, Texas, is nearing completion and the facility
is expected to begin receiving material from remediation
projects in the current quarter. The company's milling
plant at the Big Hill facility has successfully completed
the first phase of its operating trials, and is also
expected to be placed into service during the fourth
quarter.
At September 30, 1995 long term debt of $44.3 million
had risen by $15.4 million since December 31, 1994 and
represented 37.8% of total capital. Additions to property,
plant and equipment during the nine months of 1995 totaled
$16.7 million and included primarily the continued expansion
of the Company's waste processing and disposal capacity and
additions to rental mats and equipment utilized in the
Company's site preparation and remediation services.
13
<PAGE>
Historically, the Company's capital requirements have
been provided from internally generated funds, borrowings
from banks, issuance of securities, and through borrowings
from other commercial lenders. To date, the Company has
been able to obtain sufficient financing from these sources,
and believes that such sources will remain available on a
satisfactory basis as may be required in the future.
On June 29, 1995, the Company entered into a new credit
agreement with a group of three banks, providing a total of
up to $50 million of term financing. The facility provided
for the refinancing of $25 million of existing debt for a
five year term. At the Company's option, these borrowings
bear interest at either a specified prime rate or LIBOR
rate, plus a spread which is determined quarterly based upon
the ratio of the Company's funded debt to cash flow.
In addition, up to $25 million is available under a
revolving line of credit which matures December 31, 1998.
Availability under this facility is tied to the level of the
Company's accounts receivable and certain inventory.
Advances under the line bear interest, at the CompanyOs
option, at either a specified prime rate or the LIBOR rate,
plus a spread calculated quarterly based upon the ratio of
the Company's funded debt to cash flow; interest is payable
monthly. At September 30, 1995, $6.3 million of letters of
credit were issued and outstanding, leaving a net of $18.7
million available for cash advances under the line of
credit, against which $14.2 million had been borrowed. The
credit agreement requires that the Company maintain certain
specified financial ratios and comply with other usual and
customary requirements. The Company was in full compliance
with the agreement at September 30, 1995.
Newpark does not plan to significantly increase the
proportion of debt in its capital structure during the
remainder of 1995, and expects to utilize operating cash
flow, net of working capital requirements, to fund much of
its planned capital expenditures.
Potential sources of additional funds, if required by
the Company, would include additional borrowings and the
sale of equity securities. The Company presently has no
commitments beyond its bank lines of credit by which it
could obtain additional funds for current operations;
however, it regularly evaluates potential borrowing
arrangements which may be utilized to fund future expansion
plans.
Inflation has not materially impacted the Company's
revenues or income.
14
<PAGE>
PART II
ITEM 5. Other Information
On November 2, 1995, the Company's Board of
Directors authorized the declaration of an annual 5%
stock dividend payable December 29, 1995 to holders
of record as of November 30, 1995.
The Company has recently filed an application to
list its common stock on the New York Stock
Exchange. The Company expects to begin trading on
this exchange in early December, 1995.
On November 8, 1995, the Company announced the
appointment of David P. Hunt to its Board of
Directors. Prior to joining Newpark's Board, Mr.
Hunt was employed by Consolidated Natural Gas
Company for 32 years, having most recently served as
President and CEO of New Orleans based CNG Producing
Company from which he recently retired.
ITEM 6. Exhibit and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K
During the third quarter of 1995, the registrant
filed three reports on Form 8-K as follows:
Form 8-K
________
Date of Report July 18, 1995
Items Reported 5, 7(a)
Date of Report July 21, 1995
Items Reported 5, 7(c)
Date of Report August 9, 1995
Items Reported 5, 7(c)
15
<PAGE>
NEWPARK RESOURCES, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
Date: November 13, 1995
NEWPARK RESOURCES, INC.
By: /s/Matthew W. Hardey
_________________________________
Matthew W. Hardey, Vice President
and Chief Financial Officer
16
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