<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d)of the Securities
Exchange Act of 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission File No. 1-8726
RPC, INC.
DELAWARE 58-1550825
(State of Incorporation) (I.R.S. Employer Identification Number)
2170 Piedmont Road, NE, Atlanta, Georgia 30324
Telephone Number -- (404) 888-2950
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
----- -----
As of September 30, 1995, RPC, Inc. had 14,541,331 shares of common stock
outstanding (excluding 68,723 treasury shares).
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RPC, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
(In thousands except stock information)
<TABLE>
<CAPTION>
SEPTEMBER 30, December 31,
1995 1994
(UNAUDITED) (Audited)
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<S> <C> <C>
ASSETS
Cash and cash equivalents $18,456 $15,038
Marketable securities 5,048 6,885
Accounts receivable, net of allowance for doubtful
accounts of $7,947 and $6,300, respectively 20,319 20,577
Inventories, at lower of cost or market 11,438 12,342
Deferred income taxes 7,398 6,811
Prepaid expenses and other current assets 895 1,474
- ------------------------------------------------------------------------------------------------------------
Current assets 63,554 63,127
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Equipment and property, net 34,054 28,837
Marketable securities 20,643 19,291
Goodwill, net 8,079 8,098
Deferred income taxes 821 825
Other assets 1,821 2,064
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TOTAL ASSETS $128,972 $122,242
============================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $3,794 $5,387
Accrued payroll and related expenses 3,454 3,441
Accrued insurance expenses 5,687 5,227
Accrued state, local and other taxes 2,891 2,567
Federal income taxes payable 231 198
Accrued discounts 502 824
Other accrued expenses 7,607 7,656
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Current liabilities 24,166 25,300
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Long-term accrued insurance expenses 3,782 3,443
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Total liabilities 27,948 28,743
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Commitments and contingencies
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Common stock 1,461 1,461
Capital in excess of par value 34,599 34,228
Earnings retained 65,189 58,296
Common stock in treasury, at cost, 68,723 share
and 147,723 shares, respectively (225) (486)
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Total stockholders' equity 101,024 93,499
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $128,972 $122,242
============================================================================================================
</TABLE>
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RPC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(In thousands except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
-------------------- -----------------------
1995 1994 1995 1994
- --------------------------------------------------------- -----------------------
<S> <C> <C> <C> <C>
REVENUE $35,756 $38,561 $122,552 $115,765
- ----------------------------------------------------------------------------------------
Cost of goods sold 12,162 15,703 50,108 50,298
Operating expenses 19,039 18,970 57,660 52,541
Depreciation and amortization 1,739 1,579 5,054 4,603
Interest income (551) (411) (1,620) (1,048)
- ----------------------------------------------------------------------------------------
Income before income taxes 3,367 2,720 11,350 9,371
Income tax provision 1,105 966 3,915 3,327
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NET INCOME $2,262 $1,754 $7,435 $6,044
========================================================================================
EARNINGS PER SHARE $0.15 $0.12 $0.51 $0.42
- ----------------------------------------------------------------------------------------
Average shares outstanding 14,541,331 14,436,531 14,524,258 14,436,312
- ----------------------------------------------------------------------------------------
</TABLE>
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RPC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended September 30,
---------------------------------
1995 1994
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES $12,818 $ 9,148
- -------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (10,447) (7,282)
Proceeds from sale of equipment and property 983 2,413
Sale (purchase) of marketable securities 485 (461)
Other (511) 0
- -------------------------------------------------------------------------------------------------
Net cash (used for) investing activities (9,490) (5,330)
- -------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Treasury stock issued for benefit plans 90 7
- -------------------------------------------------------------------------------------------------
Net cash provided by financing activities 90 7
- -------------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents 3,418 3,825
Cash and cash equivalents at beginning of period 15,038 13,296
- -------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $18,456 $17,121
=================================================================================================
</TABLE>
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RPC, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated financial statements included herein have been prepared
by the Registrant, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission. Footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant
to such rules and regulations. These consolidated financial statements
should be read in conjunction with the financial statements and related
notes contained in the Registrant's annual report on Form 10-K for the
fiscal year ended December 31, 1994.
In the opinion of management, the consolidated financial statements
included herein contain all adjustments necessary to present fairly the
financial position of the Registrant as of September 30, 1995, the
results of operations for the quarter and nine months then ended and
the changes in cash flows for the nine months then ended.
2. Earnings per share are computed by dividing net income by the weighted
average number of shares outstanding during the respective periods.
3. The results of operations for the quarter and the nine months ended
September 30, 1995 are not necessarily indicative of the results to be
expected for the full year.
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RPC, INC. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
THREE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1994
Revenue for the third quarter ended September 30, 1995 was $35,756,000
compared with $38,561,000 for the quarter ended September 30, 1994 and
$44,576,000 for the previous quarter ended June 30, 1995. Revenue for the
quarter ended September 30, 1995 decreased $2,805,000 or 7% from the same
period one year ago and decreased $8,820,000 or 20% from the quarter ended
June 30, 1995. The oil and gas services segment revenue of $20,428,000
increased 8% from last year's second quarter in spite of a decrease in the
average U.S. rig count and the price of natural gas. This was primarily due
to a strong performance by the service lines that are less dependent on
drilling activity. Improvements in international revenue also contributed to
the favorable results for the quarter. The oil and gas services segment's
revenue increased 9% from the quarter ended June 30, 1995. The boat
manufacturing segment revenue for the quarter ended September 30, 1995 of
$12,805,000 decreased 25% from last year's third quarter of $17,034,000 due
to an overall slowdown in the boating industry. The boat manufacturing
segment revenue decreased 45% from the quarter ended June 30, 1995 as a
result of a normal seasonal decline and the overall slowdown in the boating
industry. Boat sales for the remainder of 1995 are not anticipated to keep
pace with the record levels of the first half of the year.
Net income for the quarter ended September 30, 1995 was $2,262,000 or 15
cents per share versus net income of $1,754,000 or 12 cents per share for the
quarter ended September 30, 1994 and net income of $2,606,000 or 18 cents per
share for the quarter ended June 30, 1995. The increase in earnings from the
same period one year ago was due to the revenue increase for the oil and gas
services segment.
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RPC, INC. AND SUBSIDIARIES
ITEM 2. CONT'D
NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO NINE MONTHS ENDED SEPTEMBER
30, 1994
Revenue for the nine months ended September 30, 1995 increased 6% to
$122,552,000 compared to $115,765,000 for the nine months ended September 30,
1994. An increase of 12% occurred in the oil and gas services segment and a
1% increase occurred in the boat manufacturing segment. In the oil and gas
services segment, the revenue improvement was due to the strong performance
by the service lines that are less dependent on drilling activity. An
increase in the average sales price, offset by a decrease in the number of
boats sold caused the increase in revenue in the boat manufacturing segment
for the first nine months of 1995.
Net income for the nine months ended September 30, 1995 was $7,435,000 or 51
cents per share compared to net income of $6,044,000 or 42 cents per share
for the nine months ended September 30, 1994. The 23% increase was due to
the revenue increases for both the oil and gas services and the boat
manufacturing segments, as well as improved margins for both segments.
FINANCIAL CONDITION
The Registrant's current ratio remained strong as of September 30, 1995 with
current assets of $63,554,000 exceeding current liabilities of $24,166,000 by
a ratio of 2.6-to-1. This compares to a current ratio of 2.5-to-1 at December
31, 1994.
Capital expenditures during the first nine months of $10,447,000 included
approximately $9,998,000 spent on revenue equipment and vehicles in the oil
and gas services segment. The remainder was spent on various purchases for
the other business segments. Funding for future capital requirements will be
provided from operations.
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RPC, INC. AND SUBSIDIARIES
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed or required to be filed during
the quarter ended September 30, 1995.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RPC, INC.
/S/ RICHARD A. HUBBELL
------------------------------------------
Date: November 8, 1995 Richard A. Hubbell
President and Chief Operating Officer
/S/ DEBRA G. HERRON
------------------------------------------
Date: November 8, 1995 Debra G. Herron
Treasurer and Chief Financial Officer
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 18,456
<SECURITIES> 5,048
<RECEIVABLES> 28,266
<ALLOWANCES> 7,947
<INVENTORY> 11,438
<CURRENT-ASSETS> 63,554
<PP&E> 34,054
<DEPRECIATION> 0
<TOTAL-ASSETS> 128,972
<CURRENT-LIABILITIES> 24,166
<BONDS> 0
<COMMON> 1,461
0
0
<OTHER-SE> 99,563
<TOTAL-LIABILITY-AND-EQUITY> 128,972
<SALES> 0
<TOTAL-REVENUES> 122,552
<CGS> 50,108
<TOTAL-COSTS> 107,768
<OTHER-EXPENSES> 5,054
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 11,350
<INCOME-TAX> 3,915
<INCOME-CONTINUING> 7,435
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,435
<EPS-PRIMARY> .51
<EPS-DILUTED> .51
</TABLE>
