<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 JUNE 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
FORMERLY RPC ENERGY SERVICES, INC.
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 June 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 JUNE 30, 1995 AND DECEMBER 31, 1994
(In thousands except stock information)
<TABLE>
<CAPTION>
JUNE 30, December 31,
1995 1994
(UNAUDITED) (Audited)
--------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 13,917 $ 15,038
Marketable securities 10,112 6,885
Accounts receivable, net of allowance for
doubtful accounts of $7,188 and $6,300,
respectively 18,845 20,577
Inventories, at lower of cost or market 10,794 12,342
Deferred income taxes 7,166 6,811
Prepaid expenses and other current assets 1,072 1,474
--------------------------------------------------------------------------------
Current assets 61,906 63,127
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Equipment and property, net 31,776 28,837
Marketable securities 22,927 19,291
Goodwill, net 8,229 8,098
Deferred income taxes 915 825
Other assets 2,003 2,064
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TOTAL ASSETS $127,756 $122,242
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--------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 4,608 $ 5,387
Accrued payroll and related expenses 3,324 3,441
Accrued insurance expenses 5,413 5,227
Accrued state, local and other taxes 2,642 2,567
Federal income taxes payable 141 198
Accrued discounts 1,376 824
Other accrued expenses 7,802 7,656
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Current liabilities 25,306 25,300
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Long-term accrued insurance expenses 3,704 3,443
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Total liabilities 29,010 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 62,911 58,296
Common stock in treasury, at cost, 68,723 shares
and 147,723 shares, respectively (225) (486)
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Total stockholders' equity 98,746 93,499
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $127,756 $122,242
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</TABLE>
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RPC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(In thousands except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
------------------------- ------------------------
1995 1994 1995 1994
------------------------------------------------------ ------------------------
<S> <C> <C> <C> <C>
REVENUE $44,576 $39,871 $86,796 $77,204
---------------------------------------------------------------------------------
Cost of goods sold 20,669 18,234 37,946 34,595
Operating expenses 18,735 17,132 38,621 33,571
Depreciation and amortization 1,698 1,569 3,315 3,024
Interest income (547) (385) (1,069) (637)
--------------------------------------------------------------------------------
Income before income taxes 4,021 3,321 7,983 6,651
Income tax provision 1,415 1,179 2,810 2,361
--------------------------------------------------------------------------------
NET INCOME $ 2,606 $ 2,142 $ 5,173 $ 4,290
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EARNINGS PER SHARE $ 0.18 $ 0.15 $ 0.36 $ 0.30
--------------------------------------------------------------------------------
Average shares outstanding 14,541,331 14,436,531 14,515,580 14,436,201
--------------------------------------------------------------------------------
</TABLE>
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<PAGE>
RPC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six months ended June 30,
------------------------------------
1995 1994
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES $11,866 $7,247
---------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (6,397) (2,839)
Proceeds from sale of equipment and property 680 2,117
Sale (purchase) of marketable securities (6,863) 3,834
Other (481) 0
---------------------------------------------------------------------------------------------------------
Net cash provided by (used for) investing activities (13,061) 3,112
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CASH FLOWS FROM FINANCING ACTIVITIES
Treasury stock issued for benefit plans 74 7
---------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 74 7
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Net increase (decrease) in cash and cash equivalents (1,121) 10,366
Cash and cash equivalents at beginning of period 15,038 13,296
---------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $13,917 $23,662
---------------------------------------------------------------------------------------------------------
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</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 June 30, 1995, the results of
operations for the quarter and six months then ended and the changes in
cash flows for the six 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 six months ended June 30,
1995 are not necessarily indicative of the results to be expected for the
full year.
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<PAGE>
RPC, INC. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
THREE MONTHS ENDED JUNE 30, 1995 COMPARED TO THREE MONTHS ENDED JUNE 30, 1994
Revenue for the second quarter ended June 30, 1995 was $44,576,000 compared with
$39,871,000 for the quarter ended June 30, 1994 and $42,220,000 for the previous
quarter ended March 31, 1995. Revenue for the quarter ended June 30, 1995
increased $4,705,000 or 12% from the same period one year ago and increased
$2,356,000 or 6% from the quarter ended March 31, 1995. The oil and gas
services segment revenue of $18,779,000 increased 9% 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 because of a strong performance by the service lines
which are less dependent on drilling activity. The oil and gas services
segment's revenue decreased 6% from the quarter ended March 31, 1995. The boat
manufacturing segment revenue for the quarter ended June 30, 1995 of $23,418,000
increased 16% from last year's second quarter of $20,224,000 due to an increase
in average sales price. This was caused by sales of the larger models in all
boat lines combined with the impact of price increases. The boat manufacturing
segment revenue increased 21% from the quarter ended March 31, 1995 as a result
of a normal seasonal upturn. Boat sales for the second half 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 June 30, 1995 was $2,606,000 or 18 cents per
share versus net income of $2,142,000 or 15 cents per share for the quarter
ended June 30, 1994 and net income of $2,567,000 or 18 cents per share for the
quarter ended March 31, 1995. The increase in earnings from the same period one
year ago 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.
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RPC, INC. AND SUBSIDIARIES
ITEM 2. CONT'D
SIX MONTHS ENDED JUNE 30, 1995 COMPARED TO SIX MONTHS ENDED
JUNE 30, 1994
Revenue for the six months ended June 30, 1995 increased 12% to $86,796,000
compared to $77,204,000 for the six months ended June 30, 1994. An increase of
14% occurred in the oil and gas services segment and a 13% 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, offset by declining oil drilling
revenue. 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 six months of 1995.
Net income for the six months ended June 30, 1995 was $5,173,000 or 36 cents per
share compared to net income of $4,290,000 or 30 cents per share for the six
months ended June 30, 1994. The 21% 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 June 30, 1995 with current
assets of $61,906,000 exceeding current liabilities of $25,306,000 by a ratio of
2.4-to-1. This compares to a current ratio of 2.5-to-1 at December 31, 1994.
Capital expenditures during the first six months of $6,397,000 included
approximately $6,013,000 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 June 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: August 8, 1995 Richard A. Hubbell
President and Chief Operating Officer
/s/ Debra G. Herron
--------------------
Date: August 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 13,917
<SECURITIES> 10,112
<RECEIVABLES> 26,033
<ALLOWANCES> 7,188
<INVENTORY> 10,794
<CURRENT-ASSETS> 61,906
<PP&E> 31,776
<DEPRECIATION> 0
<TOTAL-ASSETS> 127,756
<CURRENT-LIABILITIES> 25,306
<BONDS> 0
<COMMON> 1,461
0
0
<OTHER-SE> 97,285
<TOTAL-LIABILITY-AND-EQUITY> 127,756
<SALES> 0
<TOTAL-REVENUES> 86,796
<CGS> 37,946
<TOTAL-COSTS> 76,567
<OTHER-EXPENSES> 3,315
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,983
<INCOME-TAX> 2,810
<INCOME-CONTINUING> 5,173
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,173
<EPS-PRIMARY> .36
<EPS-DILUTED> .36
</TABLE>
