<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 MARCH 31, 1995
/ / Transition report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
Commission File No. 1-8726
RPC ENERGY SERVICES, 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 March 31, 1995, RPC Energy Services, Inc. had 14,541,331 shares of common
stock outstanding (excluding 68,723 treasury shares).
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RPC ENERGY SERVICES, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 1995 AND DECEMBER 31, 1994
(In thousands except stock information)
<TABLE>
<CAPTION>
MARCH 31, December 31,
1995 1994
(UNAUDITED) (Audited)
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<S> <C> <C>
ASSETS
Cash and cash equivalents $14,417 $15,038
Marketable securities 8,091 6,885
Accounts receivable, net of allowance for doubtful
accounts of $6,446 and $6,300, respectively 17,820 20,577
Inventories, at lower of cost or market 13,559 12,342
Deferred income taxes 7,008 6,811
Prepaid expenses and other current assets 1,266 1,474
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Current assets 62,161 63,127
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Equipment and property, net 30,372 28,837
Marketable securities 22,155 19,291
Goodwill, net 8,408 8,098
Deferred income taxes 950 825
Other assets 2,017 2,064
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TOTAL ASSETS $126,063 $122,242
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $4,860 $5,387
Accrued payroll and related expenses 3,357 3,441
Accrued insurance expenses 5,376 5,227
Accrued state, local and other taxes 2,719 2,567
Federal income taxes payable 1,493 198
Accrued discounts 1,048 824
Other accrued expenses 7,492 7,656
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Current liabilities 26,345 25,300
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Long-term accrued insurance expenses 3,594 3,443
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Total liabilities 29,939 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 60,289 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 96,124 93,499
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $126,063 $122,242
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</TABLE>
<PAGE>
RPC ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND
(In thousands except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
--------------------------------------
1995 1994
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<S> <C> <C>
REVENUE $42,220 $37,333
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Cost of goods sold 17,277 16,361
Operating expenses 19,886 16,439
Depreciation and amortization 1,617 1,455
Interest income (522) (252)
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Income before income taxes 3,962 3,330
Income tax provision 1,395 1,182
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NET INCOME $2,567 $2,148
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EARNINGS PER SHARE $0.18 $0.15
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Average shares outstanding 14,489,542 14,435,872
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</TABLE>
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RPC ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
-------------------------------
1995 1994
- ------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES $6,729 $1,863
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CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of equipment and property 430 1,953
Capital expenditures (3,287) (1,598)
(Purchase) of marketable securities (4,070) (128)
Other (481) 0
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Net cash provided by (used for) investing activities (7,408) 227
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CASH FLOWS FROM FINANCING ACTIVITIES
Treasury stock issued for benefit plans 58 7
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Net cash provided by financing activities 58 7
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Net increase (decrease) in cash and cash equivalents (621) 2,097
Cash and cash equivalents at beginning of period 15,038 13,296
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Cash and cash equivalents at end of period $14,417 $15,393
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</TABLE>
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RPC ENERGY SERVICES, 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 March 31, 1995, the results of
operations and the changes in cash flows for the three 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 ended March 31, 1995 are not
necessarily indicative of the results to be expected for the full year.
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RPC ENERGY SERVICES, INC. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
THREE MONTHS ENDED MARCH 31, 1995 COMPARED TO THREE MONTHS ENDED MARCH 31, 1994
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Revenue for the first quarter ended March 31, 1995 was $42,220,000 compared with
$37,333,000 for the quarter ended March 31, 1994 and $40,000,000 for the
previous quarter ended December 31, 1994. Revenue for the quarter ended March
31, 1995 increased $4,887,000 or 13% from the same period one year ago and
increased $2,220,000 or 6% from the quarter ended December 31, 1994. The oil
and gas services segment revenue of $20,069,000 increased 18% from last year's
first quarter in spite of a decrease in the average U.S. rig count and the price
of natural gas. This was because of improvements in some service lines which
are less dependent on drilling activity. This increase also resulted from an
increase in international revenue. The oil and gas services segment's revenue
was virtually unchanged from the quarter ended December 31, 1994. The boat
manufacturing segment revenue for the quarter ended March 31, 1995 of
$19,379,000 increased 10% from last year's first quarter of $17,591,000 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 12% from the quarter ended December 31,
1994 as a result of a normal seasonal upturn.
Net income for the quarter ended March 31, 1995 was $2,567,000 or 18 cents per
share versus net income of $2,148,000 or 15 cents per share for the quarter
ended March 31, 1994 and net income of $2,734,000 or 19 cents per share for the
quarter ended December 31, 1994. 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 ENERGY SERVICES, INC. AND SUBSIDIARIES
FINANCIAL CONDITION
- -------------------
The Registrant's current ratio remained strong as of March 31, 1995 with current
assets of $62,161,000 exceeding current liabilities of $26,345,000 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 three months of $3,287,000 included
approximately $3,138,000 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 ENERGY SERVICES, INC. AND SUBSIDIARIES
PART II. OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security Holders
(a) The Annual Meeting of Shareholders was held on April 25, 1995.
<TABLE>
<CAPTION>
(c) 1. Performance-Based Compensation Agreements:
<S> <C>
Voting For Shares 11,643,209
Voting Against Shares 416,037
Abstain From Voting Shares 12,791
Broker Non-Vote Shares 419,836
------------
Total 12,491,873
2. Amend the Certificate of Incorporation to change the registrant's name to RPC, Inc.
Voting For Shares 12,485,133
Voting Against Shares 2,542
Abstain From Voting Shares 4,198
--------------
Total 12,491,873
</TABLE>
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 March 31, 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 ENERGY SERVICES, INC.
/s/ Richard A. Hubbell
----------------------
Date: May 10, 1995 Richard A. Hubbell
President and Chief Operating Officer
/s/ Debra G. Herron
-------------------
Date: May 10, 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 14,417
<SECURITIES> 8,091
<RECEIVABLES> 24,266
<ALLOWANCES> 6,446
<INVENTORY> 13,559
<CURRENT-ASSETS> 62,161
<PP&E> 30,372
<DEPRECIATION> 0
<TOTAL-ASSETS> 126,063
<CURRENT-LIABILITIES> 26,345
<BONDS> 0
<COMMON> 1,461
0
0
<OTHER-SE> 94,663
<TOTAL-LIABILITY-AND-EQUITY> 126,063
<SALES> 0
<TOTAL-REVENUES> 42,220
<CGS> 17,277
<TOTAL-COSTS> 37,163
<OTHER-EXPENSES> 1,617
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,962
<INCOME-TAX> 1,395
<INCOME-CONTINUING> 2,567
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,567
<EPS-PRIMARY> .18
<EPS-DILUTED> .18
</TABLE>
