<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, 1996
/ / 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 March 31, 1996, RPC, Inc. had 14,548,213 shares of common stock
outstanding (excluding 61,841 treasury shares).
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RPC, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 1996 AND DECEMBER 31, 1995
(In thousands except stock information)
<TABLE>
<CAPTION>
MARCH 31, December 31,
1996 1995
(UNAUDITED) (Audited)
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<S> <C> <C>
ASSETS
Cash and cash equivalents $16,400 $18,126
Marketable securities 4,082 4,468
Accounts receivable, net of allowance for doubtful
accounts of $4,576 and $4,205, respectively 25,602 20,802
Inventories, at lower of cost or market 14,751 14,445
Deferred income taxes 7,494 7,241
Prepaid expenses and other current assets 1,831 1,848
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Current assets 70,160 66,930
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Equipment and property, net 39,638 36,225
Marketable securities 19,936 19,280
Goodwill, net 8,693 7,900
Deferred income taxes 491 714
Other assets 1,443 1,607
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TOTAL ASSETS $140,361 $132,656
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $5,943 $5,035
Accrued payroll and related expenses 4,107 3,899
Accrued insurance expenses 5,326 5,039
Accrued state, local and other taxes 2,730 2,315
Federal income taxes payable 1,736 38
Accrued discounts 948 635
Other accrued expenses 7,927 8,026
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Current liabilities 28,717 24,987
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Long-term accrued insurance expenses 3,271 3,308
Long-term debt 546 0
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Total liabilities 32,534 28,295
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Commitments and contingencies
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Common stock 1,461 1,461
Capital in excess of par value 34,577 34,599
Earnings retained 71,992 68,526
Common stock in treasury, at cost, 61,841 shares
and 68,723 shares, respectively (203) (225)
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Total stockholders' equity 107,827 104,361
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $140,361 $132,656
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</TABLE>
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RPC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(In thousands except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
----------------------------
1996 1995
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<S> <C> <C>
REVENUE $49,717 $42,220
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Cost of goods sold 20,830 17,277
Operating expenses 22,068 19,886
Depreciation and amortization 2,032 1,617
Interest income (438) (522)
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Income before income taxes 5,225 3,962
Income tax provision 1,775 1,395
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NET INCOME $3,450 $2,567
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EARNINGS PER SHARE $0.24 $0.18
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Average shares outstanding 14,544,688 14,489,542
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</TABLE>
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RPC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 and 1995
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
----------------------------
1996 1995
- ------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES $3,767 $6,729
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CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (5,530) (3,287)
Proceeds from sale of equipment and property 754 430
Net (purchase) of marketable securities (270) (4,070)
Other (447) (481)
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Net cash (used for) investing activities (5,493) (7,408)
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CASH FLOWS FROM FINANCING ACTIVITIES
Cash received upon excercise of stock options 0 58
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Net cash provided by financing activities 0 58
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Net increase in cash and cash equivalents (1,726) (621)
Cash and cash equivalents at beginning of period 18,126 15,038
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Cash and cash equivalents at end of period $16,400 $14,417
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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, 1995.
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, 1996, 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, 1996 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 MARCH 31, 1996 COMPARED TO THREE MONTHS ENDED MARCH 31, 1995
Revenue for the first quarter ended March 31, 1996 was $49,717,000 compared
with $42,220,000 for the quarter ended March 31, 1995 and $38,827,000 for the
previous quarter ended December 31, 1995. Revenue for the quarter ended March
31, 1996 increased $7,497,000 or 18% from the same period one year ago and
increased $10,890,000 or 28% from the quarter ended December 31, 1995. The
oil and gas services segment revenue of $22,727,000 increased 13% from last
year's first quarter primarily due to a significant increase in the price of
natural gas in the first quarter of 1996 compared to the first quarter of
1995. An unusually severe winter throughout the United States had a favorable
impact on this industry. The oil and gas services segment revenue increased
10% from the quarter ended December 31, 1995. The boat manufacturing segment
revenue for the quarter ended March 31, 1996 of $23,165,000 increased 20% from
last year's first quarter of $19,379,000 as the result of a strong trend in
the boating industry combined with an increase in Chaparral's market share.
The boat manufacturing segment revenue increased 58% from the quarter ended
December 31, 1995 as a result of a normal seasonal upturn, combined with the
industry trend and Chaparral's increasing market share.
Net income for the quarter ended March 31, 1996 was $3,450,000 or 24 cents per
share compared to net income of $2,567,000 or 18 cents per share for the
quarter ended March 31, 1995 and net income of $3,320,000 or 23 cents per
share for the quarter ended December 31, 1995. The increase in earnings from
the same period one year ago was due to the revenue increase for both business
segments as well as improved margins for the oil and gas services segment.
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RPC, INC. AND SUBSIDIARIES
ITEM 2. CONT'D
FINANCIAL CONDITION
The Registrant's current ratio remained strong as of March 31, 1996 with
current assets of $70,160,000 exceeding current liabilities of $28,717,000 by
a ratio of 2.4-to-1. This compares to a current ratio of 2.7-to-1 at
December 31, 1995.
Capital expenditures during the first three months of $5,530,000 were
primarily for revenue-producing equipment 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 4. Submission of Matters to a Vote of Security Holders
(a) The Annual Meeting of Shareholders was held on April 23, 1996.
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, 1996.
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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.
Date: May 13, 1996 /s/ Richard A. Hubbell
---------------------------------------
Richard A. Hubbell
President and Chief Operating Officer
Date: May 13, 1996 /s/ Debra G. Herron
---------------------------------------
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-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 16,400
<SECURITIES> 4,082
<RECEIVABLES> 30,178
<ALLOWANCES> 4,576
<INVENTORY> 14,751
<CURRENT-ASSETS> 70,160
<PP&E> 39,638
<DEPRECIATION> 0
<TOTAL-ASSETS> 140,361
<CURRENT-LIABILITIES> 28,717
<BONDS> 546
0
0
<COMMON> 1,461
<OTHER-SE> 106,366
<TOTAL-LIABILITY-AND-EQUITY> 140,361
<SALES> 0
<TOTAL-REVENUES> 49,717
<CGS> 20,830
<TOTAL-COSTS> 42,898
<OTHER-EXPENSES> 2,032
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<INCOME-PRETAX> 5,225
<INCOME-TAX> 1,775
<INCOME-CONTINUING> 3,450
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<NET-INCOME> 3,450
<EPS-PRIMARY> .24
<EPS-DILUTED> .24
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