<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, 1997
/ / 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, 1997, RPC, Inc. had 14,701,038 shares of common stock
outstanding (excluding 78,253 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, 1997, AND DECEMBER 31, 1996
(In thousands except share information)
<TABLE>
<CAPTION>
MARCH 31, December 31,
1997 1996
(UNAUDITED) (Audited)
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<S> <C> <C>
ASSETS
Cash and cash equivalents $15,669 $13,124
Marketable securities 13,842 8,149
Accounts receivable, net of allowance for doubtful
accounts of $6,251 and $7,058, respectively 27,412 24,156
Inventories, at lower of cost or market 15,464 15,427
Deferred income taxes 6,876 7,623
Prepaid expenses and other current assets 1,957 1,663
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Current assets 81,220 70,142
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Equipment and property, net 50,279 47,791
Marketable securities 18,966 25,071
Goodwill, net 7,906 8,105
Deferred income taxes 208 86
Other assets 1,199 1,605
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TOTAL ASSETS $159,778 $152,800
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $6,462 $6,756
Accrued payroll and related expenses 5,292 4,541
Accrued insurance expenses 6,359 6,679
Accrued state, local and other taxes 3,569 3,211
Federal income taxes payable 1,589 88
Accrued discounts 1,005 786
Other accrued expenses 9,335 8,889
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Current liabilities 33,611 30,950
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Long-term accrued insurance expenses 3,606 3,551
Long-term debt 300 500
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Total liabilities 37,517 35,001
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Commitments and contingencies
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Common stock 1,478 1,471
Capital in excess of par value 35,528 35,176
Earnings retained 85,708 81,555
Common stock in treasury, at cost, 78,253 shares
and 74,953 shares, respectively (453) (403)
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Total stockholders' equity 122,261 117,799
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $159,778 $152,800
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</TABLE>
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RPC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1997, AND 1996
(In thousands except share and per share data)
(Unaudited)
Three months ended March 31,
----------------------------
1997 1996
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REVENUE $58,203 $49,717
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Cost of goods sold 22,414 20,830
Operating expenses 26,946 22,068
Depreciation and amortization 2,778 2,032
Interest income (508) (438)
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Income before income taxes 6,573 5,225
Income tax provision 2,266 1,775
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NET INCOME $4,307 $3,450
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EARNINGS PER SHARE $0.29 $0.24
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Average shares outstanding 14,663,800 14,544,688
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RPC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997, and 1996
(In thousands)
(Unaudited)
Three months ended March 31,
----------------------------
1997 1996
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CASH FLOWS FROM OPERATING ACTIVITIES $6,677 $3,767
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CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (5,240) (5,530)
Proceeds from sale of equipment and property 683 754
Net sale (purchase) of marketable securities 412 (270)
Other (120) (447)
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Net cash (used for) investing activities (4,265) (5,493)
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options 133 0
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Net cash provided by financing activities 133 0
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Net increase (decrease) in cash and cash equivalents 2,545 (1,726)
Cash and cash equivalents at beginning of period 13,124 18,126
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Cash and cash equivalents at end of period $15,669 $16,400
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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, 1996.
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, 1997, 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, 1997 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, 1997 COMPARED TO THREE MONTHS ENDED MARCH 31, 1996
Revenue for the first quarter ended March 31, 1997 was $58,203,000 compared with
$49,717,000 for the quarter ended March 31, 1996 and $53,970,000 for the
previous quarter ended December 31, 1996. Revenue for the quarter ended
March 31, 1997 increased $8,486,000 or 17% from the same period one year ago and
increased $4,233,000 or 8% from the quarter ended December 31, 1996. The oil
and gas services segment revenue of $29,974,000 increased 32% from last year's
first quarter primarily due to a higher level of oil and gas exploration and
production activities and expansion of international operations. The oil and
gas services segment revenue decreased 1% from the quarter ended December 31,
1996. The power boat manufacturing segment revenue for the quarter ended
March 31, 1997 of $24,935,000 increased 8% from last year's first quarter of
$23,165,000 as the result, we believe, of an increase in Chaparral's market
share. The power boat manufacturing segment revenue increased 21% from the
quarter ended December 31, 1996 as a result of a normal seasonal upturn.
Net income for the quarter ended March 31, 1997 was $4,307,000 or 29 cents per
share compared to net income of $3,450,000 or 24 cents per share for the quarter
ended March 31, 1996 and net income of $3,831,000 or 26 cents per share for the
quarter ended December 31, 1996. 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, 1997 with current
assets of $81,220,000 exceeding current liabilities of $33,611,000 by a ratio of
2.4-to-1. This compares to a current ratio of 2.3-to-1 at December 31, 1996.
Capital expenditures during the first three months of $5,240,000 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 22, 1997.
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, 1997.
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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: April 25, 1997 Richard A. Hubbell
President and Chief Operating Officer
/s/ Ben M. Palmer
----------------------
Date: April 25, 1997 Ben M. Palmer
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-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 15,669
<SECURITIES> 13,842
<RECEIVABLES> 33,663
<ALLOWANCES> 6,251
<INVENTORY> 15,464
<CURRENT-ASSETS> 81,220
<PP&E> 197,237
<DEPRECIATION> 146,958
<TOTAL-ASSETS> 159,778
<CURRENT-LIABILITIES> 33,611
<BONDS> 300
0
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<OTHER-SE> 120,783
<TOTAL-LIABILITY-AND-EQUITY> 159,778
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<TOTAL-REVENUES> 58,203
<CGS> 22,414
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<INCOME-TAX> 2,266
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