RPC, Inc.

Q1 2022 Earnings Conference Call


spk_0: good morning and thank you for joining us for rpc things first quarter twenty twenty two financial or a news conference call for the school will be who was that by ricardo president and c o in been polymer in chief financial officer also presence is jean landry's vice president of garb read services at this time all by this events or in a listen only mood following the press and beach and we will than that a question and answer session instructions will be provided at that time for you the few up questions i would like to advice everyone that this conference call is being recorded jim will get a slight that be reading the forward looking disclaimer
spk_1: thank you operator a good morning everyone before we begin our pay today i want to remind you that in order to talk about our company we're going to mention a few things that are not historical facts some of the statement to we made on this call could be bored looking nature the number of known and unknown risks i'd like to refer you to our press release issued day long with archie twenty twenty one ten k and other public filings filing one his wrists all of which can be found in be website at www dot r p c dot net he didn't earnings release and conference call will be referring to eat a doll which is a non get a measure of operating rpc use even die as a measure of operating on it's as it allows us to compare performance consistently of are various periods without regard to changes in capital structure were also require clues even dogs were born compliance with need to provenance under our credit sylvie i'm presently today today and our website provided reconciliation and even dog to death income the nearest gaffe an interim measure please view that disclosure if you're interested in seeing know it's completely he do not receive a press release for a reason please visit our website and or be he got that rica now now turn the call agree to our president and ceo wrinkles
spk_2: thank you again
spk_1: this quarter was marked by unexpected changes in our pcs business when began the year and a moderately improving market is healthy commodity prices encourage our customers to go back to work after the holidays in response the us recount and well completions improved moderate quick during the quarter we encountered as operational challenges resulting from many years old oil field under investment and several years of a with related supply disruptions however industries outlook changed for to in february russia's invasion of ukraine was oil and natural gas prices to groups and more importantly or the international community to immediately rethink the strategic importance of reliable hydrocarbon fuel source the during the past few months the price of oil increased to more than one hundred dollars a barrel for the first time since two thousand and fourteen our customers who responded by increasing their planned activities as it became clear higher commodity prices would endure and the appeal of the politically stable us all feel good we finished the first quarter in the beginning stages of strongest all bill service environment we've experienced in many years dollars or cfl didn't palmer will discuss or financial results in detail
spk_3: after which i will provide some closing comments like iraq
spk_1: true for the first quarter of twenty twenty two revenues increased two hundred and eighty four point six million compared to a hundred and eighty two point six million and the same quarter of that are year revenues increased a to hire customer activity levels rising and months and a larger fleet pressure pumping equipment and service operating profit for the first quarter was twenty three million compared to an operating loss of ten point five million and the same quarter of the prior year even after the first quarter was forty three million parody the dogs seven twenty eight million and the same quarter last year artillery their earnings per share or seven cents compare the five cents loss per share and the same quarter last year cost around and is during the first quarter of twenty twenty two was two hundred nine point eight million or seventy three point four percent of revenues compared to a hundred and forty six point two million or eighty point one percent of revenues during the first quarter twenty twenty one costa revenues increased primarily did it increases and expenses consistent with higher activity levels such as materials inspires expenses maintenance and repairs expenses employment costs and fuel costs in addition these calls and raised due to hire market prices for materials and supplies fuel and other raw materials costa revenues as a percentage of revenues decrease needed the labyrinth of higher revenues ever to direct employment cause improve pricing bar rpc services and a favorable job next within pressure pumping selling general and administrative expenses increase to thirty six point two million in the first quarter or twenty twenty two or three point six million on the first quarter the prior year due to increases in employment related costs selling general and administrative expenses decrease to twelve point seven percent of revenues in the first quarter twenty twenty two compared to sixteen point eight percent of revenues in the first quarter twenty one their little average of iran and as i recall said a relatively fixed or in the short term precise and amortization was nineteen point five million and the current quarter compared to seventeen point eight million and the same quarter of the bargain articles artist a segment revenues for the first quarter were two hundred and sixty six point three million and fifty four point three percent increase compared to one hundred and seventy two point six million and same quarter the bar year segment operating profit was twenty one point eight million compared to five point eight million operating loss in the first quarter of the prior year the improvements in technical services operating results were driven by higher cost mark big levels was no resulting in higher utilization of our existing equipment and some pricing and brutes our sport services said the revenues for the first quarter rating point three million and eighty three point three percent increase compared to million in the same corner and bar year
spk_3: segment operating profit
spk_1: in the first quarter was two point eight million compared to an operating loss of good point nine million in the bars or last year on a sequential basis birth order revenues increased by six point one percent ghana two hundred and eighty four point six million from two hundred and sixty eight point three million this was due to improve rising and all of our service lines as well as higher customer activity levels early in the first quarter or pressure pumping service line was impacted by customer provided sand supply issues for those customers we have assumed responsibility
spk_3: for the supplying of san and those issues have sense subsided
spk_1: we expect us to further demonstrated that you we add to these customers casa revenues during the first quarter increased by four point one percent to two hundred and eight point eight million two hundred point six million in the bar order as a percentage of revenues cost around is decreased slightly the seventy three point four percent from seventy or point eight percent in the park or as was data pricing improvements and an important job next in our disease tactical services second selling general and administrative expenses increase by twelve point eight percent to thirty six point two million on thirty two point one million and far corner and this was primarily due to employing a related costs including variable and seven compensation consistent with improved operating performance operating profit during the first quarter was twenty three nine thirty twenty one one million in the park or are either i was forty three million compared to thirty nine point million and park or our turn tackles or a segment revenues increased by eleven point nine million or four point seven percent again due to customer are cut higher customer activity levels in many of our service lines and pricing improvements tactical serves a segment generated between one point eight million profit operating profit compared to twenty point five million operating profit and park or our support services saying that revenues increased by thirty two point four percent to eighteen point three million sport services operating profits to point eight million compared to an operating loss three hundred and seventy three thousand in the park or during the first or of twenty twenty two harpies they continue to operate a horizontal pressure putting bleach this was unchanged from the british score first order of twenty twenty capital expenditures were nineteen point one million would currently estimated four year twenty twenty capital expenditures to the approximately i'd heard and fifty million dollars is is roughly split between cat was maintenance and board or existing equipment and selected growth operating in addition rpc will make twenty four million of finance lease payments or pressure pumping fleet acquired and twenty twenty one this includes the twenty million pound timer and kids were yes twenty twenty two
spk_3: that kind of aggregate a wreck for some closure minutes
spk_1: have been think it is i mentioned earlier on anticipated geopolitical events have changed our environment tremendously over the past two months we believe their impact will allow us to plan our operations and investments with more certainly in generate improved financial results as the cycle and both however our approach stores capital expenditures remains discipline we recognize that some older pressure bumping equipment is approaching the end of it's productive life and anticipate any new fleet will ultimately replace an older athletes in this improved environment we're focusing on working capital management making an appropriate investments in the business to maintain our capacity and capturing cash flow improve it's rpc has a history of returning capital to shareholders a tradition we anticipate resuming in the near future thanks for joining us this morning and at this time we're happy to the dressing questions the to make it
spk_0: only one if you would like to ask a question you will need to practice i whining i found a on to italian class change as fast accounts we stand by while the compiler king any roster your first question comes from the line of jangling our funding your energy your lights open
spk_4: the morning gentlemen thanks for now
spk_5: ah doctor john
spk_3: the couple quick ones for new and i mentioned eight for an average one it's not the be a circle going on in the summer months
spk_1: jada goddess ban lot in common out in another school that i think you are asking how easy that lady changing are progressing over the summer
spk_3: yeah just any color would be helpful
spk_1: yeah yeah
spk_6: well again currently have eight are we we are are working to put another existing fleet out and we expect that could happen as soon as the second quarter of the maybe more likely early early bird or and the that's that's all of the existing land right now that we
spk_1: and we have that it a point
spk_7: i encountered any catholic church to like it comes to you might declare that and
spk_1: my daughter
spk_3: ah good question and answer variety a small items into it as a young it's not any sort of it as an accomplice any particular expansion would then pressure bumbling
spk_1: yeah sister and a view miscellaneous of sir are on the fringes now and ah i would expect at that delivery of those particular items to have any immediate significant impact right we we certainly see our results improving
spk_4: in in building with the other trans of you know higher prices and more utilization and things like that so or to grab a good question appropriate question but i don't see anything are that's really noteworthy leader that to point out and app a dramatic effect on ours
spk_8: or not they are but nana hundred over
spk_0: thank you i'm becky again everyone to as a question just as is are lying on a telephone keep and
spk_1: percentage day no questions over the phone please continue okay well john you've gone and for your question i'm this is jim landers my closing remarkable be to give the revenue percentages of our major service lines to each quarter were asked for that someone ago hadn't given the so for the first quarter twenty twenty two as a percentage of rpc consolidated revenue i'm on here are the presenters ready for a major is lines pressure pumping was forty two point one percent of revenue on are treating service our services service line was twenty eight point five percent of revenue coil to me was nine point four percent of revenue
spk_9: nitrogen was two point seven percent revenue rental tools which is in our support services as segment was or point six percent consolidate our pc revenues and snubbing was two point two percent it again we appreciate chat people called in to listen we have everybody is a good day
spk_0: i talked isn't he's concludes studies find friends call in peace nearly mine for reminded that are for the replete you may be see it w w w dot rpc back next week in two hours following completion of the car
spk_2: thinking haven't raining

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