Newpark Resources Inc (NR) Reports Q3 2023 Earnings: Revenue Down 10%, Net Income Up 59%
Newpark Resources Inc (NYSE:NR) reported a net income of $7.7 million for Q3 2023, a 59% increase from the previous year.
Industrial Solutions segment revenue increased by 12% to $57.3 million, while Fluids Systems segment revenue decreased by 16% to $141.2 million.
The company repurchased $6 million of common equity under its share repurchase authorization, totaling $26 million repurchased year-to-date.
Newpark Resources Inc (NYSE:NR) reported a total debt of $86 million, with a net leverage of 0.7x as of September 30, 2023.
On October 31, 2023, Newpark Resources Inc (NYSE:NR) released its Q3 2023 earnings report. The company reported a net income of $7.7 million, marking a 59% increase from the previous year. Despite the increase in net income, the company's total revenue decreased by 10% to $198.5 million from $219.9 million in the same period last year.
Financial Performance
The Industrial Solutions segment reported a revenue of $57.3 million, a 12% increase from the previous year. The Fluids Systems segment, however, reported a decrease in revenue by 16% to $141.2 million. The company's adjusted EBITDA was $22.3 million, a 13% increase from the previous year, with an adjusted EBITDA margin of 11.2%, up by 230 basis points.
Matthew Lanigan, President and Chief Executive Officer of Newpark Resources, commented on the company's performance, stating,
Our team delivered strong third quarter results, while demonstrating continued execution on our multi-year business transformation strategy. Ongoing commercial growth and operational excellence initiatives across the enterprise contributed to significant year-over-year growth in net income, Adjusted EBITDA and free cash flow in the third quarter, putting us on pace for a solid full-year performance."
Balance Sheet and Liquidity
As of September 30, 2023, Newpark Resources Inc (NYSE:NR) had total cash of $27 million and available liquidity under its U.S. ABL credit facility of $68 million. The company reported a total net debt of $59 million, or 0.7x its trailing twelve-month Adjusted EBITDA as of September 30, 2023. The company also repurchased $6 million of common equity under its share repurchase authorization, totaling $26 million repurchased year-to-date.
Outlook
Despite the mixed results, the company remains optimistic about its future performance. Lanigan concluded,
We remain constructive on the significant opportunities for growth in the year ahead as we further scale our vertically integrated platform across our energy infrastructure and industrial markets."
Explore the complete 8-K earnings release (here) from Newpark Resources Inc for further details.
This article first appeared on GuruFocus.
