Newpark Resources Inc (NR) saw its loss narrow to $0.06 million in the quarter ended compared with $83.10 million, a year ago. On an adjusted basis, net loss for the quarter was $0.06 million, when compared with $83.10 million in the last year period. Revenue during the quarter dropped 8.97 percent to $137.08 million from $150.59 million in the previous year period. Gross margin for the quarter expanded 368 basis points over the previous year period to 9.42 percent. Operating margin for the quarter stood at negative 5.98 percent as compared to a negative 62.61 percent for the previous year period.
Operating loss for the quarter was $8.20 million, compared with an operating loss of $94.28 million in the previous year period.
Paul Howes, Newpark’s president and chief executive officer, stated, “Building on the improvements that began in the third quarter, we’ve seen the momentum continue through the fourth quarter, particularly in North America, where revenues have steadily strengthened over the past six months. Capitalizing on our strong market share position, our North American fluids revenues increased 49% sequentially, significantly outperforming the overall market. Despite our very strong top line result, the impact of revenue growth on operating income was somewhat muted by a softer sales mix, along with the timing of certain operating expenses. Internationally, fluids revenues increased 6% sequentially, driven by improvements in our EMEA region. As they have throughout 2016, the key NOC contracts in Algeria and Kuwait have been a stabilizing force in a very difficult market.
Operating cash flow drops significantly
Newpark Resources Inc has generated cash of $11.10 million from operating activities during the year, down 90.87 percent or $110.42 million, when compared with the last year. The company has spent $28.26 million cash to meet investing activities during the year as against cash outgo of $84.37 million in the last year. It has incurred net capital expenditure of $33.90 million on net basis during the year, down 49.31 percent or $32.98 million from year ago.
The company has spent $0.65 million cash to carry out financing activities during the year as against cash outgo of $6.73 million in the last year period.
Cash and cash equivalents stood at $87.88 million as on Dec. 31, 2016, down 17.98 percent or $19.26 million from $107.14 million on Dec. 31, 2015.
Working capital drops significantly
Newpark Resources Inc has witnessed a decline in the working capital over the last year. It stood at $283.14 million as at Dec. 31, 2016, down 25.68 percent or $97.81 million from $380.95 million on Dec. 31, 2015. Current ratio was at 2.57 as on Dec. 31, 2016, down from 4.04 on Dec. 31, 2015.
Debt comes down
Newpark Resources Inc has recorded a decline in total debt over the last one year. It stood at $156.27 million as on Dec. 31, 2016, down 12.50 percent or $22.32 million from $178.59 million on Dec. 31, 2015. Total debt was 19.58 percent of total assets as on Dec. 31, 2016, compared with 21.04 percent on Dec. 31, 2015. Debt to equity ratio was at 0.31 as on Dec. 31, 2016, down from 0.34 as on Dec. 31, 2015.
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