Exhibit 99.1
Newpark Resources, Inc.
Pro forma Condensed Consolidated Balance Sheet
September 30, 2008
(Unaudited)
Pro forma Condensed Consolidated Balance Sheet
September 30, 2008
(Unaudited)
(In thousands) | Historical | Adjustments (1) | Pro Forma | |||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 10,888 | $ | 28 | $ | 10,916 | ||||||
Receivables, net | 186,628 | 10,729 | 197,357 | |||||||||
Inventories | 121,226 | 116 | 121,342 | |||||||||
Deferred tax asset | 23,359 | 44 | 23,403 | |||||||||
Prepaid expenses and other current assets | 13,586 | 270 | 13,856 | |||||||||
Assets of discontinued operations | 80,556 | (80,249 | ) | 307 | ||||||||
Total current assets | 436,243 | (69,062 | ) | 367,181 | ||||||||
Property, plant and equipment, net | 165,183 | 65,316 | 230,499 | |||||||||
Goodwill | 61,913 | — | 61,913 | |||||||||
Deferred tax asset, net | 383 | — | 383 | |||||||||
Other intangible assets, net | 16,425 | — | 16,425 | |||||||||
Other assets | 4,471 | 3,746 | 8,217 | |||||||||
Total assets | $ | 684,618 | $ | — | $ | 684,618 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Foreign bank lines of credit | $ | 9,234 | $ | — | $ | 9,234 | ||||||
Current maturities of long-term debt | 10,397 | — | 10,397 | |||||||||
Accounts payable | 71,269 | 6,471 | 77,740 | |||||||||
Accrued liabilities | 31,787 | 1,614 | 33,401 | |||||||||
Liabilities of discontinued operations | 14,022 | (13,495 | ) | 527 | ||||||||
Total current liabilities | 136,709 | (5,410 | ) | 131,299 | ||||||||
Long-term debt, less current portion | 153,635 | — | 153,635 | |||||||||
Deferred tax liability | 10,977 | 4,417 | 15,394 | |||||||||
Other noncurrent liabilities | 3,697 | 993 | 4,690 | |||||||||
Total liabilities | 305,018 | — | 305,018 | |||||||||
Common stock | 910 | — | 910 | |||||||||
Paid-in capital | 455,856 | — | 455,856 | |||||||||
Accumulated other comprehensive income | 10,701 | — | 10,701 | |||||||||
Retained deficit | (72,774 | ) | — | (72,774 | ) | |||||||
Less treasury stock, at cost | (15,093 | ) | — | (15,093 | ) | |||||||
Total stockholders’ equity | 379,600 | — | 379,600 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 684,618 | $ | — | $ | 684,618 | ||||||
Newpark Resources, Inc.
Pro forma Condensed Consolidated Balance Sheet
December 31, 2007
(Unaudited)
Pro forma Condensed Consolidated Balance Sheet
December 31, 2007
(Unaudited)
(In thousands) | Historical | Adjustments (1) | Pro Forma | |||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 5,741 | $ | — | $ | 5,741 | ||||||
Receivables, net | 141,949 | 9,227 | 151,176 | |||||||||
Inventories | 120,202 | 124 | 120,326 | |||||||||
Deferred tax asset | 28,439 | 45 | 28,484 | |||||||||
Prepaid expenses and other current assets | 12,131 | 481 | 12,612 | |||||||||
Assets of discontinued operations | 86,628 | (80,602 | ) | 6,026 | ||||||||
Total current assets | 395,090 | (70,725 | ) | 324,365 | ||||||||
Property, plant and equipment, net | 159,094 | 68,669 | 227,763 | |||||||||
Goodwill | 62,616 | — | 62,616 | |||||||||
Deferred tax asset, net | 408 | — | 408 | |||||||||
Other intangible assets, net | 18,474 | — | 18,474 | |||||||||
Other assets | 6,097 | 3,770 | 9,867 | |||||||||
Total assets | $ | 641,779 | $ | 1,714 | $ | 643,493 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Foreign bank lines of credit | $ | 7,297 | $ | — | $ | 7,297 | ||||||
Current maturities of long-term debt | 11,565 | — | 11,565 | |||||||||
Accounts payable | 62,505 | 5,604 | 68,109 | |||||||||
Accrued liabilities | 20,367 | 1,193 | 21,560 | |||||||||
Liabilities of discontinued operations | 10,456 | (9,512 | ) | 944 | ||||||||
Total current liabilities | 112,190 | (2,715 | ) | 109,475 | ||||||||
Long-term debt, less current portion | 158,616 | — | 158,616 | |||||||||
Deferred tax liability | 5,923 | 4,417 | 10,340 | |||||||||
Other noncurrent liabilities | 4,386 | 12 | 4,398 | |||||||||
Total liabilities | 281,115 | 1,714 | 282,829 | |||||||||
Common stock | 902 | — | 902 | |||||||||
Paid-in capital | 450,319 | — | 450,319 | |||||||||
Accumulated other comprehensive income | 13,988 | — | 13,988 | |||||||||
Retained deficit | (104,545 | ) | — | (104,545 | ) | |||||||
Total stockholders’ equity | 360,664 | — | 360,664 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 641,779 | $ | 1,714 | $ | 643,493 | ||||||
Newpark Resources, Inc.
Pro forma Condensed Consolidated Balance Sheet
December 31, 2006
(Unaudited)
Pro forma Condensed Consolidated Balance Sheet
December 31, 2006
(Unaudited)
(In thousands) | Historical | Adjustments (1) | Pro Forma | |||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 12,736 | $ | 17 | $ | 12,753 | ||||||
Receivables, net | 141,790 | 10,368 | 152,158 | |||||||||
Inventories | 107,778 | 122 | 107,900 | |||||||||
Deferred tax asset | 23,001 | (46 | ) | 22,955 | ||||||||
Prepaid expenses and other current assets | 12,176 | 500 | 12,676 | |||||||||
Assets of discontinued operations | 19,880 | (10,961 | ) | 8,919 | ||||||||
Total current assets | 317,361 | — | 317,361 | |||||||||
Property, plant and equipment, net | 152,207 | 67,881 | 220,088 | |||||||||
Goodwill | 54,624 | — | 54,624 | |||||||||
Deferred tax asset, net | 7,096 | (2,358 | ) | 4,738 | ||||||||
Other intangible assets, net | 8,236 | 3,372 | 11,608 | |||||||||
Other assets | 7,440 | 437 | 7,877 | |||||||||
Assets of discontinued operations | 82,485 | (69,332 | ) | 13,153 | ||||||||
Total assets | $ | 629,449 | $ | — | $ | 629,449 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Foreign bank lines of credit | $ | 10,938 | $ | — | $ | 10,938 | ||||||
Current maturities of long-term debt | 4,058 | — | 4,058 | |||||||||
Accounts payable | 56,087 | 6,257 | 62,344 | |||||||||
Accrued liabilities | 21,439 | 1,883 | 23,322 | |||||||||
Liabilities of discontinued operations | 9,475 | (8,140 | ) | 1,335 | ||||||||
Total current liabilities | 101,997 | — | 101,997 | |||||||||
Long-term debt, less current portion | 198,037 | 10 | 198,047 | |||||||||
Other noncurrent liabilities | 4,344 | — | 4,344 | |||||||||
Liabilities of discontinued operations | 1,928 | (10 | ) | 1,918 | ||||||||
Total liabilities | 306,306 | — | 306,306 | |||||||||
Common stock | 897 | — | 897 | |||||||||
Paid-in capital | 444,763 | — | 444,763 | |||||||||
Accumulated other comprehensive income | 7,940 | — | 7,940 | |||||||||
Retained deficit | (130,457 | ) | — | (130,457 | ) | |||||||
Total stockholders’ equity | 323,143 | — | 323,143 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 629,449 | $ | — | $ | 629,449 | ||||||
Newpark Resources, Inc.
Pro forma Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2008
(Unaudited)
Pro forma Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2008
(Unaudited)
(In thousands, except per share data) | Historical | Adjustments (2) | Pro Forma | |||||||||
Revenues | $ | 584,067 | $ | 47,350 | $ | 631,417 | ||||||
Cost of revenues | 515,656 | 42,298 | 557,954 | |||||||||
68,411 | 5,052 | 73,463 | ||||||||||
General and administrative expenses | 16,593 | — | 16,593 | |||||||||
Operating income | 51,818 | 5,052 | 56,870 | |||||||||
Foreign currency exchange loss | 133 | — | 133 | |||||||||
Interest expense, net | 8,375 | — | 8,375 | |||||||||
Income from continuing operations before income taxes | 43,310 | 5,052 | 48,362 | |||||||||
Provision for income taxes | 14,301 | 1,990 | 16,291 | |||||||||
Income from continuing operations | 29,009 | 3,062 | 32,071 | |||||||||
Income (loss) from discontinued operations, net of tax | 2,762 | (3,062 | ) | (300 | ) | |||||||
Net income | $ | 31,771 | $ | — | $ | 31,771 | ||||||
Basic weighted average common shares outstanding | 89,227 | 89,227 | ||||||||||
Diluted weighted average common shares outstanding | 89,569 | 89,569 | ||||||||||
Income per common share (basic): | ||||||||||||
Income from continuing operations | $ | 0.33 | $ | 0.36 | ||||||||
Income from discontinued operations | 0.03 | — | ||||||||||
Net income per common share | $ | 0.36 | $ | 0.36 | ||||||||
Income per common share (diluted): | ||||||||||||
Income from continuing operations | $ | 0.32 | $ | 0.36 | ||||||||
Income (Loss) from discontinued operations | 0.03 | (0.01 | ) | |||||||||
Net income per common share | $ | 0.35 | $ | 0.35 | ||||||||
Newpark Resources, Inc.
Pro forma Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2007
(Unaudited)
Pro forma Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2007
(Unaudited)
(In thousands, except per share data) | Historical | Adjustments (2) | Pro Forma | |||||||||
Revenues | $ | 453,024 | $ | 45,222 | $ | 498,246 | ||||||
Cost of revenues | 393,176 | 37,261 | 430,437 | |||||||||
59,848 | 7,961 | 67,809 | ||||||||||
General and administrative expenses | 17,833 | — | 17,833 | |||||||||
Operating income | 42,015 | 7,961 | 49,976 | |||||||||
Foreign currency exchange gain | (279 | ) | — | (279 | ) | |||||||
Interest expense, net | 12,182 | — | 12,182 | |||||||||
Income from continuing operations before income taxes | 30,112 | 7,961 | 38,073 | |||||||||
Provision for income taxes | 10,586 | 2,500 | 13,086 | |||||||||
Income from continuing operations | 19,526 | 5,461 | 24,987 | |||||||||
Income (loss) from discontinued operations, net of tax | 2,563 | (5,461 | ) | (2,898 | ) | |||||||
Loss from disposal of discontinued operations, net of tax | (2,173 | ) | — | (2,173 | ) | |||||||
Net income | $ | 19,916 | $ | — | $ | 19,916 | ||||||
Basic weighted average common shares outstanding | 89,965 | 89,965 | ||||||||||
Diluted weighted average common shares outstanding | 90,503 | 90,503 | ||||||||||
Income per common share (basic): | ||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.28 | ||||||||
Loss from discontinued operations | — | (0.06 | ) | |||||||||
Net income per common share | $ | 0.22 | $ | 0.22 | ||||||||
Income per common share (diluted): | ||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.28 | ||||||||
Loss from discontinued operations | — | (0.06 | ) | |||||||||
Net income per common share | $ | 0.22 | $ | 0.22 | ||||||||
Newpark Resources, Inc.
Pro forma Condensed Consolidated Statement of Operations
Year Ended December 31, 2007
(Unaudited)
Pro forma Condensed Consolidated Statement of Operations
Year Ended December 31, 2007
(Unaudited)
(In thousands, except per share data) | Historical | Adjustments (2) | Pro Forma | |||||||||
Revenues | $ | 612,764 | $ | 58,443 | $ | 671,207 | ||||||
Cost of revenues | 533,929 | 47,952 | 581,881 | |||||||||
78,835 | 10,491 | 89,326 | ||||||||||
General and administrative expenses | 22,923 | — | 22,923 | |||||||||
Operating income | 55,912 | 10,491 | 66,403 | |||||||||
Foreign currency exchange gain | (1,083 | ) | — | (1,083 | ) | |||||||
Interest expense, net | 20,251 | — | 20,251 | |||||||||
Income from continuing operations before income taxes | 36,744 | 10,491 | 47,235 | |||||||||
Provision for income taxes | 11,700 | 3,772 | 15,472 | |||||||||
Income from continuing operations | 25,044 | 6,719 | 31,763 | |||||||||
Income (loss) from discontinued operations, net of tax | 3,231 | (6,719 | ) | (3,488 | ) | |||||||
Loss from disposal of discontinued operations, net of tax | (1,613 | ) | — | (1,613 | ) | |||||||
Net income | $ | 26,662 | $ | — | $ | 26,662 | ||||||
Basic weighted average common shares outstanding | 90,015 | 90,015 | ||||||||||
Diluted weighted average common shares outstanding | 90,527 | 90,527 | ||||||||||
Income per common share (basic): | ||||||||||||
Income from continuing operations | $ | 0.28 | $ | 0.35 | ||||||||
Income (loss) from discontinued operations | 0.02 | (0.05 | ) | |||||||||
Net income per common share | $ | 0.30 | $ | 0.30 | ||||||||
Income per common share (diluted): | ||||||||||||
Income from continuing operations | $ | 0.28 | $ | 0.35 | ||||||||
Income (loss) from discontinued operations | 0.01 | (0.06 | ) | |||||||||
Net income per common share | $ | 0.29 | $ | 0.29 | ||||||||
Newpark Resources, Inc.
Pro forma Condensed Consolidated Statement of Operations
Year Ended December 31, 2006
(Unaudited)
Pro forma Condensed Consolidated Statement of Operations
Year Ended December 31, 2006
(Unaudited)
(In thousands, except per share data) | Historical | Adjustments (2) | Pro Forma | |||||||||
Revenues | $ | 581,908 | $ | 60,409 | $ | 642,317 | ||||||
Cost of revenues | 500,062 | 50,685 | 550,747 | |||||||||
81,846 | 9,724 | 91,570 | ||||||||||
General and administrative expenses | 20,022 | — | 20,022 | |||||||||
Impairment losses | — | 68,080 | 68,080 | |||||||||
Operating income | 61,824 | (58,356 | ) | 3,468 | ||||||||
Foreign currency exchange loss | 367 | — | 367 | |||||||||
Interest expense, net | 19,546 | — | 19,546 | |||||||||
Income from continuing operations before income taxes | 41,911 | (58,356 | ) | (16,445 | ) | |||||||
Provision for income taxes | 13,851 | (17,990 | ) | (4,139 | ) | |||||||
Income from continuing operations | 28,060 | (40,366 | ) | (12,306 | ) | |||||||
Income (loss) from discontinued operations, net of tax | (60,341 | ) | 40,366 | (19,975 | ) | |||||||
Net income | $ | (32,281 | ) | $ | — | $ | (32,281 | ) | ||||
Basic weighted average common shares outstanding | 89,333 | 89,333 | ||||||||||
Diluted weighted average common shares outstanding | 89,871 | 89,871 | ||||||||||
Income per common share (basic): | ||||||||||||
Income (loss) from continuing operations | $ | 0.31 | $ | (0.14 | ) | |||||||
Loss from discontinued operations | (0.67 | ) | (0.22 | ) | ||||||||
Net income per common share | $ | (0.36 | ) | $ | (0.36 | ) | ||||||
Income per common share (diluted): | ||||||||||||
Income (loss) from continuing operations | $ | 0.31 | $ | (0.14 | ) | |||||||
Loss from discontinued operations | (0.67 | ) | (0.22 | ) | ||||||||
Net income per common share | $ | (0.36 | ) | $ | (0.36 | ) | ||||||
Newpark Resources, Inc.
Pro forma Condensed Consolidated Statement of Operations
Year Ended December 31, 2005
(Unaudited)
Pro forma Condensed Consolidated Statement of Operations
Year Ended December 31, 2005
(Unaudited)
(In thousands, except per share data) | Historical | Adjustments (2) | Pro Forma | |||||||||
Revenues | $ | 476,672 | $ | 51,381 | $ | 528,053 | ||||||
Cost of revenues | 423,467 | 43,972 | 467,439 | |||||||||
53,205 | 7,409 | 60,614 | ||||||||||
General and administrative expenses | 9,546 | — | 9,546 | |||||||||
Operating income | 43,659 | 7,409 | 51,068 | |||||||||
Foreign currency exchange gain | (551 | ) | — | (551 | ) | |||||||
Interest expense, net | 15,965 | — | 15,965 | |||||||||
Income from continuing operations before income taxes | 28,245 | 7,409 | 35,654 | |||||||||
Provision for income taxes | 9,136 | 2,657 | 11,793 | |||||||||
Income from continuing operations | 19,109 | 4,752 | 23,861 | |||||||||
Income (loss) from discontinued operations, net of tax | 3,672 | (4,752 | ) | (1,080 | ) | |||||||
Net income | 22,781 | — | 22,781 | |||||||||
Less: Preferred stock dividends and accretion | 509 | — | 509 | |||||||||
Net income (loss) applicable to common shares | $ | 22,272 | $ | — | $ | 22,272 | ||||||
Basic weighted average common shares outstanding | 85,950 | 85,950 | ||||||||||
Diluted weighted average common shares outstanding | 86,454 | 86,454 | ||||||||||
Income per common share (basic): | ||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.28 | ||||||||
Income (loss) from discontinued operations | 0.04 | (0.02 | ) | |||||||||
Net income per common share | $ | 0.26 | $ | 0.26 | ||||||||
Income per common share (diluted): | ||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.28 | ||||||||
Income (loss) from discontinued operations | 0.04 | (0.02 | ) | |||||||||
Net income per common share | $ | 0.26 | $ | 0.26 | ||||||||
Newpark Resources, Inc.
Notes to Pro forma Condensed Consolidated Financial Information
(Unaudited)
Notes to Pro forma Condensed Consolidated Financial Information
(Unaudited)
Pro forma Balance Sheets
The unaudited pro forma condensed consolidated balance sheet as of September 30, 2008 is based upon the historical unaudited condensed consolidated balance sheet of Newpark Resources, Inc. as of September 30, 2008, as reported on our Quarterly Report on Form 10-Q. The unaudited pro forma condensed consolidated balance sheets as of December 31, 2007 and December 31, 2006 are based upon the historical audited consolidated balance sheets of Newpark Resources, Inc., as of these respective dates, as reported on our Annual Report on Form 10-K. These historical balance sheets are adjusted for the following:
(1) | Assets and liabilities attributable to the U.S. environmental business are reclassified from discontinued operations to continuing operations, following the termination of the agreement to sell this operation. |
Pro forma Statements of Operations
The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2008 and September 30, 2007 are based upon the historical unaudited condensed consolidated statements of operations of Newpark Resources, Inc. for these periods, respectively, as reported on our Quarterly Report on Form 10-Q. The unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2007, 2006 and 2005 are based upon the historical audited consolidated statements of operations of Newpark Resources, Inc., for these periods, respectively, as reported on our Annual Report on Form 10-K. These historical statements of operations are adjusted for the following:
(2) | The results of operations attributable to the U.S. environmental business are reclassified from discontinued operations to continuing operations, following the termination of the agreement to sell this operation. |