Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 19, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RPC INC | |
Entity Central Index Key | 0000742278 | |
Trading Symbol | res | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 215,141,327 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | [1] |
ASSETS | |||
Cash and cash equivalents | $ 113,014 | $ 116,262 | |
Accounts receivable, net of allowance for doubtful accounts of $5,121 in 2019 and $4,813 in 2018 | 319,205 | 323,533 | |
Inventories | 124,464 | 130,083 | |
Income taxes receivable | 8,613 | 35,832 | |
Prepaid expenses | 9,343 | 9,766 | |
Other current assets | 3,213 | 3,462 | |
Total current assets | 577,852 | 618,938 | |
Property, plant and equipment, less accumulated depreciation of $1,656,164 in 2019 and $1,633,827 in 2018 | 537,289 | 517,982 | |
Operating lease right-of-use assets | 45,854 | ||
Goodwill | 32,150 | 32,150 | |
Other assets | 33,347 | 30,510 | |
Total assets | 1,226,492 | 1,199,580 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | 109,892 | 103,401 | |
Accrued payroll and related expenses | 26,162 | 25,715 | |
Accrued insurance expenses | 6,362 | 6,183 | |
Accrued state, local and other taxes | 4,728 | 3,081 | |
Income taxes payable | 3,519 | 4,706 | |
Current portion of operating lease liabilities | 12,547 | ||
Other accrued expenses | 317 | 151 | |
Total current liabilities | 163,527 | 143,237 | |
Long-term accrued insurance expenses | 12,709 | 12,072 | |
Long-term pension liabilities | 32,553 | 29,638 | |
Deferred income taxes | 52,986 | 60,375 | |
Long-term operating lease liabilities | 34,348 | ||
Other long-term liabilities | 2,506 | 3,839 | |
Total liabilities | 298,629 | 249,161 | |
Common stock | 21,514 | 21,454 | |
Capital in excess of par value | 0 | 0 | |
Retained earnings | 927,556 | 947,711 | |
Accumulated other comprehensive loss | (21,207) | (18,746) | |
Total stockholders' equity | 927,863 | 950,419 | |
Total liabilities and stockholders' equity | $ 1,226,492 | $ 1,199,580 | |
[1] | Note 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,121 | $ 4,813 |
Accumulated depreciation of property, plant and equipment | $ 1,656,164 | $ 1,633,827 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 334,656 | $ 436,334 |
Cost of revenues (exclusive of items shown below) | 252,395 | 295,605 |
Selling, general and administrative expenses | 45,421 | 43,814 |
Depreciation and amortization | 42,505 | 37,480 |
Gain on disposition of assets, net | (3,504) | (1,363) |
Operating (loss) income | (2,161) | 60,798 |
Interest expense | (89) | (105) |
Interest income | 800 | 402 |
Other income, net | 445 | 5,395 |
(Loss) income before income taxes | (1,005) | 66,490 |
Income tax (benefit) provision | (266) | 14,360 |
Net (loss) income | $ (739) | $ 52,130 |
Earnings per share | ||
Basic | $ 0 | $ 0.24 |
Diluted | 0 | 0.24 |
Dividends per share | $ 0.10 | $ 0.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income and Comprehensive Income [Abstract] | ||
Net (loss) income | $ (739) | $ 52,130 |
Other comprehensive income (loss): | ||
Pension adjustment and reclassification adjustment, net of taxes | 173 | 173 |
Foreign currency translation | 98 | (481) |
Comprehensive (loss) income | $ (468) | $ 51,822 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total | |
Balance at Dec. 31, 2017 | $ 21,654 | $ 906,745 | $ (16,702) | $ 911,697 | ||
Balance (in shares) at Dec. 31, 2017 | 216,544 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued for stock incentive plans, net | $ 50 | $ 2,505 | 2,555 | |||
Stock issued for stock incentive plans, net (in shares) | 498 | |||||
Stock purchased and retired | $ (157) | (2,505) | (28,048) | (30,710) | ||
Stock purchased and retired (in shares) | (1,573) | |||||
Net (loss) income | 52,130 | 52,130 | ||||
Dividends | (21,657) | (21,657) | ||||
Pension adjustment, net of taxes | 173 | 173 | ||||
Foreign currency translation | (481) | (481) | ||||
Balance at Mar. 31, 2018 | $ 21,547 | 909,185 | (17,025) | 913,707 | ||
Balance (in shares) at Mar. 31, 2018 | 215,469 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of accounting standard (Note 2) | 15 | (15) | ||||
Balance at Dec. 31, 2018 | $ 21,454 | 947,711 | (18,746) | 950,419 | [1] | |
Balance (in shares) at Dec. 31, 2018 | 214,544 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued for stock incentive plans, net | $ 84 | 2,368 | 2,452 | |||
Stock issued for stock incentive plans, net (in shares) | 843 | |||||
Stock purchased and retired | $ (24) | $ (2,368) | (306) | (2,698) | ||
Stock purchased and retired (in shares) | (245) | |||||
Net (loss) income | (739) | (739) | ||||
Dividends | (21,486) | (21,486) | ||||
Pension adjustment, net of taxes | 173 | 173 | ||||
Foreign currency translation | 98 | 98 | ||||
Balance at Mar. 31, 2019 | $ 21,514 | 927,556 | (21,207) | 927,863 | ||
Balance (in shares) at Mar. 31, 2019 | 215,142 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of accounting standard (Note 2) | $ 2,376 | $ (2,732) | $ (356) | |||
[1] | Note 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
OPERATING ACTIVITIES | |||
Net (loss) income | $ (739) | $ 52,130 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation, amortization and other non-cash charges | 43,062 | 38,148 | |
Stock-based compensation expense | 2,452 | 2,555 | |
Gain on disposition of assets, net | (3,504) | (1,363) | |
Deferred income tax benefit | (7,446) | (1,034) | |
(Increase) decrease in assets: | |||
Accounts receivable | 4,400 | (6,953) | |
Income taxes receivable | 27,219 | 10,300 | |
Inventories | 5,731 | (6,215) | |
Prepaid expenses | 423 | 2,039 | |
Other current assets | 354 | (1,535) | |
Other non-current assets | (2,844) | 295 | |
Increase (decrease) in liabilities: | |||
Accounts payable | 3,666 | 11,990 | |
Income taxes payable | (1,187) | 4,786 | |
Accrued payroll and related expenses | 433 | 3,169 | |
Accrued insurance expenses | 179 | 374 | |
Accrued state, local and other taxes | 1,647 | 970 | |
Other accrued expenses | 166 | 169 | |
Pension liabilities | 3,145 | (588) | |
Long-term accrued insurance expenses | 637 | 935 | |
Other long-term liabilities | (648) | (509) | |
Net cash provided by operating activities | 77,146 | 109,663 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (62,280) | (50,482) | |
Proceeds from sale of assets | 6,070 | 3,119 | |
Net cash used for investing activities | (56,210) | (47,363) | |
FINANCING ACTIVITIES | |||
Payment of dividends | (21,486) | (21,657) | |
Cash paid for common stock purchased and retired | (2,698) | (30,710) | |
Net cash used for financing activities | (24,184) | (52,367) | |
Net (decrease) increase in cash and cash equivalents | (3,248) | 9,933 | |
Cash and cash equivalents at beginning of period | 116,262 | [1] | 91,050 |
Cash and cash equivalents at end of period | 113,014 | 100,983 | |
Supplemental cash flows disclosure: | |||
Income taxes (refund) paid, net | (18,938) | 292 | |
Supplemental disclosure of noncash investing activities: | |||
Capital expenditures included in accounts payable | $ 17,634 | $ 18,823 | |
[1] | Note 1 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2019 | |
General [Abstract] | |
GENERAL | 1. GENERAL The accompanying unaudited consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (“RPC” or the “Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These consolidated financial statements have been prepared in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810, “Consolidation” and Rule 3A-02(a) of Regulation S-X. In accordance with ASC Topic 810 and Rule 3A-02 (a) of Regulation S-X, the Company’s policy is to consolidate all subsidiaries and investees where it has voting control. In the opinion of management, all adjustments (all of which consisted of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019. The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2018. A group that includes the Company’s Chairman of the Board, R. Randall Rollins, and his brother Gary W. Rollins, who is also a director of the Company, and certain companies under their control, controls in excess of fifty percent of the Company’s voting power. |
RECENT ACCOUNTING STANDARDS
RECENT ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2019 | |
RECENT ACCOUNTING STANDARDS | |
RECENT ACCOUNTING STANDARDS | 2. RECENT ACCOUNTING STANDARDS The FASB issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2020 and later: ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2019 | |
REVENUES | |
REVENUES | 3. REVENUES Accounting Policy: RPC’s contract revenues are generated principally from providing oilfield services. These services are based on mutually agreed upon pricing with the customer prior to the services being delivered and, given the nature of the services, do not include the right of return. Pricing for these services is a function of rates based on the nature of the specific job, with consideration for the extent of equipment, labor, and consumables needed for the job. RPC typically satisfies its performance obligations over time as the services are performed. RPC records revenues based on the transaction price agreed upon with its customers. Sales tax charged to customers is presented on a net basis within the consolidated statements of operations and therefore excluded from revenues. Nature of services: RPC provides a broad range of specialized oilfield services to independent and major oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States and in selected international markets. RPC manages its business as either (1) services offered on the well site with equipment and personnel (Technical Services) or (2) services and tools offered off the well site (Support Services). For more detailed information about operating segments, see Note 6. RPC contracts with its customers to provide the following services by reportable segment: Technical Services · Includes pressure pumping, downhole tools services, coiled tubing, nitrogen, snubbing and other oilfield related services including wireline, well control, fishing and pump down services. Support Services · Rental tools – RPC rents tools to its customers for use with onshore and offshore oil and gas well drilling, completion and workover activities. · Other support services include oilfield pipe inspection services, pipe management and pipe storage; well control training and consulting. Our contracts with customers are generally very short-term in nature and generally consist of a single performance obligation – the provision of oilfield services. Payment terms: RPC’s contracts with customers state the final terms of the sales, including the description, quantity, and price of each service to be delivered. The Company’s contracts are generally short-term in nature and in most situations, RPC provides services ahead of payment - i.e., RPC has fulfilled the performance obligation prior to submitting a customer invoice. RPC invoices the customer upon completion of the specified services and collection generally occurs between 30 to 60 days after invoicing. As the Company enters into contracts with its customers, it generally expects there to be no significant timing difference between the date the services are provided to the customer (satisfaction of the performance obligation) and the date cash consideration is received. Accordingly, there is no financing component to our arrangements with customers. Significant judgments: RPC believes the output method is a reasonable measure of progress for the satisfaction of our performance obligations, which are satisfied over time, as it provides a faithful depiction of (1) our performance toward complete satisfaction of the performance obligation under the contract and (2) the value transferred to the customer of the services performed under the contract. RPC has elected the right to invoice practical expedient for recognizing revenue related to its performance obligations. Disaggregation of revenues: See Note 6 for disaggregation of revenue by operating segment and services offered in each of them and by geographic regions. Timing of revenue recognition for each of the periods presented is shown below: Three months ended March 31, (in thousands) 2019 2018 Oilfield services transferred at a point in time $ - $ - Oilfield services transferred over time 334,656 436,334 Total revenues $ 334,656 $ 436,334 Contract balances: Contract assets representing the Company’s rights to consideration for work completed but not billed are included in accounts receivable, net on the consolidated balance sheets are shown below: (in thousands) March 31, 2019 December 31, March 31, 2018 December 31, Unbilled trade receivables $ 90,539 $ 56,408 $ 79,688 $ 68,494 Substantially all of the unbilled trade receivables disclosed above were invoiced during the following quarter. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 4. EARNINGS PER SHARE Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. The following table shows the restricted shares of common stock (participating securities) outstanding and a reconciliation of outstanding weighted average shares is as follows: Three months ended March 31, (In thousands) 2019 2018 Net (loss) income available for stockholders: $ (739 ) $ 52,130 Less: Adjustments for earnings attributable to participating securities (225 ) (591 ) Net (loss) income used in calculating earnings per share $ (964 ) $ 51,539 Weighted average shares outstanding (including participating securities) 215,041 215,877 Adjustment for participating securities (2,550 ) (2,584 ) Shares used in calculating basic and diluted earnings per share 212,491 213,293 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 5. STOCK-BASED COMPENSATION In April 2014, the Company reserved 8,000,000 shares of common stock under the 2014 Stock Incentive Plan with a term of 10 years expiring in April 2024. This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted shares. As of March 31, 2019, there were 4,556,744 shares available for grant. Stock-based employee compensation expense was as follows for the periods indicated: Three months ended March 31, (in thousands) 2019 2018 Pre-tax expense $ 2,452 $ 2,555 After tax expense $ 1,851 $ 1,929 Restricted Stock The following is a summary of the changes in non-vested restricted shares for the three months ended March 31, 2019: Shares Weighted Average Non-vested shares at December 31, 2018 2,352,150 $ 17.15 Granted 858,150 11.39 Vested (614,903 ) 14.71 Forfeited (14,910 ) 15.50 Non-vested shares at March 31, 2019 2,580,487 $ 13.21 The total fair value of shares vested was $6,934,000 during the three months ended March 31, 2019 and $16,190,000 during the three months ended March 31, 2018. Excess tax benefits or deficits realized from tax compensation deductions in excess of, or lower than compensation expense are recorded as either a beneficial or detrimental discrete tax adjustment. This discrete tax adjustment was a detriment of $510,000 for the three months ended March 31, 2019 and a benefit of $1,604,000 for the three months ended March 31, 2018. As of March 31, 2019, total unrecognized compensation cost related to non-vested restricted shares was $50,820,000, which is expected to be recognized over a weighted-average period of 4.2 years |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | 6. BUSINESS SEGMENT INFORMATION RPC’s reportable segments are the same as its operating segments. RPC manages its business under Technical Services and Support Services. Technical Services is comprised of service lines that generate revenue based on equipment, personnel or materials at the well site and are closely aligned with completion and production activities of the customers. Support Services is comprised of service lines which generate revenue from services and tools offered off the well site and are more closely aligned with the customers’ drilling activities. Selected overhead including centralized support services and regulatory compliance are classified as Corporate. Technical Services consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. The services offered under Technical Services are high capital and personnel intensive businesses. The Company considers all of these services to be closely integrated oil and gas well servicing businesses, and makes resource allocation and performance assessment decisions based on this operating segment as a whole across these various services. Support Services consist primarily of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training and consulting services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels. The Company’s Chief Operating Decision Maker (“CODM”) assesses performance and makes resource allocation decisions regarding, among others, staffing, growth and maintenance capital expenditures and key initiatives based on the operating segments outlined above. Segment Revenues: RPC’s operating segment revenues by major service lines are shown in the following table: Three months ended March 31, (in thousands) 2019 2018 Technical Services: Pressure Pumping $ 147,759 $ 256,155 Downhole Tools 109,671 93,041 Coiled Tubing 20,178 25,196 Nitrogen 11,308 11,431 Snubbing 3,463 3,973 All other 21,700 29,267 Total Technical Services $ 314,079 $ 419,063 Support Services: Rental Tools $ 13,936 $ 10,020 All other 6,641 7,251 Total Support Services $ 20,577 $ 17,271 Total revenues $ 334,656 $ 436,334 The following summarizes revenues for the United States and separately for all international locations combined for the three months ended March 31, 2019. The revenues are presented based on the location of the use of the equipment or services. Assets related to international operations are less than 10 percent of RPC’s consolidated assets, and therefore are not presented. Three months ended March 31, (in thousands) 2019 2018 United States revenues $ 313,968 $ 417,385 International revenues 20,688 18,949 Total revenues $ 334,656 $ 436,334 The accounting policies of the reportable segments are the same as those described in Note 1 to these consolidated financial statements. RPC evaluates the performance of its segments based on revenues, operating profits and return on invested capital. Gains or losses on disposition of assets are reviewed by the CODM on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level. Inter-segment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results. Summarized financial information with respect RPC’s reportable segments for the three months ended March 31, 2019 and 2018 are shown in the following table: Three months ended March 31, (in thousands) 2019 2018 Revenues: Technical Services $ 314,079 $ 419,063 Support Services 20,577 17,271 Total revenues $ 334,656 $ 436,334 Operating (loss) income: Technical Services $ (4,457 ) $ 65,005 Support Services 3,137 (905 ) Corporate (4,345 ) (4,665 ) Gain on disposition of assets, net 3,504 1,363 Total operating (loss) income $ (2,161 ) $ 60,798 Interest expense (89 ) (105 ) Interest income 800 402 Other income , net 445 5,395 (Loss) income before income taxes $ (1,005 ) $ 66,490 As of and for the three months ended Technical Support Corporate Total (in thousands) Depreciation and amortization $ 39,902 $ 2,511 $ 92 $ 42,505 Capital expenditures 59,889 2,069 322 62,280 Identifiable assets $ 969,036 $ 82,111 $ 175,345 $ 1,226,492 As of and for the three months ended Technical Support Corporate Total (in thousands) Depreciation and amortization $ 33,937 $ 3,432 $ 111 $ 37,480 Capital expenditures 48,551 1,406 525 50,482 Identifiable assets $ 933,979 $ 73,801 $ 173,237 $ 1,181,017 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2019 | |
INVENTORIES | |
INVENTORIES | 7. INVENTORIES Inventories of $124,464,000 at March 31, 2019 and $130,083,000 at December 31, 2018 consist of raw materials, parts and supplies. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 3 Months Ended |
Mar. 31, 2019 | |
EMPLOYEE BENEFIT PLAN | |
EMPLOYEE BENEFIT PLAN | 8. EMPLOYEE BENEFIT PLAN The following represents the net periodic benefit cost and related components of the Company’s multiple employers Retirement Income Plan: Three months ended (in thousands) 2019 2018 Interest cost $ 490 $ 458 Expected return on plan assets (650 ) (709 ) Amortization of net losses 230 206 Net periodic benefit cost (credit) $ 70 $ (45 ) The Company did not make any contributions to this plan during the three months ended March 31, 2019 and 2018. The Company permits selected highly compensated employees to defer a portion of their compensation into the non-qualified Supplemental Retirement Plan (“SERP”). The SERP assets are marked to market and totaled $25,668,000 as of March 31, 2019 and $22,815,000 as of December 31, 2018. The SERP assets are reported in non-current other assets on the consolidated balance sheets and changes in the fair value of these assets are reported in the consolidated statements of operations as compensation cost in selling, general and administrative expenses. Unrealized gains (losses), net related to the SERP assets were approximately as follows: Three months ended (in thousands) 2019 2018 Unrealized gains (losses), net $ 2,852 $ (486 ) The SERP liability includes participant deferrals net of distributions and is recorded on the consolidated balance sheets in long-term pension liabilities with any change in the fair value of the liabilities recorded as compensation cost within selling, general and administrative expenses in the consolidated statements of operations. |
NOTES PAYABLE TO BANKS
NOTES PAYABLE TO BANKS | 3 Months Ended |
Mar. 31, 2019 | |
NOTES PAYABLE TO BANKS | |
NOTES PAYABLE TO BANKS | 9. NOTES PAYABLE TO BANKS The Company has a revolving credit facility with Bank of America and five other lenders which provides for a line of credit of up to $125 million, including a $35 million letter of credit subfacility, and a $35 million swingline subfacility. The revolving credit facility contains customary terms and conditions, including restrictions on indebtedness, dividend payments, business combinations and other related items. The revolving credit facility includes a full and unconditional guarantee by the Company's 100 percent owned domestic subsidiaries whose assets equal substantially all of the consolidated assets of the Company and its subsidiaries. Certain of the Company’s minor subsidiaries are not guarantors. On July 26, 2018, the Company entered into Amendment No. 4 to Credit Agreement (the “Amendment”). The Amendment, among other matters, replaces the existing minimum tangible net worth covenant with the following covenants: (i) when RPC’s trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, a maximum consolidated leverage ratio of 2.50:1.00 and a minimum debt service coverage ratio of 2.00:1.00, and (ii) otherwise, a minimum tangible net worth covenant of no less than $600 million. The Amendment additionally (1) extends the Credit Agreement maturity date from January 17, 2019 to July 26, 2023, (2) eliminates any borrowing base limitations on revolving loans when RPC’s trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, (3) reduces the commitment fees payable by RPC by 7.5 basis points at each pricing level and (4) reduces the letter of credit sublimit from $50 million to $35 million. As of March 31, 2019, the Company was in compliance with these covenants. Revolving loans under the amended revolving credit facility bear interest at one of the following two rates at the Company’s election: · the Eurodollar Rate, which is the rate per annum equal to the London Interbank Offering Rate (“LIBOR”); plus, a margin ranging from 1.125% to 2.125%, based on a quarterly consolidated leverage ratio calculation; or · the Base Rate, which is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) Bank of America’s publicly announced “prime rate,” and (c) the Eurodollar Rate plus 1.00%; in each case plus a margin that ranges from 0.125% to 1.125% based on a quarterly consolidated leverage ratio calculation. In addition, the Company pays an annual fee ranging from 0.15% to 0.25%, based on a quarterly consolidated leverage ratio calculation, on the unused portion of the credit facility. The Company has incurred total loan origination fees and other debt related costs associated with this revolving credit facility in the aggregate of approximately $3.3 million. These costs are being amortized to interest expense over the remaining term of the loan, and the remaining net balance of $0.3 million at March 31, 2019 is classified as part of non-current other assets. As of March 31, 2019, RPC had no outstanding borrowings under the revolving credit facility, and letters of credit outstanding relating to self-insurance programs and contract bids totaled $19.5 million; therefore, a total of $105.5 million of the facility was available. Interest incurred, which includes facility fees on the unused portion of the revolving credit facility and the amortization of loan cost, and interest paid on the credit facility were as follows for the periods indicated: Three months ended March 31, (in thousands) 2019 2018 Interest incurred $ 89 $ 103 Interest paid 62 62 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES The Company determines its periodic income tax expense or benefit based upon the current period income or loss and the annual estimated tax rate for the Company adjusted for discrete items including changes to prior period estimates. The estimated tax rate is revised, if necessary, as of the end of each successive interim period during the fiscal year to the Company's current annual estimated tax rate. For the three months ended March 31, 2019, the income tax provision reflects an effective tax rate of 26.5 percent compared to 21.6 percent for the comparable period in the prior year. The 2018 effective tax rate included a one-time $7.5 million discrete tax benefit. The 2018 discrete benefit resulted from tax provision to return adjustments that included release of a valuation allowance on foreign tax credits, state income tax decreases created by the federal tax changes, and an exclusion to compensation limitations of an officer that retired in 2017. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE DISCLOSURES | |
FAIR VALUE DISCLOSURES | 11. FAIR VALUE DISCLOSURES The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows: 1. Level 1 – Quoted market prices in active markets for identical assets or liabilities. 2. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 3. Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The following table summarizes the valuation of financial instruments measured at fair value on a recurring basis in the balance sheets as of March 31, 2019 and December 31, 2018: Fair Value Measurements at March 31, 2019 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 248 $ 248 $ — $ — Investments measured at net asset value $ 25,668 Fair Value Measurements at December 31, 2018 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 211 $ 211 $ — $ — Investments measured at net asset value $ 22,815 The Company determines the fair value of equity securities that have a readily determinable fair value through quoted market prices. The total fair value is the final closing price, as defined by the exchange in which the asset is actively traded, on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. Marketable securities comprised of the SERP assets, as described in Note 8, are recorded primarily at their net cash surrender values, calculated using their net asset values, which approximates fair value, as provided by the issuing insurance company. Significant observable inputs, in addition to quoted market prices, were used to value the trading securities. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. For the period ended March 31, 2019, there were no significant transfers in or out of levels 1, 2 or 3. Under the Company’s revolving credit facility, there was no balance outstanding at March 31, 2019 and December 31, 2018. Borrowings under our revolving credit facility are typically based on the quote from the lender (level 2 inputs), which approximates fair value, and bear variable interest rates as described in Note 9. The Company is subject to interest rate risk on the variable component of the interest rate. The carrying amounts of other financial instruments reported in the balance sheet for current assets and current liabilities approximate their fair values because of the short maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether it will elect this option for financial instruments acquired in the future. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 3 Months Ended |
Mar. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated other comprehensive (loss) income consists of the following (in thousands): Pension Foreign Total Balance at December 31, 2018 $ (15,878 ) $ (2,868 ) $ (18,746 ) Change during the period: Before-tax amount — 98 98 Adoption of accounting standard (Note 2) (2,732 ) (2,732 ) Reclassification adjustment, net of taxes: Amortization of net loss (1) 173 — 173 Total activity for the period (2,559 ) 98 (2,461 ) Balance at March 31, 2019 $ (18,437 ) $ (2,770 ) $ (21,207 ) (1) Reported as part of selling, general and administrative expenses. Pension Unrealized Foreign Total Balance at December 31, 2017 $ (14,470 ) $ 15 $ (2,247 ) $ (16,702 ) Change during the period: Before-tax amount — (15 ) (481 ) (496 ) Tax benefit — — — — Reclassification adjustment, net of taxes: Amortization of net loss (1) 173 — — 173 Total activity for the period 173 (15 ) (481 ) (323 ) Balance at March 31, 2018 $ (14,297 ) $ — $ (2,728 ) $ (17,025 ) (1) Reported as part of selling, general and administrative expenses. As of January 1, 2018, the balance related to the cumulative unrealized gain on marketable securities included in accumulated other comprehensive income was reclassed upon adoption of ASU 2016-1, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In the first quarter of 2019, the Company adopted the provisions of ASU 2018-02, which provides an option to reclassify stranded tax effects within accumulated other comprehensive income/(loss) (AOCI) to retained earnings due to the change in the U.S. federal tax rate as a result of the Tax Cuts and Jobs Act, which took effect in January 2018. Accordingly, the Company elected to reclassify approximately $2.7 million of stranded tax effects related to its pension plan from AOCI to retained earnings. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
LEASES | |
LEASES | 13. LEASES The Company adopted ASU No. 2016-02, Leases (Topic 842) on January 1, 2019 and recognized leases with duration greater than 12 months on the balance sheet using the modified retrospective approach. Prior year financial statements have not been restated and therefore those amounts are not presented below. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed for a carry-forward of the historical lease classification. For leases with terms greater than 12 months, the Company has recorded the related Right-Of-Use (ROU) asset and liability at the present value of lease payments over the term. A few of the leases include rental escalation clauses or renewal options and they have been factored into the determination of lease payments when appropriate. There are no residual value guarantees on the existing leases. The Company estimates its incremental borrowing rate, at lease commencement, to determine the present value of lease payments, since most of the Company’s leases do not provide an implicit rate of return. ROU assets exclude lessor incentives received. The Company’s lease population consists primarily of real estate including its corporate headquarters, office space and warehouses, in addition to vehicles, railcars, storage containers and office equipment. The Company does not have any finance leases. The Company has a significant population of month-to-month real estate leases that have been classified as short-term leases, and therefore has not recognized a ROU asset or lease liability related to them. The Company determines at contract inception, if an arrangement is a lease or contains a lease based on whether the Company obtains the right to control the use of specifically identifiable property, plant and equipment for a period of time in exchange for consideration. The Company has elected not to separate non-lease components from lease components for its leases. Variable lease payments relate primarily to taxes and insurance on real estate contracts and are recognized as expense when incurred. The Company subleases certain real estate to third parties. Our sublease portfolio consists solely of operating leases. As of March 31, 2019, the Company had no operating leases that had not yet commenced. During the quarter ended March 31, 2019, the Company entered into new leases or modified existing leases that resulted in an increase of ROU assets in exchange for operating lease liabilities as disclosed below. Lease position: The table below presents the assets and liabilities related to operating leases recorded on the balance sheet: (in thousands) Classification on the Consolidated Balance Sheet March 31, 2019 Assets: Operating lease assets Operating lease right-of-use assets $ 45,854 Liabilities: Current – operating leases Current portion of operating leases $ 12,547 Non-current – operating leases Long-term operating lease liabilities 34,348 Total lease liabilities $ 46,895 Lease costs: The components of lease expense for the period are reported as follows: (in thousands) Classification on the Consolidated Three months ended Operating lease cost Selling, general and administrative expenses $ 3,974 Short-term lease cost Selling, general and administrative expenses 1,774 Variable lease cost Selling, general and administrative expenses 26 Sublease income Selling, general and administrative expenses (18 ) Total lease cost $ 5,756 Other information: Three months ended Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 3,468 ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 6,132 Weighted average remaining lease term – operating leases 5.2 years Weighted average discount rate – operating leases 3.74 % Maturity of lease liabilities (in thousands) Operating 2019 (excluding the three months ended March 31, 2019) $ 11,254 2020 11,630 2021 8,996 2022 6,287 2023 3,868 Thereafter 10,861 Total lease payments 52,896 Less: Amounts representing interest (6,001 ) Present value of lease liabilities $ 46,895 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2019 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 14. SUBSEQUENT EVENT On April 23, 2019, the Board of Directors declared a quarterly cash dividend of $0.05 per share payable June 10, 2019 to common stockholders of record at the close of business May 10, 2019. |
RECENT ACCOUNTING STANDARDS (Po
RECENT ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING STANDARDS | RECENT ACCOUNTING STANDARDS The FASB issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2020 and later: ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
REVENUES | |
Schedule of disaggregation of revenues | Three months ended March 31, (in thousands) 2019 2018 Oilfield services transferred at a point in time $ - $ - Oilfield services transferred over time 334,656 436,334 Total revenues $ 334,656 $ 436,334 |
Schedule of contract assets included in accounts receivable | (in thousands) March 31, 2019 December 31, March 31, 2018 December 31, Unbilled trade receivables $ 90,539 $ 56,408 $ 79,688 $ 68,494 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
EARNINGS PER SHARE | |
Schedule of reconciliation of weighted average shares outstanding | Three months ended March 31, (In thousands) 2019 2018 Net (loss) income available for stockholders: $ (739 ) $ 52,130 Less: Adjustments for earnings attributable to participating securities (225 ) (591 ) Net (loss) income used in calculating earnings per share $ (964 ) $ 51,539 Weighted average shares outstanding (including participating securities) 215,041 215,877 Adjustment for participating securities (2,550 ) (2,584 ) Shares used in calculating basic and diluted earnings per share 212,491 213,293 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
STOCK-BASED COMPENSATION | |
Schedule of stock-based employee compensation expense | Three months ended March 31, (in thousands) 2019 2018 Pre-tax expense $ 2,452 $ 2,555 After tax expense $ 1,851 $ 1,929 |
Schedule of changes in non-vested restricted shares | Shares Weighted Average Non-vested shares at December 31, 2018 2,352,150 $ 17.15 Granted 858,150 11.39 Vested (614,903 ) 14.71 Forfeited (14,910 ) 15.50 Non-vested shares at March 31, 2019 2,580,487 $ 13.21 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
BUSINESS SEGMENT INFORMATION | |
Schedule of operating segment revenues by major service lines | Three months ended March 31, (in thousands) 2019 2018 Technical Services: Pressure Pumping $ 147,759 $ 256,155 Downhole Tools 109,671 93,041 Coiled Tubing 20,178 25,196 Nitrogen 11,308 11,431 Snubbing 3,463 3,973 All other 21,700 29,267 Total Technical Services $ 314,079 $ 419,063 Support Services: Rental Tools $ 13,936 $ 10,020 All other 6,641 7,251 Total Support Services $ 20,577 $ 17,271 Total revenues $ 334,656 $ 436,334 |
Schedule of revenues are presented based on the location of the use of the product or service | Three months ended March 31, (in thousands) 2019 2018 United States revenues $ 313,968 $ 417,385 International revenues 20,688 18,949 Total revenues $ 334,656 $ 436,334 |
Schedule of segment reporting information by segment | Three months ended March 31, (in thousands) 2019 2018 Revenues: Technical Services $ 314,079 $ 419,063 Support Services 20,577 17,271 Total revenues $ 334,656 $ 436,334 Operating (loss) income: Technical Services $ (4,457 ) $ 65,005 Support Services 3,137 (905 ) Corporate (4,345 ) (4,665 ) Gain on disposition of assets, net 3,504 1,363 Total operating (loss) income $ (2,161 ) $ 60,798 Interest expense (89 ) (105 ) Interest income 800 402 Other income , net 445 5,395 (Loss) income before income taxes $ (1,005 ) $ 66,490 As of and for the three months ended Technical Support Corporate Total (in thousands) Depreciation and amortization $ 39,902 $ 2,511 $ 92 $ 42,505 Capital expenditures 59,889 2,069 322 62,280 Identifiable assets $ 969,036 $ 82,111 $ 175,345 $ 1,226,492 As of and for the three months ended Technical Support Corporate Total (in thousands) Depreciation and amortization $ 33,937 $ 3,432 $ 111 $ 37,480 Capital expenditures 48,551 1,406 525 50,482 Identifiable assets $ 933,979 $ 73,801 $ 173,237 $ 1,181,017 |
EMPLOYEE BENEFIT PLAN (Tables)
EMPLOYEE BENEFIT PLAN (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
EMPLOYEE BENEFIT PLAN | |
Schedule of net periodic benefit cost and related components | Three months ended (in thousands) 2019 2018 Interest cost $ 490 $ 458 Expected return on plan assets (650 ) (709 ) Amortization of net losses 230 206 Net periodic benefit cost (credit) $ 70 $ (45 ) |
Schedule of trading gains (losses) related to SERP assets | Three months ended (in thousands) 2019 2018 Unrealized gains (losses), net $ 2,852 $ (486 ) |
NOTES PAYABLE TO BANKS (Tables)
NOTES PAYABLE TO BANKS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
NOTES PAYABLE TO BANKS | |
Schedule of interest incurred on unused portion of credit facility and amortization of loan costs | Three months ended March 31, (in thousands) 2019 2018 Interest incurred $ 89 $ 103 Interest paid 62 62 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE DISCLOSURES | |
Schedule of valuation of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at March 31, 2019 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 248 $ 248 $ — $ — Investments measured at net asset value $ 25,668 Fair Value Measurements at December 31, 2018 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Equity securities $ 211 $ 211 $ — $ — Investments measured at net asset value $ 22,815 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
Schedule of accumulated other comprehensive (loss) income | Pension Foreign Total Balance at December 31, 2018 $ (15,878 ) $ (2,868 ) $ (18,746 ) Change during the period: Before-tax amount — 98 98 Adoption of accounting standard (Note 2) (2,732 ) (2,732 ) Reclassification adjustment, net of taxes: Amortization of net loss (1) 173 — 173 Total activity for the period (2,559 ) 98 (2,461 ) Balance at March 31, 2019 $ (18,437 ) $ (2,770 ) $ (21,207 ) (1) Reported as part of selling, general and administrative expenses. Pension Unrealized Foreign Total Balance at December 31, 2017 $ (14,470 ) $ 15 $ (2,247 ) $ (16,702 ) Change during the period: Before-tax amount — (15 ) (481 ) (496 ) Tax benefit — — — — Reclassification adjustment, net of taxes: Amortization of net loss (1) 173 — — 173 Total activity for the period 173 (15 ) (481 ) (323 ) Balance at March 31, 2018 $ (14,297 ) $ — $ (2,728 ) $ (17,025 ) (1) Reported as part of selling, general and administrative expenses. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
LEASES | |
Schedule of operating leased assets and liabilities | (in thousands) Classification on the Consolidated Balance Sheet March 31, 2019 Assets: Operating lease assets Operating lease right-of-use assets $ 45,854 Liabilities: Current – operating leases Current portion of operating leases $ 12,547 Non-current – operating leases Long-term operating lease liabilities 34,348 Total lease liabilities $ 46,895 |
Schedule of operating lease expense | (in thousands) Classification on the Consolidated Three months ended Operating lease cost Selling, general and administrative expenses $ 3,974 Short-term lease cost Selling, general and administrative expenses 1,774 Variable lease cost Selling, general and administrative expenses 26 Sublease income Selling, general and administrative expenses (18 ) Total lease cost $ 5,756 |
Schedule of lease cost | Three months ended Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 3,468 ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 6,132 Weighted average remaining lease term – operating leases 5.2 years Weighted average discount rate – operating leases 3.74 % |
Schedule of maturity of lease liabilities | Maturity of lease liabilities (in thousands) Operating 2019 (excluding the three months ended March 31, 2019) $ 11,254 2020 11,630 2021 8,996 2022 6,287 2023 3,868 Thereafter 10,861 Total lease payments 52,896 Less: Amounts representing interest (6,001 ) Present value of lease liabilities $ 46,895 |
RECENT ACCOUNTING STANDARDS (De
RECENT ACCOUNTING STANDARDS (Detail Textuals) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right of use asset and liabilities | $ 44,000 | |
Adoption of accounting standards | 356 | |
Accumulated Other Comprehensive (Loss) Income | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adoption of accounting standards | $ 2,732 | $ 15 |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 334,656 | $ 436,334 |
Oilfield services transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Oilfield services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 334,656 | $ 436,334 |
REVENUES (Details 1)
REVENUES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
REVENUES | ||||
Unbilled trade receivables | $ 90,539 | $ 56,408 | $ 79,688 | $ 68,494 |
REVENUES (Detail Textuals)
REVENUES (Detail Textuals) | 3 Months Ended |
Mar. 31, 2019 | |
REVENUES | |
Term of specified services and collection | 30 to 60 days |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of weighted average shares outstanding (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
EARNINGS PER SHARE | ||
Net (loss) income available for stockholders: | $ (739) | $ 52,130 |
Less: Adjustments for earnings attributable to participating securities | (225) | (591) |
Net (loss) income used in calculating earnings per share | $ (964) | $ 51,539 |
Weighted average shares outstanding (including participating securities) | 215,041 | 215,877 |
Adjustment for participating securities | (2,550) | (2,584) |
Shares used in calculating basic and diluted earnings per share | 212,491 | 213,293 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-based employee compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
STOCK-BASED COMPENSATION | ||
Pre-tax expense | $ 2,452 | $ 2,555 |
After tax expense | $ 1,851 | $ 1,929 |
STOCK-BASED COMPENSATION - Non-
STOCK-BASED COMPENSATION - Non-vested restricted shares activity (Details 1) - Restricted Stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Non-vested shares at December 31, 2018 | shares | 2,352,150 |
Granted | shares | 858,150 |
Vested | shares | (614,903) |
Forfeited | shares | (14,910) |
Non-vested shares at March 31, 2019 | shares | 2,580,487 |
Weighted Average Grant-Date Fair Value | |
Non-vested shares at December 31, 2018 | $ / shares | $ 17.15 |
Granted | $ / shares | 11.39 |
Vested | $ / shares | 14.71 |
Forfeited | $ / shares | 15.50 |
Non-vested shares at March 31, 2019 | $ / shares | $ 13.21 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Detail Textuals) - 2014 Stock Incentive Plan - shares | 1 Months Ended | |
Apr. 30, 2014 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reserved shares of common stock | 8,000,000 | |
Term of reserved shares | 10 years | |
Shares available for grant | 4,556,744 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Detail Textuals 1) - Restricted Stock - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total fair value of shares vested | $ 6,934,000 | $ 16,190,000 |
Tax benefits for compensation expense for restricted stock | 510,000 | $ 1,604,000 |
Unrecognized compensation cost related to non-vested restricted shares | $ 50,820,000 | |
Unrecognized compensation cost related to non-vested restricted shares recognized period | 4 years 2 months |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Operating segment revenues by major service lines (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 334,656 | $ 436,334 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 334,656 | 436,334 |
Operating Segments | Technical Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 314,079 | 419,063 |
Operating Segments | Pressure Pumping | ||
Segment Reporting Information [Line Items] | ||
Revenues | 147,759 | 256,155 |
Operating Segments | Downhole Tools | ||
Segment Reporting Information [Line Items] | ||
Revenues | 109,671 | 93,041 |
Operating Segments | Coiled Tubing | ||
Segment Reporting Information [Line Items] | ||
Revenues | 20,178 | 25,196 |
Operating Segments | Nitrogen | ||
Segment Reporting Information [Line Items] | ||
Revenues | 11,308 | 11,431 |
Operating Segments | Snubbing | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,463 | 3,973 |
Operating Segments | All Other Technical Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 21,700 | 29,267 |
Operating Segments | Support Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 20,577 | 17,271 |
Operating Segments | Rental Tools | ||
Segment Reporting Information [Line Items] | ||
Revenues | 13,936 | 10,020 |
Operating Segments | All Other Support Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 6,641 | $ 7,251 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Summary of selected information between United States and all international locations (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 334,656 | $ 436,334 |
United States Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenues | 313,968 | 417,385 |
International Revenues | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 20,688 | $ 18,949 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Summary of information with respect to RPC's business segments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | [1] | |
Revenues: | ||||
Revenues | $ 334,656 | $ 436,334 | ||
Operating (loss) income: | ||||
Total operating (loss) income | (2,161) | 60,798 | ||
Interest expense | (89) | (105) | ||
Interest income | 800 | 402 | ||
Other income, net | 445 | 5,395 | ||
(Loss) income before income taxes | (1,005) | 66,490 | ||
Depreciation and amortization | 42,505 | 37,480 | ||
Capital expenditures | 62,280 | 50,482 | ||
Identifiable assets | 1,226,492 | 1,181,017 | $ 1,199,580 | |
Operating Segments | ||||
Revenues: | ||||
Revenues | 334,656 | 436,334 | ||
Operating (loss) income: | ||||
Total operating (loss) income | (2,161) | 60,798 | ||
Operating Segments | Technical Services | ||||
Revenues: | ||||
Revenues | 314,079 | 419,063 | ||
Operating (loss) income: | ||||
Total operating (loss) income | (4,457) | 65,005 | ||
Depreciation and amortization | 39,902 | 33,937 | ||
Capital expenditures | 59,889 | 48,551 | ||
Identifiable assets | 969,036 | 933,979 | ||
Operating Segments | Support Services | ||||
Revenues: | ||||
Revenues | 20,577 | 17,271 | ||
Operating (loss) income: | ||||
Total operating (loss) income | 3,137 | (905) | ||
Depreciation and amortization | 2,511 | 3,432 | ||
Capital expenditures | 2,069 | 1,406 | ||
Identifiable assets | 82,111 | 73,801 | ||
Corporate | ||||
Operating (loss) income: | ||||
Total operating (loss) income | (4,345) | (4,665) | ||
Depreciation and amortization | 92 | 111 | ||
Capital expenditures | 322 | 525 | ||
Identifiable assets | 175,345 | 173,237 | ||
Gain on disposition of assets, net | ||||
Operating (loss) income: | ||||
Total operating (loss) income | $ 3,504 | $ 1,363 | ||
[1] | Note 1 |
INVENTORIES (Detail Textuals)
INVENTORIES (Detail Textuals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
INVENTORIES | ||||
Raw materials, parts and supplies of inventories | $ 124,464 | $ 130,083 | [1] | $ 130,083 |
[1] | Note 1 |
EMPLOYEE BENEFIT PLAN - Net per
EMPLOYEE BENEFIT PLAN - Net periodic benefit cost and related components (Details) - Multiple Employers Retirement Income Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 490 | $ 458 |
Expected return on plan assets | (650) | (709) |
Amortization of net losses | 230 | 206 |
Net periodic benefit cost (credit) | $ 70 | $ (45) |
EMPLOYEE BENEFIT PLAN - Unreali
EMPLOYEE BENEFIT PLAN - Unrealized gains, net related to the SERP assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Non-qualified Supplemental Retirement Plan ("SERP") | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrealized gains (losses), net | $ 2,852 | $ (486) |
EMPLOYEE BENEFIT PLAN (Detail T
EMPLOYEE BENEFIT PLAN (Detail Textuals) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Non-qualified Supplemental Retirement Plan ("SERP") | ||
Defined Benefit Plan Disclosure [Line Items] | ||
SERP assets | $ 25,668,000 | $ 22,815,000 |
NOTES PAYABLE TO BANKS - Intere
NOTES PAYABLE TO BANKS - Interest incurred including facility fees on unused portion of revolving credit facility and amortization of loan costs (Details) - Revolving credit facility - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Interest incurred | $ 89 | $ 103 |
Interest paid | $ 62 | $ 62 |
NOTES PAYABLE TO BANKS (Detail
NOTES PAYABLE TO BANKS (Detail Textuals) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revolving credit facility | |
Line of Credit Facility [Line Items] | |
Amount of credit facility | $ 125 |
Borrowing capacity description | Company entered into Amendment No. 4 to Credit Agreement (the "Amendment"). The Amendment, among other matters, replaces the existing minimum tangible net worth covenant with the following covenants: (i) when RPC's trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, a maximum consolidated leverage ratio of 2.50:1.00 and a minimum debt service coverage ratio of 2.00:1.00, and (ii) otherwise, a minimum tangible net worth covenant of no less than $600 million. The Amendment additionally (1) extends the Credit Agreement maturity date from January 17, 2019 to July 26, 2023, (2) eliminates any borrowing base limitations on revolving loans when RPC's trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, (3) reduces the commitment fees payable by RPC by 7.5 basis points at each pricing level and (4) reduces the letter of credit sublimit from $50 million to $35 million. As of March 31, 2019, the Company was in compliance with these covenants. |
Description of variable rate basis of debt instrument | Revolving loans under the amended revolving credit facility bear interest at one of the following two rates at the Company's election:the Eurodollar Rate, which is the rate per annum equal to the London Interbank Offering Rate ("LIBOR"); plus, a margin ranging from 1.125% to 2.125%, based on a quarterly consolidated leverage ratio calculation; or the Base Rate, which is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) Bank of America's publicly announced "prime rate," and (c) the Eurodollar Rate plus 1.00%; in each case plus a margin that ranges from 0.125% to 1.125% based on a quarterly consolidated leverage ratio calculation. |
Revolving credit facility | Minimum | |
Line of Credit Facility [Line Items] | |
Fees on unused portion of facility | 0.15% |
Revolving credit facility | Maximum | |
Line of Credit Facility [Line Items] | |
Fees on unused portion of facility | 0.25% |
Revolving credit facility | Option 1 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
Description of reference rate basis | Federal Funds Rate |
Revolving credit facility | Option 1 | Minimum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.125% |
Revolving credit facility | Option 1 | Maximum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.125% |
Revolving credit facility | Option 1 B | |
Line of Credit Facility [Line Items] | |
Description of reference rate basis | prime rate |
Revolving credit facility | Option 1 B | Minimum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.125% |
Revolving credit facility | Option 1 B | Maximum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.125% |
Revolving credit facility | Option 1 C | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.00% |
Description of reference rate basis | Eurodollar Rate |
Revolving credit facility | Option 1 C | Minimum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.125% |
Revolving credit facility | Option 1 C | Maximum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.125% |
Letter of credit subfacility | |
Line of Credit Facility [Line Items] | |
Amount of credit facility | $ 35 |
Swingline subfacility | |
Line of Credit Facility [Line Items] | |
Amount of credit facility | $ 35 |
NOTES PAYABLE TO BANKS (Detai_2
NOTES PAYABLE TO BANKS (Detail Textuals 1) - Revolving credit facility - Option 2 - Eurodollar Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Line of Credit Facility [Line Items] | |
Description of reference rate basis | London Interbank Offering Rate ("LIBOR") |
Minimum | |
Line of Credit Facility [Line Items] | |
Range of margin based on quarterly debt covenant calculation | 1.125% |
Maximum | |
Line of Credit Facility [Line Items] | |
Range of margin based on quarterly debt covenant calculation | 2.125% |
NOTES PAYABLE TO BANKS (Detai_3
NOTES PAYABLE TO BANKS (Detail Textuals 2) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revolving credit facility | |
Line Of Credit Facility [Line Items] | |
Loan origination fees and other debt related costs | $ 3.3 |
Loan origination cost net of amortization classified as part of non-current other assets | 0.3 |
Letter of credit facility | |
Line Of Credit Facility [Line Items] | |
Letters of credit outstanding amount | 19.5 |
Available credit facility | $ 105.5 |
NOTES PAYABLE TO BANKS (Detai_4
NOTES PAYABLE TO BANKS (Detail Textuals 3) - Amended revolving credit facility $ in Millions | 1 Months Ended |
Jul. 26, 2018USD ($) | |
Option 1 | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (i) when RPC's trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, a maximum consolidated leverage ratio of 2.50:1.00 and a minimum debt service coverage ratio of 2.00:1.00 |
Maximum consolidated leverage ratio | 2.50:1.00 |
Minimum debt service coverage ratio | 2.00:1.00 |
Option 2 | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (ii) otherwise, a minimum tangible net worth covenant of no less than $600 million. |
Minimum tangible net worth | $ 600 |
Option 2A | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | The Amendment additionally (1) extends the Credit Agreement maturity date from January 17, 2019 to July 26, 2023 |
Option 2B | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (2) eliminates any borrowing base limitations on revolving loans when RPC's trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million |
Option 2C | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (3) reduces the commitment fees payable by RPC by 7.5 basis points at each pricing level |
Reduction in commitment fees payable | 7.50% |
Option 2D | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (4) reduces the letter of credit sublimit from $50 million to $35 million. As of March 31, 2019, the Company was in compliance with these covenants. |
Borrowing base of line of credit | $ 35 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
INCOME TAXES | |||
Effective tax rate provision | 26.50% | 21.60% | |
Discrete benefit adjustment | $ 7.5 |
FAIR VALUE DISCLOSURES - Valuat
FAIR VALUE DISCLOSURES - Valuation of financial instruments measured at fair value on a recurring basis (Details) - Fair value on a recurring basis - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Equity securities | $ 248 | $ 211 |
Investments measured at net asset value | 25,668 | 22,815 |
Quoted prices in active markets for identical assets (Level 1) | ||
Assets: | ||
Equity securities | 248 | 211 |
Significant other observable inputs (Level 2) | ||
Assets: | ||
Equity securities | 0 | 0 |
Significant unobservable inputs (Level 3) | ||
Assets: | ||
Equity securities | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Summary of components of accumulated other comprehensive (loss) income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | [1] | $ (18,746) | |
Change during the period: | |||
Adoption of accounting standard (Note 2) | (356) | ||
Reclassification adjustment, net of taxes: | |||
Balance | (21,207) | ||
Pension Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (15,878) | $ (14,470) | |
Change during the period: | |||
Before-tax amount | 0 | 0 | |
Adoption of accounting standard (Note 2) | (2,732) | 0 | |
Reclassification adjustment, net of taxes: | |||
Amortization of net loss | [2] | 173 | 173 |
Total activity for the period | (2,559) | 173 | |
Balance | (18,437) | (14,297) | |
Unrealized Gain (Loss) On Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 15 | ||
Change during the period: | |||
Before-tax amount | (15) | ||
Tax benefit | 0 | ||
Reclassification adjustment, net of taxes: | |||
Amortization of net loss | [2] | 0 | |
Total activity for the period | (15) | ||
Balance | 0 | ||
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (2,868) | (2,247) | |
Change during the period: | |||
Before-tax amount | 98 | (481) | |
Tax benefit | 0 | ||
Reclassification adjustment, net of taxes: | |||
Amortization of net loss | [2] | 0 | 0 |
Total activity for the period | 98 | (481) | |
Balance | (2,770) | (2,728) | |
Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (18,746) | (16,702) | |
Change during the period: | |||
Before-tax amount | 98 | (496) | |
Tax benefit | 0 | ||
Adoption of accounting standard (Note 2) | (2,732) | (15) | |
Reclassification adjustment, net of taxes: | |||
Amortization of net loss | [2] | 173 | 173 |
Total activity for the period | (2,461) | (323) | |
Balance | $ (21,207) | $ (17,025) | |
[1] | Note 1 | ||
[2] | Reported as part of selling, general and administrative expenses. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Detail Textuals) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Adoption of accounting standards | $ (356) | |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Adoption of accounting standards | $ (2,732) | $ (15) |
LEASES - Assets and liabilities
LEASES - Assets and liabilities related to operating leases recorded on balance sheet (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Assets: | |
Operating lease right-of-use assets | $ 45,854 |
Liabilities: | |
Current - operating leases | 12,547 |
Non-current - operating leases | 34,348 |
ASU No. 2016-02, Leases (Topic 842) | |
Liabilities: | |
Total lease liabilities | $ 46,895 |
LEASES - Components of lease ex
LEASES - Components of lease expense (Details 1) - ASU No. 2016-02, Leases (Topic 842) - Selling, general and administrative expenses $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Line Items] | |
Operating lease cost | $ 3,974 |
Short-term lease cost | 1,774 |
Variable lease cost | 26 |
Sublease income | (18) |
Total lease cost | $ 5,756 |
LEASES - Other information (Det
LEASES - Other information (Details 2) - ASU No. 2016-02, Leases (Topic 842) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Line Items] | |
Cash paid for amounts included in the measurement of lease liabilities - operating leases | $ 3,468 |
ROU assets obtained in exchange for operating lease liabilities | $ 6,132 |
Weighted average remaining lease term - operating leases | 5 years 2 months |
Weighted average discount rate - operating leases | 3.74% |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments (Details 3) - ASU No. 2016-02, Leases (Topic 842) $ in Thousands | Mar. 31, 2019USD ($) |
Maturity of lease liabilities | |
2019 (excluding the three months ended March 31, 2019) | $ 11,254 |
2020 | 11,630 |
2021 | 8,996 |
2022 | 6,287 |
2023 | 3,868 |
Thereafter | 10,861 |
Total lease payments | 52,896 |
Less: Amounts representing interest | (6,001) |
Present value of lease liabilities | $ 46,895 |
SUBSEQUENT EVENT (Detail Textua
SUBSEQUENT EVENT (Detail Textuals) - Subsequent Event | 1 Months Ended |
Apr. 23, 2019$ / shares | |
Subsequent Event [Line Items] | |
Dividends payable, date declared | Apr. 23, 2019 |
Cash dividend payable (in dollars per share) | $ 0.05 |
Dividends payable date | Jun. 10, 2019 |
Dividends payable, record date | May 10, 2019 |