Page 1
Fourth Quarter 2023 Earnings Release
Exhibit 99.1
RPC, Inc. Reports Fourth Quarter And Full Year 2023 Financial Results
And Declares Regular Quarterly Cash Dividend
ATLANTA, January 25, 2024 - RPC, Inc. (NYSE: RES) (“RPC” or “the Company”), a leading diversified oilfield services company, announced its unaudited results for the fourth quarter and full year ended December 31, 2023.
* Non-GAAP and adjusted measures, including adjusted operating income, adjusted net income, adjusted earnings per share (diluted), EBITDA and adjusted EBITDA, adjusted EBITDA margin, and free cash flow are reconciled to the most comparable GAAP measures in the appendices of this earnings release.
* Sequential comparisons are versus 3Q:23. The Company believes quarterly sequential comparisons are most useful in assessing industry trends and RPC’s recent financial results. Both sequential and year-over-year comparisons are available in the tables at the end of this earnings release.
Fourth Quarter 2023 Highlights
| ● | Revenues increased 19% sequentially to $394.5 million |
| ● | Net income was $40.3 million, up 120% sequentially, and diluted earnings per share (EPS) was $0.19; net income margin increased 470 basis points sequentially to 10.2% |
| ● | Adjusted EBITDA was $79.5 million, up 53% sequentially; Adjusted EBITDA margin increased 440 basis points sequentially to 20.1% |
| ● | The strong sequential improvement in revenues and profitability resulted from significantly higher pressure pumping fleet utilization compared to the third quarter of 2023 |
Full Year 2023 Highlights
| ● | Revenues increased 1% year-over-year to $1.6 billion |
| ● | Net income was $195.1 million and diluted EPS was $0.90; net income margin was 12.1% |
| ● | Adjusted EBITDA was $374.4 million, with Adjusted EBITDA margin of 23.1% |
| ● | Net cash flow from operating activities was $394.8 million and free cash flow was $213.8 million |
| ● | The Company remained debt-free, paid $34.6 million in dividends and repurchased $21.1 million of common stock in 2023 (including $8.6 million of buyback program repurchases during 4Q:23) |
| ● | The Company acquired the Spinnaker cementing business effective July 1, expanding RPC’s existing cementing operations and customer relationships |
Management Commentary
“We closed out 2023 with a strong sequential improvement in fourth quarter financial results,” stated Ben M. Palmer, RPC's President and Chief Executive Officer. “As anticipated, the fourth quarter began with a solid increase in pressure pumping activity. However, as oil prices fell toward the end of the year, customer demand followed suit and we experienced a more significant holiday season slowdown than originally expected. Looking forward, we have a new Tier 4 dual-fuel fleet on order and anticipate placing it in service by the end of the second quarter of 2024, replacing a Tier 2 diesel fleet as we upgrade our asset base without adding to pressure pumping industry capacity.
Page 2
Fourth Quarter 2023 Earnings Release
“We have over $220 million in cash on the balance sheet, are highly liquid, debt-free, and capable of navigating an uncertain environment. This solid financial position also supports targeted organic investments, as well as continued capital returns to our shareholders through both dividends and opportunistic share buybacks. With the Spinnaker integration essentially complete, we are actively assessing additional acquisition opportunities to bolster selected service lines, increase our scale, and enhance our growth outlook,” concluded Palmer.
Selected Industry Data (Source: Baker Hughes, Inc., U.S. Energy Information Administration)
| | | | | | | | | | | | | | | | | | | | |
|
| 4Q:23 |
| 3Q:23 |
| Change |
| % Change |
| 4Q:22 |
| Change |
| % Change |
| |||||
U.S. rig count (avg) |
| | 622 |
| | 649 |
| | (27) |
| (4.2) | % | | 776 |
| | (154) |
| (19.8) | % |
Oil price ($/barrel) | | $ | 78.52 | | $ | 82.17 | | $ | (3.65) |
| (4.4) | % | $ | 82.67 | | $ | (4.15) |
| (5.0) | % |
Natural gas ($/Mcf) | | $ | 2.74 | | $ | 2.59 | | $ | 0.15 |
| 5.8 | % | $ | 5.55 | | $ | (2.81) |
| (50.6) | % |
4Q:23 Consolidated Financial Results (Sequential Comparisons versus 3Q:23)
Revenues were $394.5 million, up 19%. Revenues increased primarily due to a significant rebound in pressure pumping activity compared to 3Q:23. However, growth was constrained by lower-than-expected activity during the December holiday season, which may have been influenced by declining oil prices throughout the quarter.
Cost of revenues, which excludes depreciation and amortization, was $279.4 million, up from $239.1 million. These costs increased as a function of revenue growth during the quarter.
Selling, general and administrative expenses were $38.1 million, down from $42.0 million. The decrease in expenses is due in part to a reduction in incentive compensation and other cost control measures.
Gain on disposition of assets was $1.6 million, reflecting asset sales through the Company’s normal course of operations.
Interest income totaled $2.6 million, reflecting higher cash balances.
Income tax provision was $12.3 million, or 23.4% of income before income taxes.
Net income and diluted EPS were $40.3 million and $0.19, respectively, up from $18.3 million and $0.08, respectively, in 3Q:23. Net income margin increased 470 basis points sequentially to 10.2%.
Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) was $79.5 million, up from $51.9 million; adjusted EBITDA margin increased 440 basis points sequentially to 20.1%.
Non-GAAP adjustments: there were no adjustments to GAAP performance measures in 4Q:23, other than those necessary to calculate EBITDA. However, in the first and second quarters of 2023, the Company reported pension settlement charges totaling $18.3 million, or $0.07 of diluted EPS, which were excluded when calculating adjusted financial measures (see Appendices A, B and C).
Page 3
Fourth Quarter 2023 Earnings Release
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents were $223.3 million at the end of 2023, with no outstanding borrowings under the Company’s $100 million revolving credit facility.
Net cash provided by operating activities and free cash flow were $394.8 million and $213.8 million, respectively, for the full year 2023.
Payment of dividends totaled $34.6 million in 2023. The Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable March 11, 2024, to common stockholders of record at the close of business on February 9, 2024.
Share repurchases totaled $21.1 million in 2023. Buybacks under the Company’s share repurchase program totaled $8.6 million during 4Q:23 (1,200,000 shares) and $18.7 million (2,469,056 shares) for the full year.
Segment Operations: Sequential Comparisons (versus 3Q:23)
Technical Services performs value-added completion, production and maintenance services directly to a customer’s well. These services include pressure pumping, downhole tools and services, coiled tubing, cementing, and other offerings.
| - | Revenues were $371.1 million, up 22% |
| - | Operating income was $46.4 million, up 146% |
| - | Results were driven primarily by higher pressure pumping revenues, the largest service line within Technical Services, and the related leverage of fixed personnel costs |
Support Services provides equipment for customer use or services to assist customer operations, including rental of tubulars and related tools, pipe inspection and storage services, and oilfield training services.
| - | Revenues were $23.5 million, down 14% |
| - | Operating income was $5.0 million, down 27% |
| - | Results were driven by lower activity in rental tools and the high fixed-cost nature of these service lines |
| | | | | | | | | | | | | | | |
| | Three Months Ended |
| Year Ended | |||||||||||
| | December 31, | | September 30, | | December 31, | | December 31, | |||||||
(In thousands) |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 | |||||
| | | (Unaudited) |
| | (Unaudited) |
| | (Unaudited) |
| | (Unaudited) | | | |
Revenues: |
| | | | | | | | | | | |
| |
|
Technical Services | | $ | 371,059 | | $ | 303,069 | | $ | 458,135 | | $ | 1,516,137 | | $ | 1,516,363 |
Support Services | |
| 23,472 | |
| 27,348 | |
| 23,895 | |
| 101,337 | |
| 85,399 |
Total revenues | | $ | 394,531 | | $ | 330,417 | | $ | 482,030 | | $ | 1,617,474 | | $ | 1,601,762 |
Operating income: | |
|
| |
|
| |
|
| |
|
| |
|
|
Technical Services | | $ | 46,442 | | $ | 18,912 | | $ | 110,529 | | $ | 245,904 | | $ | 281,622 |
Support Services | |
| 5,036 | |
| 6,861 | |
| 6,703 | |
| 26,461 | |
| 18,095 |
Corporate expenses | |
| (3,880) | |
| (4,840) | |
| (4,500) | |
| (18,473) | |
| (17,660) |
Pension settlement charges | |
| — | |
| — | |
| (2,921) | |
| (18,286) | |
| (2,921) |
Gain on disposition of assets, net | |
| 1,615 | |
| 1,778 | |
| 2,509 | |
| 9,344 | |
| 8,804 |
Total operating income | | $ | 49,213 | | $ | 22,711 | | $ | 112,320 | | $ | 244,950 | | $ | 287,940 |
Interest expense | |
| (95) | |
| (101) | |
| (71) | |
| (341) | |
| (614) |
Interest income | |
| 2,596 | |
| 1,450 | |
| 699 | |
| 8,599 | |
| 1,171 |
Other income, net | |
| 839 | |
| 804 | |
| 619 | |
| 3,035 | |
| 1,135 |
Income before income taxes | | $ | 52,553 | | $ | 24,864 | | $ | 113,567 | | $ | 256,243 | | $ | 289,632 |
Page 4
Fourth Quarter 2023 Earnings Release
Conference Call Information
RPC, Inc. will hold a conference call today, January 25, 2024, at 9:00 a.m. ET to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of RPC, Inc.’s website at www.rpc.net. The live conference call can also be accessed by calling (888) 440-5966, or (646) 960-0125 for international callers, and use conference ID number 9842359. For those not able to attend the live conference call, a replay will be available in the investor relations section of RPC, Inc.’s website beginning approximately two hours after the call and for a period of 90 days.
About RPC
RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of Mexico, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC’s investor website can be found at www.rpc.net.
Forward Looking Statements
Certain statements and information included in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management’s beliefs, expectations or hopes. In particular, such statements include, without limitation: our expectation to place a new Tier 4 DGB pressure pumping fleet in service by the end of the second quarter of 2024; our capability to navigate an uncertain environment; our financial ability to support investments in the business and return capital to shareholders; and, our intention to assess acquisition opportunities to bolster selected service lines, increase our scale, and enhance our growth outlook. Risk factors that could cause such future events not to occur as expected include the following: the price of oil and natural gas and overall performance of the U.S. economy, both of which can impact capital spending by our customers and demand for our services; business interruptions due to adverse weather conditions; changes in the competitive environment of our industry; and our ability to identify and complete acquisitions. Additional factors that could cause the actual results to differ materially from management’s projections, forecasts, estimates, and expectations are contained in RPC's Form 10-K for the year ended December 31, 2022.
For information about RPC, Inc., please contact:
Michael L. Schmit, Chief Financial Officer
(404) 321-2140
irdept@rpc.net
Mark Chekanow, CFA, Vice President Investor Relations
(404) 419-3809
mark.chekanow@rpc.net
Page 5
Fourth Quarter 2023 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)
| | | | | | | | | | | | | | | |
| | Three Months Ended |
| Year Ended | |||||||||||
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, | |||||
|
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 | |||||
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | |
| | | | | | | | | | | | | | | |
REVENUES | | $ | 394,531 | | $ | 330,417 | | $ | 482,030 | | $ | 1,617,474 | | $ | 1,601,762 |
COSTS AND EXPENSES: | |
|
| | |
| | |
| | |
| | |
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) | |
| 279,399 | | | 239,084 | | | 308,571 | | | 1,089,519 | | | 1,088,115 |
Selling, general and administrative expenses | |
| 38,127 | | | 42,012 | | | 38,211 | | | 165,940 | | | 148,573 |
Pension settlement charges | |
| — | | | — | | | 2,921 | | | 18,286 | | | 2,921 |
Depreciation and amortization | |
| 29,407 | | | 28,388 | | | 22,516 | | | 108,123 | | | 83,017 |
Gain on disposition of assets, net | |
| (1,615) | | | (1,778) | | | (2,509) | | | (9,344) | | | (8,804) |
Operating income | |
| 49,213 | | | 22,711 | | | 112,320 | | | 244,950 | | | 287,940 |
Interest expense | |
| (95) | | | (101) | | | (71) | | | (341) | | | (614) |
Interest income | |
| 2,596 | | | 1,450 | | | 699 | | | 8,599 | | | 1,171 |
Other income, net | |
| 839 | | | 804 | | | 619 | | | 3,035 | | | 1,135 |
Income before income taxes | |
| 52,553 | | | 24,864 | | | 113,567 | | �� | 256,243 | | | 289,632 |
Income tax provision | |
| 12,294 | | | 6,547 | | | 26,562 | | | 61,130 | | | 71,269 |
NET INCOME | | $ | 40,259 | | $ | 18,317 | | $ | 87,005 | | $ | 195,113 | | $ | 218,363 |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
EARNINGS PER SHARE | |
|
| |
|
| |
|
| |
|
| |
|
|
Basic | | $ | 0.19 | | $ | 0.08 | | $ | 0.40 | | $ | 0.90 | | $ | 1.01 |
Diluted | | $ | 0.19 | | $ | 0.08 | | $ | 0.40 | | $ | 0.90 | | $ | 1.01 |
| | | | | | | | | | | | | | | |
WEIGHTED AVERAGE SHARES OUTSTANDING | |
|
| |
|
| |
|
| |
|
| |
|
|
Basic | |
| 216,006 | |
| 216,333 | |
| 216,618 | |
| 216,472 | |
| 216,518 |
Diluted | |
| 216,006 | |
| 216,333 | |
| 216,618 | |
| 216,472 | |
| 216,518 |
Page 6
Fourth Quarter 2023 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| | | | | | |
| | (In thousands) | ||||
| | December 31, | | December 31, | ||
|
| 2023 |
| 2022 | ||
| | (Unaudited) | | | | |
ASSETS |
| |
|
| |
|
Cash and cash equivalents | | $ | 223,310 | | $ | 126,424 |
Accounts receivable, net | |
| 324,915 | |
| 416,568 |
Inventories | |
| 110,904 | |
| 97,107 |
Income taxes receivable | |
| 52,269 | |
| 42,403 |
Prepaid expenses | |
| 12,907 | |
| 17,753 |
Other current assets | |
| 2,768 | |
| 3,086 |
Total current assets | |
| 727,073 | |
| 703,341 |
Property, plant and equipment, net | |
| 435,139 | |
| 333,093 |
Operating lease right-of-use assets | |
| 24,537 | |
| 28,864 |
Finance lease right-of-use assets | |
| 1,036 | |
| — |
Goodwill | |
| 50,824 | |
| 32,150 |
Other intangibles, net | |
| 12,825 | |
| 1,084 |
Other assets | |
| 35,411 | |
| 30,481 |
Total assets | | $ | 1,286,845 | | $ | 1,129,013 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
|
| |
|
|
Accounts payable | | $ | 85,036 | | $ | 115,213 |
Accrued payroll and related expenses | |
| 30,956 | |
| 33,161 |
Accrued insurance expenses | |
| 5,340 | |
| 3,232 |
Accrued state, local and other taxes | |
| 4,461 | |
| 4,296 |
Income taxes payable | |
| 275 | |
| 499 |
Unearned revenue | | | 15,743 | | | — |
Pension liabilities | |
| — | |
| 9,610 |
Current portion of operating lease liabilities | |
| 7,367 | |
| 10,728 |
Current portion of finance lease liabilities and finance obligations | | | 375 | | | — |
Accrued expenses and other liabilities | |
| 2,304 | |
| 1,864 |
Total current liabilities | |
| 151,857 | |
| 178,603 |
Long-term accrued insurance expenses | |
| 10,202 | |
| 7,149 |
Long-term retirement plan liabilities | |
| 23,724 | |
| 23,106 |
Long-term operating lease liabilities | |
| 18,600 | |
| 19,517 |
Long-term finance lease liabilities | |
| 819 | |
| — |
Other long-term liabilities | |
| 7,840 | |
| 5,430 |
Deferred income taxes | |
| 51,290 | |
| 37,473 |
Total liabilities | |
| 264,332 | |
| 271,278 |
Common stock | |
| 21,502 | |
| 21,661 |
Capital in excess of par value | |
| — | |
| — |
Retained earnings | |
| 1,003,380 | |
| 856,013 |
Accumulated other comprehensive loss | |
| (2,369) | |
| (19,939) |
Total stockholders' equity | |
| 1,022,513 | |
| 857,735 |
Total liabilities and stockholders' equity | | $ | 1,286,845 | | $ | 1,129,013 |
Page 7
Fourth Quarter 2023 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | |
| | | | | | |
| | (In thousands) | ||||
Years ended December 31, |
| 2023 |
| 2022 | ||
| | | (Unaudited) | | |
|
OPERATING ACTIVITIES | | | | | | |
Net income | | $ | 195,113 | | $ | 218,363 |
Adjustments to reconcile net income to net cash provided by operating activities: |
| | |
| |
|
Depreciation, amortization and other non-cash charges |
| | 108,249 |
| | 83,664 |
Pension settlement charges |
| | 18,286 |
| | 2,921 |
Working capital | | | 57,810 | | | (122,523) |
Other operating activities |
| | 15,305 |
| | 18,861 |
Net cash provided by operating activities |
| | 394,763 |
| | 201,286 |
| | | | | | |
INVESTING ACTIVITIES |
| |
|
| |
|
Capital expenditures |
| | (181,005) |
| | (139,552) |
Proceeds from sale of assets |
| | 18,091 |
| | 15,837 |
Purchase of business |
| | (78,798) |
| | — |
Net cash used for investing activities |
| | (241,712) |
| | (123,715) |
| | | | | | |
FINANCING ACTIVITIES |
| |
|
| |
|
Payment of dividends |
| | (34,562) |
| | (8,645) |
Cash paid for common stock purchased and retired |
| | (21,088) |
| | (918) |
Cash paid for finance lease and finance obligations | | | (515) | | | (24,017) |
Net cash used for financing activities |
| | (56,165) |
| | (33,580) |
| | | | | | |
Net increase in cash and cash equivalents |
| | 96,886 |
| | 43,991 |
Cash and cash equivalents at beginning of period |
| | 126,424 |
| | 82,433 |
Cash and cash equivalents at end of period | | $ | 223,310 | | $ | 126,424 |
Non-GAAP Measures
RPC, Inc. has used the non-GAAP financial measures of adjusted operating income, adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and free cash flow in today's earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting these non-GAAP measures enables investors to compare our operating performance consistently over various time periods net of unusual or non-recurring charges, and in the case of adjusted EBITDA, without regard to changes in our capital structure.
A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.
Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on RPC, Inc.'s investor website, which can be found on the Internet at www.rpc.net.
Page 8
Fourth Quarter 2023 Earnings Release
Appendix A
| | | | | | | | | | | | | | | |
(Unaudited) |
| Three Months Ended |
| Year Ended | |||||||||||
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, | |||||
(In thousands) |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 | |||||
Reconciliation of Operating Income to Adjusted Operating Income | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Operating income | | $ | 49,213 | | $ | 22,711 | | $ | 112,320 | | $ | 244,950 | | $ | 287,940 |
Add: Pension settlement charges | |
| — | |
| — | |
| 2,921 | |
| 18,286 | |
| 2,921 |
Adjusted operating income | | $ | 49,213 | | $ | 22,711 | | $ | 115,241 | | $ | 263,236 | | $ | 290,861 |
Appendix B
| | | | | | | | | | | | | | | |
(Unaudited) | | Three Months Ended |
| Year Ended | |||||||||||
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, | |||||
(In thousands) |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 | |||||
Reconciliation of Net Income to Adjusted Net Income |
| |
|
| |
|
| |
|
| |
|
| |
|
| | | | | | | | | | | | | | | |
Net income | | $ | 40,259 | | $ | 18,317 | | $ | 87,005 | | $ | 195,113 | | $ | 218,363 |
Adjustments: | | | | | | | | | | | | | | | |
Add: Pension settlement charges, before taxes | |
| — | |
| — | |
| 2,921 | |
| 18,286 | |
| 2,921 |
Less: Tax effect of pension settlement charges | |
| — | |
| — | |
| (719) | |
| (4,370) | |
| (719) |
Total adjustments, net of tax | |
| — | |
| — | |
| 2,202 | |
| 13,916 | |
| 2,202 |
Adjusted net income | | $ | 40,259 | | $ | 18,317 | | $ | 89,207 | | $ | 209,029 | | $ | 220,565 |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
(Unaudited) | | Three Months Ended |
| Year Ended | |||||||||||
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, | |||||
|
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 | |||||
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share | | | | | | | | | | | | | | | |
|
| | |
| | |
| | |
| | |
| | |
Diluted earnings per share | | $ | 0.19 | | $ | 0.08 | | $ | 0.40 | | $ | 0.90 | | $ | 1.01 |
Adjustments: | |
|
| |
|
| |
|
| |
|
| |
|
|
Add: Pension settlement charges, net of tax | | $ | — | | $ | — | | $ | 0.01 | | $ | 0.09 | | $ | 0.01 |
Less: Tax effect of pension settlement charges | | | — | | | — | | | — | | | (0.02) | | | — |
Adjusted diluted earnings per share | | $ | 0.19 | | $ | 0.08 | | $ | 0.41 | | $ | 0.97 | | $ | 1.02 |
| | | | | | | | | | | | | | | |
Weighted average shares outstanding (in thousands) | |
| 216,006 | |
| 216,333 | |
| 216,618 | |
| 216,472 | |
| 216,518 |
Page 9
Fourth Quarter 2023 Earnings Release
Appendix C
| | | | | | | | | | | | | | | |
(Unaudited) | | Three Months Ended |
| Year Ended | |||||||||||
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, | |||||
(In thousands) |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 | |||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
| |
|
| |
|
| |
|
| |
|
| |
|
Net income | | $ | 40,259 | | $ | 18,317 | | $ | 87,005 | | $ | 195,113 | | $ | 218,363 |
Adjustments: | | | | | | | | | | | | | | | |
Add: Income tax provision | |
| 12,294 | |
| 6,547 | |
| 26,562 | |
| 61,130 | |
| 71,269 |
Add: Interest expense | |
| 95 | |
| 101 | |
| 71 | |
| 341 | |
| 614 |
Add: Depreciation and amortization | |
| 29,407 | |
| 28,388 | |
| 22,516 | |
| 108,123 | |
| 83,017 |
Less: Interest income | |
| 2,596 | |
| 1,450 | |
| 699 | |
| 8,599 | |
| 1,171 |
EBITDA | | $ | 79,459 | | $ | 51,903 | | $ | 135,455 | | $ | 356,108 | | $ | 372,092 |
Add: Pension settlement charges | |
| — | |
| — | |
| 2,921 | |
| 18,286 | |
| 2,921 |
Adjusted EBITDA | | $ | 79,459 | | $ | 51,903 | | $ | 138,376 | | $ | 374,394 | | $ | 375,013 |
| | | | | | | | | | | | | | | |
Net income margin | | | 10.2% | | | 5.5% | | | 18.0% | | | 12.1% | | | 13.6% |
| | | | | | | | | | | | | | | |
Adjusted EBITDA margin | | | 20.1% | | | 15.7% | | | 28.7% | | | 23.1% | | | 23.4% |
Appendix D
| | | | | | |
(Unaudited) | | | ||||
| | Year Ended | ||||
(In thousands) |
| 2023 |
| 2022 | ||
Reconciliation of Operating Cash Flow to Free Cash Flow |
| |
|
| |
|
Net cash provided by operating activities | | $ | 394,763 | | $ | 201,286 |
Capital expenditures | | | (181,005) | | | (139,552) |
Free cash flow | | $ | 213,758 | | $ | 61,734 |