RES - Earnings call transcript Q1 2020

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Operator

Good morning and thank you for joining us for RPC, Incorporated First Quarter 2020 Financial Earnings Conference Call. Today’s call will be hosted by Rick Hubbell, President and CEO; and Ben Palmer, Chief Financial Officer. Also present is Jim Landers, Vice President of Corporate Finance.

At this time, all participants are in a listen-only mode. [Operator Instructions] I would like to advise everyone that this conference call is being recorded.

started the us disclaimer. get will by forward-looking reading Jim

Jim Landers

morning Thank good you and everyone.

our want we’re today, that we are call Before begin facts. I a things to about not historical mention in talk to our to company, going few that order you remind

statements with be you risks. unknown along of issued XXXX forward-looking to this refer be our other that made I’d call press public today, and the outline Some nature of and known on XX-K and those could to release in our reflect that will a number filings like risks.

which found can All website of be at www.rpc.net. RPC’s on

share, In non-GAAP operating adjusted and and measures conference measures loss, release today’s performance. EBITDA. operating we’ll per These non-GAAP earnings loss, be adjusted several of net are EBITDA, referring to adjusted call loss adjusted

various these us because non-GAAP consistently today compare performance non-recurring periods measures time using items. they of to We’re allow without to regard over

EBITDA revolving financial required with to to compliance addition, facility. In credit use RPC’s report our under covenants

Our are press which financial loss share, website per of release financial and loss loss, reconciliations our to measures. operating measures today nearest net GAAP and the these non-GAAP contain

review seeing how interested these are in disclosures, calculated. are Please they if you

received our have for our for you please release visit not If copy. reason, website any www.rpc.net at again press a

to I Hubbell. over now will turn CEO, this our Rick and President call

Rick Hubbell

Jim, thank you. first This morning we issued our RPC’s quarter earnings press XXXX. release for

customers. improved due as We several more worked to pumping utilization generated results during line streamlined a financial and we pleased particularly quarter were footprint. efficiently quarter, with smaller service for including first geographic the the high During this the pressure operations, progress

employees, RPC operational facilities overshadow to strict while and after the procedures the first fourth existing were safety improvements. of pandemic, the the awarded instituted OPEC combined quarter customers locations. disputes quarter our as seasonal or In ensure our on during health of improved customers, resumed incremental favorable we Unfortunately, Activity work first impacts COVID-XX to and and the slowdown. quarter and vendors our response the operations pandemic the in

and the began As underway. oilfield began domestic in March customers the remainder rapidly quarter, progressed, to XXXX. and cases significant some operators our By began for drilling the was of capital announced to current while expenditure – the the decline end rig count of and completion decline to activities, scheduled reductions cancel operation

Our other Palmer I CFO, which results few more will closing after Ben this comments. have a will discuss and financial detail in

Ben Palmer

were fair Thank These you, service XXX.X impairment the several end Technical the Rick. At within connection a RPC's were the non-cash defining with of segment. recorded Services which operating vast in quarter of other charges, of million. RPC of charges first recorded the of lines our XXXX, majority of and value

compared the million to to first for quarter operating first quarter the of first X.X the activity to the fleet compared Revenues of smaller and lower decrease XXXX, was prior pressure revenues compared in of the of For quarter quarter of levels XXX.X loss due million, operating loss to first a to prior million, the prior million in an year. year. year. decreased equipment, and XX.X pricing Adjusted pumping the XXX.X

the Adjusted first of the million EBITDA XX.X EBITDA prior the XX.X to was in same for quarter compared million, year. period

revenues, prior For XXX.X million, adjusted during compared XX.X% million, was per XX.X% or quarter of compared the of $X.XX of share, to first first XXX.X a of year. XXXX, the no in per reported revenues to during the loss quarter share quarter earnings revenues first the or XXXX. RPC of Cost

efficiency higher with employment plates. revenues expenses our and supplies primarily levels. primarily consistent expenses on revenues due percentage a lower operating revenues and utilization Cost of to decreased as Cost to activity lower of materials of and decreased due

due the first to expenses quarter to lower this $XX.X first prior year. year million of first $XX.X year Depreciation during of million expense X.X% million the of XX.X prior decreased decrease the XXXX, compared Selling, to a costs. to the quarter was general of employment in compared and in amortization and the administrative XX.X million quarter in

Technical year. quarter, by excluding compared decreased due million Operating in the to XX.X% within the Our This other pumps. a the year. first loss lower pricing prior to in segment the quarter results impairment reflected significantly prior primarily for charges activity compared the to X.X Services pressure million revenues XX.X and is and

profit segment to in XXXX X.X% as Our a revenues sequential X.X to decreased in million all by prior seasonal X.X million quarter to in of basis, year. increased to prior increases XX.X% the for quarter slowdown, of revenue Support was our the million, quarter fourth the year. revenues Services compared the compared the XXX On first in lines. increased service prior RPC’s led after first XXX.X the million quarter largest from quarter levels activity Operating which

increased by pressure Cost increased expense pumping XXXX activity. materials of due the revenues higher during million quarter X.X and supplies of first or from to resulting X.X%

from efficiencies, revenues, decreased in to pressure pumping. percentage was XX.X% revenues quarter. within the utilization increased primarily XX% quarter improved of a and fourth of operational As to in cost This current the due

Selling, general, during XX.X million compared expenses XX.X quarter. million in the administrative first and quarter, to at were the prior essentially unchanged

to operating adjusted of XX.X prior of the in million first quarter an quarter. during of adjusted XX.X operating Our this the million compares loss year loss

of XX.X XX.X adjusted EBITDA was prior in first in million adjusted quarter. compared the Our to EBITDA million quarter,

million, quarter quarter, million, increased revenues operating quarter, was to segment an current revenues X.X in segment operating Services the profit Services prior in the in to Technical prior by the levels. loss X.X activity Technical loss operating prior the first were Support X.X million, million incurred XX.X RPC’s million million million compared of to Services or in quarter. whereas quarter. compared And XX.X X% segment XX.X compared to Our due higher the in the million XX.X to XXX.X

horsepower. approximately During RPC XX at the fleet fleets, hydraulic XXXX, the first pumping to end up XXX,XXX of of quarter, first pumping pressure and the pressure operated quarter our totaled

XXXX lower than announced. and XX% approximately previously which XXXX had was XX XX we quarter capital estimate million, CapEx will First is we be currently million expenditures

Early adjustments. out three compensation We're furloughs in and million wages of second Oklahoma. frac operating being two reduced fleets annualized our quarter, through $XX Odessa, that locations and by currently the Seminole, across-the-board we salaries an and Texas layoffs, horizontal

expect also cost realize vendor reductions. savings from price to We

And turn comments. Rick for some it to over with back closing that, I'll

Rick Hubbell

Thanks, is more and downturns, impact Ben. impacted decrease an We oil abrupt severe view downturn. both activity currently the general high in industry being decline share oilfield that than to demand. a and Unique historically oilfield regions The a is in already to operating levels last severe by at increase production then the our continue among near-term will rate. the

culture. managers RPC has been always of capital. XX directly the to been invested years the its has always optimize risk. businesses ROIC limiting cost above of on RPC’s More has while than Incentive core tied at to organization for throughout capital, discipline compensation our financial operated Capital return targets

environment, ended a sheet in balance and debt quarter the cash. have challenging maintained XX.X free with Despite the million we

downturn as survivors conference us to our will of We take like in industry. continue this thank the endure to you I whatever and steps RPC’s for to morning. emerge joining necessary call one this are for

for open up time, And your questions. lines will we at the this

Operator

question first Incorporated. Cameron Instructions] [Operator comes Stephens Your Lochridge with from

Cameron Lochridge

Thanks my for taking morning. Good questions.

Rick Hubbell

Sure, Cameron.

Cameron Lochridge

through downturn, [indiscernible] gains mean, downturn. could much but we potentially And on costs, there of way maybe a prior can how progress get companies we we high leaner another was plateau the much efficiency or you as we and did take is it at? people level ended I see get? of wave in I imagine as we was to in hoping could the just get I this efficient mind, much know that's question. same as in – the guys' question, I start kind wondering, more to industry before open more gain I out an start

Jim Landers

is Interesting question. Jim. Cameron, this

high that have be good to view utilization. and great equipment, get utilization, on, our if probably not lot efficiency it there's think kinds but processes going because good not a – that efficiency good efficiency And is we can equipment there's of things processes and then comes efficient. will high not great all I comes from more encounter

mean, happen. that's – won't gains I So, efficiency

it. on So, quick that's a take

Ben Palmer

Ben. might This I is Cameron. And

I is, people and to the know eventual call say and from hard the direction, create this size think efficiencies I out. where will their will the the reducing as think clarity clearly is macro our I We're you by, will administrative industry, point, all be shake of but what terms indicated search in saying a at for, driven I ability right, you that think what here. in businesses to support, know some cost and we for going searching what Jim think level, are we

trying over on outstanding We’ll achieve that's that'll time. be drive so to going – driven what's and capital, invested by our making decision to returns

market, the be through driving those there pricing competition be over – period our as or you You continue and of what can’t demand that, overcome discipline it set be again we're will industry you this returns and can in will to a cost sufficient and relates accordingly. have time, improved know, hoping we process, will structure to for demands but

Cameron Lochridge

just wondering and That's What you sheet and I the flow, saw you going see forward? XQ. to then guys guys. the then you might if capital about how And talk year turning progressing balance you, helpful. there maybe Thank was cash can working that through in

Ben Palmer

of that does the there Well, tax but our during include we're looking working capital that contribution sheet, little the at first working Act. CARES to large from was get our going balance quarter refund because overall and capital, a

We will that been number be current the able one; has carry the our than carry will higher back receivable. tax Act expect will XXXX of be but XXXX, now now that to two, we with long-term it be able back NOL, able didn't which of rather a passing, a number to be as now that than a a we because to end at receivable increased we'll rate, and CARES

which well the So, that to pretty went capital cash. cash that reconciles equation, out you know, our our our, change with EBITDA EBITDA take less the operations in adjusted our $XX if working the with CapEx closely the quarter, up as contributed corresponds million from from that of you during about fact

obviously from of in throughout declines point currently rest adequately at we customers, in particular obviously about have no to depend this going we're revenue, time. So no concerns think to reserved year, the expecting collect receivables. the we're expecting – We we're it's any on

manage we of be working our to that'll we're it going forward, depend lot will working contributor just clearly, on hard always capital So, like but but do. a factors, a

more I through cash So, contribute will as think the progress we to it year.

Cameron Lochridge

you it back. guys. Alright. turn Thank I’ll

Jim Landers

Cameron. Thanks, Alright.

Operator

Your O'Leary Company. comes TPH & George with question next from

George O'Leary

Good morning, guys.

Rick Hubbell

George. Hi,

George O'Leary

the the quarter the on curious just guys incremental all little average crew was that, Hi. appreciate color I a count so was in just remind could far. first active provide color I through perspective if and the with us quarter? you guys trends you on customers, ballpark where how remainder And then you the today a staffed? you of discussions sit had based or think from how many crews just that

Jim Landers

said, during is were know, this They fleets XX. to Jim. George, you were Ben XX up active the quarter.

So, indications and quarter. we and in but are work customers with, we up the know, too sort I say We're It's come this he see and I what have, is historically now, talked don't second average hard about decline, a people, would of to some then continuing averages environment say these far I'd of or rate how into difficult but to eight for customer we're many high going our just [indiscernible] future. to getting. have a think

we. do unfortunately neither So,

Ben Palmer

that. we And real George, some, and you out higher volume, to had some know, higher success of know, coming worked, XXXX customer sell try add utilization, to with we, relationships, I'll you and hard

I think that's in results. our reflected financial

those So, we still foundation were forward. decent foundation working were on trajectory have felt to going a A us. created now. what we We had and like customers did decent decent to and happened of some a happen are couple disappointed obviously

watch at working continue, to we're closely to going that's, working know, very them at to and sure pricing but duration they that of that positively they're determine and going going that the to we're you utilization results. our to we're this say make contributing point, and So, with very, work, to our,

decision be where watching the that customers making something and together our over months. we'll that's coming with closely So,

George O'Leary

of CapEx. kind year, last one on helpful and expire of Alright. train then late to and E&Ps jump some letting some you equipment And were back thinking aboard attrition That's about first the the really start were guys color. throttling

what incremental Just see equipment to to and just not but broadly we coil, might today progresses keep, how And your you the think year on as attrition rack, including across about what attrition portfolio not the front? keep? do

Ben Palmer

I us, know, diligent in year. went to would we it a fourth As quarter that, third you very the process relates focused of say and through last

our need nothing's So, our in look says quarter, activities fleet. a up we at that new first we here to the know take come

where So, from won't present we impairment, our was but things at we're portfolio. in That time, you perspective amounts significant equipment we was point there not with are there in of perspective, still pleased we any you and here, know, made very an retiring forward have time. decisions as that's know, the doesn't a the for mean from move new really any from nothing additional and equipment operational change at location this

focus lately of we'll our have to downwards continue levels workforce and been adjustments continue what some as adjusting and to our watch need tells the view to the is business make Obviously, activity And future going hold. to or us. we'll the upwards has on as we have to

George O'Leary

that Could guys if in I typically there. sneak you be breakdown helpful? the would could more I'll one that provide by And you provide business revenue super

Jim Landers

is Jim. This absolutely. George, yes,

revenue lines RPC give I'm about of that So, the consolidated. are service percentage service for lines, comprised percentages to

our pressure XX.X% line was pumping, service revenues. So, which comprised largest of

Our line tools, which hole Tubing Solutions, services second was revenues. motors XX.X% Thru of business, service down our and largest comprised

service of for largest revenues. revenues of Thanks which was X.X% revenues. rental question. tubing segment third is the support X.X% coiled Nitrogen of at down was The from was tools, our going line X.X% in their

Operator

Connor question next Morgan Your from Lynagh with Stanley. comes

Connor Lynagh

I Good wondering… morning. Thank was you.

Jim Landers

Hi, Connor.

Connor Lynagh

not fixed EBITDA, think things thereabouts these costs, I low what your levels. how able what etcetera? breakeven even discuss settle Can driving a help you you or was to wondering and there's are you could us costs Hi. out costs, here if manage effectively variable but activity you there, somewhere of out I'm obviously with is, through visibility discuss to could as at lot I'm

Ben Palmer

Jim let [indiscernible]. take I'll a Yeah.

Jim Landers

Connor, we a cost about we can than more tell you revenues. lot can

taken is it XX.X think think you quarterly XXs, our mid-to-upper will So, the already was. that I recently from, a let’s give shot. which with down close million, very taken We so SG&A we to actions be have million know, XX

that cut for got So, going we've we've got, you SG&A know, us.

to direct they're don't are cost. some a kind because Those other but aren't working, the there of them, people know, grab personal regrettably you of Some know of you a bit be And you will pay cost. hard costs, reduced. we that anyway variable when necessarily

but to way the reductions be the hard of this declining is just better kind we've – line revenue of direct in see. cost is things with best margins guess say will a revenues Cost that because taken actions in to I will bit equal, I with. the other than doesn’t the little doesn't be to unfortunately, This it's hard an to answer impairment lower per the thought in. come charges up million question. about EBITDA depreciation we EBITDA, has relate $XX.X I'd throw took to with just that that quarter been, and but

of So, that's right best at look our it kind now.

Ben Palmer

previous Connor, I I back to question. of would kind my going mean, say

that. to if going more we know, revenue we'd You be, you was on color knew know, have what

or upward is have as as on downward I right and adjustments some to to us think based is what we're develop business to future business just again, very to watch telling to hopefully, based make you the difficult. imagine, have could and listen going visibility on the whether continue and now, need to of that, the the and we'll view we

Connor Lynagh

is can concessions of us input that portion hundred we Maybe the but about you appreciate us? to opposed to lower you think I how thing the activity you've points, lower, can costs, you give color your net have should frame by the versus that forced sequentially there magnitude business maybe sequentially, you price give it. on through one net, you, Yes, the It's here, think just of a some as but talking about for magnitude were uncertain. you few been similar costs trend are extent of very to basis you declines, any to things been help the I know are variable mean, of through sort if deflation? activity can

Jim Landers

better hoping a taken not Well isn't XXXX, have pricing downturn downturn Connor, soon. about. took where we for concessions, that's is concessions, This what people a pricing come but the few to XXXX day this

taken So, we haven't concessions. pricing

percentage you the as revenues, here. bit little a know, first got know, of of leverage we quarter You in a

of, maintenance it know to… repair a whole lot mostly know, maybe not, a but a was and bit there's few and things, you know, not little you there's labor, You

Ben Palmer

the noise. as I you add a some of or out much difficult clearly the indicate, that, progression, quarter quarter, would on going the obviously, a some improvements. Yeah, noise last nice say would know, fourth Not was the came nice, there fourth lot this of and I quarter, was – we year, year numbers quarter no early in of in but first

back, costs. know, need and So restructure you business our do look to all at on is we inwardly this this the what pulling about to point, focusing at

of And terms know, with a you know, have, of worked pricing, bit pricing, low our you work, know, color, but you want not that activity you to you don't we to there customers make cash, to generating of you significantly, down know, especially where and down at know, we I work was, been in know, levels, environment. did know, sufficient that utilization levels, would we we've appropriate say, we're you our we're we this slight sure need going some in just little

know, overhead highly to that being, certainly our, positive looking So, about, you sure making making know, you line. be, closely and we're, we'll our that the you eventually contributions at know, again, some very disciplined bottom

than had we already cost not no everything gotten go clearly reduced of have that low a of we thing markets costs is but again, a have a is very could to downturn about now volatile question, that's thing been reduced in one arrived So, further. there's but zero, going to absolutely that activity it right we've down our something you – [XXXX, easier fair weeks. in was It's XXXX] time one level nice know, or the this matter – very our

[XXXX knowing Jim the level before a now was or So, it a about over back of just it was period we're XXXX]. bounce at Obviously, down alluded and not low long slow to, a if as time not. grind

terms a costs So, it's how could get go knowing pricing time, low we just we of be and in a more deeper cutting that should This could rebound. clear. we lot

some making in of So decision respects, some easier. makes a little the that

all we be about operating be refund. in that the I the we'll to to survival able we have extent back. will about now and losses, able survive. XXXX going and We'll tax So, it's carry to be talked

back of and losses plenty from carry on back have federal We year dollar. a $X.XX the get generate room to back this we perspective any carry

we've with tax we have – got XXXX on a tax XXXX So, horizon. the working capital refund, of refund, lot liquidity

we we're of not direction about, in make again, activity we telling to So, the about know, the what that concerned all be And business far need our This it based you short-term. going adjustments and as and how is business what we'll need to, the future. see on down. the goes in make again, levels us, we'll to is

Connor Lynagh

it. Got color. Appreciate the

Ben Palmer

Sure.

Operator

Your Energy. Glosser next Dylan Simmons with question comes from

Dylan Glosser

morning, Hi, good guys.

Jim Landers

Hi, good morning.

Dylan Glosser

quarter, might so you today, you as right sized staffed where just you you regards QX in many actually And you last think your guys and staffed just to about that go have under that in, horizontal you you mentioned and had guys fleets do and have XX today, QX working fleets had guys three activity? mentioned fleet guys business, how as

Rick Hubbell

furloughs, through for that layoffs are only working fleets today. staffed we and Well the were

work the have quarter. in So, to we fleets fourth waiting around or extra third sitting don't

that. only limiting were are we are working costs So, those we that the for to staffing so fleets

Dylan Glosser

think about be in as you margins QX, technical you might talk might services expecting and segment? in QX go and your decrementals where you you thank about Okay, what just could

Jim Landers

decline. it's do, else the does know, we, We're out, going question sequential on Jim. because to I'm of sure therefore, on talk you idea is where fall have be. might as will of everybody probably And to of and call well. hard punt that kind This about this the and EBITDA magnitude decrementals revenue we you what some

Dylan Glosser

million and ranges, as guide, that on guys of $XX you break like guess, $XX ask last thing Okay, the the what the out maintenance what number expect five numbers if is you of million the budget pumping CapEx fleets range you that to maybe about within million Is conservative mentioned you the XXXX. call Maybe do And maybe just that your the QX, this kind go pressure I think guys as of shot. worth you kind know, remainder of this we you chance far around and Can of kind just Do a would that think number, lower going expense? as year? of through are, has million? XX then, I'll remainder falls great. know, through for within be any the that you three your the last QX it thoughts $XX around

Jim Landers

This is Jim.

zip expenditures to Your expense, may We, estimate know, maintenance are have for our meant code. of, be think you said equipment being get of we that's maintenance It's pressure and you fleets pumping probably, a the new that but story, I in you capital times our but history working. better. know, you you when the maintaining present

equipment, So, it's our coiled going maintain or fleets are tubing something whether snubbing equipment. we to with

Yes, So, pretty to million right probably we have don't to list number? our but you year. a this a be it CapEx But and is lower? for that's conservative XX decent Could disclose a number now, absolutely.

Operator

comes from Blake Your question with Wolfe Gendron Research. next

Blake Gendron

morning. good Hey,

of So, it like the order sounds operations…

Rick Hubbell

Hi, Blake.

Blake Gendron

Hey.

production. like from to the sounds order the shut-in operations E&Ps is it So, of

now we've Permian production You of upwards know, of XX% shut-in. heard

you on, speak, forward? there, businesses frac, to just the tools, business will frac wireline when but versus And potential some maybe play E&P of you your shape your know, take looking some obviously, a in second I'm respect you so go in the time portfolio, with essentially any back, So the to guess, zero at Any but business. wells tubing I come to of dental you on, know, snubbing, shut-in is these Thanks. opportunity know, to production come as quarter. recovery coil in the maybe much to moving and back activity your your it shut-in could back parts non-frac to put going not start frac,

Jim Landers

you if something we're of other ticked pressuring nitrogen of the thinking I question. this, lot just pressure add services is list the have into that of is be, you you That this. I'm This on side about pumping down. portfolio for it Jim. if, Blake. and play an production to pretend of services not of that. was, Certainly, Thanks I’d to expert on the up there trouble where shut-in a into and to or our again use does up outside it but are getting services wells won't

we've talked with that So, recently. about folks operations the

And that for would the leading might edge be before that pressure a pumping – before recovery RPC of be again. completions are happening

we it. wish color have I So, more for

I and probably the think you it of have or good it's idea – We happen. I the think we be when exactly recovery happens. would just of what a might don't news it do will great when use or that shape what

Blake Gendron

That's totally fair.

if I larger X, spreads keeping XXX,XXX than just now now. things know, active working they, you that if the for know, the Thanks. customers us. true, with dual Tier where imagine ago. qualitative think about to X legacy say provide is respect asking would Tier horsepower, materially think that, could that that I we know, a you be, you working applicable that'd everybody's you be redundancy XXX you're helpful then for are fuel on are versus for When you and location, for then, six would months And your of breakdown

Jim Landers

fleets our about X. are equipment of Yes. Two more redundant on customers Honestly, site. requesting don't know Tier

to we bring aim and On say the certainly I it. so it please could one have we hand, would we

don't we've how personnel equipment other additional there's, you much I expense. redundant that's the required. shape. – there's and site an new you there’s to know And hand, for know, in expense good got, have fuel cost On because then got having on more clearly equipment we've

unchanged say now. to going fleet just size we're So, right

Blake Gendron

one here. in then more Got it. squeeze could I And it if

pretty thinking conservative at though, you or not just wondering been point? something capital stewards you're of any is this over about this potential your M&A I'm even history. You've opportunities know,

Ben Palmer

as relates in always the M&A, of Well, it's have back to it we our mind. something

inward a right going been there's I to trying you say and obviously announcements point, of lot of at restructure now have focus some Now, what's would recent on business. our this transactions, on some,

at – that talking one or are a it to view we but hopper don't necessary survive. thinking know, about, as You yeah, always or about we things we're the that have two point, that in occurrence this it

a our and could taking ourselves of determine, you you mostly And turn, on you said, trying right know, not a on a be when possibility. of and years employees we've, So, books not don't we're the a we And, we've to, other you lot out that in we're done recent again that necessary as a strong at side as things care have of, come have goodwill certainly looking business for being on and our being lot our existing know taking focused now something on transaction know, of care of reason. it's in occurrence to and might competitor. to a that us

top a point. not it's this priority So, at

Blake Gendron

and the back. That's the commentary. it fair. totally I’ll Appreciate turn time you. got I

Jim Landers

Blake. Thanks Alright.

Operator

next question from comes Stifel. with Gengaro Your Stephen

Stephen Gengaro

I well. is morning, gentlemen. Thanks. Good everybody hope

you quarter first does color have in I some after things. give the the apologize. So, What Can the you two us One, may second there? look D&A on like in this, commented charges quarter?

Jim Landers

to did up it things we Other bring Stephen, million XX.X per D&A equal about will decline that, happy but by mention again. quarter. Yes,

Ben Palmer

point an [indiscernible]. that's at estimate And this

Stephen Gengaro

about, for missing then, quarter but apologize in, I that. second the passed the second think of kind gone get on, revert incremental sort think to decremental Sorry, – obviously level to and you you're as you scenario as of of you second predictions the And a kind normal as cost quarter? historical beyond make the is that's cutting know do granted quarter margins or extremely a, difficult you

Jim Landers

That's assessment. a fair

to, margins. I mean, know, we're pricing. I you it I decremental guess more think not on that's comes right. giving

to, to of any wages, it's down laying or staffing, kind actions salaries, take it the comes or of furloughing activity hiring So, to timing levels down off. we and actions, going either and come

say. factors at but in that are of on Reasonable beyond well this to it difficult our number control a question, it's So, depends point time.

Stephen Gengaro

Okay, that's it. Thank you, gentlemen.

Jim Landers

Thanks Stephen.

Operator

There Landers. further back call to turn like at are the no I will this now Instructions] over time. [Operator Jim questions to

Jim Landers

some asked busy you Thank you, We everybody know for Thank a called and questions. dialogue. Ursula. We earnings. in, to appreciate week it's the who

that, in. we So, you and to good day. everybody a We'll we appreciate calling talk Have recognize soon.

Operator

Ladies hours the Thank following and conference call on completion call. be replayed www.rpc.net the of you within today's gentlemen, participating will in two today's call. for

now may You disconnect.

RPC (RES) 10 May 202020 Q1 Earnings call transcript