Ok I folded like a cheap camera and paid up 1/16 for NR, in at 7/8. I kind of liked the revenue gains in the last report. I expect this thing will eventually bust out and go to 15.
In case anybody is interested:
------------------------------------------------------------
Newpark Resources Earns $.02 Per Share in 2nd Qtr, Revenue Up 53% to $60 Million
METAIRIE, La., July 31 /PRNewswire/ -- Newpark Resources, Inc. (NYSE: NR - news) today reported that it earned $1,349,000 equal to $.02 per diluted share, on revenue of $60,202,000 in the quarter ended June 30, 2000. This compares to a 1999 second quarter loss of $5,492,000, equal to $.08 per diluted share, on revenue of $39,268,000.
For the six months, the company earned $1,825,000 or $.03 per diluted share, on revenue of $116,766,000 compared to a loss of $3,463,000, equal to $.05 per diluted share, on revenue of $90,043,000 in the comparable 1999 period.
James D. Cole, Newpark's CEO and President commented: ``During the quarter, Newpark completed a $30 million preferred stock financing that was applied to improving liquidity and reducing debt, in anticipation of an improving market and additional working capital needs as a result. The monthly pattern of the recent quarter and other market indications support the view that we will see improved operations and stronger financial results in the second half of the year.''
Drilling Fluids
Revenue from drilling fluids operations increased 73% from the year-ago quarter to $30.4 million. Most of the revenue gain came from a 43% improvement in rig activity in the U.S. Gulf Coast market, with the remainder the result of market share gains. ``We believe that our position in this market will continue to strengthen,'' Cole said, ``as the market recovery continues. The growth achieved in the U.S. market in the quarter was offset in part by the effect of the spring break-up and other weather - related slowness in Canadian activity.''
Waste Disposal
Waste disposal revenue totaled $13.8 million in the quarter, improving 39% from the year-ago level. Volume in the quarter reached 1,062,000 barrels compared to 794,000 in the year-ago quarter and 942,000 in the first quarter of 2000. The 13% sequential quarter volume increase tracks the increase in Gulf Coast barge rig drilling activity, while total rig count in the market grew 7% sequentially. ``In recent weeks,'' Cole said, ``we have seen a 21% increase in activity in the environmentally sensitive Transition Zone, which should translate into future revenue growth if the trend continues. This development is important to Newpark, since a Transition Zone drilling rig generates five to six times the waste volume of other, less tightly regulated markets.''
Mat Rental and Integrated Services
Mat rental and integrated services revenue of $16 million improved $4.2 million or 36% from the $11.8 million reported in the year-ago quarter. Recent quarter revenues were $573,000 or 4% above the level of the preceding quarter. Cole indicated that: ``We have not yet seen a significant increase in drilling activity in the South Louisiana transition zone market, which remains a key market for our Company. However we do have indication from our customers that this market will be more active during the remainder of the year. Meanwhile, we are continuing to pursue the military, governmental and commercial markets for sales of our composite mat system, and believe that our efforts in this new market should begin to show positive results later in the year.'' |
