Q4 2020 Newpark Resources Inc Earnings Call

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Thank you operator and good morning everyone. We appreciate you joining us for the Newpark resources conference call and webcast to review fourth quarter and full-year 2020 results back from the company in today's call Paul house beatbox president and chief executive officer Greg, Bianca and David Patterson president of the fluids business days following my remarks management and the financial details of the month. When I try to call I have a few housekeeping details to run through there will be a replay of today's call will be available by webcast and the company's website at Newpark. They'll also be a recording feature available until February 26th 2021 that information is included in yesterday.

The information reported on this car today February 12th, 2021 wage really, really we playlist, you know transcript in addition the comments made by management. They contain forward-looking statements within the meaning of the United States Federal Security Guard these forward-looking statements reflect the current vehicle new parts management, however, various risks and uncertainties and contingencies could cause the contractor results performance or achievements to differ materially from those expressed in the statements made by management is encouraged to read the annual report on form 10-K for our reports on T and T and current wage. Okay. So I understand certain risks or uncertainties including the comments today may also include non-gaap Financial managers additional details and welcome to the club.

To make a comparable. Managers are included in the corner.

It can be found in the new parts website. And now that I finally I'd like to turn the call over to Luke wash president and CEO. Mr. Paul house. Good morning. Everyone wage war coverage for the fourth quarter. I'd like to take a moment to reflect upon the progress was made over the past year to advance our strategy twenty Twenty-One years which countries around the world. Amanda challenges an extremely proud and resilient navigate incredibly challenging market conditions down to continue to explore with our strategic imperatives to that point. I'd like to highlight a few areas of practice with this model which Amanda. All Phases of investors license for the full month.

The free cash flow and reduce your total debt off and twenty years.

Continue to advance off Thursday afternoon, the services delivered 90% year-on-year growth in service revenues from utility sector.

Another key factor in your house into industrial and markets.

Yep.

Home and access Solutions business as well as operation Iraqi Iranian operating margins of 19%

industrial Solutions wage

2020

Where you going to cost structure Capital to provide a stronger than $125 or 40% during the past year?

The increase in validation of this month include the sustainability of their operations are fully recyclable serving alternative rock station.

So I took off currently driving Market, which is underneath the water.

Yes.

I believe I like to consolidate month after month.

Installing a direct for an improvement demand from utilities along the 20% off elevated utility activity along the Gulf Coast.

Early signs of recovery Off the Light Bulb Store experience with painted off the impact of my travel and operations restrictions.

financial credit score right off off off $29 an hour

Benefiting from the keyboard. I'm looking at the actual Solutions wage.

Yep, and direct sales attributable to be uncomfortable purchase.

home improvement from the dead

Calling from God Turn the Page.

Let me go back to the same College Station providing majority of improvement.

In about a month or two months.

Okay. I'm in the Middle East.

Yep.

Gulf of Mexico revenues remained much more stable year-over-year wage in the house with a certain percent year-over-year with the wiring thing about the basically all markets in Europe the Middle East and North Africa, including a significant.

Speak to rep.

the corporate office wage reduction long-term performance

$29 a month and the benefits

it's slightly off borrowing rate on our opening.

For the quarter of the non-deductible loss associated with their angle from Brazil in a month.

Home and last year which included turn off operating activities fifteen million dollars which included an 11-hour net reduction working capital.

June 2018

the majority

off the remaining 60% $1000000 convertible notes due in December in nineteen outstanding US Bank facility, which one's the 2024 World Cup.

Now turning to our near-term operation.

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I am engaging in contact for the previous month a benefit to direct sales.

Home Improvement projects

Thursday

I do wrong with recovering the Eastern kind of the remaining dependent upon the left and the contracts.

Thursday Thursday, Thursday the 11th

Thursday the 20 21 when you return priority for free cash flow generation remain focused on ensuring sufficient to support our business beyond the convertible bond funds

It's a longer-term capital structure management evaluating additional sources available on a walk-in problem say that we have delivered on our commitment to strengthen our balance sheet missing the company for success. In fact remains committed to improving I return home.

The plan our strategy longer-term Outlook. We are very proud of the progress. We've made the purchase line on revenues in particular the penetration of the utilities director over the last four years wage is expecting an increase in this important Market is expanding present. We also believe our site solution. Do you have increased visibility an opportunity to capture value in the energy transition whether its connection Wind Farm or silver or the grill or the delivery, the Power electric vehicle is a critical element with the crowd of a natural energy transition and we are excited by our family role.

I lost my way home operations experience and vice president. So I want you to operations team damaging senior vice president and she distribution officer responsible for the distribution operations across 16.

We're excited ma'am.

Well into the transmission off the market opportunities and learning abilities to reposition under you wanted to have an accelerated home and never change the world.

This is also a means of creating a more a month will be majority of our long-term solution send off an expanding market and select International opportunities.

Would like to talk to a diversification.

Can I want I can send you to buy an important role in leading the world energy demands and the US and the rest we will transition to clean renewable energy sources being expanded of the geothermal drilling. It's matches well with our system capabilities, I've always correctly representing a very small portion of the interview em, and it's been explained to fifteen years.

Recently began the contract and Portugal which complement opportunity to expand on and off.

I want to suck suck important for every company to do the part to make a positive impact on the environment and I've always maintained the customers across Industries if they increase in value on our ability to help them improve their environment. I believe it was black with a new parks commitment to environmental stewardship.

Did you need to talk to technology in the next month or demanding higher standards and regulations are increasing with the local state and federal level off off off?

A leader in the St. Across characters in which we compete with the dedication to me as long as you think

Thank you, ma'am questions for me to participate using some very good and may be necessary. If it doesn't answer before Christmas. One moment, please while we pulled for questions.

our first question

What is interested in Mission opportunities and we have more of an imagined that augments the opportunity they're giving you can put up as possible power off wherever you want off and as we have no available for the approach of wondering if you could talk about kind of a a big market and then we'd want to go within that and have that may change and keep track of the time.

And momentum building behind renewable week science of solar waves reform resolved fairly long access road with some type of Environmental Protection to be able to go in and out of the properties and so the market place right now, so we're excited about that opportunity and took a few words and go late eighteen kind of frame. The opportunities that we saw in the ignition and I'm hearing as we continue to see the progress of energy transition dead.

The stability of that market of a deeper Investment Banking infrastructure on the distribution side with more power and the man's life as well. So we got going on Thursday would be grinding interesting now when we getting more and we grow and getting rid of a critical mass of things to bring identity of our business office products are going to the big electrical operators. And so our visibility is is growing and obviously feel better. We'll replace the network.

That's great. I'm sorry about that and send a message to be returned the charity convertible talk about the various. You have been a great job and pay cash flow over 12 months, but just you know, what's kind of a game playing in the different happenings. You could pursue felt bring that home and and you know, get up early in the year. So we have a couple of options to generate that free cash flow. The business has done an outstanding job down. We still have some more work to do on the inventory, but I have to be available, but you know dead.

And I am off so you'll be coming back in maybe or so years we go forward them to evaluate. We'll talk about various aspects that we have on our way back to the appointment. We we think that that makes sense and we continue to Precast generation from the business of creating this, you know, pretty comfortable that we're going to be able to log.

The RAV4 or harvesting working now has been outstanding and we put it in there.

I will I'll turn it back over.

Next question is from Daniel Burton Palm Beach and walk. You said we're already closed the mass service rental business and talking about five percent and there's across parents obviously created structures the kitchen and do too. I guess I'm working all the ways up the questions. So, what are you Twenty-One? Can you grow double-digit gains for two people?

No income off particularly strong quarter benefited from work, but after the fact that the team took so long.

Wage sales tomorrow if you all want to plate and I may be mentioned that pretty healthy, you know spill over to keep 121. You can see the put this question. I guess I'm asking the wrong wrong wrong number we can contact you but we're you know, what we find is dead dead.

So you would think that single time has become a while.

Because they have a longer-term sustaining use that they have the right to sell a product and what it does is it creates more granting anymore? Maybe a little bit longer. And some of them may need to refer to our goal is to continue to build out the market that Simon from sales perspective. But also they're running the most efficient operation in terms of access Site Solutions.

Got it under that's helpful guys. And I guess the question I'd like to ask is I'm trying to see exactly what the tax. Basically International. Can you take uniquely above break-even without recovering wage?

bap bap bap bap, obviously the American land into the recovery there he could get him back then, you know even know what international

Thank you for driving the lead.

thank you for calling

I'm going to the money.

Good morning, Bill.

With what company discount or something, you know.

God

Took the call and for your interest in Newark, and we look forward to talking to you again.