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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 26, 2006
RPC, INC.
(Exact name of registrant as specified in its charter)
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Delaware 1-8726 58-1550825
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
2170 Piedmont Road, NE, Atlanta, Georgia 30324
(Address of principal executive office) (zip code)
Registrant's telephone number, including area code: (404) 321-2140
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On April 26, 2006, RPC, Inc. issued a press release entitled "RPC, Inc. Reports
2006 First Quarter Financial Results," that announced the financial results for
the first quarter ended March 31, 2006.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
Exhibit 99 - Press Release dated April 26, 2006
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, RPC, Inc.
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
RPC, Inc.
Date: April 26, 2006 /s/ BEN M. PALMER
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Ben M. Palmer
Vice President,
Chief Financial Officer and Treasurer
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Three Months Ended March 31
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2006 2005
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(in thousands)
Revenues:
Technical services $ 114,761 $ 77,958
Support services 21,263 14,355
Other 0 17
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Total revenues $ 136,024 $ 92,330
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Operating Profit:
Technical services $ 36,239 $ 14,788
Support services 5,191 2,171
Other 0 (165)
Corporate expenses (2,945) (2,561)
Gain on disposition of assets, net 1,032 626
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Total operating profit $ 39,517 $ 14,859
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Other income, net 261 1,270
Interest income, net 153 92
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Income before income taxes $ 39,931 $ 16,221
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RPC INCORPORATED AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)
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Periods ended March 31, (Unaudited) First Quarter
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% BETTER
2006 2005 (WORSE)
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REVENUES $136,024 $92,330 47.3%
COSTS AND EXPENSES:
Cost of services rendered and goods sold 65,751 50,411 (30.4)
Selling, general and administrative expenses 21,083 18,406 (14.5)
Depreciation and amortization 10,705 9,280 (15.4)
Gain on disposition of assets, net (1,032) (626) 64.9
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Operating profit 39,517 14,859 165.9
Interest income, net 153 92 66.3
Other income, net 261 1,270 (79.4)
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Income before income taxes 39,931 16,221 146.2
Income tax provision 15,031 6,294 (138.8)
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NET INCOME $ 24,900 $ 9,927 150.8%
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EARNINGS PER SHARE
Basic $ 0.39 $ 0.15 160.0%
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Diluted $ 0.38 $ 0.15 153.3%
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AVERAGE SHARES OUTSTANDING
Basic 63,354 63,920
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Diluted 65,831 66,049
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RPC INCORPORATED AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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At March 31, (Unaudited) (In thousands)
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2006 2005
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ASSETS
Cash and cash equivalents $ 7,386 $ 22,272
Accounts receivable, net 116,165 79,805
Inventories 15,090 11,565
Deferred income taxes 4,273 5,151
Income taxes receivable -- 286
Prepaid expenses and other current assets 3,542 3,462
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Total current assets 146,456 122,541
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Property, plant and equipment, net 156,159 117,941
Goodwill 24,093 20,468
Other assets 4,254 3,162
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Total assets $ 330,962 $ 264,112
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 31,066 $ 23,804
Accrued payroll and related expenses 9,872 7,645
Accrued insurance expenses 3,606 3,844
Accrued state, local and other taxes 1,781 1,581
Income taxes payable 2,393 --
Current portion of long-term debt -- 2,000
Other accrued expenses 503 5,086
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Total current liabilities 49,221 43,960
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Accrued insurance expenses 6,479 6,294
Pension liabilities 11,798 10,527
Deferred income taxes 7,777 11,467
Other long-term liabilities 789 1,372
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Total liabilities 76,064 73,620
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Common stock 6,480 6,521
Capital in excess of par value 14,584 28,668
Retained earnings 241,637 168,411
Deferred compensation -- (6,335)
Accumulated other comprehensive loss (7,803) (6,773)
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Total stockholders' equity 254,898 190,492
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Total liabilities and stockholders' equity $ 330,962 $ 264,112
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Certain prior year balances have been reclassified to conform with current year
presentation.
RPC INCORPORATED AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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Three months ended March 31, (Unaudited) (In thousands)
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2006 2005
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Operating Activities:
Net income $ 24,900 $ 9,927
Depreciation, amortization and
other non-cash charges 11,405 9,621
Other net changes in operating
activities (14,020) (10,428)
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Net cash provided by operating
activities 22,285 9,120
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Investing Activities:
Capital expenditures (25,970) (13,318)
Other investing activities 1,357 947
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Net cash used for investing
activities (24,613) (12,371)
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Financing Activities:
Payment of dividends (3,170) (1,704)
Payments on debt -- (2,800)
Cash paid for common stock purchased
and retired (1,110) (73)
Other financing activities 1,185 464
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Net cash used for financing
activities (3,095) (4,113)
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Net (decrease) in cash and
cash equivalents (5,423) (7,364)
Cash and cash equivalents at
beginning of period 12,809 29,636
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Cash and cash equivalents at
end of period $ 7,386 $ 22,272
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