Newpark Resources Reports Second Quarter 2009 Results

THE WOODLANDS, Texas, July 30 /PRNewswire-FirstCall/ -- Newpark Resources,
Inc. (NYSE: NR) today announced results for its second quarter ended June 30,
2009. Total revenues were $109.6 million for the second quarter of 2009
compared to $210.5 million for the second quarter of 2008. The Company
reported a net loss of $8.8 million, or $0.10 loss per share, for the second
quarter of 2009 compared to net income of $10.0 million, or $0.11 per diluted
share, for the second quarter of 2008.

Operating results in the second quarter of 2009 included $4.8 million of
pre-tax charges ($3.1 million after-tax) related to employee termination and
related costs associated with North American workforce reductions, the
non-renewal of barge leases and asset write-downs.

Paul Howes, President and Chief Executive Officer of Newpark, stated, "Our
second quarter results continued to be negatively impacted by the sharp
decline in North American drilling activity, driven by the decline in natural
gas prices. While we have seen activity levels stabilize in North America
over the past several weeks, we have continued our focus on cost cutting
programs throughout the second quarter. Since the beginning of the second
quarter, we have reduced our North American workforce by an additional 15%,
which combined with our first quarter reductions, reflects a total
year-to-date North American workforce reduction of 33% through June.
Additionally, we recently initiated a plan to combine the management of our
Environmental Services and Mats and Integrated Services divisions, which is
expected to generate additional cost savings.

"Another key development was the recent completion of the previously announced
amendment to our credit agreement, which provides favorable adjustments to our
covenant requirements over the next four quarters," added Howes. "Meanwhile,
we remain encouraged by our international businesses, as both Brazil and our
Mediterranean operations have held up well relative to the North American
markets. We have now right-sized the Company to reflect current market
conditions, and with our amended credit facility in place, we believe we are
positioned for further growth in our international businesses as well as to
take advantage of any recovery in our North American business."

Segment Results
The Fluids Systems and Engineering segment generated revenues of $89.6 million
and an operating loss of $1.7 million in the second quarter of 2009 compared
to revenues of $169.1 million and operating income of $18.1 million during the
second quarter of 2008. The decline in revenues was due to a substantially
lower U.S. rig count in the second quarter compared to the same period a year
ago. North American revenues decreased 58% compared to the second quarter of
2008, while Mediterranean revenues declined 5%, primarily due to the
strengthening U.S. dollar. Revenues from Brazil were flat compared to the
second quarter of 2008 as volume increases were offset by the strengthening
U.S. dollar. The decline in operating income in this segment is primarily the
result of the rapid decline in U.S. drilling activity and severe pricing
pressures, along with $1.0 million of employee termination and related
charges.

The Mats and Integrated Services segment generated revenues of $8.6 million
and an operating loss of $4.8 million in the second quarter of 2009 compared
to revenues of $24.9 million and an operating profit of $2.4 million in the
second quarter of 2008. The decline in revenues is primarily attributable to
weakness in the Gulf Coast region, lower mat sales and $1.2 million of
concessions to customers on disputed receivables. The decline in operating
income is primarily the result of the lower revenues, along with $0.6 million
of employee termination and related charges and $0.8 million of inventory
write-downs.

The Environmental Services segment generated revenues of $11.3 million and
operating income of $1.4 million compared to revenues of $16.5 million and
operating income of $2.5 million in the second quarter of 2008. The decline
in revenues in this segment is primarily due to the decline in Gulf Coast rig
activity, somewhat offset by changes in sales mix and price increases. The
decline in operating income is primarily the result of a $1.0 million charge
resulting from the non-renewal of barge leases during the second quarter of
2009.

CONFERENCE CALL
In conjunction with this release, Newpark has scheduled a conference call,
which will be broadcast live over the Internet, on Friday, July 31, 2009 at
10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call,
dial (480) 629-9867 and ask for the Newpark Resources conference call at least
10 minutes prior to the start time, or access it live over the Internet at
www.newpark.com. For those who cannot listen to the live call, a replay will
be available through August 7, 2009 and may be accessed by dialing (303)
590-3030 and using pass code 4110135#. Also, an archive of the webcast will
be available shortly after the call at www.newpark.com for 90 days.

Newpark Resources, Inc. is a worldwide provider of drilling fluids, temporary
worksites and access roads for oilfield and other commercial markets, and
environmental waste treatment solutions. For more information, visit our
website at www.newpark.com.

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act that are based on management's
current expectations, estimates and projections. All statements that address
expectations or projections about the future, including Newpark's strategy for
growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the forward-looking
statements may be identified by words like "expects," "anticipates," "plans,"
"intends," "projects," "indicates," and similar expressions. These statements
are not guarantees of future performance and involve a number of risks,
uncertainties and assumptions. Many factors, including those discussed more
fully elsewhere in this release and in documents filed with the Securities and
Exchange Commission by Newpark, particularly its Annual Report on Form 10-K
for the year ended December 31, 2008, as well as others, could cause results
to differ materially from those stated. These factors include, but are not
limited to, the instability and effect of the credit and capital markets on
the economy in general and the oil and gas industry in particular; the access
to the credit markets by both Newpark and Newpark's customers; the outlook for
drilling activity in North America and the rest of the world; compliance with
our debt covenants; the investigation of certain accounting matters by the
Securities and Exchange Commission; changes in the laws, regulations, policies
and economic conditions, including inflation, interest and foreign currency
exchange rates, of countries in which Newpark does business; competitive
pressures; successful integration of structural changes, including
restructuring plans, acquisitions, divestitures and alliances; cost of raw
materials, research and development of new products, including regulatory
approval and market acceptance; and seasonality of sales of Newpark products
and services. Newpark's filings with the Securities and Exchange Commission
can be obtained at no charge at www.sec.gov, as well as through our website at
www.newpark.com.

Contacts: James E. Braun, CFO
Newpark Resources, Inc.
281-362-6800

Ken Dennard, Managing Partner
Dennard Rupp Gray & Easterly, LLC
ksdennard@drg-e.com
713-529-6600

Newpark Resources, Inc.
Consolidated Statements of Operations

Three Months Ended Six Months Ended
(Unaudited) June 30, June 30,
----------- -------- --------
(In thousands, except per share
data) 2009 2008 2009 2008
------------------------------- ---- ---- ---- ----

Revenues $109,599 $210,497 $236,537 $405,233

Cost of revenues 103,906 172,649 227,418 327,769
Selling, general and
administrative expenses 15,652 19,679 31,882 38,870
Other (income) expense, net (37) 152 (62) (37)
--- --- --- ---

Operating (loss) income (9,922) 18,017 (22,701) 38,631

Foreign currency exchange
(gain) loss (590) (199) (561) 97
Interest expense, net 1,600 2,649 3,250 5,876
----- ----- ----- -----

(Loss) income from continuing
operations before income taxes (10,932) 15,567 (25,390) 32,658
Provision for income taxes (2,145) 5,481 (4,599) 11,176
------ ----- ------ ------

(Loss) income from continuing
operations (8,787) 10,086 (20,791) 21,482
Loss from discontinued
operations, net of tax - (84) - (129)
--- --- --- ----

Net (loss) income $(8,787) $10,002 $(20,791) $21,353
======= ======= ======== =======

Basic weighted average common
shares outstanding 88,514 88,762 88,430 89,454
Diluted weighted average common
shares outstanding 88,514 89,073 88,430 89,671

(Loss) income per common share
- basic and diluted:
(Loss) income from continuing
operations $(0.10) $0.11 $(0.24) $0.24
Loss from discontinued
operations - - - -
--- --- --- ---
Net (loss) income per common
share $(0.10) $0.11 $(0.24) $0.24
====== ===== ====== =====

Newpark Resources, Inc.
Operating Segment Results

(Unaudited) Three Months Ended
----------- ------------------
(In thousands) June 30, 2009 March 31, 2009 June 30, 2008
-------------- ------------- -------------- -------------

Revenues
Fluids systems and
engineering $89,642 $106,588 $169,128
Mats and integrated
services 8,638 8,863 24,904
Environmental services 11,319 11,487 16,465
------ ------ ------
Total revenues $109,599 $126,938 $210,497
======== ======== ========

Operating (loss) income
Fluids systems and
engineering $(1,722) $(5,574) $18,104
Mats and integrated
services (4,774) (3,414) 2,417
Environmental services 1,385 1,157 2,492
Corporate office (4,811) (4,948) (4,996)
------ ------ ------
Total operating
(loss) income $(9,922) $(12,779) $18,017
======= ======== =======

Segment operating margin
Fluids systems and
engineering (1.9%) (5.2%) 10.7%
Mats and integrated
services (55.3%) (38.5%) 9.7%
Environmental services 12.2% 10.1% 15.1%

Newpark Resources, Inc.
Consolidated Balance Sheets

June 30, December 31,
(In thousands, except share data) 2009 2008
--------------------------------- ---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $6,711 $8,252
Receivables, net 98,905 211,366
Inventories 137,464 149,304
Deferred tax asset 7,366 22,809
Prepaid expenses and other current assets 11,234 11,062
------ ------
Total current assets 261,680 402,793

Property, plant and equipment, net 230,308 226,627
Goodwill 60,927 60,268
Deferred tax asset, net 7,525 707
Other intangible assets, net 17,562 18,940
Other assets 4,206 4,344
----- -----
Total assets $582,208 $713,679
======== ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Foreign bank lines of credit $6,370 $11,302
Current maturities of long-term debt 10,471 10,391
Accounts payable 44,902 89,018
Accrued liabilities 26,982 38,946
------ ------
Total current liabilities 88,725 149,657

Long-term debt, less current portion 127,944 166,461
Deferred tax liability 1,066 15,979
Other noncurrent liabilities 3,016 3,700
----- -----
Total liabilities 220,751 335,797

Common stock, $0.01 par value,
100,000,000 shares authorized
91,471,050 and 91,139,966 shares
issued, respectively 915 911
Paid-in capital 458,302 457,012
Accumulated other comprehensive income 4,580 1,296
Retained deficit (86,878) (66,087)
Treasury stock, at cost; 2,733,601 and
2,646,409 shares, respectively (15,462) (15,250)
------- -------
Total stockholders' equity 361,457 377,882
------- -------
Total liabilities and stockholders' equity $582,208 $713,679
======== ========

Newpark Resources, Inc.
Consolidated Statements of Cash Flows

Six Months Ended
(Unaudited) June 30,
----------- --------
(In thousands) 2009 2008
-------------- ---- ----

Cash flows from operating activities:
Net (loss) income $(20,791) $21,353
Adjustments to reconcile net (loss) income
to net cash provided by operations:
Net loss from discontinued operations - 129
Non-cash charges 941 -
Depreciation and amortization 14,093 14,554
Stock-based compensation expense 1,190 2,314
Provision for deferred income taxes (6,256) 9,118
Provision for doubtful accounts 1,533 1,336
(Gain) loss on sale of assets (265) 445
Change in assets and liabilities:
Decrease (increase) in receivables 111,652 (34,526)
Decrease (increase) in inventories 12,658 (707)
Decrease (increase) in other assets 427 (963)
(Decrease) increase in accounts payable (45,083) 4,394
(Decrease) increase in accrued liabilities
and other (12,592) 4,155
------- -----
Net operating activities of continuing
operations 57,507 21,602
Net operating activities of discontinued
operations - 1,776
--- -----
Net cash provided by operating activities 57,507 23,378

Cash flows from investing activities:
Capital expenditures (14,139) (11,580)
Proceeds from sale of property, plant and
equipment 734 78
--- ---
Net cash used in investing activities (13,405) (11,502)

Cash flows from financing activities:
Net (payments) borrowings on lines of credit (43,767) 2,098
Principal payments on notes payable and long-term
debt (195) (1,014)
Proceeds from employee stock plans 104 1,241
Purchase of treasury stock (212) (10,039)
---- -------
Net financing activities of continuing operations (44,070) (7,714)
Net financing activities of discontinued operations - (63)
--- ---
Net cash used in financing activities (44,070) (7,777)

Effect of exchange rate changes on cash (1,573) 447
------ ---

Net (decrease) increase in cash and cash equivalents (1,541) 4,546
Cash and cash equivalents at beginning of period 8,252 5,741
----- -----

Cash and cash equivalents at end of period $6,711 $10,287
====== =======

SOURCE Newpark Resources, Inc.

James E. Braun, CFO of Newpark Resources, Inc., +1-281-362-6800; or Ken
Dennard, Managing Partner of Dennard Rupp Gray & Easterly, LLC,
+1-713-529-6600, ksdennard@drg-e.com