Company Quick10K Filing
Newpark Resources
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 92 $666
10-Q 2019-10-31 Quarter: 2019-09-30
10-Q 2019-07-31 Quarter: 2019-06-30
10-Q 2019-04-26 Quarter: 2019-03-31
10-K 2019-02-22 Annual: 2018-12-31
10-Q 2018-10-26 Quarter: 2018-09-30
10-Q 2018-07-27 Quarter: 2018-06-30
10-Q 2018-04-27 Quarter: 2018-03-31
10-K 2018-02-23 Annual: 2017-12-31
10-Q 2017-10-31 Quarter: 2017-09-30
10-Q 2017-07-28 Quarter: 2017-06-30
10-Q 2017-04-28 Quarter: 2017-03-31
10-K 2017-02-24 Annual: 2016-12-31
10-Q 2016-10-31 Quarter: 2016-09-30
10-Q 2016-07-29 Quarter: 2016-06-30
10-Q 2016-05-13 Quarter: 2016-03-31
10-K 2016-02-26 Annual: 2015-12-31
10-Q 2015-10-30 Quarter: 2015-09-30
10-Q 2015-07-31 Quarter: 2015-06-30
10-Q 2015-05-01 Quarter: 2015-03-31
10-K 2015-02-27 Annual: 2014-12-31
10-Q 2014-10-31 Quarter: 2014-09-30
10-Q 2014-07-25 Quarter: 2014-06-30
10-Q 2014-04-25 Quarter: 2014-03-31
10-K 2014-02-28 Annual: 2013-12-31
10-Q 2013-10-25 Quarter: 2013-09-30
10-Q 2013-07-26 Quarter: 2013-06-30
10-Q 2013-04-26 Quarter: 2013-03-31
10-K 2013-02-28 Annual: 2012-12-31
10-Q 2012-10-26 Quarter: 2012-09-30
10-Q 2012-07-27 Quarter: 2012-06-30
10-Q 2012-05-02 Quarter: 2012-03-31
10-K 2012-02-29 Annual: 2011-12-31
10-Q 2011-10-28 Quarter: 2011-09-30
10-Q 2011-07-29 Quarter: 2011-06-30
10-Q 2011-04-29 Quarter: 2011-03-31
10-K 2011-03-08 Annual: 2010-12-31
10-Q 2010-10-29 Quarter: 2010-09-30
10-Q 2010-07-30 Quarter: 2010-06-30
10-Q 2010-05-10 Quarter: 2010-03-31
10-K 2010-03-03 Annual: 2009-12-31
8-K 2019-12-06 Regulation FD, Exhibits
8-K 2019-10-30 Earnings, Exhibits
8-K 2019-09-17 Regulation FD, Exhibits
8-K 2019-07-30 Earnings, Exhibits
8-K 2019-07-02 Officers, Regulation FD, Exhibits
8-K 2019-06-14 Regulation FD, Exhibits
8-K 2019-05-23 Officers, Shareholder Vote, Exhibits
8-K 2019-05-14 Regulation FD, Exhibits
8-K 2019-04-25 Earnings, Exhibits
8-K 2019-03-20 Enter Agreement, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2019-02-19 Officers, Exhibits
8-K 2019-02-11 Regulation FD, Exhibits
8-K 2019-02-07 Earnings, Exhibits
8-K 2019-01-16 Other Events
8-K 2018-12-04 Regulation FD, Exhibits
8-K 2018-12-03 Officers, Exhibits
8-K 2018-11-29 Regulation FD, Exhibits
8-K 2018-11-14 Leave Agreement, Officers, Exhibits
8-K 2018-11-14 Other Events, Exhibits
8-K 2018-10-25 Earnings, Exhibits
8-K 2018-10-02 Officers, Exhibits
8-K 2018-09-25 Regulation FD, Exhibits
8-K 2018-08-20 Regulation FD, Exhibits
8-K 2018-08-15 Officers, Regulation FD, Exhibits
8-K 2018-07-26 Earnings, Exhibits
8-K 2018-05-17 Shareholder Vote, Regulation FD, Exhibits
8-K 2018-05-15 Regulation FD, Exhibits
8-K 2018-04-26 Earnings, Exhibits
8-K 2018-04-02 Officers, Exhibits
8-K 2018-02-27 Officers, Exhibits
8-K 2018-02-12 Regulation FD, Exhibits
8-K 2018-02-08 Earnings, Other Events, Exhibits
NR 2019-09-30
Part I Financial Information
Item 1. Financial Statements
Note 1 - Basis of Presentation and Significant Accounting Policies
Note 2 - Earnings per Share
Note 3 - Repurchase Program
Note 4 - Stock-Based and Other Long-Term Incentive Compensation
Note 5 - Receivables
Note 6 - Inventories
Note 7 - Financing Arrangements and Fair Value of Financial Instruments
Note 8 - Leases
Note 9 - Income Taxes
Note 10 - Commitments and Contingencies
Note 11 - Supplemental Disclosures To The Statements of Cash Flows
Note 12 - Segment Data
Note 13 - Subsequent Event
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 a2019q310qexhibit101.htm
EX-31.1 a2019q310qexhibit311.htm
EX-31.2 a2019q310qexhibit312.htm
EX-32.1 a2019q310qexhibit321.htm
EX-32.2 a2019q310qexhibit322.htm
EX-95.1 a2019q310qexhibit951.htm

Newpark Resources Earnings 2019-09-30

NR 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
CSTM 930 3,901 4,015 0 0 0 0 766 0%
CIR 910 1,713 1,218 1,139 329 -51 96 1,561 29% 16.2 -3%
NCS 758 5,654 4,746 3,482 757 21 299 4,008 22% 13.4 0%
BRSS 750 721 516 1,724 190 61 119 952 11% 8.0 8%
WFT 703 6,381 10,770 5,528 308 -2,211 -1,070 7,451 6% -7.0 -35%
NR 666 934 368 911 116 20 86 783 13% 9.1 2%
TG 660 730 342 0 48 26 70 693 9.9 4%
NX 614 680 319 898 104 -9 59 795 12% 13.4 -1%
FET 397 1,822 802 1,062 250 -408 -333 838 24% -2.5 -22%
NNBR 379 1,572 1,194 840 0 -259 -112 1,245 0% -11.1 -16%

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-02960
nrimagea02.jpg 
Newpark Resources, Inc.
(Exact name of registrant as specified in its charter)
Delaware
72-1123385
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
 
 
9320 Lakeside Boulevard,
Suite 100
 
The Woodlands,
Texas
77381
(Address of principal executive offices)
(Zip Code)
 
(281) 362-6800
(Registrant’s telephone number, including area code)
 Not Applicable    
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
NR
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes       No   
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes       No   
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company




If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes      No       
As of October 28, 2019, a total of 89,713,692 shares of common stock, $0.01 par value per share, were outstanding.



NEWPARK RESOURCES, INC.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2019


 
 
 
 
 
 
 

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. We also may provide oral or written forward-looking statements in other materials we release to the public. Words such as “will,” “may,” “could,” “would,” “should,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying them. These forward-looking statements reflect the current views of our management; however, various risks, uncertainties, contingencies, and other factors, some of which are beyond our control, are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those expressed in, or implied by, these statements.
We assume no obligation to update, amend, or clarify publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this Quarterly Report on Form 10-Q might not occur.
For further information regarding these and other factors, risks, and uncertainties that could cause actual results to differ, we refer you to the risk factors set forth in Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018.

1


PART I 
FINANCIAL INFORMATION
ITEM 1.
Financial Statements
Newpark Resources, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
September 30, 2019
 
December 31, 2018
ASSETS
 
 
 
Cash and cash equivalents
$
53,673

 
$
56,118

Receivables, net
236,637

 
254,394

Inventories
183,443

 
196,896

Prepaid expenses and other current assets
18,703

 
15,904

Total current assets
492,456

 
523,312

 
 
 
 
Property, plant and equipment, net
316,498

 
316,293

Operating lease assets
29,697

 

Goodwill
43,760

 
43,832

Other intangible assets, net
22,306

 
25,160

Deferred tax assets
4,471

 
4,516

Other assets
3,423

 
2,741

Total assets
$
912,611

 
$
915,854

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current debt
$
5,003

 
$
2,522

Accounts payable
77,743

 
90,607

Accrued liabilities
43,858

 
48,797

Total current liabilities
126,604

 
141,926

 
 
 
 
Long-term debt, less current portion
157,355

 
159,225

Noncurrent operating lease liabilities
24,336

 

Deferred tax liabilities
36,692

 
37,486

Other noncurrent liabilities
7,993

 
7,536

Total liabilities
352,980

 
346,173

 
 
 
 
Commitments and contingencies (Note 10)


 


 
 
 
 
Common stock, $0.01 par value (200,000,000 shares authorized and 106,696,719 and 106,362,991 shares issued, respectively)
1,067

 
1,064

Paid-in capital
618,632

 
617,276

Accumulated other comprehensive loss
(71,770
)
 
(67,673
)
Retained earnings
151,303

 
148,802

Treasury stock, at cost (17,003,058 and 15,530,952 shares, respectively)
(139,601
)
 
(129,788
)
Total stockholders’ equity
559,631

 
569,681

Total liabilities and stockholders’ equity
$
912,611

 
$
915,854

 
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements


2


Newpark Resources, Inc.
Condensed Consolidated Statements of Operations
(Unaudited) 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(In thousands, except per share data)
2019
 
2018
 
2019
 
2018
Revenues
$
202,763

 
$
235,329

 
$
630,648

 
$
698,884

Cost of revenues
169,429

 
194,730

 
522,338

 
569,665

Selling, general and administrative expenses
27,017

 
29,820

 
85,796

 
85,482

Other operating (income) loss, net
29

 
725

 
(367
)
 
702

Operating income
6,288

 
10,054

 
22,881

 
43,035

 
 
 
 
 
 
 
 
Foreign currency exchange (gain) loss
828

 
(89
)
 
756

 
594

Interest expense, net
3,628

 
3,668

 
10,807

 
10,659

Income before income taxes
1,832

 
6,475

 
11,318

 
31,782

 
 
 
 
 
 
 
 
Provision for income taxes
3,273

 
2,831

 
7,171

 
10,070

Net income (loss)
$
(1,441
)
 
$
3,644

 
$
4,147

 
$
21,712

 
 
 
 
 
 
 
 
Net income (loss) per common share - basic:
$
(0.02
)
 
$
0.04

 
$
0.05

 
$
0.24

Net income (loss) per common share - diluted:
$
(0.02
)
 
$
0.04

 
$
0.05

 
$
0.23

 
See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements


3


Newpark Resources, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(In thousands)
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Net income (loss)
$
(1,441
)
 
$
3,644

 
$
4,147

 
$
21,712

 
 
 
 
 
 
 
 
Foreign currency translation adjustments (net of tax benefit of $713, $0, $604, $987)
(3,897
)
 
(1,670
)
 
(4,097
)
 
(11,548
)
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
(5,338
)
 
$
1,974

 
$
50

 
$
10,164


See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements


4


Newpark Resources, Inc.
Condensed Consolidated Statements of Stockholders Equity
(Unaudited)
(In thousands)
Common Stock
 
Paid-In Capital
 
Accumulated Other Comprehensive Loss
 
Retained Earnings
 
Treasury Stock
 
Total
Balance at June 30, 2019
$
1,067

 
$
618,626

 
$
(67,873
)
 
$
153,395

 
$
(139,086
)
 
$
566,129

Net loss

 

 

 
(1,441
)
 

 
(1,441
)
Employee stock options, restricted stock and employee stock purchase plan

 
(2,495
)
 

 
(651
)
 
2,979

 
(167
)
Stock-based compensation expense

 
2,501

 

 

 

 
2,501

Treasury shares purchased at cost

 

 

 

 
(3,494
)
 
(3,494
)
Foreign currency translation, net of tax

 

 
(3,897
)
 

 

 
(3,897
)
Balance at September 30, 2019
$
1,067

 
$
618,632

 
$
(71,770
)
 
$
151,303

 
$
(139,601
)
 
$
559,631

 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2018
$
1,061

 
$
611,667

 
$
(63,097
)
 
$
134,589

 
$
(129,497
)
 
$
554,723

Net income

 

 

 
3,644

 

 
3,644

Employee stock options, restricted stock and employee stock purchase plan
2

 
35

 

 

 
(232
)
 
(195
)
Stock-based compensation expense

 
3,649

 

 

 

 
3,649

Foreign currency translation, net of tax

 

 
(1,670
)
 

 

 
(1,670
)
Balance at September 30, 2018
$
1,063

 
$
615,351

 
$
(64,767
)
 
$
138,233

 
$
(129,729
)
 
$
560,151

 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
$
1,064

 
$
617,276

 
$
(67,673
)
 
$
148,802

 
$
(129,788
)
 
$
569,681

Net income

 

 

 
4,147

 

 
4,147

Employee stock options, restricted stock and employee stock purchase plan
3

 
(8,019
)
 

 
(1,646
)
 
9,218

 
(444
)
Stock-based compensation expense

 
9,375

 

 

 

 
9,375

Treasury shares purchased at cost

 

 

 

 
(19,031
)
 
(19,031
)
Foreign currency translation, net of tax

 

 
(4,097
)
 

 

 
(4,097
)
Balance at September 30, 2019
$
1,067

 
$
618,632

 
$
(71,770
)
 
$
151,303

 
$
(139,601
)
 
$
559,631

 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
$
1,046

 
$
603,849

 
$
(53,219
)
 
$
123,375

 
$
(127,571
)
 
$
547,480

Cumulative effect of accounting changes

 

 

 
(6,764
)
 

 
(6,764
)
Net income

 

 

 
21,712

 

 
21,712

Employee stock options, restricted stock and employee stock purchase plan
17

 
3,005

 

 
(90
)
 
(2,158
)
 
774

Stock-based compensation expense

 
8,497

 

 

 

 
8,497

Foreign currency translation, net of tax

 

 
(11,548
)
 

 

 
(11,548
)
Balance at September 30, 2018
$
1,063

 
$
615,351

 
$
(64,767
)
 
$
138,233

 
$
(129,729
)
 
$
560,151


See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements


5


Newpark Resources, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
Nine Months Ended September 30,
(In thousands)
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income
$
4,147

 
$
21,712

Adjustments to reconcile net income to net cash provided by operations:
 
 
 
Depreciation and amortization
34,891

 
34,346

Stock-based compensation expense
9,375

 
8,497

Provision for deferred income taxes
(787
)
 
(2,149
)
Net provision for doubtful accounts
1,044

 
2,708

Gain on sale of assets
(5,779
)
 
(552
)
Amortization of original issue discount and debt issuance costs
4,589

 
4,075

Change in assets and liabilities:
 
 
 
(Increase) decrease in receivables
17,065

 
(16,531
)
(Increase) decrease in inventories
11,873

 
(34,829
)
Increase in other assets
(3,621
)
 
(1,476
)
Increase (decrease) in accounts payable
(11,806
)
 
7,106

Decrease in accrued liabilities and other
(7,805
)
 
(2,791
)
Net cash provided by operating activities
53,186

 
20,116

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(35,803
)
 
(32,814
)
Proceeds from sale of property, plant and equipment
7,116

 
1,477

Refund of proceeds from sale of a business

 
(13,974
)
Business acquisitions, net of cash acquired

 
(249
)
Net cash used in investing activities
(28,687
)
 
(45,560
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Borrowings on lines of credit
237,093

 
275,801

Payments on lines of credit
(242,263
)
 
(254,116
)
Debt issuance costs
(1,214
)
 
(149
)
Proceeds from employee stock plans
1,236

 
3,813

Purchases of treasury stock
(21,678
)
 
(3,811
)
Other financing activities
1,336

 
2,140

Net cash provided by (used in) financing activities
(25,490
)
 
23,678

 
 
 
 
Effect of exchange rate changes on cash
(1,526
)
 
(3,798
)
 
 
 
 
Net decrease in cash, cash equivalents, and restricted cash
(2,517
)
 
(5,564
)
Cash, cash equivalents, and restricted cash at beginning of period
64,266

 
65,460

Cash, cash equivalents, and restricted cash at end of period
$
61,749

 
$
59,896


See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements

6



NEWPARK RESOURCES, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1Basis of Presentation and Significant Accounting Policies
The accompanying unaudited condensed consolidated financial statements of Newpark Resources, Inc. and our wholly-owned subsidiaries, which we collectively refer to as “we,” “our,” or “us,” have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission (“SEC”), and do not include all information and footnotes required by the accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018. Our fiscal year end is December 31, our third quarter represents the three-month period ended September 30, and our first nine months represents the nine-month period ended September 30. The results of operations for the third quarter and first nine months of 2019 are not necessarily indicative of the results to be expected for the entire year. Unless otherwise noted, all currency amounts are stated in U.S. dollars.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of September 30, 2019, our results of operations for the third quarter and first nine months of 2019 and 2018, and our cash flows for the first nine months of 2019 and 2018. All adjustments are of a normal recurring nature. Our balance sheet at December 31, 2018 is derived from the audited consolidated financial statements at that date.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For further information, see Note 1 in our Annual Report on Form 10-K for the year ended December 31, 2018.
New Accounting Pronouncements
Standards Adopted in 2019
Leases. In February 2016, the Financial Accounting Standards Board (“FASB”) amended the guidance related to the accounting for leases. The new guidance provides principles for the recognition, measurement, presentation, and disclosure of leases and requires lessees to recognize both assets and liabilities arising from finance and operating leases. The classification as either a finance or operating lease will determine whether lease expense is recognized based on an effective interest method basis or on a straight-line basis over the term of the lease, respectively.
We adopted this new guidance as of January 1, 2019 using the modified retrospective transition method and recorded approximately $28 million of operating lease assets and liabilities as of January 1, 2019, with no cumulative effect adjustment to retained earnings. The new guidance had no impact on our consolidated statements of operations or cash flows. Results for reporting periods beginning after December 31, 2018 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported in accordance with previous guidance.
As permitted under the transition guidance within the new standard, we elected to carry forward the historical lease identification and classification for existing leases upon adoption. We have also made an accounting policy election to not recognize leases with an initial term of 12 months or less in the consolidated balance sheets. See Note 8 for additional required disclosures.
Standards Not Yet Adopted
Credit Losses. In June 2016, the FASB issued new guidance which requires financial assets measured at amortized cost basis, including trade receivables, to be presented at the net amount expected to be collected. The new guidance requires an entity to estimate its lifetime “expected credit loss” for such assets at inception which will generally result in the earlier recognition of allowances for losses. This guidance is effective for us in the first quarter of 2020 with early adoption permitted and will be applied using a modified retrospective transition method through a cumulative-effect adjustment, if any, to retained earnings as of the date of adoption. As part of our assessment work to date, we have formed an implementation work team and conducted a preliminary analysis of the new guidance. Based on our current financial assets measured at amortized cost basis, we anticipate the new guidance may require us to reflect additional credit loss expense; however, we have not yet completed an estimation of such amount and we are still evaluating the overall impact of the new guidance on our consolidated financial statements and related disclosures.

7



Note 2Earnings Per Share
The following table presents the reconciliation of the numerator and denominator for calculating net income (loss) per share:
 
Third Quarter
 
First Nine Months
(In thousands, except per share data)
2019
 
2018
 
2019
 
2018
Numerator
 
 
 
 
 
 
 
Net income (loss) - basic and diluted
$
(1,441
)
 
$
3,644

 
$
4,147

 
$
21,712

 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
89,675

 
90,526

 
89,863

 
89,779

Dilutive effect of stock options and restricted stock awards

 
2,151

 
1,676

 
2,535

Dilutive effect of 2021 Convertible Notes

 
905

 

 
727

Weighted average common shares outstanding - diluted
89,675

 
93,582

 
91,539

 
93,041

 
 
 
 
 
 
 
 
Net income (loss) per common share
 
 
 
 
 
 
 
Basic
$
(0.02
)
 
$
0.04

 
$
0.05

 
$
0.24

Diluted
$
(0.02
)
 
$
0.04

 
$
0.05

 
$
0.23


We excluded the following weighted-average potential shares from the calculations of diluted net income (loss) per share during the applicable periods because their inclusion would have been anti-dilutive:
 
Third Quarter
 
First Nine Months
(In thousands)
2019
 
2018
 
2019
 
2018
Stock options and restricted stock awards
4,989

 
735

 
1,812

 
1,184


For the third quarter of 2019, we excluded all potentially dilutive stock options and restricted stock awards in calculating diluted earnings per share as the effect was anti-dilutive due to the net loss incurred for this period. The 2021 Convertible Notes (as defined in Note 7) only impact the calculation of diluted net income per share in periods that the average price of our common stock, as calculated in accordance with the terms of the indenture governing the 2021 Convertible Notes, exceeds the conversion price of $9.33 per share. We have the option to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due upon conversion of the 2021 Convertible Notes as further described in Note 7. If converted, we currently intend to settle the principal amount of the notes in cash and as a result, only the amounts payable in excess of the principal amount of the notes, if any, are assumed to be settled with shares of common stock for purposes of computing diluted net income per share.

8



Note 3Repurchase Program
In November 2018, our Board of Directors authorized changes to our existing securities repurchase program. The authorization increased the amount under the repurchase program to $100 million, available for repurchases of any combination of our common stock and our 2021 Convertible Notes. The repurchase program has no specific term. Repurchases are expected to be funded from operating cash flows, available cash on hand, and borrowings under our ABL Facility (as defined in Note 7). As part of the share repurchase program, our management has been authorized to establish trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934.
During the first nine months of 2019, we repurchased an aggregate of 2,537,833 shares of our common stock under our Board authorized repurchase program for a total cost of $19.0 million. There were no shares repurchased under the program during the first nine months of 2018. As of September 30, 2019, we had $81.0 million remaining under the program.
Note 4Stock-Based and Other Long-Term Incentive Compensation
During the second quarter of 2019, our stockholders approved an amendment to the 2015 Employee Equity Incentive Plan (“2015 Plan”) to increase the number of shares authorized for issuance under the 2015 Plan from 9,800,000 to 12,300,000 shares and remove the fungible share counting provision.
During the second quarter of 2019, the Compensation Committee of our Board of Directors (“Compensation Committee”) approved equity-based compensation to executive officers and other key employees, consisting of 1,135,216 shares of restricted stock units which will primarily vest in equal installments over a three-year period. At September 30, 2019, 3,341,007 shares remained available for award under the 2015 Plan. In addition, non-employee directors received a grant of 104,900 shares of restricted stock awards which will vest in full on the earlier of the day prior to the next annual meeting of stockholders following the grant date or the first anniversary of the grant date. The weighted average grant-date fair value was $7.34 per share for both the restricted stock units and restricted stock awards.
Also during the second quarter of 2019, the Compensation Committee approved the issuance of cash-settled awards to certain executive officers, consisting of a target amount of $2.3 million of performance-based cash awards. The performance-based cash awards will be settled based on the relative ranking of our total shareholder return (“TSR”) as compared to the TSR of our designated peer group over a three-year period. The performance period began June 1, 2019 and ends May 31, 2022, with the ending TSR price being equal to the average closing price of our shares over the 30-calendar days ending May 31, 2022 and the cash payout for each executive ranging from 0% to 200% of target. The performance-based cash awards are accrued as a liability award over the performance period based on the estimated fair value. The fair value of the performance-based cash awards is remeasured each period using a Monte-Carlo valuation model with changes in fair value recognized in the consolidated statements of operations.
In February 2019, the Compensation Committee modified our retirement policy applicable to cash and equity awards granted to include our Chief Executive Officer and those officers who report to our Chief Executive Officer, whom were previously excluded from the retirement policy. In addition, the Compensation Committee also modified the retirement policy for certain vested stock options that remain outstanding to extend the exercise period available following the qualifying retirement of eligible employees. As a result of these modifications, we recognized a pretax charge of approximately $4.0 million in the first quarter of 2019. This charge primarily reflects the acceleration of expense, as well as the incremental value associated with modifications to extend the exercise period of outstanding options, for previously-granted awards for retirement eligible executive officers.


9



Note 5Receivables
Receivables consisted of the following:
(In thousands)
September 30, 2019
 
December 31, 2018
Trade receivables:
 
 
 
Gross trade receivables
$
226,670

 
$
248,176

Allowance for doubtful accounts
(8,548
)
 
(10,034
)
Net trade receivables
218,122

 
238,142

Income tax receivables
11,286

 
9,027

Other receivables
7,229

 
7,225

Total receivables, net
$
236,637

 
$
254,394


Other receivables included $5.9 million and $6.3 million for value added, goods and service taxes related to foreign jurisdictions as of September 30, 2019 and December 31, 2018, respectively.
Note 6Inventories
Inventories consisted of the following:
(In thousands)
September 30, 2019
 
December 31, 2018
Raw materials:
 
 
 
Fluids systems
$
132,508

 
$
148,737

Mats and integrated services
5,622

 
1,485

Total raw materials
138,130

 
150,222

Blended fluids systems components
36,648

 
38,088

Finished goods - mats
8,665

 
8,586

Total inventories
$
183,443

 
$
196,896


Raw materials for the Fluids Systems segment consists primarily of barite, chemicals, and other additives that are consumed in the production of our fluids systems. Raw materials for the Mats and Integrated Services segment consists primarily of resins, chemicals, and other materials used to manufacture composite mats, as well as materials that are consumed in providing spill containment and other services to our customers. Our blended fluids systems components consist of base fluid systems that have been either mixed internally at our blending facilities or purchased from third-party vendors. These base fluid systems require raw materials to be added, as needed to meet specified customer requirements.
Note 7Financing Arrangements and Fair Value of Financial Instruments
Financing arrangements consisted of the following:

September 30, 2019
 
December 31, 2018
(In thousands)
Principal Amount
 
Unamortized Discount and Debt Issuance Costs
 
Total Debt
 
Principal Amount
 
Unamortized Discount and Debt Issuance Costs
 
Total Debt
2021 Convertible Notes
$
100,000

 
$
(13,707
)
 
$
86,293

 
$
100,000

 
$
(17,752
)
 
$
82,248

ABL Facility
70,200

 

 
70,200

 
76,300

 

 
76,300

Other debt
5,865

 

 
5,865

 
3,199

 

 
3,199

Total debt
176,065

 
(13,707
)
 
162,358

 
179,499

 
(17,752
)
 
161,747

Less: Current portion
(5,003
)
 

 
(5,003
)
 
(2,522
)
 

 
(2,522
)
Long-term debt
$
171,062

 
$
(13,707
)
 
$
157,355

 
$
176,977

 
$
(17,752
)
 
$
159,225



10



2021 Convertible Notes. In December 2016, we issued $100.0 million of unsecured convertible senior notes (“2021 Convertible Notes”) that mature on December 1, 2021, unless earlier converted by the holders pursuant to the terms of the notes. The notes bear interest at a rate of 4.0% per year, payable semiannually in arrears on June 1 and December 1 of each year.
Holders may convert the notes at their option at any time prior to the close of business on the business day immediately preceding June 1, 2021, only under the following circumstances:
during any calendar quarter commencing after the calendar quarter ending on March 31, 2017 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (regardless of whether consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the notes in effect on each applicable trading day;
during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day was less than 98% of the last reported sale price of our common stock on such date multiplied by the conversion rate on each such trading day; or
upon the occurrence of specified corporate events, as described in the indenture governing the notes, such as a consolidation, merger, or share exchange.
On or after June 1, 2021 until the close of business on the business day immediately preceding the maturity date, holders may convert their notes at any time, regardless of whether any of the foregoing conditions have been satisfied. As of October 28, 2019, the notes were not convertible.
The notes are convertible into, at our election, cash, shares of common stock, or a combination of both, subject to satisfaction of specified conditions and during specified periods, as described above. If converted, we currently intend to pay cash for the principal amount of the notes converted. The conversion rate is 107.1381 shares of our common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of $9.33 per share of common stock), subject to adjustment in certain circumstances. We may not redeem the notes prior to their maturity date.
In accordance with accounting guidance for convertible debt with a cash conversion option, we separately accounted for the debt and equity components of the notes in a manner that reflected our estimated nonconvertible debt borrowing rate. As of September 30, 2019, the carrying amount of the debt component was $86.3 million, which is net of the unamortized debt discount and issuance costs of $12.3 million and $1.4 million, respectively. Including the impact of the debt discount and related deferred debt issuance costs, the effective interest rate on the notes is approximately 11.3%.
Asset-Based Loan Facility. In May 2016, we entered into an asset-based revolving credit agreement which replaced our previous credit agreement. In October 2017, we entered into an Amended and Restated Credit Agreement and in March 2019, we entered into a First Amendment to Amended and Restated Credit Agreement (as amended, the “ABL Facility”). The March 2019 amendment increased the amount available for borrowings, reduced applicable borrowing rates, and extended the term. The ABL Facility provides financing of up to $200.0 million available for borrowings (inclusive of letters of credit) and can be increased up to a maximum capacity of $275.0 million, subject to certain conditions. As of September 30, 2019, our total availability under the ABL Facility was $171.0 million, of which $70.2 million was drawn, resulting in remaining availability of $100.8 million.
The ABL Facility terminates in March 2024; however, the ABL Facility has a springing maturity date that will accelerate the maturity of the ABL Facility to September 1, 2021 if, prior to such date, the 2021 Convertible Notes have not been repurchased, redeemed, refinanced, exchanged or otherwise satisfied in full or we have not escrowed an amount of funds, that together with the amount that we establish as a reserve against our borrowing capacity, is sufficient for the future settlement of the 2021 Convertible Notes at their maturity. The ABL Facility requires compliance with a minimum fixed charge coverage ratio and minimum unused availability of $25.0 million to utilize borrowings or assignment of availability under the ABL Facility towards funding the repayment of the 2021 Convertible Notes.
Borrowing availability under the ABL Facility is calculated based on eligible accounts receivable, inventory, and, subject to satisfaction of certain financial covenants as described below, composite mats included in the rental fleet, net of reserves and limits on such assets included in the borrowing base calculation. To the extent pledged by us, the borrowing base calculation also includes the amount of eligible pledged cash. The lender may establish such reserves, in part based on appraisals of the asset base, and other limits at its discretion which could reduce the amounts otherwise available under the ABL Facility. Availability associated with eligible rental mats will also be subject to maintaining a minimum consolidated fixed charge coverage ratio and a minimum level of operating income for the Mats and Integrated Services segment.
Under the terms of the ABL Facility, we may elect to borrow at a variable interest rate plus an applicable margin based on either, (1) LIBOR subject to a floor of zero or (2) a base rate equal to the highest of: (a) the federal funds rate plus 50 basis points, (b) the prime rate of Bank of America, N.A. and (c) LIBOR, subject to a floor of zero, plus 100 basis points, plus, in each case, an applicable margin per annum. The applicable margin ranges from 150 to 200 basis points for LIBOR borrowings, and 50

11



to 100 basis points for base rate borrowings, based on the consolidated fixed charge coverage ratio as defined in the ABL Facility. As of September 30, 2019, the applicable margin for borrowings under our ABL Facility was 150 basis points with respect to LIBOR borrowings and 50 basis points with respect to base rate borrowings. The weighted average interest rate for the ABL Facility was 3.8% at September 30, 2019. In addition, we are required to pay a commitment fee on the unused portion of the ABL Facility ranging from 25 to 37.5 basis points, based on the level of outstanding borrowings, as defined in the ABL Facility. As of September 30, 2019, the applicable commitment fee was 37.5 basis points.
The ABL Facility is a senior secured obligation, secured by first liens on all of our U.S. tangible and intangible assets, and a portion of the capital stock of our non-U.S. subsidiaries has also been pledged as collateral. The ABL Facility contains customary operating covenants and certain restrictions including, among other things, the incurrence of additional debt, liens, dividends, asset sales, investments, mergers, acquisitions, affiliate transactions, stock repurchases and other restricted payments. The ABL Facility also requires compliance with a fixed charge coverage ratio if availability under the ABL Facility falls below $22.5 million. In addition, the ABL Facility contains customary events of default, including, without limitation, a failure to make payments under the facility, acceleration of more than $25.0 million of other indebtedness, certain bankruptcy events, and certain change of control events.
Other Debt. Our foreign subsidiaries in Italy, India, and Canada maintain local credit arrangements consisting primarily of lines of credit which are renewed on an annual basis. We utilize local financing arrangements in our foreign operations in order to provide short-term local liquidity needs. We had $2.0 million and $1.1 million outstanding under these arrangements at September 30, 2019 and December 31, 2018, respectively.
At September 30, 2019, we had $13.1 million in outstanding letters of credit and performance bonds, for which the letters of credit are collateralized by $6.1 million in restricted cash. We also have a performance bond issued and outstanding of $6.0 million related to the appeals process for an ongoing income tax audit for our Mexico subsidiary. Additionally, our foreign operations had $33.0 million in outstanding letters of credit, performance bonds and other guarantees, primarily issued under a credit arrangement in Italy as well as certain letters of credit that are collateralized by $2.0 million in restricted cash.
Our financial instruments include cash and cash equivalents, receivables, payables, and debt. We believe the carrying values of these instruments, with the exception of our 2021 Convertible Notes, approximated their fair values at September 30, 2019 and December 31, 2018. The estimated fair value of our 2021 Convertible Notes was $106.2 million at September 30, 2019 and $120.9 million at December 31, 2018, based on quoted market prices at these respective dates.


12



Note 8Leases
We lease certain office space, manufacturing facilities, warehouses, land, and equipment. Our leases have remaining terms ranging from 1 to 10 years with various extension and termination options. We consider these options in determining the lease term used to establish our operating lease assets and liabilities. Lease agreements with lease and non-lease components are accounted for as a single lease component. Leases with an initial term of 12 months or less are not recorded in the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
Leases consisted of the following:
(In thousands)
Balance Sheet Classification
September 30, 2019
Assets:
 
 
Operating
Operating lease assets
$
29,697

Finance
Property, plant and equipment, net
1,215

Total lease assets
 
$
30,912

Liabilities:
 
 
Current:
 
 
Operating
Accrued liabilities
$
6,093

Finance
Current debt
271

Noncurrent:
 
 
Operating
Noncurrent operating lease liabilities
$
24,336

Finance
Long-term debt, less current portion
862

Total lease liabilities
 
$
31,562


Total operating lease expenses were $7.4 million for the third quarter of 2019, of which $4.9 million related to short-term leases and $2.5 million related to leases recognized in the balance sheet. Total operating lease expenses were $21.8 million for the first nine months of 2019, of which $14.3 million related to short-term leases and $7.5 million related to leases recognized in the balance sheet. Total operating lease expenses approximate cash paid during each period. Amortization and interest for finance leases are not material. Operating lease expenses and amortization of leased assets for finance leases are included in either cost of revenues or selling, general and administrative expenses. Interest for finance leases is included in interest expense, net.
The maturity of lease liabilities as of September 30, 2019 is as follows:
(In thousands)
Operating Leases
 
Finance Leases
 
Total
2019 (remainder of year)
$
2,017

 
$
89

 
$
2,106

2020
6,777

 
312

 
7,089

2021
5,500

 
312

 
5,812

2022
4,254

 
312

 
4,566

2023
3,196

 
211

 
3,407

Thereafter
14,526

 

 
14,526

Total lease payments
36,270

 
1,236

 
37,506

Less: Interest
5,841

 
103

 
5,944

Present value of lease liabilities
$
30,429

 
$
1,133

 
$
31,562


During the third quarter and first nine months of 2019, we entered into $3.8 million and $6.7 million, respectively, of new operating lease liabilities in exchange for leased assets.

13



Lease Term and Discount Rate
September 30, 2019
Weighted-average remaining lease term (years)
 
Operating leases
7.4

Finance leases
3.9

Weighted-average discount rate
 
Operating leases
4.6
%
Finance leases
4.5
%

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting guidance, future minimum payments under non-cancelable operating leases at December 31, 2018, with initial or remaining terms in excess of one year are included in the table below. Future minimum payments under capital leases were not significant.
(In thousands)
 
2019
$
9,112

2020
5,707

2021
4,630

2022
3,816

2023
3,144

Thereafter
4,507

 
$
30,916




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Note 9Income Taxes
The provision for income taxes was $7.2 million for the first nine months of 2019, reflecting an effective tax rate of 63%, compared to $10.1 million for the first nine months of 2018, reflecting an effective tax rate of 32%. The effective tax rate for the first nine months of 2019 was negatively impacted by the decrease in U.S. earnings, as well as non-deductible expenses, relative to the amount of pre-tax income. The effective tax rate for the first nine months of 2018 also included a $1.7 million net benefit related to the U.S. Tax Cuts and Jobs Act ("Tax Act") as well as $0.8 million in excess tax benefits related to the vesting of certain stock-based compensation awards during the period. The provision for income taxes was $3.3 million for the third quarter of 2019. As a result of a decline in anticipated earnings in the U.S. for the full year 2019, the third quarter 2019 provision for income taxes includes a $2.0 million charge, primarily reflecting the impact of an increase in the projected full year 2019 tax rate.
We file income tax returns in the United States and several non-U.S. jurisdictions and are subject to examination in the various jurisdictions in which we file. Following an audit in 2015, the treasury authority in Mexico issued a tax assessment (inclusive of interest and penalties) in the amount of 60 million pesos (approximately $3.3 million) to our Mexico subsidiary, primarily in connection with the export of mats from Mexico in 2010. The mats that are the subject of this assessment were owned by a U.S. subsidiary and leased to our Mexico subsidiary for matting projects in the Mexican market. In 2010, we made the decision to move these mats out of Mexico to markets with higher demand. The Mexican treasury authority determined the export of the mats was the equivalent of a sale and assessed taxes on the gross declared value of the exported mats to our Mexico subsidiary. We retained outside legal counsel and filed administrative appeals with the treasury authority, but we were notified in April 2018 that the last administrative appeal had been rejected. In response, we filed an appeal in the Mexican Federal Tax Court in the second quarter of 2018, which required that we post a bond in the amount of the assessed taxes (plus additional interest). In the fourth quarter of 2018, the Mexican Federal Tax Court issued a favorable judgment nullifying in full the tax assessment which was subsequently appealed by the treasury authority in Mexico. Following a judgment by the Mexican Court of Appeals, the Mexican Federal Tax Court, in the third quarter of 2019, confirmed the full nullification of the tax assessment based on a due process violation and recognized the treasury authority's right to cure the due process violation by starting a new tax audit. The treasury authority in Mexico is appealing the latest judgment from the Mexican Federal Tax Court. Although the tax appeals process has not concluded, we believe our tax position is properly reported in accordance with applicable tax laws and regulations in Mexico and intend to vigorously defend our position through the tax appeals process.
We are also under examination by various tax authorities in other countries, and certain foreign jurisdictions have challenged the amounts of taxes due for certain tax periods. These audits are in various stages of completion. We fully cooperate with all audits, but defend existing positions vigorously. We evaluate the potential exposure associated with various filing positions and record a liability for uncertain tax positions as circumstances warrant. Although we believe all tax positions are reasonable and properly reported in accordance with applicable tax laws and regulations in effect during the periods involved, the final determination of tax audits and any related litigation could be materially different than that which is reflected in historical income tax provisions and accruals.


15



Note 10Commitments and Contingencies
In the ordinary course of conducting our business, we become involved in litigation and other claims from private party actions, as well as judicial and administrative proceedings involving governmental authorities at the federal, state, and local levels. While the outcome of litigation or other proceedings against us cannot be predicted with certainty, management does not consider it reasonably possible that a loss resulting from such litigation or other proceedings, in excess of any amounts accrued or covered by insurance, has been incurred that is expected to have a material adverse impact on our consolidated financial statements.
Kenedy, Texas Drilling Fluids Facility Fire
In July 2018, a fire occurred at our Kenedy, Texas drilling fluids facility, destroying the distribution warehouse, including inventory and surrounding equipment. In addition, nearby residences and businesses were evacuated as part of the response to the fire. In order to avoid any customer service disruptions, we implemented contingency plans to supply products from alternate facilities in the area and region. During the third quarter of 2018 and subsequently, we have received petitions seeking payment for alleged bodily injuries, property damage, and punitive damages claimed to have been incurred as a result of the fire and the subsequent efforts we undertook to remediate any potential smoke damage. As of September 30, 2019, there are open claims with 38 plaintiffs seeking a total of approximately $1.5 million. While no trial date has been set for the matter at this time, we have been advised by our insurer that these claims are insured under our general liability insurance program. While this event and related claims are covered by our property, business interruption, and general liability insurance programs, these programs contain self-insured retentions, which remain our financial obligations.
During 2018, we incurred fire-related costs of $4.8 million, which included $1.9 million for inventory and property, plant and equipment, $2.1 million in property-related cleanup and other costs, and $0.8 million relating to our self-insured retention for third-party claims. Based on the provisions of our insurance policies and initial insurance claims filed, we estimated $4.0 million in expected insurance recoveries and recognized a charge of $0.8 million in other operating (income) loss, net, in the third quarter of 2018. The insurance receivable balance included in other receivables was $0.3 million as of September 30, 2019, and $0.6 million as of December 31, 2018. As of September 30, 2019, the claims related to the fire under our property, business interruption, and general liability insurance programs have not been finalized.
Note 11Supplemental Disclosures to the Statements of Cash Flows
Supplemental disclosures to the statements of cash flows are presented below:
 
First Nine Months
(In thousands)
2019
 
2018
Cash paid for:
 
 
 
Income taxes (net of refunds)
$
10,095

 
$
11,899

Interest
$
5,702

 
$
5,507


Cash, cash equivalents, and restricted cash in the consolidated statements of cash flows consisted of the following:
(In thousands)
September 30, 2019
 
December 31, 2018
Cash and cash equivalents
$
53,673

 
$
56,118

Restricted cash (included in other current assets)
8,076

 
8,148

Cash, cash equivalents, and restricted cash
$
61,749

 
$
64,266




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Note 12Segment Data
Summarized operating results for our reportable segments are shown in the following table (net of inter-segment transfers):
 
Third Quarter
 
First Nine Months
(In thousands)
2019
 
2018
 
2019
 
2018
Revenues
 
 
 
 
 
 
 
Fluids systems
$
152,547

 
$
180,970

 
$
485,744

 
$
538,087

Mats and integrated services
50,216

 
54,359

 
144,904

 
160,797

Total revenues
$
202,763

 
$
235,329

 
$
630,648

 
$
698,884

 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
 
Fluids systems
$
5,893

 
$
8,288

 
$
21,951

 
$
32,092

Mats and integrated services
10,049

 
12,925

 
32,863

 
39,864

Corporate office
(9,654
)
 
(11,159
)
 
(31,933
)
 
(28,921
)
Total operating income
$
6,288

 
$
10,054

 
$
22,881

 
$
43,035


The following table presents further disaggregated revenues for the Fluids Systems segment:
 
Third Quarter
 
First Nine Months
(In thousands)
2019
 
2018
 
2019
 
2018
United States
$
98,140

 
$
106,992

 
$
318,353

 
$
303,794

Canada
8,029

 
16,960

 
26,283

 
51,317

Total North America
106,169

 
123,952

 
344,636

 
355,111

 
 
 
 
 
 
 
 
EMEA
41,126

 
46,614

 
123,346

 
147,595

Asia Pacific
3,986

 
4,064

 
13,649

 
12,224

Latin America
1,266

 
6,340

 
4,113

 
23,157

Total International
46,378

 
57,018

 
141,108

 
182,976