Newpark Resources announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company's consolidated revenues increased 4% sequentially to $236 million for the second quarter, driven by improvements in both operating segments. During the second quarter, cash provided by operating activities was $21 million, consisting of $27 million of cash generated by operations, of which $6 million was used to fund a net increase in working capital. Capital expenditures used $14 million of cash in the quarter, including $8 million of capital investments in the Mats business, of which $7 million was used to expand mat rental fleet to support growth and expansion efforts. Operating income was $19,143,000 against $7,968,000 a year ago. Income from operations before income taxes was $14,994,000 against $3,993,000 a year ago. Net income was $10,846,000 against $1,632,000 a year ago. Income per diluted share was $0.12 against $0.02 a year ago. EBITDA (Non-GAAP) was $30,169,000 against $17,291,000 a year ago.

For the six months, the company reported revenues of $463,555,000 against $341,711,000 a year ago. Operating income was $32,981,000 against $11,714,000 a year ago. Income from operations before income taxes was $25,307,000 against $4,129,000 a year ago. Net income was $18,068,000 against $649,000 a year ago. Income per diluted share was $0.19 against $0.01 a year ago. Net cash provided by operating activities was $20,687,000 against $22,310,000 a year ago. EBITDA (Non-GAAP) was $55,053,000 against $30,032,000 a year ago. Net debt was $125,498,000 against $104,123,000 a year ago.

The company expects second half effective tax rate to be in the mid-30s, which is in a similar range to the first half of the year after adjusting for a few first half tax benefits, which company do not expect to recur.

For the 2018 full year capital expenditures, in response to the expanding opportunities, the company again raising its expectation to approximately $40 million, primarily reflecting elevated investments to expand mat rental fleet in support of expansion efforts, both in the U.S. and international markets as well as investments to support expansion into completion fluids and stimulation chemicals. In total, the company estimates that approximately half of full year capital expenditures will reflect growth investments while maintenance CapEx remains approximately $20 million per year.