RES 8-K
Rpc Inc (RES)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 30, 2025, RPC, Inc. issued a press release titled “RPC, Inc. Reports Third Quarter 2025 Financial Results And Declares Regular Quarterly Cash Dividend,” announcing the financial results for the third quarter ended September 30, 2025.
Item 9.01. Financial Statements and Exhibits.
| 99.1 |
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| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
-2-
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. |
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Date: October 30, 2025 | /s/ Michael L. Schmit |
| Michael L. Schmit |
| Vice President and Chief Financial Officer |
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Page 1
Third Quarter 2025 Earnings Release
Exhibit 99.1
RPC, Inc. Reports Third Quarter 2025 Financial Results
And Declares Regular Quarterly Cash Dividend
ATLANTA, October 30, 2025 - RPC, Inc. (NYSE: RES) (“RPC” or the “Company”), a leading diversified oilfield services company, announced its unaudited results for the third quarter ended September 30, 2025.
Non-GAAP and adjusted measures, including adjusted revenues, adjusted operating income, adjusted net income, adjusted earnings per share (diluted), EBITDA and adjusted EBITDA, adjusted EBITDA margin, and free cash flow are reconciled to the most directly comparable GAAP measures in the appendices of this earnings release.
Sequential comparisons are to 2Q:25. The Company believes quarterly sequential comparisons are most useful in assessing industry trends and RPC’s recent financial results. Both sequential and year-over-year comparisons are available in the tables at the end of this earnings release.
Third Quarter 2025 Highlights
| ● | Revenues increased 6% sequentially to $447.1 million |
| ● | Net income was $13.0 million, up 28% sequentially, and diluted Earnings Per Share (EPS) was $0.06; Net income margin increased 50 basis points sequentially to 2.9% |
| ● | Adjusted net income, was $18.4 million, up 5% sequentially, and adjusted diluted Earnings per Share (EPS) was $0.09; Adjusted net income margin remained relatively unchanged at 4.1% |
| ● | Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $72.3 million, up 10% sequentially; Adjusted EBITDA margin increased 60 basis points sequentially to 16.2% |
Management Commentary
“Sequentially we saw most of our service line revenues improve including pressure pumping, which saw a 14% increase from a soft second quarter. Cudd Pressure Control’s coiled tubing business also posted a 19% increase, supported by the deployment of a new large diameter unit. Additionally, Thru-Tubing Solutions’ downhole tools business continued to experience strong demand, driven by new product introductions that deliver leading performance for our customers. Patterson Services’ rental tools and Pintail’s wireline also saw modest increases in the quarter,” stated Ben M. Palmer, RPC’s President and Chief Executive Officer. “Our diversified offerings, strong brands, and balance sheet provide resiliency, yet the challenging environment continues to require disciplined execution.”
“During the quarter we saw signs of stabilization, and even improvement, with August and September results higher than the June lows. However, with oil prices recently dipping below $60 a barrel and expected holiday slow downs and customer budget exhaustion, the oilfield services market is likely to face additional headwinds during the fourth quarter. Given these market conditions, we have and will continue to make incremental cost reductions during the quarter. We will invest in our businesses prudently and focus on full cycle returns.”
Selected Industry Data (Source: Baker Hughes, Inc., U.S. Energy Information Administration)
|
| 3Q:25 |
| 2Q:25 |
| Change |
| % Change |
| 3Q:24 |
| Change |
| % Change |
| |||||
U.S. rig count (avg) |
| | 540 |
| | 571 |
| | (31) |
| (5.4) | % | | 586 |
| | (46) |
| (7.8) | % |
Oil price ($/barrel) | | $ | 65.85 | | $ | 64.74 | | $ | 1.11 |
| 1.7 | % | $ | 76.57 | | $ | (10.72) |
| (14.0) | % |
Natural gas ($/Mcf) | | $ | 3.04 | | $ | 3.20 | | $ | (0.16) |
| (5.0) | % | $ | 2.10 | | $ | 0.94 |
| 44.8 | % |
Page 2
Third Quarter 2025 Earnings Release
3Q:25 Consolidated Financial Results (sequential comparisons to previous quarter)
Revenues were $447.1 million, up 6%. Revenues for our three largest service lines grew sequentially during the quarter with pressure pumping increasing 14% followed by downhole tools at 5% and wireline at 1%. Within the Technical Services segment, we saw revenues increase 6% sequentially with the biggest dollar increases generated by pressure pumping followed by coiled tubing, which benefited from the delivery of a new unit. Within the Support Services segment, rental tools generated a 4% sequential revenue increase during the quarter.
Cost of revenues, which excludes depreciation and amortization of $38.4 million, was $334.7 million, up from $317.7 million. These costs increased 5% during the quarter. The increase was primarily due to expenses that vary with increased activity.
Selling, general and administrative expenses were $44.6 million, up from $40.8 million, primarily due to accrual adjustments related to employment incentives and higher other employment related costs; as a percent of revenues, SG&A increased 30 basis points to 10.0%.
Acquisition related employment costs were approximately $6.5 million during 3Q:25 and represent non-cash accounting adjustments related to the Pintail acquisition costs that are contingent upon continued employment. The remaining Acquisition related employment costs, totaling $65.1 million, are expected to be recognized equally over the next 10 quarters.
Interest income totaled $1.7 million, approximating the prior quarter.
Interest expense totaled $949 thousand, approximating the prior quarter and mostly related to the seller note issued in conjunction with the Pintail acquisition.
Income tax provision was $9.6 million, or 42.6% of income before income taxes. The effective tax rate was unusually high primarily due to the non-deductible portion of Acquisition related employment costs and provision to tax return adjustments.
Net income and diluted EPS were $13.0 million and $0.06, respectively, versus $10.1 million and $0.05, respectively, in 2Q:25. Net income margin increased 50 basis points sequentially to 2.9%.
Adjusted net income and adjusted diluted EPS were $18.4 million and $0.09, respectively, versus $17.5 million and $0.08, respectively, in 2Q:25. Adjusted net income margin remained relatively unchanged at 4.1%.
Adjusted EBITDA was $72.3 million, up from $65.6 million, due to the broad-based revenue increases across the majority of our businesses. Adjusted EBITDA margin increased 60 basis points sequentially to 16.2%.
Balance Sheet, Cash Flow and Capital Allocation
Cash and cash equivalents were $163.5 million at the end of the third quarter, with no outstanding borrowings under the Company’s $100 million revolving credit facility.
Net cash provided by operating activities and free cash flow was $139.5 million and $21.7 million, respectively, year-to-date through 3Q:25.
Payment of dividends totaled $26.3 million year-to-date through 3Q:25. Additionally, the Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on December 10, 2025, to common stockholders of record at the close of business on November 10, 2025.
Page 3
Third Quarter 2025 Earnings Release
Share repurchases totaled $2.9 million year-to-date through 3Q:25, all of which related to tax withholding for restricted stock vesting.
Segment Operations (sequential comparisons versus the previous quarter)
Technical Services performs value-added completion, production and maintenance services directly to a customer’s well. These services include pressure pumping, downhole tools, wireline, coiled tubing, cementing, and other offerings.
| - | Revenues were $422.2 million, up 6% |
| - | Operating income was $24.4 million, up 16% |
| - | Results were driven by improvement in the majority of our service lines within this segment |
Support Services provides equipment for customer use or services to assist customer operations, including rental tools, pipe inspection services and storage.
| - | Revenues were $24.9 million, up 4% |
| - | Operating income was $4.6 million, down 1% |
| - | Higher revenues were driven by increased activity in rental tools and tubular services |
| | Three months ended |
| Nine months ended | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | |||||
(In thousands) |
| 2025 |
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
| | | (Unaudited) |
| | (Unaudited) |
| | (Unaudited) |
| | (Unaudited) | | | (Unaudited) |
Revenues: |
| | | | | | | | | | | |
| |
|
Technical Services | | $ | 422,206 | | $ | 396,754 | | $ | 313,492 | | $ | 1,130,804 | | $ | 1,011,370 |
Support Services | |
| 24,897 | |
| 24,055 | |
| 24,160 | |
| 69,985 | |
| 68,268 |
Total revenues | | $ | 447,103 | | $ | 420,809 | | $ | 337,652 | | $ | 1,200,789 | | $ | 1,079,638 |
Operating income: | |
|
| |
|
| |
|
| |
|
| |
|
|
Technical Services | | $ | 24,448 | | $ | 21,123 | | $ | 16,344 | | $ | 59,574 | | $ | 78,498 |
Support Services | |
| 4,604 | |
| 4,639 | |
| 5,286 | |
| 11,904 | |
| 13,264 |
Corporate expenses | |
| (5,348) | |
| (5,871) | |
| (4,216) | |
| (17,023) | |
| (11,083) |
Acquisition related employment costs | |
| (6,467) | |
| (6,554) | |
| — | |
| (13,021) | |
| — |
Gain on disposition of assets, net | |
| 3,563 | |
| 2,199 | |
| 1,790 | |
| 7,288 | |
| 6,342 |
Total operating income | | $ | 20,800 | | $ | 15,536 | | $ | 19,204 | | $ | 48,722 | | $ | 87,021 |
Interest expense | |
| (949) | |
| (1,007) | |
| (261) | |
| (2,087) | |
| (594) |
Interest income | |
| 1,748 | |
| 1,618 | |
| 3,523 | |
| 6,761 | |
| 9,831 |
Other income, net | |
| 968 | |
| 1,152 | |
| 1,005 | |
| 3,005 | |
| 2,504 |
Income before income taxes | | $ | 22,567 | | $ | 17,299 | | $ | 23,471 | | $ | 56,401 | | $ | 98,762 |
Conference Call Information
RPC, Inc. will hold a conference call today, October 30, 2025, at 9:00 a.m. ET to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of RPC, Inc.’s website at www.rpc.net. The live conference call can also be accessed by calling (888) 440-5966, or (646) 960-0125 for international callers, and using conference ID number 9842359. For those not able to attend the live conference call, a replay will be available in the investor relations section of RPC, Inc.’s website beginning approximately two hours after the call and for a period of 90 days.
About RPC
RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of America, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC’s investor website can be found at www.rpc.net.
Page 4
Third Quarter 2025 Earnings Release
Forward Looking Statements
Certain statements and information included in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management’s beliefs, expectations or hopes. In particular, such statements include, without limitation: our belief that our diversified offerings and strong brands and balance sheet provide resiliency; our statement that, despite our resilience, the challenging environment continues to require disciplined execution; our belief that the oilfield services market is likely to face additional headwinds during the fourth quarter in connection with oil prices recently dipping below $60 a barrel, expected holiday slow downs, and customer budget exhaustion; our statement that we will continue to take incremental cost reductions; our statement that we will invest in our businesses prudently and focus on full cycle returns; our expectation that the remaining Acquisition employment costs will be recognized equally over the next 10 quarters. Risk factors that could cause such future events not to occur as expected include the following: the price of oil and natural gas and overall performance of the U.S. economy, both of which can impact capital spending by our customers and demand for our services; the impact of tariffs, which may increase our cost of materials and impact our profitability, business interruptions due to adverse weather conditions; changes in the competitive environment of our industry; political instability in the petroleum-producing regions of the world; the actions of the OPEC oil cartel; our customers’ drilling and production activities; the risk that our assessments, such as regarding the oversupplied nature of oilfield services, will turn out incorrect; and our ability to identify and complete acquisitions and/or other strategic investments or transactions. Additional factors that could cause the actual results to differ materially from management’s projections, forecasts, estimates, and expectations are contained in RPC’s Form 10-K for the year ended December 31, 2024.
For information about RPC, Inc., please contact:
Joshua Large,
Vice President, Corporate Finance and Investor Relations
(404) 321-2152
Michael L. Schmit,
Chief Financial Officer
(404) 321-2140
Page 5
Third Quarter 2025 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)
| | Three months ended |
| Nine months ended | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | |||||
|
| 2025 |
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) |
| | | | | | | | | | | | | | | |
REVENUES | | $ | 447,103 | | $ | 420,809 | | $ | 337,652 | | $ | 1,200,789 | | $ | 1,079,638 |
COSTS AND EXPENSES: | |
| | | | | | | | | |
| | |
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) | |
| 334,673 | | | 317,746 | | | 247,507 | | | 896,314 | | | 786,400 |
Selling, general and administrative expenses | |
| 44,628 | | | 40,825 | | | 37,697 | | | 127,952 | | | 115,188 |
Acquisition related employment costs | |
| 6,467 | | | 6,554 | | | — | | | 13,021 | | | — |
Depreciation and amortization | |
| 44,098 | | | 42,347 | | | 35,034 | | | 122,068 | | | 97,371 |
Gain on disposition of assets, net | |
| (3,563) | | | (2,199) | | | (1,790) | | | (7,288) | | | (6,342) |
Operating income | |
| 20,800 | | | 15,536 | | | 19,204 | | | 48,722 | | | 87,021 |
Interest expense | |
| (949) | | | (1,007) | | | (261) | | | (2,087) | | | (594) |
Interest income | |
| 1,748 | | | 1,618 | | | 3,523 | | | 6,761 | | | 9,831 |
Other income, net | |
| 968 | | | 1,152 | | | 1,005 | | | 3,005 | | | 2,504 |
Income before income taxes | |
| 22,567 | | | 17,299 | | | 23,471 | | | 56,401 | | | 98,762 |
Income tax provision | |
| 9,604 | | | 7,151 | | | 4,675 | | | 21,260 | | | 20,080 |
NET INCOME | | $ | 12,963 | | $ | 10,148 | | $ | 18,796 | | $ | 35,141 | | $ | 78,682 |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
EARNINGS PER SHARE | |
|
| |
|
| |
|
| |
|
| |
|
|
Basic | | $ | 0.06 | | $ | 0.05 | | $ | 0.09 | | $ | 0.16 | | $ | 0.37 |
Diluted | | $ | 0.06 | | $ | 0.05 | | $ | 0.09 | | $ | 0.16 | | $ | 0.37 |
| | | | | | | | | | | | | | | |
WEIGHTED AVERAGE SHARES OUTSTANDING | |
|
| |
|
| |
|
| |
|
| |
|
|
Basic | |
| 220,575 | |
| 220,610 | |
| 214,976 | |
| 218,959 | |
| 214,940 |
Diluted | |
| 220,575 | |
| 220,610 | |
| 214,976 | |
| 218,959 | |
| 214,940 |
Page 6
Third Quarter 2025 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| | (In thousands) | ||||
| | September 30, | | December 31, | ||
|
| 2025 |
| 2024 | ||
| | | (Unaudited) | | | |
ASSETS |
| | | | |
|
Cash and cash equivalents | | $ | 163,462 | | $ | 325,975 |
Accounts receivable, net | |
| 359,901 | |
| 276,577 |
Inventories | |
| 117,685 | |
| 107,628 |
Income taxes receivable | |
| 3,376 | |
| 4,332 |
Prepaid expenses | |
| 12,023 | |
| 16,136 |
Retirement plan assets | | | 32,653 | | | — |
Other current assets | |
| 12,189 | |
| 2,194 |
Total current assets | |
| 701,289 | |
| 732,842 |
Property, plant and equipment, net | |
| 560,298 | |
| 513,516 |
Operating lease right-of-use assets | |
| 24,726 | |
| 27,465 |
Finance lease right-of-use assets | |
| 5,758 | |
| 4,400 |
Goodwill | |
| 74,257 | |
| 50,824 |
Other intangibles, net | |
| 104,501 | |
| 13,843 |
Retirement plan assets | | | — | | | 30,666 |
Other assets | |
| 27,967 | |
| 12,933 |
Total assets | | $ | 1,498,796 | | $ | 1,386,489 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
|
| |
|
|
LIABILITIES | | | | | | |
Accounts payable | | $ | 143,228 | | $ | 84,494 |
Accrued payroll and related expenses | |
| 30,651 | |
| 25,243 |
Accrued insurance expenses | |
| 9,089 | |
| 7,942 |
Accrued state, local and other taxes | |
| 7,096 | |
| 3,234 |
Income taxes payable | |
| 810 | |
| 446 |
Unearned revenue | | | — | | | 45,376 |
Current portion of operating lease liabilities | |
| 7,482 | |
| 7,108 |
Current portion of finance lease liabilities | | | 4,222 | | | 3,522 |
Retirement plan liabilities | | | 24,129 | | | — |
Current portion of notes payable | | | 20,000 | | | — |
Accrued expenses and other liabilities | |
| 5,402 | |
| 4,548 |
Total current liabilities | |
| 252,109 | |
| 181,913 |
Accrued insurance expenses | |
| 13,816 | |
| 12,175 |
Retirement plan liabilities | |
| — | |
| 24,539 |
Note payable | | | 30,000 | | | — |
Operating lease liabilities | |
| 18,291 | |
| 21,724 |
Finance lease liabilities | |
| 1,011 | |
| 559 |
Other long-term liabilities | |
| 10,897 | |
| 9,099 |
Deferred income taxes | |
| 70,279 | |
| 58,189 |
Total liabilities | |
| 396,403 | |
| 308,198 |
| | | | | | |
STOCKHOLDERS' EQUITY | | | | | | |
Common stock | |
| 22,058 | |
| 21,494 |
Capital in excess of par value | |
| — | |
| — |
Retained earnings | |
| 1,082,989 | |
| 1,059,625 |
Accumulated other comprehensive loss | |
| (2,654) | |
| (2,828) |
Total stockholders' equity | |
| 1,102,393 | |
| 1,078,291 |
Total liabilities and stockholders' equity | | $ | 1,498,796 | | $ | 1,386,489 |
Page 7
Third Quarter 2025 Earnings Release
RPC INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | |
| | (In thousands) | ||||
Nine months ended September 30, |
| 2025 |
| 2024 | ||
| | | (Unaudited) | | | (Unaudited) |
OPERATING ACTIVITIES | | | | | | |
Net income | | $ | 35,141 | | $ | 78,682 |
Adjustments to reconcile net income to net cash provided by operating activities: |
| | |
| | |
Depreciation and amortization |
| | 122,068 |
| | 97,371 |
Acquisition related employment costs |
| | 13,021 |
| | — |
Working capital | | | (43,696) | | | 77,081 |
Other operating activities |
| | 12,934 |
| | 2,081 |
Net cash provided by operating activities |
| | 139,468 |
| | 255,215 |
| | | | | | |
INVESTING ACTIVITIES |
| |
|
| |
|
Capital expenditures |
| | (117,780) |
| | (179,460) |
Proceeds from sale of assets |
| | 15,931 |
| | 14,127 |
Purchase of business, net of cash and debt assumed |
| | (165,656) |
| | — |
Net cash used for investing activities |
| | (267,505) |
| | (165,333) |
| | | | | | |
FINANCING ACTIVITIES |
| |
|
| |
|
Payment of dividends |
| | (26,300) |
| | (25,784) |
Repayment of debt assumed at acquisition |
| | (4,502) |
| | — |
Cash paid for common stock purchased and retired |
| | (2,868) |
| | (9,928) |
Cash paid for finance lease and finance obligations | | | (806) | | | (592) |
Net cash used for financing activities |
| | (34,476) |
| | (36,304) |
| | | | | | |
Net (decrease) increase in cash and cash equivalents |
| | (162,513) |
| | 53,578 |
Cash and cash equivalents at beginning of period |
| | 325,975 |
| | 223,310 |
Cash and cash equivalents at end of period | | $ | 163,462 | | $ | 276,888 |
Non-GAAP Measures
RPC, Inc. has used the non-GAAP financial measures of adjusted revenues, adjusted operating income, adjusted net income, adjusted net income margin, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin and free cash flow in today's earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting these non-GAAP measures, other than free cash flow, enables investors to compare the operating performance of our core business consistently over various time periods, and in the case of Adjusted EBITDA, without regard to changes in our capital structure. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating RPC's liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, RPC’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows.
A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts,
Page 8
Third Quarter 2025 Earnings Release
that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.
Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on RPC, Inc.'s investor website, which can be found at www.rpc.net.
Appendix A
(Unaudited) |
| Three months ended |
| Nine months ended | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | |||||
(In thousands) |
| 2025 |
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
Reconciliation of Operating Income to Adjusted Operating Income | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Operating income | | $ | 20,800 | | $ | 15,536 | | $ | 19,204 | | $ | 48,722 | | $ | 87,021 |
Add: Acquisition related employment costs | |
| 6,467 | |
| 6,554 | |
| — | |
| 13,021 | |
| — |
Adjusted operating income | | $ | 27,267 | | $ | 22,090 | | $ | 19,204 | | $ | 61,743 | | $ | 87,021 |
Appendix B
(Unaudited) | | Three months ended |
| Nine months ended | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | |||||
(In thousands) |
| 2025 |
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
Reconciliation of Net Income to Adjusted Net Income |
| |
|
| |
|
| |
|
| |
|
| |
|
| | | | | | | | | | | | | | | |
Net income | | $ | 12,963 | | $ | 10,148 | | $ | 18,796 | | $ | 35,141 | | $ | 78,682 |
Adjustments: | | | | | | | | | | | | | | | |
Add: Acquisition related employment costs, before taxes | |
| 6,467 | |
| 6,554 | |
| — | |
| 13,021 | |
| — |
Add: Tax effect of Acquisition related employment costs | |
| (1,051) | |
| 802 | |
| — | |
| (249) | |
| — |
Total adjustments, net of tax | |
| 5,416 | |
| 7,356 | |
| — | |
| 12,772 | |
| — |
Adjusted net income | | $ | 18,379 | | $ | 17,504 | | $ | 18,796 | | $ | 47,913 | | $ | 78,682 |
| | | | | | | | | | | | | | | |
(Unaudited) | | Three months ended |
| Nine months ended | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | |||||
|
| 2025 |
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share | | | | | | | | | | | | | | | |
|
| | |
| | |
| | |
| | |
| | |
Diluted earnings per share | | $ | 0.06 | | $ | 0.05 | | $ | 0.09 | | $ | 0.16 | | $ | 0.37 |
Adjustments: | |
|
| |
|
| |
|
| |
|
| |
|
|
Add: Acquisition related employment costs, before taxes | | | 0.03 | | | 0.03 | | | — | | | 0.06 | | | — |
Add: Tax effect of Acquisition related employment costs | | | — | | | — | | | — | | | — | | | — |
Total adjustments, net of tax | | | 0.03 | |
| 0.03 | |
| — | |
| 0.06 | |
| — |
Adjusted diluted earnings per share | | $ | 0.09 | | $ | 0.08 | | $ | 0.09 | | $ | 0.22 | | $ | 0.37 |
| | | | | | | | | | | | | | | |
Weighted average shares outstanding (in thousands) | |
| 220,575 | |
| 220,610 | |
| 214,976 | |
| 218,959 | |
| 214,940 |
Page 9
Third Quarter 2025 Earnings Release
Appendix C
(Unaudited) | | Three months ended |
| Nine months ended | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | |||||
(In thousands) |
| 2025 |
| 2025 |
| 2024 |
| 2025 |
| 2024 | |||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
| |
|
| |
|
| |
|
| |
|
| |
|
Net income | | $ | 12,963 | | $ | 10,148 | | $ | 18,796 | | $ | 35,141 | | $ | 78,682 |
Adjustments: | | | | | | | | | | | | | | | |
Add: Income tax provision | |
| 9,604 | |
| 7,151 | |
| 4,675 | |
| 21,260 | |
| 20,080 |
Add: Interest expense | |
| 949 | |
| 1,007 | |
| 261 | |
| 2,087 | |
| 594 |
Add: Depreciation and amortization | |
| 44,098 | |
| 42,347 | |
| 35,034 | |
| 122,068 | |
| 97,371 |
| |
|
| |
|
| |
|
| |
|
| |
|
|
Less: Interest income | |
| 1,748 | |
| 1,618 | |
| 3,523 | |
| 6,761 | |
| 9,831 |
EBITDA | | $ | 65,866 | | $ | 59,035 | | $ | 55,243 | | $ | 173,795 | | $ | 186,896 |
| |
|
| |
|
| |
|
| |
|
| |
|
|
Add: Acquisition related employment costs | |
| 6,467 | |
| 6,554 | |
| — | |
| 13,021 | |
| — |
Adjusted EBITDA | | $ | 72,333 | | $ | 65,589 | | $ | 55,243 | | $ | 186,816 | | $ | 186,896 |
| | | | | | | | | | | | | | | |
Revenues | | $ | 447,103 | | $ | 420,809 | | $ | 337,652 | | $ | 1,200,789 | | $ | 1,079,638 |
| | | | | | | | | | | | | | | |
Net income margin(1) | | | 2.90% | | | 2.41% | | | 5.57% | | | 2.93% | | | 7.29% |
| | | | | | | | | | | | | | | |
Adjusted net income margin(1) | | | 4.11% | | | 4.16% | | | 5.57% | | | 3.99% | | | 7.29% |
| | | | | | | | | | | | | | | |
Adjusted EBITDA margin(1) | | | 16.18% | | | 15.59% | | | 16.36% | | | 15.56% | | | 17.31% |
(1) Net income margin is calculated as Net income divided by Revenues. Adjusted net income margin is calculated as Adjusted net income divided by Revenues. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenues.
Appendix D
(Unaudited) | Nine months ended September 30, | ||||
(In thousands) | 2025 |
| 2024 | ||
Reconciliation of Operating Cash Flow to Free Cash Flow | |
|
| |
|
Net cash provided by operating activities | $ | 139,468 | | $ | 255,215 |
Capital expenditures | | (117,780) | | | (179,460) |
Free cash flow | $ | 21,688 | | $ | 75,755 |