Fri, Feb 28, 8:18 PM (51 days ago)
NPK International Inc. (NPKI) reported a 5% increase in revenue for FY 2024, totaling $217.5 million, driven by a 24% rise in product sales, although rental and service revenues declined by 3%. The company completed the sale of its Fluids Systems segment in September 2024, impacting future operations and resulting in a significant loss from discontinued operations of $185.9 million. Net income was negatively affected, showing a loss of $150.3 million, influenced by the sale's associated costs and a substantial tax benefit of $6.7 million primarily from released valuation allowances on net operating losses. Operating expenses decreased by 10% to $46 million, reflecting cost-saving measures. NPKI's strategic focus is on expanding its rental business, with significant capital investment in its mat rental fleet. The company ended the year with a strong cash position of $17.8 million and minimal debt of $7.7 million, providing liquidity for future growth initiatives. The outlook remains cautious, with risks including economic conditions affecting customer spending and operational management challenges post-divestiture.