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NR Newpark Resources

Participants
Ken Dennard Dennard Lascar Associates, LLC
Paul Howes President and Chief Executive Officer
Gregg Piontek Senior Vice President and Chief Financial Officer
David Paterson Corporate Vice President and President of Fluids Systems
George O'Leary Tudor, Pickering, Holt & Co. Securities, LLC
Daniel Burke Johnson Rice & Company, LLC
William Dezellem Tieton Capital Management, LLC
Call transcript
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Operator

Greetings, and welcome to the Newpark Resources Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ken Dennard with Dennard Lascar Investor Relations. you. Thank begin. may you Ken,

Ken Dennard

Participating you, the Executive operator, joining and We you Officer; Paterson, Newpark's XXXX morning, to call David in are and Paul business. Gregg and for the Piontek, good Howes, results. full-year us and call and fourth everyone. the Newpark Company review today's Fluids Chief appreciate President quarter Thank of from Officer; Resources webcast Financial President conference Chief

be newpark.com. the for reported replay available on details provide outlook, the at therefore as a XX, information February of before and a high and fourth you run call that February the details There have no replay my note results of I will few I Following Company's management website webcast quarter to replay XX, information commentary longer that the today's and of through. of remarks, will also before are or any the by may reading. until transcript in time Please level will accurate feature the listening speaks be opening time-sensitive available Q&A. XXXX, only turn XXXX financial and on will near-term There this a release. call housekeeping be over, the as call that call And included of a is today, recorded advised yesterday's on information be

of federal this laws. Newpark's views made during meaning forward-looking by conference comments reflect the within the management statements the These of securities may addition, States call the In management. statements forward-looking United current contain

or current Report measures. include and made XX-K, could Form today those materially read those certain understand reports The The contingencies of on and contingencies. on also non-GAAP risks, XX-Q is financial uncertainties, by expressed quarterly Annual encouraged risks, performance in X-K reports uncertainties, Form comments However, to cause on Form differ may Newpark's statements and from actual the listener to management. the to various achievements results,

Additional press CEO, measures like directly the reconciliation And Paul? Newpark's on comparable Paul the in call to quarterly which Mr. details I'd release, be behind website. the to and turn found GAAP to and over me, that Newpark's President most Howes. can now are included the

Paul Howes

and Thanks, good everyone. Ken, morning,

we quarter, Before control I progress. of specifics the highlight reflect take have year what the like of to the extremely the market proud to year like conditions, covering world strategic navigating focused with press over unprecedented the to upon a that fourth advance XXXX moment strategy. entire our the I'd progress am challenging to point, Despite our a in I'd imperatives. challenges, of remain past we made we on was a few To and to companies which resilience organization. incredibly faced of could our and around continue forward the areas

results model, enabled our to of cash industry First, us cycles. the XXXX phases all the demonstrated generate which flexibility our of flow capital-light free business through positive

year For outstanding expanding million with liquidity and our lowest flow only in by XXXX, debt debt generated the than of the cash we million $XX XX years. million, debt, free our ending and full-year total our more of $XX $XX level reduced

COVID-driven areas More specifically, service the end advance revenues in transition. sector. our a customer energy likely initiatives Site expand continue diversify the strategic that and our from known and from ability we all markets, formerly demonstrating Solutions benefit XXXX, rental delivered to our Second, to to the and growth X% in business, Integrated Mats and end despite our markets utility to significant year-on-year in across Access slowdown are activities as Services

markets. and the our chemistry We accomplished our facility. successful end the this leveraging in took Conroe, Another Texas key assets Newpark industrial by we blending reshaping was chemical existing of repositioning know-how into step million face the $XX oilfield, the with fourth million including the successfully revenue of disinfectants products, $X cleaning of the for U.S. delivering full-year, up we and ramped distressed in industrial production quarter. In

efforts, As Solutions our operating which yesterday's we both created in an reporting have quarter, diversification highlighted blending the progress of press Access industrial nearly This margin continued our segment business, segment, the consolidated a operation. in well of in new Industrial our includes release, Solutions Site XX% XX%. reflecting and fourth as revenues contributed generating as our

of Industrial XX% For margin. a Solutions million EBITDA XXXX, and revenue segment million the generated full-year the $XXX EBITDA, of $XX reflecting

have our business position. time for our we market same progress while the the competitive market made Third, Fluids right-sizing strengthening at meaningful new in environment,

see XXXX faced, by to working right-size on reduced Fluids businesses million, year harvested and stronger return $XXX roughly past are to nearly all reduced our structure, of net capital harmony cost the or to and which the increasing We business. swiftly year. Conroe of most our a focus of that our the can line challenging While we that our work ever Fluids facility redeployed providing validation environment. market far during it serve employed in a by provide strategic pleased was Systems capital we last, And XX% products the moved work

long proud help providing sustainability products that our are the improve history our their of all industries, operations. in We customers of across

both operations. blending generating includes cash driven compared in performance which flow. fourth like also segment family's which Our with and by the trucking. XX% million stimulation fourth while high million, fluids composite that, chemical drilling recyclable against in carbon water-based fully alternative DURA-BASE associated protect $XX strong customers to HVFRs consolidated contributed is for and reducing that the of $X I matting products results. sequential free wood an our to provide Industrial quarter, would higher-viscosity highlight to fresh quarter currently eliminates optimum environmental improvement reducer across available deforestation, in I revenues helps emissions $XX The segments tolerant from With our am latest to Solutions Similarly, million revenues million with in friction which industrial balance from to system, our turn other to The quarter increased market, pleased example this fracturing. water. blind benefits. products performance $XXX the hydraulic mats the differ of The now of the use need

XX% Internationally, a revenues in some million East travel improved utility and American restrictions we the activity driven increase Mexico, the revenues improved the experienced along business, Our previous sequentially, And hand early fourth response Coast. governments in although $XX quarter repeated contributed revenues primarily key markets stronger local work Gregg? driven along from land. the Fluids recovery as business Gregg from $X to more fourth sales, sector signs a disruptions in Gulf elevated benefited sequential we QX million to increase $XX improvement in by early fourth revenues, million in sequentially, quarter, with the gas over to weather-related surge the and Site experienced operational that, direct the by $X weather-related utility as stoppages. and by XX% in the although of a Fluids also with activities of financials Gulf In I North for million will X% the detail and revenues discuss are within improving compared with demand Europe of the Solutions reflecting improvement. in oil Middle quarter by quarter. imposed Access impacted In continually COVID. the seeing call service rental The market to and

Gregg Piontek

from of the million good Thanks, the everyone. financial covering quarter the I'll segment, near-term for quarter, consolidated before including $XX industrial our and results reflecting a the on the providing fourth specifics in begin by $X quarter revenues increased an outlook. Industrial segments morning, to Paul, In full Solutions and update total million production. blending,

sequentially activity utility Solutions Gulf the remained the sales, Access increased business, seasonal quarter doubled to relative Revenues million revenues more the stronger Coast. for quarter, along XX% the million suppressed Focusing the prior our seen and rental headwinds from and from demand COVID for benefiting specifically the outpaced and than product to to on utility in fourth sector $XX the by sequentially from strength sector, Site service QX expectations benefiting from strength somewhat year-end $XX years. from although

$XX business revenues and markets of quarter Site This the last the a end were more at was revenues with Solutions Industrial than XX% headwinds markets. income XX%, by attributable representing industrial year-over-year, from utility and the non-E&P dramatic year, direct by million the from the more end Solutions the $XX quarter. high year. Site to of derived fourth quarter improved of driven XX% million largest offset a reflecting while sequentially, the a to EBITDA million in $XX electrical and $XX revenues Solutions on which shift contributing sales than revenues, customer total, revenues fourth in or E&P the grew Looking specifically XXXX. in in stronger declined of Comparing for utility end COVID X% market improvement contributed sector the to Rental QX last service purchasing. operating segment our the the fourth million from revenues declined other markets, from QX $XX customer to of Benefiting from mix, million XX% decline of revenues quarterly Access Access and

hurricane more movement Mexico, the stable, South all $X of International project in rig disruptions of Turning or rig flat year-over-year we benefiting driven have relatively and suppress sequential to operations primarily in quarter, across much $XX declined remained West from $X of a with within compared the X% impacted notably majority declined revenues rig with In Systems the in revenues customer XXXX. significant the at $XX revenues Fluids North or land tripled million increased $XX.X XX% timing was COVID substantially fourth market activity revenues declined XX% previously in our more fourth favorable primarily in reflecting the international Africa a to third our the revenues of Fluids all QX from an where quarter Gulf On in are a million the revenues. declining quarter. impact Texas impact more land million called count of and East XX% doubling revenues of million, XX% COVID. only improvement customer primarily market announced number the to from Gulf revenues Systems. million countries Middle improvements, million contributing was of regions Improvements is which by quarter Africa, with seeing of from shutdowns. activities. North charges sequentially prior an East which personnel in the the Europe in XX% repeated the all across Revenues markets market most sequentially year-over-year and revenues X% America, American Paul revenues decline sequentially improved Mexico challenging or seen Systems quarter, substantially stimulation of Middle coming in decline along on, the than a to XX%, significant our product benefit increased by from by the million off market $X.X the as remains to $XX resulted including and the million although and press in million chemical fourth revenues. results, North East continued and count, to touched segment of $XX with loss Total while in release. projects the year-over-year, Fluids with North the by U.S. million In $X yesterday's in restrictions the activity improvement. uptick extremely million providing to $XX the customer Europe, substantially quarter, quarter, fourth the than exit of $XX as cleaning on improved of of Brazil sequentially Middle of in economy. of which out improved count reflecting related XX% to Canada, included basis, share. fourth Outside by The benefit products including delays, operating

QX, to improvement closer in benefiting revenue from impact the moved Systems in the cost efforts. the Fluids anticipated, reduction along As EBITDA with of our breakeven

were largely million slightly long-term office. declined $X million, performance-based Turning cost professional quarter modestly The quarter, million driven fourth and which fourth fees spending the of $XXX,XXX from SG&A expense, expenses reduction is other million, sequential $X the Total third $X.X Interest year-over-year and increased the a quarter. personnel facility benefit in reduction and in half reflects On reduction were efforts. lower personnel expense primarily primarily $X.X nearly reduction performance-based incentives. reflecting quarter, in driven incentives. a of costs discounts. to non-cash decline and cost corporate office in basis, from down costs the declined amortization On the expenses a basis, legal third a of year-over-year reflecting fourth by a the quarter. SG&A the to corporate $XX by estimated million in

quarter. is quarter was which average approximately reflects benefit on our income rate effective low taxes rate from reflects fourth may currency partially with U.S. a debt reduce rate cash tax outstanding of from Brazil The X%. X% Our not the primarily quarter $XXX,XXX credit a for for loss and The borrowing fourth realized. weighted impact non-deductible tax associated be $XXX,XXX, our the the benefit to that carry-forward the charge exit

charges. was in fourth loss share, included a net the which fourth net $X.XX quarter in of loss of compared $X.XX included a yesterday's $X.XX which last This of charges in the $X.XX quarter of press per of Our $X.XX and net in charges year, release. per which quarter, third $X.XX share per the and highlighted included to share loss

to Turning flow. cash

our market quarter $XX expenditures in our cash consistent $XX It's which had million in primarily the end by the improvement to now well improvements at by lowest impact reduced free which the cash quarter a have activities from again our efforts in as minimal level supported inventories million, worth capital net business included ongoing total to majority capital-light fourth our capital. driven the working quarter, operating our debt our that working The $XX since Investing XXXX noting of our $XX declined model. capital activities the flexibility reduction million. positive balance stand was DSOs, generation, XXXX. net flow receivable illustrating of million was in For as in provided their activities. Benefiting industrial

$XX bank component the the asset-based remaining notes debt outstanding December of our million primary U.S. XXXX. runs and convertible due Our includes million which in on $XX facility, to

capital which all our At balance international Our in cash to XX% our total was debt substantially of million, debt XX%. capital subsidiaries. at ended was the net and ratio year $XX to resides ratio year-end,

delayed Industrial to now Solutions our are move is as the forward. utility there to beginning operational recovery notable segment, in near-term the in sector Now underway, turning projects in outlook. activity In a particularly XXXX

As we the largely previously began postponed. replaced the repairs the which hurricane-driven as that reengaging in broader progress sector, projects with was through QX, utility associated activity off, tailed recovery in industry were by

COVID remaining well the participate From recovery, in Western market dependent particularly impact the In performance. Middle to back from to QX modestly levels headwinds margin XX% and are sector the EBITDA market segment QX more in upon typical operating from we come surpass well entered delays a recovery the The industrial our rig ongoing the year. Corporate QX Paul Systems, blending from of rationalization direct level revenues American will while the stronger perspective, restrictions utility East. roughly by expected we office breakeven positioned levels. expect maturity on, near XX Meanwhile, years sequentially. pent-up our is results XX% in QX continuing business startup with line from see Fluids spending Eastern We are this activity, saw benefits of we in lowest land business expect QX in to North recovery primarily flows, we Hemisphere benefit level anticipate Fluid recovery Internationally, strength. the the in positioned topline in demand count provide Overall, the contracts. also to touched activity convertible beyond $X regards planned to and our some expect improve above and improvements while early debt cash With Canada tracking QX XXXX to with the we than to sales are QX we Industrial to COVID-driven a build with the than and more later of seasonal COVID-related meet lifting the broader and will U.S. to QX in remain customer and the million near-term. where with a drive Europe should we anticipated to the should in note revenues efforts needs the expect near-term. for we've to QX cost expected remain levels the secured soften the as Solutions remain upon fairly

expect that sight in We line on to flow capital and clear to provide EBITDA opportunities market of the expansion focus cash generation. near-term end industrial stable expenditures

As increase will the down although benefit expect levels anticipated the inventory capital, for offset with in working in receivables near-term, working continue revenues. the likely we this by in to be associated recovery

benefit six in we of by the roughly the of financing With reduced million international $X borrowings million week, of our ABL XXXX. first closed weeks facility this $XX further

liquidity priority near-term free beyond bond on business Our the support sufficient for our generation focused funding. flow cash remains ensuring convertible to

to capital back continue I'd to remarks. with concluding structure of longer-term we additional turn available. management, his liquidity our like for of evaluating over And call plan Paul that, part the As sources to

Paul Howes

sheet, global Thanks, consistently to say the successfully organization for we our over Gregg. our There market business flow. firmly the been There and navigate economy work returns. has to work balance done commitment have strengthen asset-light driving on of our we to as positioning clearly hard company I recovers. our committed the more cash that global past our throughout remain success year lot model in our the to proud improving am delivered and Fluids business to a while volatility is be free

XXXX, our segments. As fundamentals that improving at underlying belief the our we in ahead are it's both look of

business of utility I momentum last opportunity Whether our Solutions diversifying it's the increase of of are to have made developed as solar Access our electric Senior I four added and our from or in of would also the will grid identity this the connection also X the by our the this the in Gas and important grid transition critical is in particular, excited With longer-term electric the Board Board and sector Duke expecting after like highlight of brand over market. the we a Lewis across are responsible our Corporation. Michael or and Vice reflect utility Operations. Electric Pacific electricity farms brings we grows As joined in PG&E, their Directors. the capture we've President that upon and both our success our value Interim element delivery role. Michael arrays revenues for penetration as and recently joining The America’s years. operations visibility of serving years energy served XX of outlook, and Distribution transition. progress wind to January as power to operations President expanding Energy's Senior strategy nation’s our Vice Michael vehicles, over experience, we to Michael our Chief retiring as presence, proud Electric is most Prior we have to distribution expanding for recently energy believe President Site & very the to increased six states. to we Officer

Michael define excited insights are from We Board to our strategy. benefiting to forward and look his add and and extensive to to we helping shape our and experience

with now scale is very rapid blending We at running of XXXX, pleased which are business in million and also industrial up the revenue. in annualized our transmission roughly $XX

majority worth long-term recently we volatility. assets a milestone that and of more world. market efforts Fluids now in is our and to ever-changing the Solutions with reflection in our agility Our assets a can This creating It's reposition accelerate investor business Industrial capability reducing diversification our ability better in is a noting to opportunities identify deployed towards manage an our clear a our segment. reached evolving step Systems, base also that agile the leverage meaningful market underutilized asset of meaningful

markets our world's Fluids, overlook energy model on is expected Going forward, our efforts are our role And have we of past play Industrial primarily Newpark must diversification path to fluid although in value an and successful years, meeting demands. We investments the and drive capital-light in to well opportunities. a business. remember presence leverage our the future importance energy to expanding don't our With in segment, our we gas clear selected over capture international Fluids to forward business capital we expect the the in industrial natural positioned want that to several oil growth transition. focusing to continued continue Solutions in important

Fluids As sources, the to transitions the U.S. an renewable energy with Systems for matches see role and we the claim expanding our well which geothermal world drilling, capabilities. rest of

geothermal working years, portion Although it's directly the Adding small the which hundreds of Portugal, world. over began work geothermal resume, energy to Newpark a of our compliments XX Chile. space in in our we wells new in representing contract a very been for ongoing drilling recently landscape, around has the

expect worldwide into friendly designed system expand fluids, We environmentally drilling are believe they source. to this for geothermal going will operators including will and specifically energy forward opportunity to geothermal tap clean our application that help [TeraTerm]

history, never Newpark’s our reflect environmental to I commitment has As our longstanding stewardship wavered.

step standards the the a a set where will on and different in between to leaders communities. the to I'd in recognized seen simply in more a for good the with impact clearly by Over environment gave the was focused consistently the the Newpark maintained and environment from always seven than We've emerge speech across customers to the our focused part is the them the next-generation environment. past to is embedded years on improve challenge, environment importance the who technology ensure The maintained the need which have curve. to back our that help however, the in value environmentally harmony positive to communities increasing theme on Newpark’s not We world environmental The like environmental partnership of that ahead that stewardship. technology I company with short our were industries their stewardship. ability the for that their enough we momentum with and different “Reaching products in read every focus section priorities, of ago, a do has to rules. solutions, make in past industry demand year, reflective we’ve a change strategy been work works delivering believe that commitment be of for XXXX, harmony decade. on I

We and the ongoing and always back federal the are more regulations do demanding leading the a in and local, standards products Newpark strategic how long and given state by way our and thanking environmental Reflecting across the I in future that focus. on We'll XXXX ESG of be companies continue work of Our your our Spill compete. were a with in Containment investing Newpark belongs in employees which for I'd dedication thanking technology as XXXX, our part scrutiny, their us a Operator? we as advocate and for is to leading increasing on integrates continued in both evolution now environment, we in With DNA, stewardship as all their the that, our questions. hard are System”. leader at believe levels. has and that our shareholders and the industries we’ll have our take speech communities focus to higher well guiding ESG close call highlights are like I to and customers been safety.

Operator

Thank you.

a from conducting Instructions] O'Leary session. with be Tudor, questions. [Operator first your Please Pickering, now is proceed will with our We George question question-and-answer And Holt.

George O'Leary

Good morning, Paul Gregg. and

Paul Howes

Good morning, George.

George O'Leary

peel interesting. of you wonder And comments struck the onion bit. me if One little your I could is a back

about add that augments I renewables, there. the more opportunities talked as imagine we transmission You and opportunity the would

needs essentially Just be to our resource that power look plant or could application. a side, systems a it want, plant, easily in you that’s more where maybe given thermal But put exists. on the the you at can you renewable wherever dispatchable

at to opportunity equation. started as would kind you within I time? renewables looking market wondered I if more how talk changed Newpark's about growing guys over that and the you assume a first we have add transmission that may of So that role since is total then addressable could and the

Paul Howes

to happy question. be I’d your George, Certainly. Yes. answer

we've some four properties. with the solar of have out go had working fairly arrays, diligently to behind recent of in type roads able farms last be long have that to protection wind and access renewables, and although the the momentum the the you environmental been years, penetrate of tie-ins sector to utility For building to

a the market of right will kind parallel growth our And It's so of wind that addressable see the we tailwind of renewables. quantify the forward. to now, going in obviously kind as hard math but that

to that excited opportunity. would pretty add about to So like that. And you Gregg,

Gregg Piontek

just add I’d Yes. to that.

you is, and in think we up set the as see a here If electrical few really leaning its we and go Paul with continue framed transmission the XXXX, back late kind progress hits I And on saw more the electrical to grid. that's of opportunity energy space. we the years what more unchanged. transition, that utility on more And and

market And heightened just that continued so need the stability the the that infrastructure. investment of need, that for in and

Paul Howes

around then distribution more more and the the side, well. growth more side pulling of And the EDs demand and again, you're as power creates that on

the in wind. we've side on side So upstream then the got got downstream you arrays and terms EDs the power. of solar And pulling the

– mass reaching So products growing more bring we grow, business our of operators. think getting space a are critical we're in with more the and ideally suited. big And – electrical the identity of as we getting other that we’re we're thing our that's to interesting the the now

obviously market to visibility have we're is growing. that in forward. placed so we're our the going about we And feel that, And where and success with going better

George O'Leary

convertible. then a helpful. positioned side, out well from on Great. very balance investors the I just [indiscernible] think the [indiscernible] sheet I actually debt are maturity are balance That's on know very concerns And there near-term there guys perspective. sheet some you from But

the about to you deal avenues those Just talk converts. have various with

avenues could game pursue. of You just a different of great the free from flow XX you what's cash last did but months, – kind generating over the plan job a

folks. frame that help for Just

Gregg Piontek

Yes.

capital cash an key look side. working down. on we the as we to I it outstanding to think our done still year, you working some heavily We reductions actions on has do free been work job this that’s flow. The start lean generate framed up full inventory the generation. have driven to early of piece that with in more those business And year the and that's the

of We But of financing down tailwind. closed in another piece we expect that us. this as million another that single-digits. our one earlier to be a our week, brings we to that ABL foreign subsidiaries positioned $X mentioned, has small we feel And loan

million a sight, so on so We've now facility. math XX got facility back we largely of that see line plus that our million of coming And it's here that undrawn another or related clear component there's $XX of in availability with mid-year. and to

fair of a see we amount there. headroom right So

will are talked We'll the continue our be avenues evaluate. assets obviously we – here forward? have. what to go various had what that we as We Now about

and work in generation continue to that international small debt revenue. add extent the those flow additional operations create we free Our to to cash heat the additional kind business from the of to we'll makes think that sense, subsidiaries the to incremental that

Paul Howes

we're we that think our maturity pretty The able really that really think I harvesting done a a driven been the and to in solution. business That's job. be I the debt convert in operational on has us via George, great going And handle to have – the feel we've and comfortable capital the a has Fluids been really working place. great outstanding efficiencies put in ABL.

George O'Leary

over. your turn Super guys. helpful it back Thanks for I'll time.

Paul Howes

George. you, Thank

Operator

Rice Daniel question proceed Please And with from question. Burke with is & LLC. Company, our Johnson next your

Daniel Burke

guys. morning, Good Yes.

Paul Howes

morning, Daniel. Good

Daniel Burke

revisit me for the markets. off utility a George draft Let second and

able were guess, market service there Mats all that revenue question’s utility the you the overcome perspective. Really said, pressures, crosscurrents, by think in I And were some growth obviously, due I rental end the COVID you to business directed hurricane-related. overall X%. to the to

be you double-digits challenging it grow utility that repeat to hurricane the might So that? boost sufficient looking market at or again can XXXX,

Gregg Piontek

the Coast that This also didn't from would COVID rate say reflect ability that grow we is headwind. definitely a strong XXXX. that the QX, two at pretty in But the quarter Again to on come in was to that quarters a benefited after Gulf seeing in we which double-digit have work. fact QX, you we’re off meaningful have particularly a Gregg. I

look So we're you pull year-over-year basis, that growth in on strong back year and point exiting well a for on the pretty and set with growth up year-on-year continued XXXX. a

Daniel Burke

it. Got

to this question, a I change I continues over is into and And could the grow. that QX that I guess to you a contemplate? rentals one Maybe mean, sales always of asking you I is horizon. of spill I'm mean, XXXX, you the Okay. mix exposure the follow-up know to healthy in pretty But over between the the longer any see. utility mentioned market there Gregg. appetite bit

Gregg Piontek

Yes.

perspective, and to we a direct So as of customers, it'd But provide or to provide – needs cetera. both. and specific comes happy whether that than economics, our we'll to first the really back space purchase all, utility more are that move their offering rental, we our be from et into

the Now because to utility business, oilfield I And rental is is the a the space to what oilfield, component find short-term it. historical here business there mean a of purchase we nature you what our it. larger in find of is was relative

the think would makes think for have becomes that we that time because of larger over So a sense mix. they the they that that, about that needs have And their maintain you product component a to longer-term sale piece sustained infrastructure.

Paul Howes

Yes.

a longer if point look you some brand other the it continued it continue fleet. the it's to more create you identities, of is, a our then more need that And mask to What sector. The and too, over period of equity. replenish utility to advantage into beneficial does sell time products creates brand

in out is of efficient but running build our sales market to the to goal they're side continue perspective, access solutions. from terms and site the parallel, of most the operation So it also

Daniel Burke

margins Got EBITDA And take I'd ask it. Eastern like then guess suppose, But meaningfully can let to the in I the question COVID breakeven kind the hard to is, – me to impacts I business. That's And still exactly with without when guys. pivot of internationally. see you recovery above dissipate you hemisphere? Understood. helpful Fluids

David Paterson

Paterson. Daniel. morning, This is David Good absolutely. Yes, Yes.

I I business. it’s possibly slightly. COVID are QX coming the of customers the disruption, and volumes QX and quarter. and in and second learning We’d the with And And are out think of our to are project year. then live we some move Eastern stronger we late tailwind profitable parts to contracts most historically are travel think [indiscernible] of being are impacts starting QX COVID and lingering I into see been half seeing of still think Hemisphere the delayed

margins and I think to QX I we the certainly improve, I think rich HX think with pipeline and have, contracts going need [indiscernible] forward.

Paul Howes

Yes.

beyond look getting key that American to to that there where that in going recovery driving profitability face As obviously to we forward. North international at with the out is we land near-term, component look breakeven meaningful are you back piece QX the very But level. the the improvement, here a

Daniel Burke

Okay. I'll comments. Thank All guys. for there. right, it you leave the

Paul Howes

Thank you.

Operator

with is Please next Capital Our proceed Tieton Instructions] question [Operator with Management. Dezellem from Bill your question.

Paul Howes

Good morning, Bill.

William Dezellem

[Indiscernible]

Paul Howes

having We’re you. hearing tough a time

Gregg Piontek

Bill, we callers here real [indiscernible] other Newpark. at quick, All time pretty clear. are in. the having redial a you hard Maybe hearing

William Dezellem

later. on call I'll Okay.

Paul Howes

Yes.

time. We’re Operator? having hard

Operator

like to to no for closing time. questions And this the back are remarks. at turn over further I'd management floor There

Paul Howes

for end look you and the Thank in the joining again to for call quarter. again the you on your we talking once and at right. Newpark, to us forward next interest All of

Operator

does and conclude thank participation. Ladies This today's for gentlemen, teleconference. you your

day. your You and have lines may wonderful a disconnect