NPK International Inc 2024年度报告

1-877-MAT-ROADINVESTORS@NPKI.COMNPKI.COM ShareholdersT O O U R 2024 was a historic year for our company,in which we achieved transformationalmilestones for our business and NPKshareholders. With the divestiture of ourlegacy Fluids Systems business during thethird quarter, we brought to conclusion amulti-year business simplification plan,that positions NPK as a pure-play worksiteaccess and specialty rental solutionsbusiness. Matthew S. LaniganPresident & CEO Off the back of that simplification,we launched our new brand identity,NPK International, a leading worksiteaccess solutions company committedto providing best-in-class products andservices to support our customers’ criticalinfrastructure projects. We also initiatedthe industry reclassification process thatupon completion, will serve to broaden ourexposure to new pools of investor capital aswe continue to raise awareness around theNPK value creation thesis. YEAR IN REVIEWOur strategic goals for 2024 were clear: 1) Complete the divestiture of our FluidsSystems business unit Having worked tirelessly over the previoustwo years to create a leaner, more agilebusiness, we concluded the sale of theFluids Systems business to SCF Partners inSeptember 2024. The conclusion of the multi-year processsaw us extract over $200 million from theFluids Systems business which enabled usto repay substantially all outstanding debt,fund growth in our worksite access andspecialty rental solutions business and exit2024 in a net cash position. Our go forward vertically integrated model,which combines in-house products,engineering, design and manufacturing,together with site-level logistics planningand services, represents a unique valueproposition for the leading energy andinfrastructure customer brands that weserve. and critical infrastructure markets, thatposition us to achieve meaningful returns inexcess of our cost of capital. 2) Invest and scale our worksite accessand specialty rental solutions business With significant sector tailwinds drivinggrowth in our key served industries in 2024and beyond, we are steadfastly committedto growing our scale in the US where webelieve significant market share remainsfor our superior DURA-BASE AdvancedComposite Matting System. We also achieved a record year of productsales, another clear indicator of thecompelling value proposition of the Dura-Base system. Entering 2024, we also highlighted ourintent to complete the build out of ournationwide sales team and focus ourcommercial efforts toward the highest-value opportunities capable of driving theprofitable growth of our business. Thisapproach meant moving away from certainservice-intensive projects that failed tomeet our required return thresholds, whileconcentrating efforts on high-impactrelationships and projects that value our With that as a backdrop, we continuedto invest in the expansion of our rentalfleet during 2024, investing a net $33million, expanding our fleet by 11%and strengthening our customerresponsiveness and ability to serve theunique requirements of every projectengagement. We continue to prioritizelarger scale customer projects with longerdurations, mainly within our core utilities unique, integrated solutions model thatshould deliver ongoing benefits in 2025and beyond. While this focus impactedour overall revenue growth for the year, itdelivered on its goal of improving incomeand returns, positioning us well forcontinued profitable growth in the comingyears. STRONG FULL-YEARPERFORMANCEIn 2024, we delivered solid improvements in our financial results. Highlights include: •Revenues of $217.5 million, +5%•Gross Margin of 35.5%, +60 bps•SG&A of $46.0m, down 10%•Operating income from continuingoperations of $32.4 million, +41%•Operating margin from continuingoperations of 14.9%, +390 bps•Ending cash of $18 million and debt of$8 million, a $46 million improvement intotal net debt 3) Continue to drive cash conversionand returns while supporting a balancedreturn of capital strategy. We again demonstrated a thoughtfuland disciplined approach to operatingefficiency and cash managementthroughout the year. With our major transformational milestonescompleted in 2024, we enter 2025 with asingular focus on the profitable growth ofour worksite access and specialty rentalsolutions business. We have a robustbalance sheet to support our growth plansand remain confident that our strategywithin our served markets will continue todeliver value for our shareholders. We exited the year in a net cash position,having made significant investment inthe growth of our rental fleet, and havingimproved our gross margins by 60bps andreduced our SG&A by 10%. Due to the timing of the fluids businesssale process and other events, ourprogrammatic share repurchase programwas paused in 2024. However, we remaincommitted to maintaining a strong balancesheet, prioritizing organic investment toexpand our rental business while evaluatingaccretive inorganic growth opportunitiesto accelerate