Newpark Resources, Inc. reported its financial results for the third quarter and the first nine months of 2024, reflecting significant changes following the sale of its Fluids Systems segment on September 13, 2024. The company’s total revenues for the third quarter were $44.2 million, a decrease of 23% from $57.3 million in the same period of 2023. For the first nine months, revenues slightly declined to $160.0 million from $161.2 million year-over-year.

The operating income from continuing operations for the third quarter was $1.2 million, down from $6.3 million in the prior year, while for the first nine months, it increased to $20.7 million from $16.9 million. Notably, income from continuing operations for the third quarter rose to $14.9 million compared to $2.7 million in 2023, and for the nine months, it reached $27.6 million, up from $9.0 million.

Despite these gains in continuing operations, the company reported a net loss of $174.3 million for the third quarter, compared to a net income of $7.7 million in the same period last year. The loss was primarily attributed to a $195.7 million loss on the sale of the Fluids Systems segment, which had previously accounted for a significant portion of the company’s revenue.

The company’s cash and cash equivalents surged to $42.9 million as of September 30, 2024, from $0.8 million at the end of 2023. Total assets decreased to $389.6 million from $642.3 million, while total liabilities fell to $73.2 million from $227.0 million, reflecting the impact of the divestiture.

Newpark's Industrial Solutions segment, which now represents the entirety of its operations, generated $44.2 million in revenues for the third quarter, down from $57.3 million in the prior year. The decline was driven by reduced rental and service revenues, which fell to $32.4 million from $38.1 million, and product sales, which decreased to $11.8 million from $19.2 million.

The company has initiated a new share repurchase program of up to $50 million, although no shares were repurchased in the first nine months of 2024 due to restrictions related to the Fluids Systems sale. The company is focusing on operational efficiency, with a $5.5 million reduction in selling, general, and administrative expenses year-over-year.

Overall, Newpark Resources is navigating a transitional phase post-divestiture, with a strategic focus on enhancing its Industrial Solutions segment while managing the financial implications of the recent sale.