RPC Inc. (NYSE:RES) Q2 2018 Earnings Conference Call - Final Transcript
Jul 25, 2018 • 09:00 am ET
And thank you for joining us for RPC Incorporated Second Quarter 2018 Financial Earnings Conference Call. Today's call will be hosted by Rick Hubbell, President and CEO; and Ben Palmer, Chief Financial Officer. Also present is Jim Landers, Vice President of Corporate Finance. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions]
Jim will get us started by reading the forward-looking disclaimer.
Thank you, and good morning. Before we begin our call today, I want to remind you that in order to talk about our Company, we're going to mention a few things that are not historical facts. Some of the statements that will be made on this call could be forward-looking in nature and reflect a number of known and unknown risks. I'd like to refer you to our press release issued today, along with our 2017 10-K and other public filings that outline those risks, all of which can be found on RPC's website at www.rpc.net.
I also need to say that in today's earnings release and conference call, we'll be referring to EBITDA which is a non-GAAP measure of operating performance. RPC uses EBITDA as a measure of operating performance because it allows us to compare performance consistently over various periods without regard to changes in our capital structure. We are also required to use EBITDA to report compliance with financial covenants under our credit facility.
Our press release issued this morning in our website contain reconciliations of these non-GAAP financial measure to net income, which is the nearest GAAP financial measure. Please review that disclosure if you're interested in seeing how its calculated. If you've not received our press release for any reason, please visit our website again at www.rpc.net for a copy.
I will now turn the call over to our President and CEO, Rick Hubbell.
Richard A. Hubbell
Thank you, Jim. This morning we issued our earnings press release for RPC's second quarter of 2018. The average US domestic rig count during the second quarter of 2018 was 1,039, a 16.1% increase compared to the same period in 2017, and a 7.6% increase compared to the first quarter of 2018. Oilfield activity improved moderately during the second quarter as favorable oil prices supported our customers' drilling and completion activities. We are generally pleased with our operational performance during the quarter. However, increasing competition has limited the ability of oilfield service companies to raise prices at the present time.
Our CFO, Ben Palmer will review our financial results in more detail after which I'll have a few closing comments.
Ben M. Palmer
Thank you, Rick. For the second quarter, revenues increased to $467.9 million compared to $398.8 million in the prior year. Revenues increased due to higher activity levels, and a larger fleet of revenue-producing equipment. EBITDA for the second quarter was a $119.2 million compared to $110.3 million for the same period last year. Operating profit for the quarter increased $75 million, compared to $67 million in the prior year.