Wednesday, oil and gas servicing company RPC, Inc. (RES) announced results for the fourth quarter, reporting a profit flat with last year, dented by higher expenses, even as the company reported higher revenues.
The Atlanta, Georgia-based company's fourth-quarter net income totaled $20.41 million or $0.21 per share, compared to $20.30 million or $0.21 per share in the last year quarter.
Three analysts polled by First Call/Thomson Financial expected earnings of $0.21 per share for the quarter. Analysts' estimates usually exclude one time items.
Revenues rose 22.4% to $227.84 million from $186.19 million in the last year quarter. Analysts expected revenue of $215.69 million for the quarter.
The company attributed the increase in revenues to higher capacity of revenue-producing equipment placed in service during the last 12 months and greater utilization of most of the fleet of revenue-producing equipment.
Operating profit increased 5.8% to $36.70 million from $34.69 million last year.
Depreciation and amortization jumped 32.7% to $31.46 million during the quarter from $23.70 million last year, due to the capital expenditures made during the last year.
Selling, general and administrative expenses increased 5.5% to $30.15 million from $28.57 million in the prior year quarter. The company said the increase was due primarily to higher employment and other costs consistent with higher activity levels.
For the full year, net income declined 4.2% to $83.40 million or $0.85 per share from $87.05 or $0.89 per share in the previous year. Revenues rose 27.1% to $876.98 million from $690.23 million last year.
RES closed Tuesday's trading session at $8.55 on the NYSE.
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