Newpark Resources, Inc. (NYSE:NR) Q3 2023 Earnings Conference Call November 1, 2023 9:30 AM ET
Company Participants
Rob Krotee - Vice President of Investor Relations, Strategy & Corporate Development
Matthew Lanigan - President & Chief Executive Officer
Gregg Piontek - Chief Financial Officer
Conference Call Participants
Aaron Spychalla - Craig-Hallum
Bill Dezellem - Tieton Capital
Operator
Good morning. My name is Todd and I will be your conference operator today. At this time, I would like to welcome everyone to the Newpark Resources Third Quarter 2023 Earnings Conference Call. Today's call is being recorded and will be available for replay beginning at 12:30 p.m. Eastern. The recording can be accessed by dialing 888-219-1276 for domestic or 402-220-4949 for international. [Operator Instructions]
It is now my pleasure to turn the floor over to Rob Krotee, Vice President of Investor Relations and Strategy. Please go ahead.
Rob Krotee
Thank you, operator. On behalf of the entire team at Newpark Resources, I'd like to welcome you to our third quarter 2023 results conference call. Leading the call today are Matthew Lanigan, our President and CEO; and Gregg Piontek, our CFO.
Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. Our comments on today's call may also include certain non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures are included in our quarterly earnings release which can be found on our corporate website. There will be a replay of today's call and it will be available by webcast within the Investor Relations section of our website at newpark.com. Please note that the information disclosed on today's call are current as of November 1, 2023. At the conclusion of our prepared remarks, we will also open the line for questions.
With that, I'd like to turn the call over to our President and CEO, Matthew Lanigan.
Matthew Lanigan
Thank you, Rob and welcome to everyone joining us on today's call.
I'm pleased to share that our team delivered strong third quarter results, while demonstrating continued execution on our multiyear business transformation strategy. Ongoing commercial growth and operational excellence initiatives across the enterprise contributed to significant year-over-year growth in net income, adjusted EBITDA and free cash flow in the third quarter, putting us on pace for a solid full year performance. We generated third quarter net income of $7.7 million or $0.09 per diluted share on revenues of $198 million. Industrial Solutions revenue improved 12%, delivering a 28% improvement in segment adjusted EBITDA, while divestitures and other actions within Fluid Systems are driving a more focused and profitable business delivering a 12% improvement in segment adjusted EBITDA on 16% less revenue.