Paul Howes, President and Chief Executive Officer of Newpark, stated, "We have spent the past six months dealing with our internal investigation, the analysis and restatement of our financial results, and the analysis and decision to shut down Newpark Environmental Water Solutions. We are now moving beyond those challenges and are entering the next stage.
"A critical part of us positioning Newpark for sustainable earnings growth is assembling a strong new leadership team," added Howes. "We are extremely pleased to have attracted Jim Braun as Vice President and Chief Financial Officer and Mark Airola as General Counsel and Chief Administrative Officer. Additionally, we are fortunate to have three strong segment presidents running our business, Bruce Smith of Drilling Fluids, Sean Mikaelian of Mats & Integrated Services, and Sammy Cooper of Environmental Services. I am also pleased that David Anderson has recently joined our Board. All bring significant technical skills and industry experience to Newpark.
"With our executive team essentially in place, we are now addressing our strategic and operational growth plans. We recently engaged CRA International (Charles River Associates), a leading provider of economic and financial expertise and management consulting services, to assist and advise us as we evaluate our future strategies. We believe that at the end of this evaluation process, we will emerge as a stronger and more focused company.
"I would like to personally thank all the employees, customers and stakeholders that have supported us. We look forward to reporting on our progress as we move forward, including the upcoming filings of our 2006 quarterly results on November 9th and the conference call on November 13th," concluded Howes.
Please refer to Newpark's Form 10-K/A for details of items related to the restatement and their impact on previously reported financial statements. The following is a summary of the net financial impact. Adjustments to previously reported consolidated net income are as follows: an increase of $641,000 for 2005; an increase of $541,000 for 2004; a reduction of $432,000 for 2003; and a net reduction of approximately $12.7 million for the period from 1998 through 2002. Adjustments to previously reported balance sheet figures as of December 31, 2005 are as follows: total assets were reduced by $6.6 million; total liabilities were reduced by $2.9 million; and total stockholders' equity was reduced by $3.7 million.
Newpark Resources, Inc. is a worldwide provider of drilling fluids, environmental waste treatment solutions, and temporary worksites and access roads for oilfield and other commercial markets.
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