Forum Energy Technologies, Inc. (NYSE: FET) today announced third
quarter 2015 revenue of $245 million, a decrease of $224 million, or
48%, from the third quarter 2014. Net income for the quarter was $7
million or $0.07 per diluted share compared to $52 million or $0.54 per
diluted share for the prior year period. The reported diluted earnings
per share of $0.07 included a restructuring charge of $2.2 million or
$0.02 per share and a foreign exchange gain1 of $2.8 million
or $0.02 per share. See Table I for a reconciliation of GAAP to non-GAAP
financial information.
Average oil prices declined approximately 50% from the prior year
period, leading to significant reductions in revenue across the product
lines. The continued downward trend in spending on drilling, completion,
and subsea activity, as exemplified by the 54% drop in the North
American land rig count, impacted our third quarter results.
Drilling & Subsea segment revenue in the third quarter 2015 was $139
million, a decrease of $168 million, or 55%, from the third quarter 2014.
Production & Infrastructure segment revenue in the third quarter 2015
was $106 million, a decrease of $56 million, or 34%, from the prior year
period.
Review and Outlook
Cris Gaut, Forum’s Chairman and Chief Executive Officer, remarked,
"Although our revenue decreased in line with industry trends, Forum
generated free cash flow of $54 million after capital expenditures and
protected our operating margins with continued cost reductions. Our
strong balance sheet and cash flow will see us through this severe
downturn and position us well for the recovery.
The unexpected 20% sequential decline in average oil prices from the
second quarter negatively impacted our customers' spending levels,
resulting in a 14% decrease in revenue sequentially. EBITDA for the
quarter, excluding non-operational items, was $31 million, or 12.8% of
revenue.
"New orders received by Forum in the third quarter were $213 million and
our third quarter 2015 book to bill ratio was 87%.
"The fourth quarter is shaping up to be a challenge. Many E&P operators
have exhausted their budgets and we expect our customers to slow their
activity following Thanksgiving."
Recent Events
Forum signed a contract during the third quarter for more than $20
million with Egyptian Refining Company to engineer, design, and build
eight Edge™ II desalters. Forum’s proprietary technology has been used
in many refineries around the world and maximizes desalting performance
and feedstock capacity.
Conference Call Information
Forum's conference call is scheduled for October 23, 2015 at 9:00 AM
CDT. During the call, the Company intends to discuss third quarter 2015
results. To participate in the earnings conference call, please call
855-757-8876 within North America, or 631-485-4851 outside of North
America. The access code is 54179824. The call will also be broadcast
through the Investor Relations link on Forum’s website at www.f-e-t.com.
Participants are encouraged to log in to the webcast or dial in to the
conference call approximately ten minutes prior to the start time. A
replay of the call will be available for two weeks after the call and
may be accessed by dialing 855-859-2056 within North America, or
404-537-3406 outside of North America. The access code is 54179824.
Forum Energy Technologies is a global oilfield products company,
serving the subsea, drilling, completion, production and infrastructure
sectors of the oil and natural gas industry. The Company's products
include highly engineered capital equipment as well as products that are
consumed in the drilling, well construction, production and
transportation of oil and natural gas. Forum is headquartered
in Houston, TX with manufacturing and distribution facilities
strategically located around the globe. For more information, please
visit www.f-e-t.com.
Forward Looking Statements and Other Legal Disclosure
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that the company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Without limiting the generality of the
foregoing, forward-looking statements contained in this press release
specifically include the expectations of plans, strategies, objectives
and anticipated financial and operating results of the company,
including any statement about the company's future financial position,
liquidity and capital resources, operations, performance, acquisitions,
returns, capital expenditure budgets, new product development
activities, costs and other guidance included in this press release.
These statements are based on certain assumptions made by the company
based on management's experience and perception of historical trends,
current conditions, anticipated future developments and other factors
believed to be appropriate. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the company, which may cause actual results to differ
materially from those implied or expressed by the forward-looking
statements. Among other things, these include the volatility of oil and
natural gas prices, oilfield development activity levels, the
availability of raw materials and specialized equipment, the company's
ability to deliver backlog in a timely fashion, the availability of
skilled and qualified labor, competition in the oil and gas industry,
governmental regulation and taxation of the oil and natural gas
industry, the company's ability to implement new technologies and
services, the availability and terms of capital, and uncertainties
regarding environmental regulations or litigation and other legal or
regulatory developments affecting the company's business, and other
important factors that could cause actual results to differ materially
from those projected as described in the company's filings with the
Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such
statement is made and the company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
1 Foreign exchange gain primarily relates to receivables
billed in U.S. dollars by some of our non-U.S. subsidiaries that report
in a local currency, and therefore the gain has no economic impact in
dollar terms.
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Forum Energy Technologies, Inc.
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Condensed consolidated statements of income
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(Unaudited)
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|
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Three months ended
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|
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September 30,
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June 30,
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(in millions, except per share information)
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2015
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2014
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2015
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Revenue
|
|
$
|
245.0
|
|
|
$
|
468.8
|
|
|
|
$
|
284.4
|
|
Total operating expenses
|
|
236.7
|
|
|
399.5
|
|
|
|
265.8
|
|
Earnings from equity investment
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|
3.9
|
|
|
6.7
|
|
|
|
3.8
|
|
Operating income
|
|
12.2
|
|
|
76.0
|
|
|
|
22.4
|
|
Other expense (income)
|
|
|
|
|
|
|
|
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Interest expense
|
|
7.4
|
|
|
7.7
|
|
|
|
7.6
|
|
Loss (gain) on foreign exchange and other, net
|
|
(2.9
|
)
|
|
(5.2
|
)
|
|
|
4.0
|
|
Profit before income taxes
|
|
7.7
|
|
|
73.5
|
|
|
|
10.8
|
|
Provision for income tax expense
|
|
1.0
|
|
|
21.3
|
|
|
|
1.9
|
|
Net income
|
|
6.7
|
|
|
52.2
|
|
|
|
8.9
|
|
Less: Net income attributable to noncontrolling interest
|
|
-
|
|
|
-
|
|
|
|
-
|
|
Net income attributable to common stockholders (1)
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|
$
|
6.7
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|
|
$
|
52.2
|
|
|
|
$
|
8.9
|
|
|
|
|
|
|
|
|
|
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Weighted average shares outstanding
|
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|
|
|
|
|
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Basic
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90.1
|
|
|
93.3
|
|
|
|
89.8
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Diluted
|
|
91.7
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|
|
96.2
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|
|
|
91.9
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|
|
|
|
|
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Earnings per share
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Basic
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$
|
0.07
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|
|
$
|
0.56
|
|
|
|
$
|
0.10
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Diluted
|
|
$
|
0.07
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|
$
|
0.54
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|
|
$
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0.10
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|
|
|
|
|
|
|
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|
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(1) Refer to Table 1 for schedule of adjusting items.
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Forum Energy Technologies, Inc.
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Condensed consolidated statements of income
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(Unaudited)
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Nine months ended
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|
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September 30,
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(in millions, except per share information)
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2015
|
|
|
2014
|
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Revenue
|
|
$
|
877.5
|
|
|
|
$
|
1,301.0
|
|
|
Total operating expenses
|
|
815.0
|
|
|
|
1,115.8
|
|
|
Earnings from equity investment
|
|
12.3
|
|
|
|
18.0
|
|
|
Operating income
|
|
74.8
|
|
|
|
203.2
|
|
|
Other expense (income)
|
|
|
|
|
|
|
Interest expense
|
|
22.6
|
|
|
|
23.2
|
|
|
Loss (gain) on foreign exchange and other, net
|
|
(5.6
|
)
|
|
|
(0.7
|
)
|
|
Profit before income taxes
|
|
57.8
|
|
|
|
180.7
|
|
|
Provision for income tax expense
|
|
13.5
|
|
|
|
52.4
|
|
|
Net income
|
|
44.3
|
|
|
|
128.3
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
-
|
|
|
|
-
|
|
|
Net income attributable to common stockholders (1)
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|
$
|
44.3
|
|
|
|
$
|
128.3
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
Basic
|
|
89.8
|
|
|
|
92.7
|
|
|
Diluted
|
|
91.6
|
|
|
|
95.6
|
|
|
|
|
|
|
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|
|
Earnings per share
|
|
|
|
|
|
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Basic
|
|
$
|
0.49
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|
|
|
$
|
1.38
|
|
|
Diluted
|
|
$
|
0.48
|
|
|
|
$
|
1.34
|
|
|
|
|
|
|
|
|
|
(1) Refer to Table 2 for schedule of adjusting items.
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Forum Energy Technologies, Inc.
|
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Condensed consolidated balance sheets
|
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(Unaudited)
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(in millions of dollars)
|
|
September 30,
2015
|
|
|
December 31,
2014
|
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Assets
|
|
|
|
|
|
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Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
76.2
|
|
|
|
$
|
76.6
|
|
Accounts receivable—trade, net
|
|
157.6
|
|
|
|
287.0
|
|
Inventories, net
|
|
504.8
|
|
|
|
461.5
|
|
Other current assets
|
|
78.2
|
|
|
|
70.0
|
|
Total current assets
|
|
816.8
|
|
|
|
895.1
|
|
Property and equipment, net of accumulated depreciation
|
|
196.8
|
|
|
|
190.0
|
|
Goodwill and other intangibles, net
|
|
1,056.7
|
|
|
|
1,070.2
|
|
Investment in unconsolidated subsidiary
|
|
56.4
|
|
|
|
49.7
|
|
Other long-term assets
|
|
14.7
|
|
|
|
16.6
|
|
Total assets
|
|
$
|
2,141.4
|
|
|
|
$
|
2,221.6
|
|
Liabilities and Equity
|
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|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Current portion of long-term debt
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|
$
|
0.3
|
|
|
|
$
|
0.8
|
|
Other current liabilities
|
|
190.0
|
|
|
|
281.4
|
|
Total current liabilities
|
|
190.3
|
|
|
|
282.2
|
|
Long-term debt, net of current portion
|
|
402.6
|
|
|
|
428.0
|
|
Other long-term liabilities
|
|
117.6
|
|
|
|
115.4
|
|
Total liabilities
|
|
710.5
|
|
|
|
825.6
|
|
Total stockholders’ equity
|
|
1,430.5
|
|
|
|
1,395.4
|
|
Noncontrolling interest in subsidiary
|
|
0.4
|
|
|
|
0.6
|
|
Total equity
|
|
1,430.9
|
|
|
|
1,396.0
|
|
Total liabilities and equity
|
|
$
|
2,141.4
|
|
|
|
$
|
2,221.6
|
|
|
|
|
|
Forum Energy Technologies, Inc.
|
|
Condensed consolidated cash flow information
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine months ended September 30,
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|
(in millions of dollars)
|
|
2015
|
|
|
2014
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
$
|
44.3
|
|
|
|
$
|
128.3
|
|
|
Depreciation and amortization
|
|
49.3
|
|
|
|
48.9
|
|
|
Other, primarily working capital
|
|
24.1
|
|
|
|
2.6
|
|
|
Net cash provided by operating activities
|
|
$
|
117.7
|
|
|
|
$
|
179.8
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Capital expenditures for property and equipment
|
|
$
|
(28.1
|
)
|
|
|
$
|
(39.9
|
)
|
|
Proceeds from sale of business, property and equipment and other
|
|
1.7
|
|
|
|
8.7
|
|
|
Acquisition of businesses, net of cash acquired
|
|
(60.8
|
)
|
|
|
(38.3
|
)
|
|
Net cash used in investing activities
|
|
$
|
(87.2
|
)
|
|
|
$
|
(69.5
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Borrowings of long-term debt, including borrowings due to
acquisitions
|
|
$
|
79.9
|
|
|
|
$
|
-
|
|
|
Repayment of long-term debt
|
|
(106.0
|
)
|
|
|
(91.8
|
)
|
|
Other
|
|
(1.4
|
)
|
|
|
16.3
|
|
|
Net cash provided by (used in) financing activities
|
|
$
|
(27.5
|
)
|
|
|
$
|
(75.5
|
)
|
|
Effect of exchange rate changes on cash
|
|
(3.4
|
)
|
|
|
(0.3
|
)
|
|
Net decrease in cash and cash equivalents
|
|
$
|
(0.4
|
)
|
|
|
$
|
34.5
|
|
|
|
|
Forum Energy Technologies, Inc.
|
|
Supplemental schedule - Segment information
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
As Adjusted (5)
|
|
|
|
Three months ended
|
|
|
Three months ended
|
|
(in millions of dollars)
|
|
September 30,
2015
|
|
September 30,
2014
|
|
June 30,
2015
|
|
|
September 30,
2015
|
|
September 30,
2014
|
|
June 30,
2015
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Subsea
|
|
$
|
139.1
|
|
|
$
|
307.4
|
|
|
$
|
169.7
|
|
|
|
$
|
139.1
|
|
|
$
|
307.4
|
|
|
$
|
169.7
|
|
|
Production & Infrastructure
|
|
106.2
|
|
|
161.7
|
|
|
114.9
|
|
|
|
106.2
|
|
|
161.7
|
|
|
114.9
|
|
|
Eliminations
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
Total revenue
|
|
$
|
245.0
|
|
|
$
|
468.8
|
|
|
$
|
284.4
|
|
|
|
$
|
245.0
|
|
|
$
|
468.8
|
|
|
$
|
284.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Subsea
|
|
$
|
6.7
|
|
|
$
|
57.9
|
|
|
$
|
15.4
|
|
|
|
$
|
8.7
|
|
|
$
|
57.9
|
|
|
$
|
18.1
|
|
|
Operating income margin %
|
|
4.8
|
%
|
|
18.8
|
%
|
|
9.1
|
%
|
|
|
6.3
|
%
|
|
18.8
|
%
|
|
10.7
|
%
|
|
Production & Infrastructure (1)
|
|
10.7
|
|
|
29.8
|
|
|
15.2
|
|
|
|
10.9
|
|
|
29.8
|
|
|
14.2
|
|
|
Operating income margin %
|
|
10.1
|
%
|
|
18.4
|
%
|
|
13.2
|
%
|
|
|
10.3
|
%
|
|
18.4
|
%
|
|
12.4
|
%
|
|
Corporate
|
|
(5.0
|
)
|
|
(10.2
|
)
|
|
(8.1
|
)
|
|
|
(5.0
|
)
|
|
(10.2
|
)
|
|
(7.8
|
)
|
|
Total Segment operating income
|
|
12.4
|
|
|
77.5
|
|
|
22.5
|
|
|
|
14.6
|
|
|
77.5
|
|
|
24.5
|
|
|
Other items not in segment operating income (2)
|
|
(0.2
|
)
|
|
(1.5
|
)
|
|
(0.1
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Total operating income
|
|
$
|
12.2
|
|
|
$
|
76.0
|
|
|
$
|
22.4
|
|
|
|
$
|
14.6
|
|
|
$
|
77.5
|
|
|
$
|
24.5
|
|
|
Operating income margin %
|
|
5.0
|
%
|
|
16.2
|
%
|
|
7.9
|
%
|
|
|
6.0
|
%
|
|
16.5
|
%
|
|
8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Subsea
|
|
$
|
20.6
|
|
|
$
|
74.6
|
|
|
$
|
22.4
|
|
|
|
$
|
19.8
|
|
|
$
|
70.0
|
|
|
$
|
29.4
|
|
|
Percentage of D&S revenue %
|
|
14.8
|
%
|
|
24.3
|
%
|
|
13.2
|
%
|
|
|
14.2
|
%
|
|
22.8
|
%
|
|
17.3
|
%
|
|
Production & Infrastructure
|
|
14.5
|
|
|
32.8
|
|
|
18.9
|
|
|
|
14.9
|
|
|
32.9
|
|
|
18.0
|
|
|
Percentage of P&I revenue %
|
|
13.7
|
%
|
|
20.3
|
%
|
|
16.4
|
%
|
|
|
14.0
|
%
|
|
20.3
|
%
|
|
15.7
|
%
|
|
Corporate
|
|
(3.2
|
)
|
|
(8.1
|
)
|
|
(6.5
|
)
|
|
|
(3.4
|
)
|
|
(8.1
|
)
|
|
(6.3
|
)
|
|
Other items (4)
|
|
(0.2
|
)
|
|
(1.5
|
)
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Total EBITDA
|
|
$
|
31.7
|
|
|
$
|
97.8
|
|
|
$
|
34.8
|
|
|
|
$
|
31.3
|
|
|
$
|
94.8
|
|
|
$
|
41.1
|
|
|
Percentage of total revenue %
|
|
12.9
|
%
|
|
20.9
|
%
|
|
12.2
|
%
|
|
|
12.8
|
%
|
|
20.2
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes earnings from equity investment.
|
|
(2) Includes transaction expenses and gain/(loss) on sale
of assets.
|
|
(3) The Company believes that the presentation of EBITDA
is useful to the Company's investors because EBITDA is an
appropriate measure of evaluating the company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions. In addition,
EBITDA is a widely used benchmark in the investment community. See
the attached separate schedule for the reconciliation of GAAP to
non-GAAP financial information.
|
|
(4) Includes transaction expenses.
|
|
(5) Refer to Table 1 for schedule of adjusting items.
|
|
|
|
Forum Energy Technologies, Inc.
|
|
Supplemental schedule - Segment information
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
As Adjusted (5)
|
|
|
|
Nine months ended
|
|
|
Nine months ended
|
|
(in millions of dollars)
|
|
September 30,
2015
|
|
September 30,
2014
|
|
|
September 30,
2015
|
|
September 30,
2014
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Drilling & Subsea
|
|
$
|
523.9
|
|
|
$
|
848.4
|
|
|
|
$
|
523.9
|
|
|
$
|
848.4
|
|
|
Production & Infrastructure
|
|
354.3
|
|
|
453.7
|
|
|
|
354.3
|
|
|
453.7
|
|
|
Eliminations
|
|
(0.7
|
)
|
|
(1.1
|
)
|
|
|
(0.7
|
)
|
|
(1.1
|
)
|
|
Total revenue
|
|
$
|
877.5
|
|
|
$
|
1,301.0
|
|
|
|
$
|
877.5
|
|
|
$
|
1,301.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
Drilling & Subsea
|
|
$
|
51.3
|
|
|
$
|
155.3
|
|
|
|
$
|
60.5
|
|
|
$
|
155.4
|
|
|
Operating income margin %
|
|
9.8
|
%
|
|
18.3
|
%
|
|
|
11.5
|
%
|
|
18.3
|
%
|
|
Production & Infrastructure (1)
|
|
45.1
|
|
|
80.3
|
|
|
|
44.7
|
|
|
80.6
|
|
|
Operating income margin %
|
|
12.7
|
%
|
|
17.7
|
%
|
|
|
12.6
|
%
|
|
17.8
|
%
|
|
Corporate
|
|
(21.4
|
)
|
|
(29.6
|
)
|
|
|
(21.1
|
)
|
|
(29.4
|
)
|
|
Total Segment operating income
|
|
75.0
|
|
|
206.0
|
|
|
|
84.1
|
|
|
206.6
|
|
|
Other items not in segment operating income (2)
|
|
(0.2
|
)
|
|
(2.8
|
)
|
|
|
0.3
|
|
|
0.4
|
|
|
Total operating income
|
|
$
|
74.8
|
|
|
$
|
203.2
|
|
|
|
$
|
84.4
|
|
|
$
|
207.0
|
|
|
Operating income margin %
|
|
8.5
|
%
|
|
15.6
|
%
|
|
|
9.6
|
%
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (3)
|
|
|
|
|
|
|
|
|
|
|
Drilling & Subsea
|
|
$
|
91.4
|
|
|
$
|
192.2
|
|
|
|
$
|
94.6
|
|
|
$
|
191.2
|
|
|
Percentage of D&S revenue %
|
|
17.5
|
%
|
|
22.7
|
%
|
|
|
18.1
|
%
|
|
22.5
|
%
|
|
Production & Infrastructure
|
|
55.2
|
|
|
88.9
|
|
|
|
55.9
|
|
|
89.9
|
|
|
Percentage of P&I revenue %
|
|
15.6
|
%
|
|
19.6
|
%
|
|
|
15.8
|
%
|
|
19.8
|
%
|
|
Corporate
|
|
(16.5
|
)
|
|
(25.3
|
)
|
|
|
(16.4
|
)
|
|
(25.2
|
)
|
|
Other items (4)
|
|
(0.4
|
)
|
|
(3.1
|
)
|
|
|
-
|
|
|
-
|
|
|
Total EBITDA
|
|
$
|
129.7
|
|
|
$
|
252.7
|
|
|
|
$
|
134.1
|
|
|
$
|
255.9
|
|
|
Percentage of total revenue %
|
|
14.8
|
%
|
|
19.4
|
%
|
|
|
15.3
|
%
|
|
19.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes earnings from equity investment.
|
|
(2) Includes transaction expenses, loss on sale of
business and gain/(loss) on sale of assets.
|
|
(3) The Company believes that the presentation of EBITDA
is useful to the Company's investors because EBITDA is an
appropriate measure of evaluating the company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions. In addition,
EBITDA is a widely used benchmark in the investment community. See
the attached separate schedule for the reconciliation of GAAP to
non-GAAP financial information.
|
|
(4) Includes transaction expenses and loss on sale of
business.
|
|
(5) Refer to Table 2 for schedule of adjusting items.
|
|
|
|
|
|
Forum Energy Technologies, Inc.
|
|
Reconciliation of GAAP to non-GAAP financial information
|
|
(Unaudited)
|
|
|
|
|
|
Table 1 - Adjusting items
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
June 30, 2015
|
|
(in millions, except per share information)
|
|
Operating
income
|
|
EBITDA (1)
|
|
Diluted
EPS
|
|
Operating
income
|
|
EBITDA (1)
|
|
Diluted
EPS
|
|
Operating
income
|
|
EBITDA (1)
|
|
Diluted
EPS
|
|
As reported
|
|
$
|
12.2
|
|
|
$
|
31.7
|
|
|
$
|
0.07
|
|
|
$
|
76.0
|
|
|
$
|
97.8
|
|
|
$
|
0.54
|
|
|
$
|
22.4
|
|
|
$
|
34.8
|
|
|
$
|
0.10
|
|
% of revenue
|
|
5.0
|
%
|
|
12.9
|
%
|
|
|
|
16.2
|
%
|
|
20.9
|
%
|
|
|
|
7.9
|
%
|
|
12.2
|
%
|
|
|
|
Restructuring charges and other
|
|
2.2
|
|
|
2.2
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
2.1
|
|
|
2.1
|
|
|
|
|
Transaction expenses
|
|
0.2
|
|
|
0.2
|
|
|
|
|
1.5
|
|
|
1.5
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
Loss (gain) on foreign exchange, net (2)
|
|
-
|
|
|
(2.8
|
)
|
|
|
|
-
|
|
|
(4.5
|
)
|
|
|
|
-
|
|
|
4.2
|
|
|
|
|
As adjusted (1)
|
|
$
|
14.6
|
|
|
$
|
31.3
|
|
|
$
|
0.07
|
|
|
$
|
77.5
|
|
|
$
|
94.8
|
|
|
$
|
0.52
|
|
|
$
|
24.5
|
|
|
$
|
41.1
|
|
|
$
|
0.16
|
|
% of revenue
|
|
6.0
|
%
|
|
12.8
|
%
|
|
|
|
16.5
|
%
|
|
20.2
|
%
|
|
|
|
8.6
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2 - Adjusting items
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
(in millions, except per share information)
|
|
|
Operating
income
|
|
EBITDA (1)
|
|
Diluted EPS
|
|
Operating
income
|
|
EBITDA (1)
|
|
Diluted EPS
|
|
As reported
|
|
|
$
|
74.8
|
|
|
$
|
129.7
|
|
|
$
|
0.48
|
|
|
$
|
203.2
|
|
|
$
|
252.7
|
|
|
$
|
1.34
|
|
% of revenue
|
|
|
8.5
|
%
|
|
14.8
|
%
|
|
|
|
15.6
|
%
|
|
19.4
|
%
|
|
|
|
Restructuring charges and other
|
|
|
9.2
|
|
|
9.2
|
|
|
|
|
0.7
|
|
|
0.7
|
|
|
|
|
Transaction expenses
|
|
|
0.4
|
|
|
0.4
|
|
|
|
|
2.3
|
|
|
2.3
|
|
|
|
|
Loss on sale of business
|
|
|
-
|
|
|
-
|
|
|
|
|
0.8
|
|
|
0.8
|
|
|
|
|
Loss (gain) on foreign exchange, net (2)
|
|
|
-
|
|
|
(5.2
|
)
|
|
|
|
-
|
|
|
(0.6
|
)
|
|
|
|
As adjusted (1)
|
|
|
$
|
84.4
|
|
|
$
|
134.1
|
|
|
$
|
0.52
|
|
|
$
|
207.0
|
|
|
$
|
255.9
|
|
|
$
|
1.36
|
|
% of revenue
|
|
|
9.6
|
%
|
|
15.3
|
%
|
|
|
|
15.9
|
%
|
|
19.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company believes that the presentation of EBITDA,
adjusted EBITDA, adjusted operating income and adjusted Diluted EPS
is useful to the Company's investors because (i) EBITDA is an
appropriate measure of evaluating the Company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions and (ii) each
of adjusted EBITDA, adjusted operating income and adjusted Diluted
EPS is useful to investors to assess and understand operating
performance, especially when comparing those results with previous
and subsequent periods or forecasting performance for future
periods, primarily because management views the excluded items to be
outside of the Company's normal operating results. In addition,
EBITDA is a widely used benchmark in the investment community. See
the attached separate schedule for the reconciliation of GAAP to
non-GAAP financial information.
|
|
(2) Foreign exchange, net primarily relates to
receivables billed in U.S. dollars by some of our non-U.S.
subsidiaries that report in a local currency, and therefore the loss
has no economic impact in dollar terms.
|
|
|
|
Forum Energy Technologies, Inc.
|
|
Reconciliation of GAAP to non-GAAP financial information
|
|
(Unaudited)
|
|
|
|
|
Table 3 - Adjusting Items
|
|
|
|
|
|
Three months ended
|
|
(in millions of dollars)
|
September 30,
2015
|
|
September 30,
2014
|
|
June 30,
2015
|
|
EBITDA reconciliation (1)
|
|
|
|
|
|
|
Net income attributable to common stockholders
|
$
|
6.7
|
|
|
$
|
52.2
|
|
|
$
|
8.9
|
|
|
Interest expense
|
7.4
|
|
|
7.7
|
|
|
7.6
|
|
|
Depreciation and amortization
|
16.6
|
|
|
16.6
|
|
|
16.4
|
|
|
Income tax expense
|
1.0
|
|
|
21.3
|
|
|
1.9
|
|
|
EBITDA
|
$
|
31.7
|
|
|
$
|
97.8
|
|
|
$
|
34.8
|
|
|
|
|
|
|
|
|
Table 4 - Adjusting Items
|
|
|
|
|
|
Nine months ended
|
|
(in millions of dollars)
|
September 30,
2015
|
|
September 30,
2014
|
|
EBITDA reconciliation (1)
|
|
|
|
|
Net income attributable to common stockholders
|
$
|
44.3
|
|
|
$
|
128.3
|
|
|
Interest expense
|
22.6
|
|
|
23.2
|
|
|
Depreciation and amortization
|
49.3
|
|
|
48.8
|
|
|
Income tax expense
|
13.5
|
|
|
52.4
|
|
|
EBITDA
|
$
|
129.7
|
|
|
$
|
252.7
|
|
|
|
|
|
|
|
(1) The Company believes that the presentation of EBITDA
is useful to the Company's investors because EBITDA is an
appropriate measure of evaluating the company's operating
performance and liquidity that reflects the resources available for
strategic opportunities including, among others, investing in the
business, strengthening the balance sheet, repurchasing the
Company's securities and making strategic acquisitions. In addition,
EBITDA is a widely used benchmark in the investment community.
|
|
|
|
|
|
|
|
Table 5 - Adjusting items
|
|
|
|
|
|
Nine months ended
|
|
(in millions of dollars)
|
September 30,
2015
|
|
September 30,
2014
|
|
Free cash flow, before acquisitions, reconciliation (2)
|
|
|
|
|
Net cash provided by operating activities
|
$
|
117.7
|
|
|
$
|
179.8
|
|
|
Capital expenditures for property and equipment
|
(28.1
|
)
|
|
(39.9
|
)
|
|
Proceeds from sale of property and equipment
|
1.7
|
|
|
2.3
|
|
|
Free cash flow, before acquisitions
|
$
|
91.3
|
|
|
$
|
142.2
|
|
|
|
|
|
|
|
(2) The Company believes free cash flow, before
acquisitions is an important measure because it encompasses both
profitability and capital management in evaluating results.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151022006728/en/
Copyright Business Wire 2015
