- Revenue of $172 million, an 11% sequential increase
- Orders of $203 million and book-to-bill ratio of
1.18
- Net income of $9 million and diluted EPS of $1.15
- Adjusted EBITDA of $15.5 million, a sequential increase of
$7 million, or 74%
Forum Energy Technologies, Inc. (NYSE: FET) today announced
second quarter 2022 revenue of $172 million, an increase of $17
million from the first quarter 2022. Net income for the quarter was
$9 million, or $1.15 per diluted share, compared to a net loss of
$9 million, or $1.62 per diluted share, for the first quarter 2022.
Excluding special items, adjusted net loss was $0.73 per diluted
share in the second quarter 2022 compared to an adjusted net loss
of $2.00 per diluted share in the first quarter 2022. Adjusted
EBITDA was $15.5 million in the second quarter 2022, an increase of
approximately $7 million from the first quarter 2022.
Special items in the second quarter 2022, on a pre-tax basis,
included $13 million of foreign exchange gains and $2 million of
recoveries on previously impaired inventory partially offset by $1
million of restructuring, transaction and other costs. See Tables
1-5 for a reconciliation of GAAP to non-GAAP financial
information.
Neal Lux, President and Chief Executive Officer, remarked,
“Incremental oil and natural gas supply is needed to meet the
world's current and growing energy demands. To address this
challenge, our customers need to invest in Forum's highly
engineered products and solutions to replace equipment that is
obsolete or degraded through elevated service intensity and high
utilization. This was evident in the second quarter as demand drove
revenue and adjusted EBITDA up quarter-over-quarter by 11% and 74%,
respectively, each exceeding the high-end of our guidance. Our
strong operating leverage and efficient utilization of existing
capacity was demonstrated by revenue and adjusted EBITDA growing by
25% and 138%, respectively, year-over-year.
“We forecast third quarter revenue to be between $170 and $180
million, and adjusted EBITDA of $16 to $19 million. On a full year
basis, our financial outlook has improved, and we now expect
adjusted EBITDA to be near the top end of our previous guidance
range of $50 to $60 million.
“Our employees remain committed to serving our customers,
operating safely, and delivering strong operating results. I am
very pleased with their performance.”
Segment Results
Drilling & Downhole segment revenue was $77 million, an
increase of 7% from the first quarter 2022, led by higher demand
for drilling capital equipment in connection with increasing
activity levels. Orders were $74 million, a 5% sequential increase
which included significant order growth in our drilling product
line. Segment adjusted EBITDA was $12 million, a $3 million
sequential increase resulting from operating leverage on the higher
revenue levels. The Drilling & Downhole segment designs and
manufactures capital equipment and consumable products for global
well construction, artificial lift and subsea markets.
Completions segment revenue was $66 million, a 26% sequential
increase led by higher sales of our stimulation and coiled tubing
products. Orders were $65 million, a sequential increase of $11
million, or 20%. Segment adjusted EBITDA was $9 million, a 78%
sequential increase from the higher revenue levels and favorable
product sales mix. The Completions segment designs and manufactures
products for the coiled tubing, wireline and stimulation
markets.
Production segment revenue was $30 million, a decrease of $2
million, or 5% from the first quarter 2022. Delayed inbound
shipments of valves from Asia as a result of COVID lockdowns
negatively impacted revenues. Second quarter bookings were $64
million, a 58% sequential increase, due to annual orders received
for well-site production equipment. Segment adjusted EBITDA was $1
million, an improvement of $1 million from the first quarter 2022.
The Production segment designs and manufactures land well site
production equipment, desalination process equipment, and a wide
range of valves for upstream, midstream and process industry
customers.
FET (Forum Energy Technologies) is a global company, serving the
oil, natural gas, industrial and renewable energy industries. FET
provides value added solutions that increase the safety and
efficiency of energy exploration and production. We are an
environmentally and socially responsible company headquartered in
Houston, TX with manufacturing, distribution, and service
facilities strategically located throughout the world. 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 natural 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, impacts associated with COVID-19, and other important
factors that could cause actual results to differ materially from
those projected as described in the company's filings with the U.S.
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.
Forum Energy Technologies,
Inc.
Condensed consolidated
statements of income (loss)
(Unaudited)
Three months ended
June 30,
March 31,
(in millions, except per share
information)
2022
2021
2022
Revenue
$
172.2
$
137.4
$
155.2
Cost of sales
123.6
105.2
116.6
Gross profit
48.6
32.2
38.6
Operating expenses
Selling, general and administrative
expenses
43.5
42.2
44.3
Gain on disposal of assets and other
(0.9
)
(0.4
)
—
Total operating expenses
42.6
41.8
44.3
Operating income (loss)
6.0
(9.6
)
(5.7
)
Other expense (income)
Interest expense
7.8
7.8
7.6
Loss on extinguishment of debt
—
4.2
—
Foreign exchange gains and other, net
(12.8
)
(1.0
)
(6.0
)
Total other (income) expense, net
(5.0
)
11.0
1.6
Income (loss) before income
taxes
11.0
(20.6
)
(7.3
)
Income tax expense
1.7
1.2
1.9
Net income (loss) (1)
$
9.3
$
(21.8
)
$
(9.2
)
Weighted average shares
outstanding
Basic
5.7
5.6
5.7
Diluted
10.5
5.6
5.7
Earnings (loss) per share
Basic
$
1.61
$
(3.87
)
$
(1.62
)
Diluted
$
1.15
$
(3.87
)
$
(1.62
)
(1) Refer to Table 1 for schedule of
adjusting items.
Forum Energy Technologies,
Inc.
Condensed consolidated
statements of income (loss)
(Unaudited)
Six months ended
June 30,
(in millions, except per share
information)
2022
2021
Revenue
$
327.4
$
251.9
Cost of sales
240.2
193.5
Gross profit
87.2
58.4
Operating expenses
Selling, general and administrative
expenses
87.8
83.7
Gain on disposal of assets and other
(0.9
)
(1.3
)
Total operating expenses
86.9
82.4
Operating income (loss)
0.3
(24.0
)
Other expense (income)
Interest expense
15.5
16.9
Foreign exchange losses (gains) and other,
net
(18.8
)
2.6
Loss on extinguishment of debt
—
5.1
Total other (income) expense, net
(3.3
)
24.6
Income (loss) before income
taxes
3.6
(48.6
)
Income tax expense
3.5
2.9
Net income (loss) (1)
$
0.1
$
(51.5
)
Weighted average shares
outstanding
Basic
5.7
5.6
Diluted
5.9
5.6
Earnings (loss) per share
Basic
$
0.01
$
(9.15
)
Diluted
$
0.01
$
(9.15
)
(1) Refer to Table 2 for schedule of
adjusting items.
Forum Energy Technologies,
Inc.
Condensed consolidated balance
sheets
(Unaudited)
June 30,
December 31,
(in millions of dollars)
2022
2021
Assets
Current assets
Cash and cash equivalents
$
26.9
$
46.9
Accounts receivable—trade, net
147.1
123.9
Inventories, net
271.2
241.7
Other current assets
40.0
34.2
Total current assets
485.2
446.7
Property and equipment, net of accumulated
depreciation
88.7
94.0
Operating lease assets
22.2
25.4
Intangible assets, net
203.8
217.4
Other long-term assets
7.6
7.8
Total assets
$
807.5
$
791.3
Liabilities and equity
Current liabilities
Current portion of long-term debt
$
0.7
$
0.9
Other current liabilities
183.6
174.8
Total current liabilities
184.3
175.7
Long-term debt, net of current portion
268.8
232.4
Other long-term liabilities
45.9
54.1
Total liabilities
499.0
462.2
Total equity
308.5
329.1
Total liabilities and equity
$
807.5
$
791.3
Forum Energy Technologies,
Inc.
Condensed consolidated cash
flow information
(Unaudited)
Six Months Ended June
30,
(in millions of dollars)
2022
2021
Cash flows from operating
activities
Net income (loss)
$
0.1
$
(51.5
)
Depreciation and amortization
19.1
22.0
Loss on extinguishment of debt
—
5.1
Other noncash items and changes in working
capital
(69.8
)
26.8
Net cash provided by (used in)
operating activities
(50.6
)
2.4
Cash flows from investing
activities
Capital expenditures for property and
equipment
(3.5
)
(0.7
)
Proceeds from sale of business, property
and equipment
2.6
2.1
Payments related to business acquisitions
and dispositions
(0.5
)
(1.3
)
Net cash provided by (used in)
investing activities
(1.4
)
0.1
Cash flows from financing
activities
Borrowings of debt
274.5
—
Repayments of debt
(241.5
)
(70.6
)
Repurchases of stock
(0.4
)
(0.2
)
Net cash provided by (used in)
financing activities
32.6
(70.8
)
Effect of exchange rate changes on
cash
(0.6
)
—
Net decrease in cash, cash equivalents
and restricted cash
$
(20.0
)
$
(68.3
)
Forum Energy Technologies,
Inc.
Supplemental schedule -
Segment information
(Unaudited)
As Reported
As Adjusted (3)
Three months ended
Three months ended
(in millions of dollars)
June 30, 2022
June 30, 2021
March 31, 2022
June 30, 2022
June 30, 2021
March 31, 2022
Revenue
Drilling & Downhole
$
76.5
$
61.6
$
71.3
$
76.5
$
61.6
$
71.3
Completions
66.1
46.5
52.5
66.1
46.5
52.5
Production
29.9
29.3
31.5
29.9
29.3
31.5
Eliminations
(0.3
)
—
(0.1
)
(0.3
)
—
(0.1
)
Total revenue
$
172.2
$
137.4
$
155.2
$
172.2
$
137.4
$
155.2
Operating income (loss)
Drilling & Downhole
$
8.5
$
2.7
$
6.0
$
8.9
$
3.3
$
5.6
Operating Margin %
11.1
%
4.4
%
8.4
%
11.6
%
5.4
%
7.9
%
Completions
3.6
(0.4
)
(0.7
)
3.1
0.5
(0.7
)
Operating Margin %
5.4
%
(0.9
)%
(1.3
)%
4.7
%
1.1
%
(1.3
)%
Production
(0.2
)
(4.0
)
(1.8
)
(0.2
)
(3.1
)
(1.5
)
Operating Margin %
(0.7
)%
(13.7
)%
(5.7
)%
(0.7
)%
(10.6
)%
(4.8
)%
Corporate
(6.8
)
(8.3
)
(9.2
)
(6.6
)
(6.5
)
(5.5
)
Total segment operating income
(loss)
5.1
(10.0
)
(5.7
)
5.2
(5.8
)
(2.1
)
Other items not in segment operating
income (loss) (1)
0.9
0.4
—
0.1
(0.1
)
0.1
Total operating income (loss)
$
6.0
$
(9.6
)
$
(5.7
)
$
5.3
$
(5.9
)
$
(2.0
)
Operating Margin %
3.5
%
(7.0
)%
(3.7
)%
3.1
%
(4.3
)%
(1.3
)%
EBITDA (2)
Drilling & Downhole
$
23.7
$
7.3
$
15.5
$
12.1
$
7.1
$
9.1
EBITDA Margin %
31.0
%
11.9
%
21.7
%
15.8
%
11.5
%
12.8
%
Completions
9.4
5.4
4.7
8.7
6.3
4.9
EBITDA Margin %
14.2
%
11.6
%
9.0
%
13.2
%
13.5
%
9.3
%
Production
1.5
(2.6
)
(1.0
)
0.6
(1.8
)
(0.6
)
EBITDA Margin %
5.0
%
(8.9
)%
(3.2
)%
2.0
%
(6.1
)%
(1.9
)%
Corporate
(6.3
)
(12.4
)
(9.3
)
(5.9
)
(5.1
)
(4.5
)
Total EBITDA
$
28.3
$
(2.3
)
$
9.9
$
15.5
$
6.5
$
8.9
EBITDA Margin %
16.4
%
(1.7
)%
6.4
%
9.0
%
4.7
%
5.7
%
(1) Includes gain/(loss) on disposal of
assets and other.
(2) 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.
(3) Refer to Table 1 for schedule of
adjusting items.
Forum Energy Technologies,
Inc.
Supplemental schedule -
Segment information
(Unaudited)
As Reported
As Adjusted (3)
Six months ended
Six months ended
(in millions of dollars)
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Revenue
Drilling & Downhole
$
147.8
$
110.2
$
147.8
$
110.2
Completions
118.6
84.4
118.6
84.4
Production
61.4
57.4
61.4
57.4
Eliminations
(0.4
)
(0.1
)
(0.4
)
(0.1
)
Total revenue
$
327.4
$
251.9
$
327.4
$
251.9
Operating income (loss)
Drilling & Downhole
$
14.5
$
(1.8
)
$
14.5
$
2.0
Operating Margin %
9.8
%
(1.6
)%
9.8
%
1.8
%
Completions
2.9
(0.3
)
2.4
(0.9
)
Operating Margin %
2.4
%
(0.4
)%
2.0
%
(1.1
)%
Production
(1.9
)
(7.9
)
(1.7
)
(6.1
)
Operating Margin %
(3.1
)%
(13.8
)%
(2.8
)%
(10.6
)%
Corporate
(16.1
)
(15.3
)
(12.1
)
(12.2
)
Total segment operating income
(loss)
(0.6
)
(25.3
)
3.1
(17.2
)
Other items not in segment operating
income (loss) (1)
0.9
1.3
0.2
0.1
Total operating income (loss)
$
0.3
$
(24.0
)
$
3.3
$
(17.1
)
Operating Margin %
0.1
%
(9.5
)%
1.0
%
(6.8
)%
EBITDA (2)
Drilling & Downhole
$
39.2
$
3.7
$
21.2
$
10.1
EBITDA Margin %
26.5
%
3.4
%
14.3
%
(3.6
)%
Completions
14.1
12.0
13.6
10.9
EBITDA Margin %
11.9
%
14.2
%
11.5
%
12.9
%
Production
0.5
(4.8
)
—
(3.2
)
EBITDA Margin %
0.8
%
(8.4
)%
—
%
(5.6
)%
Corporate
(15.6
)
(20.6
)
(10.4
)
(9.2
)
Total EBITDA
$
38.2
$
(9.7
)
$
24.4
$
8.6
EBITDA Margin %
11.7
%
(3.9
)%
7.5
%
3.4
%
(1) Includes gain/(loss) on disposal of
assets, and other.
(2) 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.
(3) Refer to Table 2 for schedule of
adjusting items.
Forum Energy Technologies,
Inc.
Supplemental schedule - Orders
information
(Unaudited)
Three months ended
(in millions of dollars)
June 30, 2022
June 30, 2021
March 31, 2022
Orders
Drilling & Downhole
$
74.4
$
80.5
$
70.9
Completions
64.7
47.4
53.7
Production
63.8
30.9
40.4
Total orders
$
202.9
$
158.8
$
165.0
Revenue
Drilling & Downhole
$
76.5
$
61.6
$
71.3
Completions
66.1
46.5
52.5
Production
29.9
29.3
31.5
Eliminations
(0.3
)
—
(0.1
)
Total revenue
$
172.2
$
137.4
$
155.2
Book to bill ratio (1)
Drilling & Downhole
0.97
1.31
0.99
Completions
0.98
1.02
1.02
Production
2.13
1.05
1.28
Total book to bill ratio
1.18
1.16
1.06
(1) The book-to-bill ratio is calculated
by dividing the dollar value of orders received in a given period
by the revenue earned in that same period. The company believes
that this ratio is useful to investors because it provides an
indication of whether the demand for our products, in the markets
in which the company operates, is strengthening or declining. A
ratio of greater than one is indicative of improving market demand,
while a ratio of less than one would suggest weakening demand. In
addition, the company believes the book-to-bill ratio provides more
meaningful insight into future revenues for our business than other
measures, such as order backlog, because the majority of the
company's products are activity based consumable items or shorter
cycle capital equipment, neither of which are typically ordered by
customers far in advance.
Forum Energy Technologies,
Inc.
Reconciliation of GAAP to
non-GAAP financial information
(Unaudited)
Table 1 - Adjusting
items
Three months ended
June 30, 2022
June 30, 2021
March 31, 2022
(in millions, except per share
information)
Operating income
EBITDA (1)
Net income (loss)
Operating loss
EBITDA (1)
Net loss
Operating loss
EBITDA (1)
Net loss
As reported
$
6.0
$
28.3
$
9.3
$
(9.6
)
$
(2.3
)
$
(21.8
)
$
(5.7
)
$
9.9
$
(9.2
)
% of revenue
3.5
%
16.4
%
(7.0
)%
(1.7
)%
(3.7
)%
6.4
%
Restructuring, transaction and other
costs
1.4
1.4
1.4
2.6
2.6
2.6
3.7
3.7
3.7
Inventory and other working capital
adjustments
(2.1
)
(2.1
)
(2.1
)
1.1
1.1
1.1
—
—
—
Loss on extinguishment of debt
—
—
—
—
4.2
4.2
—
—
—
Gain on foreign exchange, net (2)
—
(12.8
)
(12.8
)
—
(1.0
)
(1.0
)
—
(5.8
)
(5.8
)
Stock-based compensation expense
—
0.7
—
—
1.9
—
—
1.1
—
As adjusted (1)
$
5.3
$
15.5
$
(4.2
)
$
(5.9
)
$
6.5
$
(14.9
)
$
(2.0
)
$
8.9
$
(11.3
)
% of revenue
3.1
%
9.0
%
(4.3
)%
4.7
%
(1.3
)%
5.7
%
Diluted shares outstanding as reported
10.5
5.6
5.7
Diluted shares outstanding as adjusted
5.7
5.6
5.7
Diluted EPS - as reported
$
1.15
$
(3.87
)
$
(1.62
)
Diluted EPS - as adjusted
$
(0.73
)
$
(2.66
)
$
(2.00
)
(1) The company believes that the
presentation of EBITDA, adjusted EBITDA, adjusted operating loss,
adjusted net loss and adjusted diluted EPS are useful to the
company's investors because (i) each of these financial metrics are
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 and (ii) 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, these benchmarks are widely used 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 cash and receivables denominated 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 2 - Adjusting
items
Six months ended
June 30, 2022
June 30, 2021
(in millions, except per share
information)
Operating income
EBITDA (1)
Net income (loss)
Operating loss
EBITDA (1)
Net loss
As reported
$
0.3
$
38.2
$
0.1
$
(24.0
)
$
(9.7
)
$
(51.5
)
% of revenue
0.1
%
11.7
%
(9.5
)%
(3.9
)%
Restructuring, transaction and other
costs
5.1
5.1
5.1
5.2
5.2
5.2
Inventory and other working capital
adjustments
(2.1
)
(2.1
)
(2.1
)
1.7
1.7
1.7
Stock-based compensation expense
—
1.8
—
—
3.8
—
Loss on extinguishment of debt
—
—
—
—
5.1
5.1
Loss (gain) on foreign exchange, net
(2)
—
(18.6
)
(18.6
)
—
2.5
2.5
As adjusted (1)
$
3.3
$
24.4
$
(15.5
)
$
(17.1
)
$
8.6
$
(37.0
)
% of revenue
1.0
%
7.5
%
(6.8
)%
3.4
%
Diluted shares outstanding as reported
5.9
5.6
Diluted shares outstanding as adjusted
5.7
5.6
Diluted EPS - as reported
$
0.01
$
(9.15
)
Diluted EPS - as adjusted
$
(2.72
)
$
(6.61
)
(1) The company believes that the
presentation of EBITDA, adjusted EBITDA, adjusted operating loss,
adjusted net loss and adjusted diluted EPS are useful to the
company's investors because (i) each of these financial metrics are
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 and (ii) 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, these benchmarks are widely used 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 cash and receivables denominated 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)
June 30, 2022
June 30, 2021
March 31, 2022
EBITDA reconciliation (1)
Net income (loss)
$
9.3
$
(21.8
)
$
(9.2
)
Interest expense
7.8
7.8
7.6
Depreciation and amortization
9.5
10.5
9.6
Income tax expense
1.7
1.2
1.9
EBITDA
$
28.3
$
(2.3
)
$
9.9
(1) The company believes that the
presentation of EBITDA is useful to 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.
Forum Energy Technologies,
Inc.
Reconciliation of GAAP to
non-GAAP financial information
(Unaudited)
Table 4 - Adjusting
Items
Six months ended
(in millions of dollars)
June 30, 2022
June 30, 2021
EBITDA reconciliation (1)
Net income (loss)
$
0.1
$
(51.5
)
Interest expense
15.5
16.9
Depreciation and amortization
19.1
22.0
Income tax expense
3.5
2.9
EBITDA
$
38.2
$
(9.7
)
(1) The company believes that the
presentation of EBITDA is useful to 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.
Forum Energy Technologies,
Inc.
Reconciliation of GAAP to
non-GAAP financial information
(Unaudited)
Table 5 - Adjusting
items
Six months ended
(in millions of dollars)
June 30, 2022
June 30, 2021
Free cash flow, before acquisitions,
reconciliation (1)
Net cash provided by (used in) operating
activities
$
(50.6
)
$
2.4
Capital expenditures for property and
equipment
(3.5
)
(0.7
)
Proceeds from sale of property and
equipment
2.6
2.1
Free cash flow, before acquisitions
$
(51.5
)
$
3.8
(1) The company believes free cash flow,
before acquisitions is an important measure because it encompasses
both profitability and capital management in evaluating
results.
Forum Energy Technologies,
Inc.
Supplemental schedule -
Product line revenue
(Unaudited)
Three months ended
(in millions of dollars)
June 30, 2022
June 30, 2021
March 31, 2022
Revenue:
$
%
$
%
$
%
Drilling Technologies
$
33.6
19.5
%
$
27.7
20.1
%
$
29.2
18.8
%
Downhole Technologies
21.4
12.4
%
16.6
12.1
%
19.6
12.6
%
Subsea Technologies
21.5
12.5
%
17.3
12.6
%
22.5
14.5
%
Drilling & Downhole
76.5
44.4
%
61.6
44.8
%
71.3
45.9
%
Stimulation and Intervention
37.4
21.7
%
24.3
17.7
%
30.1
19.4
%
Coiled Tubing
28.7
16.7
%
22.2
16.2
%
22.4
14.4
%
Completions
66.1
38.4
%
46.5
33.9
%
52.5
33.8
%
Production Equipment
16.4
9.5
%
17.4
12.7
%
15.2
9.8
%
Valve Solutions (1)
13.5
7.9
%
11.9
8.6
%
16.3
10.5
%
Production (1)
29.9
17.4
%
29.3
21.3
%
31.5
20.3
%
Eliminations
(0.3
)
(0.2
)%
—
—
%
(0.1
)
—
%
Total Revenue
$
172.2
100.0
%
$
137.4
100.0
%
$
155.2
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220804005936/en/
Lyle Williams Executive Vice President and Chief Financial
Officer 713.351.7920 lyle.williams@f-e-t.com
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