Preliminary Full Year 2023 Results
- Revenue: $739 million, a 6% year-over-year increase
- Orders: $724 million and book-to-bill ratio of 98%
- Adjusted EBITDA: Between $67 and $69 million
- Results delayed for finalization of valuation allowance reserve
release, if any
- No meaningful impact to above results expected
First Quarter and Full Year 2024 Guidance
- First Quarter 2024 Revenue and Adjusted EBITDA: $200 to $220
million and $23 to $27 million
- 2024 Adjusted EBITDA and Free cash flow: $100 to $120 million
and $40 to $60 million
Forum Energy Technologies, Inc. (NYSE: FET) today announced that
it will delay the issuance of its fourth quarter and full year 2023
earnings release and investor conference call. Additional time is
required to quantify, if any, the impact to income tax and net
income from adjusting valuation allowance reserves in an
international jurisdiction. No meaningful impact to revenue,
adjusted EBITDA, or free cash flow is expected. FET expects to
issue its fourth quarter and full year 2023 results and host its
investor conference call around March 1, 2024.
Fourth quarter 2023 revenue was $185 million, a $6 million
increase from the third quarter. Adjusted EBITDA for the fourth
quarter 2023 is expected to be in the range of $15 to $17 million.
Free cash flow for the fourth quarter 2023 was $9 million.
We are forecasting 2024 adjusted EBITDA of $100 to $120 million
and free cash flow of $40 to $60 million. Overall, our forecast
assumes a flat global market during the year. We anticipate average
rig count to be down 5% in the U.S., up slightly in the
international markets, and flat in Canada. With the upcoming
commissioning of the Trans Mountain pipeline expansion, we expect
to see oil sands activity increase in the second half of the year.
For the first quarter, we forecast FET revenue and adjusted EBITDA
of $200 to $220 million and $23 to $27 million, respectively.
FET (Forum Energy Technologies) is a global manufacturing
company, serving the oil, natural gas, industrial and renewable
energy industries. With headquarters located in Houston, Texas, FET
provides value added solutions aimed at improving the safety,
efficiency, and environmental impact of our customers' operations.
For more information, please visit www.f-e-t.com.
Non-GAAP Financial Measures
The Company presents its financial results in accordance with
GAAP. However, management believes that non-GAAP measures are
useful tools for evaluating the Company's overall financial
performance. Not all companies define these measures in the same
way. In addition, these non-GAAP financial measures are not a
substitute for those prepared in accordance with GAAP and should,
therefore, be considered only as a supplement. Please see the
attached schedule for reconciliation between net cash provided by
operating activities and free cash flow, before acquisitions.
The unaudited financial information presented above for the
fourth quarter and full year 2023 reflects estimates based upon
preliminary information available to the Company as of the date
hereof, is not a comprehensive statement of the Company’s financial
results or position as of or for the quarter or year ended December
31, 2023, and has not been audited or reviewed by the Company’s
independent registered public accounting firm. The Company’s
consolidated financial statements and operating data as of and for
the quarter and year ended December 31, 2023 may vary from the
preliminary financial information provided herein due to the
completion of the Company’s financial closing procedures, final
adjustments and other developments that may arise between now and
the time the financial results for the fourth quarter and full year
2024 are finalized. Such variation may be material; accordingly,
investors should not place undue reliance on these preliminary
estimates.
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, 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.
Free cash flow
(Unaudited)
Adjusting items
Three months ended
(in millions of dollars)
December 31,
2023
Free cash flow, before acquisitions,
reconciliation (1)
Net cash provided by (used in) operating
activities
$
11.3
Capital expenditures for property and
equipment
(2.4
)
Free cash flow, before
acquisitions
$
8.9
(1) 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: https://www.businesswire.com/news/home/20240219602502/en/
Rob Kukla Director of Investor Relations 281.994.3763
rob.kukla@f-e-t.com
Forum Energy Technologies (NYSE:FET)
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