Forum Energy Technologies Announces Fourth Quarter and Full Year 2024 Results and Outlook; Delivers $92 Million of Operating Cash Flow
Full Year 2024 Highlights and 2025 Guidance
-
Revenue:
$816 million 10% year-over-year increase -
Orders:
$780 million 96% -
Net loss:
$135 million -
Adjusted EBITDA:
$100 million 49% increase from 2023 -
Operating cash flow and free cash flow:
$92 million $105 million -
Shareholder return program:
$2 million -
2025 adjusted EBITDA guidance:
$85 $105 million
Neal Lux, President and Chief Executive Officer, remarked, “2024 was a fantastic year for FET. We began by closing the Variperm acquisition, which contributed meaningfully to our financial results. Consolidated revenue was up
“We ended the year refinancing our long-term debt, solidifying our balance sheet, and providing flexibility to return capital to shareholders. In December, we announced a
“During 2024, we implemented our “Beat the Market” strategy to grow profitable market share by focusing on niche markets, delivering innovative solutions, and leveraging our global manufacturing footprint. This strategy, combined with the Variperm acquisition, led to
“In the near term, commodity prices remain range bound due to excess production capacity and slower demand growth. We expect global drilling and completion activity to be down
_____________________________ |
1 See Tables 1-6 for a reconciliation of GAAP to non-GAAP financial information, including a breakdown of adjusting items. |
Segment Results (unless otherwise noted, comparisons are fourth quarter 2024 versus third quarter 2024)
Drilling and Completions segment revenue was
Artificial Lift and Downhole segment revenue was
FET® is a global manufacturing company, serving the oil, natural gas, industrial and renewable energy industries. With headquarters located in
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 schedules for reconciliations between GAAP and the non-GAAP financial measures used in this press release.
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 outlook, future financial position, liquidity and capital resources, operations, performance, cash flow, acquisitions, returns, capital expenditure budgets, new product development activities, strategic investments, share repurchases, 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
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 net income (loss) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three months ended |
||||||||||
|
|
December 31, |
|
September 30, |
||||||||
(in millions, except per share information) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Revenue |
|
$ |
201.0 |
|
|
$ |
185.2 |
|
|
$ |
207.8 |
|
Cost of sales |
|
|
138.5 |
|
|
|
135.5 |
|
|
|
142.1 |
|
Gross profit |
|
|
62.5 |
|
|
|
49.7 |
|
|
|
65.7 |
|
Operating expenses |
|
|
|
|
|
|
||||||
Selling, general and administrative expenses |
|
|
54.6 |
|
|
|
45.0 |
|
|
|
56.3 |
|
Transaction expenses |
|
|
— |
|
|
|
2.9 |
|
|
|
0.6 |
|
Impairment of intangible assets |
|
|
119.1 |
|
|
|
— |
|
|
|
— |
|
Gain on sale-leaseback transactions and other |
|
|
(4.4 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Total operating expenses |
|
|
169.3 |
|
|
|
47.9 |
|
|
|
56.8 |
|
Operating income (loss) |
|
|
(106.8 |
) |
|
|
1.8 |
|
|
|
8.9 |
|
Other expense (income) |
|
|
|
|
|
|
||||||
Interest expense |
|
|
6.4 |
|
|
|
4.6 |
|
|
|
7.7 |
|
Loss on extinguishment of debt |
|
|
0.6 |
|
|
|
— |
|
|
|
1.8 |
|
Foreign exchange losses (gains) and other, net |
|
|
(6.6 |
) |
|
|
9.1 |
|
|
|
9.6 |
|
Total other expense |
|
|
0.4 |
|
|
|
13.7 |
|
|
|
19.1 |
|
Loss before income taxes |
|
|
(107.2 |
) |
|
|
(11.9 |
) |
|
|
(10.2 |
) |
Income tax expense (benefit) |
|
|
(3.7 |
) |
|
|
4.9 |
|
|
|
4.6 |
|
Net income (loss) (1) |
|
$ |
(103.5 |
) |
|
$ |
(16.8 |
) |
|
$ |
(14.8 |
) |
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding |
|
|
|
|
|
|
||||||
Basic |
|
|
12.3 |
|
|
|
10.2 |
|
|
|
12.3 |
|
Diluted |
|
|
12.3 |
|
|
|
10.2 |
|
|
|
12.3 |
|
|
|
|
|
|
|
|
||||||
Loss per share |
|
|
|
|
|
|
||||||
Basic |
|
$ |
(8.39 |
) |
|
$ |
(1.64 |
) |
|
$ |
(1.20 |
) |
Diluted |
|
$ |
(8.39 |
) |
|
$ |
(1.64 |
) |
|
$ |
(1.20 |
) |
|
|
|
|
|
|
|
||||||
(1) Refer to Table 1 for schedule of adjusting items. |
||||||||||||
Forum Energy Technologies, Inc. |
||||||||
Condensed consolidated statements of net income (loss) |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
|
|
Year ended |
||||||
|
|
December 31, |
||||||
(in millions, except per share information) |
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
816.4 |
|
|
$ |
738.9 |
|
Cost of sales |
|
|
561.4 |
|
|
|
534.7 |
|
Gross profit |
|
|
255.0 |
|
|
|
204.2 |
|
Operating expenses |
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
219.3 |
|
|
|
180.4 |
|
Transaction expenses |
|
|
7.7 |
|
|
|
2.9 |
|
Impairment of intangible assets |
|
|
119.1 |
|
|
|
— |
|
Loss (gain) on sale-leaseback transactions and other |
|
|
(4.3 |
) |
|
|
0.2 |
|
Total operating expenses |
|
|
341.8 |
|
|
|
183.5 |
|
Operating income (loss) |
|
|
(86.8 |
) |
|
|
20.7 |
|
Other expense |
|
|
|
|
||||
Interest expense |
|
|
31.5 |
|
|
|
18.3 |
|
Loss on extinguishment of debt |
|
|
2.9 |
|
|
|
— |
|
Foreign exchange losses and other, net |
|
|
7.2 |
|
|
|
10.2 |
|
Total other expense |
|
|
41.6 |
|
|
|
28.5 |
|
Loss before income taxes |
|
|
(128.4 |
) |
|
|
(7.8 |
) |
Income tax expense |
|
|
6.9 |
|
|
|
11.1 |
|
Net income (loss) (1) |
|
$ |
(135.3 |
) |
|
$ |
(18.9 |
) |
|
|
|
|
|
||||
Weighted average shares outstanding |
|
|
|
|
||||
Basic |
|
|
12.3 |
|
|
|
10.2 |
|
Diluted |
|
|
12.3 |
|
|
|
10.2 |
|
|
|
|
|
|
||||
Loss per share |
|
|
|
|
||||
Basic |
|
$ |
(11.00 |
) |
|
$ |
(1.85 |
) |
Diluted |
|
$ |
(11.00 |
) |
|
$ |
(1.85 |
) |
|
|
|
|
|
||||
(1) Refer to Table 2 for schedule of adjusting items. |
||||||||
Forum Energy Technologies, Inc. |
||||||
Condensed consolidated balance sheets |
||||||
(Unaudited) |
||||||
|
|
|
|
|
||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
||
Assets |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
44.7 |
|
$ |
46.2 |
Accounts receivable—trade, net |
|
|
153.9 |
|
|
146.7 |
Inventories, net |
|
|
265.5 |
|
|
299.6 |
Other current assets |
|
|
31.5 |
|
|
37.1 |
Total current assets |
|
|
495.6 |
|
|
529.6 |
Property and equipment, net of accumulated depreciation |
|
|
63.4 |
|
|
61.4 |
Operating lease assets |
|
|
70.4 |
|
|
55.4 |
Goodwill and intangible assets, net |
|
|
170.9 |
|
|
168.0 |
Other long-term assets |
|
|
15.7 |
|
|
6.7 |
Total assets |
|
$ |
816.0 |
|
$ |
821.1 |
Liabilities and equity |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Current portion of long-term debt |
|
$ |
1.9 |
|
$ |
1.2 |
Other current liabilities |
|
|
200.0 |
|
|
203.1 |
Total current liabilities |
|
|
201.9 |
|
|
204.3 |
Long-term debt, net of current portion |
|
|
186.5 |
|
|
129.6 |
Other long-term liabilities |
|
|
107.8 |
|
|
74.5 |
Total liabilities |
|
|
496.2 |
|
|
408.4 |
Total equity |
|
|
319.8 |
|
|
412.7 |
Total liabilities and equity |
|
$ |
816.0 |
|
$ |
821.1 |
Forum Energy Technologies, Inc. |
||||||||
Condensed consolidated cash flow information |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Year ended |
||||||
|
|
December 31, |
||||||
(in millions of dollars) |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
|
||||
Net loss |
|
$ |
(135.3 |
) |
|
$ |
(18.9 |
) |
Depreciation and amortization |
|
|
53.7 |
|
|
|
34.7 |
|
Impairment of intangible assets |
|
|
119.1 |
|
|
|
— |
|
Inventory write down |
|
|
2.7 |
|
|
|
2.8 |
|
Loss on extinguishment of debt |
|
|
2.9 |
|
|
|
— |
|
Gain on sale-leaseback transactions |
|
|
(4.9 |
) |
|
|
— |
|
Other noncash items and changes in working capital |
|
|
54.0 |
|
|
|
(10.4 |
) |
Net cash provided by operating activities |
|
|
92.2 |
|
|
|
8.2 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures for property and equipment |
|
|
(8.1 |
) |
|
|
(7.9 |
) |
Proceeds from sale of property and equipment |
|
|
0.7 |
|
|
|
1.3 |
|
Acquisition of businesses, net of cash acquired |
|
|
(150.4 |
) |
|
|
— |
|
Proceeds from sale-leaseback transactions |
|
|
20.3 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(137.5 |
) |
|
|
(6.6 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Borrowings of debt |
|
|
874.3 |
|
|
|
451.7 |
|
Repayments of debt |
|
|
(819.5 |
) |
|
|
(453.0 |
) |
Repurchases of stock |
|
|
— |
|
|
|
(3.5 |
) |
Payments of withheld taxes on stock-based compensation plans |
|
|
(1.1 |
) |
|
|
(2.5 |
) |
Deferred financing costs |
|
|
(8.5 |
) |
|
|
(0.3 |
) |
Net cash provided by (used in) financing activities |
|
|
45.2 |
|
|
|
(7.6 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
|
(1.4 |
) |
|
|
1.1 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
$ |
(1.5 |
) |
|
$ |
(4.9 |
) |
Forum Energy Technologies, Inc. |
||||||||||||||||||||||||
Supplemental schedule - Segment information |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
|
|
As Reported |
|
As Adjusted (3) |
||||||||||||||||||||
|
|
Three months ended |
|
Three months ended |
||||||||||||||||||||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
September 30,
|
||||||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling and Completions |
|
$ |
111.1 |
|
|
$ |
126.6 |
|
|
$ |
123.6 |
|
|
$ |
111.1 |
|
|
$ |
126.6 |
|
|
$ |
123.6 |
|
Artificial Lift and Downhole |
|
|
89.9 |
|
|
|
58.6 |
|
|
|
84.2 |
|
|
|
89.9 |
|
|
|
58.6 |
|
|
|
84.2 |
|
Eliminations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total revenue |
|
$ |
201.0 |
|
|
$ |
185.2 |
|
|
$ |
207.8 |
|
|
$ |
201.0 |
|
|
$ |
185.2 |
|
|
$ |
207.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling and Completions |
|
$ |
3.3 |
|
|
$ |
4.0 |
|
|
$ |
7.0 |
|
|
$ |
3.8 |
|
|
$ |
4.7 |
|
|
$ |
7.3 |
|
Operating margin % |
|
|
3.0 |
% |
|
|
3.2 |
% |
|
|
5.7 |
% |
|
|
3.4 |
% |
|
|
3.7 |
% |
|
|
5.9 |
% |
Artificial Lift and Downhole |
|
|
12.9 |
|
|
|
7.4 |
|
|
|
10.8 |
|
|
|
13.1 |
|
|
|
7.4 |
|
|
|
10.8 |
|
Operating margin % |
|
|
14.3 |
% |
|
|
12.6 |
% |
|
|
12.8 |
% |
|
|
14.6 |
% |
|
|
12.6 |
% |
|
|
12.8 |
% |
Corporate |
|
|
(8.4 |
) |
|
|
(6.7 |
) |
|
|
(8.4 |
) |
|
|
(8.5 |
) |
|
|
(6.7 |
) |
|
|
(8.3 |
) |
Total segment operating income (loss) |
|
|
7.8 |
|
|
|
4.7 |
|
|
|
9.4 |
|
|
|
8.4 |
|
|
|
5.4 |
|
|
|
9.8 |
|
Other items not in segment operating income (loss) (1) |
|
|
(114.6 |
) |
|
|
(2.9 |
) |
|
|
(0.5 |
) |
|
|
(0.3 |
) |
|
|
— |
|
|
|
— |
|
Total operating income (loss) |
|
$ |
(106.8 |
) |
|
$ |
1.8 |
|
|
$ |
8.9 |
|
|
$ |
8.1 |
|
|
$ |
5.4 |
|
|
$ |
9.8 |
|
Operating margin % |
|
|
(53.1 |
)% |
|
|
1.0 |
% |
|
|
4.3 |
% |
|
|
4.0 |
% |
|
|
2.9 |
% |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling and Completions |
|
$ |
(106.7 |
) |
|
$ |
3.8 |
|
|
$ |
4.5 |
|
|
$ |
9.5 |
|
|
$ |
12.1 |
|
|
$ |
14.5 |
|
EBITDA margin % |
|
|
(96.0 |
)% |
|
|
3.0 |
% |
|
|
3.6 |
% |
|
|
8.6 |
% |
|
|
9.6 |
% |
|
|
11.7 |
% |
Artificial Lift and Downhole |
|
|
18.8 |
|
|
|
8.5 |
|
|
|
17.2 |
|
|
|
19.3 |
|
|
|
8.7 |
|
|
|
17.4 |
|
EBITDA margin % |
|
|
20.9 |
% |
|
|
14.5 |
% |
|
|
20.4 |
% |
|
|
21.5 |
% |
|
|
14.8 |
% |
|
|
20.7 |
% |
Corporate |
|
|
(0.8 |
) |
|
|
(10.9 |
) |
|
|
(10.6 |
) |
|
|
(6.6 |
) |
|
|
(5.4 |
) |
|
|
(6.1 |
) |
Total EBITDA |
|
$ |
(88.7 |
) |
|
$ |
1.4 |
|
|
$ |
11.1 |
|
|
$ |
22.2 |
|
|
$ |
15.4 |
|
|
$ |
25.8 |
|
EBITDA margin % |
|
|
(44.1 |
)% |
|
|
0.8 |
% |
|
|
5.3 |
% |
|
|
11.0 |
% |
|
|
8.3 |
% |
|
|
12.4 |
% |
(1) Includes transaction expenses, gain on sale-leaseback transaction and 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 for 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) |
||||||||||||
|
|
Year ended |
|
Year ended |
||||||||||||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||
Revenue |
|
|
|
|
|
|
|
|
||||||||
Drilling and Completions |
|
$ |
470.8 |
|
|
$ |
502.6 |
|
|
$ |
470.8 |
|
|
$ |
502.6 |
|
Artificial Lift and Downhole |
|
|
345.7 |
|
|
|
236.3 |
|
|
|
345.7 |
|
|
|
236.3 |
|
Eliminations |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Total revenue |
|
$ |
816.4 |
|
|
$ |
738.9 |
|
|
$ |
816.4 |
|
|
$ |
738.9 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
||||||||
Drilling and Completions |
|
$ |
17.8 |
|
|
$ |
19.4 |
|
|
$ |
20.5 |
|
|
$ |
20.9 |
|
Operating margin % |
|
|
3.8 |
% |
|
|
3.9 |
% |
|
|
4.4 |
% |
|
|
4.2 |
% |
Artificial Lift and Downhole |
|
|
48.9 |
|
|
|
31.6 |
|
|
|
49.1 |
|
|
|
32.1 |
|
Operating margin % |
|
|
14.1 |
% |
|
|
13.4 |
% |
|
|
14.2 |
% |
|
|
13.6 |
% |
Corporate |
|
|
(31.0 |
) |
|
|
(27.2 |
) |
|
|
(30.5 |
) |
|
|
(26.4 |
) |
Total segment operating income (loss) |
|
|
35.7 |
|
|
|
23.8 |
|
|
|
39.1 |
|
|
|
26.6 |
|
Other items not in segment operating income (loss) (1) |
|
|
(122.5 |
) |
|
|
(3.1 |
) |
|
|
(0.4 |
) |
|
|
0.6 |
|
Total operating income (loss) |
|
$ |
(86.8 |
) |
|
$ |
20.7 |
|
|
$ |
38.7 |
|
|
$ |
27.2 |
|
Operating margin % |
|
|
(10.6 |
)% |
|
|
2.8 |
% |
|
|
4.7 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
EBITDA (2) |
|
|
|
|
|
|
|
|
||||||||
Drilling and Completions |
|
$ |
(84.6 |
) |
|
$ |
40.1 |
|
|
$ |
49.2 |
|
|
$ |
50.9 |
|
EBITDA margin % |
|
|
(18.0 |
)% |
|
|
8.0 |
% |
|
|
10.5 |
% |
|
|
10.1 |
% |
Artificial Lift and Downhole |
|
|
73.0 |
|
|
|
36.2 |
|
|
|
74.4 |
|
|
|
37.6 |
|
EBITDA margin % |
|
|
21.1 |
% |
|
|
15.3 |
% |
|
|
21.5 |
% |
|
|
15.9 |
% |
Corporate |
|
|
(31.6 |
) |
|
|
(31.1 |
) |
|
|
(23.6 |
) |
|
|
(21.4 |
) |
Total EBITDA |
|
$ |
(43.2 |
) |
|
$ |
45.2 |
|
|
$ |
100.0 |
|
|
$ |
67.1 |
|
EBITDA margin % |
|
|
(5.3 |
)% |
|
|
6.1 |
% |
|
|
12.2 |
% |
|
|
9.1 |
% |
(1) Includes transaction expenses, gain on sale-leaseback transaction and 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 for 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) |
|
December 31,
|
|
December 31,
|
|
September 30,
|
|||
Orders |
|
|
|
|
|
|
|||
Drilling and Completions |
|
$ |
103.0 |
|
$ |
113.8 |
|
$ |
129.5 |
Artificial Lift and Downhole |
|
|
87.0 |
|
|
46.5 |
|
|
76.3 |
Total orders |
|
$ |
190.0 |
|
$ |
160.3 |
|
$ |
205.8 |
|
|
|
|
|
|
|
|||
Revenue |
|
|
|
|
|
|
|||
Drilling and Completions |
|
$ |
111.1 |
|
$ |
126.6 |
|
$ |
123.6 |
Artificial Lift and Downhole |
|
|
89.9 |
|
|
58.6 |
|
|
84.2 |
Total revenue |
|
$ |
201.0 |
|
$ |
185.2 |
|
$ |
207.8 |
|
|
|
|
|
|
|
|||
Book to bill ratio (1) |
|
|
|
|
|
|
|||
Drilling and Completions |
|
|
0.93 |
|
|
0.90 |
|
|
1.05 |
Artificial Lift and Downhole |
|
|
0.97 |
|
|
0.79 |
|
|
0.91 |
Total book to bill ratio |
|
|
0.95 |
|
|
0.87 |
|
|
0.99 |
(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 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 |
||||||||||||||||||||||||||||||||||
|
December 31, 2024 |
|
December 31, 2023 |
|
September 30, 2024 |
||||||||||||||||||||||||||||||
(in millions, except per share information) |
Operating income (loss) |
|
EBITDA (1) |
|
Net income (loss) |
|
Operating income (loss) |
|
EBITDA (1) |
|
Net income (loss) |
|
Operating income (loss) |
|
EBITDA (1) |
|
Net income (loss) |
||||||||||||||||||
As reported |
$ |
(106.8 |
) |
|
$ |
(88.7 |
) |
|
$ |
(103.5 |
) |
|
$ |
1.8 |
|
|
$ |
1.4 |
|
|
$ |
(16.8 |
) |
|
$ |
8.9 |
|
|
$ |
11.1 |
|
|
$ |
(14.8 |
) |
% of revenue |
|
(53.1 |
)% |
|
|
(44.1 |
)% |
|
|
|
|
1.0 |
% |
|
|
0.8 |
% |
|
|
|
|
4.3 |
% |
|
|
5.3 |
% |
|
|
||||||
Restructuring and other costs |
|
0.9 |
|
|
|
0.9 |
|
|
|
0.9 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
Transaction expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
0.6 |
|
Inventory and other working capital adjustments |
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment of intangible assets |
|
119.1 |
|
|
|
119.1 |
|
|
|
119.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation expense |
|
— |
|
|
|
2.0 |
|
|
|
— |
|
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
— |
|
|
|
2.2 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.8 |
|
|
|
1.8 |
|
Loss (gain) on foreign exchange, net (2) |
|
— |
|
|
|
(6.6 |
) |
|
|
(6.6 |
) |
|
|
— |
|
|
|
9.2 |
|
|
|
9.2 |
|
|
|
— |
|
|
|
9.8 |
|
|
|
9.8 |
|
Gain on sale-leaseback transactions |
|
(4.9 |
) |
|
|
(4.9 |
) |
|
|
(4.9 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Release of valuation allowance on deferred tax assets |
|
— |
|
|
|
— |
|
|
|
(11.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
As adjusted(1) |
$ |
8.1 |
|
|
$ |
22.2 |
|
|
$ |
(5.9 |
) |
|
$ |
5.4 |
|
|
$ |
15.4 |
|
|
$ |
(4.0 |
) |
|
$ |
9.8 |
|
|
$ |
25.8 |
|
|
$ |
(2.3 |
) |
% of revenue |
|
4.0 |
% |
|
|
11.0 |
% |
|
|
|
|
2.9 |
% |
|
|
8.3 |
% |
|
|
|
|
4.7 |
% |
|
|
12.4 |
% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted shares outstanding as reported |
|
|
|
|
|
12.3 |
|
|
|
|
|
|
|
10.2 |
|
|
|
|
|
|
|
12.3 |
|
||||||||||||
Diluted shares outstanding as adjusted |
|
|
|
|
|
12.3 |
|
|
|
|
|
|
|
10.2 |
|
|
|
|
|
|
|
12.3 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted EPS - as reported |
|
|
|
|
$ |
(8.39 |
) |
|
|
|
|
|
$ |
(1.64 |
) |
|
|
|
|
|
$ |
(1.20 |
) |
||||||||||||
Diluted EPS - as adjusted |
|
|
|
|
$ |
(0.48 |
) |
|
|
|
|
|
$ |
(0.39 |
) |
|
|
|
|
|
$ |
(0.19 |
) |
||||||||||||
(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 |
Forum Energy Technologies, Inc. |
|||||||||||||||||||||||
Reconciliation of GAAP to non-GAAP financial information |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
Table 2 - Adjusting items |
|||||||||||||||||||||||
|
|
||||||||||||||||||||||
|
Year ended |
||||||||||||||||||||||
|
December 31, 2024 |
|
December 31, 2023 |
||||||||||||||||||||
(in millions, except per share information) |
Operating (income) loss |
|
EBITDA (1) |
|
Net income (loss) |
|
Operating (income) loss |
|
EBITDA (1) |
|
Net income (loss) |
||||||||||||
As reported |
$ |
(86.8 |
) |
|
$ |
(43.2 |
) |
|
$ |
(135.3 |
) |
|
$ |
20.7 |
|
|
$ |
45.2 |
|
|
$ |
(18.9 |
) |
% of revenue |
|
(10.6 |
)% |
|
|
(5.3 |
)% |
|
|
|
|
2.8 |
% |
|
|
6.1 |
% |
|
|
||||
Restructuring and other costs |
|
3.8 |
|
|
|
3.8 |
|
|
|
3.8 |
|
|
|
3.1 |
|
|
|
3.1 |
|
|
|
3.1 |
|
Transaction expenses |
|
7.7 |
|
|
|
7.7 |
|
|
|
7.7 |
|
|
|
3.9 |
|
|
|
3.9 |
|
|
|
3.9 |
|
Inventory and other working capital adjustments |
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
Impairment of intangible assets |
|
119.1 |
|
|
|
119.1 |
|
|
|
119.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation expense |
|
— |
|
|
|
7.2 |
|
|
|
— |
|
|
|
— |
|
|
|
4.6 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on foreign exchange, net (2) |
|
— |
|
|
|
7.6 |
|
|
|
7.6 |
|
|
|
— |
|
|
|
10.8 |
|
|
|
10.8 |
|
Gain on sale-leaseback transactions |
|
(4.9 |
) |
|
|
(4.9 |
) |
|
|
(4.9 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Release of valuation allowance on deferred tax assets |
|
— |
|
|
|
— |
|
|
|
(11.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
As adjusted (1) |
$ |
38.7 |
|
|
$ |
100.0 |
|
|
$ |
(10.6 |
) |
|
$ |
27.2 |
|
|
$ |
67.1 |
|
|
$ |
(1.6 |
) |
% of revenue |
|
4.7 |
% |
|
|
12.2 |
% |
|
|
|
|
3.7 |
% |
|
|
9.1 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted shares outstanding as reported |
|
|
|
|
|
12.3 |
|
|
|
|
|
|
|
10.2 |
|
||||||||
Diluted shares outstanding as adjusted |
|
|
|
|
|
12.3 |
|
|
|
|
|
|
|
10.2 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted EPS - as reported |
|
|
|
|
$ |
(11.00 |
) |
|
|
|
|
|
$ |
(1.85 |
) |
||||||||
Diluted EPS - as adjusted |
|
|
|
|
$ |
(0.86 |
) |
|
|
|
|
|
$ |
(0.16 |
) |
||||||||
(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 |
Forum Energy Technologies, Inc. |
||||||||||||
Reconciliation of GAAP to non-GAAP financial information |
||||||||||||
(Unaudited) |
||||||||||||
Table 3 - Adjusting Items |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three months ended |
||||||||||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
|
September 30,
|
||||||
EBITDA reconciliation (1) |
|
|
|
|
|
|
||||||
Net income (loss) |
|
$ |
(103.5 |
) |
|
$ |
(16.8 |
) |
|
$ |
(14.8 |
) |
Interest expense |
|
|
6.4 |
|
|
|
4.6 |
|
|
|
7.7 |
|
Depreciation and amortization |
|
|
12.1 |
|
|
|
8.7 |
|
|
|
13.6 |
|
Income tax expense (benefit) |
|
|
(3.7 |
) |
|
|
4.9 |
|
|
|
4.6 |
|
EBITDA |
|
$ |
(88.7 |
) |
|
$ |
1.4 |
|
|
$ |
11.1 |
|
(1) The Company believes adjusted EBITDA is useful to investors because it is an appropriate measure of evaluating operating performance and liquidity. It 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, adjusted 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 |
||||||||
|
|
Year ended |
||||||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
||||
EBITDA reconciliation (1) |
|
|
|
|
||||
Net income (loss) |
|
$ |
(135.3 |
) |
|
$ |
(18.9 |
) |
Interest expense |
|
|
31.5 |
|
|
|
18.3 |
|
Depreciation and amortization |
|
|
53.7 |
|
|
|
34.7 |
|
Income tax expense |
|
|
6.9 |
|
|
|
11.1 |
|
EBITDA |
|
$ |
(43.2 |
) |
|
$ |
45.2 |
|
(1) The Company believes adjusted EBITDA is useful to investors because it is an appropriate measure of evaluating operating performance and liquidity. It 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, adjusted EBITDA is a widely used benchmark in the investment community. |
Forum Energy Technologies, Inc. |
||||||||||||
Free cash flow |
||||||||||||
(Unaudited) |
||||||||||||
Table 5 - Adjusting items |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three months ended |
||||||||||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
|
September 30,
|
||||||
Free cash flow, before acquisitions, reconciliation (1) |
|
|
|
|
|
|
||||||
Net cash provided by operating activities |
|
$ |
38.5 |
|
|
$ |
11.3 |
|
|
$ |
25.6 |
|
Capital expenditures for property and equipment |
|
|
(2.4 |
) |
|
|
(2.4 |
) |
|
|
(1.3 |
) |
Proceeds from sale of property and equipment |
|
|
0.5 |
|
|
|
— |
|
|
|
0.2 |
|
Proceeds from sale-leaseback transactions |
|
|
20.3 |
|
|
|
— |
|
|
|
— |
|
Free cash flow, before acquisitions |
|
$ |
56.9 |
|
|
$ |
8.9 |
|
|
$ |
24.5 |
|
(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. |
||||||||
Free cash flow |
||||||||
(Unaudited) |
||||||||
Table 6 - Adjusting items |
||||||||
|
|
|
|
|
||||
|
|
Year ended |
||||||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
||||
Free cash flow, before acquisitions, reconciliation (1) |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
92.2 |
|
|
$ |
8.2 |
|
Capital expenditures for property and equipment |
|
|
(8.1 |
) |
|
|
(7.9 |
) |
Proceeds from sale of property and equipment |
|
|
0.7 |
|
|
|
1.3 |
|
Proceeds from sale-leaseback transactions |
|
|
20.3 |
|
|
|
— |
|
Free cash flow, before acquisitions |
|
$ |
105.1 |
|
|
$ |
1.6 |
|
(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) |
|
December 31,
|
|
December 31,
|
|
September 30,
|
|||||||||
Revenue |
|
$ |
% |
|
$ |
% |
|
$ |
% |
||||||
Drilling |
|
$ |
35.5 |
17.6 |
% |
|
$ |
41.6 |
22.5 |
% |
|
$ |
35.8 |
17.2 |
% |
Subsea |
|
|
18.6 |
9.3 |
% |
|
|
27.6 |
14.9 |
% |
|
|
20.9 |
10.1 |
% |
Stimulation and Intervention |
|
|
31.1 |
15.5 |
% |
|
|
32.1 |
17.3 |
% |
|
|
38.0 |
18.3 |
% |
Coiled Tubing |
|
|
25.9 |
12.9 |
% |
|
|
25.3 |
13.7 |
% |
|
|
28.9 |
13.9 |
% |
Drilling and Completions |
|
|
111.1 |
55.3 |
% |
|
|
126.6 |
68.4 |
% |
|
|
123.6 |
59.5 |
% |
|
|
|
|
|
|
|
|
|
|
||||||
Downhole |
|
|
51.5 |
25.6 |
% |
|
|
21.7 |
11.7 |
% |
|
|
50.6 |
24.4 |
% |
Production Equipment |
|
|
21.7 |
10.8 |
% |
|
|
22.7 |
12.3 |
% |
|
|
18.0 |
8.7 |
% |
Valve Solutions |
|
|
16.7 |
8.3 |
% |
|
|
14.2 |
7.6 |
% |
|
|
15.6 |
7.4 |
% |
Artificial Lift and Downhole |
|
|
89.9 |
44.7 |
% |
|
|
58.6 |
31.6 |
% |
|
|
84.2 |
40.5 |
% |
Eliminations |
|
|
— |
— |
% |
|
|
— |
— |
% |
|
|
— |
— |
% |
Total revenue |
|
$ |
201.0 |
100.0 |
% |
|
$ |
185.2 |
100.0 |
% |
|
$ |
207.8 |
100.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220656113/en/
Rob Kukla
Director of Investor Relations
281.994.3763
rob.kukla@f-e-t.com
Source: Forum Energy Technologies, Inc.
