Forum Energy Technologies Announces Fourth Quarter and Full Year 2023 Results and Outlook
- Revenue for 2023 increased by 6% to $739 million compared to 2022.
- Net loss for 2023 was $19 million, with a diluted EPS of $1.85.
- Adjusted EBITDA for 2023 was $67 million, a 14% increase from 2022.
- Fourth quarter 2023 revenue was $185 million, with a net loss of $17 million.
- FET expects an adjusted EBITDA of $100 to $120 million in 2024.
- The Variperm acquisition is projected to drive long-term growth for FET.
- Net loss of $19 million in 2023.
- Decrease in orders for the Completions segment in the fourth quarter.
- Lower sales volume in the Downhole Technologies product line.
- A 40% decrease in orders for the Production segment in the fourth quarter.
Insights
The report highlights a 6% increase in annual revenue to $739 million for Forum Energy Technologies, which signals a modest yet positive trajectory in the company's financial performance. The book-to-bill ratio slightly below 100% suggests a balance between orders received and revenue billed, indicating stable demand for the company's products and services. However, the reported net loss of $19 million contrasts with the previous year's net income, underscoring challenges that may have affected profitability.
Of particular interest to stakeholders is the 14% rise in adjusted EBITDA to $67 million, which reflects improved operational efficiency or cost management, especially when considering the net loss context. The provided 2024 EBITDA guidance between $100 to $120 million, coupled with an anticipated free cash flow of $40 to $60 million, projects a confident outlook and suggests that the company expects to capitalize on synergies from the Variperm acquisition and other strategic initiatives.
Investors should note the impact of special items, including foreign exchange losses and transaction expenses, which have significantly affected the net figures. The Variperm acquisition is expected to enhance the company's product portfolio and potentially increase market share, but the true value will depend on the successful integration and realization of projected synergies.
The company's performance in international markets, with a 23% revenue increase and significant growth in the Middle East, indicates a strategic expansion that outpaces the international rig count growth. This suggests that FET's products are gaining traction overseas, which could be a result of successful market penetration strategies or increased demand for energy production solutions.
The Subsea Technologies product line's 129% book-to-bill ratio and doubled backlog signify strong market demand and future revenue potential in this segment. The commercialization of new products, such as the FASTConnect and the next-generation iron roughneck, highlight the company's commitment to innovation and could be a key driver for future growth.
While the industry outlook remains positive due to the global demand for energy, the company's long-term success will likely hinge on its ability to maintain technological leadership and adapt to market fluctuations. Investors should monitor FET's progress in commercializing its new technologies and the impact of these innovations on its financial performance.
The emphasis on FET's role as an equipment manufacturer for safer, cleaner and more efficient energy production aligns with the broader industry trend towards sustainability and environmental responsibility. The company's focus on differentiated products and patent-protected technologies could provide a competitive edge as the energy sector evolves.
The reduction of long-term debt by 48% is a significant financial move that improves the company's balance sheet and may reduce interest expenses, potentially freeing up capital for investment in growth opportunities. The strategic acquisition of Variperm, which is highlighted as highly accretive, suggests that FET is actively seeking to enhance its market position through mergers and acquisitions.
It is crucial to assess the potential risks associated with the integration of Variperm, such as cultural alignment and the harmonization of operations. Successful integration is key to realizing the forecasted financial returns and should be closely monitored by investors and industry stakeholders.
Full Year 2023 Highlights and 2024 Guidance
-
Revenue:
, a$739 million 6% year-over-year increase -
Orders:
and book-to-bill ratio of$724 million 98% -
Net loss:
, or diluted EPS of$19 million $1.85 -
Adjusted EBITDA:
, a$67 million 14% increase from 2022 -
2024 Adjusted EBITDA guidance:
-$100 $120 million
2023 revenue was
Full year special items, on a pre-tax basis, included
See Tables 1-6 for a reconciliation of GAAP to non-GAAP financial information.
Neal Lux, President and Chief Executive Officer, remarked, “2023 was a transformative year for FET. In addition to executing our strategy, we accomplished two significant milestones that accelerate FET’s long-term growth trajectory. We began the year by reducing our long-term debt by
“This highly accretive acquisition demonstrates strong industrial logic. Variperm’s differentiated products and patent-protected technologies complement our artificial lift product portfolio, expanding the total addressable market for FET.
“Together, we are a formidable manufacturer of highly engineered products and solutions that we expect will generate significant financial returns for our shareholders. In 2024, we are forecasting EBITDA of
“We executed our strategy, adapted to volatile market conditions, and benefited from our strong global footprint, delivering revenue and adjusted EBITDA growth of
“FET also benefited from increasing customer adoption of its differentiated technology portfolio. We commercialized several new products that we believe will drive revenue growth, including our frac automated switch technology system, FASTConnect, and the next generation iron roughneck. In addition, our Coiled Tubing product line set new world records for length and weight of two different strings, both for the
“Our long-term outlook for the industry has not changed. The world needs more energy. FET will be a leading equipment manufacturer, delivering solutions that allow for safer, cleaner, and more efficient energy production.”
Segment Results (unless otherwise noted, comparisons are fourth quarter 2023 versus third quarter 2023)
Drilling & Downhole segment revenue was
Completions segment revenue was
Production segment revenue was
FET (Forum Energy Technologies) 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 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
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) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Revenue |
|
$ |
185.2 |
|
|
$ |
190.7 |
|
|
$ |
179.3 |
|
Cost of sales |
|
|
135.5 |
|
|
|
140.7 |
|
|
|
128.3 |
|
Gross profit |
|
|
49.7 |
|
|
|
50.0 |
|
|
|
51.0 |
|
Operating expenses |
|
|
|
|
|
|
||||||
Selling, general and administrative expenses |
|
|
45.0 |
|
|
|
48.0 |
|
|
|
45.5 |
|
Transaction expenses |
|
|
2.9 |
|
|
|
— |
|
|
|
— |
|
Gain on sale-leaseback transactions |
|
|
— |
|
|
|
(7.0 |
) |
|
|
— |
|
Gain on disposal of assets and other |
|
|
— |
|
|
|
(0.3 |
) |
|
|
(0.2 |
) |
Total operating expenses |
|
|
47.9 |
|
|
|
40.7 |
|
|
|
45.3 |
|
Operating income |
|
|
1.8 |
|
|
|
9.3 |
|
|
|
5.7 |
|
Other expense (income) |
|
|
|
|
|
|
||||||
Interest expense |
|
|
4.6 |
|
|
|
7.9 |
|
|
|
4.5 |
|
Foreign exchange losses (gains) and other, net |
|
|
9.1 |
|
|
|
12.5 |
|
|
|
(8.2 |
) |
Total other (income) expense, net |
|
|
13.7 |
|
|
|
20.4 |
|
|
|
(3.7 |
) |
Income (loss) before income taxes |
|
|
(11.9 |
) |
|
|
(11.1 |
) |
|
|
9.4 |
|
Income tax expense |
|
|
4.9 |
|
|
|
1.7 |
|
|
|
1.4 |
|
Net income (loss) (1) |
|
$ |
(16.8 |
) |
|
$ |
(12.8 |
) |
|
$ |
8.0 |
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding |
|
|
|
|
|
|
||||||
Basic |
|
|
10.2 |
|
|
|
5.8 |
|
|
|
10.2 |
|
Diluted |
|
|
10.2 |
|
|
|
5.8 |
|
|
|
10.4 |
|
|
|
|
|
|
|
|
||||||
Earnings (loss) per share |
|
|
|
|
|
|
||||||
Basic |
|
$ |
(1.64 |
) |
|
$ |
(2.22 |
) |
|
$ |
0.78 |
|
Diluted |
|
$ |
(1.64 |
) |
|
$ |
(2.22 |
) |
|
$ |
0.77 |
|
|
|
|
|
|
|
|
||||||
(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) |
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
738.9 |
|
|
$ |
699.9 |
|
Cost of sales |
|
|
534.7 |
|
|
|
511.4 |
|
Gross profit |
|
|
204.2 |
|
|
|
188.5 |
|
Operating expenses |
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
180.4 |
|
|
|
179.5 |
|
Transaction expenses |
|
|
2.9 |
|
|
|
— |
|
Gain on sale-leaseback transactions |
|
|
— |
|
|
|
(7.0 |
) |
Loss (gain) on disposal of assets and other |
|
|
0.2 |
|
|
|
(1.3 |
) |
Total operating expenses |
|
|
183.5 |
|
|
|
171.2 |
|
Operating income |
|
|
20.7 |
|
|
|
17.3 |
|
Other expense (income) |
|
|
|
|
||||
Interest expense |
|
|
18.3 |
|
|
|
31.5 |
|
Foreign exchange losses (gains) and other, net |
|
|
10.2 |
|
|
|
(24.5 |
) |
Total other expense |
|
|
28.5 |
|
|
|
7.0 |
|
Income (loss) before income taxes |
|
|
(7.8 |
) |
|
|
10.3 |
|
Income tax expense |
|
|
11.1 |
|
|
|
6.6 |
|
Net income (loss) (1) |
|
$ |
(18.9 |
) |
|
$ |
3.7 |
|
|
|
|
|
|
||||
Weighted average shares outstanding |
|
|
|
|
||||
Basic |
|
|
10.2 |
|
|
|
5.7 |
|
Diluted |
|
|
10.2 |
|
|
|
6.0 |
|
|
|
|
|
|
||||
Earnings (loss) per share |
|
|
|
|
||||
Basic |
|
$ |
(1.85 |
) |
|
$ |
0.65 |
|
Diluted |
|
$ |
(1.85 |
) |
|
$ |
0.62 |
|
|
|
|
|
|
||||
(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 |
|
$ |
46.2 |
|
$ |
51.0 |
Accounts receivable—trade, net |
|
|
146.7 |
|
|
154.2 |
Inventories, net |
|
|
299.6 |
|
|
269.8 |
Other current assets |
|
|
37.1 |
|
|
37.9 |
Total current assets |
|
|
529.6 |
|
|
512.9 |
Property and equipment, net of accumulated depreciation |
|
|
61.4 |
|
|
63.0 |
Operating lease assets |
|
|
55.4 |
|
|
53.8 |
Intangible assets, net |
|
|
168.0 |
|
|
191.5 |
Other long-term assets |
|
|
6.7 |
|
|
10.1 |
Total assets |
|
$ |
821.1 |
|
$ |
831.3 |
Liabilities and equity |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Current portion of long-term debt |
|
$ |
1.2 |
|
$ |
0.8 |
Other current liabilities |
|
|
203.1 |
|
|
209.7 |
Total current liabilities |
|
|
204.3 |
|
|
210.5 |
Long-term debt, net of current portion |
|
|
129.6 |
|
|
239.1 |
Other long-term liabilities |
|
|
74.5 |
|
|
74.6 |
Total liabilities |
|
|
408.4 |
|
|
524.2 |
Total equity |
|
|
412.7 |
|
|
307.1 |
Total liabilities and equity |
|
$ |
821.1 |
|
$ |
831.3 |
Forum Energy Technologies, Inc. |
||||||||
Condensed consolidated cash flow information |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Year ended |
||||||
|
|
December 31, |
||||||
(in millions of dollars) |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
|
||||
Net income (loss) |
|
$ |
(18.9 |
) |
|
$ |
3.7 |
|
Depreciation and amortization |
|
|
34.7 |
|
|
|
37.1 |
|
Inventory write down |
|
|
2.8 |
|
|
|
2.7 |
|
Gain on sale-leaseback transactions |
|
|
— |
|
|
|
(7.0 |
) |
Other noncash items and changes in working capital |
|
|
(10.4 |
) |
|
|
(53.6 |
) |
Net cash provided by (used in) operating activities |
|
|
8.2 |
|
|
|
(17.1 |
) |
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures for property and equipment |
|
|
(7.9 |
) |
|
|
(7.5 |
) |
Acquisition of businesses, net of cash acquired |
|
|
— |
|
|
|
(0.5 |
) |
Proceeds from sale-leaseback transactions |
|
|
— |
|
|
|
32.1 |
|
Proceeds from sale of property and equipment |
|
|
1.3 |
|
|
|
3.0 |
|
Net cash provided by (used in) investing activities |
|
|
(6.6 |
) |
|
|
27.1 |
|
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Borrowings of debt |
|
|
451.7 |
|
|
|
556.6 |
|
Repayments of debt |
|
|
(453.0 |
) |
|
|
(557.8 |
) |
Repurchases of stock |
|
|
(6.0 |
) |
|
|
(3.8 |
) |
Deferred financing costs |
|
|
(0.3 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(7.6 |
) |
|
|
(5.0 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
|
1.1 |
|
|
|
(0.8 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
$ |
(4.9 |
) |
|
$ |
4.2 |
|
|
|
|
|
|
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, 2023 |
|
December 31, 2022 |
|
September 30, 2023 |
|
December 31, 2023 |
|
December 31, 2022 |
|
September 30, 2023 |
||||||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling & Downhole |
|
$ |
90.9 |
|
|
$ |
81.1 |
|
|
$ |
81.2 |
|
|
$ |
90.9 |
|
|
$ |
81.1 |
|
|
$ |
81.2 |
|
Completions |
|
|
57.4 |
|
|
|
74.1 |
|
|
|
62.5 |
|
|
|
57.4 |
|
|
|
74.1 |
|
|
|
62.5 |
|
Production |
|
|
36.9 |
|
|
|
35.9 |
|
|
|
36.9 |
|
|
|
36.9 |
|
|
|
35.9 |
|
|
|
36.9 |
|
Eliminations |
|
|
— |
|
|
|
(0.4 |
) |
|
|
(1.3 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
(1.3 |
) |
Total revenue |
|
$ |
185.2 |
|
|
$ |
190.7 |
|
|
$ |
179.3 |
|
|
$ |
185.2 |
|
|
$ |
190.7 |
|
|
$ |
179.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling & Downhole |
|
$ |
8.6 |
|
|
$ |
8.2 |
|
|
$ |
8.4 |
|
|
$ |
8.8 |
|
|
$ |
8.1 |
|
|
$ |
8.5 |
|
Operating margin % |
|
|
9.5 |
% |
|
|
10.1 |
% |
|
|
10.3 |
% |
|
|
9.7 |
% |
|
|
10.0 |
% |
|
|
10.5 |
% |
Completions |
|
|
0.9 |
|
|
|
2.8 |
|
|
|
2.1 |
|
|
|
1.5 |
|
|
|
3.8 |
|
|
|
2.0 |
|
Operating margin % |
|
|
1.6 |
% |
|
|
3.8 |
% |
|
|
3.4 |
% |
|
|
2.6 |
% |
|
|
5.1 |
% |
|
|
3.2 |
% |
Production |
|
|
1.9 |
|
|
|
0.8 |
|
|
|
1.8 |
|
|
|
1.8 |
|
|
|
0.9 |
|
|
|
2.0 |
|
Operating margin % |
|
|
5.1 |
% |
|
|
2.2 |
% |
|
|
4.9 |
% |
|
|
4.9 |
% |
|
|
2.5 |
% |
|
|
5.4 |
% |
Corporate |
|
|
(6.7 |
) |
|
|
(9.8 |
) |
|
|
(6.8 |
) |
|
|
(6.7 |
) |
|
|
(7.1 |
) |
|
|
(6.3 |
) |
Total segment operating income (loss) |
|
|
4.7 |
|
|
|
2.0 |
|
|
|
5.5 |
|
|
|
5.4 |
|
|
|
5.7 |
|
|
|
6.2 |
|
Other items not in segment operating income (loss) (1) |
|
|
(2.9 |
) |
|
|
7.3 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.2 |
|
Total operating income (loss) |
|
$ |
1.8 |
|
|
$ |
9.3 |
|
|
$ |
5.7 |
|
|
$ |
5.4 |
|
|
$ |
6.0 |
|
|
$ |
6.4 |
|
Operating margin % |
|
|
1.0 |
% |
|
|
4.9 |
% |
|
|
3.2 |
% |
|
|
2.9 |
% |
|
|
3.1 |
% |
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling & Downhole |
|
$ |
3.7 |
|
|
$ |
5.8 |
|
|
$ |
18.2 |
|
|
$ |
11.4 |
|
|
$ |
11.2 |
|
|
$ |
11.4 |
|
EBITDA margin % |
|
|
4.1 |
% |
|
|
7.2 |
% |
|
|
22.4 |
% |
|
|
12.5 |
% |
|
|
13.8 |
% |
|
|
14.0 |
% |
Completions |
|
|
6.1 |
|
|
|
8.1 |
|
|
|
8.1 |
|
|
|
7.1 |
|
|
|
9.4 |
|
|
|
7.8 |
|
EBITDA margin % |
|
|
10.6 |
% |
|
|
10.9 |
% |
|
|
13.0 |
% |
|
|
12.4 |
% |
|
|
12.7 |
% |
|
|
12.5 |
% |
Production |
|
|
2.5 |
|
|
|
1.5 |
|
|
|
2.3 |
|
|
|
2.3 |
|
|
|
1.7 |
|
|
|
2.5 |
|
EBITDA margin % |
|
|
6.8 |
% |
|
|
4.2 |
% |
|
|
6.2 |
% |
|
|
6.2 |
% |
|
|
4.7 |
% |
|
|
6.8 |
% |
Corporate |
|
|
(10.9 |
) |
|
|
(9.8 |
) |
|
|
(5.7 |
) |
|
|
(5.4 |
) |
|
|
(5.8 |
) |
|
|
(5.1 |
) |
Total EBITDA |
|
$ |
1.4 |
|
|
$ |
5.6 |
|
|
$ |
22.9 |
|
|
$ |
15.4 |
|
|
$ |
16.5 |
|
|
$ |
16.6 |
|
EBITDA margin % |
|
|
0.8 |
% |
|
|
2.9 |
% |
|
|
12.8 |
% |
|
|
8.3 |
% |
|
|
8.7 |
% |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(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 & Downhole |
|
$ |
329.6 |
|
|
$ |
304.6 |
|
|
$ |
329.6 |
|
|
$ |
304.6 |
|
Completions |
|
|
265.6 |
|
|
|
265.0 |
|
|
|
265.6 |
|
|
|
265.0 |
|
Production |
|
|
145.9 |
|
|
|
131.5 |
|
|
|
145.9 |
|
|
|
131.5 |
|
Eliminations |
|
|
(2.2 |
) |
|
|
(1.2 |
) |
|
|
(2.2 |
) |
|
|
(1.2 |
) |
Total revenue |
|
$ |
738.9 |
|
|
$ |
699.9 |
|
|
$ |
738.9 |
|
|
$ |
699.9 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
||||||||
Drilling & Downhole |
|
$ |
33.8 |
|
|
$ |
32.2 |
|
|
$ |
34.0 |
|
|
$ |
32.5 |
|
Operating margin % |
|
|
10.3 |
% |
|
|
10.6 |
% |
|
|
10.3 |
% |
|
|
10.7 |
% |
Completions |
|
|
10.8 |
|
|
|
11.6 |
|
|
|
12.2 |
|
|
|
11.0 |
|
Operating margin % |
|
|
4.1 |
% |
|
|
4.4 |
% |
|
|
4.6 |
% |
|
|
4.2 |
% |
Production |
|
|
6.5 |
|
|
|
(0.4 |
) |
|
|
6.9 |
|
|
|
(0.3 |
) |
Operating margin % |
|
|
4.5 |
% |
|
|
(0.3 |
) % |
|
|
4.7 |
% |
|
|
(0.2 |
) % |
Corporate |
|
|
(27.3 |
) |
|
|
(34.3 |
) |
|
|
(26.5 |
) |
|
|
(26.5 |
) |
Total segment operating income (loss) |
|
|
23.8 |
|
|
|
9.1 |
|
|
|
26.6 |
|
|
|
16.7 |
|
Other items not in segment operating income (loss) (1) |
|
|
(3.1 |
) |
|
|
8.2 |
|
|
|
0.6 |
|
|
|
0.6 |
|
Total operating income (loss) |
|
$ |
20.7 |
|
|
$ |
17.3 |
|
|
$ |
27.2 |
|
|
$ |
17.3 |
|
Operating margin % |
|
|
2.8 |
% |
|
|
2.5 |
% |
|
|
3.7 |
% |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
EBITDA (2) |
|
|
|
|
|
|
|
|
||||||||
Drilling & Downhole |
|
$ |
35.5 |
|
|
$ |
72.8 |
|
|
$ |
45.1 |
|
|
$ |
45.2 |
|
EBITDA margin % |
|
|
10.8 |
% |
|
|
23.9 |
% |
|
|
13.7 |
% |
|
|
14.8 |
% |
Completions |
|
|
32.1 |
|
|
|
34.2 |
|
|
|
34.4 |
|
|
|
33.3 |
|
EBITDA margin % |
|
|
12.1 |
% |
|
|
12.9 |
% |
|
|
13.0 |
% |
|
|
12.6 |
% |
Production |
|
|
8.7 |
|
|
|
3.4 |
|
|
|
9.0 |
|
|
|
2.9 |
|
EBITDA margin % |
|
|
6.0 |
% |
|
|
2.6 |
% |
|
|
6.2 |
% |
|
|
2.2 |
% |
Corporate |
|
|
(31.1 |
) |
|
|
(31.5 |
) |
|
|
(21.4 |
) |
|
|
(22.7 |
) |
Total EBITDA |
|
$ |
45.2 |
|
|
$ |
78.9 |
|
|
$ |
67.1 |
|
|
$ |
58.7 |
|
EBITDA margin % |
|
|
6.1 |
% |
|
|
11.3 |
% |
|
|
9.1 |
% |
|
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
||||||||||||||||
(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 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 & Downhole |
|
$ |
78.9 |
|
$ |
87.2 |
|
|
$ |
95.0 |
|
Completions |
|
|
58.2 |
|
|
81.4 |
|
|
|
65.1 |
|
Production |
|
|
23.2 |
|
|
46.5 |
|
|
|
38.7 |
|
Total orders |
|
$ |
160.3 |
|
$ |
215.1 |
|
|
$ |
198.8 |
|
|
|
|
|
|
|
|
|||||
Revenue |
|
|
|
|
|
|
|||||
Drilling & Downhole |
|
$ |
90.9 |
|
$ |
81.1 |
|
|
$ |
81.2 |
|
Completions |
|
|
57.4 |
|
|
74.1 |
|
|
|
62.5 |
|
Production |
|
|
36.9 |
|
|
35.9 |
|
|
|
36.9 |
|
Eliminations |
|
|
— |
|
|
(0.4 |
) |
|
|
(1.3 |
) |
Total revenue |
|
$ |
185.2 |
|
$ |
190.7 |
|
|
$ |
179.3 |
|
|
|
|
|
|
|
|
|||||
Book to bill ratio (1) |
|
|
|
|
|
|
|||||
Drilling & Downhole |
|
|
0.87 |
|
|
1.08 |
|
|
|
1.17 |
|
Completions |
|
|
1.01 |
|
|
1.10 |
|
|
|
1.04 |
|
Production |
|
|
0.63 |
|
|
1.30 |
|
|
|
1.05 |
|
Total book to bill ratio |
|
|
0.87 |
|
|
1.13 |
|
|
|
1.11 |
|
|
|
|
|
|
|
|
|||||
(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, 2023 |
|
December 31, 2022 |
|
September 30, 2023 |
||||||||||||||||||||||||||||||
(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 |
$ |
1.8 |
|
|
$ |
1.4 |
|
|
$ |
(16.8 |
) |
|
$ |
9.3 |
|
|
$ |
5.6 |
|
|
$ |
(12.8 |
) |
|
$ |
5.7 |
|
|
$ |
22.9 |
|
|
$ |
8.0 |
|
% of revenue |
|
1.0 |
% |
|
|
0.8 |
% |
|
|
|
|
4.9 |
% |
|
|
2.9 |
% |
|
|
|
|
3.2 |
% |
|
|
12.8 |
% |
|
|
||||||
Restructuring and other costs |
|
0.7 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
2.7 |
|
|
|
2.7 |
|
|
|
2.7 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.8 |
|
Transaction expenses |
|
2.9 |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Inventory and other working capital adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
Stock-based compensation expense |
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
0.8 |
|
|
|
1.5 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
Loss (gain) on foreign exchange, net (2) |
|
— |
|
|
|
9.2 |
|
|
|
9.2 |
|
|
|
— |
|
|
|
13.5 |
|
|
|
13.5 |
|
|
|
— |
|
|
|
(8.2 |
) |
|
|
(8.2 |
) |
Gain on sale-leaseback transactions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7.0 |
) |
|
|
(7.0 |
) |
|
|
(7.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
As adjusted(1) |
$ |
5.4 |
|
|
$ |
15.4 |
|
|
$ |
(4.0 |
) |
|
$ |
6.0 |
|
|
$ |
16.5 |
|
|
$ |
(2.6 |
) |
|
$ |
6.4 |
|
|
$ |
16.6 |
|
|
$ |
0.5 |
|
% of revenue |
|
2.9 |
% |
|
|
8.3 |
% |
|
|
|
|
3.1 |
% |
|
|
8.7 |
% |
|
|
|
|
3.6 |
% |
|
|
9.3 |
% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted shares outstanding as reported |
|
|
|
|
|
10.2 |
|
|
|
|
|
|
|
5.8 |
|
|
|
|
|
|
|
10.4 |
|
||||||||||||
Diluted shares outstanding as adjusted |
|
|
|
|
|
10.2 |
|
|
|
|
|
|
|
5.8 |
|
|
|
|
|
|
|
10.4 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted EPS - as reported |
|
|
|
|
$ |
(1.64 |
) |
|
|
|
|
|
$ |
(2.22 |
) |
|
|
|
|
|
$ |
0.77 |
|
||||||||||||
Diluted EPS - as adjusted |
|
|
|
|
$ |
(0.39 |
) |
|
|
|
|
|
$ |
(0.45 |
) |
|
|
|
|
|
$ |
0.05 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(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, 2023 |
|
December 31, 2022 |
||||||||||||||||||||
(in millions, except per share information) |
Operating income (loss) |
|
EBITDA (1) |
|
Net income (loss) |
|
Operating income (loss) |
|
EBITDA (1) |
|
Net income (loss) |
||||||||||||
As reported |
$ |
20.7 |
|
|
$ |
45.2 |
|
|
$ |
(18.9 |
) |
|
$ |
17.3 |
|
|
$ |
78.9 |
|
|
$ |
3.7 |
|
% of revenue |
|
2.8 |
% |
|
|
6.1 |
% |
|
|
|
|
2.5 |
% |
|
|
11.3 |
% |
|
|
||||
Restructuring and other costs |
|
3.1 |
|
|
|
3.1 |
|
|
|
3.1 |
|
|
|
8.9 |
|
|
|
8.9 |
|
|
|
8.9 |
|
Transaction expenses |
|
3.9 |
|
|
|
3.9 |
|
|
|
3.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Inventory and other working capital adjustments |
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(2.7 |
) |
|
|
(2.7 |
) |
|
|
(2.7 |
) |
Stock-based compensation expense |
|
— |
|
|
|
4.6 |
|
|
|
— |
|
|
|
0.8 |
|
|
|
4.0 |
|
|
|
0.8 |
|
Loss (gain) on foreign exchange, net (2) |
|
— |
|
|
|
10.8 |
|
|
|
10.8 |
|
|
|
— |
|
|
|
(23.4 |
) |
|
|
(23.4 |
) |
Gain on sale-leaseback transactions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7.0 |
) |
|
|
(7.0 |
) |
|
|
(7.0 |
) |
As adjusted (1) |
$ |
27.2 |
|
|
$ |
67.1 |
|
|
$ |
(1.6 |
) |
|
$ |
17.3 |
|
|
$ |
58.7 |
|
|
$ |
(19.7 |
) |
% of revenue |
|
3.7 |
% |
|
|
9.1 |
% |
|
|
|
|
2.5 |
% |
|
|
8.4 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted shares outstanding as reported |
|
|
|
|
|
10.2 |
|
|
|
|
|
|
|
6.0 |
|
||||||||
Diluted shares outstanding as adjusted |
|
|
|
|
|
10.2 |
|
|
|
|
|
|
|
6.0 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted EPS - as reported |
|
|
|
|
$ |
(1.85 |
) |
|
|
|
|
|
$ |
0.62 |
|
||||||||
Diluted EPS - as adjusted |
|
|
|
|
$ |
(0.16 |
) |
|
|
|
|
|
$ |
(3.28 |
) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(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) |
|
$ |
(16.8 |
) |
|
$ |
(12.8 |
) |
|
$ |
8.0 |
Interest expense |
|
|
4.6 |
|
|
|
7.9 |
|
|
|
4.5 |
Depreciation and amortization |
|
|
8.7 |
|
|
|
8.8 |
|
|
|
9.0 |
Income tax expense |
|
|
4.9 |
|
|
|
1.7 |
|
|
|
1.4 |
EBITDA |
|
$ |
1.4 |
|
|
$ |
5.6 |
|
|
$ |
22.9 |
|
|
|
|
|
|
|
|||||
(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) |
|
$ |
(18.9 |
) |
|
$ |
3.7 |
Interest expense |
|
|
18.3 |
|
|
|
31.5 |
Depreciation and amortization |
|
|
34.7 |
|
|
|
37.1 |
Income tax expense |
|
|
11.1 |
|
|
|
6.6 |
EBITDA |
|
$ |
45.2 |
|
|
$ |
78.9 |
|
|
|
|
|
|||
(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 (used in) operating activities |
|
$ |
11.3 |
|
|
$ |
15.0 |
|
|
$ |
26.4 |
|
Capital expenditures for property and equipment |
|
|
(2.4 |
) |
|
|
(2.7 |
) |
|
|
(2.7 |
) |
Proceeds from sale-leaseback transactions |
|
|
— |
|
|
|
32.1 |
|
|
|
— |
|
Proceeds from sale of property and equipment |
|
|
— |
|
|
|
0.3 |
|
|
|
0.2 |
|
Free cash flow, before acquisitions |
|
$ |
8.9 |
|
|
$ |
44.7 |
|
|
$ |
23.9 |
|
|
|
|
|
|
|
|
||||||
(1) The Company believes free cash flow, before acquisitions is an important measure because it encompasses both profitability and capital management in evaluating results. |
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 (used in) operating activities |
|
$ |
8.2 |
|
|
$ |
(17.1 |
) |
Capital expenditures for property and equipment |
|
|
(7.9 |
) |
|
|
(7.5 |
) |
Proceeds from sale-leaseback transactions |
|
|
— |
|
|
|
32.1 |
|
Proceeds from sale of property and equipment |
|
|
1.3 |
|
|
|
3.0 |
|
Free cash flow, before acquisitions |
|
$ |
1.6 |
|
|
$ |
10.5 |
|
|
|
|
|
|
||||
(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. |
|||||||||||||||||
Supplemental schedule - Product line revenue |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended |
|||||||||||||||
(in millions of dollars) |
|
December 31,
|
|
December 31,
|
|
September 30,
|
|||||||||||
Revenue |
|
$ |
% |
|
$ |
% |
|
$ |
% |
||||||||
Drilling Technologies |
|
$ |
41.6 |
22.5 |
% |
|
$ |
42.5 |
|
22.2 |
% |
|
$ |
43.0 |
|
24.0 |
% |
Downhole Technologies |
|
|
21.7 |
11.7 |
% |
|
|
22.1 |
|
11.6 |
% |
|
|
23.5 |
|
13.1 |
% |
Subsea Technologies |
|
|
27.6 |
14.9 |
% |
|
|
16.5 |
|
8.7 |
% |
|
|
14.7 |
|
8.2 |
% |
Drilling & Downhole |
|
|
90.9 |
49.1 |
% |
|
|
81.1 |
|
42.5 |
% |
|
|
81.2 |
|
45.3 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Stimulation and Intervention |
|
|
32.1 |
17.3 |
% |
|
|
45.2 |
|
23.7 |
% |
|
|
32.6 |
|
18.2 |
% |
Coiled Tubing |
|
|
25.3 |
13.7 |
% |
|
|
28.9 |
|
15.2 |
% |
|
|
29.9 |
|
16.7 |
% |
Completions |
|
|
57.4 |
31.0 |
% |
|
|
74.1 |
|
38.9 |
% |
|
|
62.5 |
|
34.9 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Production Equipment |
|
|
22.7 |
12.3 |
% |
|
|
19.9 |
|
10.4 |
% |
|
|
21.7 |
|
12.1 |
% |
Valve Solutions |
|
|
14.2 |
7.6 |
% |
|
|
16.0 |
|
8.4 |
% |
|
|
15.2 |
|
8.5 |
% |
Production |
|
|
36.9 |
19.9 |
% |
|
|
35.9 |
|
18.8 |
% |
|
|
36.9 |
|
20.6 |
% |
Eliminations |
|
|
— |
— |
% |
|
|
(0.4 |
) |
(0.2 |
) % |
|
|
(1.3 |
) |
(0.8 |
) % |
Total revenue |
|
$ |
185.2 |
100.0 |
% |
|
$ |
190.7 |
|
100.0 |
% |
|
$ |
179.3 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229907867/en/
Rob Kukla
Director of Investor Relations
281.994.3763
rob.kukla@f-e-t.com
Source: Forum Energy Technologies
FAQ
What was Forum Energy Technologies' revenue for 2023?
What was FET's net loss for 2023?
What is the adjusted EBITDA guidance for 2024?
What was the fourth quarter revenue for FET in 2023?
What was the impact of the Variperm acquisition on FET's growth trajectory?
Which segment showed a decrease in revenue in the fourth quarter of 2023?
What was the reason behind the decrease in orders for the Production segment in the fourth quarter?