Forum Energy Technologies Announces Third Quarter 2024 Results; Raises Free Cash Flow Guidance
Forum Energy Technologies (FET) reported Q3 2024 revenue of $208 million, up 16% year-over-year, with orders of $206 million and a book-to-bill ratio of 99%. The company posted a net loss of $15 million ($1.20 per share) and adjusted EBITDA of $26 million, up 55% year-over-year. FET generated free cash flow of $25 million and raised its 2024 full-year free cash flow guidance to $60-70 million. The company announced a $100 million Senior Secured Bonds offering at 10.5% to retire existing debt. Q4 2024 guidance projects revenue of $190-210 million and adjusted EBITDA of $22-26 million.
Forum Energy Technologies (FET) ha riportato un fatturato di 208 milioni di dollari per il terzo trimestre del 2024, con un aumento del 16% rispetto allo stesso periodo dell'anno precedente, e ha ricevuto ordini per 206 milioni di dollari, con un rapporto book-to-bill del 99%. L'azienda ha registrato una perdita netta di 15 milioni di dollari (1,20 dollari per azione) e un EBITDA rettificato di 26 milioni di dollari, in aumento del 55% anno su anno. FET ha generato un flusso di cassa libero di 25 milioni di dollari e ha alzato la sua guida per il flusso di cassa libero dell'intero anno 2024 a 60-70 milioni di dollari. L'azienda ha annunciato un'offerta di obbligazioni senior garantite da 100 milioni di dollari al 10,5% per ristrutturare il debito esistente. Le previsioni per il quarto trimestre del 2024 indicano un fatturato compreso tra 190 e 210 milioni di dollari e un EBITDA rettificato tra 22 e 26 milioni di dollari.
Forum Energy Technologies (FET) informó ingresos de 208 millones de dólares en el tercer trimestre de 2024, un incremento del 16% en comparación con el año anterior, con pedidos por 206 millones de dólares y una relación book-to-bill del 99%. La compañía registró una pérdida neta de 15 millones de dólares (1.20 dólares por acción) y un EBITDA ajustado de 26 millones de dólares, un aumento del 55% interanual. FET generó flujo de caja libre de 25 millones de dólares y elevó su pronóstico de flujo de caja libre para todo el año 2024 a 60-70 millones de dólares. La empresa anunció una oferta de bonos garantizados senior de 100 millones de dólares al 10.5% para retirar la deuda existente. Las proyecciones para el cuarto trimestre de 2024 estiman ingresos de entre 190 y 210 millones de dólares y un EBITDA ajustado de entre 22 y 26 millones de dólares.
포럼 에너지 기술(FET)는 2024년 3분기에 2억 800만 달러의 수익을 보고했으며, 이는 전년 대비 16% 증가한 수치입니다. 2억 600만 달러의 주문을 받았으며, 예약 대 청구 비율은 99%입니다. 회사는 1500만 달러(주당 1.20달러)의 순손실을 기록했으며 조정 EBITDA는 2600만 달러로 전년 대비 55% 증가했습니다. FET는 2500만 달러의 자유 현금 흐름을 생성했으며, 2024년 전체 연도의 자유 현금 흐름 가이던스를 6000만~7000만 달러로 상향 조정했습니다. 회사는 기존 부채를 상환하기 위해 10.5%의 금리로 1억 달러 규모의 담보채권 제안을 발표했습니다. 2024년 4분기 전망은 수익이 1억 9000만~2억 1000만 달러, 조정 EBITDA가 2200만~2600만 달러에 이를 것으로 예상하고 있습니다.
Forum Energy Technologies (FET) a annoncé un chiffre d'affaires de 208 millions de dollars pour le troisième trimestre 2024, en hausse de 16 % par rapport à l'année précédente, avec des commandes de 206 millions de dollars et un rapport book-to-bill de 99 %. L'entreprise a enregistré une perte nette de 15 millions de dollars (1,20 dollar par action) et un EBITDA ajusté de 26 millions de dollars, en hausse de 55 % par rapport à l'année précédente. FET a généré un flux de trésorerie libre de 25 millions de dollars et a relevé sa prévision de flux de trésorerie libre pour l'année 2024 à 60-70 millions de dollars. La société a annoncé une émission d'obligations sécurisées senior de 100 millions de dollars à 10,5 % afin de rembourser sa dette existante. Les prévisions pour le quatrième trimestre 2024 projettent un chiffre d'affaires de 190 à 210 millions de dollars et un EBITDA ajusté de 22 à 26 millions de dollars.
Forum Energy Technologies (FET) berichtete über einen Umsatz von 208 Millionen Dollar im dritten Quartal 2024, was einer Steigerung von 16 % im Vergleich zum Vorjahr entspricht. Es wurden Aufträge im Wert von 206 Millionen Dollar und ein Book-to-Bill-Verhältnis von 99 % verzeichnet. Das Unternehmen verzeichnete einen Nettogewinn von 15 Millionen Dollar (1,20 Dollar pro Aktie) und ein bereinigtes EBITDA von 26 Millionen Dollar, was einer Steigerung von 55 % im Jahresvergleich entspricht. FET generierte einen freien Cashflow von 25 Millionen Dollar und hob die Prognose für den freien Cashflow für das gesamte Jahr 2024 auf 60-70 Millionen Dollar an. Das Unternehmen kündigte ein Angebot über 100 Millionen Dollar an besicherten Anleihen mit einem Zinssatz von 10,5 % an, um bestehende Schulden abzubauen. Die Prognosen für das vierte Quartal 2024 gehen von Einnahmen zwischen 190 und 210 Millionen Dollar sowie einem bereinigten EBITDA zwischen 22 und 26 Millionen Dollar aus.
- Revenue increased 16% year-over-year to $208 million
- Adjusted EBITDA grew 55% year-over-year to $26 million
- Free cash flow improved 14% quarter-over-quarter to $25 million
- Raised full-year free cash flow guidance to $60-70 million
- Orders increased 14% sequentially to $206 million
- Net loss widened to $15 million ($1.20 per share) from $7 million previous quarter
- Taking on new debt with $100 million, 10.5% Senior Secured Bonds
- Expecting moderated U.S. demand at year end due to budget exhaustion
- Artificial Lift segment revenue decreased 5% sequentially
Insights
FET's Q3 results present a mixed picture with notable strengths in cash flow generation. The
The new
The
The energy services sector context is important here. While FET shows resilience through international diversification, particularly in the Middle East, the domestic market faces headwinds from operator capital discipline and budget exhaustion. The Variperm acquisition is proving strategic, contributing to YoY growth.
The segment performance reveals shifting dynamics - Drilling and Completions'
-
Revenue:
$208 million 16% year-over-year increase -
Orders:
$206 million 99% -
Net loss:
$15 million $1.20 -
Adjusted EBITDA:
$26 million 55% year-over-year -
Operating cash flow and free cash flow:
$26 million $25 million -
Raises 2024 full year free cash flow guidance:
$60 $70 million
Neal Lux, President and Chief Executive Officer, remarked, “FET will significantly bolster our balance sheet upon closing the recently announced offering of
“In addition, FET continues to deliver strong financial results. Our year-over-year revenue and adjusted EBITDA growth reflects the benefits of the Variperm acquisition. Furthermore, third quarter bookings increased
“Commodity prices remain volatile, driven by
| ________________________________ |
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 third quarter 2024 versus second quarter 2024)
Drilling and Completions segment revenue was
Artificial Lift and Downhole 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
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 income (loss) |
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(Unaudited) |
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|
|
||||||||||
|
Three months ended |
||||||||||
|
September 30, |
|
June 30, |
||||||||
(in millions, except per share information) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Revenue |
$ |
207.8 |
|
|
$ |
179.3 |
|
|
$ |
205.2 |
|
Cost of sales |
|
142.1 |
|
|
|
128.3 |
|
|
|
142.1 |
|
Gross profit |
|
65.7 |
|
|
|
51.0 |
|
|
|
63.1 |
|
Operating expenses |
|
|
|
|
|
||||||
Selling, general and administrative expenses |
|
56.3 |
|
|
|
45.5 |
|
|
|
53.7 |
|
Transaction expenses |
|
0.6 |
|
|
|
— |
|
|
|
1.2 |
|
Loss (gain) on disposal of assets and other |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
0.3 |
|
Total operating expenses |
|
56.8 |
|
|
|
45.3 |
|
|
|
55.2 |
|
Operating income |
|
8.9 |
|
|
|
5.7 |
|
|
|
7.9 |
|
Other expense (income) |
|
|
|
|
|
||||||
Interest expense |
|
7.7 |
|
|
|
4.5 |
|
|
|
8.7 |
|
Loss on extinguishment of debt |
|
1.8 |
|
|
|
— |
|
|
|
0.5 |
|
Foreign exchange losses (gains) and other, net |
|
9.6 |
|
|
|
(8.2 |
) |
|
|
2.9 |
|
Total other (income) expense, net |
|
19.1 |
|
|
|
(3.7 |
) |
|
|
12.1 |
|
Income (loss) before income taxes |
|
(10.2 |
) |
|
|
9.4 |
|
|
|
(4.2 |
) |
Income tax expense |
|
4.6 |
|
|
|
1.4 |
|
|
|
2.5 |
|
Net income (loss) (1) |
$ |
(14.8 |
) |
|
$ |
8.0 |
|
|
$ |
(6.7 |
) |
|
|
|
|
|
|
||||||
Weighted average shares outstanding |
|
|
|
|
|
||||||
Basic |
|
12.3 |
|
|
|
10.2 |
|
|
|
12.3 |
|
Diluted |
|
12.3 |
|
|
|
10.4 |
|
|
|
12.3 |
|
|
|
|
|
|
|
||||||
Earnings (loss) per share |
|
|
|
|
|
||||||
Basic |
$ |
(1.20 |
) |
|
$ |
0.78 |
|
|
$ |
(0.54 |
) |
Diluted |
$ |
(1.20 |
) |
|
$ |
0.77 |
|
|
$ |
(0.54 |
) |
|
|
|
|
|
|
||||||
(1) Refer to Table 1 for schedule of adjusting items. |
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Forum Energy Technologies, Inc. |
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Condensed consolidated statements of income (loss) |
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(Unaudited) |
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|
|
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|
Nine months ended |
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|
September 30, |
||||||
(in millions, except per share information) |
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
615.4 |
|
|
$ |
553.7 |
|
Cost of sales |
|
422.8 |
|
|
|
399.3 |
|
Gross profit |
|
192.6 |
|
|
|
154.4 |
|
Operating expenses |
|
|
|
||||
Selling, general and administrative expenses |
|
164.7 |
|
|
|
135.4 |
|
Transaction expenses |
|
7.7 |
|
|
|
— |
|
Loss on disposal of assets and other |
|
0.1 |
|
|
|
0.1 |
|
Total operating expenses |
|
172.5 |
|
|
|
135.5 |
|
Operating income |
|
20.1 |
|
|
|
18.9 |
|
Other expense |
|
|
|
||||
Interest expense |
|
25.1 |
|
|
|
13.7 |
|
Loss on extinguishment of debt |
|
2.3 |
|
|
|
— |
|
Foreign exchange losses and other, net |
|
13.9 |
|
|
|
1.1 |
|
Total other expense |
|
41.3 |
|
|
|
14.8 |
|
Income (loss) before income taxes |
|
(21.2 |
) |
|
|
4.1 |
|
Income tax expense |
|
10.6 |
|
|
|
6.2 |
|
Net income (loss) (1) |
$ |
(31.8 |
) |
|
$ |
(2.1 |
) |
|
|
|
|
||||
Weighted average shares outstanding |
|
|
|
||||
Basic |
|
12.3 |
|
|
|
10.2 |
|
Diluted |
|
12.3 |
|
|
|
10.2 |
|
|
|
|
|
||||
Loss per share |
|
|
|
||||
Basic |
$ |
(2.59 |
) |
|
$ |
(0.21 |
) |
Diluted |
$ |
(2.59 |
) |
|
$ |
(0.21 |
) |
|
|
|
|
||||
(1) Refer to Table 2 for schedule of adjusting items. |
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Forum Energy Technologies, Inc. |
|||||||
Condensed consolidated balance sheets |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
September 30, |
|
December 31, |
||||
(in millions of dollars) |
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
33.3 |
|
$ |
46.2 |
||
Accounts receivable—trade, net |
|
163.1 |
|
|
|
146.7 |
|
Inventories, net |
|
286.9 |
|
|
|
299.6 |
|
Other current assets |
|
40.4 |
|
|
|
37.1 |
|
Total current assets |
|
523.7 |
|
|
|
529.6 |
|
Property and equipment, net of accumulated depreciation |
|
83.4 |
|
|
|
61.4 |
|
Operating lease assets |
|
54.1 |
|
|
|
55.4 |
|
Goodwill and other intangible assets, net |
|
307.9 |
|
|
|
168.0 |
|
Other long-term assets |
|
4.6 |
|
|
|
6.7 |
|
Total assets |
$ |
973.7 |
|
|
$ |
821.1 |
|
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Current portion of long-term debt |
$ |
69.4 |
|
|
$ |
1.2 |
|
Other current liabilities |
|
201.6 |
|
|
|
203.1 |
|
Total current liabilities |
|
271.0 |
|
|
|
204.3 |
|
Long-term debt, net of current portion |
|
162.2 |
|
|
|
129.6 |
|
Other long-term liabilities |
|
97.0 |
|
|
|
74.5 |
|
Total liabilities |
|
530.2 |
|
|
|
408.4 |
|
Total equity |
|
443.5 |
|
|
|
412.7 |
|
Total liabilities and equity |
$ |
973.7 |
|
|
$ |
821.1 |
|
Forum Energy Technologies, Inc. |
|||||||
Condensed consolidated cash flow information |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
|
Nine months ended September 30, |
||||||
(in millions of dollars) |
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(31.8 |
) |
|
$ |
(2.1 |
) |
Depreciation and amortization |
|
41.6 |
|
|
|
26.0 |
|
Inventory write down |
|
3.3 |
|
|
|
1.9 |
|
Loss on extinguishment of debt |
|
2.3 |
|
|
|
— |
|
Other noncash items and changes in working capital |
|
38.3 |
|
|
|
(28.9 |
) |
Net cash provided by (used in) operating activities |
|
53.7 |
|
|
|
(3.1 |
) |
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Capital expenditures for property and equipment |
|
(5.7 |
) |
|
|
(5.5 |
) |
Proceeds from sale of property and equipment |
|
0.2 |
|
|
|
1.3 |
|
Payments related to business acquisition |
|
(150.4 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(155.9 |
) |
|
|
(4.2 |
) |
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Borrowings of debt |
|
628.0 |
|
|
|
351.6 |
|
Repayments of debt |
|
(534.4 |
) |
|
|
(352.5 |
) |
Repurchases of stock |
|
— |
|
|
|
(3.5 |
) |
Payment of withheld taxes on stock-based compensation plans |
|
(1.1 |
) |
|
|
(2.5 |
) |
Deferred financing costs |
|
(3.1 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
89.4 |
|
|
|
(6.9 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
(0.1 |
) |
|
|
0.3 |
|
Net decrease in cash, cash equivalents and restricted cash |
$ |
(12.9 |
) |
|
$ |
(13.9 |
) |
Forum Energy Technologies, Inc. |
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Supplemental schedule - Segment information |
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(Unaudited) |
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|
|
|
|
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|
As Reported |
|
As Adjusted (3) |
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|
Three months ended |
|
Three months ended |
||||||||||||||||||||
(in millions of dollars) |
September 30,
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
June 30,
|
||||||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling and Completions |
$ |
123.6 |
|
|
$ |
118.9 |
|
|
$ |
117.0 |
|
|
$ |
123.6 |
|
|
$ |
118.9 |
|
|
$ |
117.0 |
|
Artificial Lift and Downhole |
|
84.2 |
|
|
|
60.4 |
|
|
|
88.2 |
|
|
|
84.2 |
|
|
|
60.4 |
|
|
|
88.2 |
|
Eliminations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total revenue |
$ |
207.8 |
|
|
$ |
179.3 |
|
|
$ |
205.2 |
|
|
$ |
207.8 |
|
|
$ |
179.3 |
|
|
$ |
205.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling and Completions |
$ |
7.0 |
|
|
$ |
3.9 |
|
|
$ |
2.9 |
|
|
$ |
7.3 |
|
|
$ |
3.7 |
|
|
$ |
3.6 |
|
Operating Margin % |
|
5.7 |
% |
|
|
3.3 |
% |
|
|
2.5 |
% |
|
|
5.9 |
% |
|
|
3.1 |
% |
|
|
3.1 |
% |
Artificial Lift and Downhole |
|
10.8 |
|
|
|
8.5 |
|
|
|
13.5 |
|
|
|
10.8 |
|
|
|
8.8 |
|
|
|
13.5 |
|
Operating Margin % |
|
12.8 |
% |
|
|
14.1 |
% |
|
|
15.3 |
% |
|
|
12.8 |
% |
|
|
14.6 |
% |
|
|
15.3 |
% |
Corporate |
|
(8.4 |
) |
|
|
(6.9 |
) |
|
|
(7.0 |
) |
|
|
(8.3 |
) |
|
|
(6.3 |
) |
|
|
(6.8 |
) |
Total segment operating income |
|
9.4 |
|
|
|
5.5 |
|
|
|
9.4 |
|
|
|
9.8 |
|
|
|
6.2 |
|
|
|
10.3 |
|
Other items not in segment operating income (1) |
|
(0.5 |
) |
|
|
0.2 |
|
|
|
(1.5 |
) |
|
|
— |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
Total operating income |
$ |
8.9 |
|
|
$ |
5.7 |
|
|
$ |
7.9 |
|
|
$ |
9.8 |
|
|
$ |
6.4 |
|
|
$ |
10.1 |
|
Operating Margin % |
|
4.3 |
% |
|
|
3.2 |
% |
|
|
3.8 |
% |
|
|
4.7 |
% |
|
|
3.6 |
% |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Drilling and Completions |
$ |
4.5 |
|
|
$ |
18.4 |
|
|
$ |
4.4 |
|
|
$ |
14.5 |
|
|
$ |
11.6 |
|
|
$ |
11.5 |
|
EBITDA Margin % |
|
3.6 |
% |
|
|
15.5 |
% |
|
|
3.8 |
% |
|
|
11.7 |
% |
|
|
9.8 |
% |
|
|
9.8 |
% |
Artificial Lift and Downhole |
|
17.2 |
|
|
|
10.2 |
|
|
|
19.3 |
|
|
|
17.4 |
|
|
|
10.1 |
|
|
|
19.7 |
|
EBITDA Margin % |
|
20.4 |
% |
|
|
16.9 |
% |
|
|
21.9 |
% |
|
|
20.7 |
% |
|
|
16.7 |
% |
|
|
22.3 |
% |
Corporate |
|
(10.6 |
) |
|
|
(5.7 |
) |
|
|
(5.2 |
) |
|
|
(6.1 |
) |
|
|
(5.1 |
) |
|
|
(5.4 |
) |
Total EBITDA |
$ |
11.1 |
|
|
$ |
22.9 |
|
|
$ |
18.5 |
|
|
$ |
25.8 |
|
|
$ |
16.6 |
|
|
$ |
25.8 |
|
EBITDA Margin % |
|
5.3 |
% |
|
|
12.8 |
% |
|
|
9.0 |
% |
|
|
12.4 |
% |
|
|
9.3 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(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 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) |
||||||||||||
|
Nine months ended |
|
Nine months ended |
||||||||||||
(in millions of dollars) |
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Drilling and Completions |
$ |
359.7 |
|
|
$ |
376.0 |
|
|
$ |
359.7 |
|
|
$ |
376.0 |
|
Artificial Lift and Downhole |
|
255.7 |
|
|
|
177.7 |
|
|
|
255.7 |
|
|
|
177.7 |
|
Eliminations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total revenue |
$ |
615.4 |
|
|
$ |
553.7 |
|
|
$ |
615.4 |
|
|
$ |
553.7 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
|
|
|
|
|
|
||||||||
Drilling and Completions |
$ |
14.5 |
|
|
$ |
15.5 |
|
|
$ |
16.7 |
|
|
$ |
16.2 |
|
Operating Margin % |
|
4.0 |
% |
|
|
4.1 |
% |
|
|
4.6 |
% |
|
|
4.3 |
% |
Artificial Lift and Downhole |
|
36.0 |
|
|
|
24.1 |
|
|
|
36.0 |
|
|
|
24.6 |
|
Operating Margin % |
|
14.1 |
% |
|
|
13.6 |
% |
|
|
14.1 |
% |
|
|
13.8 |
% |
Corporate |
|
(22.6 |
) |
|
|
(20.5 |
) |
|
|
(22.1 |
) |
|
|
(19.7 |
) |
Total segment operating income |
|
27.9 |
|
|
|
19.1 |
|
|
|
30.6 |
|
|
|
21.1 |
|
Other items not in segment operating income(1) |
|
(7.8 |
) |
|
|
(0.2 |
) |
|
|
0.1 |
|
|
|
0.7 |
|
Total operating income |
$ |
20.1 |
|
|
$ |
18.9 |
|
|
$ |
30.7 |
|
|
$ |
21.8 |
|
Operating Margin % |
|
3.3 |
% |
|
|
3.4 |
% |
|
|
5.0 |
% |
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
||||||||
EBITDA (2) |
|
|
|
|
|
|
|
||||||||
Drilling and Completions |
$ |
22.1 |
|
|
$ |
36.3 |
|
|
$ |
39.7 |
|
|
$ |
38.8 |
|
EBITDA Margin % |
|
6.1 |
% |
|
|
9.7 |
% |
|
|
11.0 |
% |
|
|
10.3 |
% |
Artificial Lift and Downhole |
|
54.3 |
|
|
|
27.7 |
|
|
|
55.2 |
|
|
|
28.8 |
|
EBITDA Margin % |
|
21.2 |
% |
|
|
15.6 |
% |
|
|
21.6 |
% |
|
|
16.2 |
% |
Corporate |
|
(30.9 |
) |
|
|
(20.2 |
) |
|
|
(17.1 |
) |
|
|
(16.0 |
) |
Total EBITDA |
$ |
45.5 |
|
|
$ |
43.8 |
|
|
$ |
77.8 |
|
|
$ |
51.6 |
|
EBITDA Margin % |
|
7.4 |
% |
|
|
7.9 |
% |
|
|
12.6 |
% |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
||||||||
(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 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) |
September 30,
|
|
September 30,
|
|
June 30,
|
||||||
Orders |
|
|
|
|
|
||||||
Drilling and Completions |
$ |
129.5 |
|
$ |
139.9 |
|
$ |
110.1 |
|||
Artificial Lift and Downhole |
|
76.3 |
|
|
|
58.9 |
|
|
|
70.0 |
|
Total orders |
$ |
205.8 |
|
|
$ |
198.8 |
|
|
$ |
180.1 |
|
|
|
|
|
|
|
||||||
Revenue |
|
|
|
|
|
||||||
Drilling and Completions |
$ |
123.6 |
|
|
$ |
118.9 |
|
|
$ |
117.0 |
|
Artificial Lift and Downhole |
|
84.2 |
|
|
|
60.4 |
|
|
|
88.2 |
|
Total revenue |
$ |
207.8 |
|
|
$ |
179.3 |
|
|
$ |
205.2 |
|
|
|
|
|
|
|
||||||
Book to bill ratio (1) |
|
|
|
|
|
||||||
Drilling and Completions |
|
1.05 |
|
|
|
1.18 |
|
|
|
0.94 |
|
Artificial Lift and Downhole |
|
0.91 |
|
|
|
0.98 |
|
|
|
0.79 |
|
Total book to bill ratio |
|
0.99 |
|
|
|
1.11 |
|
|
|
0.88 |
|
|
|
|
|
|
|
||||||
(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 |
||||||||||||||||||||||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
June 30, 2024 |
||||||||||||||||||||||||||||||
(in millions, except per share information) |
Operating income |
|
EBITDA (1) |
|
Net income (loss) |
|
Operating income |
|
EBITDA (1) |
|
Net income (loss) |
|
Operating income |
|
EBITDA (1) |
|
Net income (loss) |
||||||||||||||||||
As reported |
$ |
8.9 |
|
|
$ |
11.1 |
|
|
$ |
(14.8 |
) |
|
$ |
5.7 |
|
|
$ |
22.9 |
|
|
$ |
8.0 |
|
|
$ |
7.9 |
|
|
$ |
18.5 |
|
|
$ |
(6.7 |
) |
% of revenue |
|
4.3 |
% |
|
|
5.3 |
% |
|
|
|
|
3.2 |
% |
|
|
12.8 |
% |
|
|
|
|
3.8 |
% |
|
|
9.0 |
% |
|
|
||||||
Restructuring and other costs |
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
1.0 |
|
Transaction expenses |
|
0.6 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.2 |
|
|
|
1.2 |
|
|
|
1.2 |
|
Inventory and other working capital adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation expense |
|
— |
|
|
|
2.2 |
|
|
|
— |
|
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
— |
|
|
|
1.5 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
1.8 |
|
|
|
1.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.5 |
|
Loss on foreign exchange, net (2) |
|
— |
|
|
|
9.8 |
|
|
|
9.8 |
|
|
|
— |
|
|
|
(8.2 |
) |
|
|
(8.2 |
) |
|
|
— |
|
|
|
3.1 |
|
|
|
3.1 |
|
As adjusted (1) |
$ |
9.8 |
|
|
$ |
25.8 |
|
|
$ |
(2.3 |
) |
|
$ |
6.4 |
|
|
$ |
16.6 |
|
|
$ |
0.5 |
|
|
$ |
10.1 |
|
|
$ |
25.8 |
|
|
$ |
(0.9 |
) |
% of revenue |
|
4.7 |
% |
|
|
12.4 |
% |
|
|
|
|
3.6 |
% |
|
|
9.3 |
% |
|
|
|
|
4.9 |
% |
|
|
12.6 |
% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted shares outstanding as reported |
|
|
|
|
|
12.3 |
|
|
|
|
|
|
|
10.4 |
|
|
|
|
|
|
|
12.3 |
|
||||||||||||
Diluted shares outstanding as adjusted |
|
|
|
|
|
12.3 |
|
|
|
|
|
|
|
10.4 |
|
|
|
|
|
|
|
12.3 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted EPS - as reported |
|
|
|
|
$ |
(1.20 |
) |
|
|
|
|
|
$ |
0.77 |
|
|
|
|
|
|
$ |
(0.54 |
) |
||||||||||||
Diluted EPS - as adjusted |
|
|
|
|
$ |
(0.19 |
) |
|
|
|
|
|
$ |
0.05 |
|
|
|
|
|
|
$ |
(0.07 |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(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 |
|||||||||||||||||||||||
|
|
||||||||||||||||||||||
|
Nine months ended |
||||||||||||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
||||||||||||||||||||
(in millions, except per share information) |
Operating income |
|
EBITDA (1) |
|
Net income (loss) |
|
Operating income |
|
EBITDA (1) |
|
Net income (loss) |
||||||||||||
As reported |
$ |
20.1 |
|
|
$ |
45.5 |
|
|
$ |
(31.8 |
) |
|
$ |
18.9 |
|
|
$ |
43.8 |
|
|
$ |
(2.1 |
) |
% of revenue |
|
3.3 |
% |
|
|
7.4 |
% |
|
|
|
|
3.4 |
% |
|
|
7.9 |
% |
|
|
||||
Restructuring and other costs |
|
2.9 |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
3.4 |
|
|
|
3.4 |
|
|
|
3.4 |
|
Transaction expenses |
|
7.7 |
|
|
|
7.7 |
|
|
|
7.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Inventory and other working capital adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
Stock-based compensation expense |
|
— |
|
|
|
5.2 |
|
|
|
— |
|
|
|
— |
|
|
|
3.3 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
2.3 |
|
|
|
2.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on foreign exchange, net (2) |
|
— |
|
|
|
14.2 |
|
|
|
14.2 |
|
|
|
— |
|
|
|
1.6 |
|
|
|
1.6 |
|
As adjusted (1) |
$ |
30.7 |
|
|
$ |
77.8 |
|
|
$ |
(4.7 |
) |
|
$ |
21.8 |
|
|
$ |
51.6 |
|
|
$ |
2.4 |
|
% of revenue |
|
5.0 |
% |
|
|
12.6 |
% |
|
|
|
|
3.9 |
% |
|
|
9.3 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted shares outstanding as reported |
|
|
|
|
|
12.3 |
|
|
|
|
|
|
|
10.2 |
|
||||||||
Diluted shares outstanding as adjusted |
|
|
|
|
|
12.3 |
|
|
|
|
|
|
|
10.2 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted EPS - as reported |
|
|
|
|
$ |
(2.59 |
) |
|
|
|
|
|
$ |
(0.21 |
) |
||||||||
Diluted EPS - as adjusted |
|
|
|
|
$ |
(0.38 |
) |
|
|
|
|
|
$ |
0.24 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(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) |
September 30,
|
|
September 30,
|
|
June 30,
|
||||||
EBITDA reconciliation (1) |
|
|
|
|
|
||||||
Net income (loss) |
$ |
(14.8 |
) |
|
$ |
8.0 |
|
$ |
(6.7 |
) |
|
Interest expense |
|
7.7 |
|
|
|
4.5 |
|
|
|
8.7 |
|
Depreciation and amortization |
|
13.6 |
|
|
|
9.0 |
|
|
|
14.0 |
|
Income tax expense |
|
4.6 |
|
|
|
1.4 |
|
|
|
2.5 |
|
EBITDA |
$ |
11.1 |
|
|
$ |
22.9 |
|
|
$ |
18.5 |
|
|
|
|
|
|
|
||||||
(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 |
|||||||
|
Nine months ended |
||||||
(in millions of dollars) |
September 30,
|
|
September 30,
|
||||
EBITDA reconciliation (1) |
|
|
|
||||
Net income (loss) |
$ |
(31.8 |
) |
|
$ |
(2.1 |
) |
Interest expense |
|
25.1 |
|
|
|
13.7 |
|
Depreciation and amortization |
|
41.6 |
|
|
|
26.0 |
|
Income tax expense |
|
10.6 |
|
|
|
6.2 |
|
EBITDA |
$ |
45.5 |
|
|
$ |
43.8 |
|
|
|
|
|
||||
(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 5 - Adjusting items |
|||||||||||
|
|
|
|
|
|
||||||
|
Three months ended |
||||||||||
(in millions of dollars) |
September 30,
|
|
September 30,
|
|
June 30,
|
||||||
Free cash flow, before acquisitions, reconciliation (1) |
|
|
|
|
|
||||||
Net cash provided by (used in) operating activities |
$ |
25.6 |
|
|
$ |
26.4 |
|
|
$ |
23.1 |
|
Capital expenditures for property and equipment |
|
(1.3 |
) |
|
|
(2.7 |
) |
|
|
(1.5 |
) |
Proceeds from (Payments related to) sale of property and equipment |
|
0.2 |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
Free cash flow, before acquisitions |
$ |
24.5 |
|
|
$ |
23.9 |
|
|
$ |
21.4 |
|
|
|
|
|
|
|
||||||
(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. |
|||||||
Reconciliation of GAAP to non-GAAP financial information |
|||||||
(Unaudited) |
|||||||
Table 6 - Adjusting items |
|||||||
|
|
|
|
||||
|
Nine months ended |
||||||
(in millions of dollars) |
September 30,
|
|
September 30,
|
||||
Free cash flow, before acquisitions, reconciliation (1) |
|
|
|
||||
Net cash provided by (used in) operating activities |
$ |
53.7 |
|
|
$ |
(3.1 |
) |
Capital expenditures for property and equipment |
|
(5.7 |
) |
|
|
(5.5 |
) |
Proceeds from sale of property and equipment |
|
0.2 |
|
|
|
1.3 |
|
Free cash flow, before acquisitions |
$ |
48.2 |
|
|
$ |
(7.3 |
) |
|
|
|
|
||||
(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) |
September 30, 2024 |
|
September 30, 2023 |
|
June 30, 2024 |
||||||||||||
Revenue |
$ |
% |
|
$ |
% |
|
$ |
% |
|||||||||
Drilling |
$ |
35.8 |
17.2 |
% |
|
$ |
41.8 |
23.3 |
% |
|
$ |
35.5 |
17.3 |
% |
|||
Subsea |
|
20.9 |
|
10.1 |
% |
|
|
14.7 |
|
8.2 |
% |
|
|
16.8 |
|
8.2 |
% |
Stimulation and Intervention |
|
38.0 |
|
18.3 |
% |
|
|
32.5 |
|
18.1 |
% |
|
|
37.2 |
|
18.1 |
% |
Coiled Tubing |
|
28.9 |
|
13.9 |
% |
|
|
29.9 |
|
16.7 |
% |
|
|
27.5 |
|
13.4 |
% |
Drilling and Completions |
|
123.6 |
|
59.5 |
% |
|
|
118.9 |
|
66.3 |
% |
|
|
117.0 |
|
57.0 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Downhole |
|
50.6 |
|
24.4 |
% |
|
|
23.5 |
|
13.1 |
% |
|
|
53.1 |
|
25.9 |
% |
Production Equipment |
|
18.0 |
|
8.7 |
% |
|
|
21.7 |
|
12.1 |
% |
|
|
18.1 |
|
8.8 |
% |
Valve Solutions |
|
15.6 |
|
7.4 |
% |
|
|
15.2 |
|
8.5 |
% |
|
|
17.0 |
|
8.3 |
% |
Artificial Lift and Downhole |
|
84.2 |
|
40.5 |
% |
|
|
60.4 |
|
33.7 |
% |
|
|
88.2 |
|
43.0 |
% |
Eliminations |
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
$ |
207.8 |
|
100.0 |
% |
|
$ |
179.3 |
|
100.0 |
% |
|
$ |
205.2 |
|
100.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031493421/en/
Rob Kukla
Director of Investor Relations
281.994.3763
rob.kukla@f-e-t.com
Source: Forum Energy Technologies, Inc.
FAQ
What was FET's revenue growth in Q3 2024?
How much free cash flow did FET generate in Q3 2024?
What is FET's updated free cash flow guidance for 2024?
What are FET's Q4 2024 revenue and EBITDA projections?
