第99.1展示文本
forum energy technologies宣布
2024年第二季度业绩发布；提高自由现金流指引
•营业收入：20500万美元，同比增长11%
•净亏损：700万美元，或每稀释股份0.54美元
•调整后的净亏损为100万美元，每股摊薄盈利为0.07美元
•调整后EBITDA：2600万美元，增长48% 同比。
•经营现金流和自由现金流分别为2300万美元和2100万美元
•提高2024财年自由现金流指导：5,000万美元至7,000万美元
得克萨斯州休斯顿，2024年8月1日——论坛能源技术公司（纽约证券交易所代码：FET）今天宣布，2024年第二季度收入为2.05亿美元，增长1％ 尽管全球钻机数量下降了5％，但仍连续增长。订单连续下降12％，至1.8亿美元，账面与账单的比率为88％。2024 年第二季度的净亏损为 700 万美元，或每人 0.54 美元每股摊薄后净亏损为1000万美元，摊薄每股亏损0.85美元，而2024年第一季度的净亏损为0.85美元。
2024年第二季度特别项目，基于税前，包括与Variperm收购相关的100万美元交易费用，100万美元的重组和其他费用，300万美元的汇率期货损失，以及100万美元的债务清偿损失。每股稀释收益排除特别项目0.47美元，本季度调整后净亏损为每股稀释0.07美元，而2024年第一季度调整后净亏损为每股稀释0.12美元。详细的GAAP与非GAAP财务信息对照请参阅表1-6。
尼尔·卢克斯，总裁兼首席执行官，表示：“营业收入和调整后的EBITDA均位于我们的指导区间内，调整后的EBITDA利润率保持在约13%左右。我们在本季度实现了强劲的自由现金流为2100万美元，并宣布赎回和回购我们2025年到期的7300万美元债券。鉴于我们强劲的上半年业绩，我们将我们2024财年全年的自由现金流指导提高到50至7000万美元之间。我们致力于在2025年中期前偿还我们2025年到期的债券和Variperm卖方贷款的未偿余额。”
“加拿大和国际市场展望与我们的预期一致。美国石油钻机数量和水力压裂活动在第二季度出现下降趋势，并预计将在下半年继续下降。今年，我们预计美国石油钻机数量将下降15%。与我们最初预期的下降5%相比，这代表了更大的下降幅度。然而，我们的国际业务板块、Variperm收购以及我们的“跑赢市场”策略应该有助于缓解这种美国行业的疲软。”
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因此，我们保持了指引的底端，但将顶端下调1000万美元。我们2024全年调整后的EBITDA指引现在是1亿到11000万美元。
细分市场结果 （除非另有说明，比较是2024年第二季度与第一 季度 2024)
钻井和完井业务的营业收入为11700万美元，下降了2%。 主要与ROV、电缆管理系统和处理铁销量下降有关。这种下降部分地被扭曲管和动力端销售的增加所抵消。订单为11000万美元，下降了6%， 主要是由于钻井和刺激相关的资本设备，部分被更高的扭曲管订单所抵消。业务调整后的EBITDA为1200万美元， 16% 下降，主要是由于营业收入减少和不利的产品组合。钻井和完井业务主要专注于为全球钻井作业、深海、扭曲管、金属线和刺激市场提供的资本设备和消耗品。
人工升降机和井下板块收入为8,800万美元，主要增长6％y 与我们的阀门产品销售的增长有关。 由于上一季度生产设备订单增加，订单为7,000万美元，下降了20％。分部调整后的息税折旧摊销前利润为2000万美元，增长9％， 主要归功于井下产品线中良好的产品组合。人工升降机和井下部门设计、制造和供应用于油井建造、人工升降机以及石油和天然气加工的产品。
FET (forum energy technologies)是一家全球制造业-半导体公司，服务于石油、天然气、工业和可再生能源行业。总部位于得克萨斯州休斯顿，FET提供增值解决方案，旨在改善客户运营的安全性、效率和环境影响。欲了解更多信息，请访问 www.f-e-t.com.
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新注册的证券 前瞻性陈述和其他法律披露
本新闻稿包含《1933年证券法》第27A条和《1934年证券交易法》第21E条规定的前瞻性陈述。 除了历史事实陈述外，本新闻稿中包含的所有其他陈述，涉及公司预计、相信或预期未来可能发生的活动、事件或发展，均属于前瞻性陈述。 不限制前述内容的一般性，本新闻稿中包含的前瞻性陈述特别包括公司计划、战略、目标和预期的财务和运营结果，包括关于公司未来财务状况、流动性和资本资源、运营、业绩、收购、回报、资本支出预算、新产品开发活动、成本和本新闻稿中包含的其他指引。
这些声明基于公司根据管理层的经验和对历史趋势、当前状况、预期未来发展以及其他认为合适的因素的看法所做的某些假设。此类声明受到多项假设、风险和不确定性的影响，其中许多超出了公司的控制范围，这些可能导致实际结果与前瞻性声明所暗示或表达的结果存在重大差异。其中包括石油和天然气价格的波动性、油田开发活动水平、原材料和专业设备的供应情况、公司及时交付积压订单的能力、熟练和合格劳动力的供应、石油和天然气行业的竞争、对石油和天然气行业的政府监管和税收、公司实施新技术和服务的能力、资金的供应和条件、以及涉及公司业务的环保法规或诉讼的不确定性以及其他影响公司业务的法律或监管发展的重要因素。这些因素可能导致实际结果与公司在其向美国证券交易委员会提交的文件中描述的投射结果存在重大差异。
任何前瞻性声明仅适用于该声明发表的日期，公司不承担纠正或更新任何前瞻性声明的义务，无论是因为新信息、未来事件还是其他原因，除非适用法律有要求。
Company Contact
Rob Kukla
Director of Investor Relations
281.994.3763
rob.kukla@f-e-t.com
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| Forum Energy Technologies, Inc. | |||||||||||||||||
| Condensed consolidated statements of income (loss) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three months ended | |||||||||||||||||
| June 30, | March 31, | ||||||||||||||||
| (in millions, except per share information) | 2024 | 2023 | 2024 | ||||||||||||||
| Revenue | $ | 205.2 | $ | 185.4 | $ | 202.4 | |||||||||||
| Cost of sales | 142.1 | 134.1 | 138.6 | ||||||||||||||
| Gross profit | 63.1 | 51.3 | 63.8 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Selling, general and administrative expenses | 53.7 | 44.4 | 54.7 | ||||||||||||||
| Transaction expenses | 1.2 | — | 5.9 | ||||||||||||||
| Loss on disposal of assets and other | 0.3 | 0.5 | — | ||||||||||||||
| Total operating expenses | 55.2 | 44.9 | 60.6 | ||||||||||||||
| Operating income | 7.9 | 6.4 | 3.2 | ||||||||||||||
| Other expense | |||||||||||||||||
| Interest expense | 8.7 | 4.7 | 8.8 | ||||||||||||||
| Loss on extinguishment of debt | 0.5 | — | — | ||||||||||||||
| Foreign exchange losses and other, net | 2.9 | 6.4 | 1.2 | ||||||||||||||
| Total other expense | 12.1 | 11.1 | 10.0 | ||||||||||||||
| Loss before income taxes | (4.2) | (4.7) | (6.8) | ||||||||||||||
| Income tax expense | 2.5 | 1.9 | 3.5 | ||||||||||||||
Net income (loss) (1) | $ | (6.7) | $ | (6.6) | $ | (10.3) | |||||||||||
| Weighted average shares outstanding | |||||||||||||||||
| Basic | 12.3 | 10.2 | 12.2 | ||||||||||||||
| Diluted | 12.3 | 10.2 | 12.2 | ||||||||||||||
| Loss per share | |||||||||||||||||
| Basic | $ | (0.54) | $ | (0.64) | $ | (0.85) | |||||||||||
| Diluted | $ | (0.54) | $ | (0.64) | $ | (0.85) | |||||||||||
(1) Refer to Table 1 for schedule of adjusting items. | |||||||||||||||||
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| Forum Energy Technologies, Inc. | |||||||||||
| Condensed consolidated statements of income (loss) | |||||||||||
| (Unaudited) | |||||||||||
| Six months ended | |||||||||||
| June 30, | |||||||||||
| (in millions, except per share information) | 2024 | 2023 | |||||||||
| Revenue | $ | 407.6 | $ | 374.4 | |||||||
| Cost of sales | 280.8 | 271.0 | |||||||||
| Gross profit | 126.8 | 103.4 | |||||||||
| Operating expenses | |||||||||||
| Selling, general and administrative expenses | 108.4 | 89.9 | |||||||||
| Transaction expenses | 7.1 | — | |||||||||
| Loss on disposal of assets and other | 0.2 | 0.2 | |||||||||
| Total operating expenses | 115.7 | 90.1 | |||||||||
| Operating income | 11.1 | 13.3 | |||||||||
| Other expense | |||||||||||
| Interest expense | 17.4 | 9.2 | |||||||||
| Loss on extinguishment of debt | 0.5 | — | |||||||||
| Foreign exchange losses and other, net | 4.2 | 9.5 | |||||||||
| Total other expense | 22.1 | 18.7 | |||||||||
| Loss before income taxes | (11.0) | (5.4) | |||||||||
| Income tax expense | 6.0 | 4.7 | |||||||||
Net income (loss) (1) | $ | (17.0) | $ | (10.1) | |||||||
| Weighted average shares outstanding | |||||||||||
| Basic | 12.3 | 10.2 | |||||||||
| Diluted | 12.3 | 10.2 | |||||||||
| Loss per share | |||||||||||
| Basic | $ | (1.39) | $ | (0.99) | |||||||
| Diluted | $ | (1.39) | $ | (0.99) | |||||||
(1) Refer to Table 2 for schedule of adjusting items. | |||||||||||
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| Forum Energy Technologies, Inc. | |||||||||||
| Condensed consolidated balance sheets | |||||||||||
| (Unaudited) | |||||||||||
| June 30, | December 31, | ||||||||||
| (in millions of dollars) | 2024 | 2023 | |||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 31.8 | $ | 46.2 | |||||||
| Accounts receivable—trade, net | 164.2 | 146.7 | |||||||||
| Inventories, net | 291.1 | 299.6 | |||||||||
| Other current assets | 34.2 | 37.1 | |||||||||
| Total current assets | 521.3 | 529.6 | |||||||||
| Property and equipment, net of accumulated depreciation | 85.1 | 61.4 | |||||||||
| Operating lease assets | 52.5 | 55.4 | |||||||||
| Goodwill and other intangible assets, net | 312.5 | 168.0 | |||||||||
| Other long-term assets | 5.4 | 6.7 | |||||||||
| Total assets | $ | 976.8 | $ | 821.1 | |||||||
| Liabilities and equity | |||||||||||
| Current liabilities | |||||||||||
| Current portion of long-term debt | $ | 6.5 | $ | 1.2 | |||||||
| Other current liabilities | 187.6 | 203.1 | |||||||||
| Total current liabilities | 194.1 | 204.3 | |||||||||
| Long-term debt, net of current portion | 246.3 | 129.6 | |||||||||
| Other long-term liabilities | 94.4 | 74.5 | |||||||||
| Total liabilities | 534.8 | 408.4 | |||||||||
| Total equity | 442.0 | 412.7 | |||||||||
| Total liabilities and equity | $ | 976.8 | $ | 821.1 | |||||||
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| Forum Energy Technologies, Inc. | |||||||||||
| Condensed consolidated cash flow information | |||||||||||
| (Unaudited) | |||||||||||
| Six months ended June 30, | |||||||||||
| (in millions of dollars) | 2024 | 2023 | |||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | (17.0) | $ | (10.1) | |||||||
| Depreciation and amortization | 27.9 | 17.1 | |||||||||
| Inventory write down | 1.8 | 1.6 | |||||||||
| Loss on extinguishment of debt | 0.5 | — | |||||||||
| Other noncash items and changes in working capital | 14.9 | (38.1) | |||||||||
| Net cash provided by (used in) operating activities | 28.1 | (29.5) | |||||||||
| Cash flows from investing activities | |||||||||||
| Capital expenditures for property and equipment | (4.4) | (2.8) | |||||||||
| Proceeds from sale of property and equipment | — | 1.1 | |||||||||
| Payments related to business acquisition | (150.1) | — | |||||||||
| Net cash used in investing activities | (154.5) | (1.7) | |||||||||
| Cash flows from financing activities | |||||||||||
| Borrowings of debt | 445.9 | 216.8 | |||||||||
| Repayments of debt | (326.8) | (207.3) | |||||||||
| Repurchases of stock | — | (3.5) | |||||||||
| Payment of withheld taxes on stock-based compensation plans | (1.1) | (1.9) | |||||||||
| Deferred financing costs | (3.1) | — | |||||||||
| Net cash provided by financing activities | 114.9 | 4.1 | |||||||||
| Effect of exchange rate changes on cash | (2.8) | 0.8 | |||||||||
| Net decrease in cash, cash equivalents and restricted cash | $ | (14.3) | $ | (26.3) | |||||||
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| Forum Energy Technologies, Inc. | |||||||||||||||||||||||||||||||||||
| Supplemental schedule - Segment information | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| As Reported | As Adjusted (3) | ||||||||||||||||||||||||||||||||||
| Three months ended | Three months ended | ||||||||||||||||||||||||||||||||||
| (in millions of dollars) | June 30, 2024 | June 30, 2023 | March 31, 2024 | June 30, 2024 | June 30, 2023 | March 31, 2024 | |||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||
| Drilling and Completions | $ | 117.0 | $ | 130.3 | $ | 119.1 | $ | 117.0 | $ | 130.3 | $ | 119.1 | |||||||||||||||||||||||
| Artificial Lift and Downhole | 88.2 | 55.1 | 83.3 | 88.2 | 55.1 | 83.3 | |||||||||||||||||||||||||||||
| Eliminations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total revenue | $ | 205.2 | $ | 185.4 | $ | 202.4 | $ | 205.2 | $ | 185.4 | $ | 202.4 | |||||||||||||||||||||||
| Operating income (loss) | |||||||||||||||||||||||||||||||||||
| Drilling and Completions | $ | 2.9 | $ | 6.6 | $ | 4.6 | $ | 3.6 | $ | 6.6 | $ | 5.8 | |||||||||||||||||||||||
| Operating Margin % | 2.5 | % | 5.1 | % | 3.9 | % | 3.1 | % | 5.1 | % | 4.9 | % | |||||||||||||||||||||||
| Artificial Lift and Downhole | 13.5 | 7.0 | 11.8 | 13.5 | 7.2 | 11.7 | |||||||||||||||||||||||||||||
| Operating Margin % | 15.3 | % | 12.7 | % | 14.2 | % | 15.3 | % | 13.1 | % | 14.0 | % | |||||||||||||||||||||||
| Corporate | (7.0) | (6.7) | (7.3) | (6.8) | (6.6) | (6.9) | |||||||||||||||||||||||||||||
| Total segment operating income | 9.4 | 6.9 | 9.1 | 10.3 | 7.2 | 10.6 | |||||||||||||||||||||||||||||
Other items not in segment operating income (1) | (1.5) | (0.5) | (5.9) | (0.2) | 0.3 | 0.1 | |||||||||||||||||||||||||||||
| Total operating income | $ | 7.9 | $ | 6.4 | $ | 3.2 | $ | 10.1 | $ | 7.5 | $ | 10.7 | |||||||||||||||||||||||
| Operating Margin % | 3.8 | % | 3.5 | % | 1.6 | % | 4.9 | % | 4.0 | % | 5.3 | % | |||||||||||||||||||||||
EBITDA (2) | |||||||||||||||||||||||||||||||||||
| Drilling and Completions | $ | 4.4 | $ | 8.4 | $ | 13.1 | $ | 11.5 | $ | 13.7 | $ | 13.7 | |||||||||||||||||||||||
| EBITDA Margin % | 3.8 | % | 6.4 | % | 11.0 | % | 9.8 | % | 10.5 | % | 11.5 | % | |||||||||||||||||||||||
| Artificial Lift and Downhole | 19.3 | 7.4 | 17.7 | 19.7 | 8.6 | 18.0 | |||||||||||||||||||||||||||||
| EBITDA Margin % | 21.9 | % | 13.4 | % | 21.2 | % | 22.3 | % | 15.6 | % | 21.6 | % | |||||||||||||||||||||||
| Corporate | (5.2) | (7.3) | (15.0) | (5.4) | (4.9) | (5.6) | |||||||||||||||||||||||||||||
| Total EBITDA | $ | 18.5 | $ | 8.5 | $ | 15.8 | $ | 25.8 | $ | 17.4 | $ | 26.1 | |||||||||||||||||||||||
| EBITDA Margin % | 9.0 | % | 4.6 | % | 7.8 | % | 12.6 | % | 9.4 | % | 12.9 | % | |||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||||||||
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| Forum Energy Technologies, Inc. | |||||||||||||||||||||||
| Supplemental schedule - Segment information | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| As Reported | As Adjusted (3) | ||||||||||||||||||||||
| Six months ended | Six months ended | ||||||||||||||||||||||
| (in millions of dollars) | June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||||||||
| Revenue | |||||||||||||||||||||||
Drilling and Completions | $ | 236.1 | $ | 257.1 | $ | 236.1 | $ | 257.1 | |||||||||||||||
| Artificial Lift and Downhole | 171.5 | 117.3 | 171.5 | 117.3 | |||||||||||||||||||
| Eliminations | — | — | — | — | |||||||||||||||||||
| Total revenue | $ | 407.6 | $ | 374.4 | $ | 407.6 | $ | 374.4 | |||||||||||||||
| Operating income (loss) | |||||||||||||||||||||||
Drilling and Completions | $ | 7.4 | $ | 11.5 | $ | 9.4 | $ | 12.6 | |||||||||||||||
| Operating Margin % | 3.1 | % | 4.5 | % | 4.0 | % | 4.9 | % | |||||||||||||||
| Artificial Lift and Downhole | 25.2 | 15.6 | 25.2 | 15.8 | |||||||||||||||||||
| Operating Margin % | 14.7 | % | 13.3 | % | 14.7 | % | 13.5 | % | |||||||||||||||
| Corporate | (14.1) | (13.6) | (13.7) | (13.4) | |||||||||||||||||||
| Total segment operating income | 18.5 | 13.5 | 20.9 | 15.0 | |||||||||||||||||||
Other items not in segment operating income(1) | (7.4) | (0.2) | (0.1) | 0.5 | |||||||||||||||||||
| Total operating income | $ | 11.1 | $ | 13.3 | $ | 20.8 | $ | 15.5 | |||||||||||||||
| Operating Margin % | 2.7 | % | 3.6 | % | 5.1 | % | 4.1 | % | |||||||||||||||
EBITDA (2) | |||||||||||||||||||||||
Drilling and Completions | $ | 17.6 | $ | 17.9 | $ | 25.2 | $ | 27.2 | |||||||||||||||
| EBITDA Margin % | 7.5 | % | 7.0 | % | 10.7 | % | 10.6 | % | |||||||||||||||
| Artificial Lift and Downhole | 37.0 | 17.5 | 37.7 | 18.7 | |||||||||||||||||||
| EBITDA Margin % | 21.6 | % | 14.9 | % | 22.0 | % | 15.9 | % | |||||||||||||||
| Corporate | (20.3) | (14.5) | (11.0) | (10.9) | |||||||||||||||||||
| Total EBITDA | $ | 34.3 | $ | 20.9 | $ | 51.9 | $ | 35.0 | |||||||||||||||
| EBITDA Margin % | 8.4 | % | 5.6 | % | 12.7 | % | 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. | |||||||||||||||||||||||
9
| Forum Energy Technologies, Inc. | |||||||||||||||||
| Supplemental schedule - Orders information | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three months ended | |||||||||||||||||
| (in millions of dollars) | June 30, 2024 | June 30, 2023 | March 31, 2024 | ||||||||||||||
| Orders | |||||||||||||||||
| Drilling and Completions | $ | 110.1 | $ | 121.9 | $ | 116.6 | |||||||||||
| Artificial Lift and Downhole | 70.0 | 64.4 | 87.8 | ||||||||||||||
| Total orders | $ | 180.1 | $ | 186.3 | $ | 204.4 | |||||||||||
| Revenue | |||||||||||||||||
| Drilling and Completions | $ | 117.0 | $ | 130.3 | $ | 119.1 | |||||||||||
| Artificial Lift and Downhole | 88.2 | 55.1 | 83.3 | ||||||||||||||
| Total revenue | $ | 205.2 | $ | 185.4 | $ | 202.4 | |||||||||||
Book to bill ratio (1) | |||||||||||||||||
| Drilling and Completions | 0.94 | 0.94 | 0.98 | ||||||||||||||
| Artificial Lift and Downhole | 0.79 | 1.17 | 1.05 | ||||||||||||||
| Total book to bill ratio | 0.88 | 1.00 | 1.01 | ||||||||||||||
(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. | |||||||||||||||||
10
| Forum Energy Technologies, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of GAAP to non-GAAP financial information | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Table 1 - Adjusting items | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | March 31, 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 | $ | 7.9 | $ | 18.5 | $ | (6.7) | $ | 6.4 | $ | 8.5 | $ | (6.6) | $ | 3.2 | $ | 15.8 | $ | (10.3) | |||||||||||||||||||||||||||||||||||
| % of revenue | 3.8 | % | 9.0 | % | 3.5 | % | 4.6 | % | 1.6 | % | 7.8 | % | |||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | 1.0 | 1.0 | 1.0 | 1.5 | 1.5 | 1.5 | 1.6 | 1.6 | 1.6 | ||||||||||||||||||||||||||||||||||||||||||||
| Transaction expenses | 1.2 | 1.2 | 1.2 | — | — | — | 5.9 | 5.9 | 5.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Inventory and other working capital adjustments | — | — | — | (0.4) | (0.4) | (0.4) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | 1.5 | — | — | 1.3 | — | — | 1.5 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | 0.5 | 0.5 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Loss on foreign exchange, net (2) | — | 3.1 | 3.1 | — | 6.5 | 6.5 | — | 1.3 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||
As adjusted (1) | $ | 10.1 | $ | 25.8 | $ | (0.9) | $ | 7.5 | $ | 17.4 | $ | 1.0 | $ | 10.7 | $ | 26.1 | $ | (1.5) | |||||||||||||||||||||||||||||||||||
| % of revenue | 4.9 | % | 12.6 | % | 4.0 | % | 9.4 | % | 5.3 | % | 12.9 | % | |||||||||||||||||||||||||||||||||||||||||
| Diluted shares outstanding as reported | 12.3 | 10.2 | 12.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted shares outstanding as adjusted | 12.3 | 10.2 | 12.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS - as reported | $ | (0.54) | $ | (0.64) | $ | (0.85) | |||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS - as adjusted | $ | (0.07) | $ | 0.10 | $ | (0.12) | |||||||||||||||||||||||||||||||||||||||||||||||
(1) The Company believes that the presentation of EBITDA, adjusted EBITDA, adjusted operating loss, adjusted net loss and adjusted diluted EPS are useful to the Company's investors because (i) each of these financial metrics are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the Company's normal operating results and (ii) EBITDA is an appropriate measure of evaluating the company's operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company's securities and making strategic acquisitions. In addition, these benchmarks are widely used in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Foreign exchange, net primarily relates to cash and receivables denominated in U.S. dollars by some of our non-U.S. subsidiaries that report in a local currency, and therefore the loss (gain) has no economic impact in dollar terms. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
11
| Forum Energy Technologies, Inc. | |||||||||||||||||||||||||||||||||||
| Reconciliation of GAAP to non-GAAP financial information | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| Table 2 - Adjusting items | |||||||||||||||||||||||||||||||||||
| Six months ended | |||||||||||||||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||||||||||||||
| (in millions, except per share information) | Operating income | EBITDA (1) | Net income (loss) | Operating income | EBITDA (1) | Net income (loss) | |||||||||||||||||||||||||||||
| As reported | $ | 11.1 | $ | 34.3 | $ | (17.0) | $ | 13.3 | $ | 20.9 | $ | (10.1) | |||||||||||||||||||||||
| % of revenue | 2.7 | % | 8.4 | % | 3.6 | % | 5.6 | % | |||||||||||||||||||||||||||
| Restructuring and other costs | 2.6 | 2.6 | 2.6 | 2.6 | 2.6 | 2.6 | |||||||||||||||||||||||||||||
| Transaction expenses | 7.1 | 7.1 | 7.1 | — | — | — | |||||||||||||||||||||||||||||
| Inventory and other working capital adjustments | — | — | — | (0.4) | (0.4) | (0.4) | |||||||||||||||||||||||||||||
| Stock-based compensation expense | — | 3.0 | — | — | 2.1 | — | |||||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | 0.5 | 0.5 | — | — | — | |||||||||||||||||||||||||||||
Loss on foreign exchange, net (2) | — | 4.4 | 4.4 | — | 9.8 | 9.8 | |||||||||||||||||||||||||||||
As adjusted (1) | $ | 20.8 | $ | 51.9 | $ | (2.4) | $ | 15.5 | $ | 35.0 | $ | 1.9 | |||||||||||||||||||||||
| % of revenue | 5.1 | % | 12.7 | % | 4.1 | % | 9.3 | % | |||||||||||||||||||||||||||
| Diluted shares outstanding as reported | 12.3 | 10.2 | |||||||||||||||||||||||||||||||||
| Diluted shares outstanding as adjusted | 12.3 | 10.2 | |||||||||||||||||||||||||||||||||
| Diluted EPS - as reported | $ | (1.39) | $ | (0.99) | |||||||||||||||||||||||||||||||
| Diluted EPS - as adjusted | $ | (0.20) | $ | 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 U.S. dollars by some of our non-U.S. subsidiaries that report in a local currency, and therefore the loss (gain) has no economic impact in dollar terms. | |||||||||||||||||||||||||||||||||||
12
| Forum Energy Technologies, Inc. | |||||||||||||||||
| Reconciliation of GAAP to non-GAAP financial information | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Table 3 - Adjusting Items | |||||||||||||||||
| Three months ended | |||||||||||||||||
| (in millions of dollars) | June 30, 2024 | June 30, 2023 | March 31, 2024 | ||||||||||||||
EBITDA reconciliation (1) | |||||||||||||||||
| Net loss | $ | (6.7) | $ | (6.6) | $ | (10.3) | |||||||||||
| Interest expense | 8.7 | 4.7 | 8.8 | ||||||||||||||
| Depreciation and amortization | 14.0 | 8.5 | 13.8 | ||||||||||||||
| Income tax expense | 2.5 | 1.9 | 3.5 | ||||||||||||||
| EBITDA | $ | 18.5 | $ | 8.5 | $ | 15.8 | |||||||||||
(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 4 - Adjusting Items | |||||||||||
| Six months ended | |||||||||||
| (in millions of dollars) | June 30, 2024 | June 30, 2023 | |||||||||
EBITDA reconciliation (1) | |||||||||||
| Net loss | $ | (17.0) | $ | (10.1) | |||||||
| Interest expense | 17.4 | 9.2 | |||||||||
| Depreciation and amortization | 27.9 | 17.1 | |||||||||
| Income tax expense | 6.0 | 4.7 | |||||||||
| EBITDA | $ | 34.3 | $ | 20.9 | |||||||
(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. | |||||||||||
13
| Forum Energy Technologies, Inc. | |||||||||||||||||
| Reconciliation of GAAP to non-GAAP financial information | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Table 5 - Adjusting items | |||||||||||||||||
| Three months ended | |||||||||||||||||
| (in millions of dollars) | June 30, 2024 | June 30, 2023 | March 31, 2024 | ||||||||||||||
Free cash flow, before acquisitions, reconciliation (1) | |||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 23.1 | $ | (6.4) | $ | 5.0 | |||||||||||
| Capital expenditures for property and equipment | (1.5) | (1.7) | (2.9) | ||||||||||||||
| Proceeds from (Payments related to) sale of property and equipment | (0.2) | 0.8 | 0.2 | ||||||||||||||
| Free cash flow, before acquisitions | $ | 21.4 | $ | (7.3) | $ | 2.3 | |||||||||||
(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. | |||||||||||
| Reconciliation of GAAP to non-GAAP financial information | |||||||||||
| (Unaudited) | |||||||||||
| Table 6 - Adjusting items | |||||||||||
| Six months ended | |||||||||||
| (in millions of dollars) | June 30, 2024 | June 30, 2023 | |||||||||
Free cash flow, before acquisitions, reconciliation (1) | |||||||||||
| Net cash provided by (used in) operating activities | $ | 28.1 | $ | (29.5) | |||||||
| Capital expenditures for property and equipment | (4.4) | (2.8) | |||||||||
| Proceeds from sale of property and equipment | — | 1.1 | |||||||||
| Free cash flow, before acquisitions | $ | 23.7 | $ | (31.2) | |||||||
(1) The Company believes free cash flow, before acquisitions is an important measure because it encompasses both profitability and capital management in evaluating results. | |||||||||||
14
| Forum Energy Technologies, Inc. | ||||||||||||||||||||||||||
| Supplemental schedule - Product line revenue | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||||
| (in millions of dollars) | June 30, 2024 | June 30, 2023 | March 31, 2024 | |||||||||||||||||||||||
| Revenue | $ | % | $ | % | $ | % | ||||||||||||||||||||
| Drilling | $ | 35.5 | 17.3 | % | $ | 44.9 | 24.2 | % | $ | 36.5 | 17.9 | % | ||||||||||||||
| Subsea | 16.8 | 8.2 | % | 13.3 | 7.2 | % | 21.8 | 10.8 | % | |||||||||||||||||
| Stimulation and Intervention | 37.2 | 18.1 | % | 46.4 | 25.0 | % | 38.6 | 19.1 | % | |||||||||||||||||
| Coiled Tubing | 27.5 | 13.4 | % | 25.7 | 13.9 | % | 22.2 | 11.0 | % | |||||||||||||||||
| Drilling and Completions | 117.0 | 57.0 | % | 130.3 | 70.3 | % | 119.1 | 58.8 | % | |||||||||||||||||
| Downhole | 53.1 | 25.9 | % | 22.1 | 11.9 | % | 52.2 | 25.8 | % | |||||||||||||||||
| Production Equipment | 18.1 | 8.8 | % | 17.7 | 9.5 | % | 18.5 | 9.1 | % | |||||||||||||||||
| Valve Solutions | 17.0 | 8.3 | % | 15.3 | 8.3 | % | 12.6 | 6.3 | % | |||||||||||||||||
| Artificial Lift and Downhole | 88.2 | 43.0 | % | 55.1 | 29.7 | % | 83.3 | 41.2 | % | |||||||||||||||||
| Eliminations | — | — | % | — | — | % | — | — | % | |||||||||||||||||
| Total revenue | $ | 205.2 | 100.0 | % | $ | 185.4 | 100.0 | % | $ | 202.4 | 100.0 | % | ||||||||||||||
15