第99.1展示文本
forum energy technologies宣佈
2024年第二季度業績發佈；提高自由現金流指引
•營業收入：20500萬美元，同比增長11%
•淨虧損：700萬美元，或每稀釋股份0.54美元
•調整後的淨虧損爲100萬美元，每股攤薄盈利爲0.07美元
•調整後EBITDA：2600萬美元，增長48% 同比。
•經營現金流和自由現金流分別爲2300萬美元和2100萬美元
•提高2024財年自由現金流指導：5,000萬美元至7,000萬美元
得克薩斯州休斯頓，2024年8月1日——論壇能源技術公司（紐約證券交易所代碼：FET）今天宣佈，2024年第二季度收入爲2.05億美元，增長1％ 儘管全球鑽機數量下降了5％，但仍連續增長。訂單連續下降12％，至1.8億美元，賬面與賬單的比率爲88％。2024 年第二季度的淨虧損爲 700 萬美元，或每人 0.54 美元每股攤薄後淨虧損爲1000萬美元，攤薄每股虧損0.85美元，而2024年第一季度的淨虧損爲0.85美元。
2024年第二季度特別項目，基於稅前，包括與Variperm收購相關的100萬美元交易費用，100萬美元的重組和其他費用，300萬美元的匯率期貨損失，以及100萬美元的債務清償損失。每股稀釋收益排除特別項目0.47美元，本季度調整後淨虧損爲每股稀釋0.07美元，而2024年第一季度調整後淨虧損爲每股稀釋0.12美元。詳細的GAAP與非GAAP財務信息對照請參閱表1-6。
尼爾·盧克斯，總裁兼首席執行官，表示：「營業收入和調整後的EBITDA均位於我們的指導區間內，調整後的EBITDA利潤率保持在約13%左右。我們在本季度實現了強勁的自由現金流爲2100萬美元，並宣佈贖回和回購我們2025年到期的7300萬美元債券。鑑於我們強勁的上半年業績，我們將我們2024財年全年的自由現金流指導提高到50至7000萬美元之間。我們致力於在2025年中期前償還我們2025年到期的債券和Variperm賣方貸款的未償餘額。」
「加拿大和國際市場展望與我們的預期一致。美國石油鑽機數量和水力壓裂活動在第二季度出現下降趨勢，並預計將在下半年繼續下降。今年，我們預計美國石油鑽機數量將下降15%。與我們最初預期的下降5%相比，這代表了更大的下降幅度。然而，我們的國際業務板塊、Variperm收購以及我們的「跑贏市場」策略應該有助於緩解這種美國行業的疲軟。」
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因此，我們保持了指引的底端，但將頂端下調1000萬美元。我們2024全年調整後的EBITDA指引現在是1億到11000萬美元。
細分市場結果 （除非另有說明，比較是2024年第二季度與第一 季度 2024)
鑽井和完井業務的營業收入爲11700萬美元，下降了2%。 主要與ROV、電纜管理系統和處理鐵銷量下降有關。這種下降部分地被扭曲管和動力端銷售的增加所抵消。訂單爲11000萬美元，下降了6%， 主要是由於鑽井和刺激相關的資本設備，部分被更高的扭曲管訂單所抵消。業務調整後的EBITDA爲1200萬美元， 16% 下降，主要是由於營業收入減少和不利的產品組合。鑽井和完井業務主要專注於爲全球鑽井作業、深海、扭曲管、金屬線和刺激市場提供的資本設備和消耗品。
人工升降機和井下板塊收入爲8,800萬美元，主要增長6％y 與我們的閥門產品銷售的增長有關。 由於上一季度生產設備訂單增加，訂單爲7,000萬美元，下降了20％。分部調整後的息稅折舊攤銷前利潤爲2000萬美元，增長9％， 主要歸功於井下產品線中良好的產品組合。人工升降機和井下部門設計、製造和供應用於油井建造、人工升降機以及石油和天然氣加工的產品。
FET (forum energy technologies)是一家全球製造業-半導體公司，服務於石油、天然氣、工業和可再生能源行業。總部位於得克薩斯州休斯頓，FET提供增值解決方案，旨在改善客戶運營的安全性、效率和環境影響。欲了解更多信息，請訪問 www.f-e-t.com.
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新註冊的證券 前瞻性陳述和其他法律披露
本新聞稿包含《1933年證券法》第27A條和《1934年證券交易法》第21E條規定的前瞻性陳述。 除了歷史事實陳述外，本新聞稿中包含的所有其他陳述，涉及公司預計、相信或預期未來可能發生的活動、事件或發展，均屬於前瞻性陳述。 不限制前述內容的一般性，本新聞稿中包含的前瞻性陳述特別包括公司計劃、戰略、目標和預期的財務和運營結果，包括關於公司未來財務狀況、流動性和資本資源、運營、業績、收購、回報、資本支出預算、新產品開發活動、成本和本新聞稿中包含的其他指引。
這些聲明基於公司根據管理層的經驗和對歷史趨勢、當前狀況、預期未來發展以及其他認爲合適的因素的看法所做的某些假設。此類聲明受到多項假設、風險和不確定性的影響，其中許多超出了公司的控制範圍，這些可能導致實際結果與前瞻性聲明所暗示或表達的結果存在重大差異。其中包括石油和天然氣價格的波動性、油田開發活動水平、原材料和專業設備的供應情況、公司及時交付積壓訂單的能力、熟練和合格勞動力的供應、石油和天然氣行業的競爭、對石油和天然氣行業的政府監管和稅收、公司實施新技術和服務的能力、資金的供應和條件、以及涉及公司業務的環保法規或訴訟的不確定性以及其他影響公司業務的法律或監管發展的重要因素。這些因素可能導致實際結果與公司在其向美國證券交易委員會提交的文件中描述的投射結果存在重大差異。
任何前瞻性聲明僅適用於該聲明發表的日期，公司不承擔糾正或更新任何前瞻性聲明的義務，無論是因爲新信息、未來事件還是其他原因，除非適用法律有要求。
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