- Revenue of $182 million, a 6% sequential increase
- Orders of $198 million and book-to-bill ratio of
1.09
- Net income of $16.5 million and diluted EPS of
$1.82
- Adjusted EBITDA of $17.8 million, a 15% sequential
increase
- Operating Cash Flow of $18.5 million and Free Cash Flow of
$17.3 million
- Confirming full-year 2022 Adjusted EBITDA at top end of $50
to $60 million guidance range
- Second half 2022 Free Cash Flow expectation remains $30 to
$40 million
Forum Energy Technologies, Inc. (NYSE: FET) today announced
third quarter 2022 revenue of $182 million, an increase of $10
million from the second quarter 2022. Net income for the quarter
was $16.5 million, or $1.82 per diluted share, a sequential
improvement of $7.2 million compared to net income of $9.3 million,
or $1.15 per diluted share, for the second quarter 2022. Excluding
special items, adjusted net loss was $0.25 per diluted share in the
third quarter 2022. Adjusted EBITDA was $17.8 million in the third
quarter 2022, a sequential increase of $2.3 million.
Special items in the third quarter 2022, on a pre-tax basis,
primarily included $18.2 million of foreign exchange gains. See
Tables 1-5 for a reconciliation of GAAP to non-GAAP financial
information.
Neal Lux, President and Chief Executive Officer, remarked, “I am
pleased with the FET team’s outstanding execution and performance
during the third quarter. On a year-over-year basis, third quarter
revenue grew 29% and adjusted EBITDA margins expanded 470 basis
points. Importantly, we generated $17 million of free cash flow,
which equates to 14% of our third quarter ending market
capitalization.
“Based on our fourth quarter outlook, we continue to expect
second half 2022 free cash flow to be between $30 and $40 million
and full year Adjusted EBITDA to be near the top end of the $50 to
$60 million guidance range. This Adjusted EBITDA result would
reflect an increase of approximately 200% over 2021.
“Conditions and activity within FET’s operating markets continue
to strengthen. We are seeing demand growth for our differentiated
portfolio of consumable and capital products driven by increasing
U.S., international, and offshore activity. With the tailwind of
this market and continued execution of our strategic initiatives,
we expect further revenue growth, margin expansion and free cash
flow generation.”
Segment Results (unless
otherwise noted, comparisons are third quarter 2022 versus second
quarter 2022)
Drilling & Downhole segment revenue was $76 million, a 1%
decrease primarily related to lower revenue recognition for subsea
capital projects, partially offset by higher demand for
drilling-related capital equipment and consumables in connection
with increasing activity levels. Orders were $73 million, a 1%
decrease due to lower Subsea Technologies bookings, which were
partially offset by order growth in both the Drilling Technologies
and Downhole Technologies product lines. Segment adjusted EBITDA
was $13 million, a $1 million increase benefiting from operating
leverage despite nominally lower revenue levels. The Drilling &
Downhole segment designs and manufactures capital equipment and
consumable products for global well construction, artificial lift
and subsea markets.
Completions segment revenue was $72 million, a 9% increase led
by higher sales of stimulation and wireline products as completion
activity and demand for stimulation capital equipment increased.
Orders were $79 million, a 22% increase. Segment adjusted EBITDA
was $10 million, an 18% increase resulting from higher revenue
levels and favorable sales mix. The Completions segment designs and
manufactures products for the coiled tubing, wireline and
stimulation markets.
Production segment revenue was $34 million, a 14% increase
related to double digit growth in both product lines. The third
quarter book-to-bill ratio was 1.34, as segment bookings returned
to normalized levels. Segment Adjusted EBITDA was $1 million driven
by strong operating leverage in the Valves product line. The
Production segment designs and manufactures land well site
production equipment, desalination process equipment, and a wide
range of valves for upstream, midstream and process industry
customers.
FET (Forum Energy Technologies) is a global company, serving the
oil, natural gas, industrial and renewable energy industries. FET
provides value added solutions that increase the safety and
efficiency of energy exploration and production. We are an
environmentally and socially responsible company headquartered in
Houston, TX with manufacturing, distribution, and service
facilities strategically located throughout the world. For more
information, please visit www.f-e-t.com.
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, impacts associated with COVID-19, and other important
factors that could cause actual results to differ materially from
those projected as described in the company's filings with the U.S.
Securities and Exchange Commission.
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)
(Unaudited)
Three months ended
September 30,
June 30,
(in millions, except per share
information)
2022
2021
2022
Revenue
$
181.8
$
141.0
$
172.2
Cost of sales
130.4
106.1
123.6
Gross profit
51.4
34.9
48.6
Operating expenses
Selling, general and administrative
expenses
43.7
42.3
43.5
Gain on disposal of assets and other
—
—
(0.9
)
Total operating expenses
43.7
42.3
42.6
Operating income (loss)
7.7
(7.4
)
6.0
Other expense (income)
Interest expense
8.1
7.1
7.8
Loss on extinguishment of debt
—
0.2
—
Foreign exchange gains and other, net
(18.2
)
(4.0
)
(12.8
)
Total other (income) expense, net
(10.1
)
3.3
(5.0
)
Income (loss) before income
taxes
17.8
(10.7
)
11.0
Income tax expense
1.3
0.9
1.7
Net income (loss) (1)
$
16.5
$
(11.6
)
$
9.3
Weighted average shares
outstanding
Basic
5.8
5.7
5.7
Diluted
10.6
5.7
10.5
Earnings (loss) per share
Basic
$
2.85
$
(2.05
)
$
1.61
Diluted
$
1.82
$
(2.05
)
$
1.15
(1) Refer to Table 1 for schedule of
adjusting items.
Forum Energy Technologies,
Inc.
Condensed consolidated
statements of income (loss)
(Unaudited)
Nine months ended
September 30,
(in millions, except per share
information)
2022
2021
Revenue
$
509.3
$
392.9
Cost of sales
370.7
299.6
Gross profit
138.6
93.3
Operating expenses
Selling, general and administrative
expenses
131.5
126.0
Gain on disposal of assets and other
(0.9
)
(1.3
)
Total operating expenses
130.6
124.7
Operating income (loss)
8.0
(31.4
)
Other expense (income)
Interest expense
23.6
24.1
Foreign exchange gains and other, net
(37.1
)
(1.5
)
Loss on extinguishment of debt
—
5.3
Total other (income) expense, net
(13.5
)
27.9
Income (loss) before income
taxes
21.5
(59.3
)
Income tax expense
5.0
3.8
Net income (loss) (1)
$
16.5
$
(63.1
)
Weighted average shares
outstanding
Basic
5.7
5.6
Diluted
10.5
5.6
Earnings (loss) per share
Basic
$
2.88
$
(11.19
)
Diluted
$
2.37
$
(11.19
)
(1) Refer to Table 2 for schedule of
adjusting items.
Forum Energy Technologies,
Inc.
Condensed consolidated balance
sheets
(Unaudited)
September 30,
December 31,
(in millions of dollars)
2022
2021
Assets
Current assets
Cash and cash equivalents
$
19.8
$
46.9
Accounts receivable—trade, net
147.8
123.9
Inventories, net
270.6
241.7
Other current assets
40.2
34.2
Total current assets
478.4
446.7
Property and equipment, net of accumulated
depreciation
86.2
94.0
Operating lease assets
20.8
25.4
Intangible assets, net
196.6
217.4
Other long-term assets
8.3
7.8
Total assets
$
790.3
$
791.3
Liabilities and equity
Current liabilities
Current portion of long-term debt
$
0.5
$
0.9
Other current liabilities
196.6
174.8
Total current liabilities
197.1
175.7
Long-term debt, net of current portion
247.5
232.4
Other long-term liabilities
43.0
54.1
Total liabilities
487.6
462.2
Total equity
302.7
329.1
Total liabilities and equity
$
790.3
$
791.3
Forum Energy Technologies,
Inc.
Condensed consolidated cash
flow information
(Unaudited)
Nine Months Ended September
30,
(in millions of dollars)
2022
2021
Cash flows from operating
activities
Net income (loss)
$
16.5
$
(63.1
)
Depreciation and amortization
28.2
32.0
Inventory write down
1.6
4.0
Loss on extinguishment of debt
—
5.3
Other noncash items and changes in working
capital
(78.4
)
13.7
Net cash used in operating
activities
(32.1
)
(8.1
)
Cash flows from investing
activities
Capital expenditures for property and
equipment
(4.8
)
(1.0
)
Proceeds from sale of property and
equipment
2.7
6.8
Payments related to business
acquisitions
(0.5
)
(1.3
)
Net cash provided by (used in)
investing activities
(2.6
)
4.5
Cash flows from financing
activities
Borrowings of debt
423.9
—
Repayments of debt
(414.0
)
(72.7
)
Repurchases of stock
(0.7
)
(0.4
)
Deferred financing costs
—
(1.5
)
Net cash provided by (used in)
financing activities
9.2
(74.6
)
Effect of exchange rate changes on
cash
(1.6
)
(0.4
)
Net decrease in cash, cash equivalents
and restricted cash
$
(27.1
)
$
(78.6
)
Forum Energy Technologies,
Inc.
Supplemental schedule -
Segment information
(Unaudited)
As Reported
As Adjusted (3)
Three months ended
Three months ended
(in millions of dollars)
September 30, 2022
September 30, 2021
June 30, 2022
September 30, 2022
September 30, 2021
June 30, 2022
Revenue
Drilling & Downhole
$
75.7
$
63.2
$
76.5
$
75.7
$
63.2
$
76.5
Completions
72.2
49.7
66.1
72.2
49.7
66.1
Production
34.2
28.5
29.9
34.2
28.5
29.9
Eliminations
(0.3
)
(0.4
)
(0.3
)
(0.3
)
(0.4
)
(0.3
)
Total revenue
$
181.8
$
141.0
$
172.2
$
181.8
$
141.0
$
172.2
Operating income (loss)
Drilling & Downhole
$
9.5
$
4.0
$
8.5
$
9.8
$
5.2
$
8.9
Operating Margin %
12.5
%
6.3
%
11.1
%
12.9
%
8.2
%
11.6
%
Completions
5.9
0.3
3.6
4.8
(0.5
)
3.1
Operating Margin %
8.2
%
0.6
%
5.4
%
6.6
%
(1.0
)%
4.7
%
Production
0.7
(3.4
)
(0.2
)
0.6
(3.1
)
(0.2
)
Operating Margin %
2.0
%
(11.9
)%
(0.7
)%
1.8
%
(10.9
)%
(0.7
)%
Corporate
(8.4
)
(8.4
)
(6.8
)
(7.3
)
(6.5
)
(6.6
)
Total segment operating income
(loss)
7.7
(7.5
)
5.1
7.9
(4.9
)
5.2
Other items not in segment operating
income (loss) (1)
—
0.1
0.9
—
—
0.1
Total operating income (loss)
$
7.7
$
(7.4
)
$
6.0
$
7.9
$
(4.9
)
$
5.3
Operating Margin %
4.2
%
(5.2
)%
3.5
%
4.3
%
(3.5
)%
3.1
%
EBITDA (2)
Drilling & Downhole
$
27.8
$
10.7
$
23.7
$
12.8
$
9.0
$
12.1
EBITDA Margin %
36.7
%
16.9
%
31.0
%
16.9
%
14.2
%
15.8
%
Completions
12.1
6.6
9.4
10.3
5.2
8.7
EBITDA Margin %
16.8
%
13.3
%
14.2
%
14.3
%
10.5
%
13.2
%
Production
1.5
(2.5
)
1.5
1.2
(2.1
)
0.6
EBITDA Margin %
4.4
%
(8.8
)%
5.0
%
3.5
%
(7.4
)%
2.0
%
Corporate
(6.4
)
(8.3
)
(6.3
)
(6.5
)
(4.9
)
(5.9
)
Total EBITDA
$
35.0
$
6.5
$
28.3
$
17.8
$
7.2
$
15.5
EBITDA Margin %
19.3
%
4.6
%
16.4
%
9.8
%
5.1
%
9.0
%
(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 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, 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, 2022
September 30, 2021
September 30, 2022
September 30, 2021
Revenue
Drilling & Downhole
$
223.5
$
173.4
$
223.5
$
173.4
Completions
190.9
134.1
190.9
134.1
Production
95.6
85.8
95.6
85.8
Eliminations
(0.7
)
(0.4
)
(0.7
)
(0.4
)
Total revenue
$
509.3
$
392.9
$
509.3
$
392.9
Operating income (loss)
Drilling & Downhole
$
24.0
$
2.2
$
24.3
$
7.2
Operating Margin %
10.7
%
1.3
%
10.9
%
4.2
%
Completions
8.8
(0.1
)
7.2
(1.4
)
Operating Margin %
4.6
%
(0.1
)%
3.8
%
(1.0
)%
Production
(1.2
)
(11.3
)
(1.1
)
(9.2
)
Operating Margin %
(1.3
)%
(13.2
)%
(1.2
)%
(10.7
)%
Corporate
(24.6
)
(23.5
)
(19.4
)
(18.7
)
Total segment operating income
(loss)
7.0
(32.7
)
11.0
(22.1
)
Other items not in segment operating
income (loss) (1)
1.0
1.3
0.2
0.1
Total operating income (loss)
$
8.0
$
(31.4
)
$
11.2
$
(22.0
)
Operating Margin %
1.6
%
(8.0
)%
2.2
%
(5.6
)%
EBITDA (2)
Drilling & Downhole
$
67.0
$
14.3
$
34.0
$
19.1
EBITDA Margin %
30.0
%
8.2
%
15.2
%
11.0
%
Completions
26.1
18.5
23.9
16.1
EBITDA Margin %
13.7
%
13.8
%
12.5
%
12.0
%
Production
2.0
(7.3
)
1.3
(5.3
)
EBITDA Margin %
2.1
%
(8.5
)%
1.4
%
(6.2
)%
Corporate
(21.8
)
(28.7
)
(17.0
)
(14.1
)
Total EBITDA
$
73.3
$
(3.2
)
$
42.2
$
15.8
EBITDA Margin %
14.4
%
(0.8
)%
8.3
%
4.0
%
(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 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, 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, 2022
September 30, 2021
June 30, 2022
Orders
Drilling & Downhole
$
73.3
$
83.4
$
74.4
Completions
78.7
59.6
64.7
Production
45.7
32.8
63.8
Total orders
$
197.7
$
175.8
$
202.9
Revenue
Drilling & Downhole
$
75.7
$
63.2
$
76.5
Completions
72.2
49.7
66.1
Production
34.2
28.5
29.9
Eliminations
(0.3
)
(0.4
)
(0.3
)
Total revenue
$
181.8
$
141.0
$
172.2
Book to bill ratio (1)
Drilling & Downhole
0.97
1.32
0.97
Completions
1.09
1.20
0.98
Production
1.34
1.15
2.13
Total book to bill ratio
1.09
1.25
1.18
(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, in the markets
in which the company operates, 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, 2022
September 30, 2021
June 30, 2022
(in millions, except per share
information)
Operating income
EBITDA (1)
Net income (loss)
Operating loss
EBITDA (1)
Net loss
Operating loss
EBITDA (1)
Net loss
As reported
$
7.7
$
35.0
$
16.5
$
(7.4
)
$
6.5
$
(11.6
)
$
6.0
$
28.3
$
9.3
% of revenue
4.2
%
19.3
%
(5.2
)%
4.6
%
3.5
%
16.4
%
Restructuring, transaction and other
costs
1.0
1.0
1.0
2.5
2.5
2.5
1.4
1.4
1.4
Inventory and other working capital
adjustments
(0.8
)
(0.8
)
(0.8
)
—
—
—
(2.1
)
(2.1
)
(2.1
)
Loss on extinguishment of debt
—
—
—
—
0.2
0.2
—
—
—
Gain on foreign exchange, net (2)
—
(18.2
)
(18.2
)
—
(3.9
)
(3.9
)
—
(12.8
)
(12.8
)
Stock-based compensation expense
—
0.8
—
—
1.9
—
—
0.7
—
As adjusted (1)
$
7.9
$
17.8
$
(1.5
)
$
(4.9
)
$
7.2
$
(12.8
)
$
5.3
$
15.5
$
(4.2
)
% of revenue
4.3
%
9.8
%
(3.5
)%
5.1
%
3.1
%
9.0
%
Diluted shares outstanding as reported
10.6
5.7
10.5
Diluted shares outstanding as adjusted
6.0
5.7
5.7
Diluted EPS - as reported
$
1.82
$
(2.05
)
$
1.15
Diluted EPS - as adjusted
$
(0.25
)
$
(2.25
)
$
(0.73
)
(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 has no economic impact in dollar terms.
Forum Energy Technologies,
Inc.
Reconciliation of GAAP to
non-GAAP financial information
(Unaudited)
Table 2 - Adjusting
items
Nine months ended
September 30, 2022
September 30, 2021
(in millions, except per share
information)
Operating income
EBITDA (1)
Net income (loss)
Operating loss
EBITDA (1)
Net loss
As reported
$
8.0
$
73.3
$
16.5
$
(31.4
)
$
(3.2
)
$
(63.1
)
% of revenue
1.6
%
14.4
%
(8.0
)%
(0.8
)%
Restructuring, transaction and other
costs
6.1
6.1
6.1
7.7
7.7
7.7
Inventory and other working capital
adjustments
(2.9
)
(2.9
)
(2.9
)
1.7
1.7
1.7
Stock-based compensation expense
—
2.5
—
—
5.7
—
Loss on extinguishment of debt
—
—
—
—
5.3
5.3
Loss (gain) on foreign exchange, net
(2)
—
(36.8
)
(36.8
)
—
(1.4
)
(1.4
)
As adjusted (1)
$
11.2
$
42.2
$
(17.1
)
$
(22.0
)
$
15.8
$
(49.8
)
% of revenue
2.2
%
8.3
%
(5.6
)%
4.0
%
Diluted shares outstanding as reported
10.5
5.6
Diluted shares outstanding as adjusted
6.0
5.6
Diluted EPS - as reported
$
2.37
$
(11.19
)
Diluted EPS - as adjusted
$
(2.85
)
$
(8.89
)
(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 has no economic impact in dollar terms.
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, 2022
September 30, 2021
June 30, 2022
EBITDA reconciliation (1)
Net income (loss)
$
16.5
$
(11.6
)
$
9.3
Interest expense
8.1
7.1
7.8
Depreciation and amortization
9.1
10.1
9.5
Income tax expense
1.3
0.9
1.7
EBITDA
$
35.0
$
6.5
$
28.3
(1) The company believes that the
presentation of EBITDA is useful to investors because 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, 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, 2022
September 30, 2021
EBITDA reconciliation (1)
Net income (loss)
$
16.5
$
(63.1
)
Interest expense
23.6
24.1
Depreciation and amortization
28.2
32.0
Income tax expense
5.0
3.8
EBITDA
$
73.3
$
(3.2
)
(1) The company believes that the
presentation of EBITDA is useful to investors because 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, 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
Nine months ended
(in millions of dollars)
September 30, 2022
September 30, 2021
Free cash flow, before acquisitions,
reconciliation (1)
Net cash used in operating activities
$
(32.1
)
$
(8.1
)
Capital expenditures for property and
equipment
(4.8
)
(1.0
)
Proceeds from sale of property and
equipment
2.7
6.8
Free cash flow, before acquisitions
$
(34.2
)
$
(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.
Supplemental schedule -
Product line revenue
(Unaudited)
Three months ended
(in millions of dollars)
September 30, 2022
September 30, 2021
June 30, 2022
Revenue:
$
%
$
%
$
%
Drilling Technologies
$
38.2
21.0
%
$
23.3
16.5
%
$
33.6
19.5
%
Downhole Technologies
21.9
12.0
%
17.6
12.5
%
21.4
12.4
%
Subsea Technologies
15.6
8.6
%
22.3
15.8
%
21.5
12.5
%
Drilling & Downhole
75.7
41.6
%
63.2
44.8
%
76.5
44.4
%
Stimulation and Intervention
43.6
24.0
%
25.6
18.1
%
37.4
21.7
%
Coiled Tubing
28.6
15.7
%
24.1
17.1
%
28.7
16.7
%
Completions
72.2
39.7
%
49.7
35.2
%
66.1
38.4
%
Production Equipment
18.5
10.2
%
14.3
10.1
%
16.4
9.5
%
Valve Solutions
15.7
8.6
%
14.2
10.1
%
13.5
7.9
%
Production
34.2
18.8
%
28.5
20.2
%
29.9
17.4
%
Eliminations
(0.3
)
(0.1
)%
(0.4
)
(0.2
)%
(0.3
)
(0.2
)%
Total Revenue
$
181.8
100.0
%
$
141.0
100.0
%
$
172.2
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221108006132/en/
Rob Kukla Director of Investor Relations 281.994.3763
rob.kukla@f-e-t.com
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