Special items in the fourth quarter 2015 included pre-tax charges of
Average oil prices in 2015 decreased approximately 45% from the prior
year and the
Drilling & Subsea segment revenue in the fourth quarter 2015 was
Forum’s total revenue for the full year 2015 was
Review and Outlook
"The fourth quarter of 2015 unfolded with exhausted E&P budgets, further
declines in the rig count, deferred maintenance of equipment, and very
low customer spending. New orders received by Forum in the fourth
quarter were
"Our Drilling & Subsea segment fourth quarter 2015 revenue declined
"The Production & Infrastructure segment experienced a sequential
decrease in revenue of
“This year will be another challenge for all industry participants as this downturn continues to run its course. Although we have been cutting costs for more than a year and will continue to focus on our cost structure, we believe it is important to preserve our operational capability. Our weighting towards consumable products and short cycle capital equipment is responsive to activity levels, enabling Forum to be at the leading edge of resupplying our customers when activity recovers.
“For 2016, we remain focused on generating free cash flow, improving operational efficiency, and executing our disciplined acquisition strategy, while preserving our strong balance sheet."
Recent Events
Once again, Forum rated #1 for downhole drilling equipment and for
cementing equipment in the
Conference Call Information
Forum's conference call is scheduled for
Forum Energy Technologies is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The Company’s products include highly engineered capital equipment as well as products that are consumed in the drilling, well construction, production and transportation of oil and natural gas. Forum is headquartered in Houston, TX with manufacturing and distribution facilities strategically located around the globe. 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 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 | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended | ||||||||||||
December 31, | September 30, | |||||||||||
(in millions, except per share information) | 2015 | 2014 | 2015 | |||||||||
Revenue | $ | 196.1 | $ | 438.7 | $ | 245.0 | ||||||
Operating expenses | 262.1 | 381.1 | 236.7 | |||||||||
Earnings from equity investment | 2.5 | 7.2 | 3.9 | |||||||||
Goodwill and intangible asset impairment | 125.1 | — | — | |||||||||
Operating income (loss) | (188.6 | ) | 64.8 | 12.2 | ||||||||
Other expense | ||||||||||||
Interest expense | 7.3 | 6.7 | 7.4 | |||||||||
Loss (gain) on foreign exchange and other, net | (3.9 | ) | (3.6 | ) | (2.9 | ) | ||||||
Profit (loss) before income taxes | (192.0 | ) | 61.7 | 7.7 | ||||||||
Provision for income tax expense (benefit) | (28.4 | ) | 15.7 | 1.0 | ||||||||
Net income (loss) | (163.6 | ) | 46.0 | 6.7 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | |||||||||
Net income (loss) attributable to common stockholders (1) | $ | (163.6 | ) | $ | 46.0 | $ | 6.7 | |||||
Weighted average shares outstanding | ||||||||||||
Basic | 90.2 | 92.4 | 90.1 | |||||||||
Diluted | 90.2 | 94.7 | 91.7 | |||||||||
Earnings (losses) per share | ||||||||||||
Basic | $ | (1.81 | ) | $ | 0.50 | $ | 0.07 | |||||
Diluted | $ | (1.81 | ) | $ | 0.49 | $ | 0.07 | |||||
(1) Refer to Table 1 for schedule of adjusting items. |
Forum Energy Technologies, Inc. | ||||||||
Condensed consolidated statements of income | ||||||||
(Unaudited) | ||||||||
Year Ended December 31, | ||||||||
(in millions, except per share information) | 2015 | 2014 | ||||||
Revenue | $ | 1,073.7 | $ | 1,739.7 | ||||
Operating expenses | 1,077.1 | 1,496.9 | ||||||
Earnings from equity investment | 14.8 | 25.2 | ||||||
Goodwill and Intangible asset impairment | 125.1 | — | ||||||
Operating income (loss) | (113.7 | ) | 268.0 | |||||
Other expense | ||||||||
Interest expense | 29.9 | 29.9 | ||||||
Loss (gain) on foreign exchange and other, net | (9.3 | ) | (4.3 | ) | ||||
Profit (loss) before income taxes | (134.3 | ) | 242.4 | |||||
Provision for income tax expense (benefit) | (14.9 | ) | 68.1 | |||||
Net income (loss) | (119.4 | ) | 174.3 | |||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | ||||||
Net income (loss) attributable to common stockholders (1) | $ | (119.4 | ) | $ | 174.3 | |||
Weighted average shares outstanding | ||||||||
Basic | 89.9 | 92.6 | ||||||
Diluted | 89.9 | 95.3 | ||||||
Earnings (losses) per share | ||||||||
Basic | $ | (1.33 | ) | $ | 1.88 | |||
Diluted | $ | (1.33 | ) | $ | 1.83 | |||
(1) Refer to Table 2 for schedule of adjusting items. |
Forum Energy Technologies, Inc. | |||||||
Condensed consolidated balance sheets | |||||||
(Unaudited) | |||||||
(in millions of dollars) |
December 31, 2015 |
December 31, 2014 |
|||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 109.2 | $ | 76.6 | |||
Accounts receivable—trade, net | 138.6 | 287.0 | |||||
Inventories, net | 424.1 | 461.5 | |||||
Other current assets |
46.5 |
70.0 | |||||
Total current assets |
718.4 |
895.1 | |||||
Property and equipment, net of accumulated depreciation | 186.7 | 190.0 | |||||
Goodwill and other intangibles, net | 915.7 | 1,070.2 | |||||
Investment in unconsolidated subsidiary | 57.7 | 49.7 | |||||
Other long-term assets | 40.0 | 9.1 | |||||
Total assets | $ | 1,918.5 | $ | 2,214.1 | |||
Liabilities and Equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 0.3 | $ | 0.8 | |||
Other current liabilities | 150.1 | 281.4 | |||||
Total current liabilities | 150.4 | 282.2 | |||||
Long-term debt, net of current portion | 396.0 | 420.5 | |||||
Other long-term liabilities | 114.7 | 115.4 | |||||
Total liabilities | 661.1 | 818.1 | |||||
Total stockholders’ equity | 1,257.0 | 1,395.4 | |||||
Noncontrolling interest in subsidiary | 0.4 | 0.6 | |||||
Total equity | 1,257.4 | 1,396.0 | |||||
Total liabilities and equity | $ | 1,918.5 | $ | 2,214.1 |
Forum Energy Technologies, Inc. | ||||||||
Condensed consolidated cash flow information | ||||||||
(Unaudited) | ||||||||
Year Ended December 31, | ||||||||
(in millions of dollars) | 2015 | 2014 | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (119.4 | ) | $ | 174.3 | |||
Depreciation and amortization | 65.7 | 65.1 | ||||||
Goodwill and intangible asset impairment | 125.1 | — | ||||||
Other | 83.4 | 30.6 | ||||||
Net cash provided by operating activities | $ | 154.8 | $ | 270.0 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures for property and equipment | $ | (31.3 | ) | $ | (53.8 | ) | ||
Proceeds from sale of business, property and equipment | 1.8 | 12.2 | ||||||
Acquisition of businesses, net of cash acquired | (60.8 | ) | (38.3 | ) | ||||
Return of investment from unconsolidated subsidiary | — | 9.2 | ||||||
Net cash used in investing activities | $ | (90.3 | ) | $ | (70.7 | ) | ||
Cash flows from financing activities | ||||||||
Repayment of long-term debt | $ | (120.8 | ) | $ | (99.6 | ) | ||
Borrowings of long-term debt, including borrowings due to acquisitions | 95.0 | 15.4 | ||||||
Repurchase of common stock | (6.4 | ) | (96.5 | ) | ||||
Other | 5.3 | 18.7 | ||||||
Net cash used in financing activities | $ | (26.9 | ) | $ | (162.0 | ) | ||
Effect of exchange rate changes on cash | (5.0 | ) | (0.3 | ) | ||||
Net increase in cash and cash equivalents | $ | 32.6 | $ | 37.0 |
Forum Energy Technologies, Inc. | ||||||||||||||||||||||||
Supplemental schedule - Segment information | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
As Reported | As Adjusted (5) | |||||||||||||||||||||||
Three months ended | Three months ended | |||||||||||||||||||||||
(in millions of dollars) |
December 31, 2015 |
December 31, 2014 |
September 30, 2015 |
December 31, 2015 |
December 31, 2014 |
September 30, 2015 |
||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Drilling & Subsea | $ | 104.1 | $ | 278.1 | $ | 139.1 | $ | 104.1 | $ | 278.1 | $ | 139.1 | ||||||||||||
Production & Infrastructure | 92.4 | 160.8 | 106.2 | 92.4 | 160.8 | 106.2 | ||||||||||||||||||
Eliminations | (0.4 | ) | (0.2 | ) | (0.3 | ) | (0.4 | ) | (0.2 | ) | (0.3 | ) | ||||||||||||
Total revenue | $ | 196.1 | $ | 438.7 | $ | 245.0 | $ | 196.1 | $ | 438.7 | $ | 245.0 | ||||||||||||
Operating income (loss) | ||||||||||||||||||||||||
Drilling & Subsea | $ | (42.1 | ) | $ | 45.9 | $ | 6.7 | $ | (7.5 | ) | $ | 47.4 | $ | 8.7 | ||||||||||
Operating income (loss) margin % | (40.5 | )% | 16.5 | % | 4.8 | % | (7.2 | )% | 17.0 | % | 6.3 | % | ||||||||||||
Production & Infrastructure (1) | (13.6 | ) | 32.3 | 10.7 | 5.3 | 32.4 | 10.9 | |||||||||||||||||
Operating income (loss) margin % | (14.7 | )% | 20.1 | % | 10.1 | % | 5.7 | % | 20.1 | % | 10.3 | % | ||||||||||||
Corporate | (6.7 | ) | (12.3 | ) | (5.0 | ) | (5.7 | ) | (10.8 | ) | (5.0 | ) | ||||||||||||
Total Segment operating income (loss) | (62.4 | ) | 65.9 | 12.4 | (7.9 | ) | 69.0 | 14.6 | ||||||||||||||||
Other items not in segment operating income (2) | (126.2 | ) | (1.1 | ) | (0.2 | ) | 0.1 | (1.1 | ) | — | ||||||||||||||
Total operating income (loss) | $ | (188.6 | ) | $ | 64.8 | $ | 12.2 | $ | (7.8 | ) | $ | 67.9 | $ | 14.6 | ||||||||||
Operating income (loss) margin % | (96.2 | )% | 14.8 | % | 5.0 | % | (4.0 | )% | 15.5 | % | 6.0 | % | ||||||||||||
EBITDA (3) | ||||||||||||||||||||||||
Drilling & Subsea | $ | (152.3 | ) | $ | 60.7 | $ | 20.6 | $ | 3.6 | $ | 58.0 | $ | 19.8 | |||||||||||
Percentage of D&S revenue % | (146.3 | )% | 21.8 | % | 14.8 | % | 3.5 | % | 20.9 | % | 14.2 | % | ||||||||||||
Production & Infrastructure | (11.0 | ) | 35.2 | 14.5 | 9.0 | 35.5 | 14.9 | |||||||||||||||||
Percentage of P&I revenue % | (11.9 | )% | 21.9 | % | 13.7 | % | 9.7 | % | 22.1 | % | 14.0 | % | ||||||||||||
Corporate | (5.0 | ) | (11.2 | ) | (3.2 | ) | (3.8 | ) | (9.6 | ) | (3.4 | ) | ||||||||||||
Other items (4) | — | — | (0.2 | ) | — | — | — | |||||||||||||||||
Total EBITDA | $ | (168.3 | ) | $ | 84.7 | $ | 31.7 | $ | 8.8 | $ | 83.9 | $ | 31.3 | |||||||||||
Percentage of total revenue % | (85.8 | )% | 19.3 | % | 12.9 | % | 4.5 | % | 19.1 | % | 12.8 | % | ||||||||||||
(1) Includes earnings from equity investment. | ||||||||||||||||||||||||
(2) Includes transaction expenses, gain/(loss) on sale of assets and impairment of intangible assets and goodwill. | ||||||||||||||||||||||||
(3) 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. | ||||||||||||||||||||||||
(4) Includes transaction expenses. | ||||||||||||||||||||||||
(5) Refer to Table 1 for schedule of adjusting items. |
Forum Energy Technologies, Inc. | ||||||||||||||||
Supplemental schedule - Segment information | ||||||||||||||||
(Unaudited) | ||||||||||||||||
As Reported | As Adjusted (5) | |||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||
(in millions of dollars) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue | ||||||||||||||||
Drilling & Subsea | $ | 628.0 | $ | 1,126.6 | 628.0 | $ | 1,126.6 | |||||||||
Production & Infrastructure | 446.7 | 614.4 | 446.7 | 614.4 | ||||||||||||
Eliminations | (1.0 | ) | (1.3 | ) | (1.0 | ) | (1.3 | ) | ||||||||
Total revenue | $ | 1,073.7 | $ | 1,739.7 | $ | 1,073.7 | $ | 1,739.7 | ||||||||
Operating income (loss) | ||||||||||||||||
Drilling & Subsea | $ | 9.2 | $ | 201.2 | $ | 53.1 | $ | 202.8 | ||||||||
Operating income (loss) margin % | 1.5 | % | 17.9 | % | 8.5 | % | 18.0 | % | ||||||||
Production & Infrastructure (1) | 31.5 | 112.6 | 50.0 | 113.0 | ||||||||||||
Operating income (loss) margin % | 7.1 | % | 18.3 | % | 11.2 | % | 18.4 | % | ||||||||
Corporate | (28.1 | ) | (41.9 | ) | (26.7 | ) | (40.1 | ) | ||||||||
Total Segment operating income | 12.6 | 271.9 | 76.4 | 275.7 | ||||||||||||
Other items not in segment operating income (2) | (126.3 | ) | (3.9 | ) | 0.3 | (0.8 | ) | |||||||||
Total operating income (loss) | $ | (113.7 | ) | $ | 268.0 | $ | 76.7 | $ | 274.9 | |||||||
Operating income (loss) margin % | (10.6 | )% | 15.4 | % | 7.1 | % | 15.8 | % | ||||||||
EBITDA (3) | ||||||||||||||||
Drilling & Subsea | $ | (60.9 | ) | $ | 252.9 | $ | 98.1 | $ | 249.3 | |||||||
Percentage of D&S revenue % | (9.7 | )% | 22.4 | % | 15.6 | % | 22.1 | % | ||||||||
Production & Infrastructure | 44.2 | 124.1 | 65.0 | 125.4 | ||||||||||||
Percentage of P&I revenue % | 9.9 | % | 20.2 | % | 14.6 | % | 20.4 | % | ||||||||
Corporate | (21.6 | ) | (36.5 | ) | (20.2 | ) | (34.9 | ) | ||||||||
Other items (4) | (0.4 | ) | (3.1 | ) | — | — | ||||||||||
Total EBITDA | $ | (38.7 | ) | $ | 337.4 | $ | 142.9 | $ | 339.8 | |||||||
Percentage of total revenue % | (3.6 | )% | 19.4 | % | 13.3 | % | 19.5 | % | ||||||||
(1) Includes earnings from equity investment. | ||||||||||||||||
(2) Includes transaction expenses, loss on sale of business, gain/(loss) on sale of assets and impairment of intangible assets and goodwill. | ||||||||||||||||
(3) 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. | ||||||||||||||||
(4) Includes transaction expenses and loss on sale of business. | ||||||||||||||||
(5) Refer to Table 2 for schedule of adjusting items. |
Forum Energy Technologies, Inc. | |||||||||||||||||||||||||||||||||||
Reconciliation of GAAP to non-GAAP financial information | |||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
Table 1 - Adjusting items | |||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | September 30, 2015 | |||||||||||||||||||||||||||||||||
(in millions, except per share information) | Operating income (loss) | EBITDA (1) | Net income (loss) | Operating income (loss) | EBITDA (1) | Net income (loss) | Operating income (loss) | EBITDA (1) | Net income (loss) | ||||||||||||||||||||||||||
As reported | $ | (188.6 | ) | $ | (168.3 | ) | $ | (163.6 | ) | $ | 64.8 | $ | 84.7 | $ | 46.0 | $ | 12.2 | $ | 31.7 | $ | 6.7 | ||||||||||||||
% of revenue | (96.2 | )% | (85.8 | )% | 14.8 | % | 19.3 | % | 5.0 | % | 12.9 | % | |||||||||||||||||||||||
Restructuring charges | 12.6 | 12.6 | 8.3 | 3.1 | 3.1 | 2.2 | 2.2 | 2.2 | 1.7 | ||||||||||||||||||||||||||
Transaction expenses | — | — | — | — | — | — | 0.2 | 0.2 | 0.1 | ||||||||||||||||||||||||||
Inventory and other working capital reserve | 43.1 | 43.1 | 28.6 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Goodwill and intangible asset impairment | 125.1 | 125.1 | 118.5 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Loss (gain) on foreign exchange, net (2) | — | (3.7 | ) | (2.7 | ) | — | (3.9 | ) | (2.7 | ) | — | (2.8 | ) | (2.1 | ) | ||||||||||||||||||||
As adjusted (1) | $ | (7.8 | ) | $ | 8.8 | $ | (10.9 | ) | $ | 67.9 | $ | 83.9 | $ | 45.5 | $ | 14.6 | $ | 31.3 | $ | 6.4 | |||||||||||||||
% of revenue | (4.0 | )% | 4.5 | % | 15.5 | % | 19.1 | % | 6.0 | % | 12.8 | % | |||||||||||||||||||||||
Diluted EPS -as reported | $ | (1.81 | ) | $ | 0.49 | $ | 0.07 | ||||||||||||||||||||||||||||
Diluted EPS - as adjusted | $ | (0.12 | ) | $ | 0.48 | $ | 0.07 |
Table 2 - Adjusting items | ||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
(in millions, except per share information) | Operating income (loss) | EBITDA (1) | Net income (loss) | Operating income (loss) | EBITDA (1) | Net income (loss) | ||||||||||||||||||
As reported | $ | (113.7 | ) | $ | (38.7 | ) | $ | (119.4 | ) | $ | 268.0 | $ | 337.4 | 174.3 | ||||||||||
% of revenue | (10.6 | )% | (3.6 | )% | 15.4 | % | 19.4 | % | ||||||||||||||||
Restructuring charges | 21.8 | 21.8 | 15.5 | 3.8 | 3.8 | 2.7 | ||||||||||||||||||
Transaction expenses | 0.4 | 0.4 | 0.4 | 2.3 | 2.3 | 1.7 | ||||||||||||||||||
Inventory and other working capital reserve | 43.1 | 43.1 | 28.6 | — | — | — | ||||||||||||||||||
Goodwill and intangible asset impairment | 125.1 | 125.1 | 118.5 | — | — | — | ||||||||||||||||||
Loss on sale of business | — | — | — | 0.8 | 0.8 | 0.5 | ||||||||||||||||||
Loss (gain) on foreign exchange, net (2) | — | (8.8 | ) | (6.5 | ) | — | (4.5 | ) | (3.1 | ) | ||||||||||||||
As adjusted (1) | $ | 76.7 | $ | 142.9 | $ | 37.1 | $ | 274.9 | $ | 339.8 | $ | 176.1 | ||||||||||||
% of revenue | 7.1 | % | 13.3 | % | 15.8 | % | 19.5 | % | ||||||||||||||||
Diluted EPS - as reported | $ | (1.33 | ) | $ | 1.83 | |||||||||||||||||||
Diluted EPS - as adjusted | $ | 0.40 | $ | 1.85 | ||||||||||||||||||||
(1) The Company believes that the presentation of EBITDA, adjusted EBITDA, adjusted operating income and adjusted Diluted EPS is useful to the Company's investors because (i) 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 and (ii) each of adjusted EBITDA, adjusted operating income and adjusted Diluted EPS is 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. 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. | ||||||||||||||||||||||||
(2) Loss (gain) on foreign exchange, net primarily relates to the translation of U.S. dollar denominated receivables for reporting purposes only and have 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) |
December 31, 2015 |
December 31, 2014 |
September 30, 2015 |
||||||||
EBITDA reconciliation (1) | |||||||||||
Net income (loss) attributable to common stockholders | $ | (163.6 | ) | $ | 46.0 | $ | 6.7 | ||||
Interest expense | 7.3 | 6.7 | 7.4 | ||||||||
Depreciation and amortization | 16.4 | 16.3 | 16.6 | ||||||||
Income tax expense (benefit) | (28.4 | ) | 15.7 | 1.0 | |||||||
EBITDA | $ | (168.3 | ) | $ | 84.7 | $ | 31.7 |
Table 4 - Adjusting items | |||||||
Year ended | |||||||
(in millions of dollars) |
December 31, 2015 |
December 31, 2014 |
|||||
EBITDA reconciliation (1) | |||||||
Net income (loss) attributable to common stockholders | $ | (119.4 | ) | $ | 174.3 | ||
Interest expense | 29.9 | 29.9 | |||||
Depreciation and amortization | 65.7 | 65.1 | |||||
Income tax expense (benefit) | (14.9 | ) | 68.1 | ||||
EBITDA | $ | (38.7 | ) | $ | 337.4 |
(1) 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.
Table 5 - Adjusting items | ||||||||
Year ended | ||||||||
(in millions of dollars) |
December 31, 2015 |
December 31, 2014 |
||||||
Free cash flow, before acquisitions, reconciliation (2) | ||||||||
Net cash provided by operating activities | $ | 154.8 | $ | 270.0 | ||||
Capital expenditures for property and equipment | (31.3 | ) | (53.8 | ) | ||||
Proceeds from sale of property and equipment | 1.8 | 2.7 | ||||||
Free cash flow, before acquisitions | $ | 125.3 | $ | 218.9 |
(2) 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) | ||||||||||||
Year ended December 31, | ||||||||||||
(in millions of dollars) | 2015 | 2014 | ||||||||||
Revenue: | $ | % | $ | % | ||||||||
Drilling Technologies | $ | 332.4 | 30.9 | % | $ | 614.8 | 35.4 | % | ||||
Subsea Technologies | 189.1 | 17.6 | % | 321.0 | 18.5 | % | ||||||
Downhole Technologies | 106.5 | 9.9 | % | 190.8 | 11.0 | % | ||||||
Drilling & Subsea | 628.0 | 58.4 | % | 1,126.6 | 64.9 | % | ||||||
Production Equipment | 145.9 | 13.6 | % | 228.8 | 13.1 | % | ||||||
Valve Solutions | 174.5 | 16.3 | % | 207.4 | 11.9 | % | ||||||
Flow Equipment | 126.3 | 11.8 | % | 178.2 | 10.2 | % | ||||||
Production & Infrastructure | 446.7 | 41.7 | % | 614.4 | 35.2 | % | ||||||
Eliminations | (1.0 | ) | (0.1 | )% | (1.3 | ) | (0.1 | )% | ||||
Total Revenue | $ | 1,073.7 | 100.0 | % | $ | 1,739.7 | 100.0 | % |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160211006558/en/
Source:
Forum Energy Technologies, Inc.
Investor Contact
Vice
President, Investor Relations
Mark Traylor, 281-368-1108
mark.traylor@f-e-t.com
or
Media
Contact
Director, Marketing & Communications
Donna
Smith, 281-949-2514
donna.smith@f-e-t.com