Special items in the first quarter of 2018, on a pre-tax basis, included
a gain of
Segment Results
Completions segment revenue was
Production & Infrastructure segment revenue was
Drilling & Subsea segment revenue was
Review and Outlook
Prady Iyyanki, Forum’s President and Chief Executive Officer, remarked,
"Our overall performance was in line with our expectations, except for
the Subsea product line. Drilling and completions activity in
"New orders received by Forum in the first quarter were
"Our financial liquidity remains strong. During the quarter, we paid
down
"We expect robust growth for the balance of the year, led by our
Recent Events
Forum received orders in the first quarter of 2018 for over 280,000 horsepower of J-Mac hydraulic fracturing power ends.
Forum was awarded a multiyear frame agreement to supply its Davis-Lynch casing and cementing equipment to an international service company, providing the opportunity to obtain significant incremental revenue.
On
Conference Call Information
Forum's conference call is scheduled for
Forum Energy Technologies is a global oilfield products company, serving the drilling, subsea, completions, 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 (loss) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three months ended | ||||||||||||||||||
March 31, | December 31, | |||||||||||||||||
(in millions, except per share information) | 2018 | 2017 | 2017 | |||||||||||||||
Revenue | $ | 250.2 | $ | 171.1 | $ | 247.7 | ||||||||||||
Cost of sales | 182.9 | 132.1 | 194.7 | |||||||||||||||
Gross profit | 67.3 | 39.0 | 53.0 | |||||||||||||||
Operating expenses | ||||||||||||||||||
Selling, general and administrative expenses | 72.1 | 60.7 | 68.0 | |||||||||||||||
Goodwill and intangible asset impairments | — | — | 0.4 | |||||||||||||||
Transaction expenses | 1.3 | 0.6 | 4.8 | |||||||||||||||
Loss (gain) on disposal of assets and other | (0.4 | ) | (0.2 | ) | 0.5 | |||||||||||||
Total operating expenses | 73.0 | 61.1 | 73.7 | |||||||||||||||
Earnings (loss) from equity investment | (1.0 | ) | 1.5 | (6.4 | ) | |||||||||||||
Operating loss | (6.7 | ) | (20.6 | ) | (27.1 | ) | ||||||||||||
Other expense (income) | ||||||||||||||||||
Interest expense | 8.1 | 6.6 | 7.5 | |||||||||||||||
Foreign exchange losses and other, net | 3.5 | 1.5 | 0.7 | |||||||||||||||
Gain on contribution of subsea rentals business | (33.5 | ) | — | — | ||||||||||||||
Gain on previously held equity investment | — | — | (120.4 | ) | ||||||||||||||
Total other (income) expense, net | (21.9 | ) | 8.1 | (112.2 | ) | |||||||||||||
Income (loss) before income taxes | 15.2 | (28.7 | ) | 85.1 | ||||||||||||||
Income tax expense (benefit) (1) | (12.9 | ) | (12.9 | ) | 36.0 | |||||||||||||
Net income (loss) (2) | $ | 28.1 | $ | (15.8 | ) | $ | 49.1 | |||||||||||
Weighted average shares outstanding | ||||||||||||||||||
Basic | 108.4 | 95.9 | 105.9 | |||||||||||||||
Diluted | 110.9 | 95.9 | 108.6 | |||||||||||||||
Earnings (loss) per share | ||||||||||||||||||
Basic | $ | 0.26 | $ | (0.16 | ) | $ | 0.46 | |||||||||||
Diluted | $ | 0.25 | $ | (0.16 | ) | $ | 0.45 | |||||||||||
|
(1) U.S. tax reform significantly changes U.S. corporate income tax laws by, among other things, reducing the U.S. corporate income tax rate to 21% starting in 2018 and creating a territorial tax system with a one-time mandatory tax on previously deferred earnings of non-U.S. subsidiaries. As a result, the Company recorded a provisional charge of $10.1 million during the fourth quarter of 2017. Based on guidance recently issued by the U.S. Internal Revenue Service ("IRS"), the Company updated our provisional estimate and recorded a $16.2 million benefit in the first quarter of 2018 to reflect the revised provisional estimate. The impacts related to U.S. tax reform remain provisional in nature and are subject to further adjustment as additional guidance is provided by the U.S. IRS regarding the application of the new U.S. corporate income tax laws. |
(2) Refer to Table 1 for schedule of adjusting items. |
Forum Energy Technologies, Inc. | ||||||||||||
Condensed consolidated balance sheets | ||||||||||||
(Unaudited) | ||||||||||||
(in millions of dollars) |
March 31, 2018 |
December 31, 2017 |
||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 42.3 | $ | 115.2 | ||||||||
Accounts receivable—trade, net | 194.9 | 202.9 | ||||||||||
Inventories, net | 468.9 | 443.2 | ||||||||||
Other current assets | 47.9 | 29.1 | ||||||||||
Total current assets | 754.0 | 790.4 | ||||||||||
Property and equipment, net of accumulated depreciation | 184.5 | 197.3 | ||||||||||
Goodwill and other intangibles, net | 1,184.5 | 1,198.3 | ||||||||||
Investment in unconsolidated subsidiary | 43.1 | — | ||||||||||
Other long-term assets | 16.4 | 9.2 | ||||||||||
Total assets | $ | 2,182.5 | $ | 2,195.2 | ||||||||
Liabilities and equity | ||||||||||||
Current liabilities | ||||||||||||
Current portion of long-term debt | $ | 1.1 | $ | 1.2 | ||||||||
Other current liabilities | 216.1 | 215.1 | ||||||||||
Total current liabilities | 217.2 | 216.3 | ||||||||||
Long-term debt, net of current portion | 456.6 | 506.8 | ||||||||||
Other long-term liabilities | 61.8 | 63.1 | ||||||||||
Total liabilities | 735.6 | 786.2 | ||||||||||
Total equity | 1,446.9 | 1,409.0 | ||||||||||
Total liabilities and equity | $ | 2,182.5 | $ | 2,195.2 | ||||||||
Forum Energy Technologies, Inc. | ||||||||||||||
Condensed consolidated cash flow information | ||||||||||||||
(Unaudited) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
(in millions of dollars) | 2018 | 2017 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income (loss) | $ | 28.1 | $ | (15.8 | ) | |||||||||
Depreciation and amortization | 18.7 | 15.5 | ||||||||||||
Other, primarily working capital | (66.1 | ) | (14.7 | ) | ||||||||||
Net cash used in operating activities | (19.3 | ) | (15.0 | ) | ||||||||||
Cash flows from investing activities | ||||||||||||||
Capital expenditures for property and equipment | (5.1 | ) | (3.5 | ) | ||||||||||
Proceeds from sale of business, property and equipment | 5.1 | — | ||||||||||||
Acquisition of businesses, net of cash acquired | — | (8.7 | ) | |||||||||||
Investment in unconsolidated subsidiary | — | (1.0 | ) | |||||||||||
Net cash used in investing activities | — | (13.2 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||
Repayments of debt | (50.7 | ) | (0.9 | ) | ||||||||||
Repurchases of stock | (2.0 | ) | (4.4 | ) | ||||||||||
Proceeds from stock issuance | — | 1.8 | ||||||||||||
Net cash used in financing activities | (52.7 | ) | (3.5 | ) | ||||||||||
Effect of exchange rate changes on cash | (0.9 | ) | 2.2 | |||||||||||
Net decrease in cash, cash equivalents and restricted cash | $ | (72.9 | ) | $ | (29.5 | ) | ||||||||
Forum Energy Technologies, Inc. | |||||||||||||||||||||||||||||||||
Supplemental schedule - Segment information | |||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
As Reported | As Adjusted (4) | ||||||||||||||||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||||||||||||||
(in millions of dollars) |
March 31, 2018 |
March 31, 2017 |
December 31, 2017 |
March 31, 2018 |
March 31, 2017 |
December 31, 2017 |
|||||||||||||||||||||||||||
Revenue (5) | |||||||||||||||||||||||||||||||||
Drilling & Subsea | $ | 52.3 | $ | 61.9 | $ | 54.1 | $ | 52.3 | $ | 61.9 | $ | 54.1 | |||||||||||||||||||||
Completions | 112.5 | 42.4 | 103.3 | 112.5 | 42.4 | 103.3 | |||||||||||||||||||||||||||
Production & Infrastructure | 86.4 | 67.6 | 91.6 | 86.4 | 67.6 | 91.6 | |||||||||||||||||||||||||||
Eliminations | (1.0 | ) | (0.8 | ) | (1.3 | ) | (1.0 | ) | (0.8 | ) | (1.3 | ) | |||||||||||||||||||||
Total revenue | $ | 250.2 | $ | 171.1 | $ | 247.7 | $ | 250.2 | $ | 171.1 | $ | 247.7 | |||||||||||||||||||||
Operating income (loss)(5) | |||||||||||||||||||||||||||||||||
Drilling & Subsea (1) | $ | (10.2 | ) | $ | (8.3 | ) | $ | (8.0 | ) | $ | (8.6 | ) | $ | (8.0 | ) | $ | (6.5 | ) | |||||||||||||||
Operating income margin % | (19.5 | )% | (13.4 | )% | (14.8 | )% | (16.4 | )% | (12.9 | )% | (12.0 | )% | |||||||||||||||||||||
Completions (1) | 8.9 | (3.5 | ) | (5.5 | ) | 12.1 | (3.5 | ) | 10.3 | ||||||||||||||||||||||||
Operating income margin % | 7.9 | % | (8.3 | )% | (5.3 | )% | 10.8 | % | (8.3 | )% | 10.0 | % | |||||||||||||||||||||
Production & Infrastructure | 4.2 | (0.6 | ) | 0.7 | 4.2 | (0.4 | ) | 5.0 | |||||||||||||||||||||||||
Operating income margin % | 4.9 | % | (0.9 | )% | 0.8 | % | 4.9 | % | (0.6 | )% | 5.5 | % | |||||||||||||||||||||
Corporate | (8.7 | ) | (7.8 | ) | (8.5 | ) | (8.3 | ) | (7.4 | ) | (8.1 | ) | |||||||||||||||||||||
Total segment operating loss | (5.8 | ) | (20.2 | ) | (21.3 | ) | (0.6 | ) | (19.3 | ) | 0.7 | ||||||||||||||||||||||
Other items not in segment operating income (2) | (0.9 | ) | (0.4 | ) | (5.8 | ) | 0.6 | 0.1 | 0.1 | ||||||||||||||||||||||||
Total operating loss | $ | (6.7 | ) | $ | (20.6 | ) | $ | (27.1 | ) | $ | — | $ | (19.2 | ) | $ | 0.8 | |||||||||||||||||
Operating income margin % | (2.7 | )% | (12.0 | )% | (10.9 | )% | — | % | (11.2 | )% | 0.3 | % | |||||||||||||||||||||
EBITDA (3)(5) | |||||||||||||||||||||||||||||||||
Drilling & Subsea | $ | 25.0 | $ | (3.0 | ) | $ | (2.0 | ) | $ | (3.6 | ) | $ | (1.0 | ) | $ | (0.2 | ) | ||||||||||||||||
EBITDA Margin % | 47.8 | % | (4.8 | )% | (3.7 | )% | (6.9 | )% | (1.6 | )% | (0.4 | )% | |||||||||||||||||||||
Completions | 20.3 | 2.9 | 122.3 | 23.6 | 3.0 | 21.7 | |||||||||||||||||||||||||||
EBITDA Margin % | 18.0 | % | 6.8 | % | 118.4 | % | 21.0 | % | 7.1 | % | 21.0 | % | |||||||||||||||||||||
Production & Infrastructure | 7.0 | 1.8 | 2.1 | 7.2 | 2.0 | 7.3 | |||||||||||||||||||||||||||
EBITDA Margin % | 8.1 | % | 2.7 | % | 2.3 | % | 8.3 | % | 3.0 | % | 8.0 | % | |||||||||||||||||||||
Corporate | (10.4 | ) | (8.3 | ) | (10.0 | ) | (8.3 | ) | (7.4 | ) | (8.2 | ) | |||||||||||||||||||||
Total EBITDA | $ | 41.9 | $ | (6.6 | ) | $ | 112.4 | $ | 18.9 | $ | (3.4 | ) | $ | 20.6 | |||||||||||||||||||
EBITDA Margin % | 16.7 | % | (3.9 | )% | 45.4 | % | 7.6 | % | (2.0 | )% | 8.3 | % | |||||||||||||||||||||
|
(1) Includes earnings (loss) from equity investment. |
(2) Includes transaction expenses, gain/(loss) on sale of assets, and intangible assets impairments. |
(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) Refer to Table 1 for schedule of adjusting items. |
(5) In order to better align with the predominant customer base of the segment, the Company has moved management and financial reporting of the Company's fully rotational torque machine operations, which operates under the AMC brand, from the Drilling and Subsea segment to the Completions segment. Prior period financial information has been revised to conform with current period presentation with no impact to total segment operating results. |
Forum Energy Technologies, Inc. | ||||||||||||||||||
Supplemental schedule - Orders information | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three months ended | ||||||||||||||||||
(in millions of dollars) |
March 31, 2018 |
March 31, 2017 |
December 31, 2017 |
|||||||||||||||
Orders(2) | ||||||||||||||||||
Drilling & Subsea | $ | 53.1 | $ | 68.4 | $ | 49.6 | ||||||||||||
Completions | 111.1 | 50.1 | 101.1 | |||||||||||||||
Production & Infrastructure | 96.8 | 75.4 | 80.8 | |||||||||||||||
Total orders | $ | 261.0 | $ | 193.9 | $ | 231.5 | ||||||||||||
Revenue(2) | ||||||||||||||||||
Drilling & Subsea | $ | 52.3 | $ | 61.9 | $ | 54.1 | ||||||||||||
Completions | 112.5 | 42.4 | 103.3 | |||||||||||||||
Production & Infrastructure | 86.4 | 67.6 | 91.6 | |||||||||||||||
Eliminations | (1.0 | ) | (0.8 | ) | (1.3 | ) | ||||||||||||
Total revenue | $ | 250.2 | $ | 171.1 | $ | 247.7 | ||||||||||||
Book to bill ratio (1) | ||||||||||||||||||
Drilling & Subsea | 1.02 | 1.11 | 0.92 | |||||||||||||||
Completions | 0.99 | 1.18 | 0.98 | |||||||||||||||
Production & Infrastructure | 1.12 | 1.12 | 0.88 | |||||||||||||||
Total book to bill ratio | 1.04 | 1.13 | 0.93 | |||||||||||||||
|
(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. |
(2) In order to better align with the predominant customer base of the segment, the Company has moved management and financial reporting of the Company's fully rotational torque machine operations, which operates under the AMC brand, from the Drilling and Subsea segment to the Completions segment. Prior period financial information has been revised to conform with current period presentation with no impact to total segment operating results. |
Forum Energy Technologies, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP to non-GAAP financial information | |||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
Table 1 - Adjusting items | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | March 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
(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 | $ | (6.7 | ) | $ | 41.9 | $ | 28.1 | $ | (20.6 | ) | $ | (6.6 | ) | $ | (15.8 | ) | $ | (27.1 | ) | $ | 112.4 | $ | 49.1 | ||||||||||||||||||||||||
% of revenue | (2.7 | )% | 16.7 | % | (12.0 | )% | (3.9 | )% | (10.9 | )% | 45.4 | % | |||||||||||||||||||||||||||||||||||
Restructuring charges and other | 2.9 | 2.9 | 3.3 | 0.8 | 0.8 | 0.8 | 3.3 | 3.3 | 3.3 | ||||||||||||||||||||||||||||||||||||||
Transaction expenses | 1.3 | 1.3 | 1.3 | 0.6 | 0.6 | 0.6 | 4.8 | 4.8 | 4.8 | ||||||||||||||||||||||||||||||||||||||
Inventory and other working capital reserve | 2.5 | 2.5 | 2.5 | — | — | — | 13.0 | 13.0 | 13.0 | ||||||||||||||||||||||||||||||||||||||
Goodwill and intangible asset impairment | — | — | — | — | — | — | 0.4 | 0.4 | 0.4 | ||||||||||||||||||||||||||||||||||||||
Gain on subsea rentals business contributed to Ashtead | — | (33.5 | ) | (33.5 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Gain realized on previously held equity investment | — | — | — | — | — | — | — | (120.4 | ) | (120.4 | ) | ||||||||||||||||||||||||||||||||||||
Acquisition related equity-based compensation recorded by equity investment subsidiary | — | — | — | — | — | — | 6.4 | 6.4 | 6.4 | ||||||||||||||||||||||||||||||||||||||
Loss (gain) on foreign exchange, net(2) | — | 3.8 | 3.8 | — | 1.8 | 1.8 | — | 0.7 | 0.7 | ||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) of adjustments | — | — | 3.2 | — | — | (0.9 | ) | — | — | 23.5 | |||||||||||||||||||||||||||||||||||||
Impact of U.S. tax reform | — | — | (16.2 | ) | — | — | — | — | — |
10.1 |
|||||||||||||||||||||||||||||||||||||
U.K. NOL valuation allowance | — | — | — | — | — | — | — | — | 4.5 | ||||||||||||||||||||||||||||||||||||||
As adjusted(1) | $ | — | $ | 18.9 | $ | (7.5 | ) | $ | (19.2 | ) | $ | (3.4 | ) | $ | (13.5 | ) | $ | 0.8 | $ | 20.6 | $ |
(4.6 |
) | ||||||||||||||||||||||||
% of revenue | — | % | 7.6 | % | (11.2 | )% | (2.0 | )% | 0.3 | % | 8.3 | % | |||||||||||||||||||||||||||||||||||
Diluted shares outstanding as reported | 110.9 | 95.9 | 108.6 | ||||||||||||||||||||||||||||||||||||||||||||
Diluted shares outstanding as adjusted | 108.4 | 95.9 | 108.6 | ||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS - as reported | $ | 0.25 | $ | (0.16 | ) | $ | 0.45 | ||||||||||||||||||||||||||||||||||||||||
Diluted EPS - as adjusted | $ | (0.07 | ) | $ | (0.14 | ) | $ |
(0.04 |
) | ||||||||||||||||||||||||||||||||||||||
|
(1) The Company believes that the presentation of EBITDA, adjusted EBITDA, adjusted operating income and adjusted Diluted EPS is useful to 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) 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 | ||||||||||||||||
Three months ended | ||||||||||||||||
(in millions of dollars) |
March 31, 2018 |
March 31, 2017 |
December 31, 2017 |
|||||||||||||
EBITDA reconciliation (1) | ||||||||||||||||
Net income (loss) | $ | 28.1 | $ | (15.8 | ) | $ | 49.1 | |||||||||
Interest expense | 8.1 | 6.6 | 7.5 | |||||||||||||
Depreciation and amortization | 18.6 | 15.6 | 19.9 | |||||||||||||
Income tax benefit | (12.9 | ) | (12.9 | ) | 36.0 | |||||||||||
EBITDA | $ | 41.9 | $ | (6.6 | ) | $ | 112.4 | |||||||||
|
(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. |
Table 3 - Adjusting items | ||||||||||||
Three months ended | ||||||||||||
(in millions of dollars) |
March 31, 2018 |
March 31, 2017 |
||||||||||
Free cash flow, before acquisitions, reconciliation (1) | ||||||||||||
Net cash used in operating activities | $ | (19.3 | ) | $ | (15.0 | ) | ||||||
Capital expenditures for property and equipment | (5.1 | ) | (3.5 | ) | ||||||||
Proceeds from sale of property and equipment | 5.1 | — | ||||||||||
Free cash flow, before acquisitions | $ | (19.3 | ) | $ | (18.5 | ) | ||||||
|
(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) |
March 31, 2018 |
March 31, 2017 |
December 31, 2017 |
||||||||||||||||||||||||
Revenue: | $ | % | $ | % | $ | % | |||||||||||||||||||||
Drilling Technologies | $ | 42.8 | 17.1 | % | $ | 45.1 | 26.4 | % | $ | 38.5 | 15.5 | % | |||||||||||||||
Subsea Technologies | 9.5 | 3.8 | % | 16.8 | 9.8 | % | 15.6 | 6.3 | % | ||||||||||||||||||
Drilling & Subsea | 52.3 | 20.9 | % | 61.9 | 36.2 | % | 54.1 | 21.8 | % | ||||||||||||||||||
Downhole Technologies | 24.5 | 9.8 | % | 16.6 | 9.7 | % | 22.3 | 9.0 | % | ||||||||||||||||||
Stimulation and Intervention | 51.0 | 20.4 | % | 25.8 | 15.1 | % | 45.5 | 18.4 | % | ||||||||||||||||||
Coiled Tubing | 37.0 | 14.8 | % | — | — | % | 35.5 | 14.3 | % | ||||||||||||||||||
Completions | 112.5 | 45.0 | % | 42.4 | 24.8 | % | 103.3 | 41.7 | % | ||||||||||||||||||
Production Equipment | 31.5 | 12.6 | % | 24.7 | 14.4 | % | 35.0 | 14.1 | % | ||||||||||||||||||
Valve Solutions | 54.9 | 21.9 | % | 42.9 | 25.1 | % | 56.6 | 22.9 | % | ||||||||||||||||||
Production & Infrastructure | 86.4 | 34.5 | % | 67.6 | 39.5 | % | 91.6 | 37.0 | % | ||||||||||||||||||
Eliminations | (1.0 | ) | (0.4 | )% | (0.8 | ) | (0.5 | )% | (1.3 | ) | (0.5 | )% | |||||||||||||||
Total Revenue | $ | 250.2 | 100.0 | % | $ | 171.1 | 100.0 | % | $ | 247.7 | 100.0 | % | |||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180430006593/en/
Source:
Forum Energy Technologies, Inc.
Mark Traylor, 281-368-1108
Vice
President, Investor Relations
mark.traylor@f-e-t.com