-
Revenue of
$183 million -
Net loss of
$37 million and diluted EPS of$(0.33) -
Adjusted EBITDA of
$1.3 million -
Cash flow from operations of
$1.6 million and free cash flow after capital expenditures of$0.7 million -
Net debt reduced by
$6.9 million from year end 2019
Special items in the first quarter 2020, on a pre-tax basis, included
“Despite the low level of free cash flow in the first quarter, we were able to reduce net debt by
“We are closely monitoring the impact of the coronavirus to ensure the safety of our employees, while preserving business continuity and working to meet our customers’ needs. While our manufacturing facilities and business operations have not experienced work stoppages from the coronavirus or resulting government regulations, we are experiencing a significant decrease in demand for our products resulting from the collapse in oil prices. We expect our revenues and operating results to experience a significant decline in the second quarter 2020. The magnitude of the decline and the timing of a recovery are uncertain.
“Forum is a capital light and scalable business and we are moving swiftly to reduce costs and manage the business to maximize cash flow. We have put in place a plan that is expected to result in a reduction of at least
“During this time of extremely depressed activity in the North American oil and gas sector, we will continue to emphasize and protect our winning products, many of which are aimed at providing cost and operating efficiency to our customers. As activity stabilizes, even at a low level, these products should see traction as they reduce operating costs. In addition, we continue to see activity outside of the North American oil and gas market for several of our products. These include products facilitating drilling and completions activity in select international markets, valves for industrial applications, and subsea equipment for defense and renewable power applications. While even this activity is being impacted by the economic slowdown, demand should improve somewhat as global shutdown restrictions are lifted.
“Forum has weathered previous downturns during our history, and we will approach this one with the same vigor. We will continue to focus on generating free cash flow, adjusting our cost structure, and exploiting any market opportunities for our winning products."
Segment Results
Drilling & Downhole segment revenue was
Completions segment revenue was
Production segment revenue was
Financial Position and Other Financial Information
Forum ended the quarter with
Forum’s primary use of free cash flow in 2020 will be to continue to reduce net debt. We continue to evaluate all available options to address the maturity of the remaining Senior Notes due in the fourth quarter 2021.
Net capital expenditures in the first quarter were
Interest and depreciation and amortization, were
Adjusted corporate expenses were
Forum is eligible to carry back 2018 operating losses to 2013 for income tax purposes under the CARES Act. We expect this to generate a cash tax refund of approximately
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.
|
|
||||||||||||
|
Condensed consolidated statements of income (loss) |
||||||||||||
|
(Unaudited) |
||||||||||||
|
|
||||||||||||
|
|
|
Three months ended |
||||||||||
|
|
|
|
|
|
||||||||
|
(in millions, except per share information) |
2020 |
|
2019 |
|
2019 |
|||||||
|
Revenue |
$ |
182.6 |
|
$ |
271.8 |
|
$ |
199.8 |
|
|||
|
Cost of sales |
160.5 |
|
201.7 |
|
150.9 |
|
||||||
|
Gross profit |
22.1 |
|
70.1 |
|
48.9 |
|
||||||
|
Operating expenses |
|
|
|
|||||||||
|
Selling, general and administrative expenses |
60.2 |
|
69.0 |
|
56.4 |
|
||||||
|
Transaction expenses |
— |
|
0.6 |
|
0.2 |
|
||||||
|
Impairments of intangibles, property and equipment |
17.3 |
|
— |
|
— |
|
||||||
|
Contingent consideration benefit |
— |
|
(4.6 |
) |
— |
|
||||||
|
Loss on disposal of assets and other |
— |
|
— |
|
0.1 |
|
||||||
|
Total operating expenses |
77.5 |
|
65.0 |
|
56.7 |
|
||||||
|
Loss from equity investment |
— |
|
(0.8 |
) |
— |
|
||||||
|
Operating income (loss) |
(55.4 |
) |
4.3 |
|
(7.8 |
) |
||||||
|
Other expense (income) |
|
|
|
|||||||||
|
Interest expense |
6.7 |
|
8.2 |
|
7.4 |
|
||||||
|
Gain on extinguishment of debt |
(7.5 |
) |
— |
|
— |
|
||||||
|
Gain on disposition of business |
— |
|
— |
|
(2.3 |
) |
||||||
|
Deferred loan costs written off |
1.8 |
|
— |
|
— |
|
||||||
|
Foreign exchange losses (gains) and other, net |
(4.9 |
) |
2.3 |
|
8.1 |
|
||||||
|
Total other (income) expense, net |
(3.9 |
) |
10.5 |
|
13.2 |
|
||||||
|
Loss before income taxes |
(51.5 |
) |
(6.2 |
) |
(21.0 |
) |
||||||
|
Income tax expense (benefit) |
(14.4 |
) |
1.7 |
|
(8.6 |
) |
||||||
|
Net loss (1) |
$ |
(37.1 |
) |
$ |
(7.9 |
) |
$ |
(12.4 |
) |
|||
|
|
|
|
|
|||||||||
|
Weighted average shares outstanding |
|
|
|
|||||||||
|
Basic |
111.2 |
|
109.6 |
|
110.5 |
|
||||||
|
Diluted |
111.2 |
|
109.6 |
|
110.5 |
|
||||||
|
|
|
|
|
|||||||||
|
Loss per share |
|
|
|
|||||||||
|
Basic |
$ |
(0.33 |
) |
$ |
(0.07 |
) |
$ |
(0.11 |
) |
|||
|
Diluted |
$ |
(0.33 |
) |
$ |
(0.07 |
) |
$ |
(0.11 |
) |
|||
|
|
|
|
|
|||||||||
|
(1) Refer to Table 1 for schedule of adjusting items. |
||||||||||||
|
|
||||||
|
Condensed consolidated balance sheets |
||||||
|
(Unaudited) |
||||||
|
|
|
|
||||
|
(in millions of dollars) |
|
|
||||
|
Assets |
|
|
||||
|
Current assets |
|
|
||||
|
Cash and cash equivalents |
$ |
108.9 |
$ |
57.9 |
||
|
Accounts receivable—trade, net |
145.4 |
154.2 |
||||
|
Inventories, net |
392.9 |
414.6 |
||||
|
Other current assets |
49.1 |
39.2 |
||||
|
Total current assets |
696.3 |
665.9 |
||||
|
Property and equipment, net of accumulated depreciation |
136.5 |
154.8 |
||||
|
Operating lease assets |
36.8 |
48.7 |
||||
|
Intangible assets, net |
259.1 |
272.3 |
||||
|
Other long-term assets |
16.8 |
18.3 |
||||
|
Total assets |
$ |
1,145.5 |
$ |
1,160.0 |
||
|
Liabilities and equity |
|
|
||||
|
Current liabilities |
|
|
||||
|
Current portion of long-term debt |
$ |
1.0 |
$ |
0.7 |
||
|
Other current liabilities |
184.2 |
196.2 |
||||
|
Total current liabilities |
185.2 |
196.9 |
||||
|
Long-term debt, net of current portion |
444.9 |
398.9 |
||||
|
Other long-term liabilities |
73.3 |
78.2 |
||||
|
Total liabilities |
703.4 |
674.0 |
||||
|
Total equity |
442.1 |
486.0 |
||||
|
Total liabilities and equity |
$ |
1,145.5 |
$ |
1,160.0 |
||
|
|
||||||||
|
Condensed consolidated cash flow information |
||||||||
|
(Unaudited) |
||||||||
|
|
|
Three Months Ended |
||||||
|
(in millions of dollars) |
2020 |
2019 |
||||||
|
Cash flows from operating activities |
|
|
||||||
|
Net loss |
$ |
(37.1 |
) |
$ |
(7.9 |
) |
||
|
Impairments of intangible assets, property and equipment |
17.3 |
|
— |
|
||||
|
Depreciation and amortization |
14.2 |
|
16.4 |
|
||||
|
Other noncash items and changes in working capital |
7.2 |
|
9.4 |
|
||||
|
Net cash provided by operating activities |
1.6 |
|
17.9 |
|
||||
|
|
|
|
||||||
|
Cash flows from investing activities |
|
|
||||||
|
Capital expenditures for property and equipment |
(0.9 |
) |
(3.7 |
) |
||||
|
Proceeds from sale of property and equipment |
— |
|
0.1 |
|
||||
|
Net cash used in investing activities |
(0.9 |
) |
(3.6 |
) |
||||
|
|
|
|
||||||
|
Cash flows from financing activities |
|
|
||||||
|
Borrowings of debt |
55.0 |
|
20.0 |
|
||||
|
Repayments of debt |
(3.5 |
) |
(51.1 |
) |
||||
|
Repurchases of stock |
(0.1 |
) |
(0.9 |
) |
||||
|
Deferred financing costs |
(0.3 |
) |
— |
|
||||
|
Net cash provided by (used in) financing activities |
51.1 |
|
(32.0 |
) |
||||
|
|
|
|
||||||
|
Effect of exchange rate changes on cash |
(0.8 |
) |
0.2 |
|
||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
$ |
51.0 |
|
$ |
(17.5 |
) |
||
|
|
||||||||||||||||||||||||
|
Supplemental schedule - Segment information |
||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
As Reported |
|
As Adjusted (4) |
||||||||||||||||||||
|
|
|
Three months ended |
|
Three months ended |
||||||||||||||||||||
|
(in millions of dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Drilling & Downhole |
|
$ |
76.6 |
|
|
$ |
85.9 |
|
|
$ |
78.2 |
|
|
$ |
76.6 |
|
|
$ |
85.9 |
|
|
$ |
78.2 |
|
|
Completions |
|
50.8 |
|
|
94.7 |
|
|
58.3 |
|
|
50.8 |
|
|
94.7 |
|
|
58.3 |
|
||||||
|
Production |
|
55.6 |
|
|
92.0 |
|
|
64.7 |
|
|
55.6 |
|
|
92.0 |
|
|
64.7 |
|
||||||
|
Eliminations |
|
(0.4) |
|
|
(0.8) |
|
|
(1.4) |
|
|
(0.4) |
|
|
(0.8) |
|
|
(1.4) |
|
||||||
|
Total revenue |
|
$ |
182.6 |
|
|
$ |
271.8 |
|
|
$ |
199.8 |
|
|
$ |
182.6 |
|
|
$ |
271.8 |
|
|
$ |
199.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Drilling & Downhole (1) |
|
$ |
(4.1) |
|
|
$ |
(2.5) |
|
|
$ |
4.2 |
|
|
$ |
1.0 |
|
|
$ |
0.3 |
|
|
$ |
4.0 |
|
|
Operating income margin % |
|
(5.4) |
% |
|
(2.9) |
% |
|
5.4 |
% |
|
1.3 |
% |
|
0.3 |
% |
|
5.1 |
% |
||||||
|
Completions |
|
(17.3) |
|
|
6.9 |
|
|
(3.0) |
|
|
(4.2) |
|
|
7.6 |
|
|
(2.1) |
|
||||||
|
Operating income margin % |
|
(34.1) |
% |
|
7.3 |
% |
|
(5.1) |
% |
|
(8.3) |
% |
|
8.0 |
% |
|
(3.6) |
% |
||||||
|
Production |
|
(8.2) |
|
|
4.3 |
|
|
(2.4) |
|
|
(2.2) |
|
|
4.6 |
|
|
0.2 |
|
||||||
|
Operating income margin % |
|
(14.7) |
% |
|
4.7 |
% |
|
(3.7) |
% |
|
(4.0) |
% |
|
5.0 |
% |
|
0.3 |
% |
||||||
|
Corporate |
|
(8.5) |
|
|
(8.4) |
|
|
(6.3) |
|
|
(7.5) |
|
|
(7.3) |
|
|
(5.9) |
|
||||||
|
Total segment operating income (loss) |
|
(38.1) |
|
|
0.3 |
|
|
(7.5) |
|
|
(12.9) |
|
|
5.2 |
|
|
(3.8) |
|
||||||
|
Other items not in segment operating income (2) |
|
(17.3) |
|
|
4.0 |
|
|
(0.3) |
|
|
— |
|
|
0.1 |
|
|
(0.2) |
|
||||||
|
Total operating income (loss) |
|
$ |
(55.4) |
|
|
$ |
4.3 |
|
|
$ |
(7.8) |
|
|
$ |
(12.9) |
|
|
$ |
5.3 |
|
|
$ |
(4.0) |
|
|
Operating income margin % |
|
(30.3) |
% |
|
1.6 |
% |
|
(3.9) |
% |
|
(7.1) |
% |
|
1.9 |
% |
|
(2.0) |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
EBITDA (3) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Drilling & Downhole |
|
$ |
(1.0) |
|
|
$ |
1.9 |
|
|
$ |
1.1 |
|
|
$ |
6.1 |
|
|
$ |
6.0 |
|
|
$ |
9.2 |
|
|
EBITDA Margin % |
|
(1.3) |
% |
|
2.2 |
% |
|
1.4 |
% |
|
8.0 |
% |
|
7.0 |
% |
|
11.8 |
% |
||||||
|
Completions |
|
(19.9) |
|
|
15.5 |
|
|
4.0 |
|
|
2.7 |
|
|
16.4 |
|
|
4.9 |
|
||||||
|
EBITDA Margin % |
|
(39.2) |
% |
|
16.4 |
% |
|
6.9 |
% |
|
5.3 |
% |
|
17.3 |
% |
|
8.4 |
% |
||||||
|
Production |
|
(6.5) |
|
|
6.4 |
|
|
1.8 |
|
|
(0.1) |
|
|
6.6 |
|
|
2.5 |
|
||||||
|
EBITDA Margin % |
|
(11.7) |
% |
|
7.0 |
% |
|
2.8 |
% |
|
(0.2) |
% |
|
7.2 |
% |
|
3.9 |
% |
||||||
|
Corporate |
|
(3.2) |
|
|
(5.4) |
|
|
(5.7) |
|
|
(7.4) |
|
|
(7.3) |
|
|
(5.9) |
|
||||||
|
Total EBITDA |
|
$ |
(30.6) |
|
|
$ |
18.4 |
|
|
$ |
1.2 |
|
|
$ |
1.3 |
|
|
$ |
21.7 |
|
|
$ |
10.7 |
|
|
EBITDA Margin % |
|
(16.8) |
% |
|
6.8 |
% |
|
0.6 |
% |
|
0.7 |
% |
|
8.0 |
% |
|
5.4 |
% |
||||||
|
(1) |
Includes earnings (loss) from equity investment for the three months ended |
|
|
(2) |
Includes transaction expenses, gain/(loss) on disposal of assets, and impairments of intangibles, property and equipment. |
|
|
(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. |
|
|
|
||||||||||||
|
Supplemental schedule - Orders information |
||||||||||||
|
(Unaudited) |
||||||||||||
|
|
|
|||||||||||
|
|
Three months ended |
|||||||||||
|
(in millions of dollars) |
|
|
|
|
|
|||||||
|
Orders |
|
|
|
|||||||||
|
Drilling & Downhole |
$ |
70.0 |
|
$ |
82.0 |
|
$ |
73.8 |
|
|||
|
Completions |
49.9 |
|
80.3 |
|
58.3 |
|
||||||
|
Production |
50.7 |
|
79.9 |
|
69.7 |
|
||||||
|
Total orders |
$ |
170.6 |
|
$ |
242.2 |
|
$ |
201.8 |
|
|||
|
|
|
|
|
|||||||||
|
Revenue |
|
|
|
|||||||||
|
Drilling & Downhole |
$ |
76.6 |
|
$ |
85.9 |
|
$ |
78.2 |
|
|||
|
Completions |
50.8 |
|
94.7 |
|
58.3 |
|
||||||
|
Production |
55.6 |
|
92.0 |
|
64.7 |
|
||||||
|
Eliminations |
(0.4 |
) |
(0.8 |
) |
(1.4 |
) |
||||||
|
Total revenue |
$ |
182.6 |
|
$ |
271.8 |
|
$ |
199.8 |
|
|||
|
|
|
|
|
|||||||||
|
Book to bill ratio (1) |
|
|
|
|||||||||
|
Drilling & Downhole |
0.91 |
|
0.95 |
|
0.94 |
|
||||||
|
Completions |
0.98 |
|
0.85 |
|
1.00 |
|
||||||
|
Production |
0.91 |
|
0.87 |
|
1.08 |
|
||||||
|
Total book to bill ratio |
0.93 |
|
0.89 |
|
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, 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. |
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Reconciliation of GAAP to non-GAAP financial information |
||||||||||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||||||||||
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Table 1 - Adjusting items |
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Three months ended |
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||||||||||||||||||||||||||||||
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(in millions, except per share information) |
|
Operating
|
|
EBITDA(1) |
|
Net
|
|
Operating
|
|
EBITDA(1) |
|
Net
|
|
Operating
|
|
EBITDA(1) |
|
Net
|
||||||||||||||||||
|
As reported |
$ |
(55.4) |
|
|
$ |
(30.6) |
|
|
$ |
(37.1) |
|
|
$ |
4.3 |
|
|
$ |
18.4 |
|
|
$ |
(7.9) |
|
|
$ |
(7.8) |
|
|
$ |
1.2 |
|
|
$ |
(12.4) |
|
|
|
% of revenue |
(30.3) |
% |
|
(16.8) |
% |
|
|
|
1.6 |
% |
|
6.8 |
% |
|
|
|
(3.9) |
% |
|
0.6 |
% |
|
|
|||||||||||||
|
Restructuring charges and other |
5.4 |
|
|
5.4 |
|
|
5.4 |
|
|
2.2 |
|
|
2.2 |
|
|
2.2 |
|
|
0.5 |
|
|
0.5 |
|
|
0.5 |
|
||||||||||
|
Transaction expenses |
— |
|
|
— |
|
|
— |
|
|
0.6 |
|
|
0.6 |
|
|
0.6 |
|
|
0.2 |
|
|
0.2 |
|
|
0.2 |
|
||||||||||
|
Inventory and other working capital adjustments |
10.3 |
|
|
10.3 |
|
|
10.3 |
|
|
(0.1) |
|
|
(0.1) |
|
|
(0.1) |
|
|
2.9 |
|
|
2.9 |
|
|
2.9 |
|
||||||||||
|
Impairments of intangibles, property and equipment |
17.3 |
|
|
17.3 |
|
|
17.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||
|
Impairments of operating lease assets |
9.5 |
|
|
9.5 |
|
|
9.5 |
|
|
2.5 |
|
|
2.5 |
|
|
2.5 |
|
|
0.2 |
|
|
0.2 |
|
|
0.2 |
|
||||||||||
|
Contingent consideration benefit |
— |
|
|
— |
|
|
— |
|
|
(4.6) |
|
|
(4.6) |
|
|
(4.6) |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||
|
Amortization of basis difference for equity method investment (2) |
— |
|
|
— |
|
|
— |
|
|
0.4 |
|
|
0.4 |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||
|
Gain on extinguishment of debt |
— |
|
|
(7.5) |
|
|
(7.5) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||
|
Deferred loan costs written off |
— |
|
|
1.8 |
|
|
1.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||
|
Gain on disposition of business |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2.3) |
|
|
(2.3) |
|
||||||||||
|
Loss (gain) on foreign exchange, net (3) |
— |
|
|
(4.9) |
|
|
(4.9) |
|
|
— |
|
|
2.3 |
|
|
2.3 |
|
|
— |
|
|
8.0 |
|
|
8.0 |
|
||||||||||
|
Income tax expense (benefit) of adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.1) |
|
|
— |
|
|
— |
|
|
(0.4) |
|
||||||||||
|
Impact of |
— |
|
|
— |
|
|
(16.6) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||
|
Valuation allowance on deferred tax assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(6.5) |
|
||||||||||
|
As adjusted (1) |
$ |
(12.9) |
|
|
$ |
1.3 |
|
|
$ |
(21.8) |
|
|
$ |
5.3 |
|
|
$ |
21.7 |
|
|
$ |
(4.7) |
|
|
$ |
(4.0) |
|
|
$ |
10.7 |
|
|
$ |
(9.8) |
|
|
|
% of revenue |
(7.1) |
% |
|
0.7 |
% |
|
|
|
1.9 |
% |
|
8.0 |
% |
|
|
|
(2.0) |
% |
|
5.4 |
% |
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Diluted shares outstanding as reported |
|
|
|
|
111.2 |
|
|
|
|
|
|
109.6 |
|
|
|
|
|
|
110.5 |
|
||||||||||||||||
|
Diluted shares outstanding as adjusted |
|
|
|
|
111.2 |
|
|
|
|
|
|
109.6 |
|
|
|
|
|
|
110.5 |
|
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|
|
|
|
|
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|
|
|
|
|
|
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|
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|
Diluted EPS - as reported |
|
|
|
|
$ |
(0.33) |
|
|
|
|
|
|
$ |
(0.07) |
|
|
|
|
|
|
$ |
(0.11) |
|
|||||||||||||
|
Diluted EPS - as adjusted |
|
|
|
|
$ |
(0.20) |
|
|
|
|
|
|
$ |
(0.04) |
|
|
|
|
|
|
$ |
(0.09) |
|
|||||||||||||
|
(1) |
The Company believes that the presentation of EBITDA, adjusted EBITDA, adjusted operating income, adjusted net income 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) |
The difference between the fair value of our interest in Ashtead and the book value of the underlying net assets resulted in a basis difference non-operating gain, which was allocated to fixed assets, intangible assets and goodwill based on their respective fair values as of the transaction date. This amount represents the amortization of the basis difference gain associated with intangible assets and property, plant and equipment which is included in equity earnings (loss) over the estimated life of the respective assets. |
|
|
|
||
|
(3) |
Foreign exchange, net primarily relates to cash and receivables denominated in |
|
|
|
||||||||||||
|
Reconciliation of GAAP to non-GAAP financial information |
||||||||||||
|
(Unaudited) |
||||||||||||
|
|
||||||||||||
|
Table 2 - Adjusting Items |
||||||||||||
|
|
||||||||||||
|
|
|
Three months ended |
||||||||||
|
(in millions of dollars) |
|
|
|
|
|
|||||||
|
EBITDA reconciliation (1) |
|
|
|
|||||||||
|
Net loss |
$ |
(37.1 |
) |
$ |
(7.9 |
) |
$ |
(12.4 |
) |
|||
|
Interest expense |
6.7 |
|
8.2 |
|
7.4 |
|
||||||
|
Depreciation and amortization |
14.2 |
|
16.4 |
|
14.8 |
|
||||||
|
Income tax expense (benefit) |
(14.4 |
) |
1.7 |
|
(8.6 |
) |
||||||
|
EBITDA |
$ |
(30.6 |
) |
$ |
18.4 |
|
$ |
1.2 |
|
|||
|
(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. |
||||||
|
Table 3 - Adjusting items |
||||||||
|
|
Three months ended |
|||||||
|
(in millions of dollars) |
|
|
|
|||||
|
Free cash flow, before acquisitions, reconciliation (1) |
|
|
||||||
|
Net cash provided by operating activities |
$ |
1.6 |
|
$ |
17.9 |
|
||
|
Capital expenditures for property and equipment |
(0.9 |
) |
(3.7 |
) |
||||
|
Proceeds from sale of property and equipment |
— |
|
0.1 |
|
||||
|
Free cash flow, before acquisitions |
$ |
0.7 |
|
$ |
14.3 |
|
||
|
(1) |
The Company believes free cash flow, before acquisitions is an important measure because it encompasses both profitability and capital management in evaluating results. |
|
|
|
||||||||||||||||||
|
Supplemental schedule - Product line revenue |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
|
|
|
Three months ended |
||||||||||||||||
|
(in millions of dollars) |
|
|
|
|
|
|
||||||||||||
|
Revenue: |
|
$ |
% |
|
$ |
% |
|
$ |
% |
|||||||||
|
Drilling Technologies |
|
$ |
36.5 |
|
19.9 |
% |
|
$ |
41.9 |
|
15.4 |
% |
|
$ |
35.1 |
|
17.5 |
% |
|
Downhole Technologies |
|
25.0 |
|
13.7 |
% |
|
30.4 |
|
11.2 |
% |
|
27.9 |
|
14.0 |
% |
|||
|
Subsea Technologies |
|
15.1 |
|
8.3 |
% |
|
13.6 |
|
5.0 |
% |
|
15.2 |
|
7.6 |
% |
|||
|
Drilling & Downhole |
|
76.6 |
|
41.9 |
% |
|
85.9 |
|
31.6 |
% |
|
78.2 |
|
39.1 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Stimulation and Intervention |
|
24.5 |
|
13.4 |
% |
|
51.4 |
|
18.9 |
% |
|
27.4 |
|
13.7 |
% |
|||
|
Coiled Tubing |
|
26.3 |
|
14.4 |
% |
|
43.3 |
|
15.9 |
% |
|
30.9 |
|
15.5 |
% |
|||
|
Completions |
|
50.8 |
|
27.8 |
% |
|
94.7 |
|
34.8 |
% |
|
58.3 |
|
29.2 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Production Equipment |
|
18.7 |
|
10.2 |
% |
|
36.6 |
|
13.5 |
% |
|
23.9 |
|
12.0 |
% |
|||
|
Valve Solutions |
|
36.9 |
|
20.2 |
% |
|
55.4 |
|
20.4 |
% |
|
40.8 |
|
20.4 |
% |
|||
|
Production |
|
55.6 |
|
30.4 |
% |
|
92.0 |
|
33.9 |
% |
|
64.7 |
|
32.4 |
% |
|||
|
Eliminations |
|
(0.4) |
|
(0.1) |
% |
|
(0.8) |
|
(0.3) |
% |
|
(1.4) |
|
(0.7) |
% |
|||
|
Total Revenue |
|
$ |
182.6 |
|
100.0 |
% |
|
$ |
271.8 |
|
100.0 |
% |
|
$ |
199.8 |
|
100.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200507006148/en/
Company Contact
Chief Financial Officer
+281.949.2539
Pablo.Mercado@f-e-t.com
Source:
