Forum energy technologies announces second quarter 2017 results
Houston--(business wire)--forum energy technologies, inc. (nyse:fet) today announced second quarter 2017 revenue of $201 million, an increase of $30 million, or 18%, from the first quarter 2017. net loss for the quarter was $78 million, or $0.81 per diluted share, compared to a net loss of $16 million, or $0.16 per diluted share, for the first quarter 2017. excluding $69 million or $0.71 per share of special items, the adjusted net loss was $0.10 per diluted share in the second quarter of 2017 compared to an adjusted net loss of $0.14 per diluted share in the first quarter 2017. special items in the second quarter of 2017 included pre-tax charges of $68 million for goodwill impairment, $3 million for restructuring charges, and $3 million of foreign exchange losses. see tables 1-5 for a reconciliation of gaap to non-gaap financial information. during the quarter, we reviewed the carrying value of the goodwill in our subsea product line, which represents less than 10% of our revenues. the review was triggered by the softening of oil prices and the developing consensus that production from low cost oil basins would be sufficient to meet anticipated demand for a longer period. this is expected to delay the need for production from higher cost basins and delay the recovery in offshore activity. as a result, we determined that the carrying value of the goodwill in our subsea product line was impaired. segment results completions segment revenue was $55 million, a 29% increase sequentially, primarily due to customer spending on pressure pumping equipment. new inbound orders in the second quarter were $67 million, a 31% increase from the first quarter 2017, resulting in a book to bill ratio of 123%. the completions segment designs and manufactures products for the well construction, completion, stimulation and intervention markets primarily in north america. production & infrastructure segment revenue was $83 million, a 23% increase from the first quarter 2017, due to improved revenue from both well site production equipment and valve products. new inbound orders in the second quarter were $93 million, a 24% increase from the first quarter 2017, resulting in a book to bill ratio of 112%. during the quarter, orders for valves reached a record level on strong demand in north america. the production & infrastructure segment manufactures u.s. land well site production equipment, desalination refinery equipment, and a wide range of valves for energy, industrial and mining customers. drilling and subsea segment revenue was $64 million, a 4% increase from the first quarter 2017. subsea equipment revenue was flat with the previous quarter. new inbound orders for the drilling & subsea segment in the second quarter were $54 million, resulting in a book to bill ratio of 84%. drilling & subsea operations focus primarily on manufactured equipment and consumable products for global drilling and subsea contractors. review and outlook prady iyyanki, forum’s president and chief executive officer, remarked, "we are pleased with our strong growth in orders and revenue, especially within our completions and production & infrastructure segments, as both are highly levered to north america activity. we generated 18% growth in revenue and returned to positive adjusted ebitda for the company, with improvement in each of our three segments. "forum is benefiting from the recovery in the u.s. land drilling and completions activity. our u.s. revenue in the second quarter increased 23% sequentially and represented 78% of total company revenue. we expect continued strong demand for our completions and production & infrastructure products because of their exposure to north american completions activity, even if the rig count flattens or declines. "our financial liquidity remains strong. we ended the quarter with $221 million of cash on hand and nothing drawn on our bank credit facility. during the quarter, working capital expanded as we ramped up our manufacturing volumes to respond to customer demand. "we are pleased with the acquisition of multilift, which we closed in july. multilift’s innovative products extend the useful life of an electrical submersible pump by protecting it against sand and other solids. the acquisition fits with our strategy of expanding our product offering in completions. "forum expects diluted loss per share for the third quarter 2017 of $0.07 to $0.04 and sequential revenue growth of 8% to 12%." recent events forum acquired multilift for approximately $40 million. based in houston, texas, multilift manufactures the patented sandguardtm and the cyclonetm completion tools. forum has received orders thus far in 2017 for over 480,000 horsepower of j-mac hydraulic fracturing power ends and for eight of its new innovative manifold trailers, the "icbm." conference call information forum's conference call is scheduled for friday, july 28, 2017 at 9:00 am cdt. during the call, the company intends to discuss second quarter 2017 results. to participate in the earnings conference call, please call 855-757-8876 within north america, or 631-485-4851 outside of north america. the access code is 47060238. the call will also be broadcast through the investor relations link on forum’s website at www.f-e-t.com. participants are encouraged to log in to the webcast or dial in to the conference call approximately ten minutes prior to the start time. a replay of the call will be available for two weeks after the call and may be accessed by dialing 855-859-2056 within north america, or 404-537-3406 outside of north america. the access code is 47060238. 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 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. operatingincome(loss) netincome(loss) operatingincome(loss) netincome(loss) operatingincome(loss) netincome(loss) diluted eps - as reported operatingincome(loss) ebitda (1) net income(loss) operatingincome(loss) net income(loss) june 30, 2017 june 30, 2017
