Forum energy technologies announces first quarter 2017 results
Houston--(business wire)--forum energy technologies, inc. (nyse: fet) today announced first quarter 2017 revenue of $171 million, an increase of $24 million, or 16%, from the fourth quarter 2016. net loss for the quarter was $16 million, or $0.16 per diluted share, compared to a net loss of $13 million, or $0.14 per diluted share, for the fourth quarter 2016. excluding $2 million or $0.02 per share of special items, the adjusted net loss was $0.14 per diluted share in the first quarter of 2017 compared to an adjusted net loss $0.16 per diluted share in the fourth quarter 2016. see tables 1-3 for a reconciliation of gaap to non-gaap financial information. new inbound orders in the quarter were $194 million, a 6% increase from the fourth quarter 2016, resulting in a book to bill ratio of 113%. segment results drilling & subsea operations focus primarily on manufactured equipment and consumable products for global drilling and subsea contractors. the segment revenue was $62 million, a 13% increase from the fourth quarter 2016, as the increase in the u.s. land rig count contributed to improved sales of drilling consumable products and equipment. subsea equipment revenue was relatively unchanged sequentially. new inbound orders for the drilling & subsea segment in the first quarter were $68 million, a 5% increase from the fourth quarter 2016, resulting in a book to bill ratio of 110%. completions segment revenue was $42 million, a 21% increase sequentially, as customer spending improved on hydraulic fracturing equipment and downhole products. new inbound orders in the first quarter were $50 million, a 31% increase from the fourth quarter 2016, resulting in a book to bill ratio of 119%. included in the orders was a significant amount of longer lead time, pumping horsepower equipment. the completions segment designs and manufactures products for the well construction, completion, stimulation and intervention markets primarily 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 upstream, midstream and downstream oil and gas customers. production & infrastructure segment revenue was $68 million, an 18% increase from the fourth quarter 2016, primarily due to improved revenue of our well site production equipment and the acquisition of the cooper valve assets during the first quarter. new inbound orders in the first quarter were $75 million, resulting in a book to bill ratio of 112%. during the quarter, orders for valves increased significantly, however, orders for well site production equipment were down compared to the exceptionally high level received in the fourth quarter for delivery throughout 2017. review and outlook cris gaut, forum’s chairman and chief executive officer, remarked, "we are pleased with our continued growth in orders, as each of our three segments had a book to bill ratio of at least 110% with particularly strong performance in our completions segment. "forum is benefiting from the recovery in the u.s. land drilling and completion activity, which was the primary driver of the revenue growth in each segment during the quarter. our u.s. land revenue in the first quarter increased 25% sequentially and represented 74% of total company revenue. "forum’s gross profit increased sequentially $8 million in the first quarter on a $24 million increase in revenue with little to no contribution yet from pricing. as we indicated previously, our sg&a cost increased significantly in the first quarter as we reinstated employee compensation and benefits in anticipation of the recovery that is now underway. the acquisition of cooper valves assets and cost required for the ramp up also added to sg&a. "our financial condition remains strong. we ended the quarter with $205 million of cash on hand and nothing drawn on our bank credit facility. we are well positioned to actively pursue targeted acquisitions. during the quarter, working capital expanded as we ramped up our manufacturing volumes to respond to customer demand. “with forum’s focus on early cycle, consumable products and activity-based equipment, we should continue to benefit from the u.s. land recovery. "forum expects diluted loss per share for the second quarter 2017 of $0.12 to $0.09 and revenue growth of 12-15%." recent events forum’s board of directors appointed mr. prady iyyanki as president and chief executive officer, effective may 16, 2017. mr. iyyanki currently serves as president and chief operating officer. mr. c. christopher gaut, the current chairman and chief executive officer, will become executive chairman. we have received orders thus far in 2017 for over 250,000 horsepower of j-mac hydraulic fracturing power ends. forum was rated #1 by customers in energypoint research’s most recent oilfield products & servicers customer satisfaction survey in cementing equipment. conference call information forum's conference call is scheduled for friday, april 28, 2017 at 9:00 am cdt. during the call, the company intends to discuss first 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 2505178. 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 2505178. 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. - - march 31, 2017 - - - - march 31, 2017 - - - (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. we believe that this ratio is useful to the company’s investors because it provides an indication of whether the demand for our products, in the markets in which we operate, 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, we believe 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 our products are activity based consumable items or shorter cycle capital equipment, neither of which are typically ordered by customers far in advance. operatingincome(loss) netincome(loss) operatingincome(loss) netincome(loss) operatingincome(loss) netincome(loss) - - - - - - - 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