Forum energy technologies announces fourth quarter and full year 2014
results
Houston--(business wire)--forum energy technologies, inc. (nyse:fet) today announced fourth quarter 2014 revenue of $439 million, an increase of $45 million or 11%, from the fourth quarter 2013. net income for the quarter was $46 million, or $0.49 per diluted share, compared to $35 million, or $0.36 per diluted share, for the prior year period. excluding $0.01 per share of non-operational items, adjusted diluted earnings per share were $0.48 in the fourth quarter of 2014. see table 1 for a reconciliation of gaap to non-gaap financial information. forum’s total revenue for the full year 2014 was a record $1.7 billion, an increase of $215 million or 14%, from 2013. net income was a record $174 million, or $1.83 per diluted share. excluding $0.02 per share of non-operational items, adjusted diluted earnings per share were $1.85 for the full year 2014. free cash flow for the full year 2014 was a record $219 million, and adjusted ebitda for the year excluding non-operational items was a record $340 million, or 19.5% of revenue. see tables 2-5 for a reconciliation of gaap to non-gaap financial information. fourth quarter results by segment drilling & subsea drilling & subsea segment revenue in the fourth quarter 2014 was $278 million, an increase of $17 million or 6%, from the fourth quarter 2013. the revenue improvement was due to the growth in sales of drilling equipment and downhole products driven by the higher level of drilling activity in north america compared to the prior year period. production & infrastructure production & infrastructure segment revenue in the fourth quarter 2014 was $161 million, an increase of $28 million or 21%, from the fourth quarter 2013. the segment experienced stronger demand for pressure pumping consumable products as activity increased substantially from the prior year period. the segment also benefited from higher sales of valves to the midstream transmission and petrochemical industries compared to the prior year. review and outlook cris gaut, forum’s chairman and chief executive officer, remarked, "forum had an excellent year in 2014. we delivered record financial results, strengthened our management team, and improved operational performance. "we began to see the impact of lower oil prices on our operations late in the fourth quarter of 2014, with some customers deferring deliveries of completed drilling equipment and other capital items into 2015. new orders received by forum in the fourth quarter were $420 million, resulting in a book to bill ratio of 96%. "our drilling & subsea segment fourth quarter 2014 revenue declined $29 million, or 10%, sequentially on customer delays in accepting delivery of drilling equipment and softer demand for consumable products across the segment. operating income excluding non-operational items was $47 million, a decrease of 18% sequentially. "the production & infrastructure segment experienced a sequential decrease in revenue of $1 million compared to the third quarter 2014. operating income excluding non-operational items was $32 million, an increase of 9% sequentially, due to higher sales of pressure pumping consumables. “forum repurchased 4.4 million shares of common stock in the fourth quarter for $100 million, which was funded from cash flow. “this year will be quite a challenge for all industry participants. we have a high weighting of consumable products and capital equipment with a short sales cycle. as a result, we have begun to take steps to reduce our costs in anticipation of a sharp reduction in oil service activity and have taken a $3 million restructuring charge associated with these cost reductions in the fourth quarter. "forum expects diluted earnings per share for the first quarter 2015 of $0.27 to $0.33. "for 2015, we remain focused on generating free cash flow, protecting margins, improving operational performance, and executing our acquisition strategy. in that regard, we are pleased with our recent acquisition of j-mac, a manufacturer of pressure pumping equipment and consumable products, which will begin to contribute to our results in the first quarter." recent events forum rated #1 for downhole drilling equipment and for cementing equipment in the energypoint research 2014 oilfield products & services customer satisfaction survey. forum received an order from akastor offshore to supply a third subsea orientation equipment system (soes). forum’s custom designed soes 3, the latest generation system, is designed for operation from an offshore support vessel for the installation of subsea wellhead equipment. forum opened its new pressure pumping consumable equipment manufacturing facility near corpus christi, texas. during the first quarter 2015, forum acquired j-mac tool, inc. (j-mac). located in fort worth, texas, j-mac manufactures high quality hydraulic fracturing pumps, power ends, fluid ends, and other accessories. j-mac also provides repair and refurbishment services for power ends and fluid ends at its main fort worth facility and at service centers located in the eagle ford and permian basins. conference call information forum's conference call is scheduled for february 12, 2015 at 9:00 am ct. during the call, the company intends to discuss fourth quarter 2014 results. to participate in the earnings conference call, please call 888-680-0865 within north america, or 617-213-4853 outside of north america. the access code is 30596102. 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 888-286-8010 within north america, or 617-801-6888 outside of north america. the access code is 52266840. 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. with over 3,700 employees, 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. december 31,2014 december 31,2013 total ebitda three months ended operatingincome dilutedeps operatingincome ebitda (1) dilutedeps operatingincome dilutedeps operatingincome dilutedeps operatingincome dilutedeps (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. december 31, 2014 ebitda reconciliation (1) december 31, 2014
