Forum Energy Technologies, Inc. Announces Preliminary Second Quarter 2020 Financial Results
July 13 2020 - 5:24PM
Business Wire
Forum Energy Technologies, Inc. (“Forum” or the “Company”)
(NYSE: FET) today announced that revenue for the second quarter
2020 is now projected to be in the range of $110 to $115 million, a
decline of approximately 37-40% from first quarter revenue of $183
million. Free cash flow after capital expenditures and interest
expense for the quarter is now expected to be approximately
negative $6 million. Due to the preliminary nature of this
guidance, a reconciliation to cash flow from operations is not
currently available. A full reconciliation will be provided with
the Forum’s second quarter 2020 earnings announcement, which is
currently scheduled to be released in the beginning of August
2020.
Cris Gaut, Forum’s Chairman and CEO commented, “In the second
quarter, our industry saw an unprecedented decrease in U.S.
drilling and completion activity levels, as evidenced by the
roughly 67% decline in the U.S. drilling rig count from the first
quarter average to current levels. This extremely steep decline,
and the resulting lack of spending by Forum’s drilling and
completion services customers, adversely impacted Forum’s revenue.
In response to this decrease in revenue, Forum executed an
aggressive cost reduction plan. Despite these cost reduction
efforts, we expect the sharp decreases in revenue to have a
significant negative impact on our financial results including net
income, operating income, and adjusted EBITDA. We continue to focus
on addressing our impending long-term debt maturity through our
recently announced debt exchange offer. We believe that sizing the
company for the current market environment, while emphasizing our
winning products, will position Forum for success once drilling and
completion activity levels improve.”
Preliminary Financial
Information
The foregoing preliminary unaudited financial information is
based on estimates and subject to completion of the Company’s
financial closing procedures and audit processes. Such information
has been prepared by management solely based on currently available
information. The preliminary unaudited information does not
represent and is not a substitute for a comprehensive statement of
financial and operating results, and the Company’s actual results
may differ materially from these estimates because of final
adjustments, the completion of the Company’s financial closing
procedures, and other developments after the date of this
release.
Non-GAAP Financial
Measures
Free cash flow is a non-GAAP financial measure. The Company
believes free cash flow is an important measure because it
encompasses both profitability and capital management in evaluating
results. The presentation of free cash flow is not meant to be
considered in isolation or as a substitute for the Company’s
financial results prepared in accordance with GAAP.
About Forum
Forum Energy Technologies, Inc. is a global oilfield products
company, serving the drilling, downhole, subsea, completions and
production 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200713005684/en/
Investor Contact Lyle Williams 713.351.7920
lyle.williams@f-e-t.com
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