Frank’s International N.V. (NYSE: FI) (the “Company” or “Frank’s”)
today reported financial and operational results for the three and
six months ended June 30, 2020.
Second Quarter 2020 Financial
Highlights
- Second quarter net loss of $34.2
million improved over prior period resulting from market-related
impairments taken in the first quarter of 2020.
- Second quarter revenue of $86.1
million and Adjusted EBITDA of ($1.7) million reflecting
decremental margin of 24% driven by cost reductions.
- Second quarter cash flows from
operating activities of $26.4 million and free cash flow of $16.1
million both showing a significant improvement from the prior
quarter.
- Actions both completed and in
progress expanding previously announced cost reduction initiatives,
projecting an approximate 25% year over year reduction in
costs.
“The second quarter reflects the sudden and
historic downturn in our industry created by the Covid-19 pandemic
and highly volatile and lower oil prices. During the quarter, we
saw some of our highest producing geographies experience reductions
in rig activity of greater than 80% resulting in a significant
revenue decline. We communicated our aggressive cost cutting
measures last quarter, and I am very pleased that Frank’s
management and our entire employee base has executed various cost
reduction plans expeditiously, the results of which are reflected
in our reported results. While we cannot control the operational
plans of our customers and the resulting short term revenue swings
we experience, we can and have controlled our costs during the
quarter, holding decremental margins to less than 25%. This was
made possible through the effective management of a wide range of
cost control measures that we accelerated and intensified over the
past quarter. Cost containment and efficiency is not a periodic
exercise but something we are practicing on a daily basis at
Frank’s. The entire Frank’s team remains focused on exploring
opportunities to work more efficiently in the future and reset our
cost base,” said Michael Kearney, the Company’s Chairman, President
and Chief Executive Officer.
“We are also focused on maintaining a strong
balance sheet and cash position. Our progress in this area is
reflected by the resurgence in our cash balance from year end
levels and strong free cash flow during the quarter.”
Mr. Kearney continued, “Our customers and their
respective drilling programs continue to show impacts from Covid-19
shutdowns due to logistics issues, as well as delays in the
start-up of new drilling programs. We are seeing signs of
stabilization, with some rigs recommencing work in the third
quarter and others planned to begin programs during the fourth
quarter. As we navigate the Covid-19 pandemic, protecting the
health and safety of our employees, customers and communities
remains of the utmost importance, with our cross-functional
Covid-19 task force overseeing ongoing, localized risk assessment
and modified work protocols.
“Frank’s continues to generate value for our
customers by offering technological solutions that safely reduce
the time to drill, case and complete wells. Our multi-product line
solutions add value in the most extreme applications, most recently
with a joint Cementing and TRS operation on behalf of a major
operator in the Gulf of Mexico. Following intensive pre-job
technical analysis, the ultra-heavy landing string installation
utilized multiple Frank’s load bearing technologies. The combined
solutions facilitated a safe and efficient operation, while
achieving a customer hook load record, adding to the Frank’s
history of record hook load achievements.
“Frank’s also recently introduced the Caseless
Insertable™ Float System, a new cementing technology suitable for a
float collar, landing collar and guide or float shoe assembly. This
versatile, patented solution offers a modular design and threadless
interface that can be configured to a wide range of operational
requirements, eliminating specialized premium connections,
manufacturing lead time and the costs associated with transporting
and storing excess inventory. It has performed successfully in both
offshore and onshore applications, most recently on behalf of a
major operator in the U.S. onshore market.
“In summary, we have aggressively responded to
recent market shocks and continued to place our strongest focus on
delivering exemplary service to our customers. Our employees have
demonstrated their commitment to excellence and this organization,
and we are poised to weather these conditions and position
ourselves well for an eventual recovery,” concluded Mr.
Kearney.
Segment Results
Tubular Running Services
Tubular Running Services revenue was $62.3
million for the second quarter of 2020, compared to $89.5 million
in the first quarter of 2020, and $106.6 million for the second
quarter of 2019. The decrease in sequential revenue, which is down
30% from the first quarter and 42% from the prior year quarter, was
primarily driven by activity disruptions brought about from
Covid-19 and customer spending cuts in response to falling oil
prices, with the largest impacts felt in the U.S. onshore and
offshore markets. In Africa, personnel logistics issues and reduced
activity levels, also as a consequence of Covid-19, further
contributed to the decline.
Segment adjusted EBITDA for the second quarter
of 2020 was $4.1 million, or 7% of revenue, compared to $13.3
million, or 15% of revenue, for the first quarter of 2020 and $25.4
million, or 24% of revenue, for the second quarter of 2019. The
adjusted EBITDA deterioration is related to the revenue declines
experienced due to current market conditions, especially in U.S.
onshore and offshore markets as well as in Africa.
Tubulars
Tubulars revenue for the second quarter of 2020
was $8.7 million, compared to $12.5 million for the first quarter
of 2020, and $22.3 million for the second quarter of 2019. The
sequential decrease was the result of lower demand for the
Company’s tubular products in light of reduced drilling program
activity.
Segment adjusted EBITDA for the second quarter
of 2020 was $0.7 million, or 8% of revenue, compared to $1.4
million, or 11% of revenue, for the first quarter of 2020 and $3.9
million, or 18% of revenue for the second quarter of 2019. The
sequential decrease was driven by lower revenue levels.
Cementing Equipment
Cementing Equipment revenue was $15.0 million in
the second quarter of 2020, compared to $21.5 million in the first
quarter of 2020 and $26.7 million for the second quarter of 2019.
The sequential decline was driven by significantly reduced customer
activity in the U.S. onshore and offshore market. The
year-over-year decline is primarily related to the decline in the
U.S. onshore market which began during the second half of 2019.
Segment adjusted EBITDA for the second quarter
of 2020 was $0.9 million, or 6% of revenue, compared to $2.5
million, or 12% of revenue, for the first quarter of 2020 and $3.0
million, or 11% of revenue, for the second quarter of 2019. Lower
adjusted EBITDA was driven by revenue declines brought about by
market contractions in North and South America.
Profit Improvement Actions Update
As an update to the progress made in reducing
the cost base of the Company, Frank’s now anticipates realizing
reductions to its cost structure of at least 25% year over year
including both operational and support costs. The cost reductions
achieved specific to Company support costs are now estimated to
yield savings in excess of $50 million in 2020. Compensation cost
estimates are expected to be reduced by 30% year over year. The
Company intends to continue pursuing additional efficiencies in the
coming quarters that are expected to result in further savings.
Other Financial Information
Cash expenditures related to property, plant and
equipment and intangibles were $10.3 million for the second quarter
of 2020, with the significant majority of this spend related to
in-flight capital projects approved and initiated during 2019. The
Company estimates total capital expenditures for the full year 2020
to range between $25.0 million and $30.0 million.
As of June 30, 2020, the Company’s consolidated
cash and cash equivalents were $192.9 million compared to $170.9
million as of the prior quarter, an improvement of $22 million. The
Company had no outstanding debt as of June 30, 2020 nor as of the
prior quarter. Total liquidity at June 30, 2020 was $218 million,
including cash and cash equivalents, and $25 million available
under the Company’s Credit Facility. For the second quarter of
2020, the Company generated operating cash flow of $26.4 million
and free cash flow of $16.1 million. This was produced from both
improved customer collections in the quarter and benefits of cost
reductions.
Income tax expense for the quarter was $9.0
million compared to an income tax benefit in the first quarter of
$15.6 million largely attributable to credits resulting from
governmental and regulatory support programs.
The financial measures provided that are not
presented in accordance with U.S. generally accepted accounting
principles (“GAAP”) are defined and reconciled to their most
directly comparable GAAP measures. Please see “Use of Non-GAAP
Financial Measures” and the reconciliations to the nearest
comparable GAAP measures.
Conference Call
The Company will host a conference call to
discuss second quarter 2020 results on Tuesday, August 4, 2020 at
10:00 a.m. Central Time (11:00 a.m. Eastern Time). Participants may
join the conference call by dialing (800) 708-4540 or (847)
619-6397. The conference call ID number is 49849977. To listen via
live webcast, please visit the Investor Relations section of the
Company's website, www.franksinternational.com. A presentation will
also be posted on the Company’s website prior to the conference
call.
An audio replay of the conference call will be
available in the Investor Relations section of the Company’s
website approximately two hours after the conclusion of the call
and remain available for a period of approximately 90 days.
About Frank’s International
Frank’s International N.V. is a global oil
services company that provides a broad and comprehensive range of
highly engineered tubular running services, tubular fabrication,
and specialty well construction and well intervention solutions
with a focus on complex and technically demanding wells. Founded in
1938, Frank’s has approximately 2,700 employees and provides
services to leading exploration and production companies in both
onshore and offshore environments in approximately 50 countries on
six continents. The Company’s common stock is traded on the NYSE
under the symbol “FI.” Additional information is available on the
Company’s website, www.franksinternational.com.
Contact:
Melissa CougleMelissa.Cougle@franksintl.com281-966-7300
FRANK’S INTERNATIONAL N.V. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue: |
|
|
|
|
|
|
|
|
|
Services |
$ |
74,583 |
|
|
$ |
105,083 |
|
|
$ |
127,091 |
|
|
$ |
179,666 |
|
|
$ |
242,497 |
|
Products |
11,518 |
|
|
18,409 |
|
|
28,563 |
|
|
29,927 |
|
|
57,565 |
|
Total revenue |
86,101 |
|
|
123,492 |
|
|
155,654 |
|
|
209,593 |
|
|
300,062 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Cost of revenue, exclusive of depreciation and amortization |
|
|
|
|
|
|
|
|
|
Services |
61,051 |
|
|
79,380 |
|
|
85,785 |
|
|
140,431 |
|
|
169,024 |
|
Products |
8,286 |
|
|
13,988 |
|
|
23,475 |
|
|
22,274 |
|
|
43,603 |
|
General and administrative expenses |
22,286 |
|
|
26,683 |
|
|
34,026 |
|
|
48,969 |
|
|
69,437 |
|
Depreciation and amortization |
17,252 |
|
|
19,718 |
|
|
23,913 |
|
|
36,970 |
|
|
49,155 |
|
Goodwill impairment |
— |
|
|
57,146 |
|
|
— |
|
|
57,146 |
|
|
— |
|
Severance and other charges, net |
5,162 |
|
|
20,725 |
|
|
815 |
|
|
25,887 |
|
|
1,270 |
|
(Gain) loss on disposal of assets |
(650 |
) |
|
60 |
|
|
154 |
|
|
(590 |
) |
|
381 |
|
Operating loss |
(27,286 |
) |
|
(94,208 |
) |
|
(12,514 |
) |
|
(121,494 |
) |
|
(32,808 |
) |
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Tax receivable agreement (“TRA”) related adjustments |
— |
|
|
— |
|
|
220 |
|
|
— |
|
|
220 |
|
Other income, net |
156 |
|
|
2,026 |
|
|
669 |
|
|
2,182 |
|
|
1,198 |
|
Interest income, net |
178 |
|
|
533 |
|
|
426 |
|
|
711 |
|
|
1,194 |
|
Foreign currency gain (loss) |
1,693 |
|
|
(9,892 |
) |
|
(661 |
) |
|
(8,199 |
) |
|
(178 |
) |
Total other income (expense) |
2,027 |
|
|
(7,333 |
) |
|
654 |
|
|
(5,306 |
) |
|
2,434 |
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
(25,259 |
) |
|
(101,541 |
) |
|
(11,860 |
) |
|
(126,800 |
) |
|
(30,374 |
) |
Income tax expense
(benefit) |
8,986 |
|
|
(15,563 |
) |
|
3,300 |
|
|
(6,577 |
) |
|
13,073 |
|
Net loss |
$ |
(34,245 |
) |
|
$ |
(85,978 |
) |
|
$ |
(15,160 |
) |
|
$ |
(120,223 |
) |
|
$ |
(43,447 |
) |
|
|
|
|
|
|
|
|
|
|
Loss per common
share: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.19 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
225,853 |
|
|
225,505 |
|
|
225,052 |
|
|
225,855 |
|
|
224,854 |
|
FRANK’S INTERNATIONAL N.V. |
SELECTED OPERATING SEGMENT DATA |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
|
|
|
|
|
|
|
|
|
Tubular Running Services |
$ |
62,327 |
|
|
$ |
89,497 |
|
|
$ |
106,615 |
|
|
$ |
151,824 |
|
|
$ |
204,694 |
|
Tubulars |
8,741 |
|
|
12,542 |
|
|
22,334 |
|
|
21,283 |
|
|
40,991 |
|
Cementing Equipment |
15,033 |
|
|
21,453 |
|
|
26,705 |
|
|
36,486 |
|
|
54,377 |
|
Total |
$ |
86,101 |
|
|
$ |
123,492 |
|
|
$ |
155,654 |
|
|
$ |
209,593 |
|
|
$ |
300,062 |
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
Tubular Running Services |
$ |
4,049 |
|
|
$ |
13,305 |
|
|
$ |
25,400 |
|
|
$ |
17,354 |
|
|
$ |
43,135 |
|
Tubulars |
681 |
|
|
1,396 |
|
|
3,934 |
|
|
2,077 |
|
|
8,046 |
|
Cementing Equipment |
886 |
|
|
2,544 |
|
|
3,029 |
|
|
3,430 |
|
|
6,823 |
|
Corporate |
(7,308 |
) |
|
(10,186 |
) |
|
(15,200 |
) |
|
(17,494 |
) |
|
(31,183 |
) |
Total |
$ |
(1,692 |
) |
|
$ |
7,059 |
|
|
$ |
17,163 |
|
|
$ |
5,367 |
|
|
$ |
26,821 |
|
FRANK’S INTERNATIONAL N.V. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
June 30, |
|
December 31, |
|
2020 |
|
2019 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
192,921 |
|
|
$ |
195,383 |
|
Restricted cash |
1,358 |
|
|
1,357 |
|
Accounts receivables, net |
137,068 |
|
|
166,694 |
|
Inventories, net |
79,857 |
|
|
78,829 |
|
Assets held for sale |
8,732 |
|
|
13,795 |
|
Other current assets |
8,943 |
|
|
10,360 |
|
Total current assets |
428,879 |
|
|
466,418 |
|
|
|
|
|
Property, plant and equipment, net |
297,794 |
|
|
328,432 |
|
Goodwill |
42,785 |
|
|
99,932 |
|
Intangible assets, net |
9,643 |
|
|
16,971 |
|
Deferred tax assets, net |
15,774 |
|
|
16,590 |
|
Operating lease right-of-use assets |
29,594 |
|
|
32,585 |
|
Other assets |
29,513 |
|
|
33,237 |
|
Total assets |
$ |
853,982 |
|
|
$ |
994,165 |
|
|
|
|
|
Liabilities and
Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
104,022 |
|
|
$ |
120,321 |
|
Current portion of operating lease liabilities |
7,854 |
|
|
7,925 |
|
Deferred revenue |
425 |
|
|
657 |
|
Total current liabilities |
112,301 |
|
|
128,903 |
|
|
|
|
|
Deferred tax liabilities |
1,503 |
|
|
2,923 |
|
Non-current operating lease liabilities |
22,803 |
|
|
24,969 |
|
Other non-current liabilities |
23,711 |
|
|
27,076 |
|
Total liabilities |
160,318 |
|
|
183,871 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock |
2,860 |
|
|
2,846 |
|
Additional paid-in capital |
1,082,008 |
|
|
1,075,809 |
|
Accumulated deficit |
(341,349 |
) |
|
(220,805 |
) |
Accumulated other comprehensive loss |
(30,013 |
) |
|
(30,298 |
) |
Treasury stock |
(19,842 |
) |
|
(17,258 |
) |
Total stockholders’ equity |
693,664 |
|
|
810,294 |
|
Total liabilities and equity |
$ |
853,982 |
|
|
$ |
994,165 |
|
FRANK’S INTERNATIONAL N.V. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
|
|
|
|
|
Six Months Ended June 30, |
|
2020 |
|
2019 |
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(120,223 |
) |
|
$ |
(43,447 |
) |
Adjustments to reconcile net loss to cash from operating
activities |
|
|
|
Depreciation and amortization |
36,970 |
|
|
49,155 |
|
Equity-based compensation expense |
5,661 |
|
|
5,591 |
|
Goodwill impairment |
57,146 |
|
|
— |
|
Loss on asset impairments and retirements |
20,532 |
|
|
— |
|
Amortization of deferred financing costs |
194 |
|
|
177 |
|
Deferred tax provision (benefit) |
(1,690 |
) |
|
3,702 |
|
Provision for bad debts |
1,750 |
|
|
85 |
|
(Gain) loss on disposal of assets |
(590 |
) |
|
381 |
|
Changes in fair value of investments |
813 |
|
|
(1,879 |
) |
Unrealized (gain) loss on derivative instruments |
— |
|
|
204 |
|
Other |
(380 |
) |
|
(373 |
) |
Changes in operating assets
and liabilities |
|
|
|
Accounts receivable |
24,465 |
|
|
(14,334 |
) |
Inventories |
(4,539 |
) |
|
(2,323 |
) |
Other current assets |
2,272 |
|
|
2,063 |
|
Other assets |
390 |
|
|
111 |
|
Accounts payable and accrued liabilities |
(15,187 |
) |
|
(17,118 |
) |
Deferred revenue |
(226 |
) |
|
22 |
|
Other non-current liabilities |
(3,212 |
) |
|
594 |
|
Net cash provided by
(used in) operating activities |
4,146 |
|
|
(17,389 |
) |
Cash flows from
investing activities |
|
|
|
Purchases of property, plant
and equipment and intangibles |
(20,259 |
) |
|
(17,240 |
) |
Proceeds from sale of
assets |
6,565 |
|
|
260 |
|
Purchase of investments |
— |
|
|
(20,185 |
) |
Proceeds from sale of
investments |
2,832 |
|
|
31,739 |
|
Other |
(256 |
) |
|
— |
|
Net cash used in
investing activities |
(11,118 |
) |
|
(5,426 |
) |
Cash flows from
financing activities |
|
|
|
Repayments of borrowings |
— |
|
|
(3,492 |
) |
Treasury shares withheld for
taxes |
(1,086 |
) |
|
(1,542 |
) |
Treasury share repurchase |
(1,498 |
) |
|
— |
|
Proceeds from the issuance of
ESPP shares |
552 |
|
|
692 |
|
Deferred financing costs |
— |
|
|
(184 |
) |
Net cash used in
financing activities |
(2,032 |
) |
|
(4,526 |
) |
Effect of exchange rate
changes on cash |
6,543 |
|
|
(416 |
) |
Net decrease in cash, cash
equivalents and restricted cash |
(2,461 |
) |
|
(27,757 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
196,740 |
|
|
186,212 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
194,279 |
|
|
$ |
158,455 |
|
Forward Looking Statements
This 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, as amended. 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 statements, estimates
and projections regarding the Company’s future business strategy
and prospects for growth, cash flows and liquidity, financial
strategy, budget, projections and operating results, the amount,
nature and timing of capital expenditures, the availability and
terms of capital, the level of activity in the oil and gas
industry, volatility of oil and gas prices, unique risks associated
with offshore operations, political, economic and regulatory
uncertainties in international operations, the ability to develop
new technologies and products, the ability to protect intellectual
property rights, the ability to employ and retain skilled and
qualified workers, the level of competition in the Company’s
industry, global or national health concerns, including health
epidemics, including Covid-19, the continuation of a swift and
material decline in global crude oil demand and crude oil prices
for an uncertain period of time, the length of time it will take
for the United States and the rest of the world to slow the spread
of the Covid-19 virus to the point where applicable authorities are
comfortable easing current restrictions on various commercial and
economic activities, future actions of foreign oil producers such
as Saudi Arabia and Russia and the risk that they take actions that
will prolong or exacerbate the current over-supply of crude oil,
the timing, pace and extent of an economic recovery in the United
States and elsewhere, the impact of current and future laws,
rulings, governmental regulations, accounting standards and
statements, and related interpretations, and other guidance. These
statements are based on certain assumptions made by the Company
based on management’s experience, expectations and perception of
historical trends, current conditions, anticipated future
developments and other factors believed to be appropriate.
Forward-looking statements are not guarantees of performance.
Although the Company believes the expectations
reflected in its forward-looking statements are reasonable and are
based on reasonable assumptions, no assurance can be given that
these assumptions are accurate or that any of these expectations
will be achieved (in full or at all) or will prove to have been
correct. Moreover, 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. These include the factors discussed or referenced in
the “Risk Factors” section of the Company’s Annual Report on Form
10-K for the year ended December 31, 2019 filed with the SEC and
the additional factors discussed or referenced in the “Risk
Factors” section of the Company’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2020 that will be filed with the SEC.
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, and we caution you not to rely on them
unduly.
Use of Non-GAAP Financial
Measures
This press release and the accompanying
schedules include the non-GAAP financial measures of adjusted net
loss, adjusted net loss per diluted share, free cash flow, adjusted
EBITDA and adjusted EBITDA margin, which may be used periodically
by management when discussing the Company’s financial results with
investors and analysts. The accompanying schedules of this press
release provide a reconciliation of these non-GAAP financial
measures to their most directly comparable financial measure
calculated and presented in accordance with GAAP. Adjusted net
loss, adjusted net loss per diluted share, free cash flow, adjusted
EBITDA and adjusted EBITDA margin are presented because management
believes these metrics provide additional information relative to
the performance of the Company’s business. These metrics are
commonly employed by financial analysts and investors to evaluate
the operating and financial performance of the Company from period
to period and to compare it with the performance of other publicly
traded companies within the industry. You should not consider
adjusted net loss, adjusted net loss per diluted share, free cash
flow, adjusted EBITDA and adjusted EBITDA margin in isolation or as
a substitute for analysis of the Company’s results as reported
under GAAP. Because adjusted net loss, adjusted net loss per
diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA
margin may be defined differently by other companies in the
Company’s industry, the Company’s presentation of these non-GAAP
financial measures may not be comparable to similarly titled
measures of other companies, thereby diminishing their utility.
The Company defines adjusted net loss as net
loss before goodwill impairment and severance and other charges,
net, net of tax. The Company defines adjusted net loss per share as
net loss before goodwill impairment and severance and other
charges, net, net of tax, divided by diluted weighted average
common shares. The Company defines free cash flow as net cash
provided by (used in) operating activities less purchases of
property, plant and equipment and intangibles. The Company defines
adjusted EBITDA as net income (loss) before interest income, net,
depreciation and amortization, income tax benefit or expense, asset
impairments, gain or loss on disposal of assets, foreign currency
gain or loss, equity-based compensation, the effects of the tax
receivable agreement, unrealized and realized gains or losses and
other non-cash adjustments and other charges or credits. The
Company uses adjusted EBITDA to assess its financial performance
because it allows the Company to compare its operating performance
on a consistent basis across periods by removing the effects of its
capital structure (such as varying levels of interest expense),
asset base (such as depreciation and amortization), income tax,
foreign currency exchange rates and other charges and credits. The
Company defines adjusted EBITDA margin as adjusted EBITDA divided
by total revenue.
Please see the accompanying financial tables for
a reconciliation of these non-GAAP measures to their most directly
comparable GAAP measures.
FRANK’S INTERNATIONAL N.V. |
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATION |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
86,101 |
|
|
|
$ |
123,492 |
|
|
|
$ |
155,654 |
|
|
|
$ |
209,593 |
|
|
|
$ |
300,062 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(34,245 |
) |
|
|
$ |
(85,978 |
) |
|
|
$ |
(15,160 |
) |
|
|
$ |
(120,223 |
) |
|
|
$ |
(43,447 |
) |
|
Goodwill
impairment |
— |
|
|
|
57,146 |
|
|
|
— |
|
|
|
57,146 |
|
|
|
— |
|
|
Severance and
other charges, net |
5,162 |
|
|
|
20,725 |
|
|
|
815 |
|
|
|
25,887 |
|
|
|
1,270 |
|
|
Interest income,
net |
(178 |
) |
|
|
(533 |
) |
|
|
(426 |
) |
|
|
(711 |
) |
|
|
(1,194 |
) |
|
Depreciation and
amortization |
17,252 |
|
|
|
19,718 |
|
|
|
23,913 |
|
|
|
36,970 |
|
|
|
49,155 |
|
|
Income tax expense
(benefit) |
8,986 |
|
|
|
(15,563 |
) |
|
|
3,300 |
|
|
|
(6,577 |
) |
|
|
13,073 |
|
|
(Gain) loss on
disposal of assets |
(650 |
) |
|
|
60 |
|
|
|
154 |
|
|
|
(590 |
) |
|
|
381 |
|
|
Foreign currency
(gain) loss |
(1,693 |
) |
|
|
9,892 |
|
|
|
661 |
|
|
|
8,199 |
|
|
|
178 |
|
|
TRA related
adjustments |
— |
|
|
|
— |
|
|
|
(220 |
) |
|
|
— |
|
|
|
(220 |
) |
|
Charges and
credits (1) |
3,674 |
|
|
|
1,592 |
|
|
|
4,126 |
|
|
|
5,266 |
|
|
|
7,625 |
|
|
Adjusted EBITDA |
$ |
(1,692 |
) |
|
|
$ |
7,059 |
|
|
|
$ |
17,163 |
|
|
|
$ |
5,367 |
|
|
|
$ |
26,821 |
|
|
Adjusted EBITDA margin |
(2.0 |
) |
% |
|
5.7 |
|
% |
|
11.0 |
|
% |
|
2.6 |
|
% |
|
8.9 |
|
% |
|
|
(1) |
Comprised of Equity-based compensation expense (for the three
months ended June 30, 2020, March 31, 2020 and June 30, 2019:
$3,515, $2,146 and $3,017, respectively, and for the six months
ended June 30, 2020 and 2019: $5,661 and $5,591, respectively),
Unrealized and realized (gains) losses (for the three months ended
June 30, 2020, March 31, 2020 and June 30, 2019: $111, $(1,704) and
$(383), respectively, and for the six months ended June 30, 2020
and 2019: $(1,593) and $(691), respectively) and
Investigation-related matters (for the three months ended June 30,
2020, March 31, 2020 and June 30, 2019: $48, $1,150 and $1,492,
respectively, and for the six months ended June 30, 2020 and 2019:
$1,198 and $2,725, respectively). |
FRANK’S INTERNATIONAL N.V. |
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATION |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
SEGMENT ADJUSTED EBITDA RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Segment
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
Tubular Running Services |
$ |
4,049 |
|
|
$ |
13,305 |
|
|
$ |
25,400 |
|
|
$ |
17,354 |
|
|
$ |
43,135 |
|
Tubulars |
681 |
|
|
1,396 |
|
|
3,934 |
|
|
2,077 |
|
|
8,046 |
|
Cementing Equipment |
886 |
|
|
2,544 |
|
|
3,029 |
|
|
3,430 |
|
|
6,823 |
|
Corporate |
(7,308 |
) |
|
(10,186 |
) |
|
(15,200 |
) |
|
(17,494 |
) |
|
(31,183 |
) |
|
(1,692 |
) |
|
7,059 |
|
|
17,163 |
|
|
5,367 |
|
|
26,821 |
|
Goodwill
impairment |
— |
|
|
(57,146 |
) |
|
— |
|
|
(57,146 |
) |
|
— |
|
Severance and
other charges, net |
(5,162 |
) |
|
(20,725 |
) |
|
(815 |
) |
|
(25,887 |
) |
|
(1,270 |
) |
Interest income,
net |
178 |
|
|
533 |
|
|
426 |
|
|
711 |
|
|
1,194 |
|
Depreciation and
amortization |
(17,252 |
) |
|
(19,718 |
) |
|
(23,913 |
) |
|
(36,970 |
) |
|
(49,155 |
) |
Income tax
(expense) benefit |
(8,986 |
) |
|
15,563 |
|
|
(3,300 |
) |
|
6,577 |
|
|
(13,073 |
) |
Gain (loss) on
disposal of assets |
650 |
|
|
(60 |
) |
|
(154 |
) |
|
590 |
|
|
(381 |
) |
Foreign currency
gain (loss) |
1,693 |
|
|
(9,892 |
) |
|
(661 |
) |
|
(8,199 |
) |
|
(178 |
) |
TRA related
adjustments |
— |
|
|
— |
|
|
220 |
|
|
— |
|
|
220 |
|
Charges and
credits (1) |
(3,674 |
) |
|
(1,592 |
) |
|
(4,126 |
) |
|
(5,266 |
) |
|
(7,625 |
) |
Net loss |
$ |
(34,245 |
) |
|
$ |
(85,978 |
) |
|
$ |
(15,160 |
) |
|
$ |
(120,223 |
) |
|
$ |
(43,447 |
) |
|
|
(1) |
Comprised of Equity-based compensation expense (for the three
months ended June 30, 2020, March 31, 2020 and June 30, 2019:
$3,515, $2,146 and $3,017, respectively, and for the six months
ended June 30, 2020 and 2019: $5,661 and $5,591, respectively),
Unrealized and realized gains (losses) (for the three months ended
June 30, 2020, March 31, 2020 and June 30, 2019: $(111), $1,704 and
$383, respectively, and for the six months ended June 30, 2020 and
2019: $1,593 and $691, respectively) and Investigation-related
matters (for the three months ended June 30, 2020, March 31, 2020
and June 30, 2019: $48, $1,150 and $1,492, respectively, and for
the six months ended June 30, 2020 and 2019: $1,198 and $2,725,
respectively). |
FRANK’S INTERNATIONAL N.V. |
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATION |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
FREE CASH FLOW RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating
activities |
$ |
26,398 |
|
|
$ |
(22,252 |
) |
|
$ |
12,381 |
|
|
$ |
4,146 |
|
|
$ |
(17,389 |
) |
Less: purchases of property,
plant and equipment and intangibles |
10,291 |
|
|
9,968 |
|
|
9,095 |
|
|
20,259 |
|
|
17,240 |
|
Free cash
flow |
$ |
16,107 |
|
|
$ |
(32,220 |
) |
|
$ |
3,286 |
|
|
$ |
(16,113 |
) |
|
$ |
(34,629 |
) |
FRANK’S INTERNATIONAL N.V. |
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATION |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF ADJUSTED NET LOSS AND ADJUSTED NET LOSS
PER DILUTED SHARE |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(34,245 |
) |
|
$ |
(85,978 |
) |
|
$ |
(15,160 |
) |
|
$ |
(120,223 |
) |
|
$ |
(43,447 |
) |
Goodwill impairment (net of
tax) |
— |
|
|
55,740 |
|
|
— |
|
|
55,740 |
|
|
— |
|
Severance and other charges,
net (net of tax) |
4,937 |
|
|
20,355 |
|
|
613 |
|
|
25,292 |
|
|
1,067 |
|
Net loss excluding
certain items |
$ |
(29,308 |
) |
|
$ |
(9,883 |
) |
|
$ |
(14,547 |
) |
|
$ |
(39,191 |
) |
|
$ |
(42,380 |
) |
|
|
|
|
|
|
|
|
|
|
Loss per diluted
share |
$ |
(0.15 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.19 |
) |
Goodwill impairment (net of
tax) |
— |
|
|
0.25 |
|
|
— |
|
|
0.25 |
|
|
— |
|
Severance and other charges,
net (net of tax) |
0.02 |
|
|
0.09 |
|
|
— |
|
|
0.11 |
|
|
— |
|
Loss per diluted share
excluding certain items |
$ |
(0.13 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.19 |
) |
Fiserv (NYSE:FI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Fiserv (NYSE:FI)
Historical Stock Chart
From Apr 2023 to Apr 2024