NYSE$FET

Forum Energy Technologies Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Forum Energy Technologies reported first quarter results with revenue of $183 million and a net loss of $37 million.

Forum Energy Technologies reported a challenging first quarter due to the decline in oil demand and prices. Revenue was $183 million, and the company experienced a net loss of $37 million, or $0.33 per diluted share. The company is implementing cost reduction measures and focusing on cash flow generation.

  • Revenue for Q1 2020 was $183 million, a decrease of $17 million from Q4 2019.
  • Net loss for the quarter was $37 million, or $0.33 per diluted share, compared to a net loss of $12 million, or $0.11 per diluted share, for Q4 2019.
  • Adjusted EBITDA for the quarter was $1.3 million, a decrease of approximately $9.4 million from Q4 2019.
  • Net debt was reduced by $6.9 million from year end 2019.

Headline financials

Total Revenue

$183M

Previous: $272M-32.8%
EPS (adj)

-$4.00

Previous: -$0.80-400.0%
Adjusted EBITDA

$1.3M

No prior period
Capital Expenditures

-$958K

Previous: -$3.69M+74.0%
Free Cash Flow

-$38.1M

Previous: -$11.6M-229.2%
Net Income

-$37.1M

Previous: -$7.89M-370.9%
Operating Income

-$55.4M

Previous: $4.3M-1389.4%
Gross Profit

$22.1M

Previous: $70.1M-68.5%
Cash & Equivalents

$109M

Previous: $29.7M+266.9%
Total Assets

$1.15B

Previous: $1.85B-38.1%
Stock-Based Comp

$3.22M

Previous: $3.91M-17.6%

Revenue & EPS history

Forum · Revenue · Quarterly

$183M

Q1 2020-32.8%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Forum · $209M total across 2 segments · Q1 2026

  • Drilling and Completions
    $127M
  • Artificial Lift and Downhole
    $82.1M

Forward guidance

Forum expects a significant decline in revenues and operating results in the second quarter 2020 due to the impact of the coronavirus and the collapse in oil prices. The magnitude of the decline and the timing of a recovery are uncertain.

Tailwinds

  • Forum is moving swiftly to reduce costs and manage the business to maximize cash flow.
  • A plan is in place that is expected to result in a reduction of at least $50 million in selling, general and administrative costs on an annualized basis.
  • The company will continue to emphasize and protect its winning products.
  • Forum continues to see activity outside of the North American oil and gas market for several of its products.
  • Forum will continue to focus on generating free cash flow and adjusting its cost structure.

Headwinds

  • The recent unprecedented decline in oil demand and oil prices is causing a collapse in drilling and completions activity.
  • Demand is very low for the new capital equipment and shorter cycle products Forum provides.
  • The company expects a more significant negative impact on subsequent quarters this year.
  • Revenues and operating results are expected to experience a significant decline in the second quarter 2020.
  • The magnitude of the decline and the timing of a recovery are uncertain.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+1.5%

Avg return

5 days after

-0.5%

Avg return

30 days after

52%

32 / 61 earnings

Positive

+22.0%

Q1 2020

Best reaction

-22.2%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-10.5%+3.4%-8.6%
Q4 2025+9.3%+11.3%+6.1%
Q3 2025-10.4%-9.9%-2.5%
Q1 2025-1.5%-9.2%-2.6%
Q4 2024-3.7%-2.8%+8.1%
Q3 2024-0.4%+7.5%+8.8%
Q2 2024-10.2%-13.2%-6.0%
Q1 2024+0.2%+3.6%-1.3%
Q4 2023-1.2%+6.0%+5.9%
Q3 2023+8.5%+2.7%+3.4%
Q2 2023-7.4%-9.7%-9.3%
Q1 2023+5.2%+6.9%+16.3%
Q4 2022-7.4%-5.8%-27.4%
Q3 2022+3.1%+9.1%+7.7%
Q2 2022+14.0%+21.7%+31.2%
Q1 2022-5.0%-12.5%+11.7%
Q4 2021-1.7%+7.5%+20.0%
Q3 2021-2.5%-6.5%-27.5%
Q2 2021+0.7%+4.4%+1.1%
Q1 2021+13.6%+12.1%+31.9%
Q4 2020+6.0%+13.1%+2.0%
Q3 2020-5.2%-2.8%+48.9%
Q2 2020-15.4%-13.2%-1.9%
Q1 2020+22.0%+23.7%+36.8%
Q4 2019+10.7%-1.0%-58.3%
Q3 2019+4.2%+16.1%-3.4%
Q2 2019-2.1%+7.8%-34.6%
Q1 2019+11.1%+8.3%-21.2%
Q4 2018+11.2%+29.3%-4.2%
Q3 2018+2.2%+2.1%-16.5%
Q2 2018+13.4%+1.7%+4.7%
Q1 2018+6.7%+10.3%+12.3%
Q4 2017-22.2%-24.5%-20.5%
Q3 2017+8.3%+4.8%+4.9%
Q2 2017-13.4%-14.1%-31.0%
Q1 2017-11.7%-18.3%-13.8%
Q4 2016-6.6%-9.8%-17.4%
Q3 2016-6.8%-8.3%+5.3%
Q2 2016+2.4%+6.0%+20.1%
Q1 2016+9.3%
Q4 2015+1.4%
Q3 2015+6.2%
Q2 2015-17.5%
Q1 2015+6.6%
Q4 2014+12.9%
Q3 2014+0.8%
Q2 2014-3.6%
Q1 2014+1.6%
Q4 2013+2.3%
Q3 2013-3.3%
Q2 2013-4.2%
Q1 2013-3.0%
Q4 2010-0.3%
Q4 2012+4.0%
Q3 2011-3.8%
Q3 2012+1.9%
Q2 2011+1.1%
Q2 2012+4.7%
Q1 2011-1.5%
Q4 2011-1.5%
Q1 2012+4.2%
Q3 2010

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