Good Start of the Year for Forum Energy Technologies (USA)

Good Start of the Year for Forum Energy Technologies (USA)

Forum Energy Technologies, Inc. announced first quarter 2013 revenue of $373 million compared to $363 million for the first quarter 2012. Net income for the first quarter 2013 was $32 million, down from the first quarter 2012 net income of $42 million.

Diluted earnings per share for the first quarter 2013 were $0.34, compared to first quarter 2012 diluted earnings per share of $0.57. The first quarter 2012 diluted earnings per share did not include the impact of the 16.6 million shares issued in connection with Forum’s initial public offering in April 2012.

First Quarter Results by Segment

Drilling & Subsea

Drilling & Subsea revenue in the first quarter 2013 was $222 million, an increase of $9 million, or 4%, from the first quarter 2012 primarily due to the benefit of the four acquisitions completed during the fourth quarter 2012. The Subsea Technologies product line had increased revenue of 28% over the first quarter 2012 on contribution from the Dynacon and Syntech acquisitions, and in the first quarter 2013, received a record level of new orders for remotely operated vehicles (ROVs) and related equipment and products. The Drilling Technologies product line had decreased revenue of 11% compared to the first quarter 2012, in line with the decrease in the North America land rig count.

Production & Infrastructure

Production & Infrastructure revenue in the first quarter 2013 was $151 million, which was flat compared to the first quarter 2012 due to the decline in the Flow Equipment product line revenue from the very high levels in the 2012 period. Both the Production Equipment and Valve Solutions product lines had increased revenue of approximately 20% over the first quarter 2012 on strong demand for production and processing systems and continued good market activity in the midstream transmission and petrochemical industries. Forum’s Production Equipment product line generated record revenue in the first quarter 2013.

Review and Outlook

Cris Gaut, Chairman and Chief Executive Officer of Forum, remarked, “Forum had a good first quarter and start to the year. We improved sequential revenue, operating income, and margin in both business segments on improved customer spending for our capital equipment and consumable products, and the full quarter benefit of the four acquisitions completed during the fourth quarter 2012. We are progressing well with the integration of the four acquisitions.

“We are especially pleased with the performance of our Subsea, Valves and Production Equipment product lines. However, the Drilling Technologies product line continues to face demand softness due to the depressed North America land drilling market. Although we are seeing an increase in international drilling capital equipment orders, these orders are typically associated with extended delivery times. We are also seeing pricing pressure for certain products within Drilling Technologies and Flow Equipment.

“Forum expects diluted earnings per share for the second quarter 2013 of $0.35 to $0.40, and the full year 2013 of $1.70 to $1.80.”

Recent Events

– A contract with Helix Energy to supply a PerryTM XT1500 Trenching system and two XLX 200HP ROV systems.

– The sale of three PerryTM XLX 150HP ROVs and one Sub-AtlanticTM Comanche ROV to Integrated Subsea Services Ltd.

– Our Production Equipment product line was awarded several projects for the EDGETM II desalting technology processing equipment and additional awards for multi-well modular surface production equipment.

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Press Release, April 26, 2013