Forum Energy Technologies, Inc. today announced fourth quarter 2013 revenue of $394 million compared to $330 million for the fourth quarter 2012.
Net income for the fourth quarter was $35 million or $0.36 per diluted share compared to $24 million or $0.26 per diluted share for the prior year period. Included in the fourth quarter results were $0.03 per share of restructuring charges and several non-operational items. Excluding these items, adjusted diluted earnings per share were $0.39.
Forum’s total revenue for the full year 2013 was $1.5 billion, an increase of $110 million, or 8% from 2012. Net income was $130 million or $1.37 per diluted share. Included in the full year 2013 results were $0.13 per share of restructuring charges and several non-operational items. Excluding these items, adjusted diluted earnings per share were $1.50.
Fourth Quarter Results by Segment
Drilling & Subsea
Drilling & Subsea revenue in the fourth quarter was $261 million, an increase of $74 million, or 40%, from the fourth quarter 2012. The revenue improvement was due to the contribution of recent acquisitions and the organic growth in sales for drilling, subsea, and downhole equipment and products over the prior year period.
Production & Infrastructure
Production & Infrastructure revenue in the fourth quarter was $133 million, a decrease of $11 million from the fourth quarter 2012 due to lower sales of valves. The segment experienced flat demand for pressure pumping consumable products and production and processing systems over the prior year period.
Review and Outlook
Cris Gaut, Forum’s Chairman and Chief Executive Officer, remarked, “Forum had a challenging year in 2013, yet had a number of important achievements. We realized free cash flow of $151 million, issued $400 million senior unsecured notes, and integrated seven acquisitions including three that closed in 2013.
“During the fourth quarter 2013, we achieved record revenue of $394 million and record orders of $387 million.
“Our Drilling & Subsea segment achieved a 5% increase in sequential revenue compared to the third quarter 2013 on record quarterly sales of drilling and downhole equipment and products, partially offset by delays related to remotely operated vehicles and subsea components.
“The Production & Infrastructure segment experienced a sequential decline in revenue as severe winter storms in the fourth quarter affected production at manufacturing facilities and the delivery of product and equipment to customers.
“As we start 2014, we remain focused on driving growth, improving operational performance, and increasing our operating margins.”
Forum signed a contract with DOF Subsea to supply seven Perry™ XLX 200HP work-class remotely operated vehicle (ROV) systems, including five Dynacon launch and recovery systems. Frurthermore, Forum officially opened its new 150,000 square foot drilling equipment manufacturing facility in Broussard, LA. Also, Forum signed a contract with another customer to supply eight work-class ROVs for delivery beginning in late 2014.