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Mar 31, 2020
Forum Q1 2020 Earnings Report
Forum Energy Technologies reported first quarter results with revenue of $183 million and a net loss of $37 million.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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