Forum Energy Technologies has delivered fourth quarter 2014 revenue of $439 million, an increase of $45 million or 11%, from the fourth quarter 2013.
Net income for the quarter was $46 million, or $0.49 per diluted share, compared to $35 million, or $0.36 per diluted share, for the prior year period.
Excluding $0.01 per share of non-operational items, adjusted diluted earnings per share were $0.48 in the fourth quarter of 2014. See Table 1 for a reconciliation of GAAP to non-GAAP financial information.
Forum’s total revenue for the full year 2014 was a record $1.7 billion, an increase of $215 million or 14%, from 2013.
Net income was a record $174 million, or $1.83 per diluted share. Excluding $0.02 per share of non-operational items, adjusted diluted earnings per share were $1.85 for the full year 2014.
Free cash flow for the full year 2014 was a record $219 million, and adjusted EBITDA for the year excluding non-operational items was a record $340 million, or 19.5% of revenue.
Cris Gaut, Forum’s Chairman and Chief Executive Officer, commented: “Forum had an excellent year in 2014. We delivered record financial results, strengthened our management team, and improved operational performance.
“We began to see the impact of lower oil prices on our operations late in the fourth quarter of 2014, with some customers deferring deliveries of completed drilling equipment and other capital items into 2015. New orders received by Forum in the fourth quarter were $420 million, resulting in a book to bill ratio of 96%.
“This year will be quite a challenge for all industry participants. We have a high weighting of consumable products and capital equipment with a short sales cycle. As a result, we have begun to take steps to reduce our costs in anticipation of a sharp reduction in oil service activity and have taken a $3 million restructuring charge associated with these cost reductions in the fourth quarter.
“Forum expects diluted earnings per share for the first quarter 2015 of $0.27 to $0.33.
“For 2015, we remain focused on generating free cash flow, protecting margins, improving operational performance, and executing our acquisition strategy. In that regard, we are pleased with our recent acquisition of J-Mac, a manufacturer of pressure pumping equipment and consumable products, which will begin to contribute to our results in the first quarter.”