Forum Energy Technologies, Inc. (FET) has reported a 21.37 percent fall in profit for the quarter ended Mar. 31, 2015. The company has earned $28.70 million, or $0.31 a share in the quarter, compared with $36.50 million, or $0.38 a share for the same period last year. On an adjusted basis, earnings per share were at $0.30 for the quarter compared with $0.40 in the same period last year. Revenue during the quarter dropped 13.82 percent to $348.10 million from $403.90 million in the previous year period. Total expenses were 88.45 percent of quarterly revenues, up from 84.80 percent for the same period last year. That has resulted in a contraction of 365 basis points in operating margin to 11.55 percent.
Operating income for the quarter was $40.20 million, compared with $61.40 million in the previous year period.
However, the adjusted operating income for the quarter stood at $45.30 million compared to $62.30 million in the prior year period.
Cris Gaut, Forum's chairman and chief executive officer, remarked, "Given the rapid decline of the drilling and completions sector, Forum had a relatively good first quarter.
The company expects diluted earnings per share to be in the range of $0.15 to $0.20 for the second-quarter.
Operating cash flow declines
Forum Energy Technologies, Inc. has generated cash of $48.50 million from operating activities during the quarter, down 22.89 percent or $ 14.40 million, when compared with the last year period. The company has spent $71.60 million cash to meet investing activities during the quarter as against cash outgo of $4.40 million in the last year period. It has incurred capital expenditure of $10.80 million on net basis during the quarter, up 145.45 percent or $6.40 million from year ago period.
Cash flow from financing activities was $34.60 million for the quarter as against cash outgo of $30.90 million in the last year period. It has made net debt repayment of $39.70 million.
Cash and cash equivalents stood at $83.90 million as on Mar. 31, 2015, up 25.31 percent or $16.95 million from $66.95 million on Mar. 31, 2014.
Working capital increases
Forum Energy Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $640.10 million as at Mar. 31, 2015, up 5.22 percent or $31.73 million from $608.37 million on Mar. 31, 2014. Current ratio was at 3.19 as on Mar. 31, 2015, down from 3.44 on Mar. 31, 2014.
Days sales outstanding went up to 70 days for the quarter compared with 59 days for the same period last year.
Debt comes down marginally
Forum Energy Technologies, Inc. has recorded a decline in total debt over the last one year. It stood at $468.60 million as on Mar. 31, 2015, down 1.89 percent or $9 million from $477.60 million on Mar. 31, 2014. Total debt was 20.65 percent of total assets as on Mar. 31, 2015, compared with 21.60 percent on Mar. 31, 2014. Debt to equity ratio was at 0.34 as on Mar. 31, 2015, down from 0.35 as on Mar. 31, 2014. Interest coverage ratio deteriorated to 5.29 for the quarter from 7.87 for the same period last year.
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