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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Forum Energy Technologies Inc | NYSE:FET | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.88 | -4.54% | 18.51 | 19.91 | 18.01 | 18.99 | 26,046 | 01:00:00 |
þ
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the Quarterly Period Ended September 30, 2017
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
61-1488595
|
(State or other jurisdiction of
|
|
(I.R.S. Employer Identification No.)
|
incorporation or organization)
|
|
|
Large accelerated filer
þ
|
|
Accelerated filer
o
|
Non-accelerated filer
o
|
|
(Do not check if a smaller reporting company)
|
|
|
Smaller reporting company
o
|
|
|
Emerging growth company
o
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in thousands, except per share information)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales
|
$
|
198,709
|
|
|
$
|
138,268
|
|
|
$
|
570,920
|
|
|
$
|
440,432
|
|
Cost of sales
|
151,150
|
|
|
108,984
|
|
|
435,127
|
|
|
371,310
|
|
||||
Gross profit
|
47,559
|
|
|
29,284
|
|
|
135,793
|
|
|
69,122
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
63,191
|
|
|
53,362
|
|
|
185,760
|
|
|
171,638
|
|
||||
Transaction expenses
|
882
|
|
|
341
|
|
|
1,755
|
|
|
571
|
|
||||
Goodwill and intangible asset impairment
|
638
|
|
|
—
|
|
|
68,642
|
|
|
—
|
|
||||
Loss on sale of assets and other
|
128
|
|
|
2,217
|
|
|
1,517
|
|
|
2,233
|
|
||||
Total operating expenses
|
64,839
|
|
|
55,920
|
|
|
257,674
|
|
|
174,442
|
|
||||
Earnings from equity investment
|
3,361
|
|
|
414
|
|
|
7,391
|
|
|
1,207
|
|
||||
Operating loss
|
(13,919
|
)
|
|
(26,222
|
)
|
|
(114,490
|
)
|
|
(104,113
|
)
|
||||
Other expense (income)
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
6,366
|
|
|
6,746
|
|
|
19,331
|
|
|
20,664
|
|
||||
Deferred financing costs written off
|
—
|
|
|
—
|
|
|
—
|
|
|
2,588
|
|
||||
Foreign exchange losses (gains) and other, net
|
2,360
|
|
|
(3,152
|
)
|
|
6,508
|
|
|
(14,546
|
)
|
||||
Total other expense
|
8,726
|
|
|
3,594
|
|
|
25,839
|
|
|
8,706
|
|
||||
Loss before income taxes
|
(22,645
|
)
|
|
(29,816
|
)
|
|
(140,329
|
)
|
|
(112,819
|
)
|
||||
Income tax benefit
|
(7,817
|
)
|
|
(11,821
|
)
|
|
(31,860
|
)
|
|
(43,374
|
)
|
||||
Net loss
|
(14,828
|
)
|
|
(17,995
|
)
|
|
(108,469
|
)
|
|
(69,445
|
)
|
||||
Less: Income (loss) attributable to noncontrolling interest
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
24
|
|
||||
Net loss attributable to common stockholders
|
(14,828
|
)
|
|
(17,989
|
)
|
|
(108,469
|
)
|
|
(69,469
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
96,275
|
|
|
90,860
|
|
|
96,103
|
|
|
90,682
|
|
||||
Diluted
|
96,275
|
|
|
90,860
|
|
|
96,103
|
|
|
90,682
|
|
||||
Loss per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.15
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(1.13
|
)
|
|
$
|
(0.77
|
)
|
Diluted
|
$
|
(0.15
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(1.13
|
)
|
|
$
|
(0.77
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Net loss
|
(14,828
|
)
|
|
(17,995
|
)
|
|
(108,469
|
)
|
|
(69,445
|
)
|
||||
Change in foreign currency translation, net of tax of $0
|
11,547
|
|
|
(6,243
|
)
|
|
34,094
|
|
|
(25,618
|
)
|
||||
Loss on pension liability
|
(36
|
)
|
|
(14
|
)
|
|
(133
|
)
|
|
(33
|
)
|
||||
Comprehensive loss
|
(3,317
|
)
|
|
(24,252
|
)
|
|
(74,508
|
)
|
|
(95,096
|
)
|
||||
Less: comprehensive income attributable to noncontrolling interests
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(156
|
)
|
||||
Comprehensive loss attributable to common stockholders
|
$
|
(3,317
|
)
|
|
$
|
(24,279
|
)
|
|
$
|
(74,508
|
)
|
|
$
|
(95,252
|
)
|
(in thousands, except share information)
|
September 30,
2017 |
|
December 31,
2016 |
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
156,392
|
|
|
$
|
234,422
|
|
Accounts receivable—trade, net
|
154,376
|
|
|
105,268
|
|
||
Inventories, net
|
394,103
|
|
|
338,583
|
|
||
Income tax receivable
|
1,872
|
|
|
32,801
|
|
||
Prepaid expenses and other current assets
|
27,705
|
|
|
29,443
|
|
||
Costs and estimated profits in excess of billings
|
9,395
|
|
|
9,199
|
|
||
Total current assets
|
743,843
|
|
|
749,716
|
|
||
Property and equipment, net of accumulated depreciation
|
149,016
|
|
|
152,212
|
|
||
Deferred financing costs, net
|
657
|
|
|
1,112
|
|
||
Intangible assets
|
224,565
|
|
|
216,418
|
|
||
Goodwill
|
619,632
|
|
|
652,743
|
|
||
Investment in unconsolidated subsidiary
|
64,499
|
|
|
59,140
|
|
||
Deferred income taxes, net
|
9,719
|
|
|
851
|
|
||
Other long-term assets
|
2,924
|
|
|
3,000
|
|
||
Total assets
|
$
|
1,814,855
|
|
|
$
|
1,835,192
|
|
Liabilities and equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current portion of long-term debt
|
$
|
1,133
|
|
|
$
|
124
|
|
Accounts payable—trade
|
123,148
|
|
|
73,775
|
|
||
Accrued liabilities
|
64,718
|
|
|
55,604
|
|
||
Deferred revenue
|
8,506
|
|
|
8,338
|
|
||
Billings in excess of costs and profits recognized
|
1,530
|
|
|
4,004
|
|
||
Total current liabilities
|
199,035
|
|
|
141,845
|
|
||
Long-term debt, net of current portion
|
398,145
|
|
|
396,747
|
|
||
Deferred income taxes, net
|
4,175
|
|
|
26,185
|
|
||
Other long-term liabilities
|
34,858
|
|
|
34,654
|
|
||
Total liabilities
|
636,213
|
|
|
599,431
|
|
||
Commitments and contingencies
|
|
|
|
|
|||
Equity
|
|
|
|
||||
Common stock, $0.01 par value, 296,000,000 shares authorized, 104,789,172 and 103,682,128 shares issued
|
1,048
|
|
|
1,037
|
|
||
Additional paid-in capital
|
1,016,458
|
|
|
998,169
|
|
||
Treasury stock at cost, 8,190,362 and 8,174,963 shares
|
(134,293
|
)
|
|
(133,941
|
)
|
||
Retained earnings
|
389,705
|
|
|
498,174
|
|
||
Accumulated other comprehensive loss
|
(94,276
|
)
|
|
(128,237
|
)
|
||
Total stockholders’ equity
|
1,178,642
|
|
|
1,235,202
|
|
||
Noncontrolling interest in subsidiary
|
—
|
|
|
559
|
|
||
Total equity
|
1,178,642
|
|
|
1,235,761
|
|
||
Total liabilities and equity
|
$
|
1,814,855
|
|
|
$
|
1,835,192
|
|
|
Nine Months Ended September 30,
|
||||||
(in thousands, except share information)
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net loss
|
$
|
(108,469
|
)
|
|
$
|
(69,445
|
)
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
|
|
|
|
||||
Depreciation expense
|
25,212
|
|
|
27,141
|
|
||
Amortization of intangible assets
|
20,030
|
|
|
19,709
|
|
||
Goodwill and intangible asset impairment
|
68,642
|
|
|
—
|
|
||
Share-based compensation expense
|
15,219
|
|
|
15,521
|
|
||
Inventory write down
|
1,376
|
|
|
24,479
|
|
||
Deferred income taxes
|
(31,041
|
)
|
|
(12,988
|
)
|
||
Deferred loan cost written off
|
—
|
|
|
2,588
|
|
||
Earnings from unconsolidated subsidiary, net of distributions
|
(4,317
|
)
|
|
(804
|
)
|
||
Other
|
4,548
|
|
|
4,137
|
|
||
Changes in operating assets and liabilities
|
|
|
|
||||
Accounts receivable—trade
|
(43,167
|
)
|
|
35,673
|
|
||
Inventories
|
(44,288
|
)
|
|
44,538
|
|
||
Prepaid expenses and other current assets
|
1,684
|
|
|
7,113
|
|
||
Income tax receivable
|
30,929
|
|
|
(32,801
|
)
|
||
Accounts payable, deferred revenue and other accrued liabilities
|
49,126
|
|
|
(15,130
|
)
|
||
Costs and estimated profits in excess of billings, net
|
(2,567
|
)
|
|
(5,511
|
)
|
||
Net cash provided by (used in) operating activities
|
$
|
(17,083
|
)
|
|
$
|
44,220
|
|
Cash flows from investing activities
|
|
|
|
||||
Acquisition of businesses, net of cash acquired
|
(47,890
|
)
|
|
(2,700
|
)
|
||
Capital expenditures for property and equipment
|
(19,656
|
)
|
|
(13,438
|
)
|
||
Proceeds from sale of business, property and equipment
|
1,849
|
|
|
3,710
|
|
||
Investment in unconsolidated subsidiary
|
$
|
(1,041
|
)
|
|
$
|
—
|
|
Net cash used in investing activities
|
$
|
(66,738
|
)
|
|
$
|
(12,428
|
)
|
Cash flows from financing activities
|
|
|
|
||||
Repayment of debt
|
(1,140
|
)
|
|
(254
|
)
|
||
Cash paid for net treasury shares withheld
|
(4,667
|
)
|
|
(1,273
|
)
|
||
Proceeds from stock issuance
|
2,896
|
|
|
2,742
|
|
||
Deferred financing costs
|
—
|
|
|
(513
|
)
|
||
Net cash provided by (used in) financing activities
|
$
|
(2,911
|
)
|
|
$
|
702
|
|
Effect of exchange rate changes on cash
|
8,702
|
|
|
(9,209
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
(78,030
|
)
|
|
23,285
|
|
||
Cash and cash equivalents
|
|
|
|
||||
Beginning of period
|
234,422
|
|
|
109,249
|
|
||
End of period
|
$
|
156,392
|
|
|
$
|
132,534
|
|
Noncash investing activities
|
|
|
|
||||
Acquisition via issuance of stock
|
$
|
4,500
|
|
|
$
|
—
|
|
|
|
|
|
•
|
The Company has put in place an implementation team to provide training and to review contracts subject to the new revenue standard.
|
•
|
The implementation team continues to review contracts for the areas identified during the initial impact assessment and monitor the potential impact on the Company’s financial statements and related disclosures.
|
•
|
The implementation team is putting new processes and controls in place in anticipation of the new guidance.
|
•
|
The implementation team is providing internal training and awareness related to the revised guidance to key stakeholders throughout our organization.
|
|
2017 Acquisitions
|
||
Current assets, net of cash acquired
|
$
|
3,767
|
|
Property and equipment
|
96
|
|
|
Intangible assets (primarily developed technologies and customer relationships)
|
17,211
|
|
|
Tax-deductible goodwill
|
16,711
|
|
|
Non-tax deductible goodwill
|
2,623
|
|
|
Current liabilities
|
(1,014
|
)
|
|
Long-term liabilities
|
—
|
|
|
Net assets acquired
|
$
|
39,394
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Raw materials and parts
|
$
|
119,572
|
|
|
$
|
106,329
|
|
Work in process
|
45,580
|
|
|
23,303
|
|
||
Finished goods
|
290,657
|
|
|
277,303
|
|
||
Gross inventories
|
455,809
|
|
|
406,935
|
|
||
Inventory reserve
|
(61,706
|
)
|
|
(68,352
|
)
|
||
Inventories
|
$
|
394,103
|
|
|
$
|
338,583
|
|
|
Drilling & Subsea
|
|
Completions
|
|
Production & Infrastructure
|
|
Total
|
||||||||
Goodwill Balance at December 31, 2016
|
$
|
307,806
|
|
|
$
|
327,293
|
|
|
$
|
17,644
|
|
|
$
|
652,743
|
|
Acquisitions, net of dispositions
|
—
|
|
|
19,334
|
|
|
1,311
|
|
|
20,645
|
|
||||
Impairment
|
(68,004
|
)
|
|
—
|
|
|
—
|
|
|
(68,004
|
)
|
||||
Impact of non-U.S. local currency translation
|
10,288
|
|
|
3,710
|
|
|
250
|
|
|
14,248
|
|
||||
Goodwill Balance at September 30, 2017
|
$
|
250,090
|
|
|
$
|
350,337
|
|
|
$
|
19,205
|
|
|
$
|
619,632
|
|
|
September 30, 2017
|
||||||||||||
|
Gross carrying
amount
|
|
Accumulated
amortization
|
|
Net amortizable
intangibles
|
|
Amortization
period (in years)
|
||||||
Customer relationships
|
$
|
280,116
|
|
|
$
|
(131,030
|
)
|
|
$
|
149,086
|
|
|
4-15
|
Patents and technology
|
52,260
|
|
|
(14,797
|
)
|
|
37,463
|
|
|
5-17
|
|||
Non-compete agreements
|
6,621
|
|
|
(5,950
|
)
|
|
671
|
|
|
3-6
|
|||
Trade names
|
46,813
|
|
|
(20,836
|
)
|
|
25,977
|
|
|
10-15
|
|||
Distributor relationships
|
22,160
|
|
|
(16,022
|
)
|
|
6,138
|
|
|
8-15
|
|||
Trademark
|
5,230
|
|
|
—
|
|
|
5,230
|
|
|
Indefinite
|
|||
Intangible Assets Total
|
$
|
413,200
|
|
|
$
|
(188,635
|
)
|
|
$
|
224,565
|
|
|
|
|
December 31, 2016
|
||||||||||||
|
Gross carrying
amount
|
|
Accumulated
amortization
|
|
Net amortizable
intangibles
|
|
Amortization
period (in years)
|
||||||
Customer relationships
|
$
|
270,586
|
|
|
$
|
(115,381
|
)
|
|
$
|
155,205
|
|
|
4-15
|
Patents and technology
|
33,936
|
|
|
(12,225
|
)
|
|
21,711
|
|
|
5-17
|
|||
Non-compete agreements
|
6,230
|
|
|
(5,594
|
)
|
|
636
|
|
|
3-6
|
|||
Trade names
|
44,494
|
|
|
(17,944
|
)
|
|
26,550
|
|
|
10-15
|
|||
Distributor relationships
|
22,160
|
|
|
(15,074
|
)
|
|
7,086
|
|
|
8-15
|
|||
Trademark
|
5,230
|
|
|
—
|
|
|
5,230
|
|
|
Indefinite
|
|||
Intangible Assets Total
|
$
|
382,636
|
|
|
$
|
(166,218
|
)
|
|
$
|
216,418
|
|
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
6.25% Senior Notes due October 2021
|
$
|
400,000
|
|
|
$
|
400,000
|
|
Unamortized debt premium
|
1,684
|
|
|
1,989
|
|
||
Debt issuance cost
|
(4,497
|
)
|
|
(5,324
|
)
|
||
Senior secured revolving credit facility
|
—
|
|
|
—
|
|
||
Other debt
|
2,091
|
|
|
206
|
|
||
Total debt
|
399,278
|
|
|
396,871
|
|
||
Less: current maturities
|
(1,133
|
)
|
|
(124
|
)
|
||
Long-term debt
|
$
|
398,145
|
|
|
$
|
396,747
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Drilling & Subsea
|
$
|
54,700
|
|
|
$
|
50,565
|
|
|
$
|
180,607
|
|
|
$
|
170,120
|
|
Completions
|
60,037
|
|
|
34,393
|
|
|
156,938
|
|
|
95,920
|
|
||||
Production & Infrastructure
|
84,979
|
|
|
54,030
|
|
|
235,676
|
|
|
176,364
|
|
||||
Intersegment eliminations
|
(1,007
|
)
|
|
(720
|
)
|
|
(2,301
|
)
|
|
(1,972
|
)
|
||||
Total Revenue
|
$
|
198,709
|
|
|
$
|
138,268
|
|
|
$
|
570,920
|
|
|
$
|
440,432
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
Drilling & Subsea
|
$
|
(8,872
|
)
|
|
$
|
(10,869
|
)
|
|
$
|
(23,580
|
)
|
|
$
|
(41,545
|
)
|
Completions
|
1,614
|
|
|
(5,676
|
)
|
|
(1,223
|
)
|
|
(39,838
|
)
|
||||
Production & Infrastructure
|
4,258
|
|
|
(713
|
)
|
|
7,124
|
|
|
494
|
|
||||
Corporate
|
(9,271
|
)
|
|
(6,406
|
)
|
|
(24,897
|
)
|
|
(20,420
|
)
|
||||
Total segment operating loss
|
(12,271
|
)
|
|
(23,664
|
)
|
|
(42,576
|
)
|
|
(101,309
|
)
|
||||
Transaction expenses
|
882
|
|
|
341
|
|
|
1,755
|
|
|
571
|
|
||||
Goodwill and intangible asset impairment
|
638
|
|
|
—
|
|
|
68,642
|
|
|
—
|
|
||||
Loss on sale of assets and other
|
128
|
|
|
2,217
|
|
|
1,517
|
|
|
2,233
|
|
||||
Operating loss
|
$
|
(13,919
|
)
|
|
$
|
(26,222
|
)
|
|
$
|
(114,490
|
)
|
|
$
|
(104,113
|
)
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Assets
|
|
|
|
|
||||
Drilling & Subsea
|
|
$
|
650,136
|
|
|
$
|
766,234
|
|
Completions
|
|
768,998
|
|
|
696,208
|
|
||
Production & Infrastructure
|
|
241,433
|
|
|
175,940
|
|
||
Corporate
|
|
154,288
|
|
|
196,810
|
|
||
Total assets
|
|
$
|
1,814,855
|
|
|
$
|
1,835,192
|
|
|
Three months ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net loss attributable to common stockholders
|
$
|
(14,828
|
)
|
|
$
|
(17,989
|
)
|
|
$
|
(108,469
|
)
|
|
$
|
(69,469
|
)
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding (basic)
|
96,275
|
|
|
90,860
|
|
|
96,103
|
|
|
90,682
|
|
||||
Common stock equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Diluted shares
|
96,275
|
|
|
90,860
|
|
|
96,103
|
|
|
90,682
|
|
||||
Loss per share
|
|
|
|
|
|
|
|
||||||||
Basic loss per share
|
$
|
(0.15
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(1.13
|
)
|
|
$
|
(0.77
|
)
|
Diluted loss per share
|
$
|
(0.15
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(1.13
|
)
|
|
$
|
(0.77
|
)
|
Condensed consolidating statements of comprehensive income (loss)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three months ended September 30, 2017
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
171,031
|
|
|
$
|
43,121
|
|
|
$
|
(15,443
|
)
|
|
$
|
198,709
|
|
Cost of sales
|
|
—
|
|
|
133,503
|
|
|
32,877
|
|
|
(15,230
|
)
|
|
151,150
|
|
|||||
Gross profit
|
|
—
|
|
|
37,528
|
|
|
10,244
|
|
|
(213
|
)
|
|
47,559
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
—
|
|
|
51,127
|
|
|
12,064
|
|
|
—
|
|
|
63,191
|
|
|||||
Transaction expenses
|
|
—
|
|
|
882
|
|
|
—
|
|
|
—
|
|
|
882
|
|
|||||
Goodwill and intangible asset impairment
|
|
—
|
|
|
638
|
|
|
—
|
|
|
—
|
|
|
638
|
|
|||||
Loss on sale of assets and other
|
|
—
|
|
|
91
|
|
|
37
|
|
|
—
|
|
|
128
|
|
|||||
Total operating expenses
|
|
—
|
|
|
52,738
|
|
|
12,101
|
|
|
—
|
|
|
64,839
|
|
|||||
Earnings from equity investment
|
|
—
|
|
|
3,361
|
|
|
—
|
|
|
—
|
|
|
3,361
|
|
|||||
Equity earnings from affiliate, net of tax
|
|
(10,467
|
)
|
|
(3,959
|
)
|
|
—
|
|
|
14,426
|
|
|
—
|
|
|||||
Operating income (loss)
|
|
(10,467
|
)
|
|
(15,808
|
)
|
|
(1,857
|
)
|
|
14,213
|
|
|
(13,919
|
)
|
|||||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income)
|
|
6,710
|
|
|
(188
|
)
|
|
(156
|
)
|
|
—
|
|
|
6,366
|
|
|||||
Deferred loan costs written off
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Foreign exchange (gains) losses and other, net
|
|
—
|
|
|
(110
|
)
|
|
2,470
|
|
|
—
|
|
|
2,360
|
|
|||||
Total other expense (income)
|
|
6,710
|
|
|
(298
|
)
|
|
2,314
|
|
|
—
|
|
|
8,726
|
|
|||||
Income (loss) before income taxes
|
|
(17,177
|
)
|
|
(15,510
|
)
|
|
(4,171
|
)
|
|
14,213
|
|
|
(22,645
|
)
|
|||||
Benefit for income tax expense
|
|
(2,349
|
)
|
|
(5,043
|
)
|
|
(425
|
)
|
|
—
|
|
|
(7,817
|
)
|
|||||
Net income (loss)
|
|
(14,828
|
)
|
|
(10,467
|
)
|
|
(3,746
|
)
|
|
14,213
|
|
|
(14,828
|
)
|
|||||
Less: Income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) attributable to common stockholders
|
|
(14,828
|
)
|
|
(10,467
|
)
|
|
(3,746
|
)
|
|
14,213
|
|
|
(14,828
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
|
(14,828
|
)
|
|
(10,467
|
)
|
|
(3,746
|
)
|
|
14,213
|
|
|
(14,828
|
)
|
|||||
Change in foreign currency translation, net of tax of $0
|
|
11,547
|
|
|
11,547
|
|
|
11,547
|
|
|
(23,094
|
)
|
|
11,547
|
|
|||||
Change in pension liability
|
|
(36
|
)
|
|
(36
|
)
|
|
(36
|
)
|
|
72
|
|
|
(36
|
)
|
|||||
Comprehensive income (loss)
|
|
(3,317
|
)
|
|
1,044
|
|
|
7,765
|
|
|
(8,809
|
)
|
|
(3,317
|
)
|
|||||
Less: comprehensive (income) loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
|
$
|
(3,317
|
)
|
|
$
|
1,044
|
|
|
$
|
7,765
|
|
|
$
|
(8,809
|
)
|
|
$
|
(3,317
|
)
|
Condensed consolidating statements of comprehensive income (loss)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three months ended September 30, 2016
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
101,357
|
|
|
$
|
44,869
|
|
|
$
|
(7,958
|
)
|
|
$
|
138,268
|
|
Cost of sales
|
|
—
|
|
|
81,250
|
|
|
36,767
|
|
|
(9,033
|
)
|
|
108,984
|
|
|||||
Gross profit
|
|
—
|
|
|
20,107
|
|
|
8,102
|
|
|
1,075
|
|
|
29,284
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
—
|
|
|
42,569
|
|
|
10,793
|
|
|
—
|
|
|
53,362
|
|
|||||
Transaction Expense
|
|
—
|
|
|
306
|
|
|
35
|
|
|
—
|
|
|
341
|
|
|||||
Loss (gain) on sale of assets and other
|
|
—
|
|
|
2,130
|
|
|
87
|
|
|
—
|
|
|
2,217
|
|
|||||
Total operating expenses
|
|
—
|
|
|
45,005
|
|
|
10,915
|
|
|
—
|
|
|
55,920
|
|
|||||
Earnings from equity investment
|
|
—
|
|
|
414
|
|
|
—
|
|
|
—
|
|
|
414
|
|
|||||
Equity earnings from affiliates, net of tax
|
|
(13,579
|
)
|
|
1,620
|
|
|
—
|
|
|
11,959
|
|
|
—
|
|
|||||
Operating income (loss)
|
|
(13,579
|
)
|
|
(22,864
|
)
|
|
(2,813
|
)
|
|
13,034
|
|
|
(26,222
|
)
|
|||||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income)
|
|
6,785
|
|
|
(84
|
)
|
|
45
|
|
|
—
|
|
|
6,746
|
|
|||||
Foreign exchange gains and other, net
|
|
—
|
|
|
(19
|
)
|
|
(3,133
|
)
|
|
—
|
|
|
(3,152
|
)
|
|||||
Total other expense (income)
|
|
6,785
|
|
|
(103
|
)
|
|
(3,088
|
)
|
|
—
|
|
|
3,594
|
|
|||||
Income before income taxes
|
|
(20,364
|
)
|
|
(22,761
|
)
|
|
275
|
|
|
13,034
|
|
|
(29,816
|
)
|
|||||
Provision for income tax expense (benefit)
|
|
(2,375
|
)
|
|
(9,182
|
)
|
|
(264
|
)
|
|
—
|
|
|
(11,821
|
)
|
|||||
Net income (loss)
|
|
(17,989
|
)
|
|
(13,579
|
)
|
|
539
|
|
|
13,034
|
|
|
(17,995
|
)
|
|||||
Less: Income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
|
(17,989
|
)
|
|
(13,579
|
)
|
|
545
|
|
|
13,034
|
|
|
(17,989
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
|
(17,989
|
)
|
|
(13,579
|
)
|
|
539
|
|
|
13,034
|
|
|
(17,995
|
)
|
|||||
Change in foreign currency translation, net of tax of $0
|
|
(6,243
|
)
|
|
(6,243
|
)
|
|
(6,243
|
)
|
|
12,486
|
|
|
(6,243
|
)
|
|||||
Change in pension liability
|
|
(14
|
)
|
|
(14
|
)
|
|
(14
|
)
|
|
28
|
|
|
(14
|
)
|
|||||
Comprehensive income (loss)
|
|
(24,246
|
)
|
|
(19,836
|
)
|
|
(5,718
|
)
|
|
25,548
|
|
|
(24,252
|
)
|
|||||
Less: comprehensive (income) loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(27
|
)
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
|
$
|
(24,246
|
)
|
|
$
|
(19,836
|
)
|
|
$
|
(5,745
|
)
|
|
$
|
25,548
|
|
|
$
|
(24,279
|
)
|
Condensed consolidating statements of comprehensive income (loss)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine months ended September 30, 2017
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Revenue
|
|
$
|
—
|
|
|
$
|
486,683
|
|
|
$
|
133,798
|
|
|
$
|
(49,561
|
)
|
|
$
|
570,920
|
|
Cost of sales
|
|
—
|
|
|
375,990
|
|
|
108,390
|
|
|
(49,253
|
)
|
|
435,127
|
|
|||||
Gross profit
|
|
—
|
|
|
110,693
|
|
|
25,408
|
|
|
(308
|
)
|
|
135,793
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
—
|
|
|
149,030
|
|
|
36,730
|
|
|
—
|
|
|
185,760
|
|
|||||
Transaction expenses
|
|
—
|
|
|
1,644
|
|
|
111
|
|
|
—
|
|
|
1,755
|
|
|||||
Goodwill and intangible asset impairment
|
|
—
|
|
|
32,881
|
|
|
35,761
|
|
|
—
|
|
|
68,642
|
|
|||||
Loss on sale of assets and other
|
|
—
|
|
|
1,433
|
|
|
84
|
|
|
—
|
|
|
1,517
|
|
|||||
Total operating expenses
|
|
—
|
|
|
184,988
|
|
|
72,686
|
|
|
—
|
|
|
257,674
|
|
|||||
Earnings from equity investment
|
|
—
|
|
|
7,391
|
|
|
—
|
|
|
—
|
|
|
7,391
|
|
|||||
Equity earnings from affiliates, net of tax
|
|
(95,415
|
)
|
|
(48,535
|
)
|
|
—
|
|
|
143,950
|
|
|
—
|
|
|||||
Operating income (loss)
|
|
(95,415
|
)
|
|
(115,439
|
)
|
|
(47,278
|
)
|
|
143,642
|
|
|
(114,490
|
)
|
|||||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income)
|
|
20,083
|
|
|
(374
|
)
|
|
(378
|
)
|
|
—
|
|
|
19,331
|
|
|||||
Foreign exchange (gains) losses and other, net
|
|
—
|
|
|
(297
|
)
|
|
6,805
|
|
|
—
|
|
|
6,508
|
|
|||||
Total other expense (income)
|
|
20,083
|
|
|
(671
|
)
|
|
6,427
|
|
|
—
|
|
|
25,839
|
|
|||||
Income (loss) before income taxes
|
|
(115,498
|
)
|
|
(114,768
|
)
|
|
(53,705
|
)
|
|
143,642
|
|
|
(140,329
|
)
|
|||||
Provision (benefit) for income tax expense
|
|
(7,029
|
)
|
|
(19,353
|
)
|
|
(5,478
|
)
|
|
—
|
|
|
(31,860
|
)
|
|||||
Net income (loss)
|
|
(108,469
|
)
|
|
(95,415
|
)
|
|
(48,227
|
)
|
|
143,642
|
|
|
(108,469
|
)
|
|||||
Less: Income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) attributable to common stockholders
|
|
(108,469
|
)
|
|
(95,415
|
)
|
|
(48,227
|
)
|
|
143,642
|
|
|
(108,469
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
|
(108,469
|
)
|
|
(95,415
|
)
|
|
(48,227
|
)
|
|
143,642
|
|
|
(108,469
|
)
|
|||||
Change in foreign currency translation, net of tax of $0
|
|
34,094
|
|
|
34,094
|
|
|
34,094
|
|
|
(68,188
|
)
|
|
34,094
|
|
|||||
Change in pension liability
|
|
(133
|
)
|
|
(133
|
)
|
|
(133
|
)
|
|
266
|
|
|
(133
|
)
|
|||||
Comprehensive income (loss)
|
|
(74,508
|
)
|
|
(61,454
|
)
|
|
(14,266
|
)
|
|
75,720
|
|
|
(74,508
|
)
|
|||||
Less: comprehensive (income) loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
|
$
|
(74,508
|
)
|
|
$
|
(61,454
|
)
|
|
$
|
(14,266
|
)
|
|
$
|
75,720
|
|
|
$
|
(74,508
|
)
|
Condensed consolidating statements of comprehensive income (loss)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Revenue
|
|
$
|
—
|
|
|
$
|
321,734
|
|
|
$
|
151,383
|
|
|
$
|
(32,685
|
)
|
|
$
|
440,432
|
|
Cost of sales
|
|
—
|
|
|
281,666
|
|
|
123,631
|
|
|
(33,987
|
)
|
|
371,310
|
|
|||||
Gross profit
|
|
—
|
|
|
40,068
|
|
|
27,752
|
|
|
1,302
|
|
|
69,122
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
—
|
|
|
137,099
|
|
|
34,539
|
|
|
—
|
|
|
171,638
|
|
|||||
Transaction expenses
|
|
—
|
|
|
536
|
|
|
35
|
|
|
—
|
|
|
571
|
|
|||||
Loss (gain) on sale of assets and other
|
|
—
|
|
|
2,310
|
|
|
(77
|
)
|
|
—
|
|
|
2,233
|
|
|||||
Total operating expenses
|
|
—
|
|
|
139,945
|
|
|
34,497
|
|
|
—
|
|
|
174,442
|
|
|||||
Earnings from equity investment
|
|
—
|
|
|
1,207
|
|
|
—
|
|
|
—
|
|
|
1,207
|
|
|||||
Equity earnings from affiliates, net of tax
|
|
(54,323
|
)
|
|
7,765
|
|
|
—
|
|
|
46,558
|
|
|
—
|
|
|||||
Operating income (loss)
|
|
(54,323
|
)
|
|
(90,905
|
)
|
|
(6,745
|
)
|
|
47,860
|
|
|
(104,113
|
)
|
|||||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income)
|
|
20,713
|
|
|
(97
|
)
|
|
48
|
|
|
—
|
|
|
20,664
|
|
|||||
Deferred loan costs written off
|
|
2,588
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,588
|
|
|||||
Foreign exchange gains and other, net
|
|
—
|
|
|
(553
|
)
|
|
(13,993
|
)
|
|
—
|
|
|
(14,546
|
)
|
|||||
Total other expense (income)
|
|
23,301
|
|
|
(650
|
)
|
|
(13,945
|
)
|
|
—
|
|
|
8,706
|
|
|||||
Income (loss) before income taxes
|
|
(77,624
|
)
|
|
(90,255
|
)
|
|
7,200
|
|
|
47,860
|
|
|
(112,819
|
)
|
|||||
Provision (benefit) for income tax expense
|
|
(8,155
|
)
|
|
(35,932
|
)
|
|
713
|
|
|
—
|
|
|
(43,374
|
)
|
|||||
Net income (loss)
|
|
(69,469
|
)
|
|
(54,323
|
)
|
|
6,487
|
|
|
47,860
|
|
|
(69,445
|
)
|
|||||
Less: Income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||
Net income (loss) attributable to common stockholders
|
|
(69,469
|
)
|
|
(54,323
|
)
|
|
6,463
|
|
|
47,860
|
|
|
(69,469
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
|
(69,469
|
)
|
|
(54,323
|
)
|
|
6,487
|
|
|
47,860
|
|
|
(69,445
|
)
|
|||||
Change in foreign currency translation, net of tax of $0
|
|
(25,618
|
)
|
|
(25,618
|
)
|
|
(25,618
|
)
|
|
51,236
|
|
|
(25,618
|
)
|
|||||
Change in pension liability
|
|
(33
|
)
|
|
(33
|
)
|
|
(33
|
)
|
|
66
|
|
|
(33
|
)
|
|||||
Comprehensive income (loss)
|
|
(95,120
|
)
|
|
(79,974
|
)
|
|
(19,164
|
)
|
|
99,162
|
|
|
(95,096
|
)
|
|||||
Less: comprehensive (income) loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(156
|
)
|
|
—
|
|
|
(156
|
)
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
|
$
|
(95,120
|
)
|
|
$
|
(79,974
|
)
|
|
$
|
(19,320
|
)
|
|
$
|
99,162
|
|
|
$
|
(95,252
|
)
|
Condensed consolidating balance sheets
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
September 30, 2017
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
413
|
|
|
$
|
86,552
|
|
|
$
|
69,427
|
|
|
$
|
—
|
|
|
$
|
156,392
|
|
Accounts receivable—trade, net
|
|
—
|
|
|
121,199
|
|
|
33,177
|
|
|
—
|
|
|
154,376
|
|
|||||
Inventories
|
|
—
|
|
|
324,444
|
|
|
78,407
|
|
|
(8,748
|
)
|
|
394,103
|
|
|||||
Income tax receivable
|
|
—
|
|
|
1,872
|
|
|
—
|
|
|
—
|
|
|
1,872
|
|
|||||
Cost and profits in excess of billings
|
|
—
|
|
|
8,515
|
|
|
880
|
|
|
—
|
|
|
9,395
|
|
|||||
Other current assets
|
|
—
|
|
|
16,251
|
|
|
11,454
|
|
|
—
|
|
|
27,705
|
|
|||||
Total current assets
|
|
413
|
|
|
558,833
|
|
|
193,345
|
|
|
(8,748
|
)
|
|
743,843
|
|
|||||
Property and equipment, net of accumulated depreciation
|
|
—
|
|
|
122,196
|
|
|
26,820
|
|
|
—
|
|
|
149,016
|
|
|||||
Deferred financing costs, net
|
|
657
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
657
|
|
|||||
Deferred income taxes, net
|
|
—
|
|
|
1,279
|
|
|
8,440
|
|
|
—
|
|
|
9,719
|
|
|||||
Intangibles
|
|
—
|
|
|
171,865
|
|
|
52,700
|
|
|
—
|
|
|
224,565
|
|
|||||
Goodwill
|
|
—
|
|
|
467,337
|
|
|
152,295
|
|
|
—
|
|
|
619,632
|
|
|||||
Investment in unconsolidated subsidiary
|
|
—
|
|
|
64,499
|
|
|
—
|
|
|
—
|
|
|
64,499
|
|
|||||
Investment in affiliates
|
|
1,020,649
|
|
|
443,255
|
|
|
—
|
|
|
(1,463,904
|
)
|
|
—
|
|
|||||
Long-term advances to affiliates
|
|
566,987
|
|
|
—
|
|
|
76,105
|
|
|
(643,092
|
)
|
|
—
|
|
|||||
Other long-term assets
|
|
—
|
|
|
2,260
|
|
|
664
|
|
|
—
|
|
|
2,924
|
|
|||||
Total assets
|
|
$
|
1,588,706
|
|
|
$
|
1,831,524
|
|
|
$
|
510,369
|
|
|
$
|
(2,115,744
|
)
|
|
$
|
1,814,855
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of long-term debt
|
|
$
|
—
|
|
|
$
|
1,023
|
|
|
$
|
110
|
|
|
$
|
—
|
|
|
$
|
1,133
|
|
Accounts payable—trade
|
|
—
|
|
|
104,244
|
|
|
18,904
|
|
|
—
|
|
|
123,148
|
|
|||||
Accrued liabilities
|
|
12,877
|
|
|
41,691
|
|
|
10,150
|
|
|
—
|
|
|
64,718
|
|
|||||
Deferred revenue
|
|
—
|
|
|
3,889
|
|
|
4,617
|
|
|
—
|
|
|
8,506
|
|
|||||
Billings in excess of costs and profits
|
|
—
|
|
|
1,018
|
|
|
512
|
|
|
—
|
|
|
1,530
|
|
|||||
Total current liabilities
|
|
12,877
|
|
|
151,865
|
|
|
34,293
|
|
|
—
|
|
|
199,035
|
|
|||||
Long-term debt, net of current portion
|
|
397,187
|
|
|
949
|
|
|
9
|
|
|
—
|
|
|
398,145
|
|
|||||
Long-term payables to affiliates
|
|
—
|
|
|
643,092
|
|
|
—
|
|
|
(643,092
|
)
|
|
—
|
|
|||||
Deferred income taxes, net
|
|
—
|
|
|
—
|
|
|
4,175
|
|
|
—
|
|
|
4,175
|
|
|||||
Other long-term liabilities
|
|
—
|
|
|
14,969
|
|
|
19,889
|
|
|
—
|
|
|
34,858
|
|
|||||
Total liabilities
|
|
410,064
|
|
|
810,875
|
|
|
58,366
|
|
|
(643,092
|
)
|
|
636,213
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholder's equity
|
|
1,178,642
|
|
|
1,020,649
|
|
|
452,003
|
|
|
(1,472,652
|
)
|
|
1,178,642
|
|
|||||
Noncontrolling interest in subsidiary
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Equity
|
|
1,178,642
|
|
|
1,020,649
|
|
|
452,003
|
|
|
(1,472,652
|
)
|
|
1,178,642
|
|
|||||
Total liabilities and equity
|
|
$
|
1,588,706
|
|
|
$
|
1,831,524
|
|
|
$
|
510,369
|
|
|
$
|
(2,115,744
|
)
|
|
$
|
1,814,855
|
|
Condensed consolidating balance sheets
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31, 2016
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
65
|
|
|
$
|
143,275
|
|
|
$
|
91,082
|
|
|
$
|
—
|
|
|
$
|
234,422
|
|
Accounts receivable—trade, net
|
|
—
|
|
|
77,229
|
|
|
28,039
|
|
|
—
|
|
|
105,268
|
|
|||||
Inventories
|
|
—
|
|
|
269,036
|
|
|
77,987
|
|
|
(8,440
|
)
|
|
338,583
|
|
|||||
Income tax receivable
|
|
—
|
|
|
32,801
|
|
|
—
|
|
|
—
|
|
|
32,801
|
|
|||||
Cost and profits in excess of billings
|
|
—
|
|
|
4,477
|
|
|
4,722
|
|
|
—
|
|
|
9,199
|
|
|||||
Other current assets
|
|
—
|
|
|
21,013
|
|
|
8,430
|
|
|
—
|
|
|
29,443
|
|
|||||
Total current assets
|
|
65
|
|
|
547,831
|
|
|
210,260
|
|
|
(8,440
|
)
|
|
749,716
|
|
|||||
Property and equipment, net of accumulated depreciation
|
|
—
|
|
|
127,094
|
|
|
25,118
|
|
|
—
|
|
|
152,212
|
|
|||||
Deferred financing costs, net
|
|
1,112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,112
|
|
|||||
Deferred income taxes, net
|
|
—
|
|
|
—
|
|
|
851
|
|
|
—
|
|
|
851
|
|
|||||
Intangibles
|
|
—
|
|
|
166,437
|
|
|
49,981
|
|
|
—
|
|
|
216,418
|
|
|||||
Goodwill
|
|
—
|
|
|
481,374
|
|
|
171,369
|
|
|
—
|
|
|
652,743
|
|
|||||
Investment in unconsolidated subsidiary
|
|
—
|
|
|
59,140
|
|
|
—
|
|
|
—
|
|
|
59,140
|
|
|||||
Investment in affiliates
|
|
1,080,337
|
|
|
460,166
|
|
|
—
|
|
|
(1,540,503
|
)
|
|
—
|
|
|||||
Long-term advances to affiliates
|
|
557,061
|
|
|
—
|
|
|
71,057
|
|
|
(628,118
|
)
|
|
—
|
|
|||||
Other long-term assets
|
|
—
|
|
|
2,322
|
|
|
678
|
|
|
—
|
|
|
3,000
|
|
|||||
Total assets
|
|
$
|
1,638,575
|
|
|
$
|
1,844,364
|
|
|
$
|
529,314
|
|
|
$
|
(2,177,061
|
)
|
|
$
|
1,835,192
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of long-term debt
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
101
|
|
|
$
|
—
|
|
|
$
|
124
|
|
Accounts payable—trade
|
|
—
|
|
|
59,261
|
|
|
14,514
|
|
|
—
|
|
|
73,775
|
|
|||||
Accrued liabilities
|
|
6,708
|
|
|
40,630
|
|
|
8,266
|
|
|
—
|
|
|
55,604
|
|
|||||
Deferred revenue
|
|
—
|
|
|
1,206
|
|
|
7,132
|
|
|
—
|
|
|
8,338
|
|
|||||
Billings in excess of costs and profits recognized
|
|
—
|
|
|
1,799
|
|
|
2,205
|
|
|
—
|
|
|
4,004
|
|
|||||
Total current liabilities
|
|
6,708
|
|
|
102,919
|
|
|
32,218
|
|
|
—
|
|
|
141,845
|
|
|||||
Long-term debt, net of current portion
|
|
396,665
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
396,747
|
|
|||||
Long-term payables to affiliates
|
|
—
|
|
|
628,118
|
|
|
—
|
|
|
(628,118
|
)
|
|
—
|
|
|||||
Deferred income taxes, net
|
|
—
|
|
|
17,650
|
|
|
8,535
|
|
|
—
|
|
|
26,185
|
|
|||||
Other long-term liabilities
|
|
—
|
|
|
15,340
|
|
|
19,314
|
|
|
—
|
|
|
34,654
|
|
|||||
Total liabilities
|
|
403,373
|
|
|
764,027
|
|
|
60,149
|
|
|
(628,118
|
)
|
|
599,431
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholder's equity
|
|
1,235,202
|
|
|
1,080,337
|
|
|
468,606
|
|
|
(1,548,943
|
)
|
|
1,235,202
|
|
|||||
Noncontrolling interest in subsidiary
|
|
—
|
|
|
—
|
|
|
559
|
|
|
—
|
|
|
559
|
|
|||||
Equity
|
|
1,235,202
|
|
|
1,080,337
|
|
|
469,165
|
|
|
(1,548,943
|
)
|
|
1,235,761
|
|
|||||
Total liabilities and equity
|
|
$
|
1,638,575
|
|
|
$
|
1,844,364
|
|
|
$
|
529,314
|
|
|
$
|
(2,177,061
|
)
|
|
$
|
1,835,192
|
|
Condensed consolidating statements of cash flows
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Nine months ended September 30, 2017
|
|||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
|||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|||||||||||
Cash flows from (used in) operating activities
|
|
$
|
(7,671
|
)
|
|
$
|
2,262
|
|
|
$
|
(11,674
|
)
|
|
$
|
—
|
|
|
$
|
(17,083
|
)
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Acquisition of businesses, net of cash acquired
|
|
—
|
|
|
(42,204
|
)
|
|
(5,686
|
)
|
|
—
|
|
|
(47,890
|
)
|
||||||
Capital expenditures for property and equipment
|
|
—
|
|
|
(14,625
|
)
|
|
(5,031
|
)
|
|
—
|
|
|
(19,656
|
)
|
||||||
Investment in unconsolidated subsidiary
|
|
—
|
|
|
(1,041
|
)
|
|
—
|
|
—
|
|
—
|
|
|
(1,041
|
)
|
|||||
Long-term loans and advances to affiliates
|
|
9,790
|
|
|
7,902
|
|
|
—
|
|
|
(17,692
|
)
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
1,849
|
|
|
—
|
|
|
—
|
|
|
1,849
|
|
||||||
Net cash provided by (used in) investing activities
|
|
$
|
9,790
|
|
|
$
|
(48,119
|
)
|
|
$
|
(10,717
|
)
|
|
$
|
(17,692
|
)
|
|
$
|
(66,738
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Repayment of long-term and short-term debt
|
|
—
|
|
|
(1,076
|
)
|
|
(64
|
)
|
|
—
|
|
|
(1,140
|
)
|
||||||
Long-term loans and advances to affiliates
|
|
—
|
|
|
(9,790
|
)
|
|
(7,902
|
)
|
|
17,692
|
|
|
—
|
|
||||||
Net treasury shares withheld
|
|
(4,667
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,667
|
)
|
||||||
Proceeds from stock issuance
|
|
2,896
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,896
|
|
||||||
Net cash provided by (used in) financing activities
|
|
$
|
(1,771
|
)
|
|
$
|
(10,866
|
)
|
|
$
|
(7,966
|
)
|
|
$
|
17,692
|
|
|
$
|
(2,911
|
)
|
|
Effect of exchange rate changes on cash
|
|
—
|
|
|
—
|
|
|
8,702
|
|
|
—
|
|
|
8,702
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
|
348
|
|
|
(56,723
|
)
|
|
(21,655
|
)
|
|
—
|
|
|
(78,030
|
)
|
||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Beginning of period
|
|
65
|
|
|
143,275
|
|
|
91,082
|
|
|
—
|
|
|
234,422
|
|
||||||
End of period
|
|
$
|
413
|
|
|
$
|
86,552
|
|
|
$
|
69,427
|
|
|
$
|
—
|
|
|
$
|
156,392
|
|
Condensed consolidating statements of cash flows
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Cash flows from (used in) operating activities
|
|
$
|
(6,940
|
)
|
|
$
|
20,042
|
|
|
$
|
51,118
|
|
|
$
|
(20,000
|
)
|
|
$
|
44,220
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition of businesses, net of cash acquired
|
|
—
|
|
|
(2,700
|
)
|
|
—
|
|
|
—
|
|
|
(2,700
|
)
|
|||||
Capital expenditures for property and equipment
|
|
—
|
|
|
(9,530
|
)
|
|
(3,908
|
)
|
|
—
|
|
|
(13,438
|
)
|
|||||
Long-term loans and advances to affiliates
|
|
6,049
|
|
|
3,148
|
|
|
—
|
|
|
(9,197
|
)
|
|
—
|
|
|||||
Other
|
|
—
|
|
|
3,389
|
|
|
321
|
|
|
—
|
|
|
3,710
|
|
|||||
Net cash provided by (used in) investing activities
|
|
$
|
6,049
|
|
|
$
|
(5,693
|
)
|
|
$
|
(3,587
|
)
|
|
$
|
(9,197
|
)
|
|
$
|
(12,428
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayment of long-term debt
|
|
—
|
|
|
(254
|
)
|
|
—
|
|
|
—
|
|
|
(254
|
)
|
|||||
Long-term loans and advances to affiliates
|
|
—
|
|
|
(6,049
|
)
|
|
(3,148
|
)
|
|
9,197
|
|
|
—
|
|
|||||
Dividend paid to affiliates
|
|
—
|
|
|
—
|
|
|
(20,000
|
)
|
|
20,000
|
|
|
—
|
|
|||||
Other
|
|
956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
956
|
|
|||||
Net cash provided by (used in) financing activities
|
|
$
|
956
|
|
|
$
|
(6,303
|
)
|
|
$
|
(23,148
|
)
|
|
$
|
29,197
|
|
|
$
|
702
|
|
Effect of exchange rate changes on cash
|
|
—
|
|
|
—
|
|
|
(9,209
|
)
|
|
—
|
|
|
(9,209
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
|
65
|
|
|
8,046
|
|
|
15,174
|
|
|
—
|
|
|
23,285
|
|
|||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning of period
|
|
—
|
|
|
36,884
|
|
|
72,365
|
|
|
—
|
|
|
109,249
|
|
|||||
End of period
|
|
$
|
65
|
|
|
$
|
44,930
|
|
|
$
|
87,539
|
|
|
$
|
—
|
|
|
$
|
132,534
|
|
•
|
Drilling & Subsea segment
. This segment designs and manufactures products and provides related services to the drilling, energy subsea construction and services markets, and other markets such as alternative energy, defense and communications. The products and related services consist primarily of: (i) capital equipment and a broad line of expendable drilling products consumed in the drilling process; and (ii) subsea remotely operated vehicles and trenchers, specialty components and tooling, products used in subsea pipeline infrastructure, and a broad suite of complementary subsea technical services and rental items.
|
•
|
Completions segment.
This segment designs, manufactures and supplies products and provides related services to the well construction, completion, stimulation and intervention markets. The products and related services consist primarily of: (i) well construction casing and cementing equipment, cable protectors used in completions, composite plugs used for zonal isolation in hydraulic fracturing and wireline flow-control products; and (ii) capital and consumable products sold to the pressure pumping, hydraulic fracturing and flowback services markets, including hydraulic fracturing pumps, pump consumables and flow iron as well as coiled tubing, wireline cable, and pressure control equipment used in the well completion and intervention service markets.
|
•
|
Production & Infrastructure segment
. This segment designs, manufactures and supplies products and provides related equipment and services for production and infrastructure markets. The products and related services consist primarily of: (i) engineered process systems, production equipment and related field services, as well as oil and produced water treatment equipment; and (ii) a wide range of industrial valves focused on serving upstream, midstream, and downstream oil and natural gas customers as well as power and other general industries.
|
|
|
Three months ended
|
||||||||||
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||
|
|
2017
|
|
2017
|
|
2016
|
||||||
Average global oil, $/bbl
|
|
|
|
|
|
|
||||||
West Texas Intermediate
|
|
$
|
48.18
|
|
|
$
|
48.10
|
|
|
$
|
44.85
|
|
United Kingdom Brent
|
|
$
|
52.10
|
|
|
$
|
49.55
|
|
|
$
|
45.80
|
|
|
|
|
|
|
|
|
||||||
Average North American Natural Gas, $/Mcf
|
|
|
|
|
|
|
||||||
Henry Hub
|
|
$
|
2.95
|
|
|
$
|
3.08
|
|
|
$
|
2.88
|
|
|
|
Three months ended
|
|||||||
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|||
|
|
2017
|
|
2017
|
|
2016
|
|||
Active Rigs by Location
|
|
|
|
|
|
|
|||
United States
|
|
946
|
|
|
895
|
|
|
479
|
|
Canada
|
|
208
|
|
|
117
|
|
|
121
|
|
International
|
|
947
|
|
|
958
|
|
|
936
|
|
Global Active Rigs
|
|
2,101
|
|
|
1,970
|
|
|
1,536
|
|
|
|
|
|
|
|
|
|||
Land vs. Offshore Rigs
|
|
|
|
|
|
|
|||
Land
|
|
1,883
|
|
|
1,748
|
|
|
1,291
|
|
Offshore
|
|
218
|
|
|
222
|
|
|
245
|
|
Global Active Rigs
|
|
2,101
|
|
|
1,970
|
|
|
1,536
|
|
|
|
|
|
|
|
|
|||
U.S. Commodity Target
|
|
|
|
|
|
|
|||
Oil/Gas
|
|
759
|
|
|
717
|
|
|
389
|
|
Gas
|
|
186
|
|
|
177
|
|
|
88
|
|
Unclassified
|
|
1
|
|
|
1
|
|
|
2
|
|
Total U.S. Active Rigs
|
|
946
|
|
|
895
|
|
|
479
|
|
|
|
|
|
|
|
|
|||
U.S. Well Path
|
|
|
|
|
|
|
|||
Horizontal
|
|
799
|
|
|
751
|
|
|
372
|
|
Vertical
|
|
70
|
|
|
77
|
|
|
62
|
|
Directional
|
|
77
|
|
|
67
|
|
|
45
|
|
Total U.S. Active Rigs
|
|
946
|
|
|
895
|
|
|
479
|
|
(in millions of dollars)
|
Three months ended September 30,
|
|
Nine months ended September 30, 2017
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Orders:
|
|
|
|
|
|
|
|
||||||||
Drilling & Subsea
|
$
|
49.3
|
|
|
$
|
46.3
|
|
|
$
|
170.1
|
|
|
$
|
150.8
|
|
Completions
|
72.4
|
|
|
33.1
|
|
|
190.8
|
|
|
92.2
|
|
||||
Production & Infrastructure
|
108.7
|
|
|
65.6
|
|
|
277.5
|
|
|
171.5
|
|
||||
Total Orders
|
$
|
230.4
|
|
|
$
|
145.0
|
|
|
$
|
638.4
|
|
|
$
|
414.5
|
|
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
Net cash provided by (used in) operating activities
|
$
|
(17.1
|
)
|
|
$
|
44.2
|
|
Net cash used in investing activities
|
(66.7
|
)
|
|
(12.4
|
)
|
||
Net cash provided by (used in) financing activities
|
(2.9
|
)
|
|
0.7
|
|
||
Net increase (decrease) in cash and cash equivalents
|
$
|
(78.0
|
)
|
|
$
|
23.3
|
|
Period
|
|
Total number of shares purchased
|
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plan or programs
|
|
Maximum value of shares that may yet be purchased under the plan or program
(in thousands)
|
||||||
July 1, 2017 - July 31, 2017
|
|
30,023
|
|
|
$
|
15.54
|
|
|
—
|
|
|
$
|
49,752
|
|
August 1, 2017 - August 31, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
49,752
|
|
September 1, 2017 - September 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
49,752
|
|
Total
|
|
30,023
|
|
|
$
|
15.54
|
|
|
—
|
|
|
|
|
Exhibit
|
|
|
Number
|
|
DESCRIPTION
|
|
|
|
10.1*
|
|
|
|
|
|
10.2*
|
|
|
|
|
|
31.1**
|
—
|
|
|
|
|
31.2**
|
—
|
|
|
|
|
32.1***
|
—
|
|
|
|
|
32.2***
|
—
|
|
|
|
|
101.INS**
|
—
|
XBRL Instance Document.
|
|
|
|
101.SCH**
|
—
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL**
|
—
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.LAB**
|
—
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE**
|
—
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
101.DEF**
|
—
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
|
|
|
FORUM ENERGY TECHNOLOGIES, INC.
|
|
||
Date:
|
November 1, 2017
|
By:
|
/s/ James W. Harris
|
|
|
|
|
|
James W. Harris
|
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
(As Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Tylar K. Schmitt
|
|
|
|
|
|
Tylar K. Schmitt
|
|
|
|
|
|
Vice President and Chief Accounting Officer
|
|
|
|
|
|
(As Duly Authorized Officer and Principal Accounting Officer)
|
|
1 Year Forum Energy Technologies Chart |
1 Month Forum Energy Technologies Chart |
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