Forum Energy Technologies(US:FET)2023-05-04 16:00Revenue Performance - For the three months ended March 31, 2023, total revenue was $188.96 million, an increase of $33.78 million, or 21.8%, compared to the same period in 2022[86]. - The Drilling & Downhole segment generated $76.79 million in revenue, up 7.8% from $71.26 million in Q1 2022, driven by a 39.5% increase in the Drilling Technologies product line[87]. - The Completions segment saw revenue rise to $73.67 million, a 40.2% increase from $52.54 million in Q1 2022, reflecting higher market activity[86]. - The Production segment's revenue increased by 23.8% to $38.99 million from $31.51 million in Q1 2022[86]. - Completions segment revenue increased to $73.7 million for Q1 2023, up $21.1 million or 40.2% year-over-year, driven by a 56.9% increase in Stimulation & Intervention product line revenue[88]. - Production segment revenue reached $39.0 million for Q1 2023, an increase of $7.5 million or 23.8% compared to Q1 2022, primarily due to a 31.2% increase in demand for processing equipment[89]. Operating Income and Loss - The company reported a net loss of $3.49 million for Q1 2023, an improvement of 62.1% compared to a net loss of $9.20 million in Q1 2022[86]. - Operating income for the total segments was $6.85 million in Q1 2023, a significant increase from a loss of $5.71 million in Q1 2022[86]. - Segment operating income improved to $6.6 million for Q1 2023, a $12.3 million increase from a loss of $5.7 million in Q1 2022, with an operating margin of 3.5% compared to (3.7)% in the prior year[90]. - Drilling & Downhole segment operating income was $8.4 million, or 11.0%, for Q1 2023, up from $6.0 million, or 8.4%, in Q1 2022, attributed to a 7.8% revenue increase and improved operating leverage[90]. - Completions segment operating income was $3.6 million, or 4.8%, for Q1 2023, compared to a loss of $0.7 million in Q1 2022, driven by a 40.2% revenue increase[91]. - Production segment operating income was $1.6 million, or 4.2%, for Q1 2023, compared to a loss of $1.8 million in Q1 2022, supported by a 23.8% revenue increase[92]. Market Activity and Prices - The global active rig count reached 1,896 as of March 31, 2023, up from 1,654 in Q1 2022, indicating a recovery in drilling activity[81]. - Average WTI crude oil price for Q1 2023 was $75.93 per barrel, down from $95.18 in Q1 2022, while Brent averaged $81.07, down from $100.87[83]. - Natural gas prices decreased by 43.5% in Q1 2023 compared to Q1 2022, with Henry Hub averaging $2.64 per Mcf[80]. Orders and Cash Flow - Total inbound orders for Q1 2023 were $178.9 million, a decrease from $215.1 million in Q4 2022, with Drilling & Downhole orders at $81.0 million[85]. - Net cash used in operating activities was $23.1 million for Q1 2023, an improvement from $24.9 million in Q1 2022, reflecting better net income adjusted for non-cash items[105]. Financial Management and Controls - As of March 31, 2023, the company had $134.2 million in 2025 Notes outstanding and $25.0 million in borrowings under the revolving Credit Facility[100]. - The company anticipates total capital expenditures for 2023 to be less than $15.0 million, focusing on replacing end-of-life machinery and equipment[101]. - The company maintains effective disclosure controls and procedures as of March 31, 2023, providing reasonable assurance for timely reporting[118]. - There have been no changes in internal control over financial reporting that materially affected the company's reporting during the quarter ended March 31, 2023[119]. - The evaluation of disclosure controls was conducted under the supervision of the Chief Executive Officer and Chief Financial Officer[118].