þ
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|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the Quarterly Period Ended September 30, 2015
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o
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|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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|
61-1488595
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(State or other jurisdiction of
|
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(I.R.S. Employer Identification No.)
|
incorporation or organization)
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|
|
Large accelerated filer
þ
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|
Accelerated filer
o
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|
Non-accelerated filer
o
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|
Smaller reporting company
o
|
|
|
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|
(Do not check if a smaller reporting company)
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|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in thousands, except per share information)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net sales
|
$
|
244,993
|
|
|
$
|
468,822
|
|
|
$
|
877,504
|
|
|
$
|
1,301,039
|
|
Cost of sales
|
179,231
|
|
|
316,784
|
|
|
617,733
|
|
|
883,070
|
|
||||
Gross profit
|
65,762
|
|
|
152,038
|
|
|
259,771
|
|
|
417,969
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
57,235
|
|
|
81,316
|
|
|
197,020
|
|
|
230,087
|
|
||||
Transaction expenses
|
193
|
|
|
1,516
|
|
|
433
|
|
|
2,326
|
|
||||
Loss (gain) on sale of assets and other
|
11
|
|
|
(85
|
)
|
|
(264
|
)
|
|
320
|
|
||||
Total operating expenses
|
57,439
|
|
|
82,747
|
|
|
197,189
|
|
|
232,733
|
|
||||
Earnings from equity investment
|
3,870
|
|
|
6,749
|
|
|
12,281
|
|
|
17,997
|
|
||||
Operating income
|
12,193
|
|
|
76,040
|
|
|
74,863
|
|
|
203,233
|
|
||||
Other expense (income)
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
7,453
|
|
|
7,699
|
|
|
22,687
|
|
|
23,174
|
|
||||
Foreign exchange (gains) losses and other, net
|
(2,910
|
)
|
|
(5,222
|
)
|
|
(5,511
|
)
|
|
(616
|
)
|
||||
Total other expense
|
4,543
|
|
|
2,477
|
|
|
17,176
|
|
|
22,558
|
|
||||
Income before income taxes
|
7,650
|
|
|
73,563
|
|
|
57,687
|
|
|
180,675
|
|
||||
Provision for income tax expense
|
932
|
|
|
21,332
|
|
|
13,448
|
|
|
52,395
|
|
||||
Net income
|
6,718
|
|
|
52,231
|
|
|
44,239
|
|
|
128,280
|
|
||||
Less: Income (loss) attributable to noncontrolling interest
|
(2
|
)
|
|
5
|
|
|
(27
|
)
|
|
2
|
|
||||
Net income attributable to common stockholders
|
6,720
|
|
|
52,226
|
|
|
44,266
|
|
|
128,278
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
90,058
|
|
|
93,331
|
|
|
89,770
|
|
|
92,728
|
|
||||
Diluted
|
91,687
|
|
|
96,198
|
|
|
91,576
|
|
|
95,631
|
|
||||
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.07
|
|
|
$
|
0.56
|
|
|
$
|
0.49
|
|
|
$
|
1.38
|
|
Diluted
|
$
|
0.07
|
|
|
$
|
0.54
|
|
|
$
|
0.48
|
|
|
$
|
1.34
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Net income
|
6,718
|
|
|
52,231
|
|
|
44,239
|
|
|
128,280
|
|
||||
Change in foreign currency translation, net of tax of $0
|
(18,747
|
)
|
|
(34,474
|
)
|
|
(30,553
|
)
|
|
(21,754
|
)
|
||||
Gain (loss) on pension liability
|
(2
|
)
|
|
—
|
|
|
68
|
|
|
2
|
|
||||
Comprehensive income (loss)
|
(12,031
|
)
|
|
17,757
|
|
|
13,754
|
|
|
106,528
|
|
||||
Less: comprehensive loss (income) attributable to noncontrolling interests
|
64
|
|
|
(32
|
)
|
|
118
|
|
|
(20
|
)
|
||||
Comprehensive income (loss) attributable to common stockholders
|
$
|
(11,967
|
)
|
|
$
|
17,725
|
|
|
$
|
13,872
|
|
|
$
|
106,508
|
|
(in thousands, except share information)
|
September 30,
2015 |
|
December 31,
2014 |
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
76,185
|
|
|
$
|
76,579
|
|
Accounts receivable—trade, net
|
157,591
|
|
|
287,045
|
|
||
Inventories
|
504,756
|
|
|
461,515
|
|
||
Prepaid expenses and other current assets
|
39,430
|
|
|
32,985
|
|
||
Costs and estimated profits in excess of billings
|
18,449
|
|
|
14,646
|
|
||
Deferred income taxes, net
|
20,380
|
|
|
22,389
|
|
||
Total current assets
|
816,791
|
|
|
895,159
|
|
||
Property and equipment, net of accumulated depreciation
|
196,804
|
|
|
189,974
|
|
||
Deferred financing costs, net
|
11,189
|
|
|
13,107
|
|
||
Intangibles
|
257,050
|
|
|
271,739
|
|
||
Goodwill
|
799,601
|
|
|
798,481
|
|
||
Investment in unconsolidated subsidiary
|
56,457
|
|
|
49,675
|
|
||
Other long-term assets
|
3,494
|
|
|
3,493
|
|
||
Total assets
|
$
|
2,141,386
|
|
|
$
|
2,221,628
|
|
Liabilities and equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current portion of long-term debt
|
$
|
335
|
|
|
$
|
840
|
|
Accounts payable—trade
|
92,244
|
|
|
127,757
|
|
||
Accrued liabilities
|
79,241
|
|
|
126,890
|
|
||
Deferred revenue
|
9,342
|
|
|
10,919
|
|
||
Billings in excess of costs and profits recognized
|
9,111
|
|
|
15,785
|
|
||
Total current liabilities
|
190,273
|
|
|
282,191
|
|
||
Long-term debt, net of current portion
|
402,556
|
|
|
428,010
|
|
||
Deferred income taxes, net
|
94,205
|
|
|
98,188
|
|
||
Other long-term liabilities
|
23,409
|
|
|
17,318
|
|
||
Total liabilities
|
710,443
|
|
|
825,707
|
|
||
Commitments and contingencies
|
|
|
|
|
|||
Equity
|
|
|
|
||||
Common stock, $0.01 par value, 296,000,000 shares authorized, 98,522,054 and 97,865,278 shares issued
|
985
|
|
|
979
|
|
||
Additional paid-in capital
|
886,221
|
|
|
864,313
|
|
||
Treasury stock at cost, 8,141,445 and 8,108,983 shares
|
(133,126
|
)
|
|
(132,480
|
)
|
||
Retained earnings
|
743,771
|
|
|
699,505
|
|
||
Accumulated other comprehensive income (loss)
|
(67,355
|
)
|
|
(36,961
|
)
|
||
Total stockholders’ equity
|
1,430,496
|
|
|
1,395,356
|
|
||
Noncontrolling interest in subsidiary
|
447
|
|
|
565
|
|
||
Total equity
|
1,430,943
|
|
|
1,395,921
|
|
||
Total liabilities and equity
|
$
|
2,141,386
|
|
|
$
|
2,221,628
|
|
|
Nine Months Ended September 30,
|
||||||
(in thousands, except share information)
|
2015
|
|
2014
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
44,239
|
|
|
$
|
128,280
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
||||
Depreciation expense
|
28,721
|
|
|
28,274
|
|
||
Amortization of intangible assets
|
20,558
|
|
|
20,608
|
|
||
Share-based compensation expense
|
17,090
|
|
|
14,334
|
|
||
Deferred income taxes
|
(1,528
|
)
|
|
(4,477
|
)
|
||
Earnings from equity investment, net of distributions
|
(6,782
|
)
|
|
3,092
|
|
||
Other
|
4,523
|
|
|
3,644
|
|
||
Changes in operating assets and liabilities
|
|
|
|
||||
Accounts receivable—trade
|
129,601
|
|
|
(67,793
|
)
|
||
Inventories
|
(24,729
|
)
|
|
(14,520
|
)
|
||
Prepaid expenses and other current assets
|
(2,019
|
)
|
|
(6,872
|
)
|
||
Accounts payable, deferred revenue and other accrued liabilities
|
(81,496
|
)
|
|
66,744
|
|
||
Costs and estimated profits in excess of billings, net
|
(10,472
|
)
|
|
8,439
|
|
||
Net cash provided by operating activities
|
$
|
117,706
|
|
|
$
|
179,753
|
|
Cash flows from investing activities
|
|
|
|
||||
Acquisition of businesses, net of cash acquired
|
(60,836
|
)
|
|
(38,289
|
)
|
||
Capital expenditures for property and equipment
|
(28,046
|
)
|
|
(39,932
|
)
|
||
Proceeds from sale of business, property and equipment
|
1,699
|
|
|
8,735
|
|
||
Net cash used in investing activities
|
$
|
(87,183
|
)
|
|
$
|
(69,486
|
)
|
Cash flows from financing activities
|
|
|
|
||||
Borrowings under Credit Facility
|
79,943
|
|
|
—
|
|
||
Repayment of long-term debt
|
(105,985
|
)
|
|
(91,760
|
)
|
||
Excess tax benefits from stock based compensation
|
206
|
|
|
7,291
|
|
||
Repurchases of stock
|
(6,246
|
)
|
|
(1,328
|
)
|
||
Proceeds from stock issuance
|
4,618
|
|
|
10,332
|
|
||
Deferred financing costs
|
—
|
|
|
(6
|
)
|
||
Net cash used in financing activities
|
$
|
(27,464
|
)
|
|
$
|
(75,471
|
)
|
Effect of exchange rate changes on cash
|
(3,453
|
)
|
|
(294
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
(394
|
)
|
|
34,502
|
|
||
Cash and cash equivalents
|
|
|
|
||||
Beginning of period
|
76,579
|
|
|
39,582
|
|
||
End of period
|
$
|
76,185
|
|
|
$
|
74,084
|
|
|
|
2015 Acquisition
|
||
Current assets, net of cash acquired
|
|
$
|
37,095
|
|
Property and equipment
|
|
11,506
|
|
|
Intangible assets (primarily customer relationships)
|
|
10,400
|
|
|
Tax-deductible goodwill
|
|
15,350
|
|
|
Current liabilities
|
|
(10,138
|
)
|
|
Long-term liabilities
|
|
(22
|
)
|
|
Net assets acquired
|
|
$
|
64,191
|
|
|
|
2014 Acquisition
|
||
Current assets, net of cash acquired
|
|
$
|
7,596
|
|
Property and equipment
|
|
3,837
|
|
|
Intangible assets (primarily customer relationships)
|
|
11,527
|
|
|
Non-tax-deductible goodwill
|
|
20,573
|
|
|
Current liabilities
|
|
(1,615
|
)
|
|
Deferred tax liabilities
|
|
(3,629
|
)
|
|
Net assets acquired
|
|
$
|
38,289
|
|
|
September 30,
2015 |
|
December 31,
2014 |
||||
Raw materials and parts
|
$
|
156,595
|
|
|
$
|
153,768
|
|
Work in process
|
51,636
|
|
|
50,913
|
|
||
Finished goods
|
330,180
|
|
|
286,290
|
|
||
Gross inventories
|
538,411
|
|
|
490,971
|
|
||
Inventory reserve
|
(33,655
|
)
|
|
(29,456
|
)
|
||
Inventories
|
$
|
504,756
|
|
|
$
|
461,515
|
|
|
Drilling & Subsea
|
|
Production & Infrastructure
|
|
Total
|
||||||
Goodwill Balance at December 31, 2014 net
|
$
|
719,860
|
|
|
$
|
78,621
|
|
|
$
|
798,481
|
|
Acquisitions
|
—
|
|
|
15,350
|
|
|
15,350
|
|
|||
Impact of non-U.S. local currency translation
|
(13,756
|
)
|
|
(474
|
)
|
|
(14,230
|
)
|
|||
Goodwill Balance at September 30, 2015 net
|
$
|
706,104
|
|
|
$
|
93,497
|
|
|
$
|
799,601
|
|
|
September 30, 2015
|
||||||||||||
|
Gross carrying
amount
|
|
Accumulated
amortization
|
|
Net amortizable
intangibles
|
|
Amortization
period (in years)
|
||||||
Customer relationships
|
$
|
282,989
|
|
|
$
|
(98,177
|
)
|
|
$
|
184,812
|
|
|
4-15
|
Patents and technology
|
34,425
|
|
|
(9,721
|
)
|
|
24,704
|
|
|
5-17
|
|||
Non-compete agreements
|
7,339
|
|
|
(6,233
|
)
|
|
1,106
|
|
|
3-6
|
|||
Trade names
|
49,834
|
|
|
(17,302
|
)
|
|
32,532
|
|
|
10-15
|
|||
Distributor relationships
|
22,160
|
|
|
(13,494
|
)
|
|
8,666
|
|
|
8-15
|
|||
Trademark
|
5,230
|
|
|
—
|
|
|
5,230
|
|
|
Indefinite
|
|||
Intangible Assets Total
|
$
|
401,977
|
|
|
$
|
(144,927
|
)
|
|
$
|
257,050
|
|
|
|
|
December 31, 2014
|
||||||||||||
|
Gross carrying
amount
|
|
Accumulated
amortization
|
|
Net amortizable
intangibles
|
|
Amortization
period (in years)
|
||||||
Customer relationships
|
$
|
284,120
|
|
|
$
|
(84,947
|
)
|
|
$
|
199,173
|
|
|
4-15
|
Patents and technology
|
31,069
|
|
|
(8,074
|
)
|
|
22,995
|
|
|
5-17
|
|||
Non-compete agreements
|
7,086
|
|
|
(5,761
|
)
|
|
1,325
|
|
|
3-6
|
|||
Trade names
|
48,149
|
|
|
(14,747
|
)
|
|
33,402
|
|
|
10-15
|
|||
Distributor relationships
|
22,160
|
|
|
(12,546
|
)
|
|
9,614
|
|
|
8-15
|
|||
Trademark
|
5,230
|
|
|
—
|
|
|
5,230
|
|
|
Indefinite
|
|||
Intangible Assets Total
|
$
|
397,814
|
|
|
$
|
(126,075
|
)
|
|
$
|
271,739
|
|
|
|
|
Three months ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net revenues
|
$
|
26,033
|
|
|
$
|
37,204
|
|
|
$
|
81,513
|
|
|
$
|
102,113
|
|
Gross profit
|
11,731
|
|
|
18,253
|
|
|
36,505
|
|
|
49,160
|
|
||||
Net income
|
8,063
|
|
|
14,060
|
|
|
25,588
|
|
|
37,659
|
|
||||
The Company's earnings from equity investment
|
3,870
|
|
|
6,749
|
|
|
12,281
|
|
|
17,997
|
|
|
September 30,
2015 |
|
December 31,
2014 |
||||
6.25% Senior Notes due October 2021
|
$
|
402,497
|
|
|
$
|
402,801
|
|
Senior secured revolving credit facility
|
—
|
|
|
25,000
|
|
||
Other debt
|
394
|
|
|
1,049
|
|
||
Total debt
|
402,891
|
|
|
428,850
|
|
||
Less: current maturities
|
(335
|
)
|
|
(840
|
)
|
||
Long-term debt
|
$
|
402,556
|
|
|
$
|
428,010
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Drilling & Subsea
|
$
|
139,073
|
|
|
$
|
307,454
|
|
|
$
|
523,850
|
|
|
$
|
848,474
|
|
Production & Infrastructure
|
106,186
|
|
|
161,696
|
|
|
354,278
|
|
|
453,640
|
|
||||
Intersegment eliminations
|
(266
|
)
|
|
(328
|
)
|
|
(624
|
)
|
|
(1,075
|
)
|
||||
Total Revenue
|
$
|
244,993
|
|
|
$
|
468,822
|
|
|
$
|
877,504
|
|
|
$
|
1,301,039
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income:
|
|
|
|
|
|
|
|
||||||||
Drilling & Subsea
|
$
|
6,675
|
|
|
$
|
57,929
|
|
|
$
|
51,261
|
|
|
$
|
155,330
|
|
Production & Infrastructure
|
10,715
|
|
|
29,816
|
|
|
45,108
|
|
|
80,260
|
|
||||
Corporate
|
(4,993
|
)
|
|
(10,274
|
)
|
|
(21,337
|
)
|
|
(29,711
|
)
|
||||
Total segment operating income
|
12,397
|
|
|
77,471
|
|
|
75,032
|
|
|
205,879
|
|
||||
Transaction expenses
|
193
|
|
|
1,516
|
|
|
433
|
|
|
2,326
|
|
||||
Loss (gain) on sale of assets and other
|
11
|
|
|
(85
|
)
|
|
(264
|
)
|
|
320
|
|
||||
Income from operations
|
$
|
12,193
|
|
|
$
|
76,040
|
|
|
$
|
74,863
|
|
|
$
|
203,233
|
|
|
|
September 30,
2015 |
|
December 31,
2014 |
||||
Assets
|
|
|
|
|
||||
Drilling & Subsea
|
|
$
|
1,525,824
|
|
|
$
|
1,674,934
|
|
Production & Infrastructure
|
|
546,712
|
|
|
488,225
|
|
||
Corporate
|
|
68,850
|
|
|
58,469
|
|
||
Total assets
|
|
$
|
2,141,386
|
|
|
$
|
2,221,628
|
|
|
Three months ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net Income attributable to common stockholders
|
$
|
6,720
|
|
|
$
|
52,226
|
|
|
$
|
44,266
|
|
|
$
|
128,278
|
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding (basic)
|
90,058
|
|
|
93,331
|
|
|
89,770
|
|
|
92,728
|
|
||||
Common stock equivalents
|
1,629
|
|
|
2,867
|
|
|
1,806
|
|
|
2,903
|
|
||||
Diluted shares
|
91,687
|
|
|
96,198
|
|
|
91,576
|
|
|
95,631
|
|
||||
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.07
|
|
|
$
|
0.56
|
|
|
$
|
0.49
|
|
|
$
|
1.38
|
|
Diluted earnings per share
|
$
|
0.07
|
|
|
$
|
0.54
|
|
|
$
|
0.48
|
|
|
$
|
1.34
|
|
Condensed consolidating statements of comprehensive income
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three months ended September 30, 2015
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
182,986
|
|
|
$
|
83,751
|
|
|
$
|
(21,744
|
)
|
|
$
|
244,993
|
|
Cost of sales
|
|
—
|
|
|
140,444
|
|
|
60,494
|
|
|
(21,707
|
)
|
|
179,231
|
|
|||||
Gross profit
|
|
—
|
|
|
42,542
|
|
|
23,257
|
|
|
(37
|
)
|
|
65,762
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
—
|
|
|
41,157
|
|
|
16,078
|
|
|
—
|
|
|
57,235
|
|
|||||
Transaction expenses
|
|
—
|
|
|
193
|
|
|
—
|
|
|
—
|
|
|
193
|
|
|||||
Loss (gain) on sale of assets and other
|
|
—
|
|
|
(15
|
)
|
|
26
|
|
|
—
|
|
|
11
|
|
|||||
Total operating expenses
|
|
—
|
|
|
41,335
|
|
|
16,104
|
|
|
—
|
|
|
57,439
|
|
|||||
Earnings from equity investment
|
|
—
|
|
|
3,870
|
|
|
—
|
|
|
—
|
|
|
3,870
|
|
|||||
Equity earnings from affiliate, net of tax
|
|
11,568
|
|
|
8,286
|
|
|
—
|
|
|
(19,854
|
)
|
|
—
|
|
|||||
Operating income
|
|
11,568
|
|
|
13,363
|
|
|
7,153
|
|
|
(19,891
|
)
|
|
12,193
|
|
|||||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income)
|
|
7,458
|
|
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
7,453
|
|
|||||
Foreign exchange (gains) losses and other, net
|
|
—
|
|
|
(253
|
)
|
|
(2,657
|
)
|
|
—
|
|
|
(2,910
|
)
|
|||||
Total other expense (income)
|
|
7,458
|
|
|
(254
|
)
|
|
(2,661
|
)
|
|
—
|
|
|
4,543
|
|
|||||
Income before income taxes
|
|
4,110
|
|
|
13,617
|
|
|
9,814
|
|
|
(19,891
|
)
|
|
7,650
|
|
|||||
Provision for income tax expense
|
|
(2,610
|
)
|
|
2,049
|
|
|
1,493
|
|
|
—
|
|
|
932
|
|
|||||
Net income
|
|
6,720
|
|
|
11,568
|
|
|
8,321
|
|
|
(19,891
|
)
|
|
6,718
|
|
|||||
Less: Income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Net income attributable to common stockholders
|
|
6,720
|
|
|
11,568
|
|
|
8,323
|
|
|
(19,891
|
)
|
|
6,720
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
6,720
|
|
|
11,568
|
|
|
8,321
|
|
|
(19,891
|
)
|
|
6,718
|
|
|||||
Change in foreign currency translation, net of tax of $0
|
|
(18,747
|
)
|
|
(18,747
|
)
|
|
(18,747
|
)
|
|
37,494
|
|
|
(18,747
|
)
|
|||||
Change in pension liability
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
4
|
|
|
(2
|
)
|
|||||
Comprehensive income (loss)
|
|
(12,029
|
)
|
|
(7,181
|
)
|
|
(10,428
|
)
|
|
17,607
|
|
|
(12,031
|
)
|
|||||
Less: comprehensive (income) loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|
64
|
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
|
$
|
(12,029
|
)
|
|
$
|
(7,181
|
)
|
|
$
|
(10,364
|
)
|
|
$
|
17,607
|
|
|
$
|
(11,967
|
)
|
Condensed consolidating statements of comprehensive income
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three months ended September 30, 2014
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
330,772
|
|
|
$
|
179,458
|
|
|
$
|
(41,408
|
)
|
|
$
|
468,822
|
|
Cost of sales
|
|
—
|
|
|
230,938
|
|
|
127,423
|
|
|
(41,577
|
)
|
|
316,784
|
|
|||||
Gross profit
|
|
—
|
|
|
99,834
|
|
|
52,035
|
|
|
169
|
|
|
152,038
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
—
|
|
|
63,228
|
|
|
18,088
|
|
|
—
|
|
|
81,316
|
|
|||||
Other operating expense
|
|
—
|
|
|
1,419
|
|
|
12
|
|
|
—
|
|
|
1,431
|
|
|||||
Total operating expenses
|
|
—
|
|
|
64,647
|
|
|
18,100
|
|
|
—
|
|
|
82,747
|
|
|||||
Earnings from equity investment
|
|
—
|
|
|
6,749
|
|
|
—
|
|
|
—
|
|
|
6,749
|
|
|||||
Equity earnings from affiliates, net of tax
|
|
57,161
|
|
|
28,048
|
|
|
—
|
|
|
(85,209
|
)
|
|
—
|
|
|||||
Operating income
|
|
57,161
|
|
|
69,984
|
|
|
33,935
|
|
|
(85,040
|
)
|
|
76,040
|
|
|||||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income)
|
|
7,593
|
|
|
75
|
|
|
31
|
|
|
—
|
|
|
7,699
|
|
|||||
Interest income with affiliate
|
|
—
|
|
|
(1,887
|
)
|
|
—
|
|
|
1,887
|
|
|
—
|
|
|||||
Interest expense with affiliate
|
|
—
|
|
|
—
|
|
|
1,887
|
|
|
(1,887
|
)
|
|
—
|
|
|||||
Foreign exchange (gains) losses and other, net
|
|
—
|
|
|
(744
|
)
|
|
(4,478
|
)
|
|
—
|
|
|
(5,222
|
)
|
|||||
Total other expense (income)
|
|
7,593
|
|
|
(2,556
|
)
|
|
(2,560
|
)
|
|
—
|
|
|
2,477
|
|
|||||
Income before income taxes
|
|
49,568
|
|
|
72,540
|
|
|
36,495
|
|
|
(85,040
|
)
|
|
73,563
|
|
|||||
Provision for income tax expense
|
|
(2,658
|
)
|
|
15,379
|
|
|
8,611
|
|
|
—
|
|
|
21,332
|
|
|||||
Net income
|
|
52,226
|
|
|
57,161
|
|
|
27,884
|
|
|
(85,040
|
)
|
|
52,231
|
|
|||||
Less: Income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Net income attributable to common stockholders
|
|
52,226
|
|
|
57,161
|
|
|
27,879
|
|
|
(85,040
|
)
|
|
52,226
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
52,226
|
|
|
57,161
|
|
|
27,884
|
|
|
(85,040
|
)
|
|
52,231
|
|
|||||
Change in foreign currency translation, net of tax of $0
|
|
(34,474
|
)
|
|
(34,474
|
)
|
|
(34,474
|
)
|
|
68,948
|
|
|
(34,474
|
)
|
|||||
Comprehensive income (loss)
|
|
17,752
|
|
|
22,687
|
|
|
(6,590
|
)
|
|
(16,092
|
)
|
|
17,757
|
|
|||||
Less: comprehensive (income) loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
(32
|
)
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
|
$
|
17,752
|
|
|
$
|
22,687
|
|
|
$
|
(6,622
|
)
|
|
$
|
(16,092
|
)
|
|
$
|
17,725
|
|
Condensed consolidating statements of comprehensive income
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine months ended September 30, 2015
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
661,419
|
|
|
$
|
306,431
|
|
|
$
|
(90,346
|
)
|
|
$
|
877,504
|
|
Cost of sales
|
|
—
|
|
|
484,338
|
|
|
221,940
|
|
|
(88,545
|
)
|
|
617,733
|
|
|||||
Gross profit
|
|
—
|
|
|
177,081
|
|
|
84,491
|
|
|
(1,801
|
)
|
|
259,771
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
—
|
|
|
150,955
|
|
|
46,065
|
|
|
—
|
|
|
197,020
|
|
|||||
Transaction expenses
|
|
—
|
|
|
433
|
|
|
—
|
|
|
—
|
|
|
433
|
|
|||||
Loss (gain) on sale of assets and other
|
|
—
|
|
|
(73
|
)
|
|
(191
|
)
|
|
—
|
|
|
(264
|
)
|
|||||
Total operating expenses
|
|
—
|
|
|
151,315
|
|
|
45,874
|
|
|
—
|
|
|
197,189
|
|
|||||
Earnings from equity investment
|
|
—
|
|
|
12,281
|
|
|
—
|
|
|
—
|
|
|
12,281
|
|
|||||
Equity earnings from affiliates, net of tax
|
|
59,002
|
|
|
35,116
|
|
|
—
|
|
|
(94,118
|
)
|
|
—
|
|
|||||
Operating income
|
|
59,002
|
|
|
73,163
|
|
|
38,617
|
|
|
(95,919
|
)
|
|
74,863
|
|
|||||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income)
|
|
22,670
|
|
|
13
|
|
|
4
|
|
|
—
|
|
|
22,687
|
|
|||||
Foreign exchange (gains) losses and other, net
|
|
—
|
|
|
(407
|
)
|
|
(5,104
|
)
|
|
—
|
|
|
(5,511
|
)
|
|||||
Total other expense (income)
|
|
22,670
|
|
|
(394
|
)
|
|
(5,100
|
)
|
|
—
|
|
|
17,176
|
|
|||||
Income before income taxes
|
|
36,332
|
|
|
73,557
|
|
|
43,717
|
|
|
(95,919
|
)
|
|
57,687
|
|
|||||
Provision for income tax expense
|
|
(7,934
|
)
|
|
14,555
|
|
|
6,827
|
|
|
—
|
|
|
13,448
|
|
|||||
Net income
|
|
44,266
|
|
|
59,002
|
|
|
36,890
|
|
|
(95,919
|
)
|
|
44,239
|
|
|||||
Less: Income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(27
|
)
|
|||||
Net income attributable to common stockholders
|
|
44,266
|
|
|
59,002
|
|
|
36,917
|
|
|
(95,919
|
)
|
|
44,266
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
44,266
|
|
|
59,002
|
|
|
36,890
|
|
|
(95,919
|
)
|
|
44,239
|
|
|||||
Change in foreign currency translation, net of tax of $0
|
|
(30,553
|
)
|
|
(30,553
|
)
|
|
(30,553
|
)
|
|
61,106
|
|
|
(30,553
|
)
|
|||||
Change in pension liability
|
|
68
|
|
|
68
|
|
|
68
|
|
|
(136
|
)
|
|
68
|
|
|||||
Comprehensive income (loss)
|
|
13,781
|
|
|
28,517
|
|
|
6,405
|
|
|
(34,949
|
)
|
|
13,754
|
|
|||||
Less: comprehensive (income) loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
118
|
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
|
$
|
13,781
|
|
|
$
|
28,517
|
|
|
$
|
6,523
|
|
|
$
|
(34,949
|
)
|
|
$
|
13,872
|
|
Condensed consolidating statements of comprehensive income
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended September 30, 2014
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
941,885
|
|
|
$
|
480,049
|
|
|
$
|
(120,895
|
)
|
|
$
|
1,301,039
|
|
Cost of sales
|
|
—
|
|
|
659,444
|
|
|
342,269
|
|
|
(118,643
|
)
|
|
883,070
|
|
|||||
Gross profit
|
|
—
|
|
|
282,441
|
|
|
137,780
|
|
|
(2,252
|
)
|
|
417,969
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expenses
|
|
—
|
|
|
176,331
|
|
|
53,756
|
|
|
—
|
|
|
230,087
|
|
|||||
Transaction expenses
|
|
—
|
|
|
2,326
|
|
|
—
|
|
|
—
|
|
|
2,326
|
|
|||||
Loss (gain) on sale of assets and other
|
|
—
|
|
|
639
|
|
|
(319
|
)
|
|
—
|
|
|
320
|
|
|||||
Total operating expenses
|
|
—
|
|
|
179,296
|
|
|
53,437
|
|
|
—
|
|
|
232,733
|
|
|||||
Earnings from equity investment
|
|
—
|
|
|
17,997
|
|
|
—
|
|
|
—
|
|
|
17,997
|
|
|||||
Equity earnings from affiliates, net of tax
|
|
143,310
|
|
|
59,688
|
|
|
—
|
|
|
(202,998
|
)
|
|
—
|
|
|||||
Operating income
|
|
143,310
|
|
|
180,830
|
|
|
84,343
|
|
|
(205,250
|
)
|
|
203,233
|
|
|||||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense (income)
|
|
23,126
|
|
|
77
|
|
|
(29
|
)
|
|
—
|
|
|
23,174
|
|
|||||
Interest income with affiliate
|
|
—
|
|
|
(5,770
|
)
|
|
—
|
|
|
5,770
|
|
|
—
|
|
|||||
Interest expense with affiliate
|
|
—
|
|
|
—
|
|
|
5,770
|
|
|
(5,770
|
)
|
|
—
|
|
|||||
Foreign exchange (gains) losses and other, net
|
|
—
|
|
|
274
|
|
|
(890
|
)
|
|
—
|
|
|
(616
|
)
|
|||||
Total other expense (income)
|
|
23,126
|
|
|
(5,419
|
)
|
|
4,851
|
|
|
—
|
|
|
22,558
|
|
|||||
Income before income taxes
|
|
120,184
|
|
|
186,249
|
|
|
79,492
|
|
|
(205,250
|
)
|
|
180,675
|
|
|||||
Provision for income tax expense
|
|
(8,094
|
)
|
|
42,939
|
|
|
17,550
|
|
|
—
|
|
|
52,395
|
|
|||||
Net income
|
|
128,278
|
|
|
143,310
|
|
|
61,942
|
|
|
(205,250
|
)
|
|
128,280
|
|
|||||
Less: Income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Net income attributable to common stockholders
|
|
128,278
|
|
|
143,310
|
|
|
61,940
|
|
|
(205,250
|
)
|
|
128,278
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
128,278
|
|
|
143,310
|
|
|
61,942
|
|
|
(205,250
|
)
|
|
128,280
|
|
|||||
Change in foreign currency translation, net of tax of $0
|
|
(21,754
|
)
|
|
(21,754
|
)
|
|
(21,754
|
)
|
|
43,508
|
|
|
(21,754
|
)
|
|||||
Change in pension liability
|
|
2
|
|
|
2
|
|
|
2
|
|
|
(4
|
)
|
|
2
|
|
|||||
Comprehensive income (loss)
|
|
106,526
|
|
|
121,558
|
|
|
40,190
|
|
|
(161,746
|
)
|
|
106,528
|
|
|||||
Less: comprehensive (income) loss attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
|||||
Comprehensive income (loss) attributable to common stockholders
|
|
$
|
106,526
|
|
|
$
|
121,558
|
|
|
$
|
40,170
|
|
|
$
|
(161,746
|
)
|
|
$
|
106,508
|
|
Condensed consolidating balance sheets
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
September 30, 2015
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
16,104
|
|
|
$
|
60,081
|
|
|
$
|
—
|
|
|
$
|
76,185
|
|
Accounts receivable—trade, net
|
|
—
|
|
|
101,485
|
|
|
56,106
|
|
|
—
|
|
|
157,591
|
|
|||||
Inventories
|
|
—
|
|
|
386,531
|
|
|
128,007
|
|
|
(9,782
|
)
|
|
504,756
|
|
|||||
Cost and profits in excess of billings
|
|
—
|
|
|
8,295
|
|
|
10,154
|
|
|
—
|
|
|
18,449
|
|
|||||
Other current assets
|
|
—
|
|
|
51,104
|
|
|
8,706
|
|
|
—
|
|
|
59,810
|
|
|||||
Total current assets
|
|
—
|
|
|
563,519
|
|
|
263,054
|
|
|
(9,782
|
)
|
|
816,791
|
|
|||||
Property and equipment, net of accumulated depreciation
|
|
—
|
|
|
161,710
|
|
|
35,094
|
|
|
—
|
|
|
196,804
|
|
|||||
Deferred financing costs, net
|
|
11,189
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,189
|
|
|||||
Intangibles
|
|
—
|
|
|
193,333
|
|
|
63,717
|
|
|
—
|
|
|
257,050
|
|
|||||
Goodwill
|
|
—
|
|
|
538,248
|
|
|
261,353
|
|
|
—
|
|
|
799,601
|
|
|||||
Investment in unconsolidated subsidiary
|
|
—
|
|
|
56,457
|
|
|
—
|
|
|
—
|
|
|
56,457
|
|
|||||
Investment in affiliates
|
|
1,362,309
|
|
|
593,121
|
|
|
—
|
|
|
(1,955,430
|
)
|
|
—
|
|
|||||
Long-term advances to affiliates
|
|
472,899
|
|
|
—
|
|
|
59,628
|
|
|
(532,527
|
)
|
|
—
|
|
|||||
Other long-term assets
|
|
—
|
|
|
2,574
|
|
|
920
|
|
|
—
|
|
|
3,494
|
|
|||||
Total assets
|
|
$
|
1,846,397
|
|
|
$
|
2,108,962
|
|
|
$
|
683,766
|
|
|
$
|
(2,497,739
|
)
|
|
$
|
2,141,386
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of long-term debt
|
|
$
|
—
|
|
|
$
|
325
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
335
|
|
Accounts payable—trade
|
|
—
|
|
|
69,069
|
|
|
23,175
|
|
|
—
|
|
|
92,244
|
|
|||||
Accrued liabilities
|
|
13,405
|
|
|
47,117
|
|
|
18,719
|
|
|
—
|
|
|
79,241
|
|
|||||
Deferred revenue
|
|
—
|
|
|
2,582
|
|
|
6,760
|
|
|
—
|
|
|
9,342
|
|
|||||
Billings in excess of costs and profits
|
|
—
|
|
|
2,432
|
|
|
6,679
|
|
|
—
|
|
|
9,111
|
|
|||||
Total current liabilities
|
|
13,405
|
|
|
121,525
|
|
|
55,343
|
|
|
—
|
|
|
190,273
|
|
|||||
Long-term debt, net of current portion
|
|
402,497
|
|
|
44
|
|
|
15
|
|
|
—
|
|
|
402,556
|
|
|||||
Long-term payables to affiliates
|
|
—
|
|
|
532,528
|
|
|
—
|
|
|
(532,528
|
)
|
|
—
|
|
|||||
Deferred income taxes, net
|
|
—
|
|
|
75,002
|
|
|
19,203
|
|
|
—
|
|
|
94,205
|
|
|||||
Other long-term liabilities
|
|
—
|
|
|
17,554
|
|
|
5,855
|
|
|
—
|
|
|
23,409
|
|
|||||
Total liabilities
|
|
415,902
|
|
|
746,653
|
|
|
80,416
|
|
|
(532,528
|
)
|
|
710,443
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholder's equity
|
|
1,430,495
|
|
|
1,362,309
|
|
|
602,903
|
|
|
(1,965,211
|
)
|
|
1,430,496
|
|
|||||
Noncontrolling interest in subsidiary
|
|
—
|
|
|
—
|
|
|
447
|
|
|
—
|
|
|
447
|
|
|||||
Equity
|
|
1,430,495
|
|
|
1,362,309
|
|
|
603,350
|
|
|
(1,965,211
|
)
|
|
1,430,943
|
|
|||||
Total liabilities and equity
|
|
$
|
1,846,397
|
|
|
$
|
2,108,962
|
|
|
$
|
683,766
|
|
|
$
|
(2,497,739
|
)
|
|
$
|
2,141,386
|
|
Condensed consolidating balance sheets
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31, 2014
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
5,551
|
|
|
$
|
4,006
|
|
|
$
|
67,022
|
|
|
$
|
—
|
|
|
$
|
76,579
|
|
Accounts receivable—trade, net
|
|
—
|
|
|
194,964
|
|
|
92,081
|
|
|
—
|
|
|
287,045
|
|
|||||
Inventories
|
|
—
|
|
|
343,902
|
|
|
125,594
|
|
|
(7,981
|
)
|
|
461,515
|
|
|||||
Cost and profits in excess of billings
|
|
—
|
|
|
4,871
|
|
|
9,775
|
|
|
—
|
|
|
14,646
|
|
|||||
Other current assets
|
|
—
|
|
|
38,920
|
|
|
16,454
|
|
|
—
|
|
|
55,374
|
|
|||||
Total current assets
|
|
5,551
|
|
|
586,663
|
|
|
310,926
|
|
|
(7,981
|
)
|
|
895,159
|
|
|||||
Property and equipment, net of accumulated depreciation
|
|
—
|
|
|
153,016
|
|
|
36,958
|
|
|
—
|
|
|
189,974
|
|
|||||
Deferred financing costs, net
|
|
13,107
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,107
|
|
|||||
Intangibles
|
|
—
|
|
|
198,819
|
|
|
72,920
|
|
|
—
|
|
|
271,739
|
|
|||||
Goodwill
|
|
—
|
|
|
522,898
|
|
|
275,583
|
|
|
—
|
|
|
798,481
|
|
|||||
Investment in unconsolidated subsidiary
|
|
—
|
|
|
49,675
|
|
|
—
|
|
|
—
|
|
|
49,675
|
|
|||||
Investment in affiliates
|
|
1,333,701
|
|
|
590,421
|
|
|
—
|
|
|
(1,924,122
|
)
|
|
—
|
|
|||||
Long-term advances to affiliates
|
|
483,534
|
|
|
—
|
|
|
22,531
|
|
|
(506,065
|
)
|
|
—
|
|
|||||
Other long-term assets
|
|
—
|
|
|
2,760
|
|
|
733
|
|
|
—
|
|
|
3,493
|
|
|||||
Total assets
|
|
$
|
1,835,893
|
|
|
$
|
2,104,252
|
|
|
$
|
719,651
|
|
|
$
|
(2,438,168
|
)
|
|
$
|
2,221,628
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable—trade
|
|
$
|
—
|
|
|
$
|
85,179
|
|
|
$
|
42,578
|
|
|
$
|
—
|
|
|
$
|
127,757
|
|
Accrued liabilities
|
|
12,733
|
|
|
84,824
|
|
|
29,333
|
|
|
—
|
|
|
126,890
|
|
|||||
Current portion of debt and other current liabilities
|
|
—
|
|
|
5,800
|
|
|
21,744
|
|
|
—
|
|
|
27,544
|
|
|||||
Total current liabilities
|
|
12,733
|
|
|
175,803
|
|
|
93,655
|
|
|
—
|
|
|
282,191
|
|
|||||
Long-term debt, net of current portion
|
|
427,801
|
|
|
183
|
|
|
26
|
|
|
—
|
|
|
428,010
|
|
|||||
Long-term payables to affiliates
|
|
—
|
|
|
506,065
|
|
|
—
|
|
|
(506,065
|
)
|
|
—
|
|
|||||
Deferred income taxes, net
|
|
—
|
|
|
77,311
|
|
|
20,877
|
|
|
—
|
|
|
98,188
|
|
|||||
Other long-term liabilities
|
|
—
|
|
|
11,189
|
|
|
6,129
|
|
|
—
|
|
|
17,318
|
|
|||||
Total liabilities
|
|
440,534
|
|
|
770,551
|
|
|
120,687
|
|
|
(506,065
|
)
|
|
825,707
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholder's equity
|
|
1,395,359
|
|
|
1,333,701
|
|
|
598,399
|
|
|
(1,932,103
|
)
|
|
1,395,356
|
|
|||||
Noncontrolling interest in subsidiary
|
|
—
|
|
|
—
|
|
|
565
|
|
|
—
|
|
|
565
|
|
|||||
Equity
|
|
1,395,359
|
|
|
1,333,701
|
|
|
598,964
|
|
|
(1,932,103
|
)
|
|
1,395,921
|
|
|||||
Total liabilities and equity
|
|
$
|
1,835,893
|
|
|
$
|
2,104,252
|
|
|
$
|
719,651
|
|
|
$
|
(2,438,168
|
)
|
|
$
|
2,221,628
|
|
Condensed consolidating statements of cash flows
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine months ended September 30, 2015
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Cash flows from (used in) operating activities
|
|
$
|
(6,543
|
)
|
|
$
|
79,698
|
|
|
$
|
44,551
|
|
|
$
|
—
|
|
|
$
|
117,706
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition of businesses, net of cash acquired
|
|
—
|
|
|
(60,836
|
)
|
|
—
|
|
|
—
|
|
|
(60,836
|
)
|
|||||
Capital expenditures for property and equipment
|
|
—
|
|
|
(19,858
|
)
|
|
(8,188
|
)
|
|
—
|
|
|
(28,046
|
)
|
|||||
Long-term loans and advances to affiliates
|
|
27,719
|
|
|
40,544
|
|
|
—
|
|
|
(68,263
|
)
|
|
—
|
|
|||||
Other
|
|
—
|
|
|
992
|
|
|
707
|
|
|
—
|
|
|
1,699
|
|
|||||
Net cash provided by (used in) investing activities
|
|
$
|
27,719
|
|
|
$
|
(39,158
|
)
|
|
$
|
(7,481
|
)
|
|
$
|
(68,263
|
)
|
|
$
|
(87,183
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings (repayment) of long-term debt
|
|
(25,305
|
)
|
|
(723
|
)
|
|
(14
|
)
|
|
—
|
|
|
(26,042
|
)
|
|||||
Long-term loans and advances to affiliates
|
|
—
|
|
|
(27,719
|
)
|
|
(40,544
|
)
|
|
68,263
|
|
|
—
|
|
|||||
Other
|
|
(1,422
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,422
|
)
|
|||||
Net cash provided by (used in) financing activities
|
|
$
|
(26,727
|
)
|
|
$
|
(28,442
|
)
|
|
$
|
(40,558
|
)
|
|
$
|
68,263
|
|
|
$
|
(27,464
|
)
|
Effect of exchange rate changes on cash
|
|
—
|
|
|
—
|
|
|
(3,453
|
)
|
|
—
|
|
|
(3,453
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
|
(5,551
|
)
|
|
12,098
|
|
|
(6,941
|
)
|
|
—
|
|
|
(394
|
)
|
|||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning of period
|
|
5,551
|
|
|
4,006
|
|
|
67,022
|
|
|
—
|
|
|
76,579
|
|
|||||
End of period
|
|
$
|
—
|
|
|
$
|
16,104
|
|
|
$
|
60,081
|
|
|
$
|
—
|
|
|
$
|
76,185
|
|
Condensed consolidating statements of cash flows
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended September 30, 2014
|
||||||||||||||||||
|
|
FET (Parent)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
||||||||||
Cash flows from (used in) operating activities
|
|
$
|
(6,101
|
)
|
|
$
|
120,323
|
|
|
$
|
65,531
|
|
|
$
|
—
|
|
|
$
|
179,753
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition of businesses, net of cash acquired
|
|
—
|
|
|
—
|
|
|
(38,289
|
)
|
|
—
|
|
|
(38,289
|
)
|
|||||
Capital expenditures for property and equipment
|
|
—
|
|
|
(30,808
|
)
|
|
(9,124
|
)
|
|
—
|
|
|
(39,932
|
)
|
|||||
Long-term loans and advances to affiliates
|
|
88,410
|
|
|
—
|
|
|
—
|
|
|
(88,410
|
)
|
|
—
|
|
|||||
Other
|
|
—
|
|
|
8,421
|
|
|
314
|
|
|
—
|
|
|
8,735
|
|
|||||
Net cash provided by (used in) investing activities
|
|
$
|
88,410
|
|
|
$
|
(22,387
|
)
|
|
$
|
(47,099
|
)
|
|
$
|
(88,410
|
)
|
|
$
|
(69,486
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayment of long-term debt
|
|
(91,307
|
)
|
|
(328
|
)
|
|
(125
|
)
|
|
—
|
|
|
(91,760
|
)
|
|||||
Long-term loans and advances to affiliates
|
|
—
|
|
|
(92,478
|
)
|
|
4,068
|
|
|
88,410
|
|
|
—
|
|
|||||
Other
|
|
8,998
|
|
|
7,291
|
|
|
—
|
|
|
—
|
|
|
16,289
|
|
|||||
Net cash provided by (used in) financing activities
|
|
$
|
(82,309
|
)
|
|
$
|
(85,515
|
)
|
|
$
|
3,943
|
|
|
$
|
88,410
|
|
|
$
|
(75,471
|
)
|
Effect of exchange rate changes on cash
|
|
—
|
|
|
—
|
|
|
(294
|
)
|
|
—
|
|
|
(294
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
|
—
|
|
|
12,421
|
|
|
22,081
|
|
|
—
|
|
|
34,502
|
|
|||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning of period
|
|
—
|
|
|
—
|
|
|
39,582
|
|
|
—
|
|
|
39,582
|
|
|||||
End of period
|
|
$
|
—
|
|
|
$
|
12,421
|
|
|
$
|
61,663
|
|
|
$
|
—
|
|
|
$
|
74,084
|
|
•
|
Drilling & Subsea segment
. We design and manufacture products and provide related services to the subsea, drilling, well construction, completion and intervention markets. Through this segment, we offer subsea technologies, including robotic vehicles and other capital equipment, specialty components and tooling, a broad suite of complementary subsea technical services and rental items, and applied products for subsea pipelines; drilling technologies, including capital equipment and a broad line of products consumed in the drilling and well intervention process; and downhole technologies, including cementing and casing tools, completion products, and a range of downhole protection solutions.
|
•
|
Production & Infrastructure segment
. We design and manufacture products and provide related equipment and services to the well stimulation, production and infrastructure markets. Through this segment, we supply flow equipment, including pumps and well stimulation consumable products and related recertification and refurbishment services; production equipment, including well site production equipment and process equipment; and valve solutions, which includes a broad range of industrial and process valves.
|
|
|
Three months ended
|
||||||||||
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||
|
|
2015
|
|
2015
|
|
2014
|
||||||
Average global oil, $/bbl
|
|
|
|
|
|
|
||||||
West Texas Intermediate
|
|
$
|
46.53
|
|
|
$
|
57.85
|
|
|
$
|
91.16
|
|
United Kingdom Brent
|
|
$
|
50.54
|
|
|
$
|
61.65
|
|
|
$
|
94.87
|
|
|
|
|
|
|
|
|
||||||
Average North American Natural Gas, $/Mcf
|
|
|
|
|
|
|
||||||
Henry Hub
|
|
$
|
2.76
|
|
|
$
|
2.75
|
|
|
$
|
4.12
|
|
|
|
Three months ended
|
|||||||
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|||
|
|
2015
|
|
2015
|
|
2014
|
|||
Active Rigs by Location
|
|
|
|
|
|
|
|||
United States
|
|
866
|
|
|
907
|
|
|
1,903
|
|
Canada
|
|
188
|
|
|
98
|
|
|
386
|
|
International
|
|
1,131
|
|
|
1,169
|
|
|
1,348
|
|
Global Active Rigs
|
|
2,185
|
|
|
2,174
|
|
|
3,637
|
|
|
|
|
|
|
|
|
|||
Land vs. Offshore Rigs
|
|
|
|
|
|
|
|||
Land
|
|
1,883
|
|
|
1,853
|
|
|
3,245
|
|
Offshore
|
|
302
|
|
|
321
|
|
|
392
|
|
Global Active Rigs
|
|
2,185
|
|
|
2,174
|
|
|
3,637
|
|
|
|
|
|
|
|
|
|||
U.S. Commodity Target
|
|
|
|
|
|
|
|||
Oil/Gas
|
|
657
|
|
|
681
|
|
|
1,577
|
|
Gas
|
|
208
|
|
|
223
|
|
|
324
|
|
Unclassified
|
|
1
|
|
|
3
|
|
|
2
|
|
Total U.S. Active Rigs
|
|
866
|
|
|
907
|
|
|
1,903
|
|
|
|
|
|
|
|
|
|||
U.S. Well Path
|
|
|
|
|
|
|
|||
Horizontal
|
|
658
|
|
|
701
|
|
|
1,314
|
|
Vertical
|
|
123
|
|
|
114
|
|
|
372
|
|
Directional
|
|
85
|
|
|
92
|
|
|
217
|
|
Total U.S. Active Rigs
|
|
866
|
|
|
907
|
|
|
1,903
|
|
(in millions of dollars)
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Orders:
|
|
|
|
|
|
|
|
||||||||
Drilling & Subsea
|
$
|
106.1
|
|
|
$
|
323.9
|
|
|
$
|
381.3
|
|
|
$
|
955.0
|
|
Production & Infrastructure
|
106.9
|
|
|
171.3
|
|
|
317.7
|
|
|
470.6
|
|
||||
Total Orders
|
$
|
213.0
|
|
|
$
|
495.2
|
|
|
$
|
699.0
|
|
|
$
|
1,425.6
|
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
Net cash provided by operating activities
|
$
|
117.7
|
|
|
$
|
179.8
|
|
Net cash used in investing activities
|
(87.2
|
)
|
|
(69.5
|
)
|
||
Net cash used in financing activities
|
(27.5
|
)
|
|
(75.5
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
$
|
(0.4
|
)
|
|
$
|
34.5
|
|
Period
|
|
Total number of shares purchased (a)
|
|
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, 2015 - July 31, 2015
|
|
2,470
|
|
|
$
|
19.30
|
|
|
—
|
|
|
$
|
49,752
|
|
August 1, 2015 - August 31, 2015
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
September 1, 2015 - September 30, 2015
|
|
308
|
|
|
$
|
13.73
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
2,778
|
|
|
$
|
18.68
|
|
|
—
|
|
|
$
|
49,752
|
|
Exhibit
|
|
|
Number
|
|
DESCRIPTION
|
10.1*
|
—
|
Form of Restricted Stock Unit Agreement - Three Year Cliff Vesting (Employees and Consultants).
|
|
|
|
10.2*
|
—
|
Form of Nonstatutory Stock Option Agreement - Three Year Cliff Vesting (Employees and Consultants).
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18.1**
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—
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Letter Regarding Change in Accounting Principles
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31.1*
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—
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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31.2*
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—
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Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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32.1**
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—
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Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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32.2**
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—
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Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101.INS*
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—
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XBRL Instance Document.
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101.SCH*
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—
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XBRL Taxonomy Extension Schema Document.
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101.CAL*
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—
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XBRL Taxonomy Extension Calculation Linkbase Document.
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101.LAB*
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—
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XBRL Taxonomy Extension Label Linkbase Document.
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101.PRE*
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—
|
XBRL Taxonomy Extension Presentation Linkbase Document.
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101.DEF*
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—
|
XBRL Taxonomy Extension Definition Linkbase Document.
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FORUM ENERGY TECHNOLOGIES, INC.
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||
Date:
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October 30, 2015
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By:
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/s/ James W. Harris
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James W. Harris
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Executive Vice President and Chief Financial Officer
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(As Duly Authorized Officer and Principal Financial Officer)
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By:
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/s/ Tylar K. Schmitt
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Tylar K. Schmitt
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Vice President and Chief Accounting Officer
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(As Duly Authorized Officer and Principal Accounting Officer)
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1.
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I have reviewed this
quarterly report on Form 10-Q
of Forum Energy Technologies, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting for the registrant and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
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October 30, 2015
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By:
/s/ C. Christopher Gaut
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|
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C. Christopher Gaut
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Chief Executive Officer
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1.
|
I have reviewed this
quarterly report on Form 10-Q
of Forum Energy Technologies, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
October 30, 2015
|
|
By:
_/s/ James W. Harris
_________________
|
|
|
|
James W. Harris
|
|
|
|
Chief Financial Officer
|
Dated:
|
October 30, 2015
|
|
By:
/s/ C. Christopher Gaut
|
|
|
|
C. Christopher Gaut
|
|
|
|
Chief Executive Officer
|
Dated:
|
October 30, 2015
|
|
By:
/s/ James W. Harris
|
|
|
|
James W. Harris
|
|
|
|
Chief Financial Officer
|