Frank's International (FI) Reports In-Line Q4 EPS, Revenues Beat

Frank's International (NYSE: FI) reported Q4 EPS of ($0.06), in-line with the analyst estimate of ($0.06). Revenue for the quarter came in at $145.9 million versus the consensus estimate of $138.48 million.

• Generated total revenue of $145.9 million, up 13.1% from $129.0 million for the third quarter of 2018 and 23.3% from $118.3 million for the fourth quarter of 2017.
• Reported a net loss of $15.9 million, or $0.07 per diluted share, as compared to a net loss of $7.0 million, or $0.03 per diluted share, for the third quarter of 2018, and a net loss of $109.1 million, or $0.49 per diluted share, for the fourth quarter of 2017.
• Adjusted net loss was $14.1 million, or $0.06 per diluted share, for the three months ended December 31, 2018, excluding severance and other charges, net of tax, as compared to an adjusted net loss of $11.5 million, or $0.05 per diluted share, for the three months ended September 30, 2018, excluding severance and other credits, net of tax, and an adjusted net loss of $58.6 million, or $0.26 per diluted share, for the three months ended December 31, 2017, excluding severance and other charges, net of tax.
• Adjusted EBITDA increased to $12.8 million, or 10.4%, from $11.6 million for the third quarter of 2018, and was a substantial improvement from a loss of $1.4 million for the fourth quarter of 2017.

“The fourth quarter of 2018 marked the conclusion of a successful year in which we increased market penetration, reduced our cost structure and capitalized on improved industry fundamentals to grow revenue across all of our segments,” said Michael Kearney, the Company’s Chairman, President and Chief Executive Officer. “I want to once again thank all of our employees for their hard work and dedication during this turnaround year, the result of which was a more than a 500-basis points improvement in our adjusted EBITDA margin from the full year of 2017. Driving this improvement was an approximate 40% incremental margin.”

“Our solid fourth quarter results were highlighted by strong demand for our higher margin service offerings and increased activity in a number of international regions, most notably Africa, the Middle East and Europe,” continued Mr. Kearney. “In the U.S. we saw growth in both our onshore and offshore operations, with the majority of the sequential quarterly revenue increase primarily associated with our focused efforts to capture additional market share in the Gulf of Mexico. Also benefiting top-line results was our Tubular Sales segment posting its highest level of quarterly sales for the year.”

Mr. Kearney concluded, “We have been pleased to see the improvement in oil prices since the beginning of 2019 and remain optimistic of a sustained, but gradual, overall market recovery. While we continue to anticipate growing demand for our U.S. onshore services and products, we expect the primary driver of our growth in 2019 to come from our international operations where we have an established footprint. In these regions, we are seeing increased tendering activity and, supported by our solid financial health, believe we are in a strong position to capture additional market share given our unique ability to develop new or enhanced technologies designed to solve complex customer issues. This has been a hallmark for Frank’s for the past 80 years, and will continue to differentiate the Company moving forward.”

For earnings history and earnings-related data on Frank's International (FI) click here.

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