HOUSTON, Aug. 08, 2018 (GLOBE NEWSWIRE) -- Frank’s International N.V. (NYSE: FI) today reported revenues of $132.1 million and a net loss of $25.8 million, or $0.12 per share, for the three months ended June 30, 2018. Adjusted EBITDA for the quarter was $11.0 million, or 8.3% of revenue.

“The second quarter results are another step forward for Frank’s on our path to sustained, profitable growth,” said Michael Kearney, the Company’s Chairman, President and Chief Executive Officer. “We are experiencing success in winning new business in our tubular running services business with our technology and safe, reliable service in the U.S. and abroad. We are also seeing increased adoption of the Blackhawk products and services, as well as our portfolio of drilling technologies, particularly in international markets.”

“While the shorter duration of some new contracts for our services is leading to ebbs and flows in our revenue and margins, we are optimistic of a sustained positive trajectory of the market overall. We remain committed to achieving our goal of optimizing our tubular services business, controlling our costs to improve profitability and the continued expansion of our Blackhawk segment to new international markets.”

Financial measures not presented in accordance with U.S. generally accepted accounting principles (“GAAP”) are defined and reconciled to their most directly comparable GAAP measures below. Please see “Use of Non-GAAP Financial Measures” and the reconciliations to the nearest comparable GAAP measures.

Segment Results

International Services
International Services revenue was $59.4 million in the second quarter of 2018, up $10.6 million compared to the first quarter of 2018, and up $5.9 million compared to the second quarter of 2017. Positive sequential revenues were driven by commencement of new projects in Latin America and Europe.

Segment adjusted EBITDA for the second quarter of 2018 of $13.5 million, or 22.7% of revenue, was up $10.9 million compared to the first quarter of 2018, and up $4.4 million compared to the second quarter of 2017. Adjusted EBITDA was higher sequentially due to increased activity and improved service mix from short-term call out work. Higher year-over-year adjusted EBITDA was primarily driven by increased activity and work scope in Canada and the Middle East.

U.S. Services
U.S. Services revenue was $35.1 million in the second quarter of 2018, up 7.8% compared to the first quarter of 2018, and up 17.5% compared to the second quarter of 2017.

For the second quarter of 2018, onshore revenue within the U.S. Services segment of $17.1 million was up $1.8 million compared to the first quarter of 2018, and up $4.3 million compared to the second quarter of 2017. Sequential and year-over-year revenue increases were a result of increased rig activity and improved pricing of services. The second quarter of 2018 represented the eighth consecutive quarter of increased revenue in the U.S. onshore business.

Offshore revenue within the U.S. Services segment of $18.0 million for the second quarter of 2018 was up $0.7 million compared to the first quarter of 2018, and up $0.9 million compared to the second quarter of 2017. Revenue increased sequentially and year-over-year due to increased service activity and market share in the U.S. Gulf of Mexico.

Segment adjusted EBITDA for the second quarter of 2018 was a loss of $6.4 million, an improvement of $2.9 million, compared to both the first quarter of 2018, as well as the second quarter of 2017. Adjusted EBITDA was higher sequentially due to increased margin contribution from the U.S. onshore and offshore businesses driven by improved pricing and market share, as well as some lower corporate costs which are included in this segment.

Tubular Sales
Tubular Sales revenue was $14.1 million in the second quarter of 2018, down $1.2 million compared to the first quarter of 2018, and down $2.1 million compared to the second quarter of 2017. Revenue experienced declines sequentially due to changes in customer rig schedules.

Segment adjusted EBITDA for the second quarter of 2018 was $0.2 million, or 1.2% of revenue, down $2.0 million compared to the first quarter of 2018, and down $0.6 million compared to the second quarter of 2017. Adjusted EBITDA and adjusted EBTIDA margin were lower sequentially due to the decline in sales volumes and higher Company manufacturing costs, which are included in this segment. Adjusted EBITDA was lower year-over-year due to lower revenues.

Blackhawk
Blackhawk revenue for the second quarter of 2018 was $23.5 million, up $4.5 million compared to the first quarter of 2018, and up $5.4 million compared to the second quarter of 2017. Revenue was higher sequentially and year-over-year primarily due to increases resulting from international expansion efforts combined with increased U.S. onshore services and product sales.

Segment adjusted EBITDA for the second quarter of 2018 was $3.7 million, or 15.7% of revenue, up $1.3 million compared to the first quarter of 2018, and up $0.7 million compared to the second quarter of 2017. Adjusted EBITDA was higher sequentially due to increased margin contribution from higher international services and offshore well construction services. Adjusted EBITDA was higher year-over-year primarily due to higher international and U.S. Gulf of Mexico offshore well construction revenue.

Service revenue for the second quarter of 2018 was $11.2 million and products revenue was $12.3 million. Additionally, Blackhawk reported its highest international revenues in the second quarter of 2018 since the acquisition in the fourth quarter of 2016.

Capital Expenditures and Balance Sheet

Cash expenditures related to property, plant and equipment and intangibles were $4.9 million for the second quarter of 2018 and $11.3 million for the six months ended June 30, 2018. The Company expects total capital expenditures to be $40 million for 2018. The Company’s consolidated cash and short-term investments balance at June 30, 2018 was $245.2 million compared to $294.0 million at December 31, 2017.

About Frank’s International

Frank’s International N.V. is a global oil services company that provides a broad and comprehensive range of highly engineered tubular running services, tubular fabrication, and specialty well construction and well intervention solutions with a focus on complex and technically demanding wells. Founded in 1938, Frank’s has approximately 2,900 employees and provides services to leading exploration and production companies in both onshore and offshore environments in approximately 50 countries on six continents. The Company’s common stock is traded on the NYSE under the symbol “FI.” Additional information is available on the Company’s website, www.franksinternational.com.