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Forbes Energy Services Reports 2012 Second Quarter Results

Stocks in this article: FES FRB

The Company's financial statements and management's discussion and analysis of financial condition and results of operations can be found in the Form 10-Q, which is being submitted for filing today with the Securities and Exchange Commission and posted on the Company's website.

This press release also contains references to the non-GAAP financial measure of Adjusted EBITDA from U.S. Operations.  For a reconciliation of such measure to net income, please see the table at the end of this release. Management's opinion regarding the usefulness of Adjusted EBITDA from U.S. Operations to investors and a description of the ways in which management uses such measure can be found on the "Investor Relations" page of the Company's website.

Forbes Energy Services Ltd.
Selected Statement of Operations Data
(Unaudited)
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2012 2011 2012 2011
         
Revenues        
Well servicing  $ 51,314,385  $ 42,034,263  $ 103,554,199  $ 78,448,693
Fluid logistics and other  68,470,373  68,783,378  147,715,139  127,030,201
Total revenues  119,784,758  110,817,641  251,269,338  205,478,894
         
Expenses        
Well servicing  37,452,713  34,387,657  76,541,120  64,149,205
Fluid logistics and other  49,354,319  50,690,794  104,210,101  92,913,371
General and administrative  8,074,710  13,106,901  18,744,461  18,796,604
Depreciation and amortization  12,465,442  9,541,539  23,886,158  19,216,212
Total expenses  107,347,184  107,726,891  223,381,840  195,075,392
Operating income  12,437,574  3,090,750  27,887,498  10,403,502
         
Other income (expense)        
Interest expense, net  (6,840,816)  (6,799,861)  (13,713,000)  (13,728,120)
Loss on early extinguishment of debt  --   (35,414,833)  --   (35,414,833)
Other income, net  --   68,204  --   69,104
Income (loss) from continuing operations before taxes  5,596,758  (39,055,740)  14,174,498  (38,670,347)
Income tax expense (benefit)  2,950,257  (12,489,453)  6,317,008  (12,191,067)
Income (loss) from continuing operations  2,646,501  (26,566,287)  7,857,490  (26,479,280)
Income from discontinued operations, net of tax expense (benefit) of ($0.4 million), $1.2 million, $0.4 million, $2.0 million respectively  (1,626,158)  1,871,585  (494,537)  3,689,096
Net income (loss)  1,020,343  (24,694,702)  7,362,953  (22,790,184)
Preferred shares dividends  (194,139)  1,084,271  (388,278)  201,687
Net income (loss) attributable to common shareholders  $ 826,204  $ (23,610,431)  $ 6,974,675  $ (22,588,497)
         
Income (loss) per share of common stock from continuing operations        
Basic  $ 0.12  $ (1.22)  $ 0.36  $ (1.26)
Diluted  $ 0.10  $ (1.22)  $ 0.30  $ (1.26)
Income (loss) per share of common stock from discontinued operations        
Basic  $ (0.08)  $ 0.09  $ (0.02)  $ 0.18
Diluted  $ (0.06)  $ 0.09  $ (0.02)  $ 0.18
Income (loss) per share of common stock        
Basic  $ 0.04  $ (1.13)  $ 0.33  $ (1.08)
Diluted  $ 0.04  $ (1.13)  $ 0.28  $ (1.08)
Weighted average number of shares outstanding        
Basic  21,055,642  20,918,400  21,020,628  20,918,400
Diluted  26,625,452  20,918,400  26,621,044  20,918,400
         
 Forbes Energy Services Ltd.         
 Selected Balance Sheet Data         
 (Unaudited)         
         
  June 30,  2012  December 31,  2011     
 Cash   $ 9,806,995  $ 36,600,091    
 Accounts receivable, net   105,231,897  132,024,147    
 Working Capital   62,878,559  86,765,717    
 Other intangibles, net   29,445,791  30,876,389    
 Total assets   535,446,160  550,423,053    
 Total debt   297,319,866  296,150,274    
 Deferred tax liability   33,914,414  27,491,812    
 Shareholders' equity   136,164,880  125,780,359    
         
Forbes Energy Services Ltd.        
Selected Operating Data        
         
   Three Months Ended June 30,   Six Months Ended June 30, 
   2012   2011   2012   2011 
 Working days   65  63  129  127
         
 Rig hours   114,308  97,641  231,941  187,256
         
 Truck hours   422,248  367,397  865,599  680,842
         
 Forbes Energy Services Ltd.         
 Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA         
 (Unaudited)         
         
   Three Months Ended June 30,   Six Months Ended June 30, 
   2012   2011   2012   2011 
Net Income (loss) from continuing operations  $ 2,646,501  $ (26,566,287)  $ 7,857,490  $ (26,479,280)
Depreciation and amortization  12,465,442  9,541,539  23,886,158  19,216,212
Interest expense, net  6,840,816  6,799,861  13,713,000  13,728,120
Income tax expense (benefit)  2,950,257  (12,489,453)  6,317,008  (12,191,067)
Share-based compensation  1,870,606  570,402  3,637,608  1,348,278
Loss on early extinguishment of debt  --   35,414,833  --   35,414,833
Litigation settlement and associated legal fees  --   6,784,164  --   6,784,164
Adjusted EBITDA from U. S. Operations   $ 26,773,622  $ 20,055,059  $ 55,411,264  $ 37,821,260
CONTACT: Forbes Energy Services Ltd.
         L. Melvin Cooper, SVP & CFO
         361-664-0549

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