Frank’s International N.V. (NYSE: FI) (the “Company” or “FI”) today reported revenues of $270.1 million and net income from continuing operations of $59.5 million for the three months ended September 30, 2013. Diluted earnings per share was $0.29 with weighted average shares outstanding of 190.4 million. Adjusted EBITDA was $101.3 million, which includes a non-cash bad debt expense of $8.0 million.
Third quarter results were negatively impacted by $2.4 million, or $0.01 per diluted share, in nonrecurring charges related to the Company’s recent initial public offering (“IPO”), as well as an $8.0 million, or $0.04 per diluted share, increase in bad debt expense in FI’s Latin American region. The Tubular Sales segment, formerly our Pipe and Products segment, was adversely affected by an increase in deferred revenue relating primarily to one customer’s paid, but undelivered order.
“Frank’s continues to be well positioned in our key markets and our outlook for the company is strong. We strive to maintain or increase market share where it makes financial sense,” said D. Keith Mosing, Frank’s International’s Chairman, Chief Executive Officer and President. “We see continued increases in offshore rig counts globally, especially in the ultra-deep water segment which is more complex and technically demanding. For our onshore markets, rig counts are decreasing leading to a more competitive environment with increased pricing pressure. Lastly, we believe our Tubular Sales business is positioned for strong growth as customers are looking at development opportunities for 2014.
“As we look towards the end of the year, we expect our annual revenues to be flat when compared to our record year in 2012, in which we grew 43 percent. Increases in offshore drilling activity that we had anticipated for the third and fourth quarters along with declines in our U.S. onshore business have lowered our expectations for the near-term.”