Frank’s International N.V. (NYSE: FI) (the “Company”) today reported revenues of $272.9 million and net income of $50.0 million for the three months ended June 30, 2014. Diluted earnings per share for the second quarter were $0.23, with weighted average shares outstanding of 207.8 million. Adjusted EBITDA for the quarter was $103.2 million.
Results for the quarter were reduced by an out-of-period cumulative non-cash adjustment for share-based compensation of $7.5 million. In addition, the in-period second quarter share-based compensation expense was $7.8 million instead of the previous expectation of $5.0 million. The out-of-period adjustment and increase in quarterly share-based compensation expense was due to the Company determining that certain retirement provisions in the restricted stock unit agreements under its 2013 Long-Term Incentive Plan required accelerated recognition of compensation expense in connection with the Company’s initial public offering. Total share-based compensation expense, which is accounted for within general and administrative expenses, for the quarter was $15.3 million or $0.07 per diluted share.
D. Keith Mosing, Frank’s International’s Chairman, Chief Executive Officer and President, said, “Frank’s International has doubled its quarterly dividend to $0.15 per share. Our tremendous free cash flow positions us to return cash to shareholders while continuing to pursue growth opportunities globally, both organically and through acquisition.”
Mr. Mosing continued, “We remain confident about our opportunities around the globe. Our International Services segment delivered 9% sequential revenue growth in the second quarter and is expected to grow revenue at least 10% this year. Our U.S. land business, which has previously been in decline, had 9% sequential revenue growth and is expected to grow sequentially the rest of the year. Lastly, we continue to be selected for work as we signed several meaningful contracts this quarter that further strengthen our pipeline of work for the remainder of 2014 and well into 2015 and 2016.”