|Bid||2.7500 x 900|
|Ask||0.0000 x 2900|
|Day's Range||2.6900 - 2.9100|
|52 Week Range||1.6600 - 5.7600|
|Beta (5Y Monthly)||1.23|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov. 03, 2020 - Nov. 09, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Aug. 29, 2017|
|1y Target Est||3.00|
Image source: The Motley Fool. Frank's International N.V. (NYSE: FI)Q2 2020 Earnings CallAug 4, 2020, 11:00 a.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorWelcome to the Q2 2020 Frank's International Earnings Conference Call.
Frank's International (FI) delivered earnings and revenue surprises of -44.44% and -8.16%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
HOUSTON, Aug. 04, 2020 (GLOBE NEWSWIRE) -- Frank’s International N.V. (NYSE: FI) (the “Company” or “Frank’s”) today reported financial and operational results for the three and six months ended June 30, 2020. Second Quarter 2020 Financial Highlights * Second quarter net loss of $34.2 million improved over prior period resulting from market-related impairments taken in the first quarter of 2020. * Second quarter revenue of $86.1 million and Adjusted EBITDA of ($1.7) million reflecting decremental margin of 24% driven by cost reductions. * Second quarter cash flows from operating activities of $26.4 million and free cash flow of $16.1 million both showing a significant improvement from the prior quarter. * Actions both completed and in progress expanding previously announced cost reduction initiatives, projecting an approximate 25% year over year reduction in costs.“The second quarter reflects the sudden and historic downturn in our industry created by the Covid-19 pandemic and highly volatile and lower oil prices. During the quarter, we saw some of our highest producing geographies experience reductions in rig activity of greater than 80% resulting in a significant revenue decline. We communicated our aggressive cost cutting measures last quarter, and I am very pleased that Frank’s management and our entire employee base has executed various cost reduction plans expeditiously, the results of which are reflected in our reported results. While we cannot control the operational plans of our customers and the resulting short term revenue swings we experience, we can and have controlled our costs during the quarter, holding decremental margins to less than 25%. This was made possible through the effective management of a wide range of cost control measures that we accelerated and intensified over the past quarter. Cost containment and efficiency is not a periodic exercise but something we are practicing on a daily basis at Frank’s. The entire Frank’s team remains focused on exploring opportunities to work more efficiently in the future and reset our cost base,” said Michael Kearney, the Company’s Chairman, President and Chief Executive Officer.“We are also focused on maintaining a strong balance sheet and cash position. Our progress in this area is reflected by the resurgence in our cash balance from year end levels and strong free cash flow during the quarter.”Mr. Kearney continued, “Our customers and their respective drilling programs continue to show impacts from Covid-19 shutdowns due to logistics issues, as well as delays in the start-up of new drilling programs. We are seeing signs of stabilization, with some rigs recommencing work in the third quarter and others planned to begin programs during the fourth quarter. As we navigate the Covid-19 pandemic, protecting the health and safety of our employees, customers and communities remains of the utmost importance, with our cross-functional Covid-19 task force overseeing ongoing, localized risk assessment and modified work protocols.“Frank’s continues to generate value for our customers by offering technological solutions that safely reduce the time to drill, case and complete wells. Our multi-product line solutions add value in the most extreme applications, most recently with a joint Cementing and TRS operation on behalf of a major operator in the Gulf of Mexico. Following intensive pre-job technical analysis, the ultra-heavy landing string installation utilized multiple Frank’s load bearing technologies. The combined solutions facilitated a safe and efficient operation, while achieving a customer hook load record, adding to the Frank’s history of record hook load achievements. “Frank’s also recently introduced the Caseless Insertable™ Float System, a new cementing technology suitable for a float collar, landing collar and guide or float shoe assembly. This versatile, patented solution offers a modular design and threadless interface that can be configured to a wide range of operational requirements, eliminating specialized premium connections, manufacturing lead time and the costs associated with transporting and storing excess inventory. It has performed successfully in both offshore and onshore applications, most recently on behalf of a major operator in the U.S. onshore market. “In summary, we have aggressively responded to recent market shocks and continued to place our strongest focus on delivering exemplary service to our customers. Our employees have demonstrated their commitment to excellence and this organization, and we are poised to weather these conditions and position ourselves well for an eventual recovery,” concluded Mr. Kearney.Segment ResultsTubular Running ServicesTubular Running Services revenue was $62.3 million for the second quarter of 2020, compared to $89.5 million in the first quarter of 2020, and $106.6 million for the second quarter of 2019. The decrease in sequential revenue, which is down 30% from the first quarter and 42% from the prior year quarter, was primarily driven by activity disruptions brought about from Covid-19 and customer spending cuts in response to falling oil prices, with the largest impacts felt in the U.S. onshore and offshore markets. In Africa, personnel logistics issues and reduced activity levels, also as a consequence of Covid-19, further contributed to the decline.Segment adjusted EBITDA for the second quarter of 2020 was $4.1 million, or 7% of revenue, compared to $13.3 million, or 15% of revenue, for the first quarter of 2020 and $25.4 million, or 24% of revenue, for the second quarter of 2019. The adjusted EBITDA deterioration is related to the revenue declines experienced due to current market conditions, especially in U.S. onshore and offshore markets as well as in Africa.TubularsTubulars revenue for the second quarter of 2020 was $8.7 million, compared to $12.5 million for the first quarter of 2020, and $22.3 million for the second quarter of 2019. The sequential decrease was the result of lower demand for the Company’s tubular products in light of reduced drilling program activity.Segment adjusted EBITDA for the second quarter of 2020 was $0.7 million, or 8% of revenue, compared to $1.4 million, or 11% of revenue, for the first quarter of 2020 and $3.9 million, or 18% of revenue for the second quarter of 2019. The sequential decrease was driven by lower revenue levels.Cementing EquipmentCementing Equipment revenue was $15.0 million in the second quarter of 2020, compared to $21.5 million in the first quarter of 2020 and $26.7 million for the second quarter of 2019. The sequential decline was driven by significantly reduced customer activity in the U.S. onshore and offshore market. The year-over-year decline is primarily related to the decline in the U.S. onshore market which began during the second half of 2019.Segment adjusted EBITDA for the second quarter of 2020 was $0.9 million, or 6% of revenue, compared to $2.5 million, or 12% of revenue, for the first quarter of 2020 and $3.0 million, or 11% of revenue, for the second quarter of 2019. Lower adjusted EBITDA was driven by revenue declines brought about by market contractions in North and South America.Profit Improvement Actions UpdateAs an update to the progress made in reducing the cost base of the Company, Frank’s now anticipates realizing reductions to its cost structure of at least 25% year over year including both operational and support costs. The cost reductions achieved specific to Company support costs are now estimated to yield savings in excess of $50 million in 2020. Compensation cost estimates are expected to be reduced by 30% year over year. The Company intends to continue pursuing additional efficiencies in the coming quarters that are expected to result in further savings.Other Financial InformationCash expenditures related to property, plant and equipment and intangibles were $10.3 million for the second quarter of 2020, with the significant majority of this spend related to in-flight capital projects approved and initiated during 2019. The Company estimates total capital expenditures for the full year 2020 to range between $25.0 million and $30.0 million.As of June 30, 2020, the Company’s consolidated cash and cash equivalents were $192.9 million compared to $170.9 million as of the prior quarter, an improvement of $22 million. The Company had no outstanding debt as of June 30, 2020 nor as of the prior quarter. Total liquidity at June 30, 2020 was $218 million, including cash and cash equivalents, and $25 million available under the Company’s Credit Facility. For the second quarter of 2020, the Company generated operating cash flow of $26.4 million and free cash flow of $16.1 million. This was produced from both improved customer collections in the quarter and benefits of cost reductions.Income tax expense for the quarter was $9.0 million compared to an income tax benefit in the first quarter of $15.6 million largely attributable to credits resulting from governmental and regulatory support programs.The financial measures provided that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”) are defined and reconciled to their most directly comparable GAAP measures. Please see “Use of Non-GAAP Financial Measures” and the reconciliations to the nearest comparable GAAP measures.Conference CallThe Company will host a conference call to discuss second quarter 2020 results on Tuesday, August 4, 2020 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Participants may join the conference call by dialing (800) 708-4540 or (847) 619-6397. The conference call ID number is 49849977. To listen via live webcast, please visit the Investor Relations section of the Company's website, www.franksinternational.com. A presentation will also be posted on the Company’s website prior to the conference call.An audio replay of the conference call will be available in the Investor Relations section of the Company’s website approximately two hours after the conclusion of the call and remain available for a period of approximately 90 days.About Frank’s InternationalFrank’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 2,700 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.Contact:Melissa Cougle Melissa.Cougle@franksintl.com 281-966-7300 FRANK’S INTERNATIONAL N.V. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2020 2020 2019 2020 2019 Revenue: Services$74,583 $105,083 $127,091 $179,666 $242,497 Products11,518 18,409 28,563 29,927 57,565 Total revenue86,101 123,492 155,654 209,593 300,062 Operating expenses: Cost of revenue, exclusive of depreciation and amortization Services61,051 79,380 85,785 140,431 169,024 Products8,286 13,988 23,475 22,274 43,603 General and administrative expenses22,286 26,683 34,026 48,969 69,437 Depreciation and amortization17,252 19,718 23,913 36,970 49,155 Goodwill impairment— 57,146 — 57,146 — Severance and other charges, net5,162 20,725 815 25,887 1,270 (Gain) loss on disposal of assets(650) 60 154 (590) 381 Operating loss(27,286) (94,208) (12,514) (121,494) (32,808) Other income (expense): Tax receivable agreement (“TRA”) related adjustments— — 220 — 220 Other income, net156 2,026 669 2,182 1,198 Interest income, net178 533 426 711 1,194 Foreign currency gain (loss)1,693 (9,892) (661) (8,199) (178) Total other income (expense)2,027 (7,333) 654 (5,306) 2,434 Loss before income taxes(25,259) (101,541) (11,860) (126,800) (30,374) Income tax expense (benefit)8,986 (15,563) 3,300 (6,577) 13,073 Net loss$(34,245) $(85,978) $(15,160) $(120,223) $(43,447) Loss per common share: Basic and diluted$(0.15) $(0.38) $(0.07) $(0.53) $(0.19) Weighted average common shares outstanding: Basic and diluted225,853 225,505 225,052 225,855 224,854 FRANK’S INTERNATIONAL N.V. SELECTED OPERATING SEGMENT DATA (In thousands) (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2020 2020 2019 2020 2019 Revenue Tubular Running Services$62,327 $89,497 $106,615 $151,824 $204,694 Tubulars8,741 12,542 22,334 21,283 40,991 Cementing Equipment15,033 21,453 26,705 36,486 54,377 Total$86,101 $123,492 $155,654 $209,593 $300,062 Segment Adjusted EBITDA: Tubular Running Services$4,049 $13,305 $25,400 $17,354 $43,135 Tubulars681 1,396 3,934 2,077 8,046 Cementing Equipment886 2,544 3,029 3,430 6,823 Corporate(7,308) (10,186) (15,200) (17,494) (31,183) Total$(1,692) $7,059 $17,163 $5,367 $26,821 FRANK’S INTERNATIONAL N.V. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, December 31, 2020 2019 Assets Current assets: Cash and cash equivalents$192,921 $195,383 Restricted cash1,358 1,357 Accounts receivables, net137,068 166,694 Inventories, net79,857 78,829 Assets held for sale8,732 13,795 Other current assets8,943 10,360 Total current assets428,879 466,418 Property, plant and equipment, net297,794 328,432 Goodwill42,785 99,932 Intangible assets, net9,643 16,971 Deferred tax assets, net15,774 16,590 Operating lease right-of-use assets29,594 32,585 Other assets29,513 33,237 Total assets$853,982 $994,165 Liabilities and Equity Current liabilities: Accounts payable and accrued liabilities$104,022 $120,321 Current portion of operating lease liabilities7,854 7,925 Deferred revenue425 657 Total current liabilities112,301 128,903 Deferred tax liabilities1,503 2,923 Non-current operating lease liabilities22,803 24,969 Other non-current liabilities23,711 27,076 Total liabilities160,318 183,871 Stockholders’ equity: Common stock2,860 2,846 Additional paid-in capital1,082,008 1,075,809 Accumulated deficit(341,349) (220,805) Accumulated other comprehensive loss(30,013) (30,298) Treasury stock(19,842) (17,258) Total stockholders’ equity693,664 810,294 Total liabilities and equity$853,982 $994,165 FRANK’S INTERNATIONAL N.V. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Six Months Ended June 30, 2020 2019 Cash flows from operating activities Net loss$(120,223) $(43,447) Adjustments to reconcile net loss to cash from operating activities Depreciation and amortization36,970 49,155 Equity-based compensation expense5,661 5,591 Goodwill impairment57,146 — Loss on asset impairments and retirements20,532 — Amortization of deferred financing costs194 177 Deferred tax provision (benefit)(1,690) 3,702 Provision for bad debts1,750 85 (Gain) loss on disposal of assets(590) 381 Changes in fair value of investments813 (1,879) Unrealized (gain) loss on derivative instruments— 204 Other(380) (373) Changes in operating assets and liabilities Accounts receivable24,465 (14,334) Inventories(4,539) (2,323) Other current assets2,272 2,063 Other assets390 111 Accounts payable and accrued liabilities(15,187) (17,118) Deferred revenue(226) 22 Other non-current liabilities(3,212) 594 Net cash provided by (used in) operating activities4,146 (17,389) Cash flows from investing activities Purchases of property, plant and equipment and intangibles(20,259) (17,240) Proceeds from sale of assets6,565 260 Purchase of investments— (20,185) Proceeds from sale of investments2,832 31,739 Other(256) — Net cash used in investing activities(11,118) (5,426) Cash flows from financing activities Repayments of borrowings— (3,492) Treasury shares withheld for taxes(1,086) (1,542) Treasury share repurchase(1,498) — Proceeds from the issuance of ESPP shares552 692 Deferred financing costs— (184) Net cash used in financing activities(2,032) (4,526) Effect of exchange rate changes on cash6,543 (416) Net decrease in cash, cash equivalents and restricted cash(2,461) (27,757) Cash, cash equivalents and restricted cash at beginning of period196,740 186,212 Cash, cash equivalents and restricted cash at end of period$194,279 $158,455 Forward Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company’s future business strategy and prospects for growth, cash flows and liquidity, financial strategy, budget, projections and operating results, the amount, nature and timing of capital expenditures, the availability and terms of capital, the level of activity in the oil and gas industry, volatility of oil and gas prices, unique risks associated with offshore operations, political, economic and regulatory uncertainties in international operations, the ability to develop new technologies and products, the ability to protect intellectual property rights, the ability to employ and retain skilled and qualified workers, the level of competition in the Company’s industry, global or national health concerns, including health epidemics, including Covid-19, the continuation of a swift and material decline in global crude oil demand and crude oil prices for an uncertain period of time, the length of time it will take for the United States and the rest of the world to slow the spread of the Covid-19 virus to the point where applicable authorities are comfortable easing current restrictions on various commercial and economic activities, future actions of foreign oil producers such as Saudi Arabia and Russia and the risk that they take actions that will prolong or exacerbate the current over-supply of crude oil, the timing, pace and extent of an economic recovery in the United States and elsewhere, the impact of current and future laws, rulings, governmental regulations, accounting standards and statements, and related interpretations, and other guidance. These statements are based on certain assumptions made by the Company based on management’s experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance.Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC and the additional factors discussed or referenced in the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 that will be filed with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.Use of Non-GAAP Financial MeasuresThis press release and the accompanying schedules include the non-GAAP financial measures of adjusted net loss, adjusted net loss per diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA margin, which may be used periodically by management when discussing the Company’s financial results with investors and analysts. The accompanying schedules of this press release provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. Adjusted net loss, adjusted net loss per diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA margin are presented because management believes these metrics provide additional information relative to the performance of the Company’s business. These metrics are commonly employed by financial analysts and investors to evaluate the operating and financial performance of the Company from period to period and to compare it with the performance of other publicly traded companies within the industry. You should not consider adjusted net loss, adjusted net loss per diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA margin in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Because adjusted net loss, adjusted net loss per diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA margin may be defined differently by other companies in the Company’s industry, the Company’s presentation of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.The Company defines adjusted net loss as net loss before goodwill impairment and severance and other charges, net, net of tax. The Company defines adjusted net loss per share as net loss before goodwill impairment and severance and other charges, net, net of tax, divided by diluted weighted average common shares. The Company defines free cash flow as net cash provided by (used in) operating activities less purchases of property, plant and equipment and intangibles. The Company defines adjusted EBITDA as net income (loss) before interest income, net, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on disposal of assets, foreign currency gain or loss, equity-based compensation, the effects of the tax receivable agreement, unrealized and realized gains or losses and other non-cash adjustments and other charges or credits. The Company uses adjusted EBITDA to assess its financial performance because it allows the Company to compare its operating performance on a consistent basis across periods by removing the effects of its capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), income tax, foreign currency exchange rates and other charges and credits. The Company defines adjusted EBITDA margin as adjusted EBITDA divided by total revenue.Please see the accompanying financial tables for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures. FRANK’S INTERNATIONAL N.V. NON-GAAP FINANCIAL MEASURES AND RECONCILIATION (In thousands) (Unaudited) ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN RECONCILIATION Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2020 2020 2019 2020 2019 Revenue$86,101 $123,492 $155,654 $209,593 $300,062 Net loss$(34,245) $(85,978) $(15,160) $(120,223) $(43,447) Goodwill impairment— 57,146 — 57,146 — Severance and other charges, net5,162 20,725 815 25,887 1,270 Interest income, net(178) (533) (426) (711) (1,194) Depreciation and amortization17,252 19,718 23,913 36,970 49,155 Income tax expense (benefit)8,986 (15,563) 3,300 (6,577) 13,073 (Gain) loss on disposal of assets(650) 60 154 (590) 381 Foreign currency (gain) loss(1,693) 9,892 661 8,199 178 TRA related adjustments— — (220) — (220) Charges and credits (1)3,674 1,592 4,126 5,266 7,625 Adjusted EBITDA$(1,692) $7,059 $17,163 $5,367 $26,821 Adjusted EBITDA margin(2.0)% 5.7 % 11.0 % 2.6 % 8.9 % (1)Comprised of Equity-based compensation expense (for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019: $3,515, $2,146 and $3,017, respectively, and for the six months ended June 30, 2020 and 2019: $5,661 and $5,591, respectively), Unrealized and realized (gains) losses (for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019: $111, $(1,704) and $(383), respectively, and for the six months ended June 30, 2020 and 2019: $(1,593) and $(691), respectively) and Investigation-related matters (for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019: $48, $1,150 and $1,492, respectively, and for the six months ended June 30, 2020 and 2019: $1,198 and $2,725, respectively). FRANK’S INTERNATIONAL N.V. NON-GAAP FINANCIAL MEASURES AND RECONCILIATION (In thousands) (Unaudited) SEGMENT ADJUSTED EBITDA RECONCILIATION Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2020 2020 2019 2020 2019 Segment Adjusted EBITDA: Tubular Running Services$4,049 $13,305 $25,400 $17,354 $43,135 Tubulars681 1,396 3,934 2,077 8,046 Cementing Equipment886 2,544 3,029 3,430 6,823 Corporate(7,308) (10,186) (15,200) (17,494) (31,183) (1,692) 7,059 17,163 5,367 26,821 Goodwill impairment— (57,146) — (57,146) — Severance and other charges, net(5,162) (20,725) (815) (25,887) (1,270) Interest income, net178 533 426 711 1,194 Depreciation and amortization(17,252) (19,718) (23,913) (36,970) (49,155) Income tax (expense) benefit(8,986) 15,563 (3,300) 6,577 (13,073) Gain (loss) on disposal of assets650 (60) (154) 590 (381) Foreign currency gain (loss)1,693 (9,892) (661) (8,199) (178) TRA related adjustments— — 220 — 220 Charges and credits (1)(3,674) (1,592) (4,126) (5,266) (7,625) Net loss$(34,245) $(85,978) $(15,160) $(120,223) $(43,447) (1)Comprised of Equity-based compensation expense (for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019: $3,515, $2,146 and $3,017, respectively, and for the six months ended June 30, 2020 and 2019: $5,661 and $5,591, respectively), Unrealized and realized gains (losses) (for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019: $(111), $1,704 and $383, respectively, and for the six months ended June 30, 2020 and 2019: $1,593 and $691, respectively) and Investigation-related matters (for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019: $48, $1,150 and $1,492, respectively, and for the six months ended June 30, 2020 and 2019: $1,198 and $2,725, respectively). FRANK’S INTERNATIONAL N.V. NON-GAAP FINANCIAL MEASURES AND RECONCILIATION (In thousands) (Unaudited) FREE CASH FLOW RECONCILIATION Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2020 2020 2019 2020 2019 Net cash provided by (used in) operating activities$26,398 $(22,252) $12,381 $4,146 $(17,389) Less: purchases of property, plant and equipment and intangibles10,291 9,968 9,095 20,259 17,240 Free cash flow$16,107 $(32,220) $3,286 $(16,113) $(34,629) FRANK’S INTERNATIONAL N.V. NON-GAAP FINANCIAL MEASURES AND RECONCILIATION (In thousands, except per share amounts) (Unaudited) RECONCILIATION OF ADJUSTED NET LOSS AND ADJUSTED NET LOSS PER DILUTED SHARE Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2020 2020 2019 2020 2019 Net loss$(34,245) $(85,978) $(15,160) $(120,223) $(43,447) Goodwill impairment (net of tax)— 55,740 — 55,740 — Severance and other charges, net (net of tax)4,937 20,355 613 25,292 1,067 Net loss excluding certain items$(29,308) $(9,883) $(14,547) $(39,191) $(42,380) Loss per diluted share$(0.15) $(0.38) $(0.07) $(0.53) $(0.19) Goodwill impairment (net of tax)— 0.25 — 0.25 — Severance and other charges, net (net of tax)0.02 0.09 — 0.11 — Loss per diluted share excluding certain items$(0.13) $(0.04) $(0.07) $(0.17) $(0.19)