Forbes Energy Services Reports 2012 Fourth Quarter and Full-Year Results

Forbes Energy Services Reports 2012 Fourth Quarter and Full-Year Results

ALICE, Texas, April 1, 2013 (GLOBE NEWSWIRE) -- Forbes Energy Services Ltd.
(Nasdaq:FES) today announced financial and operating results for the three
months and full fiscal year ended December 31, 2012.

Consolidated revenues for the full year 2012 increased to $472.6 million,
compared to $445.8 million for the full year 2011. The 6% increase was
primarily driven by a slight increase in overall activity on an annual basis.

Highlights for the quarter ended December 31, 2012:

  oRevenues from U.S. Operations decreased 6.4% to $107.0 million in the
    fourth quarter of 2012, compared to $114.3 million in the third quarter of
    2012, and decreased 14.1% from the $124.5 million reported in the fourth
    quarter of 2011.
    
  oGross profit from U.S. Operations decreased to $21.6 million, or 20.2% of
    revenues, in the fourth quarter of 2012 compared to $25.8 million, or
    22.5% of revenues, in the third quarter of 2012, and $35.0 million, or
    28.1% of revenues, in the fourth quarter of 2011.
    
  oGAAP net loss from U.S. Operations attributable to common shares was $4.6
    million, or $0.22 per diluted share, for the fourth quarter of 2012,
    compared to net loss from U.S. Operations attributable to common shares of
    $1.5 million or $0.07 per diluted share for the third quarter of 2012, and
    a net income from U.S. Operations attributable to common shares of $5.2
    million, or $0.20 per diluted share, for the fourth quarter of 2011.
    
  oAdjusted EBITDA from U.S. Operations* totaled $14.4 million in the fourth
    quarter of 2012, compared to $19.2 million in the third quarter of 2012,
    and $29.7 million in the fourth quarter of 2011.

^*Adjusted EBITDA from U.S. Operations, a non-GAAP financial measure, is
defined by the Company as income (loss) from continuing operations before
interest, taxes, depreciation, amortization, gain or loss on early
extinguishment of debt, non-cash stock based compensation, and litigation
settlement.For a reconciliation of such measure to net income, please see the
disclosures at the end of this release and on the Company's Website.

Overview

John Crisp, the Company's President and Chief Executive Officer, stated, "2012
was a good year overall as we saw consolidated revenues increase year over
year. The fourth quarter was challenging as steadily weakening demand reduced
utilization and increased pricing pressure in most of our markets. The same
held true for the first few months of 2013. However, we started to see
activity pick up in March.

"We are very excited about our coiled tubing business.We received our fourth
coiled tubing spread in December and should take delivery of our last unit the
first half of this month.Interest from customers for the units is very
encouraging.As of the end of last week, all four units were active in the
field."

Business Segment Results

Well Servicing Segment

In the fourth quarter of 2012, Well Servicing segment revenues from U.S.
Operations decreased $2.0 million, or 4.0%, to $48.6 million compared to $50.6
million in the third quarter of 2012, and decreased $2.5 million, compared to
$51.0 million in the prior year's quarter. Segment gross profit totaled $8.2
million, or 16.8% of revenues, in the fourth quarter of 2012 compared to $9.2
million, or 18.2% of revenues, for the third quarter of 2012, and $12.5
million, or 24.4% of revenues, in the prior year's quarter.This decrease is
attributable to fewer 24-hour rigs working, higher group and workers
compensation insurance expense and other factors in line with cyclical
industry trends.

The Company recorded approximately 96,282 U.S. rig hours for the fourth
quarter of 2012, compared to 107,435 in the third quarter of 2012, and 112,044
in the fourth quarter of 2011. Capital expenditures for U.S. Operations in the
Well Servicing segment for the quarter ended December 31, 2012 were
approximately $4.1 million associated with one new coiled tubing spread and
related well service equipment.

As of December 31, 2012, the Company had 162 well service rigs, nine tubing
testing systems, four pump-down units and four coiled tubing spreads.

Fluid Logistics and Other Segment

In the fourth quarter of 2012, Fluid Logistics and Other segment revenues
decreased $5.3 million, or 8.3%, to $58.5 million, compared to $63.8 million
in the third quarter of 2012, and decreased $15.1 million, compared to $73.5
million in the fourth quarter of 2011. Gross operating profit for the Fluid
Logistics and Other segment totaled $13.5 million, or 23.0% of revenues, in
the fourth quarter of 2012, compared to $16.6 million, or 26.0% of revenues,
in the third quarter of 2012, and $22.5 million, or 30.6% of revenues, in the
prior year's quarter.

The Company recorded 374,664 truck hours during the fourth quarter of 2012,
compared to 405,672 hours in the third quarter of 2012, and 431,140 hours for
the fourth quarter of 2011. The Company's heavy truck fleet totaled 578 at
December 31, 2012, which included 494 vacuum trucks.Capital expenditures for
the Fluid Logistics and Other segment were approximately $4.5 million for the
quarter ended December 31, 2012, and consisted of purchases or additions to
frac tanks due to customer-required specifications, salt water disposal wells,
and other related equipment.

Liquidity and Capital Resources

As of December 31, 2012, the Company had $17.6 million in unrestricted cash
and $1.4 million of restricted cash. The Company also had $280 million of 9.0%
Senior Notes and $26.3 million of other notes outstanding.As of March 29,
2013, the Company had $32.2 million in unrestricted cash and the $75.0 million
secured credit facility remained undrawn, except for the letters of credit in
the amount of $2.9 million. New equipment to be added during 2013 will
primarily consist of the fifth coiled tubing spread, saltwater disposal wells,
and well servicing equipment.

Conference Call

The Company will host a conference call to discuss its fourth quarter and full
year 2012 results at 10:00 a.m. Eastern Time (9:00 a.m. Central) Monday, April
1, 2013. To access the call, please dial 877-303-1298 and provide the
Conference ID: 29478790. The conference call also will be broadcast live via
the Internet and will be accessible through the "Investor Relations" page of
the Company's Website, www.forbesenergyservices.com.

At the conclusion of the call, a replay will be available until April 14,
2013.To access the replay of the call, dial (855) 859-2056 and provide the
same Conference ID.A webcast archive will be available at
www.forbesenergyservices.com shortly after the call and will be accessible for
approximately 14 days.

About Forbes Energy Services

Forbes Energy Services Ltd. is an independent oilfield services contractor
that provides a broad range of drilling-related and production-related
services to oil and natural gas companies, primarily onshore in Texas,
Mississippi and Pennsylvania.More information on the Company can be found by
visiting www.forbesenergyservices.com.

Forward-Looking Statements and Regulation G Reconciliation

This press release contains "forward-looking statements," as contemplated by
the Private Securities Litigation Reform Act of 1995, in which the Company
discusses factors it believes may affect its performance in the future. These
statements include, in particular, statements regarding the acquisition of
equipment.The accuracy of the Company's assumptions, expectations, beliefs
and projections depend on events or conditions that change over time and are
thus susceptible to change based on actual experience, new developments and
known and unknown risks. The Company gives no assurance that the
forward-looking statements will prove to be correct and does not undertake any
duty to update them. The Company's actual future results might differ from the
forward-looking statements made in this press release for a variety of
reasons, which include: supply and demand for oilfield services and the level
of oil and natural gas prices; the timing of spending by customers in relation
to their exploratory budgets; the continued uncertainty in the global
financial markets and its effect on domestic spending in the oil and natural
gas industry; the Company's ability to maintain or improve pricing of its core
services; the potential for excess capacity in the industry; and competition.
Additional factors that should be considered are set forth in detail in the
Risk Factors section of the Company's Annual Report on Form 10-K for the year
ended December 31, 2012, to be filed later today (the "Form 10-K"), as well as
other filings the Company has made with the Securities and Exchange
Commission. Should one or more of the foregoing risks or uncertainties
materialize, or should the Company's underlying assumptions prove incorrect,
the Company's actual results may vary materially from those anticipated in its
forward-looking statements, and the Company's business, financial condition
and results of operations could be materially and adversely affected.

The Company's financial statements and management's discussion and analysis of
financial condition and results of operations will be found in the Company's
Form 10-K, which will be submitted for filing later 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           Year ended
                   December 31,                December 31,
                  2012           2011          2012           2011
                                                           
Revenues                                                    
Well servicing     $48,550,218  $51,025,780 $202,669,809 $177,895,636
Fluid logistics    58,456,926    73,515,987   269,927,083   267,887,002
and other
Total revenues     107,007,144   124,541,767  472,596,892   445,782,638
                                                           
Expenses                                                    
Well servicing     40,389,001    38,559,156   158,301,987   141,589,070
Fluid logistics    44,986,887    50,987,844   196,382,679   193,717,951
and other
General and        7,359,791     6,334,204    33,382,501    31,317,863
administrative
Depreciation and   13,923,048    10,582,057   50,996,689    39,659,523
amortization
Total expenses     106,658,727   106,463,261  439,063,856   406,284,407
Operating income   348,417       18,078,506   33,533,036    39,498,231
                                                           
Other income                                                
(expense)
Interest expense,  (7,104,061)   (6,929,337)  (27,955,400)  (27,398,152)
net
Loss on early
extinguishment of  --           --          --           (35,414,833)
debt
Other income, net  --           --          --           69,104
Income (loss) from
continuing         (6,755,644)   11,149,169   5,577,636     (23,245,650)
operations before
taxes
Income tax expense (2,386,474)   5,778,591    3,359,101     (4,676,774)
(benefit)
Income (loss) from
continuing         (4,369,170)   5,370,578    2,218,535     (18,568,876)
operations
Income from
discontinued
operations, net of
tax expense
(benefit) of       934,431       713,512      (632,354)     6,224,189
($0.7) million,
$3.1 million,
($0.4) million,
$6.3 million
respectively
Net income (loss)  (3,434,739)   6,084,090    1,586,181     (12,344,687)
Preferred shares   (194,139)     (194,141)    (776,556)     (186,589)
dividends
Net income (loss)
attributable to    $(3,628,878) $5,889,949  $809,625     $(12,531,276)
common
shareholders
                                                           
Income (loss) per
share of common
stock from                                                  
continuing
operations
Basic              $(0.22)      $0.25       $0.07        $(0.90)
Diluted            $(0.22)      $0.20       $0.07        $(0.90)
Income (loss) per
share of common
stock from                                                  
discontinued
operations
Basic and Diluted $0.04        $0.03       $(0.03)      $0.30
Income (loss) per
share of common                                             
stock
Basic              $(0.17)      $0.28       $0.04        $(0.60)
Diluted            $(0.17)      $0.23       $0.04        $(0.60)
Weighted average
number of shares                                            
outstanding
Basic              21,083,230    20,918,417   21,061,640    20,918,417
Diluted            21,127,083    26,566,648   21,340,253    20,918,417

                                                           
                                                           
Forbes Energy                                              
Services Ltd.
Selected Balance                                           
Sheet Data
(Unaudited)                                               
                                                           
                   December 31,   December 31,               
                   2012         2011                     
Cash              $17,618,900  $36,600,091              
Accounts           92,596,279    132,024,147               
receivable, net
Working capital   79,546,997    86,765,717                
Other intangibles, 28,015,133    30,876,389                
net
Total assets      512,661,867   550,423,053               
Total debt        306,347,167   296,150,274               
Deferred tax       26,586,818    27,491,812                
liability
Shareholders'      132,167,897   125,780,359               
equity
                                                           
                                                           
                                                           
Forbes Energy                                               
Services Ltd.
Selected Operating                                          
Data
                                                           
                   Three Months Ended December  Year ended December 31,
                    31,
                   2012         2011        2012        2011
Working days      63            62           192          253
                                                           
Rig hours         96,282        112,044      435,560      411,539
                                                           
Truck hours       374,664       431,140      1,676,778    1,476,664
                                                           
                                                           
                                                           
Forbes Energy                                              
Services Ltd.
Reconciliation of Net Income from Continuing                 
Operations to Adjusted EBITDA
(Unaudited)                                               
                                                           
                   Three Months Ended December Year ended December 31,
                    31,
                   2012         2011        2012        2011
Net Income (loss)
from continuing     $(4,369,170) $5,370,578  $2,218,535  $(18,568,876)
operations
Depreciation and    16,068,945    11,229,976   50,996,689   39,659,523
amortization
Interest expense,   7,104,061     6,929,337    27,955,400   27,398,152
net
Income tax expense  (2,386,474)   5,778,591    3,359,101    (4,676,774)
(benefit)
Share-based         84,210        1,007,257    4,430,235    2,936,890
compensation
Loss on early
extinguishment of   --           --          --          35,414,833
debt
Litigation
settlement and      --           --          --          6,784,164
associated legal
fees
Adjusted EBITDA
from U. S.          $16,501,572  $30,315,739 $88,959,960 $88,947,912
Operations

CONTACT: Casey Stegman
         Investor Relations
         214-987-4121
 
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