Forbes Energy Services Reports 2013 First Quarter Financial Results

Forbes Energy Services Reports 2013 First Quarter Financial Results

ALICE, Texas, May 15, 2013 (GLOBE NEWSWIRE) -- Forbes Energy Services Ltd.
(Nasdaq:FES) today announced financial and operating results for the three
months ended March 31, 2013.

Consolidated revenues for the first quarter of 2013 were approximately $102
million, compared to $107 million for the fourth quarter of 2012.

Selected information for the quarter ended March 31, 2013:

  oGross profit from U.S. Operations increased to $24.0 million, or 23.6% of
    revenues in the first quarter of 2013, compared to $21.6 million, or 20.2%
    in the fourth quarter of 2012.
  oGAAP net loss from U.S. Operations attributable to common shares was $2.8
    million, or $0.13 per diluted share, for the first quarter of 2013,
    compared to net loss from U.S. Operations attributable to common shares of
    $4.6 million, or $0.22 per diluted share for the fourth quarter of 2012.
  oAdjusted EBITDA from U.S. Operations* totaled $17.4 million in the first
    quarter of 2013, compared to $14.4 million in the fourth quarter of 2012.

^*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,
"Overall, the first quarter of this year ended on a positive note. The
beginning was somewhat slow, but towards the second half, we experienced a
modest increase in activity.

We were pleased to see revenue and gross profit stabilize in our well
servicing segment relative to the fourth quarter of 2012.Activity levels for
our coiled tubing units were similar to our conventional rig utilization. With
the addition of the fifth spread, which arrived at the end of April, we have
ample room to grow this service.

"Revenues were down in our fluid logistics segment, reflective of general
market conditions and overall competition in this space.Our increase in gross
profit in fluid logistics quarter over quarter was due in large part to our
managers' efforts to reduce costs in our supply chain and repair and
maintenance programs in this segment during the quarter. We are encouraged by
these results, but remain cautious as competitive pressure continues to weigh
on the sector.

Overall, we are positive about the balance of 2013 and anticipate increased
activity from our customers."

Business Segment Results

Well Servicing Segment

In the first quarter of 2013, well servicing segment revenues from U.S.
Operations increased $1.6 million, or 3.3%, to $50.2 million, compared to
$48.6 million in the fourth quarter of 2012.Segment gross profit totaled $9.8
million, or 19.6% of revenues, in the first quarter of 2013 compared to $8.2
million, or 16.8% of revenues, for the fourth quarter of 2012.

The Company recorded approximately 99,271 U.S. rig hours for the first quarter
of 2013, compared to 96,282 in the fourth quarter of 2012. Capital
expenditures for U.S. Operations in the well servicing segment for the quarter
ended March 31, 2013, were approximately $4.4 million, associated with one new
coiled tubing spread and related well servicing equipment.

As of March 31, 2013, the Company had 162 well servicing rigs, nine tubing
testing systems, four pump-down units and four coiled tubing spreads.

Fluid Logistics Segment

In the first quarter of 2013, fluid logistics segment revenues decreased $6.9
million, or 11.8%, to $51.6 million, compared to $58.5 million in the fourth
quarter of 2012. Gross operating profit for the fluid logistics segment
totaled $14.1 million, or 27.4% of revenues, in the first quarter of 2013,
compared to $13.5 million, or 23.0% of revenues, in the fourth quarter of
2012.

The Company recorded 324,337 truck hours during the first quarter of 2013,
compared to 374,664 hours in the fourth quarter of 2012. The Company's heavy
truck fleet totaled 581 at March 31, 2013, which included 497 vacuum
trucks.Capital expenditures for the fluid logistics segment were
approximately $5.4 million for the quarter ended March 31, 2013, and consisted
primarily of purchases or additions to specialty tanks, salt water disposal
wells, and other related equipment.

Liquidity and Capital Resources

As of March 31, 2013, the Company had $31.2 million in unrestricted cash and
$1.4 million of restricted cash.The Company also had $280 million of 9.0%
Senior Notes and $22.5 million of other notes outstanding.As of May 10, 2013,
the Company had $32.1 million in unrestricted cash and the $75 million secured
credit facility remained undrawn, except for the letters of credit in the
amount of $2.9 million.Additional capital expenditures for the remainder of
2013 will be allocated primarily to residual costs from the fifth coiled
tubing spread, saltwater disposal wells, and well servicing equipment.

Conference Call

The Company will host a conference call to discuss its first quarter results
at 10:00 a.m. Eastern Time (9:00 a.m. Central) today. To access the call,
please dial 877-303-1298 and provide the Conference ID: 68902700. 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 May 28,
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 Form 10-Q for the quarter ended March
31, 2013, to be filed later today (the "Form 10-Q"), 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-Q, 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)
(in thousands, except per share amounts)
                                                              
                                               Three Months Ended March 31,
                                               2013            2012
Revenues                                                       
Well servicing                                  $50,164       $52,240
Fluid logistics                                 51,574         79,245
Total revenues                                  101,738        131,485
Expenses                                                       
Well servicing                                  40,338         39,088
Fluid logistics                                 37,433         54,856
General and administrative                      7,334          10,670
Depreciation and amortization                   13,002         11,421
Total expenses                                  98,107         116,035
Operating income                                3,631          15,450
Other income                                                   
Interest expense, net                           (6,991)        (6,872)
Income (loss) from continuing operations before (3,360)        8,578
taxes
Income tax expense (benefit)                    (761)          3,367
Income (loss) from continuing operations        (2,599)        5,211
Income (loss) from discontinued operations, net
of tax expense (benefit) of ($68), and $804     (127)          1,132
respectively
Net income (loss)                               (2,726)        6,343
Preferred shares dividends                      (194)          (194)
Net income (loss) attributable to common        $(2,920)      $6,149
shareholders
Income (loss) per share of common stock from                   
continuing operations
Basic                                           $(0.13)       $0.24
Diluted                                         $(0.13)       $0.20
Income (loss) per share of common stock from                   
discontinued operations
Basic                                           $(0.01)       $0.05
Diluted                                         $(0.01)       $0.04
Income (loss) per share of common stock                        
Basic                                           $(0.14)       $0.29
Diluted                                         $(0.14)       $0.24
Weighted average number of shares outstanding                  
Basic                                           21,280         20,979
Diluted                                         21,280         26,582



Forbes Energy Services Ltd.
Selected Balance Sheet Data (unaudited)
(in thousands, except per share amounts)
                                                           
                                             March 31,      December 31,
                                             2013         2012
Cash                                        $31,178      $17,619
Accounts receivable, net                    81,445        92,596
Working capital                             80,588        79,547
Other intangibles, net                      27,299        28,015
Total assets                                510,950       512,701
Total debt                                  302,525       306,347
Deferred tax liability                      25,633        26,587
Shareholders' equity                        129,947       132,168
                                                           
                                                           
Forbes Energy Services Ltd.
Selected Operating Data
                                                           
                                             Three Months Ended March 31,
                                             2013         2012
Working days                                64            64
                                                           
Rig hours                                   99,271        117,633
                                                           
Truck hours                                 324,337       462,324
                                                           
                                                           
Forbes Energy Services Ltd.
Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA
(Unaudited)
                                                           
                                             Three Months Ended March 31,
                                             2013         2012
Net Income (loss) from continuing operations  $(2,599)     $5,211
Depreciation and amortization                 13,002        11,421
Interest expense, net                         6,991         6,872
Income tax expense (benefit)                  (761)         3,367
Share-based compensation                      750           1,767
Adjusted EBITDA from U. S. Operations        $17,383      $28,638

CONTACT: Casey Stegman
         Investor Relations
         214-987-4121
 
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