 HOUSTON, Aug. 04, 2020 GLOBE NEWSWIRE -- Franks International N.V. NYSE: FI the Company or Franks 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 Franks 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 Franks. The entire Franks team remains focused on exploring opportunities to work more efficiently in the future and reset our cost base, said Michael Kearney, the Companys 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.Franks 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 Franks load bearing technologies. The combined solutions facilitated a safe and efficient operation, while achieving a customer hook load record, adding to the Franks history of record hook load achievements. Franks also recently introduced the Caseless InsertableTM 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 Companys 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, Franks 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 Companys 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 Companys 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 Companys website, 