PR Newswire
HOUSTON, March 12, 2024
HOUSTON, March 12, 2024 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced operational and financial results for the fourth quarter and full-year ended December 31, 2023, highlighted by significant improvement in all profitability metrics, including net income, gross profit and adjusted gross profit(1). For the first time since 2017, the Company generated full-year positive adjusted EBITDA(1).
| Three months ended December 31, | | Twelve months ended December 31, | ||||
| 2023 | | 2022 | | 2023 | | 2022 |
| | | | | | | |
Total Revenues | $ 42,188 | | $ 48,217 | | $ 188,058 | | $ 136,092 |
Gross Profit (Loss) | $ 9,430 | | $ (2,074) | | $ 24,263 | | $ (6,700) |
Adjusted Gross Profit (Loss) (1) | $ 10,661 | | $ (522) | | $ 28,666 | | $ (1,884) |
Net Income (Loss) | $ 2,105 | | $ (19,026) | | $ 24,713 | | $ (42,305) |
Adjusted EBITDA (1) | $ 3,953 | | $ (5,079) | | $ 1,488 | | $ (26,169) |
| |||||||
(1) A non-GAAP financial measure. See the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" section in this release for more information, |
Full-Year 2023 Highlights
(1) | A non-GAAP financial measure. See the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" section in this release for more information, including |
Management Commentary
Chief Executive Officer Dr. Ryan Ezell commented, "2023 was a transformative year as we restored profitability and delivered significant improvement in all key financial metrics, strengthened our leadership team with the addition of several key members, enhanced our liquidity through an ABL, and positioned Flotek to be the collaborative partner of choice for sustainable chemistry and data solutions that maximize our customers' value.
This impressive list of achievements reflects stellar execution throughout our entire organization and speaks to tremendous growth opportunities as we leverage our unique approach to chemistry as a common value creation platform to drive market share gains through our differentiated solutions. We are excited about the next generation of our JP3 Verax Near InfraRed measurement system, which will scale our Data Analytics segment more quickly and is expected to deliver associated revenue growth of greater than 50% in 2024. We also anticipate sustained growth in reservoir centric and international chemistry revenues as we expand our global footprint."
Fourth Quarter and Full-Year 2023 Financial Results
(1) | See the "Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings" section in this release for more information, including reconciliations to the most |
Data Analytics Update
Flotek continues to test the next generation version of its proprietary JP3 Verax Near InfraRed measurement system ("JP3"). JP3 represents the foundational technology behind the Company's Data Analytics business, which supports customers through real-time data, monitoring, and visualization across the energy value chain. The new JP3 analyzer is currently undergoing extensive field-trial testing with customer deployment expected by mid-2024. The new unit's engineering advances will facilitate scale and accelerated pace of production along with a reduction in manufacturing costs allowing access to markets that are currently unavailable.
The Company's plans for 2024 include maintaining JP3's strong presence in the midstream market, as well as pursuing new opportunities to accelerate penetration into the upstream market. Flotek is currently working with landowner groups to improve production allocations on lease sites and custody transfer locations through JP3's accurate, real-time measurements. This application represents a significant market opportunity in replacing traditional allocation measurement technologies. In addition, the Company is participating in a flare monitoring pilot program with a large upstream operator to demonstrate the use of JP3's technical solution in connection with compliance with recently enacted EPA regulations. With over 55,000 existing flares in the United States expected to be subject to monitoring regulations by 2028, this application could present a material multi-year opportunity for JP3 to expand its footprint into the upstream space.
Balance Sheet and Liquidity
As of March 11, 2024, the Company's cash and cash equivalents totaled $5.3 million. Borrowings outstanding under the Company's Asset Based Loan at March 11, 2024 totaled approximately $0.5 million as compared to $7.5 million at December 31, 2023.
2024 Guidance
Flotek plans to issue 2024 guidance in conjunction with the release of its first quarter 2024 financial and operating results, consistent with last year's timing.
Upcoming Investor Event
Flotek will participate in the 36th Annual Roth Conference to be held at the Ritz Carlton in Laguna Niguel, California, March 17-19, 2024. Flotek Chief Executive Officer, Ryan Ezell, will participate in an industry panel discussion on March 18 at 1:00 p.m. PT and will be joined by Chief Financial Officer, Bond Clement, in hosting one-on-one meetings with investors during the event. An updated corporate presentation that will be used in discussions at the conference will be posted to the Investor Relations section of Flotek's corporate website at www.flotekind.com prior to the start of the conference.
Conference Call Details
Flotek will host a conference call on March 13, 2024, at 9:00 a.m. CT (10:00 a.m. ET) to discuss its fourth quarter and full year 2023 results. Participants may access the call through Flotek's website at www.flotekind.com under "News" within the Investor Relations section or by telephone toll free at 1-800-836-8184 (international toll: 1-646-357-8785) approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company's website.
An updated corporate presentation that will be referenced on the call will be posted to the Investor Relations section of Flotek's website at www.flotekind.com prior to the start of the earnings conference call.
About Flotek Industries, Inc.
Flotek Industries, Inc. is an advanced technology-driven, green chemical and data analytics company providing unique and innovative completion solutions that have a proven, positive impact on sustainability and reducing the overall environmental impact of energy on air, land, water and people. Flotek has an intellectual property portfolio of over 170 patents and a global presence in more than 59 countries throughout North America, Latin America, the Middle East and North Africa. Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions which improve well performance and allow its customers to generate higher returns on invested capital.
Flotek is based in Houston, Texas and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK". For additional information, please visit www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this press release constitute 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) regarding Flotek Industries, Inc.'s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the company are set forth in the Company's most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the "Risk Factors" section thereof), and in the Company's other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | |||
| |||
| December 31, 2023 | | December 31, 2022 |
ASSETS | | | |
Current assets: | | | |
Cash and cash equivalents | $ 5,851 | | $ 12,290 |
Restricted cash | 102 | | 100 |
Accounts receivable, net of allowance for credit losses of $745 and $623 at | 13,687 | | 19,136 |
Accounts receivable, related party, net of allowance for credit losses of $0 at | 34,569 | | 22,683 |
Inventories, net | 12,838 | | 15,720 |
Other current assets | 3,564 | | 3,032 |
Current contract asset | 5,836 | | 7,113 |
Total current assets | 76,447 | | 80,074 |
Long-term contract assets | 68,820 | | 72,576 |
Property and equipment, net | 5,129 | | 4,826 Werbung Mehr Nachrichten zur Flotek Industries Aktie kostenlos abonnieren
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