HOUSTON, Nov. 4, 2024 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) these days introduced operational and fiscal effects for the quarter ended September 30, 2024, highlighted by means of important development in profitability metrics as in comparison to the 3rd quarter of 2023. Because of the sturdy effects completed during the first 9 months of the 12 months, the Corporate higher its 2024 benefit steering.
Monetary Abstract (in hundreds, apart from ‘according to percentage’ quantities)
|
3 Months Ended September 30, |
9 Months Ended September 30, |
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
General Revenues |
$ 49,742 |
$ 47,268 |
$ 136,267 |
$ 145,870 |
|||
|
Rude Benefit |
$ 9,119 |
$ 9,047 |
$ 27,108 |
$ 14,833 |
|||
|
Adjusted Rude Benefit (1) |
$ 10,695 |
$ 10,264 |
$ 31,421 |
$ 18,005 |
|||
|
Web Source of revenue |
$ 2,532 |
$ 1,287 |
$ 6,068 |
$ 22,609 |
|||
|
Diluted Source of revenue (Loss) In keeping with Percentage |
$ 0.08 |
$ 0.04 |
$ 0.20 |
$ (0.18) |
|||
|
Adjusted EBITDA (1) |
$ 4,840 |
$ 3,392 |
$ 13,303 |
$ (2,464) |
|||
3rd Quarter 2024 Highlights
- Generated overall income of $49.7 million, a 5% building up from the 3rd quarter of 2023, highlighted by means of a 58% year-over-year building up in Information Analytics revenues.
- Diminished SG&A by means of 12% from the 3rd quarter of 2023 and by means of 9% sequentially from the second one quarter of 2024.
- Reported internet source of revenue of $2.5 million and altered EBITDA(1) of $4.8 million, representing a year-over-year building up of 97% and 43%, respectively.
- Diminished borrowings exceptional below the Asset Primarily based Mortgage by means of 81% (or $6.1 million) in comparison to year-end 2023.
2024 Steering: More potent Benefit Expectancies
Primarily based upon the Corporate’s sturdy year-to-date operational efficiency and the outlook for the fourth quarter, the Corporate is expanding its 2024 steering. Flotek now expects adjusted EBITDA(2) to be within the length of $16.5 million to $18.5 million, up from the former length of $14 million to $18 million. This represents a 9% building up to the midpoint of the length and a 35% building up when in comparison to the midpoint of the Corporate’s unedited 2024 steering of $10 million to $16 million. As well as, the Corporate now expects its adjusted rude benefit margin(2) for 2024 to be within the length of 20% to 22%, up from the unedited steering of 18% to 22%.
Control Remark
Well-known Government Officer Dr. Ryan Ezell commented, “We’re happy to record some other quarter of exceptional protection, provider attribute and fiscal effects. We proceed to realize momentum and marketplace percentage with the execution of our technique, regardless of a difficult upstream marketplace. Earnings from our Information Analytics branch grew 30% within the 3rd quarter, a continuation of the sturdy enlargement of twenty-two% in the second one quarter. Our pristine upstream Information Analytics’ packages, together with flare tracking, had been a catalyst for income enlargement this quarter. Following the EPA’s benevolence of our JP3 analyzer in mid-July, we identified our first revenues from flare tracking in August and September, which comprised 25% of overall quarterly branch revenues. We predict to peer additional enlargement in flare tracking revenues all the way through the fourth quarter. Earnings from our chemistry branch higher 7% within the 3rd quarter, a continuation of the expansion within the prior quarter. Our chronic income enlargement in our chemistry branch, regardless of a declining frac fleet marketplace, is unclouded proof that we’re gaining marketplace percentage thru our differentiated chemistry generation answers.
In the case of profitability, adjusted EBITDA all the way through the 3rd quarter progressed for the 8th consecutive quarter and, because of this, we’re expanding our adjusted EBITDA steering for the second one month this 12 months. Over the primary 9 months of 2024, we reported adjusted EBITDA of $13.3 million, as in comparison to ($2.5) million all the way through the 9 months ended September 30, 2023. This $15.8 million development displays the continuing sure trajectory of the Corporate and the dried paintings and determination of the Flotek workers.”
3rd Quarter 2024 Monetary Effects
- Earnings: Flotek reported overall revenues of $49.7 million for the 3rd quarter of 2024, which was once an building up of $2.5 million, or 5% in comparison to the 3rd quarter of 2023. 3rd quarter income higher 8% sequentially pushed by means of a 7% sequential building up in Chemistry revenues and a 30% sequential building up in Information Analytics’ income. Information Analytics branch income totaled $2.7 million all the way through the 3rd quarter of 2024, of which 25% was once attributed to Flotek’s pristine proprietary flare size software.
- Rude Benefit: The Corporate generated rude benefit of $9.1 million with a margin of 18% all the way through the 3rd quarter 2024, as in comparison to rude benefit of $9.0 million with a margin of nineteen% for the 3rd quarter 2023. Rude benefit margin all the way through the 3rd quarter of 2024 was once not up to the 2023 length because of a shift in chemistry product combine in addition to decrease income all the way through the 2024 length similar to the minimal chemistry acquire necessities contained within the Corporate’s long-term provide contract. In part offsetting these things was once an building up in rude benefit from the Corporate’s Information Analytics branch, which contributed $1.2 million to 3rd quarter 2024 rude benefit, a 46% building up from the 12 months in the past quarter.
- Adjusted Rude Benefit (Non-GAAP)(1): Flotek generated adjusted rude benefit of $10.7 million all the way through the 3rd quarter 2024 in comparison to adjusted rude benefit of $10.3 million for the 3rd quarter 2023. Adjusted rude benefit excludes non-cash pieces, essentially amortization of word belongings.
- Promoting, Common and Administrative (“SG&A”) Expense: SG&A expense totaled $5.7 million for the 3rd quarter 2024 in comparison to $6.5 million for the 3rd quarter 2023. The advance was once the results of decrease team of workers prices {and professional} charge bills all the way through the 2024 length.
- Web Source of revenue and EPS: Flotek reported internet source of revenue of $2.5 million, or $0.08 according to diluted percentage, for the 3rd quarter 2024. This compares to a internet source of revenue of $1.3 million, or $0.04 according to diluted percentage, for the 3rd quarter 2023.
- Adjusted EBITDA (Non-GAAP)(1): Adjusted EBITDA was once $4.8 million within the 3rd quarter 2024 as in comparison to $3.4 million within the 3rd quarter 2023. 3rd quarter 2024 adjusted EBITDA marked the 8th consecutive quarter of development.
|
(1) |
A non-GAAP monetary measure. See the “Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings” category on this reduce for more info, together with reconciliations to essentially the most related GAAP measures. |
|
(2) |
A non-GAAP monetary measure. See the “Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings” category on this reduce for more info, together with reconciliations to essentially the most related GAAP measures. We’re not able to reconcile this forward-looking non-GAAP monetary measure to essentially the most at once related GAAP monetary measure with out unreasonable efforts, as we’re not able to are expecting with an affordable stage of simple task the have an effect on of positive pieces that might be anticipated to have an effect on the GAAP monetary measure, together with, amongst alternative pieces, the era amortization of our word belongings, positive stock-based repayment prices and the have an effect on of the revaluation of positive liabilities, which is founded upon our era inventory worth. This stuff don’t have an effect on the non-GAAP monetary measure. |
Convention Name Main points
Flotek will host a convention name on November 5, 2024, at 9:00 a.m. CT (10:00 a.m. ET) to talk about its 3rd quarter 2024 effects. Contributors would possibly get right of entry to the decision thru Flotek’s web site at www.flotekind.com below “News” throughout the Investor Members of the family category, by means of phone toll isolated at 1-800-836-8184 (global toll: 1-646-357-8785), or by means of the usage of please see hyperlink to get right of entry to the target market view of the webcast at https://app.webinar.net/7baorgbxmJ5 roughly 5 mins previous to the beginning of the decision. Following the belief of the convention name, a recording of the decision can be to be had at the Corporate’s web site.
An up to date company presentation that can be referenced at the name can be posted to the Investor Members of the family category of Flotek’s web site at www.flotekind.com previous to the beginning of the profits convention name.
About Flotek Industries, Inc.
Flotek Industries, Inc. is a well-known chemistry and knowledge generation corporate involved in servicing the Power trade. The Corporate’s govern tier applied sciences leverage related real-time knowledge to bring leading edge answers to maximise buyer returns. Flotek has an highbrow constituent portfolio of over 170 patents, 20+ years of grassland and laboratory knowledge, and an international presence in additional than 59 nations.
Flotek has established collaborative partnerships involved in sustainable and optimized chemistry and knowledge answers, aiming to shed the environmental have an effect on of power on land, wind, H2O and family.
Flotek is founded in Houston, Texas and its habitual stocks are traded at the Pristine York Retain Trade below the ticker image “FTK.” For alternative data, please consult with www.flotekind.com.
Ahead-Having a look Statements
Positive statements eager forth on this press reduce represent forward-looking statements (throughout the which means of Category 27A of the Securities Business of 1933 and Category 21E of the Securities Trade Business of 1934) relating to Flotek Industries, Inc.’s industry, monetary situation, result of operations and potentialities. Phrases comparable to will, proceed, expects, anticipates, intends, plans, believes, seeks, estimates and alike expressions or permutations of such phrases are supposed to spot forward-looking statements, however aren’t the unique manner of figuring out forward-looking statements on this press reduce. Even supposing forward-looking statements on this press reduce replicate the great religion judgment of control, such statements can simplest be in accordance with information and elements recently recognized to control. Because of this, forward-looking statements are inherently matter to dangers and uncertainties, and unedited effects and results would possibly vary materially from the effects and results mentioned within the forward-looking statements. Additional details about the hazards and uncertainties that can have an effect on the Corporate are eager forth within the Corporate’s most up-to-date submitting with the Securities and Trade Fee on Mode 10-Okay (together with, with out limitation, within the “Risk Factors” category thereof), and within the Corporate’s alternative SEC filings and publicly to be had paperwork. Readers are prompt to not playground undue reliance on those forward-looking statements, which talk simplest as of the past of this press reduce. The Corporate undertakes deny legal responsibility to revise or replace any forward-looking statements to bring to replicate any tournament or surrounding that can rise then the past of this press reduce.
|
FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in hundreds, apart from percentage knowledge) |
|||
|
September 30, 2024 |
December 31, 2023 |
||
|
ASSETS |
|||
|
Flow belongings: |
|||
|
Money and coins equivalents |
$ 4,997 |
$ 5,851 |
|
|
Limited coins |
101 |
102 |
|
|
Accounts receivable, internet of allowance for credit score losses of $388 and $745 at |
12,220 |
13,687 |
|
|
Accounts receivable, similar birthday celebration, internet of allowance for credit score losses of $0 at |
47,064 |
34,569 |
|
|
Inventories, internet |
12,744 |
12,838 |
|
|
Alternative wave belongings |
2,687 |
3,564 |
|
|
Flow word asset |
6,480 |
5,836 |
|
|
General wave belongings |
86,293 |
76,447 |
|
|
Lengthy-term word asset |
63,835 |
68,820 |
|
|
Constituent and kit, internet |
4,958 |
5,129 |
|
|
Running rent right-of-use belongings |
3,759 |
5,030 |
|
|
Deferred tax belongings, internet |
66 |
300 |
|
|
Alternative long-term belongings |
1,738 |
1,787 |
|
|
TOTAL ASSETS |
$ 160,649 |
$ 157,513 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||
|
Flow liabilities: |
|||
|
Accounts payable |
$ 37,395 |
$ 31,705 |
|
|
Collected liabilities |
4,115 |
5,890 |
|
|
Source of revenue taxes payable |
54 |
45 |
|
|
Flow portion of running rent liabilities |
1,642 |
2,449 |
|
|
Flow portion of finance rent liabilities |
— |
22 |
|
|
Asset-based mortgage |
1,426 |
7,492 |
|
|
Flow portion of long-term debt |
104 |
179 |
|
|
General wave liabilities |
44,736 |
47,782 |
|
|
Deferred income, long-term |
35 |
35 |
|
|
Lengthy-term running rent liabilities |
6,871 |
7,676 |
|
|
Lengthy-term debt |
— |
60 |
|
|
TOTAL LIABILITIES |
51,642 |
55,553 |
|
|
Constancy and contingencies |
|||
|
Stockholders’ fairness: |
|||
|
Most popular inventory, $0.0001 par price, 100,000 stocks approved; deny stocks issued and exceptional |
— |
— |
|
|
Usual inventory, $0.0001 par price, 240,000,000 stocks approved; 30,891,597 stocks issued and |
3 |
3 |
|
|
Spare paid-in capital |
464,143 |
463,140 |
|
|
Amassed alternative complete source of revenue |
133 |
127 |
|
|
Amassed inadequency |
(320,738) |
(326,806) |
|
|
Treasury inventory, at value; 1,102,121 and 1,108,707 stocks at September 30, 2024 |
(34,534) |
(34,504) |
|
|
General stockholders’ fairness |
109,007 |
101,960 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ 160,649 |
$ 157,513 |
|
|
FLOTEK INDUSTRIES, INC. Unaudited Condensed Consolidated Statements of Operations (in hundreds, apart from according to percentage knowledge) |
|||||||
|
3 Months Ended |
9 Months Ended |
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
Earnings: |
|||||||
|
Earnings from exterior consumers |
$ 16,565 |
$ 17,806 |
$ 47,935 |
$ 47,278 |
|||
|
Earnings from similar birthday celebration |
33,177 |
29,462 |
88,332 |
98,592 |
|||
|
General revenues |
49,742 |
47,268 |
136,267 |
145,870 |
|||
|
Price of products offered |
40,623 |
38,221 |
109,159 |
131,037 |
|||
|
Rude benefit |
9,119 |
9,047 |
27,108 |
14,833 |
|||
|
Running prices and bills: |
|||||||
|
Promoting, basic, and administrative |
5,714 |
6,526 |
18,056 |
21,303 |
|||
|
Depreciation |
220 |
181 |
662 |
530 |
|||
|
Analysis and building |
462 |
757 |
1,349 |
2,231 |
|||
|
Severance prices |
— |
2 |
23 |
(28) |
|||
|
Achieve on sale of constituent and kit |
— |
(38) |
(34) |
(38) |
|||
|
Achieve in honest price of Guarantee Attention Convertible Notes Payable |
— |
— |
— |
(29,969) |
|||
|
General running prices and bills |
6,396 |
7,428 |
20,056 |
(5,971) |
|||
|
Source of revenue from operations |
2,723 |
1,619 |
7,052 |
20,804 |
|||
|
Alternative source of revenue (expense): |
|||||||
|
Paycheck coverage plan mortgage mercy |
— |
— |
— |
4,522 |
|||
|
Hobby expense |
(256) |
(160) |
(842) |
(2,537) |
|||
|
Alternative source of revenue, internet |
102 |
(91) |
151 |
(82) |
|||
|
General alternative source of revenue (expense) |
(154) |
(251) |
(691) |
1,903 |
|||
|
Source of revenue prior to source of revenue taxes |
2,569 |
1,368 |
6,361 |
22,707 |
|||
|
Source of revenue tax expense |
(37) |
(81) |
(293) |
(98) |
|||
|
Web source of revenue |
$ 2,532 |
$ 1,287 |
$ 6,068 |
$ 22,609 |
|||
|
Source of revenue (loss) according to habitual percentage: |
|||||||
|
Ordinary |
$ 0.09 |
$ 0.04 |
$ 0.21 |
$ 0.97 |
|||
|
Diluted |
$ 0.08 |
$ 0.04 |
$ 0.20 |
$ (0.18) |
|||
|
Weighted reasonable habitual stocks: |
|||||||
|
Weighted reasonable habitual stocks worn in |
29,613 |
29,358 |
29,498 |
23,291 |
|||
|
Weighted reasonable habitual stocks worn in |
30,897 |
30,688 |
30,655 |
28,034 |
|||
|
FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in hundreds) |
|||
|
9 Months Ended September 30, |
|||
|
2024 |
2023 |
||
|
Money flows from running actions: |
|||
|
Web source of revenue |
$ 6,068 |
$ 22,609 |
|
|
Changes to reconcile internet source of revenue to internet coins supplied by means of (worn in) running actions: |
|||
|
Alternate in honest price of contingent attention |
(46) |
(384) |
|
|
Alternate in honest price of Guarantee Attention Convertible Notes Payable |
— |
(29,969) |
|
|
Amortization of convertible word issuance prices |
— |
83 |
|
|
Cost-in-kind hobby expense |
— |
2,284 |
|
|
Amortization of word asset |
4,341 |
3,665 |
|
|
Depreciation |
662 |
530 |
|
|
Amortization of asset-based mortgage inauguration prices |
243 |
36 |
|
|
Provision for credit score losses, internet of healings |
121 |
97 |
|
|
Provision for plethora and out of date stock |
626 |
626 |
|
|
Achieve on sale of constituent and kit |
(34) |
(38) |
|
|
Non-cash rent expense |
1,661 |
2,316 |
|
|
Retain repayment expense |
915 |
(565) |
|
|
Deferred source of revenue tax expense |
233 |
50 |
|
|
Paycheck coverage plan mortgage mercy |
— |
(4,522) |
|
|
Adjustments in wave belongings and liabilities: |
|||
|
Accounts receivable |
1,346 |
3,472 |
|
|
Accounts receivable, similar birthday celebration |
(12,495) |
(2,082) |
|
|
Inventories |
(532) |
(776) |
|
|
Alternative belongings |
849 |
(863) |
|
|
Accounts payable |
5,690 |
60 |
|
|
Collected liabilities |
(1,730) |
(3,179) |
|
|
Running rent liabilities |
(2,002) |
(2,636) |
|
|
Source of revenue taxes payable |
9 |
(54) |
|
|
Hobby payable |
— |
(8) |
|
|
Web coins supplied by means of (worn in) running actions |
5,925 |
(9,248) |
|
|
FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in hundreds) (persevered) |
|||
|
9 Months Ended September 30, |
|||
|
2024 |
2023 |
||
|
Money flows from making an investment actions: |
|||
|
Capital expenditures |
(491) |
(593) |
|
|
Proceeds from sale of belongings |
34 |
68 |
|
|
Web coins worn in making an investment actions |
(457) |
(525) |
|
|
Money flows from financing actions: |
|||
|
Cost for forfeited inventory choices |
— |
(617) |
|
|
Bills on longer term debt |
(135) |
(104) |
|
|
Proceeds from asset-based mortgage |
122,600 |
27,750 |
|
|
Bills on asset-based mortgage |
(128,666) |
(24,380) |
|
|
Cost of asset-based mortgage inauguration prices |
(164) |
(502) |
|
|
Bills to tax government for stocks withheld from workers |
(30) |
(246) |
|
|
Proceeds from issuance of inventory |
88 |
48 |
|
|
Bills for finance rentals |
(22) |
(24) |
|
|
Web coins (worn in) supplied by means of financing actions |
(6,329) |
1,925 |
|
|
Impact of adjustments in change charges on coins and coins equivalents |
6 |
13 |
|
|
Web alternate in coins and coins equivalents and limited coins |
(855) |
(7,835) |
|
|
Money and coins equivalents originally of length |
5,851 |
12,290 |
|
|
Limited coins originally of length |
102 |
100 |
|
|
Money and coins equivalents and limited coins at starting of length |
5,953 |
12,390 |
|
|
Money and coins equivalents at stop of length |
4,997 |
4,453 |
|
|
Limited coins on the stop of length |
101 |
102 |
|
|
Money and coins equivalents and limited coins at stop of length |
$ 5,098 |
$ 4,555 |
|
|
FLOTEK INDUSTRIES, INC. Unaudited Reconciliation of Non-GAAP Pieces and Non-Money Pieces Impacting Profits (in hundreds) |
|||||||
|
3 Months Ended |
9 Months Ended September 30, |
||||||
|
2024 |
2023 |
2024 |
2023 |
||||
|
Rude benefit |
$ 9,119 |
$ 9,047 |
$ 27,108 |
$ 14,833 |
|||
|
Retain repayment expense |
3 |
2 |
9 |
(135) |
|||
|
Severance and departure |
— |
— |
9 |
26 |
|||
|
Contingent legal responsibility revaluation |
(19) |
(61) |
(46) |
(384) |
|||
|
Amortization of word asset |
1,592 |
1,276 |
4,341 |
3,665 |
|||
|
Adjusted Rude benefit (Non-GAAP) (1) |
$ 10,695 |
$ 10,264 |
$ 31,421 |
$ 18,005 |
|||
|
Web source of revenue |
$ 2,532 |
$ 1,287 |
$ 6,068 |
$ 22,609 |
|||
|
Hobby expense |
256 |
160 |
842 |
2,537 |
|||
|
Source of revenue tax expense |
37 |
81 |
293 |
98 |
|||
|
Depreciation and amortization |
220 |
181 |
662 |
530 |
|||
|
EBITDA (Non-GAAP) (1) |
$ 3,045 |
$ 1,709 |
$ 7,865 |
$ 25,774 |
|||
|
Retain repayment expense |
272 |
268 |
915 |
(574) |
|||
|
Severance |
— |
2 |
32 |
(28) |
|||
|
Contingent legal responsibility revaluation |
(19) |
(61) |
(46) |
(384) |
|||
|
Achieve on disposal of belongings |
— |
(38) |
(34) |
(38) |
|||
|
PPP mortgage mercy |
— |
— |
— |
(4,522) |
|||
|
Guarantee Attention Convertible Notes Payable revaluation adjustment |
— |
— |
— |
(29,969) |
|||
|
Amortization of word asset |
1,592 |
1,276 |
4,341 |
3,665 |
|||
|
Non-Ordinary skilled charges |
(50) |
236 |
230 |
3,612 |
|||
|
Adjusted EBITDA (Non-GAAP) (1) |
$ 4,840 |
$ 3,392 |
$ 13,303 |
$ (2,464) |
|||
|
(1) |
Control believes that adjusted rude benefit, EBITDA and altered EBITDA for the 3 and 9 months ended September 30, 2024 and 2023, are helpful to traders to evaluate and perceive running efficiency, particularly when evaluating the ones effects with earlier and next sessions. Control perspectives the source of revenue and bills famous above to be outdoor of the Corporate’s customary running effects. Control analyzes running effects with out the have an effect on of the above pieces as a hallmark of efficiency, to spot underlying traits within the industry and coins current from proceeding operations, and to determine monetary and operational objectives, aside from positive non-cash or non-recurring pieces. |
SOURCE Flotek Industries, Inc.
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