HOUSTON, Nov. 7, 2023
/PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company")
(NYSE: FTK) today announced operational and financial results for
the third quarter ended September 30,
2023, highlighted by significant improvement in all
profitability metrics, including net income and the first quarter
of positive adjusted EBITDA(1) since the third quarter
of 2018. The third quarter results build upon the Company's
financial and operational momentum with nearly all financial
metrics showing strong year-over-year growth.
Financial Summary (in thousands)
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Total
Revenues
|
$
47,268
|
$
45,623
|
|
$
145,870
|
$
87,874
|
|
Gross Profit
(Loss)
|
$
9,047
|
$
(1,842)
|
|
$
14,833
|
$
(4,626)
|
|
Adjusted Gross Profit
(Loss) (1)
|
$
10,264
|
$
249
|
|
$
18,005
|
$
(916)
|
|
Net Income
(Loss)
|
$
1,287
|
$
(18,794)
|
|
$
22,609
|
$
(23,278)
|
|
Adjusted EBITDA
(1)
|
$
3,392
|
$
(8,402)
|
|
$
(2,464)
|
$
(21,088)
|
|
|
|
(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 reconciliations to the most comparable GAAP
measures.
|
Third Quarter 2023 Highlights
- Reported net income of $1.3
million, or $0.04 per diluted
share, compared to a net loss of $18.8
million or ($1.50) per diluted
share for the third quarter of 2022.
- Achieved positive adjusted EBITDA(1) of $3.4 million, an increase of $11.8 million compared to the third quarter of
2022. This is the ninth consecutive quarter of improvement and
marks the first quarter of positive adjusted EBITDA since the third
quarter of 2018.
- Reported gross profit of $9.0
million and adjusted gross profit(1) of
$10.3 million marking the third
consecutive quarter of positive results in both metrics. Gross
profit margin and adjusted gross profit margin(1) for
the third quarter of 2023 improved to 19% and 22%,
respectively.
- Strengthened liquidity through an Asset Based Loan, which was
increased from $10.0 million to
$13.8 million in October.
- Solidified the senior leadership team with the addition of four
key members that bring substantial experience and strategic focus
on sales, supply chain, people and data analytics.
- Completed move to new company headquarters, which is expected
to result in annual savings of approximately $1 million.
|
(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 reconciliations to the most comparable GAAP
measures.
|
Full Year 2023 Outlook
Flotek is updating its full year 2023 guidance as follows:
- Adjusted gross profit margin(2) is expected
to increase to 12% to 14%, up from the previous range of 8% to
10%.
- Total revenues are expected to be $185 million to $200
million, compared to a previous estimate of $210 million to $230
million. The decrease in revenue guidance is due to an
overall market slowdown in upstream onshore activity as reflected
by the reduction in drilling rigs and completion fleets operating.
Specifically, the U.S. land rig count is down 19% and frac fleet
activity is down 12% from the third quarter of 2022. Despite this
market slowdown, the Company's non-ProFrac chemistry revenues have
grown each quarter in 2023 and increased another 5% during the
third quarter of 2023.
|
|
|
(2)
|
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 reconciliations to the most comparable GAAP
measures. We are unable to reconcile this forward-looking non-GAAP
financial measure to the most directly comparable GAAP financial
measure without unreasonable efforts, as we are unable to predict
with a reasonable degree of certainty the impact of certain items
that would be expected to impact the GAAP financial measure,
including, among other items, the future amortization of our
contract assets, certain stock-based compensation costs and the
impact of the revaluation of certain liabilities, which is based
upon our future stock price. These items do not impact the non-GAAP
financial measure.
|
Management Commentary
Chief Executive Officer Dr. Ryan
Ezell commented, "I'm pleased with our third quarter results
as we delivered significant improvement in nearly all financial
metrics highlighted by quarterly adjusted EBITDA turning positive
for the first time in five years. These results build upon the
strong financial and operational momentum we have established this
year through the execution of our strategy to be the collaborative
partner of choice for innovative chemical and data solutions. We
also achieved a significant milestone with the closing of an Asset
Based Loan that augments our liquidity and supports our future
business and growth objectives. Most importantly, we executed these
milestones with no recordable safety incidents in the field of
operations."
"We continue to expand our market share and margins despite
industry headwinds as the importance of maximized production and
rate-of-return for each well completion moves to the forefront of
focus for operators. This plays to the strength of Flotek's
differentiated technologies that target improved recovery from each
reservoir."
Third Quarter 2023 Financial Results
- Revenue: Flotek reported total revenues of $47.3 million for the third quarter of 2023,
which was an increase of 4% compared to total revenues of
$45.6 million for the third quarter
of 2022. The Company's non-ProFrac chemistry revenues have grown
each quarter in 2023 and increased 23% as compared to the year ago
quarter. Revenues not attributable to ProFrac comprised 38% of
total company revenues during the third quarter of 2023.
The Company's supply agreement with ProFrac contains minimum
requirements for annual chemistry purchases. If the minimum
contractual requirements are not met, the Company receives
additional payments from ProFrac at the conclusion of the
measurement period, which is currently June
1, 2023 through December 31,
2023. Based on recent activity, Flotek does not expect that
the chemistry purchase requirements will be met during the
measurement period, and as a result, third quarter and nine-month
2023 revenues include estimated expected additional payments from
ProFrac under the contract.
- Gross Profit (Loss): The Company generated gross profit
of $9.0 million during the third
quarter of 2023 as compared to a gross loss of $1.8 million for the third quarter of 2022. The
improvement in third quarter of 2023 gross profit was the result of
the estimated additional payments expected from ProFrac related to
the minimum chemistry purchase requirements discussed above as well
as the increase in transactional chemistry revenue during the
quarter and continued initiatives to drive further cost
improvements with respect to freight logistics and materials.
- Adjusted Gross Profit (Non-GAAP)(1): Flotek
generated adjusted gross profit of $10.3
million during the third quarter of 2023 compared to
adjusted gross profit of $0.2 million
for the third quarter of 2022. Adjusted gross profit for the nine
months ended September 30, 2023,
increased to $18.0 million as
compared to a loss of $0.9 million
for the nine-month period of 2022. Adjusted gross profit primarily
excludes non-cash items, including amortization of contract assets,
which reduces both revenue and gross profit.
- Selling, General and Administrative ("SG&A")
Expense: SG&A expense totaled $6.5
million for the third quarter of 2023 compared to
$9.3 million for the third quarter of
2022. The 30% reduction in SG&A compared to the third quarter
of 2022 was primarily the result of lower employee compensation
expense as well as reduced legal and professional fees.
- Net Income (Loss) and EPS: Flotek reported net income of
$1.3 million, or $0.04 per diluted share, for the third quarter of
2023. This compares to a net loss of $18.8
million, or ($1.50) per
diluted share, for the third quarter of 2022. Net income for the
nine-month period ended September 30,
2023 was $22.6 million as
compared to a net loss of $23.3
million for the comparable period of 2022. Net income/(loss)
for the third quarter of 2022 and nine-month periods of 2023 and
2022 included non-cash gains/(losses) on the fair value measurement
of convertible notes payable totaling ($4.3)
million, $30.0 million, and
$9.0 million, respectively.
- Adjusted EBITDA (Non-GAAP)(1): Adjusted
EBITDA was $3.4 million in the third
quarter of 2023 as compared to negative $8.4
million in the third quarter of 2022.
|
(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 comparable GAAP measures.
|
Balance Sheet and Liquidity
On August 14, 2023, the Company
announced that it entered into an Asset Based Loan, providing
initial credit availability of up to $10.0
million. During October, the credit availability was
increased to $13.8 million based on
the final appraised value of certain real estate assets pledged as
collateral.
As of November 6, 2023, the
Company's liquidity totaled $9.0
million, consisting of $2.6
million of cash and cash equivalents and $6.4 million of availability under the Asset
Based Loan.
Conference Call Details
Flotek will host a conference call on November 8, 2023, at 9:00
a.m. CDT (10:00 a.m. EDT) to
discuss its third quarter 2023 results. Participants may access the
call through Flotek's website at www.flotekind.com under
"Webcasts'' or by telephone toll free at 1-844-835-9986
(international toll: 1-412-317-5270) 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.
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 15 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)
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
4,453
|
|
$
12,290
|
|
Restricted
cash
|
102
|
|
100
|
|
Accounts receivable,
net of allowance for credit losses of $704 and $623 at
September 30, 2023 and December 31, 2022,
respectively
|
15,568
|
|
19,136
|
|
Accounts receivable,
related party, net of allowance for credit losses of $0 at
September 30, 2023 and December 31, 2022,
respectively
|
24,765
|
|
22,683
|
|
Inventories,
net
|
15,885
|
|
15,720
|
|
Other current
assets
|
4,617
|
|
4,045
|
|
Current contract
asset
|
7,816
|
|
7,113
|
|
Total current
assets
|
73,206
|
|
81,087
|
|
Long-term contract
assets
|
68,207
|
|
72,576
|
|
Property and equipment,
net
|
4,844
|
|
4,826
|
|
Operating lease
right-of-use assets
|
5,131
|
|
5,900
|
|
Deferred tax assets,
net
|
355
|
|
404
|
|
Other long-term
assets
|
773
|
|
17
|
|
TOTAL
ASSETS
|
$
152,516
|
|
$
164,810
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
33,436
|
|
$
33,375
|
|
Accrued
liabilities
|
5,430
|
|
8,984
|
|
Income taxes
payable
|
43
|
|
97
|
|
Interest
payable
|
—
|
|
130
|
|
Current portion of
operating lease liabilities
|
2,747
|
|
3,328
|
|
Current portion of
finance lease liabilities
|
31
|
|
36
|
|
Current portion of
long-term debt
|
179
|
|
2,052
|
|
Asset based
loan
|
3,370
|
|
—
|
|
Convertible notes
payable
|
—
|
|
19,799
|
|
Contract Consideration
Convertible Notes Payable
|
—
|
|
83,570
|
|
Total current
liabilities
|
45,236
|
|
151,371
|
|
Deferred revenue,
long-term
|
35
|
|
44
|
|
Long-term operating
lease liabilities
|
7,537
|
|
8,044
|
|
Long-term finance lease
liabilities
|
—
|
|
19
|
|
Long-term
debt
|
104
|
|
2,736
|
|
TOTAL
LIABILITIES
|
52,912
|
|
162,214
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.0001 par value, 100,000 shares authorized; no shares issued
and
outstanding
|
—
|
|
—
|
|
Common stock, $0.0001
par value, 240,000,000 shares authorized; 30,739,820
shares issued and 29,629,902 shares outstanding
at September 30, 2023;
13,985,986 shares issued and 12,964,732 shares
outstanding at December 31,
2022
|
3
|
|
1
|
|
Additional paid-in
capital
|
462,799
|
|
388,184
|
|
Accumulated other
comprehensive income
|
194
|
|
181
|
|
Accumulated
deficit
|
(328,910)
|
|
(351,519)
|
|
Treasury stock, at
cost; 1,109,918 and 1,021,255 shares at September 30, 2023 and
December 31, 2022, respectively
|
(34,482)
|
|
(34,251)
|
|
Total stockholders'
equity
|
99,604
|
|
2,596
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
152,516
|
|
$
164,810
|
|
FLOTEK INDUSTRIES,
INC.
Unaudited Condensed
Consolidated Statements of Operations
(in thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
9/30/2023
|
|
9/30/2022
|
|
9/30/2023
|
|
9/30/2022
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Revenue from external
customers
|
$
17,806
|
|
$
15,206
|
|
$
47,278
|
|
$
38,412
|
|
Revenue from related
party
|
29,462
|
|
30,417
|
|
98,592
|
|
49,462
|
|
Total
revenues
|
47,268
|
|
45,623
|
|
145,870
|
|
87,874
|
|
Cost of goods
sold
|
38,221
|
|
47,465
|
|
131,037
|
|
92,500
|
|
Gross profit
(loss)
|
9,047
|
|
(1,842)
|
|
14,833
|
|
(4,626)
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
6,526
|
|
9,254
|
|
21,303
|
|
20,958
|
|
Depreciation
|
181
|
|
177
|
|
530
|
|
554
|
|
Research and
development
|
757
|
|
985
|
|
2,231
|
|
3,515
|
|
Severance
costs
|
2
|
|
(219)
|
|
(28)
|
|
387
|
|
Gain on sale of
property and equipment
|
(38)
|
|
(10)
|
|
(38)
|
|
(1,916)
|
|
Gain on lease
termination
|
—
|
|
—
|
|
—
|
|
(584)
|
|
(Gain) loss in fair
value of Contract Consideration Convertible Notes
Payable
|
—
|
|
4,250
|
|
(29,969)
|
|
(9,016)
|
|
Total operating costs
and expenses
|
7,428
|
|
14,437
|
|
(5,971)
|
|
13,898
|
|
Income (loss) from
operations
|
1,619
|
|
(16,279)
|
|
20,804
|
|
(18,524)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Paycheck protection
plan loan forgiveness
|
—
|
|
—
|
|
4,522
|
|
—
|
|
Interest
expense
|
(160)
|
|
(2,321)
|
|
(2,537)
|
|
(4,586)
|
|
Other expense,
net
|
(91)
|
|
(187)
|
|
(82)
|
|
(67)
|
|
Total other income
(expense), net
|
(251)
|
|
(2,508)
|
|
1,903
|
|
(4,653)
|
|
Income (loss) before
income taxes
|
1,368
|
|
(18,787)
|
|
22,707
|
|
(23,177)
|
|
Income tax
expense
|
(81)
|
|
(7)
|
|
(98)
|
|
(101)
|
|
Net income
(loss)
|
$
1,287
|
|
$
(18,794)
|
|
$
22,609
|
|
$
(23,278)
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.04
|
|
$
(1.50)
|
|
$
0.97
|
|
$
(1.89)
|
|
Diluted
|
$
0.04
|
|
$
(1.50)
|
|
$
(0.18)
|
|
$
(1.89)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in computing basic income
(loss) per common share
|
29,358
|
|
12,552
|
|
23,291
|
|
12,349
|
|
Weighted average
common shares used in computing diluted income
(loss) per common share
|
30,688
|
|
12,552
|
|
28,034
|
|
12,349
|
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
|
|
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
$
22,609
|
|
$
(23,278)
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
Change in fair value
of contingent consideration
|
(384)
|
|
(106)
|
|
Change in fair value
of Contract Consideration Convertible Notes Payable
|
(29,969)
|
|
(9,016)
|
|
Amortization of
convertible note issuance costs
|
83
|
|
663
|
|
Payment-in-kind
interest expense
|
2,284
|
|
3,861
|
|
Amortization of
contract assets
|
3,665
|
|
1,986
|
|
Depreciation and
amortization
|
530
|
|
554
|
|
Amortization of asset
based loan origination costs
|
36
|
|
—
|
|
Provision for credit
losses, net of recoveries
|
97
|
|
147
|
|
Provision for excess
and obsolete inventory
|
626
|
|
1,702
|
|
Gain on sale of
property and equipment
|
(38)
|
|
(1,916)
|
|
Gain on lease
termination
|
—
|
|
(584)
|
|
Non-cash lease
expense
|
2,316
|
|
168
|
|
Stock compensation
expense
|
(565)
|
|
2,262
|
|
Deferred income tax
(benefit) expense
|
50
|
|
1
|
|
Paycheck protection
plan loan forgiveness
|
(4,522)
|
|
—
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
3,472
|
|
(5,748)
|
|
Accounts receivable,
related party
|
(2,082)
|
|
(24,616)
|
|
Inventories
|
(776)
|
|
(11,373)
|
|
Income taxes
receivable
|
—
|
|
3
|
|
Other
assets
|
(863)
|
|
(537)
|
|
Contract assets,
net
|
—
|
|
(3,600)
|
|
Accounts
payable
|
60
|
|
22,036
|
|
Accrued
liabilities
|
(3,179)
|
|
493
|
|
Operating lease
liabilities
|
(2,636)
|
|
(404)
|
|
Income taxes
payable
|
(54)
|
|
100
|
|
Interest
payable
|
(8)
|
|
36
|
|
Net cash used in
operating activities
|
(9,248)
|
|
(47,166)
|
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(continued)
|
|
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(593)
|
|
(175)
|
|
Proceeds from sale of
assets
|
68
|
|
4,215
|
|
Net cash (used in)
provided by investing activities
|
(525)
|
|
4,040
|
|
Cash flows from
financing activities:
|
|
|
|
|
Payment for forfeited
stock options
|
(617)
|
|
—
|
|
Payments on long term
debt
|
(104)
|
|
—
|
|
Proceeds from asset
based loan
|
27,750
|
|
—
|
|
Payments on asset
based loan
|
(24,380)
|
|
—
|
|
Payment for
origination costs of asset based loan
|
(502)
|
|
—
|
|
Proceeds from issuance
of convertible notes
|
—
|
|
21,150
|
|
Payment of issuance
costs of convertible notes
|
—
|
|
(1,084)
|
|
Proceeds from issuance
of warrants
|
—
|
|
19,500
|
|
Payment of issuance
costs of stock warrants
|
—
|
|
(1,170)
|
|
Payments to tax
authorities for shares withheld from employees
|
(246)
|
|
(191)
|
|
Proceeds from issuance
of stock
|
48
|
|
24
|
|
Payments for finance
leases
|
(24)
|
|
(30)
|
|
Net cash provided by
financing activities
|
1,925
|
|
38,199
|
|
Effect of changes in
exchange rates on cash and cash equivalents
|
13
|
|
211
|
|
Net change in cash
and cash equivalents and restricted cash
|
(7,835)
|
|
(4,716)
|
|
Cash and cash
equivalents at the beginning of period
|
12,290
|
|
11,534
|
|
Restricted cash at the
beginning of period
|
100
|
|
1,790
|
|
Cash and cash
equivalents and restricted cash at beginning of
period
|
12,390
|
|
13,324
|
|
Cash and cash
equivalents at end of period
|
4,453
|
|
8,508
|
|
Restricted cash at the
end of period
|
102
|
|
100
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
4,555
|
|
$
8,608
|
|
FLOTEK INDUSTRIES,
INC.
Unaudited
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings
(in
thousands)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
9/30/2023
|
|
9/30/2022
|
|
9/30/2023
|
|
9/30/2022
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
$
9,047
|
|
$
(1,842)
|
|
$
14,833
|
|
$
(4,626)
|
|
Stock compensation
expense
|
2
|
|
256
|
|
(135)
|
|
783
|
|
Severance and
retirement
|
—
|
|
(478)
|
|
26
|
|
11
|
|
Contingent liability
revaluation
|
(61)
|
|
28
|
|
(384)
|
|
(106)
|
|
Sanitizer inventory
write down
|
—
|
|
1,036
|
|
—
|
|
1,036
|
|
Amortization of
contract assets
|
1,276
|
|
1,249
|
|
3,665
|
|
1,986
|
|
Adjusted Gross
profit (loss) (1)
|
$
10,264
|
|
$
249
|
|
$
18,005
|
|
$
(916)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
1,287
|
|
$
(18,794)
|
|
$
22,609
|
|
$
(23,278)
|
|
Interest
expense
|
160
|
|
2,321
|
|
2,537
|
|
4,586
|
|
Income tax
expense
|
81
|
|
7
|
|
98
|
|
101
|
|
Depreciation and
amortization
|
181
|
|
177
|
|
530
|
|
554
|
|
EBITDA
(Non-GAAP)
|
$
1,709
|
|
$
(16,289)
|
|
$
25,774
|
|
$
(18,037)
|
|
Stock compensation
expense
|
268
|
|
671
|
|
(574)
|
|
2,263
|
|
Severance and
retirement
|
2
|
|
(219)
|
|
(28)
|
|
387
|
|
Contingent liability
revaluation
|
(61)
|
|
28
|
|
(384)
|
|
(106)
|
|
Sanitizer inventory
write down
|
—
|
|
1,036
|
|
—
|
|
1,036
|
|
Gain on disposal of
assets
|
(38)
|
|
(10)
|
|
(38)
|
|
(1,916)
|
|
Gain on lease
termination
|
—
|
|
—
|
|
—
|
|
(584)
|
|
PPP loan
forgiveness
|
—
|
|
—
|
|
(4,522)
|
|
—
|
|
Contract Consideration
Convertible Notes Payable revaluation adjustment
|
—
|
|
4,250
|
|
(29,969)
|
|
(9,016)
|
|
Amortization of
contract assets
|
1,276
|
|
1,249
|
|
3,665
|
|
1,986
|
|
Non-Recurring
professional fees
|
236
|
|
882
|
|
3,612
|
|
2,899
|
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
3,392
|
|
$
(8,402)
|
|
$
(2,464)
|
|
$
(21,088)
|
|
|
|
(1)
|
Management believes
that adjusted gross profit and adjusted EBITDA for the three and
nine months ended September 30, 2023 and 2022, are useful to
investors to assess and understand operating performance,
especially when comparing those results with previous and
subsequent periods. Management views the income and expenses
noted above to be outside of the Company's normal operating
results. Management analyses operating results without the
impact of the above items as an indicator of performance, to
identify underlying trends in the business and cash flow from
continuing operations, and to establish financial and operational
goals, excluding certain non-cash or non-recurring
items.
|
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SOURCE Flotek Industries, Inc.