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).
Financial Summary (in thousands)
|
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,
including reconciliations to the
most comparable GAAP measures.
|
Full-Year 2023 Highlights
- Reported net income of $24.7
million, a $67.0 million
year-over-year improvement, compared to a net loss of $42.3 million for 2022.
- Delivered year-over-year improvements in gross profit, adjusted
gross profit(1) and adjusted EBITDA(1) of
$31.0 million, $30.6 million and $27.7
million, respectively, marking the first year of positive
adjusted EBITDA(1) since 2017.
- Full year revenue of $188.1
million increased 38% compared to 2022 revenue of
$136.1 million. Chemistry revenue
from external customers increased 21% over 2022 revenue despite the
backdrop of a slowing upstream completion environment.
- Generated strong growth in data analytics segment as JP3
revenues grew 47% to $8.1 million
over 2022 revenues of $5.5
million.
- Strengthened liquidity through an up to $13.8 million Asset Based Loan ("ABL").
- Solidified the senior leadership team through the appointment
of Dr. Ryan Ezell as Chief Executive
Officer and the previous executive announcements.
- Material weakness and going concern issues identified in
connection with the 2022 audit are expected to be resolved.
|
(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.
|
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
- Revenue: Flotek reported total revenues of $42.2 million for the fourth quarter 2023, which
was a decrease of $6.0 million, or
13%, compared to total revenues of $48.2
million for the fourth quarter 2022. The decline in revenue
as compared to the fourth quarter 2022 was the result of lower
North American land completion activity during the fourth quarter
2023 partially offset by a 28% increase in chemistry revenues from
external customers during the fourth quarter 2023 as compared to
the 2022 period. Flotek reported total revenues of $188.1 million for the full-year 2023, which was
an increase of $52.0 million, or 38%,
compared to total revenues of $136.1
million for the full-year 2022. The Company's fourth quarter
and full-year 2023 revenues included amounts attributable to the
minimum chemistry purchase requirements contained in the ProFrac
supply agreement.
- Gross Profit (Loss): The Company generated gross profit
of $9.4 million during the fourth
quarter 2023 as compared to a gross loss of $2.1 million for the fourth quarter 2022. The
improvement in fourth quarter 2023 gross profit was the result of
successful initiatives throughout 2023 to drive cost improvements
with respect to freight, logistics and materials, the increase in
chemistry revenues from external customers as well as revenue
attributable to the minimum chemistry purchase requirements
contained in the ProFrac supply agreement.
- The Company generated gross profit of $24.3 million for the full-year 2023 compared to
a gross loss of $6.7 million for the
full-year 2022. The improvement in full-year 2023 gross profit was
the result of the 38% increase in revenues combined with numerous
cost improvements implemented during 2023.
- Adjusted Gross Profit (Non-GAAP)(1):
Flotek generated adjusted gross profit(1) of
$10.7 million during the fourth
quarter 2023 compared to adjusted gross loss(1) of
$0.5 million for the fourth quarter
2022. Adjusted gross profit(1) for the full-year 2023
increased to $28.7 million compared
to a loss of $1.9 million for the
full-year 2022. Adjusted gross profit(1) excludes
non-cash items, primarily amortization of contract assets.
- Selling, General and Administrative ("SG&A")
Expense: SG&A expense totaled $6.6
million for the fourth quarter 2023 compared to $6.2 million for the fourth quarter 2022.
SG&A during the fourth quarter 2022 included a $1.9 million credit related to the reversal of a
bonus accrual. SG&A expense totaled $27.9 million for full year 2023 compared to
$27.1 million for full-year
2022.
- Net Income (Loss) and EPS: Flotek reported net income of
$2.1 million, or $0.07 per diluted share, for the fourth quarter
2023. This compares to a net loss of $19.0
million, or ($1.51) per
diluted share, for the fourth quarter 2022. Net income for the
full-year 2023 was $24.7 million, or
($0.10) per diluted share, compared
to a net loss of $42.3 million, or
($3.41) per diluted share, for the
comparable period of 2022. Net income (loss) for the fourth quarter
2022 and full-year 2023 and 2022 included non-cash gains (losses)
on the fair value measurement of convertible notes payable totaling
($8.9) million, $30.0 million, and $0.1
million, respectively.
- Adjusted EBITDA (Non-GAAP)(1):
Adjusted EBITDA(1) was $4.0
million in the fourth quarter 2023 as compared to negative
$5.1 million in the fourth quarter
2022. Adjusted EBITDA(1) was $1.5
million for full-year 2023 compared to negative $26.2 million for the full-year 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.
|
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
December 31, 2023 and December 31, 2022,
respectively
|
13,687
|
|
19,136
|
|
Accounts receivable,
related party, net of allowance for credit losses of $0 at
December 31, 2023 and December 31, 2022,
respectively
|
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
|
|
Operating lease
right-of-use assets
|
5,030
|
|
5,900
|
|
Deferred tax assets,
net
|
300
|
|
404
|
|
Other long-term
assets
|
1,787
|
|
1,030
|
|
TOTAL
ASSETS
|
$
157,513
|
|
$
164,810
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
31,705
|
|
$
33,375
|
|
Accrued
liabilities
|
5,890
|
|
8,984
|
|
Income taxes
payable
|
45
|
|
97
|
|
Interest
payable
|
—
|
|
130
|
|
Current portion of
operating lease liabilities
|
2,449
|
|
3,328
|
|
Current portion of
finance lease liabilities
|
22
|
|
36
|
|
Asset-based
loan
|
7,492
|
|
—
|
|
Current portion of
long-term debt
|
179
|
|
2,052
|
|
Convertible notes
payable
|
—
|
|
19,799
|
|
Contract Consideration
Convertible Notes Payable
|
—
|
|
83,570
|
|
Total current
liabilities
|
47,782
|
|
151,371
|
|
Deferred revenue,
long-term
|
35
|
|
44
|
|
Long-term operating
lease liabilities
|
7,676
|
|
8,044
|
|
Long-term finance lease
liabilities
|
—
|
|
19
|
|
Long-term
debt
|
60
|
|
2,736
|
|
TOTAL
LIABILITIES
|
55,553
|
|
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;
30,772,837 shares issued and 29,664,130 shares
outstanding at
December 31, 2023; 13,985,986 shares issued and
12,964,732 shares
outstanding at December 31, 2022
|
3
|
|
1
|
|
Additional paid-in
capital
|
463,140
|
|
388,184
|
|
Accumulated other
comprehensive income
|
127
|
|
181
|
|
Accumulated
deficit
|
(326,806)
|
|
(351,519)
|
|
Treasury stock, at
cost; 1,108,707 and 1,021,255 shares at December 31,
2023 and December 31, 2022, respectively
|
(34,504)
|
|
(34,251)
|
|
Total stockholders'
equity
|
101,960
|
|
2,596
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
157,513
|
|
$
164,810
|
|
FLOTEK INDUSTRIES,
INC.
Unaudited Condensed
Consolidated Statements of Operations
(in thousands,
except per share data)
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Revenue from external
customers
|
$
19,239
|
|
$
15,940
|
|
$
66,518
|
|
$
54,344
|
|
Revenue from related
party
|
22,949
|
|
32,277
|
|
121,540
|
|
81,748
|
|
Total
revenues
|
42,188
|
|
48,217
|
|
188,058
|
|
136,092
|
|
Cost of goods
sold
|
32,758
|
|
50,291
|
|
163,795
|
|
142,792
|
|
Gross profit
(loss)
|
9,430
|
|
(2,074)
|
|
24,263
|
|
(6,700)
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
6,570
|
|
6,166
|
|
27,873
|
|
27,124
|
|
Depreciation
|
204
|
|
180
|
|
734
|
|
734
|
|
Research and
development
|
255
|
|
922
|
|
2,486
|
|
4,438
|
|
Severance
costs
|
(19)
|
|
(387)
|
|
(46)
|
|
—
|
|
Gain on sale of
property and equipment
|
—
|
|
(1,000)
|
|
(38)
|
|
(2,916)
|
|
Gain on lease
termination
|
—
|
|
—
|
|
—
|
|
(584)
|
|
(Gain) loss in fair
value of Contract Consideration
Convertible Notes Payable
|
—
|
|
8,941
|
|
(29,969)
|
|
(75)
|
|
Total operating costs
and expenses
|
7,010
|
|
14,822
|
|
1,040
|
|
28,721
|
|
Income (loss) from
operations
|
2,420
|
|
(16,896)
|
|
23,223
|
|
(35,421)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Paycheck protection
plan loan forgiveness
|
—
|
|
—
|
|
4,522
|
|
—
|
|
Interest
expense
|
(320)
|
|
(2,465)
|
|
(2,857)
|
|
(7,051)
|
|
Other expense,
net
|
56
|
|
212
|
|
(26)
|
|
145
|
|
Total other income
(expense), net
|
(264)
|
|
(2,253)
|
|
1,639
|
|
(6,906)
|
|
Income (loss) before
income taxes
|
2,156
|
|
(19,149)
|
|
24,862
|
|
(42,327)
|
|
Income tax (expense)
benefit
|
(51)
|
|
123
|
|
(149)
|
|
22
|
|
Net income
(loss)
|
$
2,105
|
|
$
(19,026)
|
|
$
24,713
|
|
$
(42,305)
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
|
$
(1.51)
|
|
$
1.00
|
|
$
(3.41)
|
|
Diluted
|
$
0.07
|
|
$
(1.51)
|
|
$
(0.10)
|
|
$
(3.41)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in
computing basic income (loss) per common
share
|
29,396
|
|
12,567
|
|
24,830
|
|
12,404
|
|
Weighted average
common shares used in
computing diluted income (loss) per common
share
|
30,496
|
|
12,567
|
|
28,377
|
|
12,404
|
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
|
|
|
Twelve Months Ended
December 31,
|
|
2023
|
|
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
$
24,713
|
|
$
(42,305)
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
Change in fair value
of contingent consideration
|
(527)
|
|
(25)
|
|
Change in fair value
of Contract Consideration Convertible Notes Payable
|
(29,969)
|
|
(75)
|
|
Amortization of
convertible note issuance costs
|
83
|
|
1,002
|
|
Payment-in-kind
interest expense
|
2,284
|
|
5,956
|
|
Amortization of
contract assets
|
5,033
|
|
3,371
|
|
Depreciation and
amortization
|
734
|
|
734
|
|
Amortization of
asset-based loan origination costs
|
121
|
|
—
|
|
Provision for credit
losses, net of recoveries
|
138
|
|
203
|
|
Provision for excess
and obsolete inventory
|
959
|
|
1,734
|
|
Gain on sale of
property and equipment
|
(38)
|
|
(2,916)
|
|
Gain on lease
termination
|
—
|
|
(584)
|
|
Non-cash lease
expense
|
3,014
|
|
226
|
|
Stock compensation
expense
|
(254)
|
|
3,325
|
|
Deferred income tax
(benefit) expense
|
104
|
|
(125)
|
|
Paycheck protection
plan loan forgiveness
|
(4,522)
|
|
—
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
5,311
|
|
(7,342)
|
|
Accounts receivable,
related party
|
(11,886)
|
|
(21,383)
|
|
Inventories
|
1,938
|
|
(7,917)
|
|
Income taxes
receivable
|
—
|
|
14
|
|
Other
assets
|
(836)
|
|
(285)
|
|
Contract assets,
net
|
—
|
|
(3,600)
|
|
Accounts
payable
|
(1,670)
|
|
25,760
|
|
Accrued
liabilities
|
(2,575)
|
|
(34)
|
|
Operating lease
liabilities
|
(3,391)
|
|
(507)
|
|
Income taxes
payable
|
(53)
|
|
93
|
|
Interest
payable
|
(8)
|
|
48
|
|
Net cash used in
operating activities
|
(11,297)
|
|
(44,632)
|
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(continued)
|
|
|
Twelve Months Ended
December 31,
|
|
2023
|
|
2022
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(1,081)
|
|
(421)
|
|
Proceeds from sale of
assets
|
67
|
|
5,752
|
|
Net cash (used in)
provided by investing activities
|
(1,014)
|
|
5,331
|
|
Cash flows from
financing activities:
|
|
|
|
|
Payment for forfeited
stock options
|
(617)
|
|
—
|
|
Payments on long term
debt
|
(149)
|
|
—
|
|
Proceeds from
asset-based loan
|
68,716
|
|
—
|
|
Payments on
asset-based loan
|
(61,224)
|
|
—
|
|
Payment for
origination costs of asset-based loan
|
(574)
|
|
—
|
|
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
|
(268)
|
|
(224)
|
|
Proceeds from issuance
of stock
|
77
|
|
133
|
|
Payments for finance
leases
|
(33)
|
|
(38)
|
|
Net cash provided by
financing activities
|
5,928
|
|
38,267
|
|
Effect of changes in
exchange rates on cash and cash equivalents
|
(54)
|
|
100
|
|
Net change in cash
and cash equivalents and restricted cash
|
(6,437)
|
|
(934)
|
|
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
|
5,851
|
|
12,290
|
|
Restricted cash at the
end of period
|
102
|
|
100
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
5,953
|
|
$
12,390
|
|
FLOTEK INDUSTRIES,
INC.
Unaudited
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings
(in
thousands)
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
$
9,430
|
|
$
(2,074)
|
|
$
24,263
|
|
$
(6,700)
|
|
Stock compensation
expense
|
3
|
|
85
|
|
(132)
|
|
459
|
|
Severance and
retirement
|
3
|
|
—
|
|
29
|
|
3
|
|
Contingent liability
revaluation
|
(143)
|
|
81
|
|
(527)
|
|
(53)
|
|
Sanitizer inventory
write down
|
—
|
|
—
|
|
—
|
|
1,036
|
|
Amortization of
contract assets
|
1,368
|
|
1,386
|
|
5,033
|
|
3,371
|
|
Adjusted Gross
profit (loss) (Non-GAAP) (1)
|
$
10,661
|
|
$
(522)
|
|
$
28,666
|
|
$
(1,884)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
2,105
|
|
$
(19,026)
|
|
$
24,713
|
|
$
(42,305)
|
|
Interest
expense
|
320
|
|
2,465
|
|
2,857
|
|
7,051
|
|
Income tax
expense
|
51
|
|
(123)
|
|
149
|
|
(22)
|
|
Depreciation and
amortization
|
204
|
|
180
|
|
734
|
|
734
|
|
EBITDA (Non-GAAP)
(1)
|
$
2,680
|
|
$
(16,504)
|
|
$
28,453
|
|
$
(34,542)
|
|
Stock compensation
expense
|
307
|
|
1,062
|
|
(268)
|
|
3,325
|
|
Severance and
retirement
|
10
|
|
—
|
|
(17)
|
|
387
|
|
Contingent liability
revaluation
|
(143)
|
|
81
|
|
(527)
|
|
(25)
|
|
Sanitizer inventory
write down
|
—
|
|
—
|
|
—
|
|
1,036
|
|
Gain on disposal of
assets
|
—
|
|
(1,000)
|
|
(38)
|
|
(2,916)
|
|
Gain on lease
termination
|
—
|
|
—
|
|
—
|
|
(584)
|
|
PPP loan
forgiveness
|
—
|
|
—
|
|
(4,522)
|
|
—
|
|
Contract Consideration
Convertible Notes Payable revaluation adjustment
|
—
|
|
8,941
|
|
(29,969)
|
|
(75)
|
|
Amortization of
contract assets
|
1,368
|
|
1,386
|
|
5,033
|
|
3,371
|
|
Non-Recurring
professional fees
|
(269)
|
|
955
|
|
3,343
|
|
3,854
|
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
3,953
|
|
$
(5,079)
|
|
$
1,488
|
|
$
(26,169)
|
|
|
(1) Management believes
that adjusted gross profit, EBITDA and adjusted EBITDA for the
three and twelve months ended December 31, 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 analyzes 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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/flotek-reports-fourth-quarter-and-full-year-2023-results-highlighted-by-growth-in-all-profitability-metrics-including-a-31-million-improvement-in-annual-gross-profit-302087187.html
SOURCE Flotek Industries, Inc.