HOUSTON, March 10,
2025 /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, 2024. Fourth
quarter 2024 results were the strongest quarterly results of 2024
in terms of revenue, gross profit, net income and adjusted EBITDA
(1).
Financial Summary (in thousands, except 'per share'
amounts)
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
$
50,758
|
|
$
42,188
|
|
$
187,025
|
|
$
188,058
|
|
Gross Profit
|
$
12,277
|
|
$
9,430
|
|
$
39,386
|
|
$
24,263
|
|
Net Income
|
$
4,429
|
|
$
2,104
|
|
$
10,498
|
|
$
24,713
|
|
Diluted Income (Loss)
Per Share
|
$
0.14
|
|
$
0.07
|
|
$
0.34
|
|
$
(0.10)
|
|
Adjusted EBITDA
(1)
|
$
7,023
|
|
$
3,952
|
|
$
20,327
|
|
$
1,488
|
Full-Year and Fourth Quarter 2024 Highlights
- Q4 2024 total revenue rose 20% vs. Q4 2023, led by a 21% jump
in external customer revenue—the highest in 5 years.
- Data analytics service revenue grew 124% vs. Q4 2023 and 44%
vs. full year 2023.
- Gross profit climbed 30% vs. Q4 2023 and 62% vs. full year
2023, with Q4 2024 gross margin rising to 24%.
- Q4 2024 net income was $4.4
million and adjusted EBITDA(1) totaled
$7.0 million, up 111% and 78%,
respectively, vs Q4 2023.
- 2024 net income hit $10.5 million
or $0.34/share, vs. a loss of
$(0.10)/share in 2023.
- 2024 adjusted EBITDA(1) reached $20.3 million, up $18.8
million from 2023—the highest since 2017—exceeding guidance
of $18.5 million by 10%.
Management Commentary
Chief Executive Officer Dr. Ryan
Ezell commented, "2024 marks a
significant step in the execution of our corporate strategy towards
the convergence between innovative Data and Chemistry solutions
that deliver outstanding value to our customers and external
stakeholders. This year, we not only achieved the highest
profitability metrics in nearly a decade but did so through
superior operational efficiency and service quality execution.
Additionally, our commitment to safety has shone through, with no
lost-time incidents recorded in the past three years.
We've expanded our technology portfolio with the introduction of
three cutting-edge Data Analytics solutions: VeraCal, JP3 Raman,
and XSPCT, systems specifically designed to address the unique
challenges of the energy and infrastructure sector while driving
high-margin growth into 2025 and beyond. In the fourth quarter, we
observed a significant transformation in our Data Analytics revenue
resulting in a 67% sequential increase in service revenue
furthering the shift from products to services.
Looking ahead, we expect that the integration of Data and
Chemistry at Flotek will provide exciting new innovations in the
energy and infrastructure market. These advancements are set to
empower our customers' assets to maximize returns, reduce costs,
automate processes, and leverage data in ways previously
unimaginable. We believe that our relentless pursuit to leverage
chemistry as the common value creation platform will position
Flotek as a leader in differentiated technologies and foster our
future growth."
Fourth Quarter and Full-Year 2024 Financial Results
- Revenue: Flotek reported total revenues of $50.8 million for fourth quarter 2024, an
increase of $8.6 million, or 20%,
compared to total revenues of $42.2
million for fourth quarter 2023. Full-year 2024 total
revenues totaled $187.0 million, as
compared to total revenues of $188.1
million during 2023. Fourth quarter and full year 2024
revenues include $8.6 million and
$32.4 million, respectively, related
to the minimum purchase requirements under the Company's long-term
supply agreement with ProFrac Services, LLC.
Segment Revenue Summary (in thousands)
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Chemistry
Technologies:
|
|
|
|
|
|
|
|
|
External
Revenues
|
$
21,071
|
|
$
17,996
|
|
$
63,214
|
|
$
59,016
|
|
Related Party
Revenues
|
27,215
|
|
22,769
|
|
114,947
|
|
120,903
|
|
Total
|
$
48,286
|
|
$
40,765
|
|
$
178,161
|
|
$
179,919
|
|
|
|
|
|
|
|
|
|
Data
Analytics:
|
|
|
|
|
|
|
|
|
Product
Revenues
|
$
826
|
|
$
688
|
|
$
4,745
|
|
$
5,277
|
|
Service
Revenues
|
1,646
|
|
735
|
|
4,119
|
|
2,862
|
|
Total
|
$
2,472
|
|
$
1,423
|
|
$
8,864
|
|
$
8,139
|
- Gross Profit: The Company generated gross profit of
$12.3 million during fourth quarter
2024 compared to a gross profit of $9.4
million during fourth quarter 2023. The improvement in
fourth quarter 2024 gross profit was primarily the result of
successful initiatives throughout 2024 to drive cost reductions
with respect to freight, logistics and materials combined with an
18% increase in chemistry revenue and a 74% increase in data
analytics revenue, as compared to fourth quarter 2023.
The Company generated gross profit of $39.4
million for full-year 2024 compared to gross profit of
$24.3 million for full-year
2023.
- Selling, General and Administrative ("SG&A")
Expense: SG&A expense totaled $6.6
million for the fourth quarters of 2024 and 2023. SG&A
expense totaled $24.7 million for
full-year 2024 compared to $27.8
million for full-year 2023, an 11% reduction year-over-year.
Excluding non-cash stock compensation expense, 2024 SG&A
expense is 17% lower than 2023.
- Net Income (Loss) and EPS: Flotek reported net income of
$4.4 million, or $0.14 per diluted share, for the fourth quarter
2024. This compares to net income of $2.1
million, or $0.07 per diluted
share, for the fourth quarter 2023. Net income for full-year 2024
was $10.5 million, or $0.34 per diluted share, compared to net income
(loss) of $24.7 million, or
($0.10) per diluted share, for the
comparable period of 2023. Net income for full-year 2023 included
non-cash gains related to the fair value measurement of convertible
notes payable and a PPP loan forgiveness totaling $34.5 million.
- Adjusted EBITDA (Non-GAAP)(1):
Adjusted EBITDA(1) was $7.0
million in fourth quarter 2024 as compared to $4.0 million in fourth quarter 2023. Adjusted
EBITDA(1) was $20.3
million for full-year 2024 compared to $1.5 million for full-year 2023.
|
(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.
|
2025 Guidance
Consistent with 2024 and 2023, Flotek plans to issue 2025
guidance in conjunction with the release of its first quarter 2025
financial and operating results.
Upcoming Investor Event
Flotek will participate in the 37th Annual Roth Conference to be
held at the Marriott in Laguna Dana
Point, California, March 17-18,
2025. Flotek Chief Executive Officer, Ryan Ezell, will participate in an industry
panel discussion on March 17 at
10:00 a.m. PT and will be joined by
Chief Financial Officer, Bond Clement, in hosting one-on-one
meetings during the event. An updated corporate presentation to 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 11, 2025, at 9:00
a.m. CT (10:00 a.m. ET) to
discuss its fourth quarter and full-year 2024 results. Participants
may access the call through Flotek's website at www.flotekind.com
under "News" within the Investor Relations section, by telephone
toll free at 1-800-836-8184 (international toll: 1-646-357-8785),
or by using the following link to access the audience view of the
webcast at https://app.webinar.net/qDjWg9qga1Y 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 a leading chemistry and data
technology company focused on servicing the Energy industry. The
Company's top tier technologies leverage near real-time data to
deliver innovative solutions to maximize customer returns. Flotek
has an intellectual property portfolio of over 130 patents, 20+
years of field and laboratory data, and a global presence in more
than 59 countries.
Flotek has established collaborative partnerships focused on
sustainable and optimized chemistry and data solutions, aiming to
reduce the environmental impact of energy on land, air, water and
people.
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,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
4,404
|
|
$
5,851
|
|
Restricted
cash
|
102
|
|
102
|
|
Accounts receivable,
net of allowance for credit losses of $447 and $745 at
December 31, 2024 and December 31, 2023,
respectively
|
17,386
|
|
13,687
|
|
Accounts receivable,
related party, net of allowance for credit losses of $0 at
each of December 31, 2024 and December 31, 2023,
respectively
|
52,370
|
|
34,569
|
|
Inventories,
net
|
13,303
|
|
12,838
|
|
Other current
assets
|
2,952
|
|
3,564
|
|
Current contract
asset
|
5,939
|
|
5,836
|
|
Total current
assets
|
96,456
|
|
76,447
|
|
Long-term contract
asset
|
63,105
|
|
68,820
|
|
Property and equipment,
net
|
6,178
|
|
5,129
|
|
Operating lease
right-of-use assets
|
3,326
|
|
5,030
|
|
Deferred tax assets,
net
|
51
|
|
300
|
|
Other long-term
assets
|
1,680
|
|
1,787
|
|
TOTAL
ASSETS
|
$
170,796
|
|
$
157,513
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
38,073
|
|
$
31,705
|
|
Accrued
liabilities
|
5,912
|
|
5,890
|
|
Income taxes
payable
|
48
|
|
45
|
|
Current portion of
operating lease liabilities
|
1,486
|
|
2,449
|
|
Current portion of
finance lease liabilities
|
—
|
|
22
|
|
Asset-based
loan
|
4,789
|
|
7,492
|
|
Current portion of
long-term debt
|
60
|
|
179
|
|
Total current
liabilities
|
50,368
|
|
47,782
|
|
Deferred revenue,
long-term
|
14
|
|
35
|
|
Long-term operating
lease liabilities
|
6,514
|
|
7,676
|
|
Long-term
debt
|
—
|
|
60
|
|
TOTAL
LIABILITIES
|
56,896
|
|
55,553
|
|
Commitments and
contingencies
|
|
|
|
|
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;
30,938,073 shares issued and 29,826,508 shares
outstanding at
December 31, 2024; 30,772,837 shares issued and
29,664,130 shares
outstanding at December 31,
2023
|
3
|
|
3
|
|
Additional paid-in
capital
|
464,620
|
|
463,140
|
|
Accumulated other
comprehensive income
|
251
|
|
127
|
|
Accumulated
deficit
|
(316,308)
|
|
(326,806)
|
|
Treasury stock, at
cost; 1,111,565 and 1,108,707 shares at December 31,
2024 and December 31, 2023,
respectively
|
(34,666)
|
|
(34,504)
|
|
Total stockholders'
equity
|
113,900
|
|
101,960
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
170,796
|
|
$
157,513
|
|
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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Revenue from external
customers
|
$
23,328
|
|
$
19,239
|
|
$
71,263
|
|
$
66,518
|
|
Revenue from related
party
|
27,430
|
|
22,949
|
|
115,762
|
|
121,540
|
|
Total
revenues
|
50,758
|
|
42,188
|
|
187,025
|
|
188,058
|
|
Cost of goods
sold
|
38,481
|
|
32,758
|
|
147,639
|
|
163,795
|
|
Gross
profit
|
12,277
|
|
9,430
|
|
39,386
|
|
24,263
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
6,630
|
|
6,552
|
|
24,709
|
|
27,827
|
|
Depreciation
|
229
|
|
204
|
|
891
|
|
734
|
|
Research and
development
|
365
|
|
255
|
|
1,714
|
|
2,486
|
|
Gain on sale of
property and equipment
|
(90)
|
|
—
|
|
(124)
|
|
(38)
|
|
Gain in fair value of
Contract Consideration
Convertible Notes Payable
|
—
|
|
—
|
|
—
|
|
(29,969)
|
|
Total operating costs
and expenses
|
7,134
|
|
7,011
|
|
27,190
|
|
1,040
|
|
Income from
operations
|
5,143
|
|
2,419
|
|
12,196
|
|
23,223
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Paycheck protection
plan loan forgiveness
|
—
|
|
—
|
|
—
|
|
4,522
|
|
Interest
expense
|
(253)
|
|
(320)
|
|
(1,095)
|
|
(2,857)
|
|
Other income
(expense), net
|
(105)
|
|
56
|
|
46
|
|
(26)
|
|
Total other (expense)
income
|
(358)
|
|
(264)
|
|
(1,049)
|
|
1,639
|
|
Income before income
taxes
|
4,785
|
|
2,155
|
|
11,147
|
|
24,862
|
|
Income tax
expense
|
(356)
|
|
(51)
|
|
(649)
|
|
(149)
|
|
Net
income
|
$
4,429
|
|
$
2,104
|
|
$
10,498
|
|
$
24,713
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.15
|
|
$
0.07
|
|
$
0.36
|
|
$
1.00
|
|
Diluted
|
$
0.14
|
|
$
0.07
|
|
$
0.34
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in
computing basic income (loss) per common
share
|
29,642
|
|
29,396
|
|
29,534
|
|
24,830
|
|
Weighted average
common shares used in
computing diluted income (loss) per common
share
|
31,436
|
|
30,496
|
|
30,889
|
|
28,377
|
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
|
|
|
Twelve Months
Ended
December
31,
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
10,498
|
|
$
24,713
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
Change in fair value
of contingent consideration
|
71
|
|
(527)
|
|
Change in fair value
of Contract Consideration Convertible Notes Payable
|
—
|
|
(29,969)
|
|
Amortization of
convertible note issuance costs
|
—
|
|
83
|
|
Payment-in-kind
interest expense
|
—
|
|
2,284
|
|
Amortization of
contract asset
|
5,612
|
|
5,033
|
|
Depreciation
|
891
|
|
734
|
|
Amortization of
asset-based loan origination costs
|
314
|
|
121
|
|
Provision for credit
losses, net of recoveries
|
181
|
|
138
|
|
Provision for excess
and obsolete inventory
|
645
|
|
959
|
|
Gain on sale of
property and equipment
|
(124)
|
|
(38)
|
|
Non-cash lease
expense
|
2,094
|
|
3,014
|
|
Stock compensation
expense
|
1,366
|
|
(254)
|
|
Deferred income tax
expense
|
249
|
|
104
|
|
Paycheck protection
plan loan forgiveness
|
—
|
|
(4,522)
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(3,880)
|
|
5,311
|
|
Accounts receivable,
related party
|
(17,801)
|
|
(11,886)
|
|
Inventories
|
(1,110)
|
|
1,938
|
|
Income taxes
receivable
|
8
|
|
—
|
|
Other
assets
|
561
|
|
(836)
|
|
Accounts
payable
|
6,368
|
|
(1,670)
|
|
Accrued
liabilities
|
(70)
|
|
(2,575)
|
|
Operating lease
liabilities
|
(2,515)
|
|
(3,391)
|
|
Income taxes
payable
|
3
|
|
(53)
|
|
Interest
payable
|
—
|
|
(8)
|
|
Net cash provided by
(used in) operating activities
|
3,361
|
|
(11,297)
|
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(continued)
|
|
|
Twelve Months
Ended
December
31,
|
|
2024
|
|
2023
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(1,940)
|
|
(1,081)
|
|
Proceeds from sale of
assets
|
124
|
|
67
|
|
Net cash used in
investing activities
|
(1,816)
|
|
(1,014)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Payment for forfeited
stock options
|
—
|
|
(617)
|
|
Payments on long term
debt
|
(179)
|
|
(149)
|
|
Proceeds from
asset-based loan
|
166,950
|
|
68,716
|
|
Payments on
asset-based loan
|
(169,653)
|
|
(61,224)
|
|
Payment of asset-based
loan origination costs
|
(164)
|
|
(574)
|
|
Payments to tax
authorities for shares withheld from employees
|
(162)
|
|
(268)
|
|
Proceeds from issuance
of stock under Employee Stock Purchase Plan
|
114
|
|
77
|
|
Payments for finance
leases
|
(22)
|
|
(33)
|
|
Net cash (used in)
provided by financing activities
|
(3,116)
|
|
5,928
|
|
Effect of changes in
exchange rates on cash and cash equivalents
|
124
|
|
(54)
|
|
Net change in cash
and cash equivalents and restricted cash
|
(1,447)
|
|
(6,437)
|
|
Cash and cash
equivalents at the beginning of period
|
5,851
|
|
12,290
|
|
Restricted cash at the
beginning of period
|
102
|
|
100
|
|
Cash and cash
equivalents and restricted cash at beginning of
period
|
5,953
|
|
12,390
|
|
Cash and cash
equivalents at end of period
|
4,404
|
|
5,851
|
|
Restricted cash at the
end of period
|
102
|
|
102
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
4,506
|
|
$
5,953
|
|
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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
12,277
|
|
$
9,430
|
|
$
39,386
|
|
$
24,263
|
|
Stock compensation
expense
|
15
|
|
3
|
|
24
|
|
(132)
|
|
Severance and
retirement
|
2
|
|
3
|
|
11
|
|
29
|
|
Contingent liability
revaluation
|
117
|
|
(143)
|
|
71
|
|
(527)
|
|
Amortization of
contract asset
|
1,271
|
|
1,368
|
|
5,612
|
|
5,033
|
|
Adjusted Gross
profit (Non-GAAP) (1)
|
$
13,682
|
|
$
10,661
|
|
$
45,104
|
|
$
28,666
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
4,429
|
|
$
2,104
|
|
$
10,498
|
|
$
24,713
|
|
Interest
expense
|
253
|
|
320
|
|
1,095
|
|
2,857
|
|
Income tax
expense
|
356
|
|
51
|
|
649
|
|
149
|
|
Depreciation and
amortization
|
229
|
|
204
|
|
891
|
|
734
|
|
EBITDA (Non-GAAP)
(1)
|
$
5,267
|
|
$
2,679
|
|
$
13,133
|
|
$
28,453
|
|
Stock compensation
expense
|
451
|
|
307
|
|
1,366
|
|
(268)
|
|
Severance and
retirement
|
7
|
|
10
|
|
39
|
|
(17)
|
|
Contingent liability
revaluation
|
117
|
|
(143)
|
|
71
|
|
(527)
|
|
Gain on disposal of
assets
|
(90)
|
|
—
|
|
(124)
|
|
(38)
|
|
PPP loan
forgiveness
|
—
|
|
—
|
|
—
|
|
(4,522)
|
|
Contract Consideration
Convertible Notes Payable revaluation adjustment
|
—
|
|
—
|
|
—
|
|
(29,969)
|
|
Amortization of
contract asset
|
1,271
|
|
1,368
|
|
5,612
|
|
5,033
|
|
Non-Recurring
professional fees
|
—
|
|
(269)
|
|
230
|
|
3,343
|
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
7,023
|
|
$
3,952
|
|
$
20,327
|
|
$
1,488
|
|
|
|
(1)
|
Management believes
that adjusted gross profit, EBITDA and adjusted EBITDA for the
three and twelve months ended December 31, 2024 and 2023, 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.
|
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SOURCE Flotek Industries, Inc.
