Flotek Industries, Inc. (NYSE:FTK) Q4 2020 Earnings Conference Call March 16, 2021 5:00 PM ET Company Participants Danielle Allen - Senior Vice President, Chief of Staff John Gibson - Chairman, CEO and President Mike Borton - Chief Financial Officer TengBeng Koid - President of Global Business Ryan Ezell - President of Chemistry Technologies Conference Call Participants Daniel Burke - Johnson Rice Poe Fratt - NOBLE Capital Markets Eric Swergold - Firestorm Capital John Bair - Ascend Wealth Advisors Operator ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Delaware 90-0023731 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-13270 (Exact name of registrant as specified in its charter) FLOTEK INDUSTRIES, INC. (713) 849-9911 (Registrant's telephone nu ...

Flotek Industries, Inc. (NYSE:FTK) Q3 2020 Earnings Conference Call November 17, 2020 12:00 PM ET Company Participants Danielle Allen - Senior Vice President, Chief of Staff John Gibson - Chairman, President & Chief Executive Officer TengBeng Koid - President of Global Business Ryan Ezell - President of Chemistry Technologies Michael Borton - Chief Financial Officer James Silas - Senior Vice President, Research & Innovation Conference Call Participants Joseph Von Meister - Intermarket Daniel Burke - Johnson ...

Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-13270 FLOTEK INDUSTRIES, INC. | Large accelerated filer | ☐ | Accelerated Filer | ☒ | | --- | --- | --- | --- | | Non-accelerated filer | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-13270 FLOTEK INDUSTRIES, INC. (Exact name of registrant as specified in its charter) | Delaware | | | 90-0023731 | | --- | --- | --- | --- | | ...

Flotek Industries, Inc. (NYSE:FTK) Q2 2020 Earnings Conference Call August 6, 2020 10:00 AM ET Company Participants Danielle Allen - Senior Vice President, Chief of Staff John Gibson - Chairman, Chief Executive Officer and President Michael Borton - Chief Financial Officer TengBeng Koid - President of Global Business Ryan Ezell - President of Chemistry Technologies Conference Call Participants Daniel Burke - Johnson Rice Eric Swergold - Firestorm capital Operator Ladies and gentlemen, greetings and welcome ...

PART I—FINANCIAL INFORMATION This section presents Flotek Industries, Inc.'s financial information, including consolidated financial statements and management's discussion [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Flotek Industries, Inc.'s unaudited condensed consolidated financial statements for Q1 2020, with detailed accounting notes [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Details Flotek's financial position, including assets, liabilities, and equity, for Q1 2020 and year-end 2019 | Metric (in thousands) | March 31, 2020 | December 31, 2019 | Change (vs. Dec 31, 2019) | | :-------------------- | :------------- | :---------------- | :------------------------ | | **Assets** | | | | | Cash and cash equivalents | $80,263 | $100,575 | -$20,312 (-20.2%) | | Accounts receivable, net | $13,297 | $15,638 | -$2,341 (-15.0%) | | Inventories, net | $16,322 | $23,210 | -$6,888 (-29.7%) | | Total current assets | $126,186 | $153,908 | -$27,722 (-18.0%) | | Property and equipment, net | $7,946 | $39,829 | -$31,883 (-80.1%) | | Operating lease right-of-use assets | $2,473 | $16,388 | -$13,915 (-84.9%) | | Other intangible assets, net | $0 | $20,323 | -$20,323 (-100.0%) | | **TOTAL ASSETS** | **$136,774** | **$230,600** | **-$93,826 (-40.7%)** | | **Liabilities** | | | | | Accounts payable | $8,556 | $16,231 | -$7,675 (-47.3%) | | Accrued liabilities | $8,320 | $24,552 | -$16,232 (-66.1%) | | Total current liabilities | $18,171 | $41,324 | -$23,153 (-56.0%) | | **Total liabilities** | **$28,069** | **$58,571** | **-$30,502 (-52.1%)** | | **Stockholders' Equity** | | | | | Total stockholders' equity | $108,705 | $172,029 | -$63,324 (-36.8%) | | **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | **$136,774** | **$230,600** | **-$93,826 (-40.7%)** | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Presents Flotek's consolidated statements of operations, detailing revenue, expenses, and net income/loss for Q1 2020 and 2019 | Metric (in thousands, except per share data) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | Change (YoY) | | :------------------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Revenue | $19,416 | $43,256 | -$23,840 (-55.1%) | | Operating expenses (excluding D&A) | $22,841 | $43,968 | -$21,127 (-48.1%) | | Corporate general and administrative | $4,493 | $7,281 | -$2,788 (-38.3%) | | Depreciation and amortization | $2,191 | $2,260 | -$69 (-3.1%) | | Research and development | $2,555 | $2,285 | +$270 (+11.8%) | | Impairment of fixed and long-lived assets | $57,454 | $0 | +$57,454 (N/A) | | Total costs and expenses | $89,501 | $56,891 | +$32,610 (+57.3%) | | Loss from operations | $(70,085) | $(13,635) | -$56,450 (-414.0%) | | Interest expense | $(4) | $(1,998) | +$1,994 (-99.8%) | | Loss before income taxes | $(70,136) | $(15,523) | -$54,613 (-351.8%) | | Income tax benefit | $6,169 | $311 | +$5,858 (+1883.6%) | | Loss from continuing operations | $(63,967) | $(15,212) | -$48,755 (-320.5%) | | Income from discontinued operations, net of tax | $0 | $46,074 | -$46,074 (-100.0%) | | Net (loss) income | $(63,967) | $30,862 | -$94,829 (-307.3%) | | Basic earnings (loss) per common share: Continuing operations | $(1.07) | $(0.26) | -$0.81 (-311.5%) | | Basic earnings (loss) per common share | $(1.07) | $0.53 | -$1.60 (-301.9%) | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Presents Flotek's consolidated statements of comprehensive income, detailing net income/loss and other comprehensive income for Q1 2020 and 2019 | Metric (in thousands) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | Change (YoY) | | :-------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Net (loss) income | $(63,967) | $30,862 | -$94,829 (-307.3%) | | Foreign currency translation adjustment | $(123) | $94 | -$217 (-230.9%) | | Comprehensive (loss) income | $(64,090) | $30,956 | -$95,046 (-307.0%) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents Flotek's consolidated statements of cash flows, detailing operating, investing, and financing activities for Q1 2020 and 2019 | Metric (in thousands) | Three months ended March 31, 2020 | Three months ended March 31, 2019 | Change (YoY) | | :-------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Net cash used in operating activities | $(20,496) | $(25,061) | +$4,565 (+18.2%) | | Net cash (used in) provided by investing activities | $41 | $169,290 | -$169,249 (-99.9%) | | Net cash provided by (used in) financing activities | $253 | $(49,862) | +$50,115 (N/A) | | Net (decrease) increase in cash and cash equivalents and restricted cash | $(20,311) | $94,369 | -$114,680 (-121.5%) | | Cash and cash equivalents and restricted cash at end of period | $80,927 | $97,413 | -$16,486 (-16.9%) | [Unaudited Condensed Consolidated Statement of Stockholders' Equity](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Stockholders'%20Equity) Presents Flotek's consolidated statement of stockholders' equity, detailing changes in equity for Q1 2020 | Metric (in thousands) | Balance, December 31, 2019 | Balance, March 31, 2020 | Change (QoQ) | | :-------------------- | :------------------------- | :---------------------- | :----------- | | Total Stockholders' Equity | $172,029 | $108,705 | -$63,324 (-36.8%) | | Net loss | N/A | $(63,967) | N/A | | Foreign currency translation adjustment | N/A | $(123) | N/A | | Restricted stock granted | N/A | $338 | N/A | | Treasury stock purchased | N/A | $(45) | N/A | | Stock compensation expense | N/A | $462 | N/A | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of significant accounting policies and other financial information for Flotek's Q1 2020 statements [Note 1 — Organization and Significant Accounting Policies](index=11&type=section&id=Note%201%20%E2%80%94%20Organization%20and%20Significant%20Accounting%20Policies) Describes Flotek's business, the impact of market conditions, and cost-reduction measures implemented in response - Flotek Industries, Inc. is a global, diversified, technology-driven company

Financial Data and Key Metrics Changes - Revenue for Q1 2020 was $19.4 million, down from $43.3 million in the same period last year, but in line with the previous quarter's $19.5 million [35] - ECT operating expenses decreased to $22.8 million in Q1 2020 from $44 million in Q1 2019, reflecting a 48% reduction year-over-year [35] - Loss from continuing operations was $64 million, or $1.07 loss per diluted share, compared to a loss of $15.2 million, or $0.26 loss per diluted share in the prior year [37] - Adjusted EBITDA for Q1 was a loss of $6.5 million, an improvement from last year's loss of $7.6 million [38] - Cash and equivalents as of March 31, 2020, were $80.3 million, with no debt outstanding [39] Business Line Data and Key Metrics Changes - The acquisition of JP3, a high-growth data and analytics technology company, diversifies Flotek's business mix and is expected to enhance profitability [10][12] - JP3 has generated a revenue growth rate of 58% over the past four years, with a significant addressable market of about $1 billion annually in the U.S. [13] Market Data and Key Metrics Changes - The oil and gas industry is experiencing significant disruption due to COVID-19, leading to an oversupply of oil and reduced demand [7][28] - Management noted stabilization in customer activity as oil prices have recovered from extremely low levels, although the market remains challenging [44] Company Strategy and Development Direction - The company aims to reduce dependence on rig counts and the U.S. unconventional market while establishing a presence in the digital transformation market [9] - Cost measures have been implemented to enhance financial flexibility, including salary reductions for executives and board members, headcount reductions, and cuts in discretionary spending [28] - The focus is on derisking the business and identifying additional cost reduction opportunities to regain profitability [29] Management Comments on Operating Environment and Future Outlook - Management remains committed to achieving breakeven despite the challenging market conditions and has taken significant cost-cutting measures [44] - The company anticipates that the midstream and downstream markets will remain strong and less volatile compared to drilling activities [47] - Future growth is expected to come from enhancing oil recovery and leveraging JP3's data analytics capabilities [72] Other Important Information - The company produced approximately 12,000 gallons of hand sanitizer to donate to various community organizations during the pandemic [33] - Plans to consolidate office spaces in Houston are expected to save approximately $900,000 annually [41] Q&A Session Summary Question: Insights on Q2 and Q3 outlook and cash management - Management is focused on achieving breakeven and is managing costs tightly, with no expected increase in market activity in Q2 [44] Question: Impact of COVID-19 on JP3's business - JP3 has experienced some slowdown but remains strong with opportunities for growth, as it is less impacted than drilling activities [46] Question: Capital allocation priorities - The focus is on growth opportunities rather than stock buybacks, with an emphasis on acquiring high-growth companies [53] Question: Growth potential of JP3 - JP3 is viewed as a capital-light investment opportunity with significant growth potential, aiming to enhance sales efforts [50] Question: Market share growth in existing wells - The company is focusing on enhanced oil recovery in existing wells, which presents opportunities for growth even in a challenging market [72]

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Flotek Industries Inc. (NYSE:FTK) Q4 2019 Earnings Conference Call March 6, 2020 10:00 AM ET Company Participants Danielle Allen - Senior Vice President, Global Communications John Gibson - Chairman, Chief Executive Officer and President Ryan Ezell - Senior Vice President, Operations Nick Bigney - Senior Vice President, General Counsel and Corporate Secretary Elizabeth Wilkinson - Chief Financial Officer Mark Lewis - Senior Vice President, Global Business Development Conference Call Participants Daniel Burk ...