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Flotek(FTK) - 2025 Q1 - Earnings Call Transcript
2025-05-07 15:00
Flotek Industries (FTK) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Flotek Industries First Quarter twenty twenty five Earnings Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on Wednesday, 05/07/2025. I would now like to turn the conference over to Michael Crotelli, Director of Finance and Investor Relations. Please go ah ...
Flotek Industries (FTK) Q1 Earnings and Revenues Surpass Estimates
ZACKS· 2025-05-06 23:10
Core Viewpoint - Flotek Industries reported quarterly earnings of $0.17 per share, significantly exceeding the Zacks Consensus Estimate of $0.06 per share, marking an earnings surprise of 183.33% [1][2] Financial Performance - The company achieved revenues of $55.36 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 27.09% and showing an increase from $40.37 million year-over-year [2] - Over the last four quarters, Flotek Industries has exceeded consensus EPS estimates three times [2] Stock Performance - Flotek Industries shares have declined approximately 23.6% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $50.01 million, and for the current fiscal year, it is $0.47 on revenues of $202.58 million [7] - The trend of estimate revisions for Flotek Industries has been favorable ahead of the earnings release [6] Industry Context - The Oil and Gas - Field Services industry, to which Flotek belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Flotek Industries may be influenced by the overall outlook of the industry [8]
Flotek(FTK) - 2025 Q1 - Earnings Call Presentation
2025-05-06 22:23
First Quarter 2025 Earnings Presentation May 7, 2025 Forward-Looking Statements Certain statements set forth in this presentation 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 ...
Flotek(FTK) - 2025 Q1 - Quarterly Results
2025-05-06 20:06
Financial Performance - Flotek reported total revenues of $55.4 million for Q1 2025, a 37% increase from $40.4 million in Q1 2024[1] - Gross profit for Q1 2025 was $12.4 million, up 41% from $8.8 million in Q1 2024, with a gross profit margin of 23%[1][4] - Net income reached $5.4 million in Q1 2025, a 244% increase compared to $1.6 million in Q1 2024, resulting in diluted earnings per share of $0.17[1][13] - Adjusted EBITDA for Q1 2025 was $7.8 million, representing a 93% increase from $4.0 million in Q1 2024[1][13] - Total revenues for Q1 2025 increased to $55,362,000, a 37.1% rise from $40,374,000 in Q1 2024[18] - Net income for Q1 2025 was $5,380,000, compared to $1,562,000 in Q1 2024, representing a 244.5% increase[18] - Gross profit for Q1 2025 reached $12,449,000, up 41.5% from $8,821,000 in Q1 2024[18] - Operating income for Q1 2025 was $5,567,000, a significant increase from $2,108,000 in Q1 2024, marking a 164.5% growth[18] - Adjusted EBITDA for Q1 2025 was $7,780,000, up from $4,026,000 in Q1 2024, indicating a 93.5% increase[22] - The company reported a basic income per common share of $0.18 for Q1 2025, compared to $0.05 in Q1 2024, a 260% increase[18] Revenue Expectations - Flotek expects total revenue for 2025 to be between $200 million and $220 million, reflecting a 12% increase compared to 2024[3][4] Operational Highlights - The company acquired 30 real-time gas monitoring and dual fuel optimization assets for mobile power generation, along with a $160 million multi-year contract[4] - External chemistry revenue increased by 88% and Data Analytics revenue rose by 57% in Q1 2025 compared to Q1 2024[4] - Selling, General and Administrative (SG&A) expenses were $6.3 million in Q1 2025, representing 11% of total revenues, down from 15% in Q1 2024[7] - Flotek has achieved five consecutive quarters of growth in revenue, gross profit, net income, and adjusted EBITDA[4][5] Cash Flow and Assets - Cash provided by operating activities for Q1 2025 was $7,313,000, compared to $3,887,000 in Q1 2024, reflecting an 88.5% increase[20] - Cash and cash equivalents at the end of Q1 2025 were $6,253,000, up from $5,219,000 at the end of Q1 2024, a 19.8% increase[20] - The company experienced a decrease in accounts receivable by $2,489,000 in Q1 2025, compared to an increase of $2,937,000 in Q1 2024[20] Research and Development - Research and development expenses for Q1 2025 were $355,000, slightly down from $406,000 in Q1 2024[18] Strategic Goals - The company aims to leverage innovative data and chemistry solutions to enhance customer value and drive future growth[5][6]
Flotek Acquires Innovative Mobile Power Generation Assets and Secures Multi-Year Lease Providing $160 Million Revenue Backlog and Immediate Earnings Accretion
Prnewswire· 2025-04-28 20:05
HOUSTON, April 28, 2025 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek") (NYSE: FTK) and ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac") today jointly announced Flotek's acquisition of power generation assets and related intellectual property (the "Acquired Assets") from ProFrac GDM, LLC ("ProFrac GDM"), a subsidiary of ProFrac, for $105 million. Flotek concurrently entered into an agreement for a six-year dry lease of the Acquired Assets with ProFrac GDM (the "Lease Agreement"). ESD Skid for Gas Con ...
Oil Plunges on Tariff, OPEC Shocks - 3 Stocks to Grab Now
ZACKS· 2025-04-07 13:40
Industry Overview - Crude oil prices have declined nearly 15% year to date, reaching $61.99 per barrel, the lowest since 2021, driven by recession concerns and OPEC+'s unexpected decision to accelerate production cuts [1][4] - The U.S. tariffs imposed during the Trump administration are negatively impacting energy markets, with tariff rates on key trade partners ranging from 10% to 34%, leading to revised global economic growth projections [3] - OPEC+ has raised crude output by 411,000 barrels per day in May, significantly exceeding expectations, which has added pressure on crude prices amid existing macroeconomic uncertainties [4] Investment Opportunities - The current pullback in the energy sector may present a strategic buying opportunity for long-term investors, as the decline is seen as driven by short-term volatility rather than fundamental issues [2][5] - Identified companies such as Prairie Operating Co. (PROP), HighPeak Energy (HPK), and Flotek Industries (FTK) are highlighted as potential investments that could benefit from a recovery in oil prices [2][5] Company Analysis - **Prairie Operating Co. (PROP)**: An independent oil and gas company focused on the DJ Basin, with a Zacks Rank 1. The company is expected to see a 334.3% increase in 2025 earnings, with forecasts rising from $2.44 to $4.92 per share over the past 60 days [10][11] - **HighPeak Energy (HPK)**: A rapidly growing independent oil and gas producer in the Midland Basin, also holding a Zacks Rank 1. The company anticipates a 156.7% increase in 2025 earnings, with estimates jumping 93% in the last 60 days [12][13] - **Flotek Industries (FTK)**: Specializes in advanced chemical technologies and data analytics for the energy sector, holding a Zacks Rank of 2. The company expects a 38.2% increase in 2025 earnings, with a 9.3% rise in estimates over the past 60 days [14][15]
Flotek Announces Timing of First Quarter 2025 Earnings Release
Prnewswire· 2025-04-03 20:05
Company Announcement - Flotek Industries, Inc. plans to release its first quarter 2025 financial and operating results on May 6, 2025, after market close [1] - The earnings conference call is scheduled for May 7, 2025, at 9:00 a.m. CST (10:00 a.m. EST) [1] Access Information - Participants can access the earnings call via Flotek's website, by telephone, or through a webcast link [2] - A recording of the conference call will be available on the Company's website after the call concludes [2] Company Overview - Flotek Industries is a leading chemistry and data technology company servicing the Energy industry [3] - The Company holds over 130 patents and has more than 20 years of field and laboratory data, with a global presence in over 59 countries [3] - Flotek focuses on sustainable and optimized chemistry and data solutions to minimize environmental impact [4]
Flotek Industries: Maintaining A Buy
Seeking Alpha· 2025-03-18 13:32
Group 1 - Flotek Industries (NYSE: FTK) has successfully doubled its share price over the last six months, a notable achievement compared to other companies in the Oilfield Services (OFS) sector [1] - The investment analysis provided by The Daily Drilling Report includes a model portfolio covering all segments of upstream oilfield activity, with weekly updates and ideas for both U.S. and international energy companies [1] Group 2 - The article highlights the expertise of an international oil industry veteran with 40 years of experience, emphasizing their specialization in the upstream oil sector [2]
Flotek Industries (FTK) Is a Great Choice for 'Trend' Investors, Here's Why
ZACKS· 2025-03-17 13:50
Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals to maintain momentum [1][2]. Group 1: Stock Performance - Flotek Industries (FTK) has shown a solid price increase of 28.7% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - FTK has also maintained a price increase of 4.4% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, FTK is trading at 87.1% of its 52-week high-low range, indicating it may be on the verge of a breakout [5]. Group 2: Fundamental Strength - FTK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like FTK that are on an uptrend supported by strong fundamentals [3]. - The article suggests that investors should consider other stocks that meet similar criteria for potential investment opportunities [8].
Flotek(FTK) - 2024 Q4 - Annual Report
2025-03-12 20:02
Financial Performance - Total revenues for the year ended December 31, 2024, decreased by $1.0 million to $187.0 million compared to 2023, primarily due to decreased activity under the ProFrac Agreement[158]. - Total revenues for 2024 were $187,025, a slight decrease of 0.55% from $188,058 in 2023[210]. - Consolidated net income for 2024 was $10.5 million, down from $24.9 million in 2023[177]. - Net income for 2024 was $10,498, down 57.6% compared to $24,713 in 2023[212]. - Basic income per share decreased to $0.36 in 2024 from $1.00 in 2023, reflecting a decline of 64%[210]. - Gross profit for the year ended December 31, 2024, increased by $15.1 million to $39.4 million, resulting in a gross profit margin of 21.1% compared to 12.9% in 2023[158]. - Gross profit increased significantly to $39,386 in 2024, up 62.5% from $24,263 in 2023[210]. - Revenue from external customers increased by $4.2 million, or 7%, in the Chemistry Technologies segment for the year ended December 31, 2024, driven by increased sales with both new and existing customers[165]. - Research and development expenses decreased to $1,714 in 2024 from $2,486 in 2023, a reduction of 30.9%[210]. - Research and development expenses decreased by $0.8 million, or 31%, for the year ended December 31, 2024, due to lower personnel costs from headcount optimization[162]. - Operating income for the year ended December 31, 2024, decreased by $11.0 million to $12.2 million, primarily due to a $30.0 million gain in fair value of the Contract Consideration Convertible Notes Payable in 2023[163]. Customer and Revenue Concentration - Revenues from the ProFrac Agreement represented 62% and 65% of total revenues during 2024 and 2023, respectively[68]. - Revenue from the Company's three largest customers accounted for 75% and 73% of consolidated revenue for the years ended December 31, 2024 and 2023, respectively, indicating a significant customer concentration risk[79]. - The Company has seen an increase in concentration risk due to the ProFrac Agreement, which may impact customer relationships and revenue stability[86]. - As of December 31, 2024, amounts due from ProFrac Services, LLC totaled $52.4 million, including $32.4 million related to 2024 Contract Shortfall Fees[69]. - Contract Shortfall Fees recorded for the year ended December 31, 2024, amounted to $32.4 million due to unmet minimum purchase requirements under the ProFrac Agreement[171]. Innovation and Technology - The Environmental Protection Agency designated the Company's near-infrared spectrometer as an approved measurement technology, potentially opening new growth opportunities in the Data Analytics segment[20]. - The EPA approved the company's near-infrared spectrometer measurement system for flare monitoring, which could facilitate future growth opportunities[58]. - The Company is focused on driving innovation between the Chemistry Technologies and Digital Analytics segments to enhance efficiencies for E&P operators[55]. - The Company's Data Analytics segment provides real-time insights every fifteen seconds, enhancing operational efficiency and reducing emissions for customers[25]. - The company has gained traction with Verax™ analyzers in North American markets for critical applications requiring real-time compositional information[56]. Financial Condition and Risks - The Company may face downward pressure on prices due to increased competition, which could adversely impact revenues, margins, and operating results[74]. - The Company’s financial condition may be adversely impacted if it fails to develop and introduce new products or differentiate existing products[71]. - The Company’s ability to access capital markets is dependent on investor willingness and could affect its growth and competitive position[72]. - The principal supply issues for the next twelve months include fluctuating shipping costs, labor shortages, and availability of raw materials[59]. - The Company may not be able to pass along price increases to customers, potentially resulting in adverse impacts on margins and operating profits[83]. - The Company is exposed to potential allegations of patent infringement, which could lead to costly litigation and adversely affect financial results[77]. - The Company relies on a combination of patents, trademarks, and other methods to protect intellectual property, but there is no assurance that these measures will be effective[75]. - The Company is subject to complex environmental regulations, which could result in significant liabilities and impact financial condition[95]. - Regulatory pressures and environmental activism could reduce demand for the Company's products and services, adversely affecting financial condition and results of operations[101]. - The Company may face difficulties in sourcing key technical components for its products, which could hinder its ability to supply equipment or services[84]. - The Company may experience conflicts of interest due to its relationship with ProFrac Services LLC, which is both a major customer and the largest shareholder[121]. Capital Structure and Shareholder Matters - The Company is currently authorized to issue up to 240,000,000 shares of common stock, which may lead to dilution of current stockholders' ownership interests if additional shares are issued[123]. - As of December 31, 2024, ProFrac Holdings, LLC and its affiliates owned approximately 51% of the Company's common stock, potentially discouraging unsolicited acquisition proposals[127]. - The Company has no current plans to pay dividends on its common stock, requiring investors to rely on stock appreciation for returns[128]. - The Company has never declared or paid cash dividends on its common stock, and there are no current plans to do so[143]. - The Company may issue additional securities in connection with future acquisitions, which could adversely affect the trading price of its common stock[124]. - The Company may issue shares of preferred stock or debt securities with greater rights than its common stock, subject to NYSE rules[125]. - The Company's certificate of incorporation contains anti-takeover provisions that could discourage or prevent others from acquiring the Company[126]. Operational Performance - The Company achieved a total recordable incident rate (TRIR) of 0.50 for the year ended December 31, 2024, indicating a strong safety performance[46]. - The Company operates three manufacturing facilities and a research facility in the U.S., with two owned and the remainder leased[138]. - The Company’s operations are not significantly affected by seasonality, but weather conditions can impact client activity levels and operational performance[28]. - The Company could be adversely affected by severe weather conditions, leading to service curtailment and loss of productivity[116]. - Changes in laws and regulations related to hydraulic fracturing may negatively impact the Company's operations and revenue generation[103]. - The market price of the Company's common stock has been volatile, influenced by various external factors[118]. - The Company has not identified any risks from known cybersecurity threats that have materially affected its business as of December 31, 2024[137]. - The Company has established a Cybersecurity Incident Response Team (CIRT) to enhance its cyber incident response capabilities[134]. Cash Flow and Liquidity - The Company had unrestricted cash and cash equivalents of $4.4 million as of December 31, 2024, down from $5.9 million in 2023[171]. - Net cash provided by operating activities was $3.4 million in 2024, a significant improvement from a cash used of $11.3 million in 2023[177]. - Changes in working capital used $18.5 million of cash in 2024, compared to $13.2 million in 2023[178]. - Net cash used in investing activities was $1.8 million in 2024, primarily for capital additions, compared to $1.0 million in 2023[179]. - Net cash used in financing activities was $3.1 million in 2024, mainly due to $2.7 million in net payments on the ABL[180]. - The Asset Based Loan (ABL) provides up to $20.0 million of credit availability, with an interest rate of 9.5% as of December 31, 2024[172][174]. - The interest rate under the ABL was 9.5% in 2024, down from 11.0% in 2023, with a weighted-average interest rate of 10.8% for the year[193]. Inventory and Assets - The reserve for excess and obsolete inventory was $5.2 million in 2024, representing 28.2% of inventory, down from $6.1 million or 32.3% in 2023[187]. - Total current assets rose to $96,456 in 2024, an increase of 26.2% from $76,447 in 2023[207]. - Total assets increased to $170,796 in 2024, up 8.5% from $157,513 in 2023[207]. - Total liabilities increased slightly to $56,896 in 2024, compared to $55,553 in 2023[207]. - Cash and cash equivalents decreased to $4,404 in 2024 from $5,851 in 2023, a decline of 24.8%[207]. - Contract assets, net, were recorded at $69.0 million as of December 31, 2024[201].