Financial Data and Key Metrics Changes - Total revenue increased by 5% year-over-year and 8% sequentially, reaching $49.7 million in Q3 2024, despite weaker North American Oil Field Services activity [6][15] - Net income was $2.5 million, marking a 97% year-over-year increase, while adjusted EBITDA rose to $4.8 million, a 43% increase year-over-year [8][15] - Adjusted EBITDA guidance for 2024 was raised to a range of $16.5 million to $18.5 million, reflecting a 35% increase at the midpoint compared to initial guidance [18] Business Segment Data and Key Metrics Changes - Data analytics segment revenues grew by 30% in Q3 2024, with data as a service revenue increasing by 40% sequentially [7] - Revenue from the chemistry technology segment increased by 7% in Q3 2024, despite a declining frac fleet market [7][15] - Gross profit from the data analytics segment reached $1.2 million, an 88% increase compared to the previous quarter, with a gross margin of 44% [17] Market Data and Key Metrics Changes - The active frac fleet count declined over 14% from the peak in Q1 2024, yet the company managed to grow revenue [6][7] - The demand for oil and gas is expected to expand over the next decade, with electricity demand in the U.S. projected to climb 15% by 2030 [13] Company Strategy and Development Direction - The company aims to capture further market share and enhance profitability through innovation in chemistry and data solutions [9][10] - Flotek is focusing on expanding its data as a service model and leveraging AI-driven reservoir modeling to improve hydrocarbon recovery [10][11] - The company is positioned to benefit from new EPA regulations regarding flare monitoring, with significant growth potential in this area [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute despite market headwinds and emphasized the importance of safety and service quality [5][9] - The company anticipates continued growth in both chemistry and data analytics segments, with expectations for a strong finish to 2024 [20] - Management noted that the regulatory environment is expected to drive demand for their services, particularly in flare monitoring and chain of custody applications [24][30] Other Important Information - The company reduced borrowings under the asset-based loan by 81% or $6.1 million compared to the end of 2023 [9] - The company achieved zero recordable and lost time incidents during the quarter, highlighting its commitment to safety [9] Q&A Session Summary Question: Insights on the flare market and customer concentration - Management indicated a preference for rental service agreements over capital purchases, with a growing diversification of the customer base [22][23] Question: Thoughts on SG&A growth in relation to demand - Management is considering adding personnel to meet demand but expects SG&A to continue trending down as a percentage of revenue [25][26] Question: Sales cycle and pipeline for data services - The sales cycle for traditional services is 9 to 12 months, while new regulatory areas are seeing much faster cycles, sometimes under a month [30] Question: Performance of flare monitoring and chain of custody - Management confirmed that flare monitoring is on track, with significant growth expected, while chain of custody applications are ahead of schedule [34][36]

Core Viewpoint - Flotek Industries reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and showing an increase from $0.04 per share a year ago, indicating a positive earnings surprise of 14.29% [1][2] Financial Performance - The company posted revenues of $49.74 million for the quarter ended September 2024, which was 1.31% below the Zacks Consensus Estimate, and an increase from $47.27 million year-over-year [2] - Over the last four quarters, Flotek Industries has only surpassed consensus EPS estimates once [2] Stock Performance - Flotek Industries shares have increased approximately 29.3% since the beginning of the year, outperforming the S&P 500's gain of 20.1% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $52.8 million, and for the current fiscal year, it is $0.27 on revenues of $189.7 million [7] - The estimate revisions trend for Flotek Industries is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Oil and Gas - Field Services industry, to which Flotek Industries belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Flotek reported total revenues of $49.7 million for Q3 2024, a 5% increase from Q3 2023, driven by a 58% year-over-year increase in Data Analytics revenues[3]. - Net income for Q3 2024 was $2.5 million, representing a 97% increase compared to $1.3 million in Q3 2023, with diluted earnings per share of $0.08[7]. - Adjusted EBITDA for Q3 2024 was $4.8 million, a 43% increase from $3.4 million in Q3 2023, marking the eighth consecutive quarter of improvement[9]. - Flotek has increased its 2024 adjusted EBITDA guidance to a range of $16.5 million to $18.5 million, up from the previous range of $14 million to $18 million, reflecting a 35% increase compared to the original guidance[4]. - Revenue from the Data Analytics segment grew 30% in Q3 2024, with new applications contributing significantly to this growth[6]. - Flotek's gross profit for Q3 2024 was $9.1 million, with a gross profit margin of 18%, slightly down from 19% in Q3 2023[7]. - Adjusted gross profit for Q3 2024 was $10.7 million, compared to $10.3 million in Q3 2023[7]. - Gross profit for the three months ended September 30, 2024, was $9,119 thousand, slightly up from $9,047 thousand in the same period last year[15]. - Gross profit for the nine months ended September 30, 2024, was $27,108,000, compared to $14,833,000 for the same period in 2023, representing an increase of 82.6%[18]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $13,303,000, compared to a loss of $2,464,000 for the same period in 2023, indicating a significant turnaround[18]. - Adjusted gross profit for the nine months ended September 30, 2024, was $31,421,000, compared to $18,005,000 for the same period in 2023, reflecting a growth of 74.7%[18]. Expenses and Cost Management - The company reduced SG&A expenses by 12% year-over-year, totaling $5.7 million in Q3 2024[3]. - Research and development expenses for the three months ended September 30, 2024, were $462 thousand, down from $757 thousand in the same period last year[15]. - Interest expense for the three months ended September 30, 2024, was $256,000, compared to $160,000 in the same period of 2023, indicating an increase of 60%[18]. - Payments on long-term debt for the nine months ended September 30, 2024, were $(135,000), compared to $(104,000) in the same period of 2023, showing a rise in debt servicing[17]. Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2024, provided $5,925 thousand, compared to a use of $(9,248) thousand in the same period last year[16]. - Cash and cash equivalents at the end of the period on September 30, 2024, were $4,997,000, compared to $4,453,000 at the end of the same period in 2023[17]. - Cash and cash equivalents and restricted cash at the end of the period on September 30, 2024, totaled $5,098,000, compared to $4,555,000 at the end of the same period in 2023[17]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $(457,000), a decrease from $(525,000) in the same period of 2023[17]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $(6,329,000), a decline from $1,925,000 in the same period of 2023[17]. Balance Sheet and Assets - Accounts receivable decreased to $12,220 thousand as of September 30, 2024, from $13,687 thousand at December 31, 2023[14]. - Total current assets increased to $86,293 thousand as of September 30, 2024, from $76,447 thousand at December 31, 2023[14]. - Total liabilities decreased to $51,642 thousand as of September 30, 2024, from $55,553 thousand at December 31, 2023[14]. - Total stockholders' equity increased to $109,007 thousand as of September 30, 2024, from $101,960 thousand at December 31, 2023[14]. - Proceeds from asset-based loans for the nine months ended September 30, 2024, were $122,600,000, compared to $27,750,000 in 2023, showing a substantial increase[17]. Other Notable Developments - Flotek expects further growth in flare monitoring revenues following the EPA's approval of its JP3 analyzer[6]. - Net income for the nine months ended September 30, 2024, was $6,068 thousand, a decrease of 73.1% compared to $22,609 thousand for the same period in 2023[16]. - The company reported a basic income per share of $0.09 for the three months ended September 30, 2024, compared to $0.04 for the same period in 2023[15].

Core Insights - Flotek Industries reported significant improvements in profitability metrics for Q3 2024 compared to Q3 2023, leading to an increase in 2024 profit guidance [1][4][5] Financial Performance - Total revenues for Q3 2024 were $49.7 million, a 5% increase from $47.3 million in Q3 2023, with Data Analytics revenues increasing by 58% year-over-year [2][3][7] - Gross profit for Q3 2024 was $9.1 million, with a gross profit margin of 18%, slightly down from 19% in Q3 2023 [2][7] - Net income for Q3 2024 was $2.5 million, or $0.08 per diluted share, compared to $1.3 million, or $0.04 per diluted share, in Q3 2023 [2][7] - Adjusted EBITDA for Q3 2024 was $4.8 million, a 43% increase from $3.4 million in Q3 2023 [2][7][22] Operational Highlights - Selling, General and Administrative (SG&A) expenses were reduced by 12% year-over-year and by 9% sequentially from Q2 2024, totaling $5.7 million in Q3 2024 [3][7] - The company reduced borrowings under its Asset Based Loan by 81% (or $6.1 million) compared to year-end 2023 [3] 2024 Guidance - Flotek increased its adjusted EBITDA guidance for 2024 to a range of $16.5 million to $18.5 million, up from the previous range of $14 million to $18 million, representing a 35% increase compared to the original guidance [4] - The adjusted gross profit margin for 2024 is now expected to be between 20% and 22%, up from the original guidance of 18% to 22% [4] Segment Performance - Revenue from the Data Analytics segment grew by 30% in Q3 2024, continuing a strong growth trend from the previous quarter [5] - The new flare monitoring application contributed 25% of total quarterly segment revenues in Q3 2024 [5]

HOUSTON, Oct. 7, 2024 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced the Company's schedule for releasing its third quarter 2024 financial and operating results for the period ended September 30, 2024. The Company plans to issue its third quarter 2024 financial and operating results press release after market close on Monday, November 4, 2024, and host its earnings conference call on Tuesday, November 5, 2024, at 9:00 a.m. CST (10:00 a.m. EST). Participants m ...

Flotek Industries (FTK) shares soared 9.5% in the last trading session to close at $5.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% gain over the past four weeks. The surge can be attributed to Flotek's specialization in green chemistry, which offers innovative solutions aimed at reducing the environmental impact of the energy sector. Governments and energy companies worldwide are increasingly focusing on reducing the ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was reported at $46 million, reflecting a sequential increase of 14% compared to Q1 2024, driven primarily by strong growth in external customer chemistry sales [14][5] - Gross profit increased to $9.2 million, representing a 136% year-over-year increase from $3.9 million in Q2 2023 [15] - Adjusted EBITDA for Q2 2024 increased by $6.4 million compared to the same quarter last year, marking a 10% sequential growth [17] - The company raised its full-year adjusted EBITDA guidance by 23% at the midpoint, now expecting it to be in the range of $14 million to $18 million [19] Business Line Data and Key Metrics Changes - External customer chemistry sales grew by 40% from Q1 2024, with significant growth in the Permian Basin, where sales increased by 186% from Q1 2024 and 68% year-over-year [5][7] - The Data Analytics segment saw a 22% quarter-over-quarter increase in revenue [5][8] - The proprietary Complex nano-Fluids technology sales increased by 89% in the first half of 2024 compared to the first half of 2023 [7] Market Data and Key Metrics Changes - The active rig and frac fleet counts declined sequentially during the same period, yet the company managed to grow revenue, indicating market share gains [5][26] - The company anticipates a rebound in drilling and completion activity in 2025, with further acceleration expected in 2026 as noncore assets are divested and developed [11] Company Strategy and Development Direction - Flotek aims to remain at the forefront of innovation, focusing on AI-driven reservoir modeling and the development of new technologies to enhance hydrocarbon recovery [8] - The approval of the JP3 analyzer system by the EPA positions the company for growth in flare emission monitoring, with an estimated annual total addressable market of $220 million [6][10] - The company is committed to expanding its service offerings and market share while maintaining cost efficiency and creating shareholder value [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on opportunities both domestically and internationally, despite near-term volatility in natural gas pricing [10][20] - The long-term fundamentals for energy-related services remain strong, with expected demand for oil and gas to expand over the next decade [11] - Management noted that while the rebound in the natural gas market has been slower than expected, they believe LNG buildout will lead to higher prices and increased activity [20] Other Important Information - The company amended its ABL facility, increasing the loan commitment by 45% to $20 million while reducing the interest rate [6][18] - SG&A costs declined to $6.3 million, a 25% improvement from the previous year, primarily due to lower professional fees [17] Q&A Session Summary Question: Can you provide details on the orders for flare sites? - The majority of the orders are from upstream customers, with a 50-50 blend of traditional and new customers, and expected delivery in Q3, Q4, and early 2025 [24] Question: What is the outlook for the second half of the year? - The company expects slight growth in the chemistry business despite a projected 5-6% reduction in average frac fleet count [25][26] Question: How many of the flare sensor orders are subscription-based? - All current orders have been on a subscription model, aligning with the strategy to move towards a Data as a Service revenue model [27] Question: What is the addressable market for the flare monitoring technology? - The total market over five years is estimated at over $1 billion, with a recurring revenue space of about $220 million annually [28] Question: How is the company addressing the production side of the business? - There is significant interest in the production side, with ongoing deployments and a growing customer base [29] Question: Can you elaborate on the growth strategy for the flare gas market? - The company expects to see acceleration in growth in 2025, with a commitment to invest in advancing builds to support this growth [35] Question: How does the company differentiate itself in the downstream market? - The company prioritizes areas with significant price and technical differentiation, focusing on upstream opportunities for rapid growth [41]

HOUSTON, July 16, 2024 /PRNewswire/ -- Flotek Industries' (NYSE: FTK) wholly owned subsidiary JP3 Measurement, a leader in innovative analytical measurement solutions, today announced that the Environmental Protection Agency (EPA) has designated the JP3 system as an approved measurement technology with respect to recently enacted flare regulations. This state-of-the-art optical instrument, designed for the precise measurement of net heating values (NHV) in flare gases, is the first to be approved as an alte ...

HOUSTON, June 11, 2024 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) announced today that the company is set to join the Russell Microcap® Index at the conclusion of the 2024 Russell US Indexes annual reconstitution, effective at the open of US equity markets on Monday, July 1, 2024. About FTSE Russell FTSE Russell is focused on applying the highest industry standards in index design and governance, employing transparent rules-based methodology informed by independent commi ...

Core Viewpoint - Flotek Industries has appointed Leon Chad as Senior Vice President, Commercial, effective June 3, 2024, to enhance its leadership team and drive business strategies in the energy and chemistry sectors [1][2]. Company Overview - Flotek Industries is a technology-driven company focused on green chemicals and data analytics, providing innovative completion solutions that positively impact sustainability and reduce environmental effects [3]. - The company holds an intellectual property portfolio of over 170 patents and operates in more than 59 countries, emphasizing sustainable and optimized chemistry and data solutions [3]. Leadership Appointment - Leon Chad brings over three decades of experience in the energy and chemistry industries, which will support Flotek's strategy to gain market share through differentiated chemistry and data solutions [4]. - Prior to joining Flotek, Chad held significant roles at Baker Hughes, Locus Fermentation Solutions, and Clariant Oil Services, focusing on market growth and business development [5].