Flotek(FTK) - 2024 Q3 - Quarterly Results

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].