HOUSTON, Aug. 6, 2024
/PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company")
(NYSE: FTK) today announced operational and financial results for
the quarter ended June 30, 2024,
highlighted by significant improvement in profitability metrics as
compared to the second quarter of 2023. Due to the strong business
performance in the first half of the year, the Company increased
its 2024 profitability guidance.
Financial Summary (in thousands, except 'per share'
amounts)
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
$
46,152
|
|
$
50,594
|
|
$
86,526
|
|
$
98,602
|
|
Gross Profit
|
$
9,170
|
|
$
3,904
|
|
$
17,991
|
|
$
5,785
|
|
Adjusted Gross Profit
(1)
|
$
10,654
|
|
$
5,092
|
|
$
20,729
|
|
$
7,740
|
|
Net Income
(Loss)
|
$
1,974
|
|
$
(21)
|
|
$
3,536
|
|
$
21,322
|
|
Diluted Income (Loss)
Per Share
|
$
0.06
|
|
$
(0.11)
|
|
$
0.12
|
|
$
(0.23)
|
|
Adjusted EBITDA
(1)
|
$
4,439
|
|
$
(2,003)
|
|
$
8,464
|
|
$
(5,854)
|
Second Quarter 2024 and Recent Highlights
- Generated total revenue of $46.2
million, a 14% increase from the first quarter of 2024,
driven by a 40% sequential increase in chemistry revenues from
external customers and a 22% sequential increase in Data Analytics
revenue.
- Increased gross profit margin and adjusted gross profit
margin(1) to 20% and 23%, respectively, as compared to
8% and 10% respectively, during the second quarter 2023.
- Reported net income of $2.0
million compared to a net loss of $21
thousand for the second quarter of 2023 and delivered a
year-over-year increase in adjusted EBITDA(1) of
$6.4 million.
- Amended Asset Based Loan agreement increases loan commitment by
45% to $20 million and reduces
interest rate.
- Received approval from the Environmental Protection Agency
(EPA) of the JP3 analyzer system for use in flare emission
monitoring, facilitating access to a new upstream market
application with an estimated annual total addressable market of
$220 million.
2024 Guidance: Stronger Profitability Expectations
As a result of the Company's strong operational performance
during the first half of 2024 and the outlook for the balance of
the year, the Company is raising its 2024 profitability guidance.
Flotek now expects adjusted EBITDA(2) to be in a range
of between $14 million and
$18 million, a 23% increase to the
midpoint of the range when compared to the prior guidance range of
between $10 million and $16 million.
Asset Based Loan Amendment: Increased Credit Capacity with
Lower Interest Rate
On August 5, 2024, the Company
entered into an amendment to its Asset Based Loan agreement. In
connection with the amendment, the loan commitment increased by 45%
from $13.8 million to $20 million, the applicable interest rate spread
decreased by 0.50% and the term of the loan was extended by one
year to August 2026. These
enhancements to the loan agreement further validate the Company's
continuing operational and financial improvements.
Data Analytics: Access to New Upstream Flare Market
On July 16, 2024, Flotek announced
that the EPA 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 alternative method under the new NSPS
OOOOb regulations, supporting cleaner and more efficient operations
across the oil and gas industry.
With over 55,000 existing flares in the United States expected to be subject to
some level of monitoring regulation by 2028, this approval is
expected to position JP3 to significantly expand its footprint into
this new upstream market space.
Management Commentary
Chief Executive Officer Dr. Ryan
Ezell commented, "Despite a backdrop of slower North
American activity in our industry, our ability to grow revenue 14%
this quarter speaks to the execution of our strategy and the
continued progress we are making in gaining market share. Second
quarter revenue from external customers increased significantly
following the seasonality we experienced in the first quarter. Our
Data Analytics segment increased revenue 22% from the first quarter
2024 as we saw a sequential improvement in analyzer sales. Most
importantly, we received notification from the EPA that our JP3
analyzer was an approved technology for flare gas monitoring, which
we believe will be a catalyst for revenue growth later this year
and into 2025.
Based on our performance through mid-year, I am excited to share
that we are raising the mid-point of our adjusted
EBITDA(2) guidance for 2024 to $16 million, which would represent more than a
900% improvement from 2023. This is a testament to Flotek's
differentiated technology solutions in a competitive market as the
industry navigates through this current natural gas price
environment. Lastly, our success in significantly increasing our
ABL credit capacity at a lower interest rate will provide
incremental liquidity to support our continued growth."
Second Quarter 2024 Financial Results
- Revenue: Flotek reported total revenues of $46.2 million for the second quarter of 2024,
which was an increase of $5.8
million, or 14% compared to total revenues in the first
quarter of 2024. Quarterly revenue growth was driven by a 40%
sequential increase in chemistry revenue from external customers,
highlighting the Company's continued market share improvement when
considering the decline of 23 active frac fleets from the end of
the first quarter of 2024(3). Revenue from the Data
Analytics segment totaled $2 million
during the second quarter of 2024, as compared to $1.7 million during the first quarter of
2024.
Total revenues for the second quarter of 2024 were down
$4.4 million, or 9%, compared to
total revenues of $50.6 million for
the second quarter 2023. The decline in total revenue compared to
the second quarter of 2023 was primarily due to reduced related
party activity as a result of lower natural gas prices. Chemistry
revenues from external customers during the second quarter 2024
were 6% higher than the second quarter 2023.
- Gross Profit: The Company generated gross profit of
$9.2 million during the second
quarter 2024 as compared to gross profit of $3.9 million for the second quarter 2023. The
improvement was the result of increased revenue attributable to the
estimated annual minimum chemistry purchase requirement in the
ProFrac supply agreement. The measurement period during 2023 for
minimum chemistry purchase requirements was June 1 through December 31, 2023 compared to
January 1 through December 31, 2024
during 2024.
- Adjusted Gross Profit
(Non-GAAP)(1): Flotek generated adjusted
gross profit of $10.7 million during
the second quarter 2024 compared to adjusted gross profit of
$5.1 million for the second quarter
2023. Adjusted gross profit excludes non-cash items, primarily
amortization of contract assets.
- Selling, General and Administrative ("SG&A")
Expense: SG&A expense totaled $6.3
million for the second quarter 2024 compared to $8.4 million for the second quarter 2023. The
improvement was the result of lower personnel costs and
professional fees during the 2024 period.
- Severance Costs: Flotek recorded a $2.3 million credit to severance costs in the
second quarter of 2023 in connection with the settlement of certain
litigation.
- Net Income and EPS: Flotek reported net income of
$2.0 million, or $0.06 per diluted share, for the second quarter
2024. This compares to a net loss of $21
thousand, or $(0.11) per
diluted share, for the second quarter 2023.
- Adjusted EBITDA (Non-GAAP)(1):
Adjusted EBITDA was $4.4 million in
the second quarter 2024 as compared to negative $2.0 million in the second quarter 2023. Adjusted
EBITDA improved by 10% from the first quarter of 2024, marking
seven consecutive quarters of improvement.
|
(1)
|
A non-GAAP financial
measure. 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.
|
|
(2)
|
A non-GAAP financial
measure. 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. We are unable to reconcile this forward-looking
non-GAAP financial measure to the most directly comparable GAAP
financial measure without unreasonable efforts, as we are unable to
predict with a reasonable degree of certainty the impact of certain
items that would be expected to impact the GAAP financial measure,
including, among other items, the future amortization of our
contract assets, certain stock-based compensation costs and the
impact of the revaluation of certain liabilities, which is based
upon our future stock price. These items do not impact the non-GAAP
financial measure.
|
|
(3)
|
As reported by The
American Oil and Gas Reporter weekly Frac Spread Counts on
March 29, 2024 and June 28, 2024.
|
Conference Call Details
Flotek will host a conference call on August 7, 2024, at 9:00
a.m. CT (10:00 a.m. ET) to
discuss its second quarter 2024 results. Participants may access
the call through Flotek's website at www.flotekind.com under "News"
within the Investor Relations section or by telephone toll free at
1-800-836-8184 (international toll: 1-646-357-8785) or use the
following link to access the audience view of the webcast
at https://app.webinar.net/zpvrjZ72oQw 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.
Upcoming Investor Event
Members of the Company's management are scheduled to participate
in EnerCom Denver – The Energy Investment Conference to be held in
Denver, Colorado, August 18-21, 2024. Ryan
Ezell, Chief Executive Officer of Flotek, will present on
August 19, 2024, at 9:15 a.m. MT and will be joined by Bond Clement,
Chief Financial Officer, in hosting meetings with investors
throughout the conference. A live webcast of the presentation will
be available on the conference website at www.enercomdenver.com.
Presentation slides will be posted on the Investor Relations
section of Flotek's corporate website at www.flotekind.com prior to
the start of the presentation.
About Flotek Industries, Inc.
Flotek Industries, Inc. is an advanced technology-driven, green
chemical and data analytics company providing unique and innovative
completion solutions that have a proven, positive impact on
sustainability and reducing the overall environmental impact of
energy on air, land, water and people. Flotek has an intellectual
property portfolio of over 170 patents and a global presence in
more than 59 countries throughout North
America, Latin America, the
Middle East and North Africa. Flotek has established
collaborative partnerships focused on sustainable and optimized
chemistry and data solutions which improve well performance and
allow its customers to generate higher returns on invested
capital.
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)
|
|
|
|
|
|
June 30,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
4,777
|
|
$
5,851
|
|
Restricted
cash
|
101
|
|
102
|
|
Accounts receivable,
net of allowance for credit losses of $410 and $745 at
June 30, 2024 and December 31, 2023, respectively
|
13,316
|
|
13,687
|
|
Accounts receivable,
related party, net of allowance for credit losses of $0 at
each June 30, 2024 and December 31, 2023, respectively
|
40,049
|
|
34,569
|
|
Inventories,
net
|
12,142
|
|
12,838
|
|
Other current
assets
|
2,834
|
|
3,564
|
|
Current contract
asset
|
5,786
|
|
5,836
|
|
Total current
assets
|
79,005
|
|
76,447
|
|
Long-term contract
assets
|
66,121
|
|
68,820
|
|
Property and equipment,
net
|
4,987
|
|
5,129
|
|
Operating lease
right-of-use assets
|
4,184
|
|
5,030
|
|
Deferred tax assets,
net
|
84
|
|
300
|
|
Other long-term
assets
|
1,659
|
|
1,787
|
|
TOTAL
ASSETS
|
$
156,040
|
|
$
157,513
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
31,755
|
|
$
31,705
|
|
Accrued
liabilities
|
3,026
|
|
5,890
|
|
Income taxes
payable
|
35
|
|
45
|
|
Current portion of
operating lease liabilities
|
1,866
|
|
2,449
|
|
Current portion of
finance lease liabilities
|
3
|
|
22
|
|
Asset-based
loan
|
5,798
|
|
7,492
|
|
Current portion of
long-term debt
|
149
|
|
179
|
|
Total current
liabilities
|
42,632
|
|
47,782
|
|
Deferred revenue,
long-term
|
35
|
|
35
|
|
Long-term operating
lease liabilities
|
7,139
|
|
7,676
|
|
Long-term
debt
|
—
|
|
60
|
|
TOTAL
LIABILITIES
|
49,806
|
|
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;
30,866,597 shares issued and 29,759,154 shares
outstanding at June 30,
2024; 30,772,837 shares issued and 29,664,130
shares outstanding at
December 31, 2023
|
3
|
|
3
|
|
Additional paid-in
capital
|
463,844
|
|
463,140
|
|
Accumulated other
comprehensive income
|
185
|
|
127
|
|
Accumulated
deficit
|
(323,270)
|
|
(326,806)
|
|
Treasury stock, at
cost; 1,107,442 and 1,108,707 shares at June 30, 2024
and December 31, 2023,
respectively
|
(34,528)
|
|
(34,504)
|
|
Total stockholders'
equity
|
106,234
|
|
101,960
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
156,040
|
|
$
157,513
|
|
FLOTEK INDUSTRIES,
INC.
Unaudited Condensed
Consolidated Statements of Operations
(in thousands,
except per share data)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Revenue from external
customers
|
$
18,191
|
|
$
17,820
|
|
$
31,371
|
|
$
29,472
|
|
Revenue from related
party
|
27,961
|
|
32,774
|
|
55,155
|
|
69,130
|
|
Total
revenues
|
46,152
|
|
50,594
|
|
86,526
|
|
98,602
|
|
Cost of goods
sold
|
36,982
|
|
46,690
|
|
68,535
|
|
92,817
|
|
Gross
profit
|
9,170
|
|
3,904
|
|
17,991
|
|
5,785
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
6,259
|
|
8,351
|
|
12,342
|
|
14,803
|
|
Depreciation
|
222
|
|
174
|
|
442
|
|
349
|
|
Research and
development
|
481
|
|
860
|
|
888
|
|
1,474
|
|
Severance
costs
|
20
|
|
(2,279)
|
|
23
|
|
(56)
|
|
Gain on sale of
property and equipment
|
(34)
|
|
—
|
|
(34)
|
|
—
|
|
Gain in fair value of
Contract Consideration
Convertible Notes Payable
|
—
|
|
(3,874)
|
|
—
|
|
(29,969)
|
|
Total operating costs
and expenses
|
6,948
|
|
3,232
|
|
13,661
|
|
(13,399)
|
|
Income from
operations
|
2,222
|
|
672
|
|
4,330
|
|
19,184
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Paycheck protection
plan loan forgiveness
|
—
|
|
—
|
|
—
|
|
4,522
|
|
Interest
expense
|
(308)
|
|
(705)
|
|
(586)
|
|
(2,377)
|
|
Other income,
net
|
75
|
|
19
|
|
49
|
|
9
|
|
Total other income
(expense)
|
(233)
|
|
(686)
|
|
(537)
|
|
2,154
|
|
Income (loss) before
income taxes
|
1,989
|
|
(14)
|
|
3,793
|
|
21,338
|
|
Income tax
expense
|
(15)
|
|
(7)
|
|
(257)
|
|
(16)
|
|
Net income
(loss)
|
$
1,974
|
|
$
(21)
|
|
$
3,536
|
|
$
21,322
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
|
$
—
|
|
$
0.12
|
|
$
1.06
|
|
Diluted
|
$
0.06
|
|
$
(0.11)
|
|
$
0.12
|
|
$
(0.23)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in
computing basic income (loss) per common
share
|
29,449
|
|
23,906
|
|
29,440
|
|
20,207
|
|
Weighted average
common shares used in
computing diluted income (loss) per common
share
|
30,668
|
|
28,250
|
|
30,512
|
|
27,361
|
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
|
|
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
3,536
|
|
$
21,322
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
Change in fair value
of contingent consideration
|
(27)
|
|
(324)
|
|
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 assets
|
2,749
|
|
2,390
|
|
Depreciation
|
442
|
|
349
|
|
Amortization of
asset-based loan origination costs
|
170
|
|
—
|
|
Provision for credit
losses, net of recoveries
|
79
|
|
63
|
|
Provision for excess
and obsolete inventory
|
433
|
|
497
|
|
Gain on sale of
property and equipment
|
(34)
|
|
—
|
|
Non-cash lease
expense
|
1,236
|
|
1,621
|
|
Stock compensation
expense
|
642
|
|
(836)
|
|
Deferred income tax
expense
|
216
|
|
—
|
|
Paycheck protection
plan loan forgiveness
|
—
|
|
(4,522)
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
292
|
|
2,218
|
|
Accounts receivable,
related party
|
(5,480)
|
|
(350)
|
|
Inventories
|
192
|
|
(3,158)
|
|
Other
assets
|
688
|
|
(6)
|
|
Accounts
payable
|
50
|
|
11,574
|
|
Accrued
liabilities
|
(2,837)
|
|
(3,491)
|
|
Operating lease
liabilities
|
(1,510)
|
|
(1,886)
|
|
Income taxes
payable
|
(10)
|
|
(85)
|
|
Interest
payable
|
—
|
|
(8)
|
|
Net cash provided by
(used in) operating activities
|
827
|
|
(2,234)
|
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(continued)
|
|
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(229)
|
|
(292)
|
|
Proceeds from sale of
assets
|
34
|
|
—
|
|
Net cash used in
investing activities
|
(195)
|
|
(292)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Payment for forfeited
stock options
|
—
|
|
(617)
|
|
Payments on long term
debt
|
(90)
|
|
(60)
|
|
Proceeds from
asset-based loan
|
83,300
|
|
—
|
|
Payments on
asset-based loan
|
(84,994)
|
|
—
|
|
Payments to tax
authorities for shares withheld from employees
|
(24)
|
|
(229)
|
|
Proceeds from issuance
of stock
|
62
|
|
33
|
|
Payments for finance
leases
|
(19)
|
|
(15)
|
|
Net cash used in
financing activities
|
(1,765)
|
|
(888)
|
|
Effect of changes in
exchange rates on cash and cash equivalents
|
58
|
|
(34)
|
|
Net change in cash
and cash equivalents and restricted cash
|
(1,075)
|
|
(3,448)
|
|
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
|
4,777
|
|
8,841
|
|
Restricted cash at the
end of period
|
101
|
|
101
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
4,878
|
|
$
8,942
|
|
FLOTEK INDUSTRIES,
INC.
Unaudited
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings
(in
thousands)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
9,170
|
|
$
3,904
|
|
$
17,991
|
|
$
5,785
|
|
Stock compensation
expense
|
3
|
|
2
|
|
7
|
|
(137)
|
|
Severance and
retirement
|
—
|
|
11
|
|
9
|
|
26
|
|
Contingent liability
revaluation
|
(1)
|
|
35
|
|
(27)
|
|
(324)
|
|
Amortization of
contract assets
|
1,482
|
|
1,140
|
|
2,749
|
|
2,390
|
|
Adjusted Gross
profit (Non-GAAP) (1)
|
$
10,654
|
|
$
5,092
|
|
$
20,729
|
|
$
7,740
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
1,974
|
|
$
(21)
|
|
$
3,536
|
|
$
21,322
|
|
Interest
expense
|
308
|
|
705
|
|
586
|
|
2,377
|
|
Income tax
expense
|
15
|
|
7
|
|
257
|
|
16
|
|
Depreciation and
amortization
|
222
|
|
173
|
|
442
|
|
349
|
|
EBITDA (Non-GAAP)
(1)
|
$
2,519
|
|
$
864
|
|
$
4,821
|
|
$
24,064
|
|
Stock compensation
expense
|
331
|
|
274
|
|
643
|
|
(838)
|
|
Severance and
retirement
|
20
|
|
(2,268)
|
|
32
|
|
(30)
|
|
Contingent liability
revaluation
|
—
|
|
35
|
|
(27)
|
|
(324)
|
|
Gain on disposal of
assets
|
(34)
|
|
—
|
|
(34)
|
|
—
|
|
PPP loan
forgiveness
|
—
|
|
—
|
|
—
|
|
(4,522)
|
|
Contract Consideration
Convertible Notes
Payable revaluation adjustment
|
—
|
|
(3,874)
|
|
—
|
|
(29,969)
|
|
Amortization of
contract assets
|
1,482
|
|
1,140
|
|
2,749
|
|
2,390
|
|
Non-Recurring
professional fees
|
121
|
|
1,826
|
|
280
|
|
3,375
|
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
4,439
|
|
$
(2,003)
|
|
$
8,464
|
|
$
(5,854)
|
|
|
|
(1)
|
Management believes
that adjusted gross profit, EBITDA and adjusted EBITDA for the
three and six months ended June 30, 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.