HOUSTON, Oct. 6, 2014 /PRNewswire/ -- Flotek
Industries, Inc. (NYSE: FTK - News) this morning announced
preliminary, select financial results for the quarter ended
September 30, 2014 and the Company's
schedule for its third quarter earnings release and conference
call.
Third Quarter Preliminary, Select Financial Results
While still finalizing financial results for the quarter ended
September 30, 2014, Flotek believes
that revenue in the third quarter will exceed $115 million, a record for the Company. In
addition, the Company expects Energy Chemistry Technology revenues
for the quarter to exceed $67 million
and Drilling Technology revenues to approach $30 million.
"We are very pleased with the early look at our third quarter
results, an indication that the effort of the entire Flotek team
continues to create opportunities to expand the reach of Flotek's
innovative technologies that add value to our clients' drilling,
completion and production activities," said John Chisholm, Chairman, President and Chief
Executive Officer of Flotek. "We are especially pleased with the
growth in Energy Chemistry Technology revenues, where sequential
growth will approach 10% and year-over-year growth should be at
least 30%. The introduction of FracMax™ – our patent-pending,
proprietary software application that provides conclusive evidence
of the efficacy of our Complex Nano-Fluid® completion chemistries –
has significantly increased interest in CnF® over the last several
months. Additionally, continued acceleration in Canada and West
Texas as well as steady growth in our more established
basins pushed results in the September quarter."
Enterprise-wide gross margins should approach 40% for the
quarter ended September 30, 2014. We
expect Energy Chemistry gross margins to experience a modest
transient impact from a handful of events including an increase in
logistics costs, a new incentive pricing structure, and one-time
inventory adjustments.
"The activity acceleration in the third quarter was ahead of our
expectations across all operating segments," added Chisholm. "While
we are aware of concerns over moderating oil prices, our prospect
book is as robust as at any time in the last five years and,
through the use of FracMax, our validation calendar continues to
fill. In addition, we continue to gain traction with our new
Stemulator® technology, which should provide additional revenue
opportunities in the fourth quarter and into 2015. Moreover, the
commercial testing of our horizontal "measurement while drilling"
tool, Telepulse (a member of the Teledrift® family), is nearing
completion which should also add to our opportunity set in the
coming months."
"From a balance sheet perspective, we continue to generate
significant cash and, as a result, further reduced our outstanding
debt during the quarter," concluded Chisholm. "We continue to be
disciplined in our approach to reinvesting capital, looking for
opportunities that will continue our commitment to strategic
investments that stand in support of Flotek's goals of remaining an
energy technology leader as well as adding value for our
shareholders. As noted in recent weeks, we are excited about
potential opportunities to grow our Production Technologies
business and look forward to discussing those opportunities on our
quarterly call."
Third Quarter Earnings Release and Conference Call
Schedule
Flotek will host a conference call on Thursday, October 23, 2014 at 7:30 a.m. Central Standard Time to discuss its
financial and operating results for the three-months ended
September 30, 2014. Flotek intends to
provide dial-in information through a press release on October 22, 2014.
Flotek plans to file its 10-Q after the market close on
Wednesday, October 22, 2014. In
addition, the Company will provide additional details regarding
operating results in a press release after the market close on
October 22, 2014.
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of
innovative oilfield technologies, including specialty chemicals and
down-hole drilling and production equipment. It serves major and
independent companies in the domestic and international oilfield
service industry. Flotek Industries, Inc. is a publicly traded
company headquartered 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 Flotek's web site at
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 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. Factors that could cause or contribute
to such differences in results and outcomes include, but are not
limited to, demand for oil and natural gas drilling services in the
areas and markets in which the Company operates, competition,
obsolescence of products and services, the Company's ability to
obtain financing to support its operations, environmental and other
casualty risks, and the impact of government regulation.
Further information about the risks and uncertainties that may
impact the Company are set forth in the Company's most recent
filings on Form 10-K (including without limitation in the "Risk
Factors" Section), 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.
SOURCE Flotek Industries, Inc.