HOUSTON, Jan. 6, 2015 /PRNewswire/ -- Flotek
Industries, Inc. (NYSE: FTK) this morning announced
preliminary, select financial results for the quarter ended
December 31, 2014 and the Company's
schedule for its fourth quarter and year-end earnings release and
conference call. The Company also announced additional upcoming
corporate presentations.
Fourth Quarter Preliminary, Select Financial Results
While still finalizing financial results for the quarter ended
December 31, 2014, Flotek believes
that revenue in the fourth quarter will exceed $122 million, a record for the Company. In
addition, the Company expects Energy Chemical Technologies revenues
for the quarter to exceed $74 million
and quarterly Drilling Technologies revenues to be greater than
$31 million.
"The record performance by Flotek is clear indication of the
importance of value-added products and services in all phases of
the energy price cycle as well as the opportunities created by the
focus and effort of the entire Flotek team, especially given the
tumult created by the swoon in energy prices and softening oilfield
activity, concerns over year-end spending and the impact of the
November and December holidays," said John
Chisholm, Chairman, President and Chief Executive Officer of
Flotek. "We remain especially pleased with the strength in Energy
Chemical Technologies revenues, where sequential growth should
exceed 10% and year-over-year growth should be at least 30%. The
introduction of FracMax™ – our patent-pending,
proprietary software application that provides conclusive,
empirical evidence of the efficacy of our Complex nano-Fluid®
completion chemistries – has significantly increased interest in
CnF® chemistries over the last several months. We expect that
momentum to continue as we introduce new applications and greater
reach of our FracMax analytical package in the coming weeks."
Enterprise-wide gross margins should exceed 40% for the quarter
ended December 31, 2014, an increase
from the third quarter as Company initial initiatives to improve
logistics as well as product mix provided incremental benefits.
"Continued activity acceleration in the fourth quarter was ahead
of our expectations across energy operating segments," added
Chisholm. "While we are aware of concerns over weak commodity
prices, our chemistry prospect book remains as robust as it has
been in recent memory and, through the use of FracMax, our
validation calendar remains strong. In addition, we continue to
gain traction with our new Stemulator® technology, which should
provide additional revenue opportunities into 2015. Moreover, the
commercial testing of our horizontal "measurement while drilling"
tool, TelePulse™ (a member of the Teledrift™ family),
has progressed, and we expect initial commercial rentals in the
coming months."
"While we continue to watch unprecedented energy commodity price
volatility vigilantly and understand we are not immune from the
impact such weakness has on our commercial activity, we also
believe that the ability to make better, more productive wells in a
time of price weakness is more important than ever, and our data
empirically prove that using CnF in completions provides ubiquitous
improvement in well productivity," concluded Chisholm.
During the quarter Flotek repurchased 621,726 shares of its
common stock at an average price of $16.74 per share for an aggregate total of
approximately $10.4 million. The
repurchase was made pursuant to a $25
million share repurchase program authorized by the Company's
Board of Directors in November, 2012.
As of December 31, 2014, the
Company's balance on its revolving line of credit was $8.5 million.
"From a balance sheet perspective, we continue to generate
significant cash and, even with our meaningful repurchase program,
remain well positioned to prudently allocate capital as
opportunities arise," said 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. We
will continue to consider all opportunities that we believe create
durable value across the pricing cycle."
Fourth Quarter and Full-Year, 2014 Earnings Release and
Conference Call Schedule
Flotek will host a conference call on Thursday, January 29, 2015 at 7:30 a.m. Central Standard Time to discuss its
financial and operating results for the three- and twelve-months
ended December 31, 2014. Flotek
intends to provide dial-in information through a press release on
January 28, 2015.
Flotek plans to file its 10-K after the market close on
Wednesday, January 28, 2015. In
addition, the Company will provide additional details regarding
operating results in a press release after the market close on
January 28, 2015
Investor and Analyst Winter
Meeting – Florida
Flotek will host investors and analysts at its annual
Florida investor days on
February 2, 2014. The meeting will
consist of presentation by business unit leaders as well as a tour
of the Company's Florida Chemical processing, manufacturing and
research facilities in central Florida.
For more information, please email ir@flotekind.com.
Presentation at Independent Petroleum Association of America
– Oil and Gas Investment Symposium - Florida
Flotek will make a presentation at the IPAA Florida Oil and Gas
Investment Symposium on Tuesday, February 3,
2015. John Chisholm,
Chairman, President and Chief Executive Officer of Flotek, will
present to conference attendees.
The presentation will be webcast live and can be accessed from
Flotek's website, www.flotekind.com. The presentation slides will
be available on the Flotek website coincident with the conference
presentation.
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.
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SOURCE Flotek Industries, Inc.