HOUSTON, Jan. 27, 2016 /PRNewswire/ -- Flotek
Industries, Inc. ("Flotek" or the "Company") (FTK) today
announced results for the three- and twelve-months ended
December 31, 2015.
As reported on Form 10-K filed with the U.S. Securities and
Exchange Commission, Flotek reported revenue for the year ended
December 31, 2015 of $334.4 million, a decrease of $114.8 million, or 25.6%, compared to the year
ended December 31, 2014. The decrease
in revenue was primarily due to the drastic drop in oilfield market
activity resulting from the 47.8% decrease in the average North
American active rig count from 2014 to 2015.
Flotek reported a Loss from Operations of $19.2 million for the year ended December 31, 2015. Excluding the impairment
charges taken during the second quarter 2015, Flotek reported
Income from Operations of $1.2
million for the year ended December
31, 2015.
The company recorded an income tax benefit of $7.7 million, yielding an effective tax benefit
of 36.2% for the year ended December 31,
2015, compared to an income tax provision of $25.3 million yielding an effective tax rate of
32.0% in 2014.
For the year ended December 31,
2015, the Company reported a net loss of $13.5 million or $0.25 per share (fully diluted), compared to net
income of $53.6 million or
$0.97 per share (fully diluted) for
the year ended December 31, 2014.
Excluding non-recurring, non-cash charges taken during the second
quarter, Flotek reported a net loss from continuing operations of
($31,000), or $(0.00) per common share (fully diluted) for the
twelve months ended December 31,
2015.
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization, or Adjusted EBITDA (a non-GAAP measure of financial
performance), for the year ended December
31, 2015, was $19.0 million,
compared to $98.3 million for the
year ended December 31, 2014.
For the year ended December 31,
2015, Flotek's non-cash share-based compensation expense was
approximately $14.7 million.
For the year ended December 31, 2014,
non-cash share-based compensation was $10.5
million.
A presentation of non-cash share based compensation and a
reconciliation of GAAP net income to EBITDA can be found at the
conclusion of this release.
Consolidated gross margin decreased to 34.4% for the year ended
December 31, 2015, from 40.7% from
the corresponding 2014 period.
"In arguably the worst oilfield operating environment in my
career, Flotek held its own and even made progress in key areas of
oilfield chemistry and international opportunities," said
John Chisholm, Flotek's Chairman,
President and Chief Executive Officer. "The growth in volumes of
our core CnF® completion chemistries both year-over-year and
sequentially in the fourth quarter is both an indication of the
growing recognition of the benefits of our proprietary chemistry
technology as well as the efforts of the entire Flotek team in
remaining focused on the goal of educating the market on the
economic benefits of our products."
"We understand the challenges ahead in the coming year; however,
we also believe those challenges present opportunities in working
with our clients and prospective clients to show the compelling
economic benefits of CnF® chemistries in even the most challenging
economic and operating environments," added Chisholm. "We begin
2016 with a belief that Flotek can make a positive difference for
our clients with our portfolio of oilfield technologies and that,
in turn, over time will make a positive difference for our
shareholders. We have started the year continuing to see growing
interest in our completion chemistries and believe, if sustained,
will lead to even larger sales volumes in the months ahead."
"However, we aren't kidding ourselves, as we know the operating
environment is challenging, and may very well become even
more challenging, which could impact our short-term results,"
concluded Chisholm. "As such, we continue to carefully assess each
business segment, are looking even more carefully at operations to
make certain we balance prudence in the current environment while
not sacrificing opportunities for long-term growth. In short we are
focused on balancing short-term liquidity with long-term
opportunity."
A complete review of the Company's year-end financial position
can be found in the Company's annual report filed with the U.S.
Securities and Exchange Commission this afternoon.
Fourth Quarter 2015 Results
For the three months ended December 31,
2015, Flotek posted revenue of $77.0
million, a decrease of $47.5
million, or 38.1%, compared to $124.5
million in the same period of 2014. Revenue decreased
$10.9 million, or 12.4%, compared to
third quarter 2015.
Flotek reported a loss from operations for the three months
ended December 31, 2015, of
$2.1 million, a decrease of
$25.6 million compared to
$23.6 million in the same period of
2014. Income from Operations decreased $4.8
million compared to third quarter 2015.
In the fourth quarter, 2015 Flotek recorded an income tax
benefit of $1.2 million, compared to
an income tax expense of $6.9 million
in the fourth quarter of 2014.
On a GAAP basis, Flotek reported a net loss per share (fully
diluted) for the three months ended December
31, 2015, of $.03 compared to
earnings per share (fully diluted) of $.29 for the three months ended December 31, 2014.
Earnings Before Interest, Taxes, Depreciation and Amortization,
or EBITDA, for the three months ended December 31, 2015, was $2.3 million, a decrease of $25.7 million compared to $28.1 million for the three months ended
December 31, 2014.
For the quarter ended December 31,
2015, Flotek's non-cash share-based compensation expense was
approximately $4.2 million. For
the quarter ended December 31, 2014,
non-cash share-based compensation was $3.0
million.
Consolidated gross margins for the three months ended
December 31, 2015, were 36.5%
compared to 40.9% in the same period of 2014 and 35.5% in the third
quarter 2015.
A summary income statement reflecting fourth quarter results can
be found at the conclusion of this release.
Full Year 2015 – Segment Results
Energy Chemical Technologies revenue of $213.6 million for the year ended December 31, 2015, decreased $55.2 million, or 20.5%, from year ago levels,
compared to the 47.8% decline in market activity as measured by the
average North American rig count. Flotek believes that it has
outperformed these market indicators by continuing to aggressively
promote the benefits of CnF® chemistries.
CnF® sales volumes increased 18.0% year over year.
The Company believes that this success was achieved by
demonstrating the efficacy of its CnF® chemistries
through comparative analysis of wells with and without
CnF® chemistries, field validation results conducted by
E&P companies, and introduction of its direct-to-operators
sales program known as the Flotek StoreTM. Income from
Operations of $43.9 million for the
year ended December 31, 2015,
decreased $40.9 million, or 48.3%,
from year ago levels.
Drilling Technologies revenue of $52.1
million for the year ended December
31, 2015, decreased $61.2
million, or 54.0% from the full year 2014 primarily due to
decreased drilling rig activity partially offset by an increase in
Teledrift international revenue. Income from Operations for
the year ended December 31, 2015,
decreased by $46.4 million compared
to year ago levels, primarily resulting from the second quarter
2015 impairment charge and margin decreases. Income from
Operations, excluding the impairment, for the year ended
December 31, 2015, decreased by
$26.8 million from 2014.
Revenue for the Production Technologies segment of $12.3 million for the year ended December 31, 2015, revenue decreased by
$3.7 million, or 23.3% from the prior
corresponding period as sales of international
Petrovalve® tools and domestic lifting units decreased
by $4.8 million, partially offset by
a slight increase of rod pump equipment sales. Income from
Operations for the year ended December 31,
2015, decreased by $7.4
million compared to year ago levels. Income from
Operations, excluding the impairment taken in the second quarter of
2015, for the year ended December 31,
2015, decreased by $6.6
million from 2014.
Consumer and Industrial Chemical Technologies ("CICT") revenue
of $56.4 million for the year ended
December 31, 2015, increased
$5.3 million or 10.3%, from 2014.
Segment gross margin increased to 25.5% for the year ended
December 31, 2015, compared to 25.2%
in 2014. Income from operations of $8.7 million for the year ended December 31, 2015, increased $2.2 million, or 33.3%, from year ago levels.
Fourth Quarter 2015 – Segment Results
Energy Chemical Technologies segment reported revenue of
$50.3 million for the three months
ended December 31, 2015. Energy
Chemical Technologies revenue for the three months ended
December 31, 2015 decreased
$25.3 million, or 33.5%, compared to
the same period in 2014. Segment revenue for the three months
ended December 31, 2015 decreased
$9.9 million, or 16.4%, compared to
third quarter 2015.
Income from operations for the Energy Chemical Technologies
segment of $10.9 million decreased
$13.3 million, or 54.9%, for the
three months ended December 31, 2015,
compared to the same period of 2014. Income from operations
for the segment decreased $3.4
million, or 23.6%, compared to third quarter 2015.
Drilling Technologies reported revenue of $10.3 million for the three months ended
December 31, 2015, a decrease of
$21.0 million, or 67.1%, relative to
the same period in 2014. Segment revenue for the three months ended
December 31, 2015, decreased
$0.5 million, or 5.0%, compared to
third quarter 2015.
Drilling Technologies reported a loss from operations of
$2.8 million for the three months
ended December 31, 2015, a decrease
of $8.7 million as compared to the
same period of 2014. Income from operations for the segment
decreased $0.2 million, or 6.7%,
compared to the third quarter 2015.
Revenue for the Production Technologies segment of $2.9 million for the three months ended
December 31, 2015, decreased by
$3.0 million, or 51.3%, from the same
period in 2014. Segment revenue for the three months ended
December 31, 2015, decreased
$0.2 million, or 6.6%, compared to
third quarter 2015.
Production Technologies reported a loss from operations of
$1.2 million for the three months
ended December 31, 2015, a decrease
of $2.5 million compared to the same
period in 2014. Income from operations for the segment decreased
$0.3 million, or 40.0%, compared to
third quarter 2015.
CICT revenue of $13.6 million for
the three months ended December 31,
2015, increased $1.8 million,
or 15.5%, compared to the same period in 2014. Segment revenue for
the three months ended December 31,
2015, decreased $0.3 million,
or 2.2%, compared to third quarter 2015.
Income from operations for the CICT segment of $1.9 million increased $0.5 million, or 30.8%, for the three months
ended December 31, 2015, compared to
the same period of 2014. Income from operations for the segment
increased $0.2 million, or 12.8%,
compared to third quarter, 2015.
Full Year 2015 - Financial Metrics
Accounts receivable, net of the allowance for doubtful accounts,
at December 31, 2015, was
$49.2 million, compared to
$78.6 million December 31, 2014. The Company's allowance for
doubtful accounts was 2.4% of accounts receivable at December 31, 2015.
Depreciation and amortization expense not included in gross
margin, for the year ended December 31,
2015, increased by $1.3
million, or 13.0% from 2014. This increase was
primarily attributable to the depreciation of improvements to
facilities and equipment that were added during the later portion
of 2014.
Interest expense decreased $0.1
million for the year ended December
31, 2015, compared to 2014.
"The success of Flotek is a direct result of the people of
Flotek and we are fortunate to have assembled one of the most
professional teams in our business," said Chisholm. "While we
understand the daunting challenges ahead, I remain optimistic about
Flotek's future as I am confident my colleagues will embrace the
challenges – as they have in the past – and find ways to maximize
value for all our stakeholders, remaining a top-performing energy
technology company across the cycle."
Operational and Project Updates
Flotek's plans to complete construction of a new 50,000-plus
square foot global research and innovation headquarters in
Houston continue to move ahead
with opening scheduled for mid-year 2016. The state-of-the-art
facility will bring all of Flotek's scientists under one roof and
provide unprecedented access to the Company's theoretical and
applied research to Flotek's clients.
Demand for Flotek's chemistry research capabilities continues to
grow. Due to demand from clients for applied oilfield chemistry
research, Flotek recently added a second shift of analytical
scientists in its Woodlands facility.
In addition, the Company continues to expand its research
partnerships with leading Universities focused on energy chemistry
research including Texas A&M, the
University of Kansas, the University of Wyoming, the University of Calgary, Rice
University, the University of
Oklahoma and the University of North
Dakota.
"In addition to the premier scientific team at Flotek, our
partnerships with leading universities allows us to leverage our
expertise with additional theoretical and applied research assets
that help accelerate existing projects as well as address new
opportunities that will shape the next generation of oilfield
technology," said Chisholm. "We believe our continued focus on
research is being recognized by the market creating new
opportunities for Flotek in chemistry as well as across other
product lines. I believe our ability to grow our core chemistry
sales in a very difficult market is a direct result of our growing
credibility as a hub for oilfield chemistry research."
During the quarter, the Company completed 17 validations for
operators across diverse basins and plays including the Permian and
Anadarko basins; Eagle Ford,
Utica and Bakken shales; and the
STACK and Mississippi Lime plays. While validations may be slightly
extended as a result of current market fundamentals, Flotek
continues to see a plethora of opportunities as new clients search
for ways to maximize economic benefits in a challenging commodity
price environment.
In a new application opportunity for Flotek chemistry, Flotek
completed its first offshore "FracPack" treatment using CnF®
chemistries. And, the Company continues to find success in CnF®
assisted well remediations, a trend we believe could continue in an
environment with more moderate commodity
prices.
While the Company's drilling technologies business is challenged
and will remain so until overall oilfield activity improves, the
segment did perform better than overall activity in the fourth
quarter. We believe that trend could continue as smaller, capital
challenged competitors exit the marketplace, a common phenomenon in
the trough of the cycle. While we don't expect any improvement in
pricing or margins in the near-term, we have seen pockets of
revenue growth such as North
Louisiana where revenues increased by over 50% sequentially
in the fourth quarter. In addition, the Company is likely to
consider a number of strategic options to improve the value of this
business for all our stakeholders.
The Company's production technologies business continues to
build relationships with key vendors and customers and should
benefit from those efforts in 2016. While drilling and completion
activity continues to be challenged, opportunities to assist
companies in sustaining and improving existing production should
remain. With an emerging supply chain agreement for key lift
technology combined with the Company's purchase of International
Artificial Lift now a year ago, the Company believes that this
segment is positioned to benefit from continued interest in new
technologies to assist in extending the life of existing
production.
"There is no question the oil and gas business is a difficult
business today, certainly more challenging than anytime over the
past two decades," concluded Chisholm. "However, our chemistry
technologies have opportunities to experience growth given current
market fundamentals and we will continue to explore all options to
create value in our other oilfield related businesses. I am
confident we have the right people in the right places to help
Flotek not only survive, but grow, in the months and years
ahead."
Conference Call Details
Flotek will host a conference call on Thursday, January 28, 2016 at 7:00 AM CST (8:00 AM
EST) to discuss its operating results for the three and
twelve-months ended December 31,
2015. To participate in the call participants should dial
800-682-8914 approximately 5 minutes prior to the start of the
call.
The call can also be accessed from Flotek's website at
www.flotekind.com.
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.
Flotek Industries,
Inc.
|
Reconciliation of
Non-GAAP Items and Non-Cash Items Impacting Earnings
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
12/31/2015
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2014
|
|
|
|
(in thousands,
except per share data)
|
|
(in thousands,
except per share data)
|
GAAP Net Income
(Loss) and Reconciliation to Adjusted EBITDA
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
|
$ (1,375)
|
|
$ 16,272
|
|
$ (13,462)
|
|
$ 53,603
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
459
|
|
351
|
|
1,762
|
|
1,610
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Benefit)
Expense
|
|
(1,165)
|
|
6,856
|
|
(7,654)
|
|
25,281
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
4,411
|
|
4,572
|
|
18,024
|
|
17,848
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
|
$ 2,330
|
|
$ 28,051
|
|
$ (1,330)
|
|
$ 98,342
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
inventory and rental equipment
|
|
-
|
|
-
|
|
20,372
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Non-GAAP)
|
|
$ 2,330
|
|
$ 28,051
|
|
$ 19,042
|
|
$ 98,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Non-Cash
Items Impacting Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense
|
|
$ 4,201
|
|
$ 3,047
|
|
$ 14,681
|
|
$ 10,476
|
|
|
|
|
|
|
|
|
|
|
|
Less income tax
effect at 35%
|
|
(1,470)
|
|
(1,066)
|
|
(5,138)
|
|
(3,667)
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense, net of tax
|
|
$ 2,731
|
|
$ 1,981
|
|
$ 9,543
|
|
$ 6,809
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding (Fully Diluted)
|
|
54,544
|
|
55,472
|
|
54,459
|
|
55,526
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense Per Share (Fully Diluted)
|
|
$
0.05
|
|
$
0.04
|
|
$
0.18
|
|
$
0.12
|
Flotek Industries,
Inc.
|
Reconciliation of
Earnings Per Share Adjusted For Impairment
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
12/31/2015
|
|
12/31/2015
|
|
(in thousands,
except per share data)
|
Reconciliation of
Earnings Per Share Adjusted For Impairment
|
|
|
|
|
|
|
|
Income (loss)
before income taxes (as reported)
|
(2,539)
|
|
(21,116)
|
|
|
|
|
Impairment of
inventory and rental equipment
|
-
|
|
20,372
|
|
|
|
|
Income (loss)
before taxes (excluding impairment)
|
$
(2,539)
|
|
$
(744)
|
|
|
|
|
Income tax benefit
(expense)
|
962
|
|
713
|
|
|
|
|
Net income (loss)
(excluding impairment)
|
$
(1,578)
|
|
$
(31)
|
|
|
|
|
Earnings per
common share:
|
|
|
|
Basic earnings per
common share
|
$
(0.03)
|
|
$
(0.00)
|
Diluted earnings per
common share
|
$
(0.03)
|
|
$
(0.00)
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
Weighted average
common shares used in computing basic earnings (loss) per common
share
|
54,544
|
|
54,459
|
Weighted average
common shares used in computing diluted earnings (loss) per common
share
|
54,544
|
|
54,459
|
Flotek Industries,
Inc.
|
Unaudited
Consolidated Balance Sheets
|
|
|
|
12/31/2015
|
|
12/31/2014
|
ASSETS
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 2,208
|
|
$ 1,266
|
Accounts receivable,
net of allowance for doubtful accounts of $1,189 and $847 at
September 30, 2015 and December 31, 2014,
respectively
|
49,197
|
|
78,624
|
Inventories,
net
|
85,492
|
|
85,958
|
Deferred tax assets,
net
|
2,649
|
|
2,696
|
Income taxes
receivable
|
4,700
|
|
—
|
Other current
assets
|
7,496
|
|
11,055
|
Total current
assets
|
151,742
|
|
179,599
|
Property and
equipment, net
|
91,913
|
|
86,111
|
Goodwill
|
72,820
|
|
71,131
|
Deferred tax assets,
net
|
17,229
|
|
12,907
|
Other intangible
assets, net
|
69,386
|
|
73,528
|
TOTAL
ASSETS
|
$ 403,090
|
|
$ 423,276
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 19,444
|
|
$ 33,185
|
Accrued
liabilities
|
12,894
|
|
12,314
|
Income taxes
payable
|
2263
|
|
1,307
|
Interest
payable
|
111
|
|
93
|
Current portion of
long-term debt
|
32,291
|
|
18,643
|
Total current
liabilities
|
67,003
|
|
65,542
|
Long-term debt, less
current portion
|
18,255
|
|
25,398
|
Deferred tax
liabilities, net
|
23,823
|
|
25,982
|
Total
liabilities
|
109,081
|
|
116,922
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Cumulative
convertible preferred stock, $0.0001 par value, 100,000 shares
authorized; no shares issued and outstanding
|
—
|
|
—
|
Common stock, $0.0001
par value, 80,000,000 shares authorized; 56,220,214 shares issued
and 53,536,101 shares outstanding at December 31, 2015; 54,633,726
shares issued and 53,357,811 shares outstanding at
December 31, 2014
|
6
|
|
5
|
Additional paid-in
capital
|
273,451
|
|
254,233
|
Accumulated other
comprehensive income (loss)
|
(1,237)
|
|
(502)
|
Retained
earnings
|
39,300
|
|
52,762
|
Treasury stock, at
cost; 1,784,897 and 449,397 shares at December 31, 2015 and
December 31, 2014, respectively
|
(17,869)
|
|
(495)
|
Flotek Industries,
Inc. stockholders' equity
|
293,651
|
|
306,003
|
Noncontrolling
interests
|
358
|
|
351
|
Total
equity
|
294,009
|
|
306,354
|
TOTAL LIABILITIES
AND EQUITY
|
$ 403,090
|
|
$ 423,276
|
Flotek Industries,
Inc.
|
Unaudited
Consolidated Statements of Operations
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
12/31/2015
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2014
|
|
(in thousands,
except per share data)
|
|
(in thousands,
except per share data)
|
Revenue
|
$ 77,014
|
|
$ 124,503
|
|
$ 334,359
|
|
$ 449,157
|
Cost of
revenue
|
48,909
|
|
73,613
|
|
219,249
|
|
266,198
|
Gross
margin
|
28,104
|
|
50,890
|
|
115,110
|
|
182,959
|
Expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
25,211
|
|
23,152
|
|
95,483
|
|
87,146
|
Depreciation and
amortization
|
2,749
|
|
2,513
|
|
11,006
|
|
9,738
|
Research and
development
|
2,182
|
|
1,377
|
|
7,455
|
|
4,976
|
Impairment of
inventory and rental equipment
|
-
|
|
-
|
|
20,372
|
|
-
|
Loss (gain) on
disposal of long-lived assets
|
16
|
|
280
|
|
(33)
|
|
211
|
Total
expenses
|
30,158
|
|
27,322
|
|
134,283
|
|
102,071
|
Income (loss) from
operations
|
(2,054)
|
|
23,568
|
|
(19,173)
|
|
80,888
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(459)
|
|
(351)
|
|
(1,762)
|
|
(1,610)
|
Other income
(expense), net
|
(30)
|
|
(89)
|
|
(181)
|
|
(394)
|
Total other income
(expense)
|
(486)
|
|
(440)
|
|
(1,943)
|
|
(2,004)
|
Income (loss)
before income taxes
|
(2,539)
|
|
23,128
|
|
(21,116)
|
|
78,884
|
Income tax benefit
(expense)
|
1,164
|
|
(6,856)
|
|
7,654
|
|
(25,281)
|
Net income
(loss)
|
$ (1,375)
|
|
$ 16,272
|
|
$ (13,462)
|
|
$ 53,603
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share:
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
$ (0.03)
|
|
$
0.30
|
|
$ (0.25)
|
|
$
0.98
|
Diluted earnings
(loss) per common share
|
$ (0.03)
|
|
$
0.29
|
|
$ (0.25)
|
|
$
0.97
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
Weighted average
common shares used in computing basic earnings (loss) per common
share
|
54,544
|
|
54,650
|
|
54,459
|
|
54,511
|
Weighted average
common shares used in computing diluted earnings (loss) per common
share
|
54,544
|
|
55,472
|
|
54,459
|
|
55,526
|
Flotek Industries,
Inc.
|
Unaudited
Consolidated Statements of Cash Flows
|
|
|
Year
Ended
|
|
12/31/2015
|
|
12/31/2014
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$ (13,462)
|
|
$ 53,603
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Impairment of
inventory and rental equipment
|
20,372
|
|
-
|
Depreciation and
amortization
|
18,024
|
|
17,848
|
Amortization of
deferred financing costs
|
346
|
|
343
|
Accretion of debt
discount
|
-
|
|
-
|
Provision for
doubtful accounts
|
1,132
|
|
481
|
Provision for
inventory reserves and market adjustments
|
-
|
|
358
|
Gain on sale of
assets
|
(3,860)
|
|
(3,393)
|
Stock compensation
expense
|
14,681
|
|
10,476
|
Deferred income tax
provision (benefit)
|
(7,928)
|
|
1,502
|
Excess tax benefit
related to share-based awards
|
(1,273)
|
|
(3,448)
|
Changes in current
assets and liabilities:
|
|
|
|
Accounts
receivable
|
27,930
|
|
(13,773)
|
Inventories
|
(17,626)
|
|
(23,054)
|
Income taxes
receivable
|
(4,700)
|
|
-
|
Other current
assets
|
2,565
|
|
(5,602)
|
Accounts
payable
|
(13,545)
|
|
13,154
|
Accrued
liabilities
|
155
|
|
(1,174)
|
Income taxes
payable
|
3,842
|
|
1,384
|
Interest
payable
|
18
|
|
(18)
|
Net cash provided by
operating activities
|
26,671
|
|
48,687
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(20,468)
|
|
(19,907)
|
Proceeds from sale of
assets
|
4,172
|
|
4,639
|
Payments for
acquisitions, net of cash acquired
|
(1,250)
|
|
(5,704)
|
Purchase of patents
and other intangible assets
|
(658)
|
|
(731)
|
Net cash used in
investing activities
|
(18,204)
|
|
(21,703)
|
Cash flows from
financing activities:
|
|
|
|
Repayments of
indebtedness
|
(10,143)
|
|
(10,292)
|
Borrowings on
revolving credit facility
|
382,666
|
|
357,183
|
Repayments on
revolving credit facility
|
(366,018)
|
|
(364,955)
|
Debt issuance
costs
|
(10)
|
|
(399)
|
Excess tax benefit
related to share-based awards
|
1,273
|
|
3,448
|
Purchase of treasury
stock related to share-based awards
|
(6,345)
|
|
(6,294)
|
Proceeds from sale of
common stock
|
879
|
|
906
|
Repurchase of common
stock
|
(9,697)
|
|
(10,395)
|
Proceeds from
exercise of stock options
|
39
|
|
462
|
Proceeds from exercise of stock warrants
|
-
|
|
1,545
|
Proceeds from
noncontrolling interest
|
7
|
|
351
|
Net cash used in
financing activities
|
(7,349)
|
|
(28,440)
|
Effect of changes in
exchange rates on cash and cash equivalents
|
(176)
|
|
(8)
|
Net increase in
cash and cash equivalents
|
942
|
|
(1,464)
|
Cash and cash
equivalents at the beginning of period
|
1,266
|
|
2,730
|
Cash and cash
equivalents at the end of period
|
$ 2,208
|
|
$ 1,266
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/flotek-industries-inc-announces-2015-results-provides-financial-and-operational-update-announces-year-end-2015-conference-call-details-300210960.html
SOURCE Flotek Industries, Inc.