HOUSTON, July 26, 2016 /PRNewswire/ -- Flotek
Industries, Inc. ("Flotek" or the "Company") (FTK) today
announced results for the three months ended June 30, 2016.
As reported on Form 10-Q filed with the U.S. Securities and
Exchange Commission, Flotek reported revenue for the three months
ended June 30, 2016, of $72.3 million, a decrease of $14.7 million, or 16.9%, compared to the same
period of 2015. The decrease in revenue was driven by the continued
decline in drilling activity, as indicated by the 53.2% reduction
in average North American rig count for the three months ended
June 30, 2016, versus the same period
of 2015. Sequentially, revenue increased slightly despite the
35.1% decrease in total average North American active drilling rig
count when compared to the first quarter, 2016.
Flotek reported a Loss from Operations of $2.7 million for the quarter ended June 30, 2016.
The Company recorded an income tax benefit of $1.2 million, for the three months ended
June 30, 2016.
For the quarter ended June 30,
2016, the Company reported a net loss of $2.3 million or $(0.04) per common share (fully diluted),
compared to net income (excluding non-cash impairment charges) of
$1.1 million, or $0.02 per common share (fully diluted) in the
second quarter of 2015.
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization, or adjusted EBITDA (a non-GAAP measure of financial
performance), for the quarter ended June 30,
2016, was $0.5 million,
compared to $6.4 million for the
quarter ended June 30, 2015.
For the quarter ended June 30,
2016, Flotek's non-cash share-based compensation expense was
approximately $3.4 million
($2.2 million, net of tax at
35%). For the quarter ended June 30,
2015, non-cash share-based compensation was $3.4 million ($2.2
million, net of tax at 35%).
A presentation of non-cash share based compensation and a
reconciliation of GAAP net income to adjusted EBITDA can be found
at the conclusion of this release. Management believes that
adjusted EBITDA provides useful information to investors to assess
and understand operating performance.
Consolidated gross margin decreased to 33.1% for the quarter
ended June 30, 2016, from 33.6% for
the corresponding 2015 period.
"While the oilfield market continued to search for a cyclical
bottom in the second quarter, the women and men of Flotek continued
to work diligently to post industry-leading results in a very
difficult environment," said John
Chisholm, Flotek's Chairman, President and Chief Executive
Officer. "Typically our most challenging quarter in any environment
due to the seasonal break-up in Canada, we continued to gain international
traction, especially in the Middle
East, worked hard to maintain momentum with our leading-edge
customized, precision chemistry in North
America and returned a sense of stability to our downhole
and production technologies businesses both here and abroad.
Additionally, after a challenging April, Flotek's chemistry
business experienced consistent and noticeable improvement through
the balance of the quarter."
"We are pleased with continued progress in our energy chemistry
business and, although the timing of completions pushed modest
second quarter revenue opportunities into the third quarter, our
activity levels still outpaced overall market activity," added
Chisholm. "While calling cyclical market inflection points is never
an exact science, we are beginning to see encouraging signs of
market stabilization as well as slow and steadying opportunistic
spending by operators. The recovery will not happen all at once but
there are encouraging signs that activity planning is beginning to
gain traction in the more economically attractive domestic basins.
We expect second-half 2016 activity to present greater
opportunities than those available in the first six months of the
year."
"We continue to assess strategic opportunities for our
non-chemistry energy businesses and are in discussions with a
number of parties about a range of options. While there are no
guarantees that these discussions will result in any strategic
repositioning, we are encouraged by the interest and will continue
to pursue and review opportunities that may add value and focus to
our overall enterprise."
"Even with the challenges in the short-term environment, we
continue to look ahead optimistically, knowing that such short-term
challenges continue to present longer-term opportunities," added
Chisholm. "For example, our focus on Prescriptive Chemistry
Management™, our new fluids management effort, led to the
opportunity in Argentina (as
discussed in our press release earlier this week) and is creating
exciting, new domestic opportunities as well. We look ahead to the
second-half of 2016 and into 2017 with a sense of optimism that, as
the market finds its footing and begins to reaccelerate, Flotek is
well positioned to expand its leadership in oilfield chemistry
technology, both here and in new global markets."
"Nothing is likely to showcase Flotek's talents more than its
new Global Research and Innovation Center, scheduled to open in the
third quarter," concluded Chisholm. "Our focus on client
collaboration centered on addressing their most arduous challenges
will fit nicely with our new, state-of-the art facility which is
being completed just as we turn the corner and begin the next
renaissance in the oil and gas industry."
A complete review of the Company's second quarter financial
results and quarter-end financial position can be found in the
Company's quarterly report filed with the U.S. Securities and
Exchange Commission this afternoon.
Second Quarter 2016 – Segment Results
Energy Chemistry Technologies segment reported revenue of
$43.4 million for the three months
ended June 30, 2016. Energy Chemistry
Technologies revenue for the three months ended June 30, 2016, decreased $13.1 million, or 23.2%, compared to the same
period in 2015. Energy Chemistry Technologies revenue for the
six months ended June 30, 2016,
decreased $15.1 million, or 14.6%,
versus the same period in 2015. Segment revenue for the three
months ended June 30, 2016, decreased
$1.3 million, or 2.9%, compared to
first quarter, 2016.
Income from operations of $7.6
million for the Energy Chemistry Technologies segment
decreased $4.3 million, or 36.2%, for
the three months ended June 30, 2016,
compared to the same period of 2015. Income from operations
for the Energy Chemistry segment for the six months ended
June 30, 2016, decreased $3.1 million, or 16.7%, compared to same period
of 2015. Income from operations for the segment decreased
$0.4 million, or 5.4%, compared to
first quarter, 2016.
Consumer and Industrial Chemistry Technologies ("CICT") revenue
of $20.7 million for the three months
ended June 30, 2016, increased
$5.2 million, or 33.7%, compared to
the same period in 2015. CICT revenue for the six months ended
June 30, 2016, increased $10.9 million, or 37.6%, versus the same period
in 2015. Segment revenue for the three months ended
June 30, 2016, increased $1.6 million, or 8.2%, compared to first quarter,
2016.
Income from operations for the CICT segment of $2.7 million for the three months ended
March 31, 2016, was essentially flat
compared to the same period of 2015. Income from operations for the
CICT segment for the six months ended June
30, 2016, increased $1.0
million, or 20.0%, compared to same period of 2015.
Income from operations for the segment decreased $0.7 million, or 20.7%, compared to first
quarter, 2016.
Drilling Technologies reported revenue of $6.4 million for the three months ended
June 30, 2016, a decrease of
$6.0 million, or 48.3%, relative to
the same period in 2015. Drilling Technologies revenue for
the six months ended June 30, 2016,
decreased $18.2 million, or 58.7%,
versus the same period in 2015. Segment revenue for the three
months ended June 30, 2016, decreased
$0.1 million, or 1.3%, compared to
first quarter, 2016.
Loss from operations for the three and six months ended
June 30, 2016, decreased by $19.7
million and increased by $20.6
million, respectively, versus the same periods of 2015,
primarily resulting from the second quarter 2015 and first quarter
2016 impairment charges. Loss from operations, excluding the 2015
impairment, for the three months ended June
30, 2016, decreased by $0.1
million, versus the same period of 2015, on a 48.3% revenue
decrease due to continued operational cost improvements that
included lower depreciation expense, a 35% year over year headcount
reduction, field location closures, and other cost reduction
measures. Loss from operations, excluding impairments, for the six
months ended June 30, 2016, increased
by $3.7 million, versus the same
period of 2015, primarily due to reductions in revenue and pricing
pressure that resulted in customer price concessions.
Revenue for the Production Technologies segment of $1.9 million for the three months ended
June 30, 2016, decreased by
$0.9 million, or 32.0%, from the same
period in 2015. Production Technologies revenue for the six months
ended June 30, 2016, decreased
$2.4 million, or 38.5%, versus the
same period in 2015. Segment revenue for the three months
ended June 30, 2016, decreased
$0.2 million, or 7.6%, compared to
first quarter, 2016.
Loss from operations decreased $0.3
million and increased $4.6
million for the three and six months ended June 30,
2016, respectively, versus the same periods in 2015. Loss from
operations, excluding impairments, increased by $0.5 million and $1.4
million for the three and six months ended June 30,
2016, respectively, versus the same periods in 2015. These
increases were due to lower revenue volume and increased costs as
the segment pursues new market strategies.
Second Quarter, 2016 - Financial Metrics
Accounts receivable, net of the allowance for doubtful accounts,
at June 30, 2016, was $45.5 million, compared to $49.2 million at December
31, 2015. The Company's allowance for doubtful accounts was
1.8% of accounts receivable at June 30,
2016.
Depreciation and amortization expense not included in gross
margin, for the quarter ended June 30,
2016, decreased $0.4 million
versus the same period of 2015.
Interest and other expense for the three months ended
June 30, 2016, increased $0.3 million versus the same period of 2015.
Operational and Project Updates
As noted earlier, Flotek's chemistry segment continues to gain
traction with clients in both domestic and international markets.
The Company's hallmark CnF® completion chemistry, after a slow
start to the quarter in April, showed significant recovery in the
following two months.
"It is not unusual, as a market searches for a cyclical trough,
for intra-quarter results to be uneven and somewhat fickle," said
Chisholm. "Our domestic sales team continues to make meaningful
inroads with new prospects and continues to work with existing
clients to understand the importance and benefits of appropriate
loading and chemistry combinations that will enable and protect the
reservoir. We remain pleased with our progress – especially given
the challenging operating environment – in spreading the message
about the benefit of Flotek's chemistry to our clients and
prospects."
Flotek's complete fluid systems package, now branded
Prescriptive Chemistry Management™, is beginning to garner the
attention of operators both in North
America and elsewhere. While in the nascent stages, Flotek's
ability to design complete fluid systems is attractive to operators
who understand the benefits of customized fluid systems for
specific reservoirs and applications. With the introduction of
Pressure reducing FluidTM (PrF™) and in combination with
CnF® completion chemistries, Flotek is becoming a premier
multi-dimensional provider of specialty oilfield chemistries that
can enable and protect E&P companies' reservoirs around the
world. The addition of Flotek's Global Research and Innovation
Center should extend Flotek's reach as well as extend the depth and
breadth of client relationships as the cycle turns the corner and
activity begins to accelerate in the coming quarters.
"Cyclical inflection points are not precise nor does the
recovery occur in a straight line," added Chisholm. "And, while we
see increasing signs of a pick-up in activity ahead which creates
optimism, we maintain a sense of realism regarding the slope of the
recovery. We are excited about the future and continue to manage
our business to ensure we have the capital resources to capture
opportunities as they present themselves in the months ahead."
Update on Legal Matters
As previously disclosed, the Securities and Exchange Commission
is conducting a fact-finding inquiry with which the Company is
fully cooperating. Various shareholder lawsuits have also been
filed which the Company is seeking to dismiss.
In addition, the special technology committee continues to work
with MHA Petroleum Consultants as they complete their analysis on
the performance of Flotek's CnF® completion chemistries in various
basins. MHA is completing its review of data in the South Texas and Permian/Delaware Basins with
the results to be released soon.
Conference Call Details
Flotek will host a conference call on Wednesday, July 27, 2016, at 7:30 AM CDT (8:30 AM
EDT) to discuss its operating results for the three months
ended June 30, 2016. To
participate in the call participants should dial 800-676-1841
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. The Company also serves commercial and industrial
markets with a portfolio of diverse chemistry technologies.
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
|
|
Six Months
Ended
|
|
|
|
|
|
6/30/2016
|
|
6/30/2015
|
|
6/30/2016
|
|
6/30/2015
|
|
|
|
|
|
(in thousands,
except per share data)
|
GAAP Net Income
(Loss) and Reconciliation to Adjusted EBITDA
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
|
|
$
(2,280)
|
|
$ (12,547)
|
|
$ (32,465)
|
|
$ (14,062)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
701
|
|
420
|
|
1,200
|
|
828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Benefit
|
|
|
(1,192)
|
|
(6,483)
|
|
(17,630)
|
|
(6,889)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
3,230
|
|
4,610
|
|
7,519
|
|
9,181
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
|
|
$
459
|
|
$ (14,000)
|
|
$ (41,376)
|
|
$ (10,942)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
inventory and long-lived assets
|
-
|
|
20,372
|
|
40,435
|
|
20,372
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Non-GAAP)
|
|
|
$
459
|
|
$
6,372
|
|
$
(941)
|
|
$
9,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Non-Cash
Items Impacting Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense
|
|
|
$
3,398
|
|
$
3,449
|
|
$
5,763
|
|
$
6,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less income tax
effect at 35%
|
|
(1,189)
|
|
(1,207)
|
|
(2,017)
|
|
(2,419)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense, net of tax
|
$
2,209
|
|
$
2,242
|
|
$
3,746
|
|
$
4,491
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding (Fully Diluted)
|
54,910
|
|
54,264
|
|
54,827
|
|
54,356
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense Per Share (Fully Diluted)
|
$
0.04
|
|
$
0.04
|
|
$
0.07
|
|
$
0.08
|
|
*Management believes
that adjusted EBITDA for the three and six months ended June 30,
2016, and June 30, 2015, is useful to investors to assess and
understand operating performance, especially when comparing those
results with previous and subsequent periods. Management
views the impairment of inventory and long-lived assets to be
outside of the Company's normal operating results. Management
analyzes operating results without the impact of this item as an
indicator of performance, to identify underlying trends in the
business and to establish operational goals.
|
Flotek Industries,
Inc. Reconciliation of Earnings Per Share Adjusted For
Impairment
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
6/30/2016
|
6/30/2015
|
|
6/30/2016
|
6/30/2015
|
|
(in thousands,
except per share data)
|
Reconciliation of
Earnings Per Share Adjusted For Impairment
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes (as reported)
|
$
(3,472)
|
$
(19,030)
|
|
$
(50,095)
|
$
(20,951)
|
|
|
|
|
|
|
Impairment of
inventory and long-lived assets
|
-
|
20,372
|
|
40,435
|
20,372
|
|
|
|
|
|
|
Income (loss)
before taxes (excluding impairment)
|
$
(3,472)
|
$
1,342
|
|
$
(9,660)
|
$
(579)
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
1,192
|
(255)
|
|
2,765
|
151
|
|
|
|
|
|
|
Net income (loss)
(excluding impairment)
|
$
(2,280)
|
$
1,087
|
|
$
(6,895)
|
$
(428)
|
|
|
|
|
|
|
Earnings (loss)
per common share:
|
|
|
|
|
|
Basic earnings
(loss) per common share
|
$
(0.04)
|
$
0.02
|
|
$
(0.13)
|
$
(0.01)
|
Diluted earnings
(loss) per common share
|
$
(0.04)
|
$
0.02
|
|
$
(0.13)
|
$
(0.01)
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
Weighted average
common shares used in computing basic earnings (loss) per common
share
|
54,910
|
54,624
|
|
54,827
|
54,356
|
Weighted average
common shares used in computing diluted earnings (loss) per common
share
|
54,910
|
54,957
|
|
54,827
|
54,356
|
Flotek Industries,
Inc. Unaudited Consolidated Balance
Sheets
|
|
|
|
|
|
6/30/2016
|
|
12/31/2015
|
ASSETS
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
3,840
|
|
$
2,208
|
Accounts receivable,
net of allowance for doubtful accounts of $828 and $1,189 at June
30, 2016 and December 31, 2015, respectively
|
45,528
|
|
49,197
|
Inventories,
net
|
78,253
|
|
85,492
|
Income taxes
receivable
|
15,874
|
|
4,700
|
Deferred tax assets,
net
|
3,502
|
|
2,649
|
Other current
assets
|
6,602
|
|
7,496
|
Total current
assets
|
153,599
|
|
151,742
|
Property and
equipment, net
|
80,759
|
|
91,913
|
Goodwill
|
72,820
|
|
72,820
|
Deferred tax assets,
net
|
-
|
|
17,229
|
Other intangible
assets, net
|
58,166
|
|
69,386
|
TOTAL
ASSETS
|
$ 365,344
|
|
$ 403,090
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 23,795
|
|
$ 19,444
|
Accrued
liabilities
|
9,278
|
|
12,894
|
Income taxes
payable
|
-
|
|
2,263
|
Interest
payable
|
185
|
|
111
|
Current portion of
long-term debt
|
50,228
|
|
32,291
|
Total current
liabilities
|
83,486
|
|
67,003
|
Long-term debt, less
current portion
|
14,684
|
|
18,255
|
Deferred tax
liabilities, net
|
526
|
|
23,823
|
Total
liabilities
|
98,696
|
|
109,081
|
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; 56,839,682 shares issued
and 53,906,902 shares outstanding at June 30, 2016; 56,220,214
shares issued and 53,536,101 shares outstanding at
December 31, 2015
|
6
|
|
6
|
Additional paid-in
capital
|
278,840
|
|
273,451
|
Accumulated other
comprehensive income (loss)
|
(913)
|
|
(1,237)
|
Retained
earnings
|
6,835
|
|
39,300
|
Treasury stock, at
cost; 1,881,390 and 1,784,897 shares at June 30, 2016 and
December 31, 2015, respectively
|
(18,478)
|
|
(17,869)
|
Flotek Industries,
Inc. stockholders' equity
|
266,290
|
|
293,651
|
Noncontrolling
interests
|
358
|
|
358
|
Total
equity
|
266,648
|
|
294,009
|
TOTAL LIABILITIES
AND EQUITY
|
$ 65,344
|
|
$ 403,090
|
Flotek Industries,
Inc.
Unaudited Consolidated Statements of Operations
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
6/30/2016
|
|
6/30/2015
|
|
6/30/2016
|
|
6/30/2015
|
|
(in thousands,
except per share data)
|
|
(in thousands,
except per share data)
|
Revenue
|
$
72,319
|
|
$
87,030
|
|
$ 144,608
|
|
$ 169,904
|
Cost of
revenue
|
48,398
|
|
57,778
|
|
95,759
|
|
113,625
|
Gross
profit
|
23,921
|
|
29,252
|
|
48,849
|
|
55,779
|
Expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
21,982
|
|
23,021
|
|
47,435
|
|
46,588
|
Depreciation and
amortization
|
2,391
|
|
2,797
|
|
5,189
|
|
5,473
|
Research and
development
|
2,271
|
|
1,670
|
|
4,527
|
|
3,242
|
Impairment of
inventory and long-lived assets
|
-
|
|
20,372
|
|
40,435
|
|
20,372
|
Total
expenses
|
26,644
|
|
47,860
|
|
97,586
|
|
75,675
|
Loss from
operations
|
(2,723)
|
|
(18,608)
|
|
(48,737)
|
|
(19,896)
|
Other
expense
|
|
|
|
|
|
|
|
Interest
expense
|
(701)
|
|
(420)
|
|
(1,200)
|
|
(828)
|
Other expense,
net
|
(48)
|
|
(2)
|
|
(158)
|
|
(227)
|
Total other
expense
|
(749)
|
|
(422)
|
|
(1,358)
|
|
(1,055)
|
Loss before income
taxes
|
(3,472)
|
|
(19,030)
|
|
(50,095)
|
|
(20,951)
|
Income tax
benefit
|
1,192
|
|
6,483
|
|
17,630
|
|
6,889
|
Net
loss
|
$ (2,280)
|
|
$ (12,547)
|
|
$ (32,465)
|
|
$ (14,062)
|
|
|
|
|
|
|
|
|
Loss per common
share
|
|
|
|
|
|
|
|
Basic loss per common
share
|
$
(0.04)
|
|
$
(0.23)
|
|
$
(0.59)
|
|
$
(0.26)
|
Diluted loss per
common share
|
$
(0.04)
|
|
$
(0.23)
|
|
$
(0.59)
|
|
$
(0.26)
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
Weighted average
common shares used in computing basic loss per common
share
|
54,910
|
|
54,264
|
|
54,827
|
|
54,356
|
Weighted average
common shares used in computing diluted loss per common
share
|
54,910
|
|
54,264
|
|
54,827
|
|
54,356
|
Flotek Industries,
Inc.
Unaudited Consolidated Statements of Cash Flows
|
|
|
|
Six Months
Ended
|
|
6/30/2016
|
|
6/30/2015
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(32,465)
|
|
$
(14,062)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Impairment of
inventory and long-lived assets
|
40,435
|
|
20,372
|
Depreciation and
amortization
|
7,519
|
|
9,181
|
Amortization of
deferred financing costs
|
205
|
|
173
|
Gain on sale of
assets
|
(714)
|
|
(2,023)
|
Stock compensation
expense
|
5,763
|
|
6,910
|
Deferred income tax
benefit
|
(8,076)
|
|
(9,315)
|
Reduction in (excess)
tax benefit related to share-based awards
|
954
|
|
(2,149)
|
Changes in current
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
3,915
|
|
22,124
|
Inventories
|
(9,139)
|
|
(16,496)
|
Income taxes
receivable
|
(11,535)
|
|
(1,722)
|
Other current
assets
|
(543)
|
|
1,939
|
Accounts
payable
|
4,165
|
|
(6,033)
|
Accrued
liabilities
|
(2,153)
|
|
159
|
Income taxes
payable
|
(1,759)
|
|
2,232
|
Interest
payable
|
74
|
|
13
|
Net cash (used in)
provided by operating activities
|
(3,354)
|
|
11,303
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(8,956)
|
|
(8,963)
|
Proceeds from sale of
assets
|
858
|
|
2,188
|
Payments for
acquisition, net of cash acquired
|
-
|
|
(1,250)
|
Purchase of patents
and other intangible assets
|
(205)
|
|
(292)
|
Net cash used in
investing activities
|
(8,303)
|
|
(8,317)
|
Cash flows from
financing activities:
|
|
|
|
Repayments of
indebtedness
|
(3,571)
|
|
(6,571)
|
Borrowings on
revolving credit facility
|
171,397
|
|
204,150
|
Repayments on
revolving credit facility
|
(153,460)
|
|
(189,461)
|
Debt issuance
costs
|
(147)
|
|
(10)
|
(Reduction in) excess
tax benefit related to share-based awards
|
(954)
|
|
2,149
|
Purchase of treasury
stock related to share-based awards
|
(609)
|
|
(5,339)
|
Proceeds from sale of
common stock
|
446
|
|
543
|
Repurchase of common
stock
|
-
|
|
(7,260)
|
Proceeds from
exercise of stock options
|
134
|
|
22
|
Proceeds from
noncontrolling interest
|
-
|
|
7
|
Net cash provided by
(used in) financing activities
|
13,236
|
|
(1,770)
|
Effect of changes in
exchange rates on cash and cash equivalents
|
53
|
|
(7)
|
Net increase in
cash and cash equivalents
|
1,632
|
|
1,209
|
Cash and cash
equivalents at the beginning of period
|
2,208
|
|
1,266
|
Cash and cash
equivalents at the end of period
|
$
3,840
|
|
$
2,475
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/flotek-industries-inc-announces-second-quarter-2016-financial-and-operating-results-and-conference-call-information-300304336.html
SOURCE Flotek Industries, Inc.