HOUSTON, Feb. 8, 2017 /PRNewswire/ -- Flotek
Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today
announced results for the three- and twelve-months ended
December 31, 2016.
Results Highlights:
- As part of our strategic repositioning, we are executing a plan
to divest our Drilling Technologies and Production Technologies
segments. Effective December 31,
2016, Flotek has classified the assets, liabilities, and
results of operations for these two segments as "Discontinued
Operations" for all periods presented.
The following discussion points relate to Flotek's continuing
operations.
- Flotek announced 2016 annual revenue of $262.8 million, a decrease of 2.7% from 2015
levels. Fourth quarter revenue of $70.6
million was 10.5% higher than fourth quarter 2015 revenue
and 9.8% higher than third quarter 2016—a remarkable outcome in the
face of a 43% drop in completion activity, according to the U.S.
EIA.
- Sales volumes of Flotek's Complex nano-Fluid® (CnF®) suite of
completion chemistries increased 14.7% in 2016 when compared to
2015 levels. Fourth quarter volumes increased 12.4% sequentially.
Year-over-year revenues were up 11.6% while fourth quarter revenues
grew 21.4% sequentially.
- Consumer & Industrial Chemistry Technologies (CICT)
reported record revenue of $74.6
million for the full year 2016, up 32.3%
year-over-year.
- Flotek is continuing to expand its global footprint across
Asia, Middle East and Eastern Europe, improving international
revenues by 21.2% compared to the prior year period.
- For the twelve months ended December 31,
2016, Flotek reported net income from continuing operations
of $1.9 million or $0.03 per common share (fully diluted). For
the three months ended December 31,
2016, Flotek reported net income from continuing operations
of $3.9 million, or $0.07 per common share (fully diluted).
- Michelle Adams, worldwide vice
president of IBM Watson Platform, has joined Flotek's Board of
Directors, effective January 30,
2017, joining the Governance Committee.
- Flotek's acquisition of International Polymerics Inc. (IPI) in
August continues to provide a strategically-located staging center
in the Permian Basin that will help our cost curve as we serve the
many independent and innovative E&P companies in the
fast-changing and most active area in the U.S. shale industry.
- The innovative virtual Flotek Store provides a more direct
communication with exploration & production operating companies
to help better serve their needs, while significantly reducing
costs for our clients.
- In our commitment to innovation and research, Flotek has filed
or are pending the receipt of more than 70 patents, including over
40 unique CnF® formulations.
"The demand for Flotek's suite of consumer and industrial
chemistry products and our clients' trust in our CnF® technology
led to a stronger than expected fourth quarter," said John Chisholm, Flotek's Chairman, President and
Chief Executive Officer. "With numerous shale oil producers and
oilfield service suppliers now forecasting a low double-digit
growth rate in 2017, Flotek is well positioned to capture
opportunities through existing and prospective drillers seeking to
improve their well output."
"As we announced in January, Michelle
Adams, worldwide vice president of IBM Watson Platform, has
joined Flotek's Board of Directors, bringing a wealth of first
class expertise in innovation, entrepreneurship and sustainability.
We are excited to have her on our team and expect to leverage her
unique background in technology and cognitive learning."
Full-Year 2016 Results
As reported in the Form 10-K filed with the U.S. Securities and
Exchange Commission, Flotek reported revenue for the year ended
December 31, 2016 of $262.8 million, a decrease of $7.2 million, or 2.7%, compared to the year ended
December 31, 2015. Reduced demand
from oilfield market activity contributed to the annual decline,
but was partially offset by increased citrus terpene prices in our
CICT business.
Flotek reported net income from continuing operations for the
year ended December 31, 2016 of
$1.9 million, a decrease of
$5.3 million, or 73.4%, compared to
net income from continuing operations for the year ended
December 31, 2015.
The company recorded an income tax expense of $1.2 million, yielding an effective tax rate of
39.3% for the year ended December 31,
2016, compared to an income tax expense of $3.5 million yielding an effective tax rate of
32.7% in 2015.
For the year ended December 31,
2016 and excluding the impact of discontinued operations,
the company reported a net income of $1.9
million or $0.03 per share
(fully diluted), compared to net income of $7.2 million or $0.13 per share (fully diluted) for the year
ended December 31, 2015.
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization, or Adjusted EBITDA (a non-GAAP measure of financial
performance), excluding the impact of discontinuing operations for
the year ended December 31, 2016, was
$15.6 million, compared to
$20.9 million for the year ended
December 31, 2015. Flotek recognized
a one-time gain of $12.7 million
related to disgorgement of potential short-swing trading profits
from a stockholder.
For the year ended December 31,
2016, Flotek's non-cash share-based compensation expense,
excluding the impact of discontinuing operations, was approximately
$11.9 million, compared to
$12.9 million for the year ended
December 31, 2015.
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 34.5% for the year ended
December 31, 2016, from 35.7% in
2015, primarily attributable to increased inventory costs and
direct costs associated with manufacturing in the Consumer and
Industrial Chemistry Technologies segment, partially offset by
higher volumes of all CnF® products sold in Energy Chemistry
Technologies.
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 2016 Results
For the three months ended December 31,
2016, Flotek posted revenue of $70.6
million, an increase of $6.7
million, or 10.5%, compared to $63.9
million in the same period of 2015. Revenue increased
$6.3 million, or 9.8%, compared to
third quarter 2016.
Flotek reported Loss from Operations for the three months ended
December 31, 2016 of $5.6 million, an increase of $7.5 million, compared to Income from Operations
of $1.9 million in the same period of
2015. Income from Operations declined $3.3
million compared to third quarter 2016.
In the fourth quarter, 2016 Flotek recorded an income tax
expense of $2.6 million, compared to
an income tax expense of $0.2 million
in the fourth quarter of 2015.
On a GAAP basis, Flotek reported earnings per share (fully
diluted) for the three months ended December
31, 2016 of $0.07 compared to
earnings per share (fully diluted) of $0.02 for the three months ended December 31, 2015.
Earnings Before Interest, Taxes, Depreciation and Amortization,
or EBITDA, for the three months ended December 31, 2016, was $10.0 million, a increase of $5.9 million, compared to $4.1 million for the three months ended
December 31, 2015. The 2016 result
includes a one-time gain of $12.7
million related to disgorgement of potential short-swing
trading profits from a stockholder
For the quarter ended December 31,
2016, Flotek's non-cash share-based compensation expense was
approximately $3.4 million, compared
to $3.7 million for the quarter ended
December 31, 2015.
Consolidated gross margins for the three months ended
December 31, 2016, were 32.3%
compared to 38.5% in the same period of 2015 and 34.7% in the third
quarter 2016.
A summary income statement reflecting fourth quarter results can
be found at the conclusion of this release.
Full Year 2016 - Continuing Operation Segment Results
|
2016
|
2015
|
%
Change
|
$
Change
|
|
Energy Chemistry
Technology
|
|
Revenue
|
$188.2
million
|
$213.6
million
|
(11.9%)
|
($25.4
million)
|
|
Gross
Margin
|
39.6%
|
38.4%
|
|
|
|
Income from
Operations
|
$29.0
million
|
$43.9
million
|
(33.9%)
|
($14.9
million)
|
|
Consumer and
Industrial Chemical Technologies ("CICT")
|
|
Revenue
|
$74.6
million
|
$56.4
million
|
32.3%
|
$18.2
million
|
|
Gross
Margin
|
21.6%
|
25.5%
|
|
|
|
Income from
Operations
|
$9.7
million
|
$8.7
million
|
11.5%
|
$1.0
million
|
Energy Chemical Technologies revenue of $188.2 million for the year-ended December 31, 2016, a decrease of $25.4 million or 11.9%, compared to 2015 levels.
Segment gross margin increased to 39.6% for the year ended
December 31, 2016, compared to 38.4%
in 2015. Income from Operations of $29.0
million for the year ended December
31, 2016, representing a decrease $14.9 million, or 33.9%, from year ago
levels.
Consumer and Industrial Chemical Technologies ("CICT") revenue
of $74.6 million for the year ended
December 31, 2016, an increase of
$18.2 million or 32.3%, compared to
2015 levels. Segment gross margin decreased to 21.6% for the year
ended December 31, 2016, compared to
25.5% in 2015. Income from Operations of $9.7 million for the year ended December 31, 2016, representing an increase of
$0.9 million, or 10.5%, from year ago
levels.
Discontinued Operation Results
Drilling Technologies revenue of $27.6
million for the year ended December
31, 2016, a decrease of $24.5
million or 47.0%, compared to 2015 levels. Segment gross
margin increased to 32.4% for the year ended December 31, 2016, compared to 32.1% in 2015.
Loss from Operations for the year-ended December 31, 2016 increased by $17.2 million from 2015, primarily resulting from
first quarter 2016 impairment charges. Loss from Operations,
excluding the impairment, for the year ended December 31, 2016, increased by $0.2 million from 2015, primarily due to
reductions in revenue and pricing pressure that resulted in client
price concessions.
Production Technologies revenue of $8.3
million for the year ended December
31, 2016, a decrease of $4.0
million or 32.5%, compared to 2015 levels, primarily due to
decreased sales of rod pump equipment and older technology ESP
equipment. Segment gross margin decreased to 5.0% for the year
ended December 31, 2016, compared to
17.1% in 2015. Loss from Operations for the year-ended December 31, 2016 increased by $4.7 million versus the year-ended 2015. Loss
from Operations, excluding the impairment, for the year ended
December 31, 2016, increased by
$1.6 million from 2015. These losses
are primarily due to lower revenue volume and lower margins due to
pricing pressure.
Full Year 2016 - Financial Metrics
Accounts receivable, net of the allowance for doubtful accounts,
at December 31, 2016, $47.2 million, compared to $35.5 million December 31,
2015. The Company's allowance for doubtful accounts was 1.4%
of accounts receivable at December 31,
2016.
Depreciation and amortization expense not included in gross
margin, for the year ended December 31,
2016 increased by $1.4
million, or 20.0% from 2015. This increase was
primarily attributable to the completion and equipping of the
Global Research & Innovation Center in August 2016, along with other improvements to
manufacturing facilities.
Interest and other expense increased $0.6
million for the year ended December
31, 2016, compared to 2015.
Fourth Quarter 2016 – Segment Results
|
4Q
2016
|
3Q
2016
|
%
Change
|
4Q
2015
|
%
Change
|
|
Energy Chemistry
Technology
|
|
Revenue
|
$55.1
million
|
$45.0
million
|
22.4%
|
$50.3
million
|
9.5%
|
|
Gross
Margin
|
36.2%
|
40.4%
|
|
42.1%
|
|
|
Income from
Operations
|
$7.2
million
|
$6.2
million
|
16.1%
|
$10.9
million
|
(33.9%)
|
|
Consumer and
Industrial Chemical Technologies ("CICT")
|
|
Revenue
|
$15.5
million
|
$19.3
million
|
(19.7%)
|
$13.6
million
|
14.0%
|
|
Gross
Margin
|
18.3%
|
21.6%
|
|
25.5%
|
|
|
Income from
Operations
|
$1.2
million
|
$2.4
million
|
(50.0%)
|
$1.9
million
|
(36.8%)
|
Flotek Outlook
In commenting about Flotek's outlook, Mr. Chisholm added, "For
the first quarter 2017, we are anticipating continued improvement
in completion activity. In addition, we are experiencing continued
strong demand in Energy Chemistry and are focused on delivering
improved margins through strategic pricing increases and process
efficiency. In Consumer and Industrial Chemistry, we continue to
expect yearly growth in our net revenue and gross margins, and
expect to make substantial progress on the divestment of Drilling
Technologies and Production Technologies segments this quarter. As
always, we are focused on maintaining strong liquidity to fund our
business."
Conference Call Details
Flotek will host a conference call on Thursday, February 9, 2016, at 7:30 AM CDT (8:30 AM
EDT) to discuss its operating results for the three- and
twelve-months ended December 31,
2016. To participate in the call, participants should dial
800-698-6149 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 developer and distributor of prescriptive
chemistry-based technology, including specialty chemicals, to
clients in the energy, consumer industrials and food & beverage
industries. Flotek's inspired chemists draw from the power of
solvents and oils of oranges to deliver solutions that enhance
energy production, cleaning products, foods & beverages and
fragrances. In the oil and gas sector, Flotek serves large and
independent energy producers and oilfield service companies, both
domestic and international. 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
|
|
|
|
|
|
12/31/2016
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2015
|
|
|
|
|
|
(in thousands,
except per share data)
|
|
GAAP Net Income
and Reconciliation to EBITDA (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income (GAAP)
|
|
|
$
3,917
|
|
$
1,315
|
|
$
1,907
|
|
$
7,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
443
|
|
397
|
|
1,979
|
|
1,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax Expense
|
|
2,586
|
|
170
|
|
1,237
|
|
3,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
3,048
|
|
2,232
|
|
10,429
|
|
8,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
|
|
$
9,994
|
|
$
4,114
|
|
$
15,552
|
|
$
20,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Non-Cash
Items Impacting Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense
|
|
|
$
3,433
|
|
$
3,680
|
|
$
11,906
|
|
$
12,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less income tax
effect at 35%
|
|
(1,201)
|
|
(1,288)
|
|
(4,167)
|
|
(4,524)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense, net of tax
|
$
2,232
|
|
$
2,392
|
|
$
7,739
|
|
$
8,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding (Fully Diluted)
|
58,138
|
|
54,897
|
|
56,350
|
|
54,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense Per Share (Fully Diluted)
|
$
0.04
|
|
$
0.04
|
|
$
0.14
|
|
$
0.15
|
|
Flotek Industries,
Inc.
|
|
Unaudited
Consolidated Balance Sheets
|
|
|
|
|
|
December
31,
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
4,823
|
|
$
2,208
|
|
Accounts receivable,
net of allowance for doubtful accounts of $664 and
$709 at December 31, 2016 and 2015,
respectively
|
47,152
|
|
35,511
|
|
Inventories
|
58,283
|
|
50,870
|
|
Deferred tax assets,
net
|
52
|
|
2,649
|
|
Income taxes
receivable
|
12,752
|
|
4,700
|
|
Assets held for
sale
|
43,900
|
|
48,855
|
|
Other current
assets
|
21,708
|
|
6,949
|
|
Total current
assets
|
188,670
|
|
151,742
|
|
Property and
equipment, net
|
74,691
|
|
60,006
|
|
Goodwill
|
56,660
|
|
55,798
|
|
Deferred tax assets,
net
|
16,215
|
|
17,229
|
|
Other intangible
assets, net
|
50,352
|
|
51,198
|
|
Assets held for
sale
|
—
|
|
67,117
|
|
TOTAL
ASSETS
|
$
386,588
|
|
$403,090
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
29,960
|
|
$
17,221
|
|
Accrued
liabilities
|
12,170
|
|
10,480
|
|
Income taxes
payable
|
—
|
|
2,263
|
|
Interest
payable
|
24
|
|
111
|
|
Liabilities held for
sale
|
4,961
|
|
4,637
|
|
Current portion of
long-term debt
|
40,566
|
|
32,291
|
|
Deferred tax
liabilities, net
|
3,373
|
|
—
|
|
Total current
liabilities
|
91,054
|
|
67,003
|
|
Long-term debt, less
current portion
|
7,833
|
|
18,255
|
|
Deferred tax
liabilities, net
|
—
|
|
23,823
|
|
Total
liabilities
|
98,887
|
|
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; 59,684,669
shares issued and 56,972,580 shares
outstanding at December 31, 2016; 56,220,214 shares issued and 53,536,101 shares
outstanding at December 31,
2015
|
6
|
|
6
|
|
Additional paid-in
capital
|
318,392
|
|
273,451
|
|
Accumulated other
comprehensive income (loss)
|
(956)
|
|
(1,237)
|
|
Retained earnings
(accumulated deficit)
|
(9,830)
|
|
39,300
|
|
Treasury stock, at
cost; 2,028,847 and 1,784,897 shares at December 31, 2016
and 2015, respectively
|
(20,269)
|
|
(17,869)
|
|
Flotek Industries,
Inc. stockholders' equity
|
287,343
|
|
293,651
|
|
Noncontrolling
interests
|
358
|
|
358
|
|
Total
equity
|
287,701
|
|
294,009
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
386,588
|
|
$403,090
|
|
Flotek Industries,
Inc.
|
|
Unaudited
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
12/31/2016
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2015
|
|
(in thousands,
except per share data)
|
|
(in thousands,
except per share data)
|
|
Revenue
|
$
70,604
|
|
$
63,863
|
|
$
262,832
|
|
$
269,966
|
|
Cost of
revenue
|
47,792
|
|
39,254
|
|
172,154
|
|
173,660
|
|
Gross
profit
|
22,812
|
|
24,609
|
|
90,678
|
|
96,306
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
22,873
|
|
19,011
|
|
80,150
|
|
70,276
|
|
Depreciation and
amortization
|
2,506
|
|
1,827
|
|
8,530
|
|
7,108
|
|
Research and
development
|
2,998
|
|
1,884
|
|
9,320
|
|
6,657
|
|
Gain on disposal of
long-lived assets
|
10
|
|
-
|
|
(18)
|
|
(13)
|
|
Total
expenses
|
28,387
|
|
22,722
|
|
97,982
|
|
84,028
|
|
(Loss) income from
operations
|
5,575
|
|
1,887
|
|
(7,304)
|
|
12,278
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
(443)
|
|
(398)
|
|
(1,979)
|
|
(1,521)
|
|
Gain on legal
settlement
|
12,730
|
|
-
|
|
12,730
|
|
-
|
|
Other (expense)
income, net
|
(209)
|
|
(5)
|
|
(303)
|
|
(123)
|
|
Total other income
(expense)
|
12,078
|
|
(403)
|
|
10,448
|
|
(1,644)
|
|
Income before
income taxes
|
6,503
|
|
1,484
|
|
3,144
|
|
10,634
|
|
Income tax
expense
|
(2,586)
|
|
(170)
|
|
(1,237)
|
|
(3,476)
|
|
Income from
continuing operations
|
3,917
|
|
1,314
|
|
1,907
|
|
7,158
|
|
(Loss) income from
discontinued operations, net of tax
|
(17,836)
|
|
(2,689)
|
|
1,907
|
|
(20,620)
|
|
Net (loss)
income
|
$
(13,919)
|
|
$
(1,375)
|
|
$
1,907
|
|
$
(13,462)
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.07
|
|
$
0.02
|
|
$
0.03
|
|
$
0.13
|
|
Discontinued
operations, net of tax
|
(0.31)
|
|
(0.05)
|
|
(0.91)
|
|
(0.38)
|
|
Basic earnings (loss)
per common share
|
$
(0.24)
|
|
$
(0.03)
|
|
$
(0.88)
|
|
$
(0.25)
|
|
Diluted earnings
(loss) per common share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.07
|
|
$
0.02
|
|
$
0.03
|
|
$
0.13
|
|
Discontinued
operations, net of tax
|
(0.31)
|
|
(0.05)
|
|
(0.91)
|
|
(0.37)
|
|
Diluted earnings
(loss) per common share
|
$
(0.24)
|
|
$
(0.03)
|
|
$
(0.88)
|
|
$
(0.24)
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in computing basic earnings (loss) per common
share
|
57,768
|
|
54,544
|
|
56,087
|
|
54,459
|
|
Weighted average
common shares used in computing diluted earnings (loss) per common
share
|
58,138
|
|
54,897
|
|
56,350
|
|
54,992
|
|
Flotek Industries,
Inc.
|
|
Unaudited
Consolidated Statements of Cash Flows
|
|
|
|
|
|
Twelve Months
Ended
|
|
12/31/2016
|
|
12/31/2015
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net (loss)
income
|
$
(49,130)
|
|
$
(13,462)
|
|
(Loss) income from
discontinued operations, net of tax
|
(51,037)
|
|
(20,620)
|
|
Income from
continuing operations
|
1,907
|
|
7,158
|
|
Adjustments to
reconcile income from continuing operations to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
10,429
|
|
8,735
|
|
Amortization of
deferred financing costs
|
424
|
|
346
|
|
Provision for
doubtful accounts
|
558
|
|
367
|
|
Provision for
inventory reserves and market adjustments
|
0
|
|
0
|
|
Gain on sale of
assets
|
(18)
|
|
(12)
|
|
Stock compensation
expense
|
12053
|
|
13083
|
|
Deferred income tax
(benefit) provision
|
(19,681)
|
|
(7,929)
|
|
Reduction in (excess)
tax benefit related to share-based awards
|
2,510
|
|
(1,273)
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(11,544)
|
|
13,676
|
|
Inventories
|
(6,528)
|
|
(9,905)
|
|
Income taxes
receivable
|
(8,189)
|
|
(4,700)
|
|
Other current
assets
|
(14,489)
|
|
167
|
|
Accounts
payable
|
12,653
|
|
(7,653)
|
|
Accrued
liabilities
|
23,946
|
|
9,552
|
|
Income taxes
payable
|
(1,890)
|
|
3,842
|
|
Interest
payable
|
(87)
|
|
18
|
|
Net cash provided by
operating activities
|
2,054
|
|
25,472
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(13,960)
|
|
(16,391)
|
|
Proceeds from sale of
assets
|
115
|
|
13
|
|
Payments for
acquisitions, net of cash acquired
|
(7,863)
|
|
0
|
|
Purchase of patents
and other intangible assets
|
(573)
|
|
(627)
|
|
Net cash used in
investing activities
|
(22,281)
|
|
(17,005)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Repayments of
indebtedness
|
(15,564)
|
|
(10,143)
|
|
Borrowings on
revolving credit facility
|
338,460
|
|
382,666
|
|
Repayments on
revolving credit facility
|
(325,043)
|
|
(366,018)
|
|
Debt issuance
costs
|
(1,199)
|
|
(10)
|
|
(Reduction in) excess
tax benefit related to share-based awards
|
(2,510)
|
|
1,273
|
|
Purchase of treasury
stock
|
(2,350)
|
|
(6,345)
|
|
Proceeds from sale of
common stock
|
30,923
|
|
879
|
|
Repurchase of common
stock
|
0
|
|
(9,697)
|
|
Proceeds from
exercise of stock options
|
134
|
|
39
|
|
Proceeds from
exercise of warrants
|
0
|
|
0
|
|
Proceeds from
noncontrolling interest
|
0
|
|
7
|
|
Net cash provided by
(used in) financing activities
|
22,851
|
|
(7,349)
|
|
Discontinued
operations:
|
|
|
|
|
Net cash provided by
operating activities
|
12
|
|
1,199
|
|
Net cash used in
investing activities
|
(18)
|
|
(1,199)
|
|
Net cash flows used
in discontinued operations
|
(6)
|
|
0
|
|
Effect of changes in
exchange rates on cash and cash equivalents
|
(3)
|
|
(176)
|
|
Net increase
(decrease) in cash and cash equivalents
|
2,615
|
|
942
|
|
Cash and cash
equivalents at beginning of year
|
2,208
|
|
1,266
|
|
Cash and cash
equivalents at end of year
|
$
4,823
|
|
$
2,208
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/flotek-industries-inc-announces-2016-financial-and-operating-results-and-conference-call-information-300404588.html
SOURCE Flotek Industries, Inc.