HOUSTON, Jan. 16, 2018 /PRNewswire/ -- Flotek Industries,
Inc. (NYSE: FTK) provided an update on the Company's cost reduction
program and guidance of profitability regarding its results for the
three months-ended December 31, 2017.
Selling, General and Administrative ("G&A") costs, excluding
non-cash compensation expenses, are expected to be near the low end
of the $15 million - $16 million guidance range provided on last
quarter's conference call. Flotek expects its revenues in its
Energy Chemistry Technologies segment to be in the $54 million - $56
million range and in its Consumer and Industrial Chemistry
Technologies segment to be in the $17
million - $18 million
range.
John Chisholm, Flotek's Chairman,
President and Chief Executive Officer commented, "I am
pleased with the progress Flotek has made, and continues to
make, towards reducing our cost structure. This initiative has
resulted in decreased contract labor expenses, salary and benefits
expenses and discretionary expenses-per-employee. While our
progress is measurable, we will continue to identify further areas
of cost controls in the coming months and maximize the efficiency
and fixed cost-leverage of our organization. We believe our
strategic initiatives will improve our profitable growth for our
shareholders as we enter 2018."
"While we are still in the process of finalizing and reviewing
our fourth quarter financials, we expect to generate positive
operating income, excluding any potential one-time charges, in the
quarter. Additionally, we do anticipate a tax consequence in
our deferred tax asset as a result of the recent changes to the
U.S. corporate tax rate to 21 percent. We would like to thank
our shareholders for remaining patient during the Company's
re-organization which occurred during 2017 with the divestitures of
our Drilling and Production Technology segments, as well as thank
our employees for their efforts which will continue into 2018.
We look forward to providing our shareholders with an update on our
initiatives and new product introductions for 2018 on our upcoming
earnings release and conference call."
About Flotek Industries, Inc.
Flotek develops and delivers 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 bio-derived
solvents to deliver solutions that enhance energy production,
cleaning products, foods & beverages and fragrances. In the oil
and gas sector, Flotek serves major 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.
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SOURCE Flotek Industries, Inc.