HOUSTON, May 8, 2019 /PRNewswire/ -- Flotek Industries,
Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced
results for the three months ended March 31,
2019. As the results of the Company's Consumer and
Industrial Chemistry Technologies ("CICT") segment are presented as
discontinued operations for all periods, the financial discussion
and comparisons substantially relate to Flotek's continuing
operations.
First Quarter Highlights
- Announced on January 11, 2019, a
$175 million all-cash transaction
(the "Transaction") for the sale of Florida Chemical Company, LLC
("FCC") to Archer-Daniels-Midland Company ("ADM").
- Closed the Transaction effective February 28, 2019, with Flotek receiving net
proceeds of approximately $111
million, after related transaction fees, a working capital
adjustment, and repayment of the remaining $54 million balance of the Company's credit
facility. Net proceeds are subject to customary post-closing
working capital and other adjustments.
- Formed the Strategic Capital Committee, co-chaired by
independent director, David
Nierenberg, and Flotek's Chief Financial Officer,
Elizabeth Wilkinson, which will
provide recommendations to Flotek's Board of Directors as to the
best use of remaining net proceeds from the Transaction.
- Leveraged the Company's full-service wellsite delivery offering
in major domestic basins to drive increased customer adoption of
Flotek's Prescriptive Chemistry Management®
("PCM®") platform.
- Continued to execute on the Company's previously announced
strategic initiatives to further optimize the cost structure across
the business and drive greater profitability through manufacturing
and logistics efficiencies.
Financial Summary
- Significantly improved its financial position during the first
quarter of 2019. As of March 31,
2019, the Company had cash and equivalents of $96.8 million, plus $17.5
million in temporarily escrowed funds related to the
Transaction and no outstanding debt. This is compared to cash and
equivalents of $3.0 million and debt
of $49.7 million as of December 31, 2018.
- Generated revenue of $43.3
million, as compared to $43.4
million for the fourth quarter of 2018 and $41.1 million for the first quarter of 2018.
- Reported a loss from continuing operations of $15.4 million, or $0.26 loss per diluted share, versus income of
$9.9 million, or $0.17 per diluted share, for the fourth quarter
of 2018 and a loss of $9.5 million,
or $0.17 loss per diluted share, for
the first quarter of 2018.
- Reported an adjusted loss from continuing operations of
$11.6 million, or $0.20 loss per diluted share, as compared to an
adjusted loss of $6.5 million, or
$0.11 loss per diluted share, for the
fourth quarter of 2018 and an adjusted loss of $8.6 million, or $0.15 loss per diluted share, for the first
quarter of 2018.
- Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA"), was a loss of $8.3 million, versus a loss of $5.9 million for the fourth quarter of 2018 and a
loss of $4.1 million for the first
quarter of 2018.
Adjusted EBITDA and Adjusted Income from Continuing
Operations are Non-GAAP financial measures and are described and
reconciled to the closest GAAP measure in the attached tables at
the end of this release.
John Chisholm, Flotek's Chairman,
President and Chief Executive Officer, commented, "The
macro-environment for U.S. onshore drilling and completions
activity during the first quarter continued to be volatile, and a
similar backdrop is expected for the second quarter. Given this
environment, we were pleased our top-line results for the first
quarter held steady with the fourth quarter of 2018. Contributing
to our results was continued traction in the market for our
full-service PCM® wellsite delivery offering with the
majority of our sales now marketed directly to the
operator.
"The most significant highlight of the first quarter was our
sale of Florida Chemical to ADM, and we look forward to working
closely with ADM as we jointly explore and develop next generation
technologies for the oil and gas and agricultural industries. As
important, the sale of Florida Chemical provides Flotek with
substantial financial flexibility as we focus on prudently growing
our position as a pure-play provider of customized,
performance-enhancing chemistry solutions to the upstream oil and
gas industry."
First Quarter 2019 Financial Results
For the three months ended March 31,
2019, Flotek reported revenue of $43.3 million, an increase of $2.2 million, or 5.3%, from the same period in
2018. First quarter 2019 revenue was relatively flat with revenue
of $43.4 million for the fourth
quarter of 2018.
Flotek reported a loss from continuing operations for the three
months ended March 31, 2019 of
$15.4 million, or $0.26 loss per diluted share, as compared to a
loss of $9.5 million, or $0.17 loss per diluted share, in the same
period of 2018 and income from continuing operations of
$9.9 million, or $0.17 per diluted share, for the fourth quarter
of 2018. The fourth quarter included a $22.7
million tax benefit primarily associated with the reversal
of a valuation allowance against Flotek's deferred tax assets due
to the anticipated sale of FCC.
Adjusted earnings from continuing operations was a loss of
$11.6 million, or $0.20 loss per diluted share, for the three
months ended March 31, 2019, as
compared to a loss of $8.6 million,
or $0.15 loss per diluted share, in
the same period of 2018 and a loss of $6.5
million, or $0.11 loss per
diluted share, for the fourth quarter of 2018. (See the
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings at the conclusion of this release.)
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA") for the three months ended March
31, 2019, was a loss of $12.1
million, as compared to loss of $7.2
million for the same period in 2018 and a loss of
$9.6 million for the fourth quarter
of 2018. (See the Reconciliation of Non-GAAP Items and Non-Cash
Items Impacting Earnings at the conclusion of this release.)
Adjusted EBITDA for the three months ended March 31, 2019 was a loss of $8.3 million, as compared to a loss of
$4.1 million for the same period in
2018 and a loss of $5.9 million for
the fourth quarter of 2018.
- The increased year-over-year loss was primarily due to higher
logistics expenses, tighter product margins and the write-down of
certain customer receivables in the first quarter 2019, partially
offset by lower corporate general and administrative and research
and development expenses.
- Contributing to the higher loss from the fourth quarter of 2018
were tighter product margins and a bonus accrual reversal taken in
the fourth quarter, as well as the write-off of a software license
no longer required and a net increase in the write-down of certain
customer receivables in the first quarter 2019. Partially
offsetting the increased loss were lower logistics expenses in the
first quarter 2019.
Management believes that adjusted EBITDA provides useful
information to investors to better assess and understand operating
performance and cash flows. (See the Reconciliation of Non-GAAP
Items and Non-Cash Items Impacting Earnings at the conclusion of
this release.)
Balance Sheet and Liquidity
As of March 31, 2019, the Company
had cash and equivalents of $96.8
million, plus $17.5 million in
escrowed funds related to the sale of FCC and no debt outstanding.
Net debt at December 31, 2018, was
$46.7 million, including $3.0 million in cash and $49.7 million of borrowings on the Company's
credit facility.
In conjunction with closing the Transaction effective
February 28, 2019, the Company paid
down the entirety of its credit facility borrowings, which totaled
$53.8 million and is expected to save
nearly $3 million in annual interest
expense from year-end 2018 levels.
Outlook
Mr. Chisholm concluded, "We remain laser-focused on managing our
business to sustained long-term profitability in a $50 to $60 per
barrel WTI price environment. In the course of transitioning Flotek
from a business with four segments down to one, significant cost
optimization efforts have continued into 2019 and we look forward
to seeing the benefits of these top-to-bottom initiatives in the
second half of the year. These efforts include an ongoing push to
drive increased operational efficiencies and overall margin
improvement, which will be more fully reflected in our results as
we further grow market share due to our best-in-class suite of
custom chemistry solutions optimized for the reservoir. I am also
pleased by the important progress made to date by our Strategic
Capital Committee. We view the effective deployment of the
substantial net proceeds from the sale of FCC as extremely critical
to the Company's long-term success, and believe the Committee's
thoughtful, methodical and detailed process will result in a
strategy that drives the most value for our shareholders.
"Oil and gas operators continue to seek opportunities to
structurally improve costs by de-coupling the supply chain, and we
expect this trend to accelerate moving forward as it relates to
chemicals. While this has created a period of turbulence in
the near term, we believe the end result will be increased
operational predictability. We believe we are well positioned for
long-term success given our industry-leading focus on
reservoir-centric fluid systems that enhance and improve
performance, which provides oil and gas operators greater
transparency, control and efficacy in their fluid systems. Our
differentiated PCM® platform and broad portfolio of
value-added chemistries is becoming even more recognized by clients
as truly innovative and effective solutions for markedly increasing
the amount of hydrocarbons recovered from the reservoir, which
lowers their cost per BOE and improves their return on capital. We
will continue to closely partner with our clients to ensure they
clearly understand the long-term value proposition of our unique
product offerings."
Conference Call Details
Flotek will host a conference call on Thursday, May 9, at 9:00
AM CT (10:00 AM ET) to discuss
its operating results for the three months ended March 31, 2019. To participate in the call,
participants should dial 844-835-9986 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 develops and delivers prescriptive, reservoir-centric
chemistry technologies to oil and gas clients designed to address
every challenge in the lifecycle of the reservoir and maximize
recovery in both new and mature fields. Flotek's inspired chemists
draw from the power of bio-derived solvents to deliver solutions
that enhance energy production. 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.
Flotek Industries,
Inc.
|
Unaudited
Condensed Consolidated Balance Sheets
|
(in thousands,
except share data)
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
96,753
|
|
$
3,044
|
Restricted
cash
|
660
|
|
-
|
Accounts receivable,
net of allowance for doubtful accounts of $1,465 and $1,190 at
March 31, 2019 and December 31, 2018, respectively
|
37,178
|
|
37,047
|
Inventories,
net
|
34,358
|
|
27,289
|
Income taxes
receivable
|
3,351
|
|
3,161
|
Assets held for
sale
|
-
|
|
118,470
|
Other current
assets
|
20,373
|
|
5,771
|
Total current
assets
|
192,673
|
|
194,782
|
Property and
equipment, net
|
42,989
|
|
45,485
|
Operating lease
right-of-use assets
|
18,202
|
|
-
|
Deferred tax assets,
net
|
599
|
|
18,663
|
Other intangible
assets, net
|
24,978
|
|
26,827
|
Other long-term
assets
|
3,351
|
|
126
|
TOTAL
ASSETS
|
$
282,792
|
|
$
285,883
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
13,798
|
|
$
15,011
|
Accrued
liabilities
|
12,518
|
|
10,335
|
Income taxes
payable
|
2,054
|
|
-
|
Interest
payable
|
-
|
|
8
|
Liabilities held for
sale
|
-
|
|
9,174
|
Current portion of
lease liabilities
|
713
|
|
-
|
Long-term debt,
classified as current
|
-
|
|
49,731
|
Total current
liabilities
|
29,083
|
|
84,259
|
Operating lease
liabilities
|
18,416
|
|
-
|
Finance lease
liabilities
|
130
|
|
-
|
Deferred tax
liabilities, net
|
116
|
|
-
|
Total
liabilities
|
47,745
|
|
84,259
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
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; 62,198,912 shares issued
and 57,462,355 shares outstanding at March 31, 2019; 62,162,875
shares issued and 57,342,279 shares outstanding at
December 31, 2018
|
6
|
|
6
|
Additional paid-in
capital
|
344,004
|
|
343,536
|
Accumulated other
comprehensive income (loss)
|
(1,022)
|
|
(1,116)
|
Retained earnings
(accumulated deficit)
|
(74,573)
|
|
(107,565)
|
Treasury stock, at
cost; 3,845,173 and 3,770,224 shares at March 31, 2019 and
December 31, 2018, respectively
|
(33,368)
|
|
(33,237)
|
Total stockholders'
equity
|
235,047
|
|
201,624
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
282,792
|
|
$
285,883
|
Flotek Industries,
Inc.
|
Unaudited
Condensed Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
3/31/2019
|
|
3/31/2018
|
|
12/31/2018
|
|
|
|
|
|
|
Revenue
|
$
43,256
|
|
$
41,069
|
|
$
43,449
|
Costs and
expenses:
|
|
|
|
|
|
Cost of revenue
(excluding depreciation and amortization)
|
44,599
|
|
36,655
|
|
41,963
|
Corporate general and
administrative
|
7,281
|
|
8,493
|
|
6,833
|
Depreciation and
amortization
|
2,260
|
|
2,333
|
|
2,282
|
Research and
development
|
2,285
|
|
2,754
|
|
2,302
|
Loss (gain) on
disposal of long-lived assets
|
1,097
|
|
57
|
|
(563)
|
Total costs and
expenses
|
57,522
|
|
50,292
|
|
52,817
|
Loss from
operations
|
(14,266)
|
|
(9,223)
|
|
(9,368)
|
Other (expense)
income:
|
|
|
|
|
|
Interest
expense
|
(1,998)
|
|
(516)
|
|
(964)
|
Other income
(expense), net
|
110
|
|
(111)
|
|
(2,441)
|
Total other
expense
|
(1,888)
|
|
(627)
|
|
(3,405)
|
Loss before income
taxes
|
(16,154)
|
|
(9,850)
|
|
(12,773)
|
Income tax
benefit
|
774
|
|
322
|
|
22,716
|
(Loss) income from
continuing operations
|
(15,380)
|
|
(9,528)
|
|
9,943
|
Income (loss) from
discontinued operations, net of tax
|
48,372
|
|
9,595
|
|
(1,385)
|
Net
income
|
32,992
|
|
67
|
|
8,558
|
Net loss
attributable to noncontrolling interests
|
-
|
|
-
|
|
1
|
Net income
attributable to Flotek Industries, Inc. (Flotek)
|
$
32,992
|
|
$
67
|
|
$
8,559
|
|
|
|
|
|
|
Amounts
attributable to Flotek shareholders:
|
|
|
|
|
|
Loss from continuing
operations
|
$
(15,380)
|
|
$
(9,528)
|
|
$
9,944
|
Income (loss) from
discontinued operations, net of tax
|
48,372
|
|
9,595
|
|
(1,385)
|
Net income
attributable to Flotek
|
$
32,992
|
|
$
67
|
|
$
8,559
|
Basic earnings
(loss) per common share:
|
|
|
|
|
|
Continuing
operations
|
$
(0.26)
|
|
$
(0.17)
|
|
$
0.17
|
Discontinued
operations, net of tax
|
0.83
|
|
0.17
|
|
(0.02)
|
Basic earnings (loss)
per common share
|
$
0.57
|
|
$
-
|
|
$
0.15
|
Diluted earnings
(loss) per common share:
|
|
|
|
|
|
Continuing
operations
|
$
(0.26)
|
|
$
(0.17)
|
|
$
0.17
|
Discontinued
operations, net of tax
|
0.83
|
|
0.17
|
|
(0.02)
|
Diluted earnings
(loss) per common share
|
$
0.57
|
|
$
-
|
|
$
0.15
|
Weighted average
common shares:
|
|
|
|
|
|
Weighted average
common shares used in computing basic earnings (loss) per common
share
|
58,373
|
|
57,259
|
|
58,517
|
Weighted average
common shares used in computing diluted earnings (loss) per common
share
|
58,373
|
|
57,259
|
|
58,517
|
Flotek Industries,
Inc.
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
Twelve Months
Ended
|
|
3/31/2019
|
|
3/31/2018
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
32,992
|
|
$
67
|
Income from
discontinued operations, net of tax
|
48,372
|
|
9,595
|
Loss from continuing
operations
|
(15,380)
|
|
(9,528)
|
Adjustments to
reconcile loss from continuing operations to net cash used in
operating activities:
|
|
|
|
Depreciation and
amortization
|
2,260
|
|
2,333
|
Amortization of
deferred financing costs
|
1,428
|
|
96
|
Provision for
doubtful accounts
|
366
|
|
(43)
|
Provision for excess
and obsolete inventory
|
-
|
|
1,305
|
Loss on sale of
assets
|
1,097
|
|
57
|
Non-cash lease
expense
|
230
|
|
-
|
Stock compensation
expense
|
456
|
|
1,899
|
Deferred income tax
provision (benefit)
|
17,860
|
|
(7,662)
|
Reduction in tax
benefit related to share-based awards
|
24
|
|
3
|
Changes in current
assets and liabilities:
|
|
|
|
Restricted
cash
|
(660)
|
|
-
|
Accounts receivable,
net
|
(474)
|
|
1,715
|
Inventories,
net
|
(7,031)
|
|
5,729
|
Income taxes
receivable
|
(247)
|
|
(1)
|
Other current
assets
|
(18,661)
|
|
331
|
Accounts
payable
|
(1,216)
|
|
(781)
|
Accrued
liabilities
|
(8,193)
|
|
(7,599)
|
Income taxes
payable
|
2,428
|
|
-
|
Interest
payable
|
(8)
|
|
(37)
|
Net cash used in
operating activities
|
(25,721)
|
|
(12,183)
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(461)
|
|
(1,377)
|
Proceeds from sales
of businesses
|
169,722
|
|
-
|
Proceeds from sale of
assets
|
132
|
|
80
|
Purchase of patents
and other intangible assets
|
(103)
|
|
(117)
|
Net cash provided by
(used in) investing activities
|
169,290
|
|
(1,414)
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
revolving credit facility
|
42,984
|
|
76,266
|
Repayments on
revolving credit facility
|
(92,715)
|
|
(64,475)
|
Debt issuance
costs
|
-
|
|
(8)
|
Purchase of treasury
stock related to share-based awards
|
(131)
|
|
(3)
|
Proceeds from sale of
common stock
|
-
|
|
146
|
Net cash (used in)
provided by financing activities
|
(49,862)
|
|
11,926
|
Discontinued
operations:
|
|
|
|
Net cash (used in)
provided by operating activities
|
(337)
|
|
430
|
Net cash provided by
(used in) investing activities
|
337
|
|
(430)
|
Net cash flows
provided by discontinued operations
|
-
|
|
-
|
Effect of changes in
exchange rates on cash and cash equivalents
|
2
|
|
(48)
|
Net increase
(decrease) in cash and cash equivalents
|
93,709
|
|
(1,719)
|
Cash and cash
equivalents at the beginning of period
|
3,044
|
|
4,584
|
Cash and cash
equivalents at the end of period
|
$
96,753
|
|
$
2,865
|
Flotek Industries,
Inc.
|
Unaudited
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
GAAP Income (Loss)
from Continuing Operations and Reconciliation to Adjusted Net
Income (Loss) (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
3/31/2019
|
|
3/31/2018
|
|
12/31/2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations (GAAP)
|
$
(15,380)
|
|
$
(9,528)
|
|
$
9,944
|
|
|
|
|
|
|
|
|
Deferred Tax Asset
Valuation Allowance
|
-
|
|
-
|
|
(18,924)
|
|
|
|
|
|
|
|
|
Select Items
Impacting Earnings, net of tax
|
3,760
|
|
909
|
|
2,522
|
|
|
|
|
|
|
|
Adjusted Net
Income (Loss) (Non-GAAP)
|
$
(11,620)
|
|
$
(8,619)
|
|
$
(6,458)
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding (Fully Diluted)
|
58,373
|
|
57,259
|
|
58,517
|
|
|
|
|
|
|
|
Adjusted Earnings
(Loss) Per Share (Fully Diluted)
|
$
(0.20)
|
|
$
(0.15)
|
|
$
(0.11)
|
|
|
|
|
|
|
|
Select Items
Impacting Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance and
Retirement
|
1,721
|
|
94
|
|
1,810
|
|
|
|
|
|
|
|
|
Shareholder-Related
Activities
|
581
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Inventory
Write-down
|
-
|
|
1,000
|
|
-
|
|
|
|
|
|
|
|
|
Deferred Financing
Costs
|
1,360
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Loss (Gain) on
Disposal of Assets
|
1,097
|
|
57
|
|
(563)
|
|
|
|
|
|
|
|
|
Discontinuation of
Corporate Projects
|
-
|
|
-
|
|
1,945
|
|
|
|
|
|
|
|
Total Select
Items
|
$
4,759
|
|
$
1,151
|
|
$
3,192
|
|
|
|
|
|
|
|
|
Less income tax
effect (21%)
|
(999)
|
|
(242)
|
|
(670)
|
|
|
|
|
|
|
|
|
Select Items
Impacting Earnings, net of tax
|
$
3,760
|
|
$
909
|
|
$
2,522
|
|
|
|
|
|
|
|
* Management believes
that adjusted Net Income for the three months ended March 31, 2019,
March 31, 2018, and December 31, 2018, is useful to investors to
assess and understand operating performance, especially when
comparing those results with previous and subsequent periods.
Management views the expenses noted above to be outside of the
Company's normal operating results. Management analyzes operating
results without the impact of the above items as an indicator of
performance, to identify underlying trends in the business and cash
flow from continuing operations, and to establish operational
goals.
|
Flotek Industries,
Inc.
|
Unaudited
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings
|
(in
thousands)
|
|
|
|
|
|
|
|
GAAP Income (Loss)
from Continuing Operations and Reconciliation to Adjusted EBITDA
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
3/31/2019
|
|
3/31/2018
|
|
12/31/2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations (GAAP)
|
$
(15,380)
|
|
$
(9,528)
|
|
$
9,944
|
|
|
|
|
|
|
|
|
Interest
Expense
|
1,998
|
|
516
|
|
964
|
|
|
|
|
|
|
|
|
Interest
Income
|
(226)
|
|
(183)
|
|
(45)
|
|
|
|
|
|
|
|
|
Income Tax
Benefit
|
(774)
|
|
(322)
|
|
(22,716)
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
2,260
|
|
2,333
|
|
2,282
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
$
(12,122)
|
|
$
(7,184)
|
|
$
(9,571)
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense
|
456
|
|
1,900
|
|
480
|
|
|
|
|
|
|
|
|
Severance and
Retirement
|
1,721
|
|
94
|
|
1,810
|
|
|
|
|
|
|
|
|
Shareholder-Related
Activities
|
581
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Inventory
Write-down
|
-
|
|
1,000
|
|
-
|
|
|
|
|
|
|
|
|
Loss (Gain) on
Disposal of Assets
|
1,097
|
|
57
|
|
(563)
|
|
|
|
|
|
|
|
|
Discontinuation of
Corporate Projects
|
-
|
|
-
|
|
1,945
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Non-GAAP)
|
$
(8,267)
|
|
$
(4,133)
|
|
$
(5,899)
|
|
* Management believes
that adjusted EBITDA for the three and twelve months ended March
31, 2019, March 31, 2018, and December 31, 2018, is useful to
investors to assess and understand operating performance,
especially when comparing those results with previous and
subsequent periods. Management views the expenses noted above to be
outside of the Company's normal operating results. Management
analyzes operating results without the impact of the above items as
an indicator of performance, to identify underlying trends in the
business and cash flow from continuing operations, and to establish
operational goals.
|
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SOURCE Flotek Industries, Inc.