HOUSTON, Sept. 14,
2023 /PRNewswire/ -- Flotek Industries, Inc.
("Flotek" or the "Company") (NYSE: FTK) today announced it expects
to report positive adjusted EBITDA(1) for the quarter
ending September 30, 2023,
accelerating its previous estimate of achieving this financial
metric before year-end. Reaching positive adjusted
EBITDA(1) builds upon the Company's improvement in its
financial results over the last several quarters, highlighted by
revenues and gross profit during the first half of 2023 increasing
by approximately $56 million and
$9 million, respectively, as compared
to the first half of 2022. The Company expects that its third
quarter 2023 adjusted EBITDA(1) will reflect the ninth
consecutive quarter of improvement.
The Company also announced that its Board of Directors has
approved a 1-for-6 reverse split of Flotek's common stock, par
value $0.0001 per share (the "Reverse
Stock Split"). The Reverse Stock Split will become effective after
market close on September 25, 2023
(the "Effective Date"), and the shares of common stock are expected
to begin trading on the split-adjusted basis under the Company's
existing trading symbol, "FTK," when the market opens
on September 26, 2023. The new CUSIP number following the
Reverse Stock Split will be 343389409.
Ryan Ezell, Chief Executive
Officer, stated, "Our results through the first half of 2023,
combined with our confidence in reaching positive adjusted
EBITDA(1) for the third quarter, clearly indicate
continued improvement in all aspects of our business. Revenues,
gross profit and adjusted EBITDA(1) during the first
half of 2023 have increased significantly as compared to the first
half of last year, while our balance sheet has improved through the
conversion of debt to equity as well as the entry into an Asset
Based Loan to enhance liquidity. We expect this strong financial
momentum to continue into 2024."
On the Effective Date, the total number of shares of common
stock held by each stockholder of the Company will be converted
automatically into the number of shares of common stock equal to
(i) the number of issued and outstanding shares of common stock
held by each such stockholder immediately prior to the Reverse
Stock Split, divided by (ii) 6, with such resulting number of
shares rounded up to the nearest whole share. The Company will
issue one whole share of the post-Reverse Stock Split common stock
to any stockholder who otherwise would have received a fractional
share as a result of the Reverse Stock Split. As a result, no
fractional shares will be issued in connection with the
Reverse Stock Split and no cash or other consideration will be paid
in connection with any fractional shares that would otherwise have
resulted from the Reverse Stock Split.
The Reverse Stock Split has no effect on the par value or on the
number of authorized shares of common stock or preferred stock.
Immediately after the Reverse Stock Split, each stockholder's
percentage ownership interest in the Company and proportional
voting power will remain unchanged, except for minor changes and
adjustments that will result from the treatment of fractional
shares. The rights and privileges of the holders of shares of
common stock will be substantially unaffected by the Reverse Stock
Split. The Company anticipates that the effect of the Reverse Stock
Split will be sufficient to regain compliance with the New York
Stock Exchange's continued listing standards, however, there can be
no assurance that the Reverse Stock Split will have that effect,
initially or in the future, or that it will enable the Company to
maintain the listing of its common stock on the New York Stock
Exchange.
Stockholders who are holding their shares in electronic form at
brokerage firms do not need to take any action, as the effect of
the Reverse Stock Split will automatically be reflected in their
brokerage accounts. Stockholders holding paper certificates may
(but are not required to) send the certificates to the Company's
transfer agent and registrar, Equiniti. Equiniti will issue a new
stock certificate reflecting the Reverse Stock Split to each
requesting stockholder.
About Flotek Industries, Inc.
Flotek Industries, Inc. is an advanced technology-driven, green
chemical and data analytics company providing unique and innovative
completion solutions that have a proven, positive impact on
sustainability and reducing the overall environmental impact of
energy on air, land, water and people. Flotek has an intellectual
property portfolio of over 170 patents and a global presence in
more than 15 countries throughout North
America, Latin America, the
Middle East and North Africa. Flotek has established
collaborative partnerships focused on sustainable and optimized
chemistry and data solutions which improve well performance and
allow its customers to generate higher returns on invested
capital.
Flotek is based 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 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 will, continue, expects, anticipates, projects, 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.
(1) A non-GAAP financial measure.
See our previously issued reconciliation of Non-GAAP items to the
most comparable GAAP measures in connection with our second quarter
2023 earnings release. We are unable to reconcile this
forward-looking non-GAAP financial measure to the most directly
comparable GAAP financial measure without unreasonable efforts, as
we are unable to predict with a reasonable degree of certainty the
impact of certain items that would be expected to impact the GAAP
financial measure, including, among other items, the future
amortization of our contract assets, certain stock-based
compensation costs and the impact of the revaluation of certain
liabilities, which is based upon our future stock price. These
items do not impact the non-GAAP financial measure.
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SOURCE Flotek Industries, Inc.