HOUSTON, March 5, 2020 /PRNewswire/ -- Flotek
Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today
announced results for the three months and full year ended
December 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, or its Energy Chemistry
Technologies ("ECT") segment.
Fourth Quarter and Full-Year 2019 Highlights
- Generated fourth quarter 2019 revenue of $19.5 million, a loss from continuing operations
of $37.1 million and an adjusted
earnings before interest, taxes, depreciation and amortization
("adjusted EBITDA") loss of $8.9
million, compared to revenue of $21.9
million, a loss from continuing operations of $11.2 million and an adjusted EBITDA loss of
$8.1 million for the third quarter of
2019. In the fourth quarter, adjusted EBITDA was $0.8 million less than the third quarter
primarily due to lower revenue and a change in product mix.
- The $37.1 million loss for the
three months ended December 31, 2019
included a non-recurring $15.8
million loss on purchase commitments associated with the
Company's terpene supply agreement with Florida Chemical Company,
LLC ("FCC") entered into in February
2019, and the recording of an additional $4.4 million reserve related specifically to the
Company's terpene inventory balance as of December 31, 2019.
- Corporate general and administrative expense for the fourth
quarter of 2019 was $9.0 million
compared to $5.7 million for the
third quarter. Included in the fourth quarter was $3.7 million of severance.
- For the full-year 2019, Flotek generated revenue of
$119.4 million, a loss from
continuing operations of $76.7
million and an adjusted EBITDA loss of $34.8 million, compared to revenue of
$177.8 million, a loss from
continuing operations of $73.4
million and an adjusted EBITDA loss of $15.5 million for the full-year 2018.
- For the full-year 2019, the Company's cost-cutting and process
improvement initiatives reduced annualized expenses by
approximately $30 million across the
enterprise.
Adjusted EBITDA is a Non-GAAP financial measure and is
described and reconciled to the closest GAAP measure in the
attached tables at the end of this release.
First Quarter 2020 Highlights to Date
- Flotek remains solidly committed to securing additional
sustainable cost reductions. This includes negotiating an amendment
to Flotek's terpene supply agreement with FCC, which was ultimately
executed on February 26, 2020 and
includes the following key provisions:
-
- A reduction in the minimum quantity of terpene Flotek is
required to purchase from FCC by approximately 3/4ths in
2020 and by approximately half in each of 2021, 2022 and 2023;
- A fixed per pound price for terpene in 2020;
- A reduction in the maximum amount of terpene subject to the
supply agreement by approximately 1/3rd; and
- Change in payment terms to net 45 days.
To make the amended terms and
conditions effective, Flotek made a one-time payment of
$15.8 million to FCC. The
agreed price and volume reduction for the purchase of terpene in
the amended contract for 2020 alone should substantially offset the
one-time $15.8 million cash payment
made to FCC. In years 2021, 2022 and 2023, the negotiated
volume reduction of approximately 50% in each year is expected to
reduce the Company's cash commitments proportionately. The amended
agreement places Flotek in a more advantageous position to address
new markets and to improve margins on current product lines.
- Added John W. Gibson, Jr. as
Chairman, President and Chief Executive Officer. Mr. Gibson has
served in leadership roles in energy technology, upstream, oilfield
services and environmental services.
- Added Nick Bigney as Senior Vice
President, General Counsel and Corporate Secretary. Mr. Bigney is
responsible for leading Flotek's legal team to promote more
effective risk mitigation, as well as reduce legal costs.
- Promoted Ryan Ezell to Senior
Vice President, Operations. Prior to joining Flotek in August 2019, Mr. Ezell was a global leader for
more than 12 years at Halliburton Inc., where he served in
increasing roles of responsibility in the Drilling and Evaluation
Division.
- Instead of a formal Strategic Capital Committee, the Company
will continue to evaluate alternatives with the Board of Directors
for the optimal allocation of its cash balance.
Fourth Quarter 2019 Financial Results
For the three months ended December 31,
2019, Flotek reported revenue of $19.5 million versus $21.9
million for the third quarter and $43.4 million for the same period in 2018.
Flotek reported a loss from continuing operations for the three
months ended December 31, 2019 of
$37.1 million, or $0.64 loss per diluted share, compared to a loss
of $11.2 million, or $0.19 loss per diluted share, for the third
quarter. As previously discussed, the $37.1
million loss for the three months ended December 31, 2019 included a non-recurring
$15.8 million loss on purchase
commitments associated with the Company's terpene supply agreement
with FCC entered into in February
2019, and the recording of an additional $4.4 million reserve related specifically to the
Company's terpene inventory balance as of December 31, 2019. For the the three months ended
December 31, 2018, the Company
reported income from continuing operations of $9.9 million, or $0.17 per diluted share. Results for the
three months ended December 31, 2018,
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.
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA") for the three months ended December 31, 2019 was a loss of $34.6 million compared to a loss of $9.9 million for the third quarter, and a loss of
$9.6 million for the same period in
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 December 31, 2019 was a loss of $8.9 million versus a loss of $8.1 million for the third quarter and a loss of
$6.0 million for the same period in
2018. 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 December 31, 2019, the
Company had cash and equivalents of $100.6
million, no outstanding debt and $9.9
million in escrowed funds on the balance sheet, reflecting
Flotek's estimate of its claim to the remaining balance of the
indemnity escrow related to the sale of FCC to
Archer-Daniels-Midland ("ADM"). In February 2020, the Company paid $15.8 million to FCC in exchange for the amended
terpene supply agreement discussed above. Also in
February 2020, the third party
mutually engaged by ADM and Flotek to resolve their transaction
post-closing working capital dispute awarded the $4.1 million disputed amount in favor of ADM.
Outlook
Mr. Gibson commented, "During my first two months on the job, I
have devoted significant time to driving further sustainable cost
reductions in the business. Flotek's leadership team and I remain
focused on accelerating all cost savings that will benefit the
Company. In addition to amending our terpene agreement, we have
also identified additional opportunities to further reduce our cost
structure. As an example, we are currently working to execute
a plan to consolidate office space without impacting our market
presence.
"I have also focused much of my attention on evaluating our
sales efforts and how we can more effectively engage with current
and prospective clients. While there is consensus that there will
be further softening in the U.S. onshore oil and gas market in
2020, we believe an increase in the adoption of specialty chemicals
could more than offset the decrease in drilling and completions
activity. Our key sales focus is growing market share by improving
returns for our current customers, rebuilding relationships with
past customers and identifying new customers that could benefit
from our chemistry solutions. Additionally, we are catalyzing focus
on total cost of recovery per BOE, rather than initial cost, as
well as strengthening the publicly available evidence for the
efficacy of using advanced CnF® products to materially
impact oil and gas recovery and profitability for operators."
Conference Call Details
Flotek will host a conference call on Friday, March 6, 2020, at 9:00 AM CT (10:00 AM
ET) to discuss its operating results for the three months
and full year ended December 31,
2019. To participate in the call, participants should dial
844-835-9986 approximately five 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 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 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 website 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. For a complete list of risk-factors
that could cause or contribute to such differences in results and
outcomes, please see the section titled "Risk Factors" in our most
recent Form 10-K.
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)
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
100,575
|
|
$
3,044
|
Restricted
cash
|
663
|
|
—
|
Accounts receivable,
net of allowance for doubtful accounts of $1,527 and $1,190 at
December 31, 2019 and December 31, 2018, respectively
|
15,638
|
|
37,047
|
Inventories,
net
|
21,697
|
|
27,289
|
Income taxes
receivable
|
631
|
|
3,161
|
Assets held for
sale
|
—
|
|
118,470
|
Other current
assets
|
13,191
|
|
5,771
|
Total current
assets
|
152,395
|
|
194,782
|
Property and
equipment, net
|
39,829
|
|
45,485
|
Operating lease
right-of-use assets
|
16,388
|
|
—
|
Deferred tax assets,
net
|
152
|
|
18,663
|
Other intangible
assets, net
|
23,083
|
|
26,827
|
Other long-term
assets
|
—
|
|
126
|
TOTAL
ASSETS
|
$
231,847
|
|
$
285,883
|
LIABILITIES AND
STOCKHOLDERS' & EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
16,231
|
|
$
15,011
|
Accrued
liabilities
|
24,552
|
|
10,335
|
Interest
payable
|
—
|
|
8
|
Liabilities held for
sale
|
—
|
|
9,174
|
Current portion of
lease liabilities
|
541
|
|
—
|
Long-term debt,
classified as current
|
—
|
|
49,731
|
Total current
liabilities
|
41,324
|
|
84,259
|
Long-term operating
lease liabilities
|
16,973
|
|
—
|
Long-term finance
lease liabilities
|
158
|
|
—
|
Deferred tax
liabilities, net
|
116
|
|
—
|
Total
liabilities
|
58,571
|
|
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; 57,882,396 shares issued
and 58,941,416 shares outstanding at December 31, 2019 shares
issued and 57,342,279 shares outstanding at December 31,
2018
|
6
|
|
6
|
Additional paid-in
capital
|
347,564
|
|
343,536
|
Accumulated other
comprehensive loss
|
(966)
|
|
(1,116)
|
Retained earnings
(accumulated deficit)
|
(139,844)
|
|
(107,565)
|
Treasury stock, at
cost 4,145,481 and 3,770,224 shares at December 31, 2019 and
December 31, 2018, respectively
|
(33,484)
|
|
(33,237)
|
Total stockholders'
equity
|
173,276
|
|
201,624
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
231,847
|
|
$
285,883
|
Flotek Industries,
Inc.
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
12/31/2019
|
|
12/31/2018
|
|
9/30/2019
|
|
12/31/2019
|
|
12/31/2018
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
19,526
|
|
$
43,449
|
|
$
21,879
|
|
$
119,353
|
|
$
177,773
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Operating expenses
(excluding depreciation and amortization)
|
42,631
|
|
41,963
|
|
23,689
|
|
149,225
|
|
159,808
|
Corporate general and
administrative
|
8,955
|
|
6,833
|
|
5,685
|
|
27,975
|
|
31,467
|
Depreciation and
amortization
|
2,028
|
|
2,282
|
|
2,058
|
|
8,465
|
|
9,216
|
Research and
development
|
2,205
|
|
2,302
|
|
2,297
|
|
8,863
|
|
10,356
|
(Gain)loss on
disposal of long-lived assets
|
354
|
|
(563)
|
|
3
|
|
1,450
|
|
(443)
|
Impairment of
goodwill
|
—
|
|
—
|
|
—
|
|
—
|
|
37,180
|
Total costs and
expenses
|
56,173
|
|
52,817
|
|
33,732
|
|
195,978
|
|
247,584
|
Loss from
operations
|
(36,647)
|
|
(9,368)
|
|
(11,853)
|
|
(76,625)
|
|
(69,811)
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(4)
|
|
(964)
|
|
(1)
|
|
(2,019)
|
|
(2,866)
|
Loss on sale of
business
|
—
|
|
—
|
|
—
|
|
—
|
|
(360)
|
Loss on write-down of
assets held for sale
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,580)
|
Other income
(expense), net
|
469
|
|
(2,441)
|
|
436
|
|
1,708
|
|
(5,040)
|
Total other income
(expense)
|
465
|
|
(3,405)
|
|
435
|
|
(311)
|
|
(10,846)
|
Loss before income
taxes
|
(36,182)
|
|
(12,773)
|
|
(11,418)
|
|
(76,936)
|
|
(80,657)
|
Income tax benefit
(expense)
|
(956)
|
|
22,715
|
|
191
|
|
201
|
|
7,216
|
(Loss) income from
continuing operations
|
(37,138)
|
|
9,942
|
|
(11,227)
|
|
(76,735)
|
|
(73,441)
|
Income (loss) from
discontinued operations, net of tax
|
(2,425)
|
|
(1,385)
|
|
117
|
|
44,456
|
|
2,743
|
Net (loss)
income
|
(39,563)
|
|
8,557
|
|
(11,110)
|
|
(32,279)
|
|
(70,698)
|
Net loss
attributable to noncontrolling interests
|
-
|
|
1
|
|
—
|
|
—
|
|
358
|
Net (loss) income
attributable to Flotek Industries, Inc. (Flotek)
|
$
(39,563)
|
|
$
8,558
|
|
$ (11,110)
|
|
$
(32,279)
|
|
$
(70,340)
|
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to Flotek shareholders:
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$
(37,138)
|
|
$
9,943
|
|
$ (11,227)
|
|
$
(76,735)
|
|
$
(73,083)
|
Income (loss) from
discontinued operations, net of tax
|
(2,425)
|
|
(1,385)
|
|
117
|
|
44,456
|
|
2,743
|
Net income (loss)
attributable to Flotek
|
$
(39,563)
|
|
$
8,558
|
|
$ (11,110)
|
|
$
(32,279)
|
|
$
(70,340)
|
Basic earnings
(loss) per common share:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.64)
|
|
$
0.17
|
|
$
(0.19)
|
|
$
(1.31)
|
|
$
(1.26)
|
Discontinued
operations, net of tax
|
(0.04)
|
|
(0.02)
|
|
-
|
|
0.76
|
|
0.05
|
Basic earnings (loss)
per common share
|
$
(0.68)
|
|
$
0.15
|
|
$
(0.19)
|
|
$
(0.55)
|
|
$
(1.21)
|
Diluted earnings
(loss) per common share:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.64)
|
|
$
0.17
|
|
$
(0.19)
|
|
$
(1.31)
|
|
$
(1.26)
|
Discontinued
operations, net of tax
|
(0.04)
|
|
(0.02)
|
|
-
|
|
0.76
|
|
0.05
|
Diluted earnings
(loss) per common share
|
$
(0.68)
|
|
$
0.15
|
|
$
(0.19)
|
|
$
(0.55)
|
|
$
(1.21)
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in computing basic earnings (loss) per common
share
|
58,403
|
|
58,517
|
|
59,004
|
|
58,750
|
|
57,995
|
Weighted average
common shares used in computing diluted earnings (loss) per common
share
|
58,403
|
|
58,517
|
|
59,004
|
|
58,750
|
|
57,995
|
Flotek Industries,
Inc.
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
(in thousands,
except per share data)
|
|
|
|
|
|
Years ended
December 31,
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
Net loss attributable
to Flotek Industries, Inc. (Flotek)
|
$
(32,279)
|
|
$ (70,340)
|
Income (loss) from
discontinued operations, net of tax
|
44,456
|
|
2,743
|
Loss from continuing
operations
|
(76,735)
|
|
(73,083)
|
Adjustments to
reconcile loss from continuing operations to net cash (used in)
provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
8,465
|
|
9,216
|
Amortization of
deferred financing costs
|
1,428
|
|
400
|
Provision for
doubtful accounts
|
512
|
|
839
|
Provision for excess
and obsolete inventory
|
5,659
|
|
2,418
|
Loss on sale of
business
|
—
|
|
360
|
Loss on write-down of
assets held for sale
|
—
|
|
2,580
|
Gain (loss) on sale
of assets
|
1,450
|
|
(443)
|
Impairment of
goodwill
|
—
|
|
37,180
|
Stock compensation
expense
|
4,235
|
|
7,050
|
Deferred income
taxes
|
18,307
|
|
(5,950)
|
Reduction in tax
benefit related to share-awards
|
24
|
|
709
|
Non-cash lease
expense
|
740
|
|
—
|
Changes in current
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
20,993
|
|
(2,606)
|
Inventories
|
(65)
|
|
2,597
|
Income taxes
receivable
|
2,546
|
|
(1,116)
|
Other current
assets
|
(8,359)
|
|
3,177
|
Accounts
payable
|
1,131
|
|
4,631
|
Accrued
liabilities
|
908
|
|
(8,740)
|
Interest
payable
|
(8)
|
|
(35)
|
Net cash used in by
operating activities
|
(18,769)
|
|
(20,816)
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(2,411)
|
|
(3,559)
|
Proceeds from sale of
business
|
169,722
|
|
1,665
|
Proceeds from sale of
assets
|
240
|
|
1,387
|
Purchase of patents
and other intangible assets
|
(614)
|
|
(1,602)
|
Net cash provided by
(used in) investing activities
|
166,937
|
|
(2,109)
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
revolving credit facility
|
42,984
|
|
277,599
|
Repayments on
revolving credit facility
|
(92,715)
|
|
(255,818)
|
Debt issuance
costs
|
—
|
|
(111)
|
Payments for finance
leases
|
(51)
|
|
—
|
Purchase of treasury
stock
|
(247)
|
|
(173)
|
Proceeds from sale of
common stock
|
35
|
|
341
|
Loss from
noncontrolling interest
|
—
|
|
(358)
|
Net cash (used in)
provided by financing activities
|
(49,994)
|
|
21,480
|
Discontinued
operations:
|
|
|
|
Net cash (used in)
provided by operating activities
|
(322)
|
|
1,296
|
Net cash provided by
(used in) investing activities
|
337
|
|
(1,303)
|
Net cash flows
provided by (used in) discontinued operations
|
15
|
|
(7)
|
Effect of changes in
exchange rates on cash and cash equivalents
|
5
|
|
(88)
|
Net change in cash,
cash equivalents and restricted cash
|
98,194
|
|
(1,540)
|
Cash, cash
equivalents and restricted cash at beginning of year
|
3,044
|
|
4,584
|
Cash, cash
equivalents and restricted cash at end of year
|
$
101,238
|
|
$
3,044
|
Flotek Industries,
Inc.
|
Unaudited
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Loss from
Continuing Operations and Reconciliation to Adjusted EBITDA
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
12/31/2019
|
|
12/31/2018
|
|
9/30/2019
|
|
12/31/2019
|
|
12/31/2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations (GAAP)
|
$
(37,138)
|
|
$
9,943
|
|
$ (11,227)
|
|
$
(76,735)
|
|
$
(73,083)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
4
|
|
964
|
|
1
|
|
2,019
|
|
2,866
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
(405)
|
|
(45)
|
|
(571)
|
|
(1,888)
|
|
(332)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax (Benefit)
Expense
|
956
|
|
(22,715)
|
|
(191)
|
|
(201)
|
|
(7,216)
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
2,028
|
|
2,282
|
|
2,058
|
|
8,465
|
|
9,216
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
$
(34,555)
|
|
$
(9,571)
|
|
$
(9,930)
|
|
$
(68,340)
|
|
$
(68,549)
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense
|
1,409
|
|
480
|
|
1,160
|
|
4,235
|
|
7,050
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance and
Retirement
|
3,753
|
|
1,712
|
|
658
|
|
6,503
|
|
1,712
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholder-Related
Activities
|
-
|
|
-
|
|
4
|
|
646
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Related
Contract Termination
|
-
|
|
-
|
|
-
|
|
500
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
Write-down
|
4,438
|
|
-
|
|
-
|
|
4,438
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
Goodwill
|
-
|
|
-
|
|
-
|
|
-
|
|
37,180
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on Write-down of
Assets Held for Sale
|
-
|
|
-
|
|
-
|
|
-
|
|
2,580
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (Gain) on
Disposal of Assets
|
355
|
|
(563)
|
|
3
|
|
1,450
|
|
(443)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on Sale of
Business
|
-
|
|
-
|
|
-
|
|
-
|
|
360
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinuation of
Corporate Projects
|
-
|
|
1,945
|
|
-
|
|
-
|
|
3,165
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses Relating to
Closing of Business Venture
|
-
|
|
-
|
|
-
|
|
-
|
|
436
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply Chain Contract
Renegotiation
|
15,750
|
|
-
|
|
-
|
|
15,750
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Non-GAAP)
|
$
(8,850)
|
|
$
(5,997)
|
|
$
(8,105)
|
|
$
(34,818)
|
|
$
(15,509)
|
|
* Management believes
that adjusted EBITDA for the three and twelve months ended December
31, 2019 and December 31, 2018, and the three months ended
September 30, 2019, 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.