HOUSTON, Aug. 8, 2023
/PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company")
(NYSE: FTK) today announced significantly improved operational and
financial results for the second quarter ended June 30, 2023. The second quarter results further
build upon the Company's turn-around momentum as nearly all
financial metrics showed strong sequential growth.
Financial Summary
(in
thousands)
|
Q2
2023
|
Q2
2022
|
Percent
Change
|
Q1
2023
|
Percent
Change
|
|
Total
Revenues
|
$
|
50,594
|
$
|
29,373
|
72 %
|
$
|
48,007
|
5 %
|
Gross Profit
(Loss)
|
$
|
3,904
|
$
|
(2,305)
|
269 %
|
$
|
1,880
|
108 %
|
Adjusted Gross
Profit (Loss) (1)
|
$
|
5,091
|
$
|
(1,578)
|
423 %
|
$
|
2,647
|
92 %
|
Net Income
(Loss)
|
$
|
(21)
|
$
|
6,240
|
NM
|
$
|
21,343
|
NM
|
Adjusted EBITDA
(1)
|
$
|
(2,004)
|
$
|
(7,242)
|
72 %
|
$
|
(3,851)
|
48 %
|
|
|
(1)
|
A non-GAAP financial
measure. See the "Unaudited Reconciliation of Non-GAAP Items and
Non-Cash Items Impacting Earnings" section in this release for more
information, including reconciliations to the most comparable
GAAP measures.
|
Second Quarter 2023 Highlights
- Reported gross profit of $3.9
million and adjusted gross profit(1) of
$5.1 million marking the second
consecutive quarter of positive results in both metrics. Second
quarter of 2023 gross profit and adjusted gross
profit(1) increased 108% and 92%, respectively, as
compared to first quarter of 2023 results. Gross profit margin and
adjusted gross profit margin(1) for the second quarter
of 2023 increased to 8% and 10%, respectively.
- Achieved strong growth in total revenues of 72% from the second
quarter of 2022, resulting from Flotek's strategic 10-year supply
agreement with ProFrac Holdings, LLC ("ProFrac"). Second quarter of
2023 total revenues increased 5% sequentially despite an
industry-wide slowdown in upstream activity and benefited from a
68% increase in transactional (non-ProFrac) chemistry business
compared to the first quarter of 2023.
- Improved adjusted EBITDA(1) for the eighth
consecutive quarter reporting a 48% sequential increase.
- Appointed Dr. Ryan Ezell to the
role of Chief Executive Officer to lead Flotek into its next phase
of profitable growth.
- Appointed Mr. Harsha V. Agadi to
the role of Chairman of the Board of Flotek.
(1)
|
A non-GAAP financial
measure. See the "Unaudited Reconciliation of Non-GAAP Items and
Non-Cash Items Impacting Earnings" section in this release for more
information, including reconciliations to the most comparable
GAAP measures.
|
August 2023 Update
- Reiterate full year 2023 guidance for total revenues of
$210 million to $230 million and an adjusted gross profit margin
of 8% to 10%.
- Report considerable progress toward securing an asset-based
loan ("ABL"). See balance sheet and liquidity discussion
below.
Management Commentary
Chief Executive Officer Ryan
Ezell commented, "Our second quarter results highlight our
operational excellence and the rapid improvement in Flotek's
business fundamentals as we execute our corporate strategy. Our
cost control initiatives continue to enhance profitability as
demonstrated by adjusted gross profit nearly doubling from the
first quarter with the associated margin increasing to 10%.
Accordingly, we have high confidence in adjusted EBITDA turning
positive before year-end.
"Operationally, even as the industry experienced less well
stimulation activity during the quarter, our differentiated
chemistry solutions, highlighted by the performance of our
transactional chemistry business, enabled us to grow revenues and
margins. Looking ahead, we are well positioned with a strong
balance sheet that will be enhanced by the credit facility that we
are actively pursuing. This will augment our liquidity and support
our growth and path to sustained
profitability."
Second Quarter 2023 Financial Results
- Revenue: Flotek reported total revenues of $50.6 million for the second quarter of 2023,
which was an increase of 72% compared to total revenues of
$29.4 million for the second quarter
of 2022 and a 5% increase compared to total revenues of
$48.0 million for the first quarter
of 2023. Second quarter of 2023 revenues benefited from a 68%
sequential increase in transactional chemistry revenue.
- Gross Profit (Loss): The Company generated gross profit
of $3.9 million as compared to a
gross loss of $2.3 million for the
second quarter of 2022 and gross profit of $1.9 million for the first quarter of 2023. The
improvement in second quarter of 2023 gross profit was the result
of the increase in transactional chemistry revenue during the
quarter and continuing initiatives to drive further cost
improvements with respect to freight logistics and materials.
- Adjusted Gross Profit (Loss) (Non-GAAP)(1):
Flotek generated adjusted gross profit of $5.1 million during the second quarter of 2023
compared to adjusted gross loss of $1.6
million for the second quarter of 2022 and gross profit of
$2.6 million for the first quarter of
2023. Adjusted gross profit (loss) primarily excludes non-cash
items, including amortization of contract assets, which reduces
both revenue and gross profit.
- Selling, General and Administrative ("SG&A")
Expense: SG&A expense totaled $8.4
million for the second quarter of 2023 compared to
$6.8 million for the second quarter
of 2022 and $6.5 million for the
first quarter of 2023. Second quarter of 2023 SG&A included
legal costs incurred in connection with the settlement of a portion
of ongoing legacy litigation, as well as the final costs associated
with the CEO transition. SG&A during the first quarter of 2023
included a $1.1 million credit to
stock compensation expense related to head-count reductions.
Excluding non-cash stock compensation, second quarter SG&A
increased $0.5 million
sequentially.
- Severance Costs: Flotek recorded a $2.3 million credit to severance expenses during
the second quarter of 2023 in connection with the settlement of a
portion of ongoing legacy litigation. The Company had accrued
certain severance payments in connection with this litigation in
prior years and reversed the accrual during the second quarter
after reaching the settlement.
- Net Income (Loss) and EPS: Flotek reported a net loss of
$21 thousand, or $0 per basic share, for the second quarter of
2023. This compares to net income of $6.2
million, or $0.08 per basic
share, for the second quarter of 2022 and net income of
$21.3 million, or $0.22 per basic share, in the first quarter of
2023. Net income/(loss) during the second quarter of 2023 and 2022
and the first quarter of 2023 included non-cash gains on the fair
value measurement of convertible notes totaling $3.9 million, $17.2
million, and $26.1 million,
respectively.
- Adjusted EBITDA (Non-GAAP)(1): Adjusted
EBITDA was negative $2.0 million in
the second quarter of 2023 as compared to negative $7.2 million in the second quarter of 2022 and
negative $3.9 million in the first
quarter of 2023. Adjusted EBITDA continues to trend upward and the
Company expects to report positive adjusted EBITDA during
2023.
(1)
|
See the "Unaudited
Reconciliation of Non-GAAP Items and Non-Cash Items Impacting
Earnings" section in this release for more information, including
reconciliations to the most comparable GAAP measures.
|
Balance Sheet and Liquidity
Flotek has received credit approval from a prospective lender in
connection with a proposed ABL. The Company is reviewing the loan
documents as well as completing final administrative matters prior
to closing. The proposed ABL would provide credit availability
based upon eligible accounts receivable, inventory and real estate
values. The Company expects to provide an update before the end of
August 2023.
Cash and cash equivalents were $8.8
million as of June 30, 2023,
compared to $12.4 million as of
March 31, 2023. Cash and cash
equivalents were used during the quarter for working capital
purposes.
Conference Call Details
Flotek will host a conference call on August 9, 2023, at 9:00
a.m. CDT (10:00 a.m. EDT) to
discuss its second quarter 2023 results. Participants may access
the call through Flotek's website at www.flotekind.com under
"Webcasts'' or by telephone toll free at 1-844-835-9986
(international toll: 1-412-317-5270) approximately five minutes
prior to the start of the call. Following the conclusion of the
conference call, a recording of the call will be available on the
Company's website.
Upcoming Investor Event
Members of the Company's management are scheduled to participate
in EnerCom Denver – The Energy Investment Conference to be held in
Denver, Colorado, August 14-16, 2023. Ryan
Ezell, Chief Executive Officer of Flotek, will present on
August 15, 2023, at 8:50 a.m. MT and will be joined by Bond Clement,
Chief Financial Officer, in hosting meetings with investors
throughout the day. Dr. Ezell will also participate in a service
industry panel discussion on August
16 at 9:50 a.m. MT. A live
webcast of the events will be available on the conference website
at www.enercomdenver.com. Presentation slides will be posted on the
Investor Relations section of Flotek's corporate website at
www.flotekind.com prior to the start of the presentation.
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, 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.
Further information about the risks and uncertainties that
may impact the company are set forth in the Company's most recent
filing with the Securities and Exchange Commission on Form 10-K
(including, without limitation, in the "Risk Factors" section
thereof), 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 STATEMENTS OF
OPERATIONS (in thousands, except per share
data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
6/30/2023
|
|
6/30/2022
|
|
3/31/2023
|
|
6/30/2023
|
|
6/30/2022
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Revenue from external
customers
|
$ 17,820
|
|
$ 12,824
|
|
$ 11,652
|
|
$ 29,472
|
|
$ 23,206
|
Revenue from related
party
|
32,774
|
|
16,549
|
|
36,355
|
|
69,130
|
|
19,046
|
Total
revenues
|
50,594
|
|
29,373
|
|
48,007
|
|
98,602
|
|
42,252
|
Cost of goods
sold
|
46,690
|
|
31,678
|
|
46,127
|
|
92,817
|
|
45,036
|
Gross profit
(loss)
|
3,904
|
|
(2,305)
|
|
1,880
|
|
5,785
|
|
(2,784)
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
8,351
|
|
6,821
|
|
6,451
|
|
14,803
|
|
11,707
|
Depreciation
|
174
|
|
182
|
|
176
|
|
349
|
|
377
|
Research and
development
|
860
|
|
1,115
|
|
614
|
|
1,474
|
|
2,530
|
Severance
costs
|
(2,279)
|
|
610
|
|
2,223
|
|
(56)
|
|
603
|
Gain on sale of
property and equipment
|
—
|
|
(1,914)
|
|
—
|
|
—
|
|
(1,906)
|
Gain on lease
termination
|
—
|
|
—
|
|
—
|
|
—
|
|
(584)
|
Gain in fair value of
Contract Consideration
Convertible Notes Payable
|
(3,874)
|
|
(17,158)
|
|
(26,095)
|
|
(29,969)
|
|
(13,266)
|
Total operating costs
and expenses
|
3,232
|
|
(10,344)
|
|
(16,631)
|
|
(13,399)
|
|
(539)
|
Income (loss) from
operations
|
672
|
|
8,039
|
|
18,511
|
|
19,184
|
|
(2,245)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Paycheck protection
plan loan forgiveness
|
—
|
|
—
|
|
4,522
|
|
4,522
|
|
—
|
Interest
expense
|
(705)
|
|
(1,597)
|
|
(1,672)
|
|
(2,377)
|
|
(2,265)
|
Other income (expense)
, net
|
19
|
|
(104)
|
|
(9)
|
|
9
|
|
120
|
Total other income
(expense), net
|
(686)
|
|
(1,701)
|
|
2,841
|
|
2,154
|
|
(2,145)
|
Income (loss) before
income taxes
|
(14)
|
|
6,338
|
|
21,352
|
|
21,338
|
|
(4,390)
|
Income tax
expense
|
(7)
|
|
(98)
|
|
(9)
|
|
(16)
|
|
(94)
|
Net income
(loss)
|
$
(21)
|
|
$
6,240
|
|
$ 21,343
|
|
$ 21,322
|
|
$
(4,484)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
|
|
|
Basic
|
$
—
|
|
$
0.08
|
|
$
0.22
|
|
$
0.18
|
|
$
(0.06)
|
Diluted
|
$
(0.02)
|
|
$
(0.05)
|
|
$
(0.02)
|
|
$
(0.04)
|
|
$
(0.12)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in
computing basic income (loss) per
common share
|
143,433
|
|
74,861
|
|
98,808
|
|
121,244
|
|
73,476
|
Weighted average
common shares used in
computing diluted loss per common
share
|
169,500
|
|
124,335
|
|
158,441
|
|
164,165
|
|
107,086
|
FLOTEK INDUSTRIES,
INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in
thousands, except share data)
|
|
|
|
|
June 30,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
8,841
|
|
$
12,290
|
Restricted
cash
|
101
|
|
100
|
Accounts receivable,
net of allowance for credit losses of $682 and
$623 at June 30, 2023 and December 31, 2022,
respectively
|
16,855
|
|
19,136
|
Accounts receivable,
related party, net of allowance for credit losses of
$0 at June 30, 2023 and December 31, 2022, respectively
|
23,033
|
|
22,683
|
Inventories,
net
|
18,397
|
|
15,720
|
Other current
assets
|
4,051
|
|
4,045
|
Current contract
asset
|
7,716
|
|
7,113
|
Total current
assets
|
78,994
|
|
81,087
|
Long-term contract
assets
|
69,583
|
|
72,576
|
Property and equipment,
net
|
4,753
|
|
4,826
|
Operating lease
right-of-use assets
|
4,279
|
|
5,900
|
Deferred tax assets,
net
|
404
|
|
404
|
Other long-term
assets
|
17
|
|
17
|
TOTAL
ASSETS
|
$
158,030
|
|
$
164,810
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
44,949
|
|
$
33,375
|
Accrued
liabilities
|
5,178
|
|
8,984
|
Income taxes
payable
|
12
|
|
97
|
Interest
payable
|
—
|
|
130
|
Current portion of
operating lease liabilities
|
2,902
|
|
3,328
|
Current portion of
finance lease liabilities
|
37
|
|
36
|
Current portion of
long-term debt
|
179
|
|
2,052
|
Convertible notes
payable
|
—
|
|
19,799
|
Contract Consideration
Convertible Notes Payable
|
—
|
|
83,570
|
Total current
liabilities
|
53,257
|
|
151,371
|
Deferred revenue,
long-term
|
35
|
|
44
|
Long-term operating
lease liabilities
|
6,584
|
|
8,044
|
Long-term finance lease
liabilities
|
3
|
|
19
|
Long-term
debt
|
149
|
|
2,736
|
TOTAL
LIABILITIES
|
60,028
|
|
162,214
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.0001
par value, 240,000,000 shares authorized;
158,220,075 shares issued and 151,541,446
shares outstanding at
June 30, 2023; 83,915,918 shares issued and
77,788,391 shares
outstanding at December 31,
2022
|
15
|
|
8
|
Additional paid-in
capital
|
462,517
|
|
388,177
|
Accumulated other
comprehensive income
|
147
|
|
181
|
Accumulated
deficit
|
(330,197)
|
|
(351,519)
|
Treasury stock, at
cost; 6,678,629 and 6,127,527 shares at June 30,
2023 and December 31, 2022,
respectively
|
(34,480)
|
|
(34,251)
|
Total stockholders'
equity
|
98,002
|
|
2,596
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
158,030
|
|
$
164,810
|
FLOTEK INDUSTRIES,
INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands)
|
|
|
Six months ended
June 30,
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
21,322
|
|
$
(4,484)
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
Change in fair value
of contingent consideration
|
(324)
|
|
(134)
|
Change in fair value
of Contract Consideration Convertible Notes Payable
|
(29,969)
|
|
(13,266)
|
Amortization of
convertible note issuance costs
|
83
|
|
414
|
Payment-in-kind
interest expense
|
2,284
|
|
1,819
|
Amortization of
contract assets
|
2,390
|
|
737
|
Depreciation and
amortization
|
349
|
|
377
|
Provision for credit
losses, net of recoveries
|
63
|
|
87
|
Provision for excess
and obsolete inventory
|
497
|
|
769
|
Gain on sale of
property and equipment
|
—
|
|
(1,906)
|
Gain on lease
termination
|
—
|
|
(584)
|
Non-cash lease
expense
|
1,621
|
|
112
|
Stock compensation
expense
|
(836)
|
|
1,591
|
Deferred income tax
(benefit) expense
|
—
|
|
(5)
|
Paycheck protection
plan loan forgiveness
|
(4,522)
|
|
—
|
Changes in current
assets and liabilities:
|
|
|
|
Accounts
receivable
|
2,218
|
|
(21,741)
|
Accounts receivable,
related party
|
(350)
|
|
11,600
|
Inventories
|
(3,158)
|
|
(4,521)
|
Income taxes
receivable
|
—
|
|
7
|
Other
assets
|
(6)
|
|
(232)
|
Contract assets,
net
|
—
|
|
(3,600)
|
Accounts
payable
|
11,574
|
|
12,154
|
Accrued
liabilities
|
(3,491)
|
|
(2,924)
|
Operating lease
liabilities
|
(1,886)
|
|
(308)
|
Income taxes
payable
|
(85)
|
|
99
|
Interest
payable
|
(8)
|
|
24
|
Net cash used in
operating activities
|
(2,234)
|
|
(23,915)
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(292)
|
|
(5)
|
Proceeds from sale of
assets
|
—
|
|
4,194
|
Net cash (used in)
provided by investing activities
|
(292)
|
|
4,189
|
Cash flows from
financing activities:
|
|
|
|
Payment for forfeited
stock options
|
(617)
|
|
—
|
Payments on long term
debt
|
(60)
|
|
—
|
Proceeds from issuance
of convertible notes
|
—
|
|
21,150
|
Payment of issuance
costs of convertible notes
|
—
|
|
(1,084)
|
Proceeds from issuance
of warrants
|
—
|
|
19,500
|
Payments to tax
authorities for shares withheld from employees
|
(229)
|
|
(138)
|
Proceeds from issuance
of stock
|
33
|
|
24
|
Payments for finance
leases
|
(15)
|
|
(21)
|
Net cash (used in)
provided by financing activities
|
(888)
|
|
39,431
|
Effect of changes in
exchange rates on cash and cash equivalents
|
(34)
|
|
95
|
Net change in cash
and cash equivalents and restricted cash
|
(3,448)
|
|
19,800
|
Cash and cash
equivalents at the beginning of period
|
12,290
|
|
11,534
|
Restricted cash at the
beginning of period
|
100
|
|
1,790
|
Cash and cash
equivalents and restricted cash at beginning of
period
|
12,390
|
|
13,324
|
Cash and cash
equivalents at end of period
|
8,841
|
|
33,084
|
Restricted cash at the
end of period
|
101
|
|
40
|
Cash and cash
equivalents and restricted cash at end of period
|
$
8,942
|
|
$
33,124
|
FLOTEK INDUSTRIES,
INC. UNAUDITED RECONCILIATION OF NON-GAAP ITEMS AND
NON-CASH ITEMS IMPACTING EARNINGS (in
thousands)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
6/30/2023
|
|
6/30/2022
|
|
3/31/2023
|
|
6/30/2023
|
|
6/30/2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
$
3,904
|
|
$
(2,305)
|
|
$
1,880
|
|
$
5,785
|
|
$
(2,784)
|
|
Stock compensation
expense
|
2
|
|
218
|
|
(139)
|
|
$
(137)
|
|
$
374
|
|
Severance and
retirement
|
11
|
|
—
|
|
15
|
|
$
26
|
|
$
3
|
|
Contingent liability
revaluation
|
35
|
|
(228)
|
|
(359)
|
|
$
(324)
|
|
$
(134)
|
|
Amortization of
contract assets
|
1,139
|
|
737
|
|
1,250
|
|
$
2,389
|
|
$
737
|
|
Adjusted Gross
profit (loss)
|
$
5,091
|
|
$
(1,578)
|
|
$
2,647
|
|
$
7,739
|
|
$
(1,804)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(21)
|
|
$
6,240
|
|
$
21,343
|
|
$
21,322
|
|
$
(4,484)
|
|
Interest
expense
|
705
|
|
1,597
|
|
1,672
|
|
2,377
|
|
2,265
|
|
Income tax
expense
|
7
|
|
98
|
|
9
|
|
16
|
|
94
|
|
Depreciation and
amortization
|
174
|
|
182
|
|
176
|
|
349
|
|
377
|
|
EBITDA
(Non-GAAP)
|
$
865
|
|
$
8,117
|
|
$
23,200
|
|
$
24,064
|
|
$
(1,748)
|
|
Stock compensation
expense
|
274
|
|
852
|
|
(1,112)
|
|
(838)
|
|
1,591
|
|
Severance and
retirement
|
(2,268)
|
|
610
|
|
2,238
|
|
(30)
|
|
606
|
|
Contingent liability
revaluation
|
35
|
|
(228)
|
|
(359)
|
|
(324)
|
|
(134)
|
|
Gain on disposal of
assets
|
—
|
|
(1,914)
|
|
—
|
|
—
|
|
(1,906)
|
|
Gain on lease
termination
|
—
|
|
—
|
|
—
|
|
—
|
|
(584)
|
|
Contract Consideration
Convertible Notes
Payable revaluation adjustment
|
(3,874)
|
|
(17,158)
|
|
(26,095)
|
|
(29,969)
|
|
(13,266)
|
|
Amortization of
contract assets
|
1,139
|
|
737
|
|
1,250
|
|
2,389
|
|
737
|
|
PPP loan
forgiveness
|
—
|
|
—
|
|
(4,522)
|
|
(4,522)
|
|
—
|
|
Non-Recurring
professional fees
|
1,825
|
|
1,742
|
|
1,549
|
|
3,376
|
|
2,017
|
|
Adjusted EBITDA
(Non-GAAP)
|
$
(2,004)
|
|
$
(7,242)
|
|
$
(3,851)
|
|
$
(5,854)
|
|
$
(12,687)
|
|
|
(1)
Management believes that adjusted gross profit and adjusted EBITDA
for the three and six months ended June 30, 2023, and 2022, and the
three months ended March 31, 2023, are 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 analyses
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.