PR Newswire
HOUSTON
, March 10, 2025 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced operational and financial results for the fourth quarter and full-year ended December 31, 2024. Fourth quarter 2024 results were the strongest quarterly results of 2024 in terms of revenue, gross profit, net income and adjusted EBITDA (1).
Financial Summary (in thousands, except ‘per share’ amounts)
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Total Revenues |
$ 50,758 |
$ 42,188 |
$ 187,025 |
$ 188,058 |
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Gross Profit |
$ 12,277 |
$ 9,430 |
$ 39,386 |
$ 24,263 |
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Net Income |
$ 4,429 |
$ 2,104 |
$ 10,498 |
$ 24,713 |
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Diluted Income (Loss) Per Share |
$ 0.14 |
$ 0.07 |
$ 0.34 |
$ (0.10) |
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Adjusted EBITDA (1) |
$ 7,023 |
$ 3,952 |
$ 20,327 |
$ 1,488 |
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Full-Year and Fourth Quarter 2024 Highlights
- Q4 2024 total revenue rose 20% vs. Q4 2023, led by a 21% jump in external customer revenue—the highest in 5 years.
- Data analytics service revenue grew 124% vs. Q4 2023 and 44% vs. full year 2023.
- Gross profit climbed 30% vs. Q4 2023 and 62% vs. full year 2023, with Q4 2024 gross margin rising to 24%.
- Q4 2024 net income was $4.4 million and adjusted EBITDA(1) totaled $7.0 million, up 111% and 78%, respectively, vs Q4 2023.
- 2024 net income hit $10.5 million or $0.34/share, vs. a loss of $(0.10)/share in 2023.
- 2024 adjusted EBITDA(1) reached $20.3 million, up $18.8 million from 2023—the highest since 2017—exceeding guidance of $18.5 million by 10%.
Management Commentary
Chief Executive Officer Dr. Ryan Ezell commented, “2024 marks a significant step in the execution of our corporate strategy towards the convergence between innovative Data and Chemistry solutions that deliver outstanding value to our customers and external stakeholders. This year, we not only achieved the highest profitability metrics in nearly a decade but did so through superior operational efficiency and service quality execution. Additionally, our commitment to safety has shone through, with no lost-time incidents recorded in the past three years.
We’ve expanded our technology portfolio with the introduction of three cutting-edge Data Analytics solutions: VeraCal, JP3 Raman, and XSPCT, systems specifically designed to address the unique challenges of the energy and infrastructure sector while driving high-margin growth into 2025 and beyond. In the fourth quarter, we observed a significant transformation in our Data Analytics revenue resulting in a 67% sequential increase in service revenue furthering the shift from products to services.
Looking ahead, we expect that the integration of Data and Chemistry at Flotek will provide exciting new innovations in the energy and infrastructure market. These advancements are set to empower our customers’ assets to maximize returns, reduce costs, automate processes, and leverage data in ways previously unimaginable. We believe that our relentless pursuit to leverage chemistry as the common value creation platform will position Flotek as a leader in differentiated technologies and foster our future growth.”
Fourth Quarter and Full-Year 2024 Financial Results
- Revenue: Flotek reported total revenues of $50.8 million for fourth quarter 2024, an increase of $8.6 million, or 20%, compared to total revenues of $42.2 million for fourth quarter 2023. Full-year 2024 total revenues totaled $187.0 million, as compared to total revenues of $188.1 million during 2023. Fourth quarter and full year 2024 revenues include $8.6 million and $32.4 million, respectively, related to the minimum purchase requirements under the Company’s long-term supply agreement with ProFrac Services, LLC.
Segment Revenue Summary (in thousands)
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External Revenues |
$ 21,071 |
$ 17,996 |
$ 63,214 |
$ 59,016 |
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Related Party Revenues |
27,215 |
22,769 |
114,947 |
120,903 |
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Total |
$ 48,286 |
$ 40,765 |
$ 178,161 |
$ 179,919 |
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Product Revenues |
$ 826 |
$ 688 |
$ 4,745 |
$ 5,277 |
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Service Revenues |
1,646 |
735 |
4,119 |
2,862 |
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Total |
$ 2,472 |
$ 1,423 |
$ 8,864 |
$ 8,139 |
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Gross Profit: The Company generated gross profit of $12.3 million during fourth quarter 2024 compared to a gross profit of $9.4 million during fourth quarter 2023. The improvement in fourth quarter 2024 gross profit was primarily the result of successful initiatives throughout 2024 to drive cost reductions with respect to freight, logistics and materials combined with an 18% increase in chemistry revenue and a 74% increase in data analytics revenue, as compared to fourth quarter 2023.
The Company generated gross profit of $39.4 million for full-year 2024 compared to gross profit of $24.3 million for full-year 2023.
- Selling, General and Administrative (“SG&A”) Expense: SG&A expense totaled $6.6 million for the fourth quarters of 2024 and 2023. SG&A expense totaled $24.7 million for full-year 2024 compared to $27.8 million for full-year 2023, an 11% reduction year-over-year. Excluding non-cash stock compensation expense, 2024 SG&A expense is 17% lower than 2023.
- Net Income (Loss) and EPS: Flotek reported net income of $4.4 million, or $0.14 per diluted share, for the fourth quarter 2024. This compares to net income of $2.1 million, or $0.07 per diluted share, for the fourth quarter 2023. Net income for full-year 2024 was $10.5 million, or $0.34 per diluted share, compared to net income (loss) of $24.7 million, or ($0.10) per diluted share, for the comparable period of 2023. Net income for full-year 2023 included non-cash gains related to the fair value measurement of convertible notes payable and a PPP loan forgiveness totaling $34.5 million.
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Adjusted EBITDA (Non-GAAP)
(1)
: Adjusted EBITDA(1) was $7.0 million in fourth quarter 2024 as compared to $4.0 million in fourth quarter 2023. Adjusted EBITDA(1) was $20.3 million for full-year 2024 compared to $1.5 million for full-year 2023.
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(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. |
2025 Guidance
Consistent with 2024 and 2023, Flotek plans to issue 2025 guidance in conjunction with the release of its first quarter 2025 financial and operating results.
Upcoming Investor Event
Flotek will participate in the 37th Annual Roth Conference to be held at the Marriott in Laguna Dana Point, California, March 17-18, 2025. Flotek Chief Executive Officer, Ryan Ezell, will participate in an industry panel discussion on March 17 at 10:00 a.m. PT and will be joined by Chief Financial Officer, Bond Clement, in hosting one-on-one meetings during the event. An updated corporate presentation to be used in discussions at the conference will be posted to the Investor Relations section of Flotek’s corporate website at www.flotekind.com prior to the start of the conference.
Conference Call Details
Flotek will host a conference call on March 11, 2025, at 9:00 a.m. CT (10:00 a.m. ET) to discuss its fourth quarter and full-year 2024 results. Participants may access the call through Flotek’s website at www.flotekind.com under “News” within the Investor Relations section, by telephone toll free at 1-800-836-8184 (international toll: 1-646-357-8785), or by using the following link to access the audience view of the webcast at https://app.webinar.net/qDjWg9qga1Y 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.
An updated corporate presentation that will be referenced on the call will be posted to the Investor Relations section of Flotek’s website at www.flotekind.com prior to the start of the earnings conference call.
About Flotek Industries, Inc.
Flotek Industries, Inc. is a leading chemistry and data technology company focused on servicing the Energy industry. The Company’s top tier technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 130 patents, 20+ years of field and laboratory data, and a global presence in more than 59 countries.
Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.
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.
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Current assets: |
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Cash and cash equivalents |
$ 4,404 |
$ 5,851 |
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Restricted cash |
102 |
102 |
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Accounts receivable, net of allowance for credit losses of $447 and $745 at |
17,386 |
13,687 |
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Accounts receivable, related party, net of allowance for credit losses of $0 at |
52,370 |
34,569 |
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Inventories, net |
13,303 |
12,838 |
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Other current assets |
2,952 |
3,564 |
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Current contract asset |
5,939 |
5,836 |
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Total current assets |
96,456 |
76,447 |
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Long-term contract asset |
63,105 |
68,820 |
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Property and equipment, net |
6,178 |
5,129 |
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Operating lease right-of-use assets |
3,326 |
5,030 |
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Deferred tax assets, net |
51 |
300 |
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Other long-term assets |
1,680 |
1,787 |
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$ 170,796 |
$ 157,513 |
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Current liabilities: |
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Accounts payable |
$ 38,073 |
$ 31,705 |
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Accrued liabilities |
5,912 |
5,890 |
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Income taxes payable |
48 |
45 |
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Current portion of operating lease liabilities |
1,486 |
2,449 |
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Current portion of finance lease liabilities |
— |
22 |
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Asset-based loan |
4,789 |
7,492 |
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Current portion of long-term debt |
60 |
179 |
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Total current liabilities |
50,368 |
47,782 |
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Deferred revenue, long-term |
14 |
35 |
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Long-term operating lease liabilities |
6,514 |
7,676 |
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Long-term debt |
— |
60 |
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56,896 |
55,553 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares |
— |
— |
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Common stock, $0.0001 par value, 240,000,000 shares authorized; |
3 |
3 |
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Additional paid-in capital |
464,620 |
463,140 |
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Accumulated other comprehensive income |
251 |
127 |
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Accumulated deficit |
(316,308) |
(326,806) |
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Treasury stock, at cost; 1,111,565 and 1,108,707 shares at December 31, |
(34,666) |
(34,504) |
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Total stockholders’ equity |
113,900 |
101,960 |
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$ 170,796 |
$ 157,513 |
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Revenue from external customers |
$ 23,328 |
$ 19,239 |
$ 71,263 |
$ 66,518 |
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Revenue from related party |
27,430 |
22,949 |
115,762 |
121,540 |
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50,758 |
42,188 |
187,025 |
188,058 |
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38,481 |
32,758 |
147,639 |
163,795 |
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12,277 |
9,430 |
39,386 |
24,263 |
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Selling, general, and administrative |
6,630 |
6,552 |
24,709 |
27,827 |
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Depreciation |
229 |
204 |
891 |
734 |
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Research and development |
365 |
255 |
1,714 |
2,486 |
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Gain on sale of property and equipment |
(90) |
— |
(124) |
(38) |
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Gain in fair value of Contract Consideration |
— |
— |
— |
(29,969) |
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Total operating costs and expenses |
7,134 |
7,011 |
27,190 |
1,040 |
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5,143 |
2,419 |
12,196 |
23,223 |
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Paycheck protection plan loan forgiveness |
— |
— |
— |
4,522 |
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Interest expense |
(253) |
(320) |
(1,095) |
(2,857) |
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Other income (expense), net |
(105) |
56 |
46 |
(26) |
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Total other (expense) income |
(358) |
(264) |
(1,049) |
1,639 |
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4,785 |
2,155 |
11,147 |
24,862 |
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Income tax expense |
(356) |
(51) |
(649) |
(149) |
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$ 4,429 |
$ 2,104 |
$ 10,498 |
$ 24,713 |
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Basic |
$ 0.15 |
$ 0.07 |
$ 0.36 |
$ 1.00 |
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Diluted |
$ 0.14 |
$ 0.07 |
$ 0.34 |
$ (0.10) |
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Weighted average common shares used in |
29,642 |
29,396 |
29,534 |
24,830 |
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Weighted average common shares used in |
31,436 |
30,496 |
30,889 |
28,377 |
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Net income |
$ 10,498 |
$ 24,713 |
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Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
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Change in fair value of contingent consideration |
71 |
(527) |
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Change in fair value of Contract Consideration Convertible Notes Payable |
— |
(29,969) |
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Amortization of convertible note issuance costs |
— |
83 |
|
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Payment-in-kind interest expense |
— |
2,284 |
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Amortization of contract asset |
5,612 |
5,033 |
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Depreciation |
891 |
734 |
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Amortization of asset-based loan origination costs |
314 |
121 |
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Provision for credit losses, net of recoveries |
181 |
138 |
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Provision for excess and obsolete inventory |
645 |
959 |
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Gain on sale of property and equipment |
(124) |
(38) |
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Non-cash lease expense |
2,094 |
3,014 |
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Stock compensation expense |
1,366 |
(254) |
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Deferred income tax expense |
249 |
104 |
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Paycheck protection plan loan forgiveness |
— |
(4,522) |
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Changes in current assets and liabilities: |
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Accounts receivable |
(3,880) |
5,311 |
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Accounts receivable, related party |
(17,801) |
(11,886) |
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Inventories |
(1,110) |
1,938 |
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Income taxes receivable |
8 |
— |
|
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Other assets |
561 |
(836) |
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Accounts payable |
6,368 |
(1,670) |
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Accrued liabilities |
(70) |
(2,575) |
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Operating lease liabilities |
(2,515) |
(3,391) |
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Income taxes payable |
3 |
(53) |
|
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Interest payable |
— |
(8) |
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Net cash provided by (used in) operating activities |
3,361 |
(11,297) |
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Capital expenditures |
(1,940) |
(1,081) |
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Proceeds from sale of assets |
124 |
67 |
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Net cash used in investing activities |
(1,816) |
(1,014) |
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Payment for forfeited stock options |
— |
(617) |
|
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Payments on long term debt |
(179) |
(149) |
|
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Proceeds from asset-based loan |
166,950 |
68,716 |
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Payments on asset-based loan |
(169,653) |
(61,224) |
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Payment of asset-based loan origination costs |
(164) |
(574) |
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Payments to tax authorities for shares withheld from employees |
(162) |
(268) |
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Proceeds from issuance of stock under Employee Stock Purchase Plan |
114 |
77 |
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Payments for finance leases |
(22) |
(33) |
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Net cash (used in) provided by financing activities |
(3,116) |
5,928 |
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|
124 |
(54) |
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|
(1,447) |
(6,437) |
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Cash and cash equivalents at the beginning of period |
5,851 |
12,290 |
|
|
Restricted cash at the beginning of period |
102 |
100 |
|
|
|
5,953 |
12,390 |
|
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Cash and cash equivalents at end of period |
4,404 |
5,851 |
|
|
Restricted cash at the end of period |
102 |
102 |
|
|
|
$ 4,506 |
$ 5,953 |
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|
|
|
||||
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|
$ 12,277 |
$ 9,430 |
$ 39,386 |
$ 24,263 |
|||
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Stock compensation expense |
15 |
3 |
24 |
(132) |
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Severance and retirement |
2 |
3 |
11 |
29 |
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Contingent liability revaluation |
117 |
(143) |
71 |
(527) |
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Amortization of contract asset |
1,271 |
1,368 |
5,612 |
5,033 |
|||
|
|
$ 13,682 |
$ 10,661 |
$ 45,104 |
$ 28,666 |
|||
|
|
$ 4,429 |
$ 2,104 |
$ 10,498 |
$ 24,713 |
|||
|
Interest expense |
253 |
320 |
1,095 |
2,857 |
|||
|
Income tax expense |
356 |
51 |
649 |
149 |
|||
|
Depreciation and amortization |
229 |
204 |
891 |
734 |
|||
|
|
$ 5,267 |
$ 2,679 |
$ 13,133 |
$ 28,453 |
|||
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Stock compensation expense |
451 |
307 |
1,366 |
(268) |
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Severance and retirement |
7 |
10 |
39 |
(17) |
|||
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Contingent liability revaluation |
117 |
(143) |
71 |
(527) |
|||
|
Gain on disposal of assets |
(90) |
— |
(124) |
(38) |
|||
|
PPP loan forgiveness |
— |
— |
— |
(4,522) |
|||
|
Contract Consideration Convertible Notes Payable revaluation adjustment |
— |
— |
— |
(29,969) |
|||
|
Amortization of contract asset |
1,271 |
1,368 |
5,612 |
5,033 |
|||
|
Non-Recurring professional fees |
— |
(269) |
230 |
3,343 |
|||
|
|
$ 7,023 |
$ 3,952 |
$ 20,327 |
$ 1,488 |
|||
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(1) |
Management believes that adjusted gross profit, EBITDA and adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023, are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the income and 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 financial and operational goals, excluding certain non-cash or non-recurring items. |
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SOURCE Flotek Industries, Inc.
