Flotek Industries Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Flotek Industries Inc. filed its Q1 2024 10-Q report detailing financial performance and position.</b>

AI Summary

FLOTEK INDUSTRIES INC/CN/ (FTK) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Flotek Industries Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business is in Miscellaneous Chemical Products. The filing includes financial data for periods ending March 31, 2024, December 31, 2023, and March 31, 2023. Key financial statement components like common stock, treasury stock, additional paid-in capital, accumulated other comprehensive income, and retained earnings are detailed for these periods.

Why It Matters

For investors and stakeholders tracking FLOTEK INDUSTRIES INC/CN/, this filing contains several important signals. This 10-Q provides investors with an updated view of Flotek's financial health and operational performance for the first quarter of 2024, crucial for investment decisions. The detailed financial data allows for comparison with previous periods, enabling analysis of trends and the company's strategic execution.

Risk Assessment

Risk Level: medium — FLOTEK INDUSTRIES INC/CN/ shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains routine financial information. However, the absence of specific performance metrics like revenue or net income in the provided snippet prevents a deeper risk assessment.

Analyst Insight

Monitor future filings for specific revenue, profitability, and debt-to-equity ratio figures to assess the company's financial trajectory.

Key Numbers

• 2024-03-31 — Period End Date (Conformed period of report)
• 2024-05-09 — Filing Date (Filed as of date)
• 2023-12-31 — Previous Period End Date (Balance sheet date)
• 2023-03-31 — Prior Year Period End Date (Balance sheet date)

Key Players & Entities

• FLOTEK INDUSTRIES INC/CN/ (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-09 (date) — Filed as of date
• 2890 (industry_code) — Standard Industrial Classification
• DE (state) — State of incorporation
• 7138499911 (phone) — Business phone
• FTK (ticker) — Ticker symbol

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The company operates within the chemical products industry, subject to various environmental, health, and safety regulations.
• Market Conditions [medium — market]: Performance may be affected by fluctuations in the oil and gas industry, a key market for its products and services.
• Operational Risks [medium — operational]: Risks related to the manufacturing and delivery of chemical solutions, including supply chain disruptions or production issues.

Industry Context

Flotek Industries operates in the Miscellaneous Chemical Products sector, often serving industries like oil and gas with specialized chemical solutions.

Regulatory Implications

The company is subject to standard SEC reporting requirements for public companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the detailed financial statements in the full 10-Q for revenue, net income, and cash flow.
2. Compare the current quarter's financial data against historical trends and industry benchmarks.
3. Review the 'Risk Factors' section for any new or evolving risks that could impact the company's future performance.

Year-Over-Year Comparison

This filing is the Q1 2024 10-Q, following the Q4 2023 10-K and previous quarterly reports. Specific comparative data between this and the prior period's 10-Q is not detailed in the provided text.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value FTK New York Stock Exchange

Filing Documents

• ftk-20240331.htm (10-Q) — 1215KB
• ex311_10q1x24.htm (EX-31.1) — 8KB
• ex312_10q1x24.htm (EX-31.2) — 8KB
• ex321_10q1x24.htm (EX-32.1) — 4KB
• ex322_10q1x24.htm (EX-32.2) — 4KB
• 0000928054-24-000053.txt (&nbsp;) — 8549KB
• ftk-20240331.xsd (EX-101.SCH) — 63KB
• ftk-20240331_cal.xml (EX-101.CAL) — 109KB
• ftk-20240331_def.xml (EX-101.DEF) — 360KB
• ftk-20240331_lab.xml (EX-101.LAB) — 672KB
• ftk-20240331_pre.xml (EX-101.PRE) — 547KB
• ftk-20240331_htm.xml (XML) — 1330KB

Forward-Looking Statements 3

Forward-Looking Statements 3

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Unaudited Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 4 Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 7 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 8 Notes to Unaudited Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1. L egal Proceedings 39

Risk Factors 39

Item 1A Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 3. Defaults Upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 40

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS In this Quarterly Report on Form 10-Q (this "Quarterly Report"), unless the context otherwise requires, the terms "Flotek," the "Company," "we," "us" and "our" refer to Flotek Industries, Inc. and its wholly-owned subsidiaries. This Quarterly Report on Form 10-Q, and in particular, Part I, Item 2 — "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent the current assumptions and beliefs regarding future events of Flotek, many of which, by their nature, are inherently uncertain and outside the Company's control. Such statements include estimates, projections, and statements related to the Company's business plan, objectives, expected operating results, and assumptions upon which those statements are based. The forward-looking statements contained in this Quarterly Report are based on information available as of the date of this Quarterly Report. The forward-looking statements relate to future industry trends and economic conditions, forecast performance or results of current and future initiatives and the outcome of contingencies and other uncertainties that may have a significant impact on the Company's business, future operating results and liquidity. These forward-looking statements generally are identified by words including but not limited to, "anticipate," "believe," "estimate," "commit," "budget," "aim," "potential," "schedule," "continue," "intend," "expect," "plan," "forecast," "target," "think," "likely," "project" and similar expressions, or future-tense or conditional constructions such as "will," "may," "should," "could" and "would," or the negative thereof or other variations thereon or comparable terminology. The Company cautions that these statements are merely prediction

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FLOTEK INDUSTRIES INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 5,219 $ 5,851 Restricted cash 100 102 Accounts receivable, net of allowance for credit losses of $ 374 and $ 745 at March 31, 2024 and December 31, 2023, respectively 10,718 13,687 Accounts receivable, related party, net of allowance for credit losses of $ 0 at each of March 31, 2024 and December 31, 2023 38,655 34,569 Inventories, net 13,871 12,838 Other current assets 2,686 3,564 Current contract assets 7,019 5,836 Total current assets 78,268 76,447 Long-term contract assets 66,369 68,820 Property and equipment, net 5,061 5,129 Operating lease right-of-use assets 4,336 5,030 Deferred tax assets, net 91 300 Other long-term assets 1,725 1,787 TOTAL ASSETS $ 155,850 $ 157,513 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 35,952 $ 31,705 Accrued liabilities 3,365 5,890 Income taxes payable 78 45 Current portion of operating lease liabilities 2,083 2,449 Current portion of finance lease liabilities 13 22 Asset-based loan 3,111 7,492 Current portion of long-term debt 179 179 Total current liabilities 44,781 47,782 Deferred revenue, long-term 35 35 Long-term operating lease liabilities 7,121 7,676 Long-term debt 15 60 TOTAL LIABILITIES 51,952 55,553 Stockholders' equity: Preferred stock, $ 0.0001 par value, 100,000 shares authorized; no shares issued and outstanding — — Common stock, $ 0.0001 par value, 240,000,000 shares authorized; 30,772,837 shares issued and 29,661,130 shares outstanding at March 31, 2024; 30,772,837 shares issued and 29,664,130 shares outstanding at December 31, 2023 (As adjusted, see Note 13) 3 3 Additional paid-in capital (As adjusted, see Note 13) 463,484 463,140 Accumulated other comprehensive income 169 127 Accumulated deficit ( 325,244 ) ( 326,806 )

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View this 10-Q filing on SEC EDGAR