Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q1 2021 Earnings Presentation
20 slides from Flotek Industries's earnings presentation, May 11, 2021
Slide 1: Investor Presentation First Quarter 2021
INVESTOR PRESENTATION First Quarter 2021 May 2021
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements set forth in this presentation 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 conditio
Slide 3: Meet the Flotek Leadership Team
Innovative and results-oriented management team Meet the Flotek Leadership Team 3 James Entrepreneurial culture with commitment to customer success Unrelenting focus on delivering shareholder value Enhanced Board of Directors with focus on governance John W. Gibson, Jr. | Chairman, President & CEO M
Slide 4: Flotek's Profile
SUMMARY METRICS NYSE: FTK Market Cap: $122.8 million as of 5/10/2021 (Bloomberg) Cash: $33.9 million Debt: $5.7 million* TTM Revenue: $45.5 million as of 03/31/2021 Portfolio of 164 patent assets and growing Flotek’s Profile 4 *The Company received a $4.8 million loan and JP3 received a $0.9 million
Slide 5: Chemistry As A Common Value-Creation Platform
5 Chemistry As A Common Value-Creation Platform A synergistic approach with chemistry at the core, utilizing the same assets, supply chain, logistics, R&D to unique buyers and markets – with the flexibility to deploy to most attractive market opportunities.
Slide 6: Driving ESG Solutions For Our Customers
6 Driving ESG Solutions For Our Customers CHEMISTRY TECHNOLOGIES • Driving operational efficiency • Minimizing the potential for discharge or spills • Applying real-time measurements for dosage efficiency • Designing treatment programs to minimize chemical waste • Utilizing less toxic and safer chem
Slide 7: Flotek's Business Segments
Chemistry Technologies Data Analytics Professional Chemistry Delivers high-performance cleaning and sanitizing products that meet the demands across a variety of consumer and industrial applications. Flotek’s Business Segments 7 Energy Chemistry Provides specialty chemicals and logistics solutions t
Slide 8: Building on Foundation Set in 2020 for Long-Term Success
We have adapted our business and created foundation to drive long-term strategy supported by greener solutions. Building on Foundation Set in 2020 for Long-Term Success 8 Diverse Portfolio offering Green Solutions • Enhanced our focus on ESG solutions by providing products and services with green be
Slide 9: Flotek Operations
9 Flotek Operations Global footprint with significant international opportunities across business segments. Flotek Operations Flotek Research
Slide 10: Differentiating through Research & Innovation
Differentiating through Research & Innovation 10 33% R&I square footage is dedicated to the interactive client experience 75% R&I personnel dedicated to direct client support 100% R&I time and effort dedicated to increasing value…now and in the future 164 patent assets Building Technical Partnership
Slide 11: Chemistry Technologies Segment: Energy Chemistry
Chemistry Technologies Segment: Energy Chemistry 11 • Despite the impacts of winter storm in February, the Company saw a rebound in its domestic business, up 56%, on a sequential basis. Internationally, the Company regained traction towards the end of the quarter, primarily due to purchasing delays
Slide 12: Chemistry Technologies Segment: Professional Chemistry
Chemistry Technologies Segment: Professional Chemistry Leverages Flotek’s existing specialty chemistries and diversifies business and revenue stream • Began initially as community support initiative. • Leveraging the same chemistries, facilities, capabilities as energy chemistries. • Launched FDA-qu
Slide 13: Products Made in the USA
PRODUCTS MADE IN THE USA M A R LOW, OK WA L L E R , TX 90,000 sqft warehouse (heated and ambient bulk storage tanks) 38,000 sqft warehouse (heated and ambient bulk storage tanks) Full liquid blending and QA/QC capabilities Liquid blending and QAQC capabilities 3M+ gal/mo. combined capacity* *Manufac
Slide 14: Wide Range of Applications across Full Stream
14 Wide Range of Applications across Full Stream Upstream • Realtime compositional and property analysis of crude oil, condensate, and associated gas for crude quality and gas energy value. • Well pad stabilization control for live crudes and condensates to meet vapor pressure requirements for safet
Slide 15: First Quarter 2021 Highlights
First Quarter 2021 Highlights 15 Financials • Consolidated revenue in the first quarter was down 2.8% versus fourth quarter of 2020 • Operating expenses in the first quarter declined by 39.6% versus first quarter of 2020 • Adjusted EBITDA was a loss of $6.6 million, narrowing from the fourth quarter
Slide 16: Investment Highlights
Investment Highlights Leading developer of specialty, performance chemistry Differentiated portfolio Strong R&D capabilities, world- class research & innovation center Attractive ESG value proposition and market dynamics Disciplined approach to growth and profitability Runway of growth international
Slide 17: Recent Financials
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands, except share data) 3/31/2021 3/31/2020 12/31/2020 Revenue $ 11,770 $ 19,416 $ 12,106 Costs and expenses: Operating expenses (excluding depreciation and amortization) 13,801 22,841 24,327 Corporate general and a
Slide 18: Balance Sheet
Balance Sheet March 31, 2021 December 31, 2020 ASSETS Current assets: Cash and cash equivalents 33,945 $ 38,660 Restricted cash 40 664 Accounts receivable, net of allowance for doubtful accounts of $1,320 and $1,316 at March 31, 2021 and December 31, 2020, respectively 11,522 11,764 Inventories, net
Slide 19: Cash Flow
Cash Flow 2021 2020 Cash flows from operating activities: Net loss $ (8,300) $ (63,967) Adjustments to reconcile net loss to net cash used in operating activities: Change in fair value of contingent consideration (335) - Depreciation and amortization 307 2,191 Provision for doubtful accounts - 597 P
Slide 20: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics GAAP Loss from Operations and Reconciliation to Adjusted EBITDA (Non-GAAP) 3/31/2021 3/31/2020 12/31/2020 Loss from Operations (GAAP) (8,300)$ (63,967)$ (17,681)$ Interest Expense 18 4 20 Interest Income (5) (269) (10) Income Tax Benefit (Expense) 6 (6,169) 102 Depreciatio