Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q4 2022 Earnings Presentation
15 slides from Flotek Industries's earnings presentation, Mar 21, 2023
Slide 1: Investor Summary March 2023
Investor Summary March 2023 // NYSE: FTK
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: Flotek Industries (FTK) Company Overview
FLOTEK INDUSTRIES (FTK) Technology-driven chemistry and data analytics company Founded: 1985 Employees: 152 Countries with Clients: 15+ Corporate Headquarters: Houston Company Overview Commercial and Industrial Chemistry Technologies Sustainable chemistry solutions to maximize customers value chain
Slide 4: Strategic Priorities
Strategic Priorities Flawless Execution Exemplary safety and service delivery Capital-light Growth No new capital required to support robust growth Environmental Leadership Focus on protecting people, land, air, and water Investor Presentation / March 2023 // 4 Sustainable Revenue 10-year contract w
Slide 5: Investment Considerations
Investment Considerations Investor Presentation / March 2023 // 5 • New leadership team • Rapid revenue growth • Transition to positive Adjusted EBITDA • Improving balance sheet • Capital light business model • Full cycle resilience FTK is a simple 2023 investment story
Slide 6: Flotek Revenue: Strong Growth Continues into 2023
Flotek Revenue: Strong Growth Continues into 2023 Managing for Rapid Growth Quarterly Consolidated Revenue (000’s) Investor Presentation / March 2023 // 6 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 2021A Q2 2021A Q3 2021A Q4 2021A Q1 2022A Q2 2022A Q3 2022A Q4 2022A • Q4 2022 revenue up 6
Slide 7: Definitive Path to Positive Adjusted EBITDA
Definitive Path to Positive Adjusted EBITDA Revenue Growth + Expense Management = Positive *Adjusted EBITDA Investor Presentation / March 2023 // 7 -80% -70% -60% -50% -40% -30% -20% -10% 0% Q1 2021A Q2 2021A Q3 2021A Q4 2021A Q1 2022A Q2 2022A Q3 2022A Q4 2022A Quarterly *Adjusted EBITDA/Revenue Co
Slide 8: Improving Balance Sheet
Improving Balance Sheet Recent Developments • Recently commenced a process to evaluate asset-based borrowing options • January 2023 – Received confirmation of forgiveness of $4.4MM of Flotek’s $4.8MM PPP loan ProFrac Equity Investment • ProFrac invested $19.5MM in Flotek pre-funded warrants • Purcha
Slide 9: Capital-light Growth
Capital-light Growth Marlow Liquid Blending Facility • Capacity ~ 60MM gallons/year • 35 bulk storage tanks: 755k gallons • Heated bulk storage: 195k gallons • Ambient bulk storage: 560k gallons Low Asset Utilization Rate Means Minimal Capex Required For Growth Investor Presentation / March 2023 //
Slide 10: Appendix
a Appendix // NYSE: FTK
Slide 11: Recent Financials: Statement of Operations
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands, except share data) // 11 Three Months Ended Twelve Months Ended 12/31/2022 12/31/2021 9/30/2022 12/31/2022 12/31/2021 Revenue: Revenue from external customers $ 15,940 $ 9,845 $ 15,206 $ 54,344 $ 39,627 Revenue
Slide 12: Unaudited Condensed Consolidated Balance Sheets
Unaudited Condensed Consolidated Balance Sheets (in thousands, except share data) // 12 December 31, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 12,290 $ 11,534 Restricted cash 100 1,790 Accounts receivable, net of allowance for doubtful accounts of $623 and $659 at Dec
Slide 13: Unaudited Condensed Consolidated Statements of Cash Flows
Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) // 13 Years ended December 31, 2022 2021 Cash flows from operating activities: Net loss $ (42,305) $ (30,526) Adjustments to reconcile net loss to net cash used in operating activities: Change in fair value of contingent consid
Slide 14: Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings
Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings (in thousands) // 14 Three Months Ended Twelve Months Ended 12/31/2022 12/31/2021 9/30/2022 12/31/2022 12/31/2021 Gross profit (loss) $ (2,074) $ (977) $ (1,842) $ (6,700) $ 3,256 Stock compensation expense 85 242 — 459
Slide 15: Investor Contacts
// NYSE: FTK Investor Contacts Bernie Colson SVP – Corporate Development & Sustainability Bond Clement Chief Financial Officer ir@flotekind.com (713) 726-5322