Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q1 2023 Earnings Presentation
18 slides from Flotek Industries's earnings presentation, May 9, 2023
Slide 1: Investor Summary
Investor Summary May 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: Company Overview
Company Overview FLOTEK INDUSTRIES (FTK) Technology-driven chemistry and data analytics company Founded: 1985 Marlow, OK Raceland, LA Houston, TX (HQ) Monahans, TX Employees: 143 Abu Dhabi, Countries with Clients: 15+ UAE Headquarters Corporate Headquarters: Houston Offices Chemical Technologies Dat
Slide 4: Strategic Priorities
Strategic Priorities Capital-light Growth Flawless Execution No new capital required to support Exemplary safety and service delivery robust growth Sustainable Revenue Improving Balance Sheet 10-year contract with guaranteed Low debt balance positions company minimum of $2B+ to prosper through the c
Slide 5: Key Investment Considerations
Key Investment Considerations FTK is a simple 2023 investment story • New leadership team • Rapid revenue growth • Transitioning to positive Adjusted EBITDA* • Improving balance sheet • Capital light business model • Full cycle resilience * Adjusted EBITDA is a non-GAAP measure. See the Appendix in
Slide 6: First Quarter 2023 Highlights
Expect Full Year 2023 Revenue of $210MM - $230MM and Adjusted Gross Profit* Margin of 8% - 10% First Quarter 2023 Highlights • Grew revenue 273% from Q1 2022 • Strong margin improvement results in positive gross profit in Q1 2023 that was 2X higher sequentially and 5x YoY • Mid-point of guidance pro
Slide 7: Flotek Revenue: Strong Growth Continues into 2023
Flotek Revenue: Strong Growth Continues into 2023 Managing for Rapid Growth • Q1 2023 flat sequentially, up 2.7x YoY Quarterly Consolidated Revenue (000’s) • Expect $210MM to $230MM for FY 2023 versus $136MM in 2022 $50,000 • Increased market share to 12% of active $45,000 U.S. frac fleet from 2% in
Slide 8: Data Analytics: Rapid Improvement in the Business
Data Analytics: Rapid Improvement in the Business Strong Growth in Revenue • Q1 2023 revenue up 24% sequentially and 135% YoY Quarterly Consolidated Revenue (MM) • Q1 2023 equated to 45% of full year 2022 $3.0 • Expect H1 2023 revenue will exceed full year 2022 $2.5 • In Q1 2023 received first proto
Slide 9: Cost Control: Targeted Efforts are Paying Off in 2023
Cost Control: Targeted Efforts are Paying Off in 2023 Quickly Enhancing Margins Quarterly Consolidated Gross Profit (Loss) • January 1, 2023 modification of supply agreement (000’s) enhances gross profit $2,000 $1,500 • Q1 2023 saw 4% improvement in COGS-Materials resulting in $3MM of savings $1,000
Slide 10: Definitive Path to Positive Adjusted EBITDA
Definitive Path to Positive Adjusted EBITDA Revenue Growth + Expense Management = Positive Adjusted EBITDA* Consistently improving Adjusted EBITDA over past 7 quarters provides evidence of progress toward positive margins • Revenue optimization • Increased delivery of customized chemistry and Quarte
Slide 11: Improving Balance Sheet
Improving Balance Sheet Balance sheet and liquidity to weather the full cycle Recent Developments • Continuing to evaluate asset-based borrowing options • Recently received four non-binding proposals; evaluating terms and conditions • January 2023 – Received confirmation of forgiveness of $4.4MM of
Slide 12: Capital Light Growth
Capital Light Growth Low Asset Utilization Rate Means Minimal Capex Required For 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 Investor Presentation / May 2023 // 12
Slide 13: Appendix
\ Appendix // NYSE: FTK
Slide 14: Recent Financials
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands, except share data) // 14
Slide 15: Unaudited Condensed Consolidated Balance Sheets
Unaudited Condensed Consolidated Balance Sheets (in thousands, except share data) // 15
Slide 16: Unaudited Condensed Consolidated Statements of Cash Flows
Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) // 16
Slide 17: Unaudited 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) // 17
Slide 18: Investor Contact
Investor Contact Bond Clement Chief Financial Officer ir@flotekind.com (713) 726-5322 // NYSE: FTK