Flotek Industries, Inc. · NYSE:FTK
Flotek Industries — Q4 2022 Earnings Presentation
15 slides from Flotek Industries's earnings presentation, March 2023
Slide 1: Investor Summary
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: 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: 152 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: Investment Considerations
Investment Considerations FTK is a simple 2023 investment story • New leadership team • Rapid revenue growth • Transition to positive Adjusted EBITDA • Improving balance sheet • Capital light business model • Full cycle resilience Investor Presentation / March 2023 // 5
Slide 6: Flotek Revenue: Strong Growth Continues into 2023
Flotek Revenue: Strong Growth Continues into 2023 Managing for Rapid Growth • Q4 2022 revenue up 6% QoQ, 2x YoY Quarterly Consolidated Revenue (000’s) • Average frac fleets serviced up 10x YoY $60,000 • 5X increase in volume of custom $50,000 chemistry solutions provided YoY $40,000 • Zero lost time
Slide 7: 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 6 quarters provides evidence of progress toward positive margins • Revenue optimization • Increased delivery of customized chemistry and Quarte
Slide 8: Improving Balance Sheet
Improving Balance Sheet Balance sheet and liquidity to weather the full cycle 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 i
Slide 9: 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 / March 2023 //
Slide 10: Appendix
\ Appendix // NYSE: FTK
Slide 11: Recent Financials
Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands, except share data) 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 from
Slide 12: Unaudited Condensed Consolidated Balance Sheets
Unaudited Condensed Consolidated Balance Sheets (in thousands, except share data) 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 December
Slide 13: Unaudited Condensed Consolidated Statements of Cash Flows
Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) 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 consideratio
Slide 14: 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) 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 1,202
Slide 15: Investor Contacts
Investor Contacts Bernie Colson SVP – Corporate Development & Sustainability Bond Clement Chief Financial Officer [email protected] (713) 726-5322 // NYSE: FTK