Flotek Industries Provides First Quarter Financial & Operational Update, Provides Details Of Investor Presentation

HOUSTON, April 16, 2012 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) provided select financial and operational data today in conjunction with the Company's presentation at the Independent Petroleum Association of America's ("IPAA") New York Oil & Gas Investment Symposium.

Financial and Operational Update

In a presentation this morning at the IPAA New York Oil & Gas Symposium and posted on Flotek's website, www.flotekind.com, Flotek provided the following financial information.

While Flotek has not completed its final review of first quarter, 2012 results, the Company believes that revenue for the quarter ending March 31, 2012 should exceed $78 million. Strong performance in Chemical and Logistics and Drilling Tools segments led the growth in revenue. In comparison, revenue in the first quarter of 2011 was $52.9 million.

Flotek also announced that as of March 31, 2012, the Company had a cash balance of approximately $13.3 million. During the quarter the Company made its regular semi-annual interest payment on its convertible debt of approximately $1.85 million. In addition, as announced in January, the Company repurchased $36 million of its 5.25% Senior Secured Convertible Notes due in 2028. The Company was also a cash taxpayer in the first quarter, making payments of approximately $4.0 million for federal and state income taxes.

"We are pleased with our results in the first quarter of 2012," said Flotek Chairman, Chief Executive Officer and President John Chisholm. "While a number of oilfield service companies have expressed caution regarding activity and results during the first three months of the year, Flotek continued to see opportunities for growth and additional market penetration. While a challenging natural gas market has had an impact on certain products, Flotek's proprietary chemistries continue to gain market share among liquids producers. In addition, our drilling products division continues to post solid results, especially through its Teledrift and Cavo drilling motors divisions."

Company margins remain solid. First quarter, 2012 enterprise-wide gross margins are expected to exceed 42%, compared to gross margins of 40.9% for the year ending December 31, 2011. Gross margins in the Chemicals and Logistics segment remain solid with segment gross margins expected to exceed 43% in the first quarter of 2012, compared to 40% for the fourth quarter and approximately 41% for the full-year, 2011.

"Flotek's re-focused chemical marketing program is beginning to provide results," said Chisholm. "First quarter invoiced sales of our patented Complex Nanofluids ("CnF") chemistries were more than 73% above first quarter, 2011 levels and over 35% above fourth quarter, 2011 levels. While Canadian break-up typically impacts second-quarter chemical revenues, we believe this trend should continue through the balance of 2012."

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