HOUSTON, Jan. 14, 2014 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company') (NYSE: FTK) today announced preliminary revenue and gross margin results for Fourth Quarter, 2013 and discussed the current status of the Florida citrus market.
While the Company is still completing final year-end accounting processes, Flotek believes that revenues for the three-months ended December 31, 2013 should exceed $100 million. Enterprise-wide gross margins should be approximately 39%. Margins in the Energy Chemical Technologies segment continued to be strong; as expected, margins in the Drilling Technologies segment were seasonally lower due to holidays and basin-specific, weather-related activity moderation.
"For the first time in Flotek's history, revenue in the fourth quarter of 2013 should exceed $100 million, a key milestone for our firm," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "Even with the impact of a slow start in Colorado, an unusual November cold snap in West Texas and the Thanksgiving and Christmas holidays, Flotek's team was focused and delivered our best sales quarter to date, an accomplishment that shows the commitment of my colleagues. And, with margins remaining strong – especially in our Energy Chemical Technologies segment – Flotek exits 2013 with momentum to begin 2014, a year we believe will continue our journey in making a difference for our clients with cutting edge energy technologies."
Flotek plans to file its annual report on Form 10-K with the Securities and Exchange Commission in late February, the exact date expected to be announced in late January.Citrus Market Update In recent weeks a plethora of news reports have reported on challenges facing the Florida citrus industry including the recent winter weather, causing colder-than-normal temperatures in central and southern Florida as well as potential damage from Citrus Greening. "The recent 'polar vortex' that resulted in frigid temperatures into the deep South had no material impact on the Florida orange crop or our business," said Josh Snively, Flotek's Executive Vice President and President of the Company's Florida Chemical subsidiary. "For the crop to be impacted, temperatures need to drop below 28 degrees (Fahrenheit) and hold at those levels for a minimum of four hours. We didn't get close to those levels." "Even when citrus groves are impacted by freezing temperatures, damaged fruit can still be processed, yielding less juice but still providing oil to meet Florida Chemical's supply needs," added Snively.