Flotek Industries Announces Select Second Quarter Preliminary Results, Release Of Florida Chemical Company Pro Forma Financial Reports, Additions To Leadership Team And Broadcast Of Flotek's Florida Investor Presentation
HOUSTON, July 29, 2013 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced select preliminary results for the three months ended June 30, 2013. The Company expects revenue for the three months ended June 30, 2013 to exceed $93 million. Excluding revenue as a result of the recently-announced Florida Chemical Company acquisition, Flotek revenue should exceed $79 million. "We are very pleased with our revenue production in the second quarter as it represents near-record achievement for Flotek," said John Chisholm, Chairman, President and Chief Executive Officer of Flotek. "There is little question that Florida Chemical is already adding positive momentum for Flotek. However, even before accounting for the Florida Chemical boost, quarterly sales should be at near-record levels for the Company." The Company expects Chemical Technologies segment revenues to exceed $47.5 million; Drilling Technologies revenues to exceed $29.5 million and Artificial Lift Technologies revenues to be approximately $3.4 million. All segment revenues should post sequential improvements with the exception of Artificial Lift. Artificial Lift is likely to be slightly below first quarter comparisons, a result of a significant international sale posted in the first quarter. A new segment, Non-Energy Chemical Technologies ("NECT") - resulting from the acquisition of Florida Chemical Company – should add revenue in excess of $12.5 million for the quarter. Flotek recorded revenue from Florida Chemical only for May and June during the quarter. Consolidated gross margins for the second quarter should exceed 40%. The Company expects second quarter Chemical Technologies segment gross margins to exceed 43%; Drilling Technologies margins to exceed 41%; and Artificial Lift Technologies margins to be greater than 25%. Similar to revenues, we expect segment gross margins – with the exception of Artificial Lift – to show sequential improvement. Gross margin for NECT should be approximately 29%.