Flotek Industries Inc (FTK, Financial) filed Quarterly Report for the period ended 2010-06-30.
Flotek Industries Inc has a market cap of $39.4 million; its shares were traded at around $1.31 with and P/S ratio of 0.4.
Revenue for the six months ended June 30, 2010 was $59.5 million, a decrease of $4.6 million, or 7.2%, compared to $64.2 million for the same period in 2009. The unfavorable variance resulted from the Drilling and Artificial Lift segments. The unfavorable variance in Drilling was due to decreased revenue from international exports during the first quarter of 2010 as compared to the first quarter of 2009, and due to decreased product sales to the copper mining industry. Although the market price of copper has started to increase, the volume of mining activity historically lag behind price fluctuations. Artificial Lift experienced a period over period decrease in revenue as product sales revenue for 2010 has not yet fully recovered from the 2009 North American economic decline and the low price of natural gas, of which the negative impact was not fully realized in 2009 until the third quarter.
Selling, general and administrative costs are defined as costs that are not directly attributable to products sold or services rendered. Selling, general and administrative costs were $13.2 million and $23.4 million for the three and six months ended June 30, 2010, respectively, an increase of 46.0% and 21.0%, respectively, as compared to $9.1 million and $19.3 million for the same periods in 2009, respectively. The three and six month comparative period over period increase resulted from increased incentive stock compensation expense. Non-cash incentive stock compensation expense related to previously issued incentive equity awards granted to the Companys former President and CEO of the Company which vested upon his retirement and separation from the Company effective June 30, 2010, totaled approximately $3.0 million and was recognized during the second quarter of 2010.
Depreciation and amortization costs were $1.2 million for both the three months ended June 30, 2010 and 2009, respectively, and $2.4 million and $2.5 million for the six months ended June 30, 2010 and 2009, respectively.
Research and development (R&D) costs were $0.4 million for each of the three month periods ended June 30, 2010 and 2009, respectively, and $0.7 million and $0.8 million for the six months ended June 30, 2010 and 2009, respectively. The Company anticipates 2010 R&D spending levels to remain comparable with 2009 expenditure levels.
Interest expense was $5.0 million for the three months ended June 30, 2010 versus $3.9 million compared to the same period in 2009 and $9.1 million for the six months ended June 30, 2010 versus $7.8 million compared to the same period in 2009. The period over period increase for both the three and six months periods ended June 30, 2010 as compared to the same periods in 2009 was due to the refinancing of the Companys Senior Credit Facility and Convertible Debt (See Part I, Item 1. Financial Statements Note 9 Convertible Notes and Long-Term Debt of the condensed consolidated financial statements), as well as, a $0.4 million payment to Wells Fargo in settlement of the Companys interest rate swap in March 2010.
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Flotek Industries Inc has a market cap of $39.4 million; its shares were traded at around $1.31 with and P/S ratio of 0.4.
Highlight of Business Operations:
Revenue for the three months ended June 30, 2010 was $31.2 million, an increase of $7.7 million, or 32.6%, compared to $23.5 million for the same period in 2009. The increase in revenue is attributable to increased activity within both the Chemicals and Drilling segments. The Chemicals segment, period over period, increased primarily as a result of recovery of previously granted product and service price reductions and as a result of increased product demand due to increased well completion activity within the industry. The favorable period over period Drilling variance is due to increased rental activity resultant from a 32.2% increase in vertical rig count. The Companys increased international rental activity of approximately $0.7 million, and combined increase in domestic rental activity of approximately $1.3 million, also contributed to the period over period increase for the quarter ended June 30, 2010 as compared to the quarter ended June 30, 2009.Revenue for the six months ended June 30, 2010 was $59.5 million, a decrease of $4.6 million, or 7.2%, compared to $64.2 million for the same period in 2009. The unfavorable variance resulted from the Drilling and Artificial Lift segments. The unfavorable variance in Drilling was due to decreased revenue from international exports during the first quarter of 2010 as compared to the first quarter of 2009, and due to decreased product sales to the copper mining industry. Although the market price of copper has started to increase, the volume of mining activity historically lag behind price fluctuations. Artificial Lift experienced a period over period decrease in revenue as product sales revenue for 2010 has not yet fully recovered from the 2009 North American economic decline and the low price of natural gas, of which the negative impact was not fully realized in 2009 until the third quarter.
Selling, general and administrative costs are defined as costs that are not directly attributable to products sold or services rendered. Selling, general and administrative costs were $13.2 million and $23.4 million for the three and six months ended June 30, 2010, respectively, an increase of 46.0% and 21.0%, respectively, as compared to $9.1 million and $19.3 million for the same periods in 2009, respectively. The three and six month comparative period over period increase resulted from increased incentive stock compensation expense. Non-cash incentive stock compensation expense related to previously issued incentive equity awards granted to the Companys former President and CEO of the Company which vested upon his retirement and separation from the Company effective June 30, 2010, totaled approximately $3.0 million and was recognized during the second quarter of 2010.
Depreciation and amortization costs were $1.2 million for both the three months ended June 30, 2010 and 2009, respectively, and $2.4 million and $2.5 million for the six months ended June 30, 2010 and 2009, respectively.
Research and development (R&D) costs were $0.4 million for each of the three month periods ended June 30, 2010 and 2009, respectively, and $0.7 million and $0.8 million for the six months ended June 30, 2010 and 2009, respectively. The Company anticipates 2010 R&D spending levels to remain comparable with 2009 expenditure levels.
Interest expense was $5.0 million for the three months ended June 30, 2010 versus $3.9 million compared to the same period in 2009 and $9.1 million for the six months ended June 30, 2010 versus $7.8 million compared to the same period in 2009. The period over period increase for both the three and six months periods ended June 30, 2010 as compared to the same periods in 2009 was due to the refinancing of the Companys Senior Credit Facility and Convertible Debt (See Part I, Item 1. Financial Statements Note 9 Convertible Notes and Long-Term Debt of the condensed consolidated financial statements), as well as, a $0.4 million payment to Wells Fargo in settlement of the Companys interest rate swap in March 2010.
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