Flotek Industries, Inc. (FTK) saw its loss widen to $13.92 million, or $0.24 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.38 million, or $0.03 a share.
Revenue during the quarter grew 10.56 percent to $70.60 million from $63.86 million in the previous year period. Gross margin for the quarter contracted 622 basis points over the previous year period to 32.31 percent. Operating margin for the quarter stood at negative 7.90 percent as compared to a positive 2.95 percent for the previous year period.
Operating loss for the quarter was $5.58 million, compared with an operating income of $1.89 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.99 million compared with $4.11 million in the prior year period. At the same time, adjusted EBITDA margin improved 771 basis points in the quarter to 14.16 percent from 6.44 percent in the last year period.
"The demand for Flotek's suite of consumer and industrial chemistry products and our clients' trust in our CnF technology led to a stronger than expected fourth quarter," said John Chisholm, Flotek's chairman, president and chief executive officer. "With numerous shale oil producers and oilfield service suppliers now forecasting a low double-digit growth rate in 2017, Flotek is well positioned to capture opportunities through existing and prospective drillers seeking to improve their well output."
Operating cash flow drops significantly
Flotek Industries, Inc. has generated cash of $2.05 million from operating activities during the year, down 91.94 percent or $23.42 million, when compared with the last year.
The company has spent $22.28 million cash to meet investing activities during the year as against cash outgo of $17 million in the last year. It has incurred net capital expenditure of $13.50 million on net basis during the year, down 14.42 percent or $2.27 million from year ago.
Cash flow from financing activities was $22.85 million for the year as against cash outgo of $7.35 million in the last year period.
Cash and cash equivalents stood at $4.82 million as on Dec. 31, 2016, up 118.43 percent or $2.62 million from $2.21 million on Dec. 31, 2015.
Working capital increases
Flotek Industries, Inc. has recorded an increase in the working capital over the last year. It stood at $97.62 million as at Dec. 31, 2016, up 15.20 percent or $12.88 million from $84.74 million on Dec. 31, 2015. Current ratio was at 2.07 as on Dec. 31, 2016, down from 2.26 on Dec. 31, 2015.
Debt comes down marginally
Flotek Industries, Inc. has recorded a decline in total debt over the last one year. It stood at $48.40 million as on Dec. 31, 2016, down 4.25 percent or $2.15 million from $50.55 million on Dec. 31, 2015. Total debt was 12.52 percent of total assets as on Dec. 31, 2016, compared with 12.54 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.17 as on Dec. 31, 2016, when compared with the last year.
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