Revenue during the quarter dropped 16.22 percent to $73.68 million from $87.94 million in the previous year period. Gross margin for the quarter contracted 108 basis points over the previous year period to 34.43 percent. Operating margin for the quarter stood at negative 5.83 percent as compared to a positive 3.16 percent for the previous year period.

Operating loss for the quarter was $4.30 million, compared with an operating income of $2.78 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $0.80 million compared with $7.28 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 1.08 percent for the quarter compared to 8.28 percent in the last year period.

"The ongoing search for stability in oilfield activity continued in the third quarter as overall drilling and completion activity remained choppy in the July through September period," said John Chisholm, Floteks chairman, president and chief executive officer. "While we saw a slow but steady improvement in business from the beginning to the end of the quarter, we remain guarded in our assessment of overall oilfield activity. That said, we continued to hold our own in energy chemistry with new opportunities which allowed us to hold our core CnF® business steady even as a large client experienced a transient decrease in completion activity. Moreover, we did experience modest improvement in our drilling technologies business, the result of continued expense rationalization, moderate market share growth in our U.S. operations and ongoing international opportunities."

The company has spent $18.68 million cash to meet investing activities during the nine month period as against cash outgo of $9.54 million in the last year period. It has incurred net capital expenditure of $10.82 million on net basis during the nine month period, up 30.52 percent or $2.53 million from year ago period.

Cash flow from financing activities was $20.80 million for the nine month period as against cash outgo of $6 million in the last year period.

Cash and cash equivalents stood at $3.47 million as on Sep. 30, 2016, up 15.88 percent or $0.48 million from $3 million on Sep. 30, 2015.

Working capital decreases marginally
Flotek Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $88.14 million as at Sep. 30, 2016, down 2.03 percent or $1.83 million from $89.97 million on Sep. 30, 2015. Current ratio was at 2.21 as on Sep. 30, 2016, down from 2.44 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 100 days for the quarter from 155 days for the last year period. Days sales outstanding went up to 81 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 70 days for the quarter compared with 137 days for the previous year period. At the same time, days payable outstanding went up to 51 days for the quarter from 40 for the same period last year.