Flotek Industries, Inc (FTK) saw its loss narrow to $11.98 million, or $0.20 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $30.18 million, or $0.55 a share. Revenue during the quarter grew 25.30 percent to $79.95 million from $63.81 million in the previous year period. Gross margin for the quarter contracted 259 basis points over the previous year period to 34.70 percent. Operating margin for the quarter stood at negative 0.78 percent as compared to a positive 0.58 percent for the previous year period.
Operating loss for the quarter was $0.62 million, compared with an operating income of $0.37 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.56 million compared with $2.61 million in the prior year period. At the same time, adjusted EBITDA margin contracted 89 basis points in the quarter to 3.21 percent from 4.09 percent in the last year period.
John Chisholm, Flotek’s Chairman, President and Chief Executive Officer commented, “As anticipated, overall industry completion activity continued to improve during the quarter, and Flotek is executing on strategic initiatives and organic growth opportunities. We continue to experience increasing demand, above the industry recovery, for our patented CnF® technology.
Operating cash flow remains negative
Flotek Industries, Inc has spent $2.56 million cash to meet operating activities during the quarter as against cash outgo of $6.38 million in the last year period. The company has spent $1.80 million cash to meet investing activities during the quarter as against cash outgo of $3.92 million in the last year period. It has incurred net capital expenditure of $1.80 million on net basis during the quarter, down 50.72 percent or $1.86 million from year ago period.
Cash flow from financing activities was $1.34 million for the quarter, down 87.29 percent or $9.18 million, when compared with the last year period.
Cash and cash equivalents stood at $1.83 million as on Mar. 31, 2017, down 26.37 percent or $0.65 million from $2.48 million on Mar. 31, 2016.
Working capital increases
Flotek Industries, Inc has recorded an increase in the working capital over the last year. It stood at $85.53 million as at Mar. 31, 2017, up 14.94 percent or $11.12 million from $74.41 million on Mar. 31, 2016. Current ratio was at 1.94 as on Mar. 31, 2017, up from 1.93 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 90 days for the quarter from 220 days for the last year period. Days sales outstanding were almost stable at 81 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 56 days for the quarter compared with 189 days for the previous year period. At the same time, days payable outstanding went down to 47 days for the quarter from 51 for the same period last year.
Debt comes down
Flotek Industries, Inc has recorded a decline in total debt over the last one year. It stood at $49.69 million as on Mar. 31, 2017, down 18.86 percent or $11.55 million from $61.24 million on Mar. 31, 2016. Total debt was 13.18 percent of total assets as on Mar. 31, 2017, compared with 16.80 percent on Mar. 31, 2016. Debt to equity ratio was at 0.18 as on Mar. 31, 2017, down from 0.23 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
