Tag: FTK

On February 17, Flotek Industries Inc. (FTK) announced its agreement with ProFrac Holdings, LLC, for the expansion of its previously-announced contract. Consequently, the stock saw an upsurge in the following trading sessions on Thursday.

During the regular trading session, the stock gained a huge 70.20% at its closing price of $1.35 per share. The day’s volume remained 719% of its 65-day average at 18.89 million shares. FTK stock continued to rise in the after-hours to add a further 14.07% at a volume of 2.92 million shares. Hence, the stock was trading at $1.54 per share in the after-hours on Thursday.

The technology-driven, specialty chemistry and data company, Flotek Industries Inc. has a market capitalization of $63.26 million with 79.75 million shares outstanding. 2022 has so far proved very fruitful for the stock as it has added 19.47% year to date. In the past five days alone FTK increased by 57.43%, while it lost 40.00% last year.

FTK’s Initial Agreement with ProFrac

On February 02, the company announced its long-term agreement with ProFrac Services, LLC for its full portfolio of sustainable chemistry solutions.

According to the contract, FTK was supposed to provide full downhole chemistry solutions for three years. The immediate expected contracted backlog of revenue was over $230 million.

Expansion of the Agreement

On February 17, the company announced an agreement for the expansion of the contract. The new expansion is expected to increase revenue backlog by at least $1 billion after closing and as much as $2.1 billion over the next decade.

Terms of Agreement

1. FTK will issue convertible notes to ProFrac with a maturity of one year and amount based on expansion size.
2. The company will also grant ProFrac the right for the appointment of two members to its board of directors.

Additionally, the conversion price of the notes is $1.088125 per share before maturity and $0.8705 per share at maturity. Moreover, the transaction would close in Q2 2022 as per certain required conditions.

FTK’s Financial Highlights

In Q3 2021, the company had consolidated revenues of $10.2 million with a decline of 20.1% YOY.

Furthermore, the net income in Q3 2021 was $0.5 million or $0.01 per basic and diluted share. This compares to a loss in the previous quarter.

In addition, the company ended the quarter with cash and cash equivalents of $20.5 million and $4.8 million on PPP loans outstanding. Due to the application for forgiveness for its PPP loans, the current portion of long-term debt has been reduced to $1.3 million as of September 30, 2021.

Flotek Industries, Inc. (FTK) is an innovative leading technology-driven, green chemistry tech and data analytics company. It decreases the environmental impact of energy on different components of the ecosystem. The company operates in two segments. The Chemistry portion develops high-quality disinfecting and cleaning products for consumer use. The data segment provides its consumers with real-time data about different products.

The price of FTK stock during the regular trading on December 27, 2021, was $0.56 with a significant decline of 8.59%. At last check in the aftermarket the stock was tremendously surged by 49.29%.

FTK: Events and Happenings

On December 27, 2021, FTK had received an unsolicited show of interest for a possible deal of the Company wholly or partly. Company’s top management had involved Piper Sandler & Co. as a financial advisor to sort out with the assessing process.

On December 10, 2021, FTK reported about receipt of notice from the New York Stock Exchange. The notice states that the average closing price of the FTK’s shares of common stock was less than $1.00 per share. The price was lower than the obligation for listing on the NYSE.

On November 29, 2021, FTK reported that the top management of the company represented in Virtual Noble Capital Markets’ Road Show Series. The event was held on December 1, 2021.

FTK: Key Financials

On November 8, 2021, FTK reported its third quarter results for the three months ended September 30, 2021. Some of the main highlights are as follows

Revenue

Revenue generated by the company for third quarter 2021 was $10.2 million as compared to $12.7 million for the third quarter 2020. The revenue decreased 20.1% from last year.

Net Income/Loss per Share

Net income per basic and diluted share for the third quarter 2021 was $0.5 million or $0.01 per share, as compared to a net loss of $45.2 million, or $0.66 per share for the same quarter of 2020.

Total Current Assets

Total current assets reported for Q3 2021 were $46.3 million.

FTK: CEO Comments

John W. Gibson, CEO of FTK told that revenues for the third quarter surged as compared to the previous quarter. He further added that the customer growth also improved by 22% sequentially.

On October 27, 2021, FTK’s subsidiary reported about ATEX/IECEx certified online analyzers. The Verax ISX/IMX™ analyzers can withstand poor environmental conditions. They can also provide real-time data regarding different aspects. On October 15, 2021, FTK reported about Automated Interface Detection Algorithm (AIDA), a near infrared real-time analyzer. It provides real-time exposure of interfaces in liquid pipeline.

Conclusion

FTK stock is on a declining trend from the past week as 28% reduction was observed. But the aftermarket showed promising results for the investors and stockholders. The major leap in aftermarket is possibly due to company’s announcement of receipt of interest. The analysts are optimistic about the company that it will regain its lost momentum.