Flotek (FTK) Issues Preliminary Q4, FY11 Revs Outlook; Tops Views
FTK Hot Sheet
Revenue Growth %: +49.7%Financial Fact:
Interest expense: -2.25M
Today's EPS Names:
TARO, BRLI, TLB, More
Flotek Industries, Inc. (NYSE: FTK) expects revenues for 2011 of approximately $258 million, a greater than 75% increase over comparable 2010 revenues of approximately $147 million. The Street sees revs of $259.02 million.
Flotek experienced strong revenue growth in both the chemical and drilling technologies segments. Revenues in the Company's artificial lift segment were relatively flat in 2011, when compared to 2010, largely a result of relatively weak natural gas prices throughout the year.
For the fourth quarter, 2011 revenues should be greater than $74.5 million, in-line with third quarter top-line results as previously suggested. The general slowdown generally experienced during holiday periods was offset by Flotek's improved market share as well as continued strength in overall oilfield activity. The Street sees revs of $76.03 million.
The Company also projects that 2011 gross margins should exceed 40%, compared to 36% annualized gross margins in 2010. Fourth quarter, 2011 gross margins are expected to be approximately 42% compared to approximately 37% in the fourth quarter of 2010 and approximately 41% in the third quarter of 2011.
Operating income as a percentage of revenue for the fourth quarter of 2011 is expected to exceed 20% and for the calendar year 2011 is expected to be greater than 18%.
During the fourth quarter the Company announced the repurchase of approximately $36 million of second lien convertible notes, the repurchase was completed on January 6, 2012. After the repurchase Flotek's outstanding debt, excluding capital leases, was $70.5 million, comprised entirely of unsecured convertible notes. In addition, the Company has a $35 million revolving credit facility commitment that is currently undrawn. As of January 30, 2012 the Company had approximately $8 million of cash.
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Flotek experienced strong revenue growth in both the chemical and drilling technologies segments. Revenues in the Company's artificial lift segment were relatively flat in 2011, when compared to 2010, largely a result of relatively weak natural gas prices throughout the year.
For the fourth quarter, 2011 revenues should be greater than $74.5 million, in-line with third quarter top-line results as previously suggested. The general slowdown generally experienced during holiday periods was offset by Flotek's improved market share as well as continued strength in overall oilfield activity. The Street sees revs of $76.03 million.
The Company also projects that 2011 gross margins should exceed 40%, compared to 36% annualized gross margins in 2010. Fourth quarter, 2011 gross margins are expected to be approximately 42% compared to approximately 37% in the fourth quarter of 2010 and approximately 41% in the third quarter of 2011.
Operating income as a percentage of revenue for the fourth quarter of 2011 is expected to exceed 20% and for the calendar year 2011 is expected to be greater than 18%.
During the fourth quarter the Company announced the repurchase of approximately $36 million of second lien convertible notes, the repurchase was completed on January 6, 2012. After the repurchase Flotek's outstanding debt, excluding capital leases, was $70.5 million, comprised entirely of unsecured convertible notes. In addition, the Company has a $35 million revolving credit facility commitment that is currently undrawn. As of January 30, 2012 the Company had approximately $8 million of cash.
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