Flotek Industries (FTK) Q4 2006 earnings summary

Executive summary

• Diversified supplier of drilling and production products and services to energy and mining markets, with core businesses in specialty chemicals, logistics, drilling tools and production tools.

• 2006 growth reflected organic expansion and strategic acquisitions, with stronger domestic reach and the start of international marketing activity.

Financial highlights

• Revenue was $100,642 thousand in 2006, up from $52,869 thousand in 2005; income from operations was $18,853 thousand, versus $10,114 thousand.

• Net income was $11,350 thousand in 2006, compared with $7,720 thousand in 2005; diluted EPS was $1.22, versus $0.94.

Outlook and guidance

• Management anticipated higher foreign chemical sales following the opening of a Netherlands facility serving the North Sea and European mainland.

• Potential growth was expected to make Artificial Lift one of the fastest-growing segments in revenue and profits; management also planned to triple the R&D budget.