Flotek Industries (FTK) Q4 2007 earnings summary

Executive summary

• Record 2007 revenue of $158 million, up 57% YoY; net income reached $17 million, up 47%.

• Diluted EPS of $0.88 increased 44% YoY, slightly below initial guidance, which was revised in January 2008.

Financial highlights

• Revenue was $158.008 million in 2007; income from operations was $29.686 million.

• Net income was $17 million, up 47% YoY; diluted EPS was $0.88, up 44%.

Outlook and guidance

• Expected significant organic growth and continued acquisition opportunities, particularly for businesses adding technological content.

• International sales represented ~5% of business; plans called for aggressive expansion in 2008, targeting the Middle East, North Sea, Europe, Africa and Russia.

• Specialty chemical margins were expected to rise as sales mix shifted toward patented and proprietary products.