Flotek Industries (FTK) Q4 2012 earnings summary

Executive summary

• 2012 brought record revenue and margins, core-business growth, and a completed shift to a stronger balance sheet with a focus on oilfield technology.

• Shares rose ~22% in 2012 and nearly 810% over the three years ended Dec. 31, 2012.

Financial highlights

• Revenue and margins reached record levels in 2012.

• Market capitalization ended 2012 at $600.7M, up 23.2% from year-end 2011.

• Shares gained ~22% in 2012, outperforming the peer-group median return by 37%; the three-year share-price increase was nearly 810%.

Outlook and guidance

• 2013 priorities include reinvesting in existing businesses, advancing innovation and pursuing strategic expansion to support growth and value creation.

• Strong performance and low debt were expected to provide significant free cash flow and flexibility in 2013.

• CnF Additive commercial trials were underway; 2013 was expected to demonstrate potential production economics, cost and environmental benefits.

• 2013 focus includes advancing EOR initiatives through internal growth and potentially complementary external opportunities.