Flotek (FTK)

[dan_s]

From Flotek's IPAA presentation in New York on Monday. I've been watching this small-cap service company for awhile (hoping to get them to host one of our luncheons this year). Note that revenues for Q1 are now expected to be above the currrent First Call estimate. Also note that their margins are getting better, an indication to me that all oilfield service firms (including the drillers on our Watch List) should report solid 1st quarter results. - Dan
--------------------------------------------------------------------------------------------

This morning Flotek announced preliminary metrics from the First Quarter, 2012. While we are still completing final numbers, we are pleased with our results:

Revenues for the first quarter, 2012 should exceed $78 million, a gain of approximately 47% over first quarter, 2011 results.

Gross margins in the first quarter should exceed 42% compared to 40.9% in 2011. Chemical & Logistics gross margins were 43% in the first quarter of 2012 compared to 40% for both the fourth quarter and full-year, 2011.

Operating income in the first quarter should exceed $16 million, a gain of approximately 72% over first quarter, 2011 results.

Complex Nanofluid (CnF) sales continued to accelerate as first quarter sales were 73% above year-ago levels and 35% above sales in the fourth quarter of 2011.

Flotek expects to exceed current “street” earnings per share estimates, adjusting for non-cash expenses related to the fair value of warrant liability and early retirement of debt.