Wednesday, May 18, 2022

Flotek Industries (FTK)
Revenues are growing but so are costs.

Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream, and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Revenues are rising as industry conditions improve. Flotek reported a 6% year-over-year increase in revenues in the 2022 first quarter as drilling activity accelerated in February and March reaching the highest levels since the pandemic. Results were above our expectations for revenues of $11.8 million. As a reminder, the company’s business partnership with Profrac did not begin until April 1, 2022 and did not have an effect on the quarter. 

Cost are rising faster. Cost of Goods Sold rose 11% year over year. Flotek reports higher supply costs associated with freight and other factors. Management vowed to address rising costs by “adjusting prices accordingly” but also concedes that competitive pressures remain very tight. Adjusted EBITDA for the quarter was ($5.5) million versus ($6.6) million for the same period last year and ($5.7) million in the December quarter. …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Flotek Announces Shareholder Approval of $2 Billion+ Long Term Contract

Research, News, and Market Data on Flotek Industries

HOUSTON, May 10, 2022 – Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK), a leader in technology-driven specialty green chemistry solutions, today announced that Flotek’s shareholders overwhelmingly approved the previously-announced agreement with ProFrac Holdings, LLC (“ProFrac”) to expand the existing long-term supply agreement with one of ProFrac’s affiliates.
 

The results from yesterday’s meeting indicate that approximately 98.5% of the votes cast by Flotek common stock voted in favor of the proposal to approve the transactions contemplated by the agreement with ProFrac.  The full results of the vote are available in a Current Report on Form 8-K filed with Securities & Exchange Commission on May 9, 2022.
 

The transactions are expected to close expeditiously, subject to usual and customary closing conditions.
 

About Flotek
Industries, Inc.
Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people.  A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use.  Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies.  Flotek serves downstream, midstream, and upstream customers, both domestic and international.  Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.”  For additional information, please visit www.flotekind.com.

Forward-Looking
Statements
Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects.  Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release.  Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management.  Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements.  Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents.  Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect, any event or circumstance that may arise after the date of this press release.

 

Contact:
Investor Relations
E: ir@flotekind.com
P: (713) 726-5322

Great Lakes Dredge & Dock Corporation Schedules Announcement of 2022 First Quarter Results

Research, News, and Market Data on Great Lakes Dredge & Dock

HOUSTON, April 26, 2022 (GLOBE NEWSWIRE) — Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) today announced that it will release the financial results for its three ended March 31, 2022 on Tuesday, May 3, 2022 at 7:00 a.m. C.D.T. A conference call with the Company will be held the same day at 9:00 a.m. C.D.T. The call-in number is (877) 377-7553 and Conference ID is 1383479. The conference call will be available by replay until Thursday, May 5, 2022 by calling (855) 859-2056 and providing Conference ID 138479. The live call and replay can also be heard on the Company’s website, www.gldd.com, under Events on the Investor Relations page. A copy of the press release will be available on the Company’s website.

The Company
Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) is the largest provider of dredging services in the United States. In addition, the Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the company’s culture. The company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount. Great Lakes also owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of over 200 specialized vessels.

For further information contact:
Tina Baginskis
Director, Investor Relations
630-574-3024

Thursday, March 10, 2022

Kelly Services (KELYA)
Re-allocation of Capital Has Begun; Acquiring RocketPower

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Redeploying APAC Capital. In its first move since the February announcement of the sale of the majority of its APAC assets, Kelly Services is acquiring fast-growing RocketPower, a leading provider of Recruitment Process Outsourcing (RPO) and other outsourced talent solutions. Management described the business as “high-margin, high-growth assets,” although terms of the deal were not disclosed.

Who Is RocketPower? Founded in 2016 by Silicon Valley veteran Mat Caldwell, RocketPower is a leading provider of RPO and other outsourced talent solutions.  RocketPower’s customers include rapidly scaling U.S. tech companies known for disrupting industries and changing the world. In 2021, RocketPower generated $28 million of revenue and anticipates triple digit growth in 2022 …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Tuesday, March 08, 2022

Vectrus (VEC)
A Transformational Combination; Reports 4Q21 Results

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Vertex Combination. Yesterday, Vectrus announced it is combining with The Vertex Company in an all-stock merger that values Vertex at $2.1 billion. The combined company will offer significantly expanded technology and service capabilities, delivering a comprehensive suite of integrated solutions and critical service offerings to support national security readiness and modernization initiatives around the world.

Through the $2.5 billion, 7% Margin Goal.  With pro forma 2021 combined revenue of $3.4 billion and adjusted EBITDA of $283 million, or an 8.3% margin, Vectrus will exceed its $2.5 billion, 7% adjusted EBITDA margin goal. Significantly, the combined entity’s $11.3 billion backlog provides high revenue visibility with the potential of increased adjusted EBITDA margin going forward …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Tuesday, March 08, 2022

Vectrus (VEC)
A Transformational Combination; Reports 4Q21 Results

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Vertex Combination. Yesterday, Vectrus announced it is combining with The Vertex Company in an all-stock merger that values Vertex at $2.1 billion. The combined company will offer significantly expanded technology and service capabilities, delivering a comprehensive suite of integrated solutions and critical service offerings to support national security readiness and modernization initiatives around the world.

Through the $2.5 billion, 7% Margin Goal.  With pro forma 2021 combined revenue of $3.4 billion and adjusted EBITDA of $283 million, or an 8.3% margin, Vectrus will exceed its $2.5 billion, 7% adjusted EBITDA margin goal. Significantly, the combined entity’s $11.3 billion backlog provides high revenue visibility with the potential of increased adjusted EBITDA margin going forward …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Friday, March 04, 2022

Orion Group Holdings (ORN)
Call Wrap Up – Fine Tuning 2022 Numbers

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Fine tuning 2022 EBITDA estimate to $34.0 million, in line with current guidance. Incorporating comments from the quarterly call and the stated EBITDA guidance in the mid-$35 million range, we are moving our 2022 EBITDA estimate to $34.0 million from $37.0 million. Our estimate is based on Marine EBITDA of $33.75 million and Concrete EBITDA of $0.25 million. While the recovery in Marine appears underway based on better 4Q2021 results, the Concrete outlook is less clear and we scaled back our expectations. Please see our March 3rd research note for a more detailed discussion about operating results and backlog changes in 4Q2021.


Revolver waiver/amendments preserve financial flexibility and CFO search ongoing.  Due to weak operating results, a waiver was necessary on certain coverage covenants in 4Q2021. The leverage and fixed coverage ratios have been suspended through 2Q2022, which preserves some financial flexibility. Minimum EBITDA requirements remain in place, albeit at low levels of $2.6 million in 1Q2022 and $5.1 …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Flotek Awarded $1 Billion+ Long Term Contract

Research, News, and Market Data on Flotek Industries

HOUSTON, Feb. 17, 2022 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK), a leader in technology-driven, specialty green chemistry solutions, has entered into an agreement with ProFrac Holdings, LLC (“ProFrac”) to expand the previously-announced long term supply agreement with one of ProFrac’s affiliates.

The Company anticipates that, after closing, the new expansion will increase revenue backlog by at least $1 billion, and up to $2.1 billion, over the next ten years.  As part of the transaction, at closing Flotek would (a) issue to ProFrac notes convertible into Flotek’s common stock with a maturity of one year, with the amount of notes based on the size of expansion, and (b) grant ProFrac the right to appoint two members to Flotek’s board of directors, for a total of four out of seven directors.  Conversion price of the convertible notes is $1.088125 per share under certain conditions prior to maturity, or $0.8705 per share at maturity.  The convertible notes contain other terms and conditions similar to the convertible notes announced on February 2, 2022.

Closing of the transaction is expected to occur in Q2 of 2022 and is subject to a vote of the shareholders of Flotek’s common stock, as well as other customary conditions. 

The Company will be providing additional information and an investor presentation, and plans to host a conference call to discuss this new agreement.  The contract documents will be filed with the Securities and Exchange Commission via a Current Report on Form 8-K.

Piper Sandler is serving as a financial advisor to Flotek.

About Flotek Industries, Inc.
Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment provides sustainable, optimized chemistry solutions that maximize our customer’s value by elevating their ESG performance, lowering operational costs, and delivering improved return on invested capital. The Company’s proprietary green chemistries, specialty chemistries, logistics, and technology services enable its customers to pursue improved efficiencies and performance throughout the life cycle of its desired chemical applications program. Major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, geothermal energy companies, solar energy companies and advanced alternative energy companies benefit from best-in-class technology, field operations, and continuous improvement exercises that go beyond existing sustainability practices. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com.

Forward-Looking Statements
Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of tile Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Forward-looking statements include, but are not limited to, statements regarding the anticipated performance under the long-term supply agreement, the amount of the potential backlog, the consideration for the long-term supply agreement, and the closing of the contemplated transactions. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect, any event or circumstance that may arise after the date of this press release.

Additional Information about the Transaction and Where to Find It
The Company intends to file a preliminary proxy statement with the SEC in connection with the transaction described in the press release, and will mail a definitive proxy statement and other relevant documents to its stockholders. This press release does not contain all the information that should be considered concerning the transaction, and it is not intended to provide the basis for any investment decision or any other decision in respect to the transaction. The Company’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement, the amendments thereto, and the definitive proxy statement in connection with the Company’s solicitation of proxies for the special meeting to be held to approve the transaction, as these materials will contain important information about the Company and the transaction. The definitive proxy statement will be mailed to the Company’s stockholders as of a record date to be established for voting on the transaction. Such stockholders will also be able to obtain copies of the proxy statement, without charge, once available, at the SEC’s website at http://www.sec.gov, or by directing a request to: Flotek Industries, Inc., 8846 N. Sam Houston Parkway W., Houston, TX 77064. Attention: Investor Relations, (ir@flotekind.com).

Participants in the Solicitation
The Company and its directors and officers may be deemed participants in the solicitation of proxies of the Company’s stockholders in connection with the proposed transaction. The Company’s stockholders and other interested persons may obtain, without charge, more detailed information regarding the directors and officers of the Company in the Company’s most recent Annual Report on Form 10-K filed with the SEC and in the Company’s other SEC filings. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to the Company’s stockholders in connection with the proposed transaction will be set forth in the proxy statement for the proposed transaction when available. Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed transaction will be included in the proxy statement that the Company intends to file with the SEC.

SOURCE Flotek Industries, Inc.