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

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. Read More >>