FTK - Earnings call transcript Q3 2019 | Flotek Industries, Inc.

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Operator

Greetings and welcome to Flotek Industries' Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management's prepared remarks. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Danielle Allen, Senior Vice President, Global Communications and Technology Commercialization for Flotek. ma'am. you, Thank

begin. You may

Danielle Allen

and good appreciate you, everyone. morning, participation. your Thank We

On John today's Wilkinson, President Officer. business and and on including concerning me the results. prepared Chisholm, will Flotek's call provide Elizabeth call Financial remarks Elizabeth Joining our and is Flotek's remarks John Officer; Chief Chief quarter for today's our Executive

up will comments before closing In Nierenberg, addition, some Flotek's David open Chairman for it provide of the Board questions. we

which the Yesterday a on is presentation. we available XXXX our along quarter released corporate is replay and our website with be available for website. webcast third call announcement also Today's on our our updated of earnings being will

Please projections statements. note today's on expectations comments are call make forward-looking or that regarding for any we our future events

number can release our cause current today events from in will our are and beyond expectations. listeners Form to be risks XX-Q SEC. We are which which materially review risk statements uncertainties, later actual uncertainties control. earnings of subject These and advise with and discussed our our filed the a of factors to the differ risks many Forward-looking to

refer metrics please this discuss release may as to non-GAAP earnings provided our management our Also, in press call. on reconciliations

we remarks, after our questions have. you may answer Finally, prepared will any

With over that, I'll to turn it John.

John Chisholm

us the world. Thanks in Danielle. joining the in conference We appreciate I'm for actually call. ADIPEC, today's energy everyone Abu Dhabi largest at

back in be a coordinating doing the lot Houston. will Elizabeth call the So, of of

saw like land significant quarter U.S. another decreased exposure and onshore with other third The providers U.S. of operations. activity service drilling completion period oilfield for to

to the for our recent was Also impacted. with expanded relationships impacting and reorganization provide were results opportunity topline Our margins ourselves results of salesforce our align and the with clients. further negatively topline

do clearly was thing right transition This for the to business. the

before to our longer given we predominantly we it the year cycle-time benefit of the efforts sales in business. will be see the our full begin expect we next However, in see

due decrease U.S. to seen month depressed E&P to seasonality. we hydraulic view X% count the spread For of typical holiday frac continue this budget expect Supporting in quarter, to and active sales the October. estimated the exhaustion primarily during be horsepower fourth the was

Shorter we today expect volatility in part to normal are to sometimes something the in and we new continued have operate continue foreseeable cycles see of and extreme future. the

recent stick the Report an methods. cash RS environment demonstrating discipline, which the technology is by pull Energy winners to in away and As tried will flow, this noted, the true of those and pack who on versus focus adoption the from

to profitability. of Permian approach, the part in critical In As efficiency capital XX,XXX than completion titled the Deciphering is enhanced analyzed a and this recent Shales, in designs both report, wells Puzzle optimization of more Deloitte Performance right the and years Eagle intensity and be design biggest the well linear found should past assumed Ford. well previously They productivity relationship noting the over operators. the several not focus the completion for peaked has that between

of ultimately is impacted wells of together the prevalence analysis industry and of that loss which a XX% Tudor, over in spacing challenges the spaced be seeing Further, Permian recent Holt's to resulted in production. production significantly In of wells XX% recovered. the Basin, closely Pickering, too a can XX,XXX have negatively

offers Flotek this proposition environment. unique a value in

what a ensuring the their we partners to guiding we In is Our laser-focused essence, success with we productivity of have our that chemistry the control. long-term increase company controllables. Flotek's competencies reservoir-centric around best-in-class center adopted can to controlling of core bases. services being clients remain Key principle on the asset

the This of second general and third take sales expenses top quarter, improve Through costs announced of administrative corporate range operating of cost-cutting our wide included we the the out efforts reduced the results the to the impact versus our measures, volumes. list, to At and were notwithstanding business. previously are quarter. able lowering for

last initiatives week. In addition, cost-cutting we round implemented another of

meaningfully the the Under Furthermore, have on which expenses implemented everyone our Elizabeth's with expected quarter, new and continued leadership, the work a to this year. will end for transformational effectiveness, want operating across by of organization, operational is employees fourth efficiency focused of improving that the and their reduce fully framework next thank to I and been has progress hard effort. accomplished dedication support to we

Another facet reservoir of to and is of key most address the controllables significant products controlling aligning some industry's specifically challenges. services our the

We well chemistry, to designs spacing has our all which completion tailored the data is on a positive showing and models. production have that reservoir, extensive in impact

Specifically, at provide production frac as hits, our we and the and production suboptimal spacing rollover chemistry had improved that proppant-intensity show benefits lateral-length incremental well well as through mitigation points. of

case portfolio and show increased of production. Our both sustained initial extensive studies,

have Further, our pursuit and increased of our of the in enhanced the recovery, chemistries and we water-flooding, of applications are intensity other remediation of diversifying opportunities oil stimulation applications. beyond areas the

engaging recognize that been with service while results. have can and we leading revenues operators our our clear line recent Finally, it in providers is impacted on benefits the that our chemistry negatively technologies sales team, current that have by actively bottom transition are significant their the

made pursuing technical long-term Our a team of identified in sales has great opportunities. new progress and number highly-skilled near

longer we as next predominantly will see full sales our be cycle into However, business. previously, the see expect year of efforts, benefits begin to our it given in time said before I we the we

more to results detail. in With will Elizabeth it discuss that, to over our I financial Elizabeth? turn

Elizabeth Wilkinson

a John. financial the few for all Similar past in our as quarters, segment release periods. of the operations tables our press discontinued to the operation CICT present Thanks,

corporate and results will such, includes today innovation as quarterly focus energy well functions. our our continuing discussion I As supporting business as which on operations, and my for our research

have flow, for be our U.S. costs reduce cash fourth continue expect we on force impacted taken volatile of results to quarter top clearly line enhance top As for based the third onshore And, the we current outlook This impact had operate on our activity. industry we additional U.S. have completions and similarly the steps John drilling sales quarter onshore. aggressive while recent for and margin environment the and turnover. related in we to a will challenging discussed, to

the expenses revenue $XX.X financial Looking $XX.X were our quarter for to million was at ECT quarter. for second $XX.X the million compared third million second the quarter results, versus third operating quarter. $XX.X for million the for

of than While a revenue almost $XX of percentage the absorption basis are in show lower we XXX more costs million pleased as of to our impacted and a point fixed on semi-variable expense margins, margin operating improvement revenue.

initiatives. our impact improvement this in the increased Driving cost efficiencies mile were and per load other cost including per logistics reduction of operational lower

the G&A increased $X.X million. Corporate spite million of in Research from and to $X.X million totaling quarter of the for charge quarter to preceding from in $X.X million the million nonrecurring severance second $X.X decreased third $X.X in costs slightly quarter. innovation XXXX, a

to Looking approximately environment, G&A than anticipate quarter $X less average approximately industry per or slightly costs we Despite $X million G&A to forward, operating continue per R&I quarter. a challenging -- costs million and that corporate or from loss more average we or continuing $XX for for $XX.X million a per diluted quarter the a of third loss the operations $X.XX an second diluted a of improved per reported loss quarter. share $X.XX share million loss compared to to

business, costs full with as look undertaken are XXXX. we While to and reporting clearly, we in of significant we move financial the not and seeing we pleased of the are drive wide-ranging XXXX see have a initiatives we down loss forward to for to through process efforts benefits impact advance our satisfied improvement the continued

table reported operations basis, share. the $XX.X diluted quarter from versus release we earnings in an $X.XX or loss loss a million $XX.X our of the loss diluted third share or refer a an to On quarter Please second $X.XX of more continuing details. loss per for adjusted million per

million to lower expenses. Our smaller loss adjusted please second $X.X third the a our administrative million a to quarter. in Again, compared refer and loss margins to loss were general operating and Contributing of $X.X for details. corporate table for the EBITDA more quarter release for of improved the was the

our sheet, the quarter Turning pleased that were almost decrease to we the $XX balance in grow the balance third the cash especially quarter. second revenue we given in from million saw to

cash quarter. in decrease to long-dated end at of sequential a successful cash $XXX compared net $XX.X of to the collection as the increase of and million As including had we the in full receivable certain XX, was Contributing second in million equivalents accounts the receivables. of September

quarter ended June to XX. XX third of reported a with XX result, as outstanding days sales days days compared we of a As the

indemnity sale of the also As million was that quarter $X.X the Florida of of we scheduled, the established of of escrow Chemical first year. at collected closing in the the time this

inventory to we a managed balances slightly Finally, our level. lower

of of funds escrow both working the Florida the At the had balance the capital current remaining company's third the the million and sale on in debt to adjustment claim we escrowed included estimate of other the assets outstanding balance related to indemnity of our reflecting Chemical. end its post-closing and sheet the of account $XX.X escrow no quarter,

third As of XXXX, additional to initiatives costs. past million cut. also on miscellaneous our and quarter mid-July executed with annualized John week, of annualized reducing further $X.X more This other implementation the of million personnel cost-cutting additional on continued our cut we we discussed, during than an spending have on execute focus $X benefiting

Overall, have annualized cost since the beginning fixed approximately the million our $XX cash of we XXXX, reduced by across business.

our been identified that supply expertise. consulting of to second extensive that chain recognized an million call, priority global beyond firm have I plan of manufacturing discussed action through for engagement $XX execute quarter development on their on Looking our initiatives a our and

process and enhancements drive to greater Through sales, manufacturing, to and this supply process including profitability we through logistics. opportunities prioritized efficiencies costs chain order-to-cash various reduce

XXXX. a of lower EBITDA $X beginning more quarterly in an our in of will that As XX%. this a be will result annualized more than further see reduction to operating breakeven revenue million by expectation level of on is expenses project, we this than basis impact The our estimated adjusted

to the attention Strategic Committee. Capital Turning

Nierenberg, committee cash opportunities Board continue of business with Chairman remain our Co-Chair the competencies. perspective to is that process. for we us flow, focused provide to on the of consider committee to reinvestment opportunity to and will I the continues with of our on immediate our the to Directors in wanted ongoing As operating provide core scale The on enhance of build best David positive and cash greater additional and use some evaluate the opportunities our

of our However, slowed opening our John over environment, said process, to evaluation at continuing have discussed relates scale operations. current overarching effectiveness greater in the while that rightsizing time efficiency a organic high-value industry Having we structure controllables being we while of nature. his believe strategy that, as to focus our result it given the controlling improving in identified down opportunities pursue namely opportunities, that the this are on we number cost comments, and growth light squarely inorganic profitability and our we of in capital and will point,

the our last call leveraging next-generation to differentiated innovation ongoing of in As commercializing cycle life well. One -- the of adoption on our creative scale, our of of solutions clients to growth across to and call, drive example our effort expand John further capabilities mentioned. technologies targeting recovery area on our enhanced presence unique include these discussed oil and awareness opportunities is long-term chemistries as our the develop

will before David? over the Nierenberg I David for it now our to Chairman, call we some open closing questions. comments for turn

David Nierenberg

Echoing quarter rightsize the business. Good while frustrating, Elizabeth. in its much, the continued efforts progress disappointing significant very were our you morning make Thank and revenues everyone. Elizabeth's to further third comments, company to

and and In the company's effectiveness. evaluated improve thoroughly which year efficiency and related early identified important enhancements addition, starting seen process which will and will next be team the

savings aspects As cash more to Elizabeth as than principle of the in the other savings on progress late the realized solid making controlling even guiding in our adding the well. $XX said, of million controllables, XXXX XXXX we're and XXXX of

Committee. to has given of we its oilfield similarly sale enjoy compared as remain extremely current Florida the as services which industry backdrop. important Strategic the is strong my protecting In with of role other a This many financial we placed sized financial substantial with Co-Chair result the Capital companies, on Flotek a in Elizabeth, flexibility Chemical. there Turning the focused position

business. our that the Chemical of to as of can and and transaction, navigate Florida challenging we're no million to we over the have work through we intensively way the closing liquidity Since doing grow preserve cash debt to times $XXX we have continue all

our we hired had stay from to clearly to company counseled and our they off Chisholm. rightsized Coming last quarter, us investors as conversations heard from of deals John until the from inorganic of successor a structure cost away we the

investments we to of result, opportunities company. pressed the on inorganic the As health improve potential a button the we as have continue underlying pause in

delivering report who value Finally, future that about the to and into John's And identifying of an capable past excellent made search highly positive who to I'm lead for company's I've multiple progress are eminently the with spoken in candidates firm, the we've qualified pleased in Flotek's successor. to working are Flotek recruiting stakeholders.

and sharing details We when engaged have update disclose. in we look you to with actively we these to more are conversations forward an

by the its the We appreciation service and technology its pool candidate of quality sheet, are encouraged field and particularly candidates' of its by strengths, balance Flotek's the expertise.

I So we to open it believe with questions. now up Operator? that will

Operator

Georg Our Johnson Instructions] question Rice. with [Operator first Please Venturatos comes from ahead. go

Georg Venturatos

on the the of John, suggest core the business down to activity just completions top certainly the average. saw decline peers on on sequential the Hey we good Elizabeth would and maybe range more XX% And XX% morning. magnitude quarter-over-quarter. towards given XX% the line

operational detail I margin but a that product what line better the know maybe of just also were on and you of mix drove mentioned understanding as reorgs it. some So type And the impact, how sales of wanted a get of decline to impacted bit well? top an little that quarter-over-quarter

Elizabeth Wilkinson

John one. I taking you'll that assume be

John Chisholm

Dhabi. Abu from it take I'll Yes

still that, us team than a up we But new might is good ago. quite frankly time get I to being made and the driving of the speed part Georg comments. you This taken sales it's affected as three has mentioned mentioned earlier to we thought progress this So in months was the very cycle. that long see sales it more

sometimes calls. talked sales a over on happen and don't or month. overnight These numerous about over We've earnings the week it not

we're mix, has about, great but in period about. sales add to that during with so Elizabeth we time we're talk want disappointed amount. of to that? encouraged don't specificity the The activity held you well CnF very anything up that And that

Elizabeth Wilkinson

say I - what as had exactly well. to was that's think I

Georg Venturatos

top XX% last line John. number Okay. sense breakeven what the get better of top perspective know Elizabeth least top second that breakeven you potentially enter how to for moving to as And to expectations. need is you Could net a to I about of to would get -- number business? get range. quantify broadly all down breakeven line at that a we line we mentioned question, XXXX relative what up you number former the Thanks quarter kind talked

Elizabeth Wilkinson

Sure.

to That's the I last be talking So quarter we're number what is and referred something pushing effectiveness neighborhood our in which basically call mid-XXs changes we've neighborhood below level was had to operational revenue results is and significant first efficiency now about. XX. that I what of think of our these in been going

Georg Venturatos

just picture. a Last and one it. one, more. Got Okay. But bigger

They've been into players. through more the change landscape tap Permian, difficult difficult to think you larger the WTI As benchmarks, Exxon, to to to the small ability Chevron. the Historically, all largely and appearing through for types about of range. got and what's And you're been those very the seeing mid-cap here particularly those have continue dominate. you've cycles players you in produce in

activity are then that is What of the Mark side are you doing concentrate move the in guys going forward strategically doing it maybe counteract to maybe on base? sales and to to and some key going who to the likely

John Chisholm

ago the it's just were in reached where or whether companies than longer thing limitations these us the of mentioned that's being question, no the six else published wells Tudor Energy, different about trends. thing And Deloitte, of it's the months of being statistics it's talking Georg. is it's of a in by whether now companies everybody whether whether in that is the seeing lateral physical that's amount Holt. it reading completion are are main is larger what many size Pickering industry undoubtedly, these reading And year Great the different we the same The RS you Sure. ago the length.

is reach of thought chemistry. closer lead awareness scale are several one be we've to going companies for the we've now deeper just a to about the talked customized we to be believe, will the production, And of of believe the you evolution the it's months would not what continue way industry that's engaging agree think that case. that the that these plateau people the much they're of because we the the as And had ones We things to with around. the look now, and grow been players to others folks larger of that

the speaks cost XX% on window pumping a we're there next That up could even and companies opens and or benefit think of to AFEs the due again year with revenue efficiency and And write-ups sure per recent in will to proppant. them that predictions stage the there's I'm of from the XX% realizing And to actually you're that cost we by are as alternatives that well seeing that that most in-basin seeing that understanding again, savings. chemistry. other decrease

see. type the down the with have we why that's level. we that C-suite sales the that. We've think do Hopefully to accounts takeaway field expertise the the helps. I the that So from And we We're now to do. these group covering biggest feeling of that that's got

Georg Venturatos

helpful John And of get given I process your to while the working talk, future you that's there. Yeah, plans just last with John. And were one successor I and wanted you through plans. enjoyed a this sense

John Chisholm

at to at pace thanks of that question. been for lot last But forward, years. couple say, in in boards, and a that on XX I obviously help and question. I I when way haven't figure thanks time some the except, a I'd but to the seriously, I'd will. a my to Well, again. I'm have the I'm and industry. piano going out not for it can if people to highly whole the the been to thought time with I'm to it's learn the intend how the to about I of I certainly But stay David involved lot way obviously, mentioned. But of that replacement network for quality I've play And active a comes any the my going safe like initiative, relationship the timing of guess, be it Georg supportive

Georg Venturatos

Appreciate it, Thanks. always. as

Operator

Our with Asset Alan next Lake question Management. from ahead. Please comes Sylvan go Mitrani

Alan Mitrani

Hi. Thank on questions. breakeven. Elizabeth, you. just A the of couple

maybe $XXX you're but So million. this going year $XXX it sounds breakeven, to million to like somewhere closer about $XXX million run

if Is you to next to up in going be go money that anticipation even whole still losing we're next kind revenues money year? year. the next year versus you're So meaningfully lose for that going year this of the

Elizabeth Wilkinson

of much we'll in that are give certainly it's our right but that year. think what not EBITDA during expectations to will guidance too next are Well, we year next I'm it to positive year, entirely you excess levels for -- quarters we revenue to would recovering get like and now going possible be where that the about are

Alan Mitrani

how then many And Okay. you employees have? do currently

Elizabeth Wilkinson

want say. About XXX, I to

Alan Mitrani

that's before that And latest started restructuring the that's week last coming or up?

Elizabeth Wilkinson

-- Yes. actually -- actually I'm sorry. moment the quarter at at We're of QX. the end of at XXX No,

Alan Mitrani

And I What's closing to anticipate -- people it's XXX. restructuring us mostly can related the -- or just you this insight? some and mean where be do facilities? you is going you give

Elizabeth Wilkinson

costs. miscellaneous It's and variety other mostly a people of

Alan Mitrani

Okay. just much But opening focus since eyes business. well? at makes looking trying revenue point in thinking I'm a cash cost oil at, terms now down, willing a the to understand about you to and year the the the Strategic outside mean, honest. And day and the your field. or looking stock have internally gas Archer have really which maybe business you have a be cutting just next been for how have with looked strategic have I'm of Daniels? costs value disappointing down and where given lowest to then NOLs to chase I that are their Have looking outside? I the outside the shareholder Committee clearly sense sees you is you of just stable role It's in been the do to anything wondering, on because you the you year. you And approached deal or and opportunities announced guys as

Elizabeth Wilkinson

we've as our much that ourselves revealed mentioned and enhance we're competencies. on Well, investor achieving businesses to will core deck, scale, and greater with before cash focused in our very continue flow, aligning

and that never that But consider that whether mean, we're said, to not things we've they looking sense things our predominantly, at the look I in be space. been are never at energy energy. of going come would So, if things outside not. we're make really realm or say the That looking way

Alan Mitrani

Okay. And then….

David Nierenberg

you May attribute I are their the CEO they have noticed along as we in that question? a interest. well would all and that seen sheet I positive of view add attracts points some the search candidates strength remind and the complementary the we've that that, to balance a

of are would The also other And drilling that the we aware the service of of end volatility extreme is of I say business. thing that, companies. the the the recognize power and market strong well energy completion we

the business of and most side of were mode of more give of And about production activity so we inorganic would our business, thinking sides we the the while is in other focused acquisitions, on hope that model. us this the John's in less But successor recurring work as we the said, volatile until again, we've more pause on cost have complete we've regularly business touched place. until and button revenue reduction we

Alan Mitrani

you. Thank

Operator

[Operator MHF. will Instructions] Please question Joe [ph] come ahead. Bannister go with Our next from

Unidentified Analyst

quick over question guess, happening now. Hi. there John Middle I The what's the East. in is

fill us CnF has could on what prospects So, kind interest there? over of and maybe you in

John Chisholm

Thanks to wouldn't a is The feel us there continues efforts It our the entity we've stable Thanks a couple an areas. grow almost We're a get calls and me in just but costs. an requirement question. in Saudi here in Again, the about Sure. folks look if UAE, looking for while or and in of we business previous the here here. in be safe area, a again to opportunity question. process. encouraged. it's other say but didn't over which to for to I with other here, have to the was at took forming also talked a in at not UAE interest

Unidentified Analyst

follow-up like doesn't debts guess best $X.XX as – share. valuation there. get that provide a less at out currently the is capital back buy for not free around Why working well you seems stock were a trading a It I bargain here? business And your quick the stock

David Nierenberg

Elizabeth? me to like Would speak to that you

Elizabeth Wilkinson

go ahead. to, Sure, please yes

David Nierenberg

to it been disciplined that with hoping considered, that, about though sure I'm and to on close that, identifying continue we John's successor. extensively said opportunism. maybe Having bringing board has and will we It think and

that I a As said before, have attribute, it as sheet, is we balance the interviewing value to attractiveness and today. considerable been the people

on bringing work the company. person, would the management to forward someone the with want and the And that for capable, to determine Board strategy,

you pricing So clear, and loud hear and valuation. about I while

can I the think speak our I onto now, bit for it's that saying person imprint their and in company. Board have a in puts person we until place strategic the until right that, premature

Operator

next comes LMJ Our Capital. with from Scher question Scott Please go ahead.

Scott Scher

Two questions, the for quarter's John, orders mentioned first the believe, coming you you Elizabeth, one last the was in question QX. is, deferred I into or QX that on of either sales transcript. two was were it reasons late

that those come to And from off your plan question how B, revenues Did in through? far is, was orders Part QX?

John Chisholm

go Elizabeth. yeah, ahead So,

Elizabeth Wilkinson

go fine -- John. mean, I Yeah. you're ahead, ahead to go Well.

John Chisholm

Yeah.

you So, delayed by that the talked that some happened. about revenue of logistics that the just was all and

fourth And quarter. forecast some be pushed will that in into the the of we quarter third it

are And better. try this And know reality. get the we we of world not versus it's it we outside seem getting we talk that internally. to actually what that, are forecast the looks like accordion better specifically I kind don't about May to And with. but like

go ahead. aware chime happen. pushed But, want material work thoughts to some Elizabeth, did was but Elizabeth, amount losing type in chemical company, But not We're yeah, other any as on you any of to your to might the that. of of that

Elizabeth Wilkinson

that, exhaustion. as way, the they that gone simply during the think, run has companies add market thing as would has it the that, have I is course just of budget describe, I what into the guess this I that year

layoff players there, is little of we see adoption. certain And a layoffs technology conducted relative with bit contemplating distraction, being very with X,XXX disruption a these announcing employee of of also amount out exercises, to a significant some some

I together think have so, that. things And down those, really calendar two of some the factors pushed

Scott Scher

Okay.

is Strategic for, you Second stock. this David, committee. Capital with -- the back regards buy possibly about would are like talk people really you David. there who Obviously, can to some to question, I guess,

two part made spending costs, worth sell organic four acquisitions, contemplated at is if low. on to company you point albeit, you're year multiple looking materially sale? you about million have a are this and guys the somebody three You I In the that more quarters up else inorganic to don't reference on putting you're for ago, and corporate that some $XX put want questions, to

thought quarters one sell industry wants eight No to for or going six we up, is thinks that the XX quarters. or to but quarters turn low. Everyone

you is XX that of is planning somehow that, hiring So to committee? we to you part who in the can for last comment brilliant do haven't a CEO on do instead that Have the strategic come able been contemplated something of and going quarters?

David Nierenberg

to for you Thank were the want selling we we agree it interested strength. if company, good a be you sale of with the fully that, question and perceived would morning, I considering from Scott. in of position actual and

we And as that of on reduction. haven't finished progress you've lot yet. cost heard made, a We have today,

consolidation if correct also functions. because out would that, were duplicated cost someone take play, of we You're further part else's they of

there far the who industries And I reduction I relatively as other owe few bleeding own found have our work. think everybody ability we it acquisitions. operationally are that acquirers in complete strategic in years take cost as the to But to to over we that can. staunch

can. to first us like I'd as make as ourselves So healthy we

of Second, with at to and and average I qualifying right towel premature I our and revenue, The put disappointment for sale in think longer us people's while decide probably the frustration throw your quarter share company process only customers and the months to third other up five force extreme than with products it's evaluating or time. our that. been and person reorganized four now, even this has and takes sales on

doing. is So of force the yet we haven't capable seen sales what

the better on we tight see opportunities what which to what or think remain maintain I'd seen consider with yet can friction make we in haven't regardless generations other way whether the ourselves we and things And whether We all and ourselves Board that, new speak enhanced see for of reducers. happen. do could And to like oil I'd we that. independent can to for recovery go do that a like focus I of we saying I

vein, judicious company selection that on value same if who bring sold. whether to company it think or the to and whether was company adds would In successor the add a John's person the the make future Board of a the was company, person we I a standalone in value

the rapidly to and makes because can more as value attractive. company it it the that's Continue across board, So company the adding better makes as the theme. potentially itself we

Scott Scher

mind I the already wouldn't of core you comment follow-up even of time we you if business, grew I suggested Florida that the just At massive cover. If sale I'll have one still Chemical that the to overhead call, on make disagree. the business

sales of the cash that has up sale putting world-class plug and company of instead force, existing a into to So put which for to and sales world-class offices across product their selling who it you world the play a a around who XX B your organization, phenomenal you've force, sales. option XX, XX, behind then decided sales and could for XX world-class force months restructure year taking to an entire

that and key You've when It value a don't is play capable they someone riskier you've are like seems for this somebody all taken not. much search plug company's for CEO we decided else. go how in for to product technology strategy would know be now embedded or a

a that, strategy sell to a riskier company sale product, going we're already for So down out I strategy. to if Chemical you've me already be seems to that sales after going by that's at $XXX it like that that where worldwide admit put seems greater have responding how mind company market salespeople taken you to risk going -- larger Florida great a Instead lowest million it you established world-class. and hiring company have just a when Please we're wouldn't far respond. mean up that's has been XX%, the force cap would sales the

David Nierenberg

As the That's they for a my before from lot I Scott, the been Florida speak the have multiple are that cost said million Board limited. that rate taking think was money. deal I experience saying of like of something terms relatively time fix that who in to the strategic ability the management has at buy cost quarter per of negotiated. $XX acquirers across of I And Chemical is approaching, we universe industries what the the out run and

buys but best should pursued, about reducers -- it structure We to cost do, organization a that tightly whether something combined is or different or a or we and EOR think lean a and reasonable growth possible higher some more friction time differ that's focused a strategy. been and and have the not flexibility in not and some can avenue thing should think service-oriented us else minds good sales with whether

closely. it watch We

-- We please. think that the premature to new our working. not but determine next change unwilling are decide force question to Operator, not we minds, sales to is it's

Operator

closing [Operator would our Instructions] This concludes over question-and-answer remarks. any for Chisholm session. to conference back the like John I to turn

John Chisholm

I operator. interest thanks appreciate and Flotek everyone's just of today. wanted everyone in us say you, We the support to Thank to again joining shareholders. our

served our countless given that veterans as yesterday, my that the addition, that In as to and so and enjoy veterans a Day of the other well everyone is was appreciation they and wanted them families and the extremely deep have best. at Again, holidays. please wish great country continue the much. the have you Thank Veterans I many day upcoming offer faithfully, to humbling work sacrifices we selfless their very all have make Flotek

Operator

The now conference for presentation. attending today's Thank concluded. you has

disconnect. You may now

Flotek Industries (FTK) 12 Nov 192019 Q3 Earnings call transcript