Flotek Industries, Inc.

Good morning and welcome to the Flowtech Industries fourth quarter and full year 2022 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Bernie Colson, Senior Vice President of Corporate Development and Sustainability. Please go ahead.

Thank you and good morning, everyone. We appreciate your participation. Joining me today and participating in the call are Harsha V. Agadi, Interim Chief Executive Officer, Ryan Ezell, President, and Bon Clement, Chief Financial Officer. On today's call, we will first provide prepared remarks concerning our business and results for the quarter and the full year. Following that, we will answer any questions you have. We have now released our earnings announcement for the full year and fourth quarter of 2022, which is available on our website. In addition, today's call is being webcast and a replay will be available on our website shortly following the conclusion of this call. Please note that comments we make on today's call regarding projections or our expectations for future events are forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. Also, please refer to the reconciliations provided in our earnings press release as management may discuss non-GAAP metrics on this call. I will now turn it over to Arshad.

Good morning, everyone. Thank you for joining the discussion of our fourth quarter and full year 2022 financial results. This is my first conference call as Interim CEO, and I'm happy to be here today. I have been a member of the Board of Directors since August 2020 and have never been more encouraged about the present and future outlook of Flowtech. Flowtech has taken decisive steps to position the company for future growth and profitability with a new senior management team in place. As you may recall, Von Clement was appointed Chief Financial Officer in December of 2022. In January, I was appointed as interim CEO. We promoted Ryan Ezell to president, and David Nirenberg assumed the role of chairman of the board. We believe we have the right management team and board of directors to guide FlowTech to enhance revenue and profitability. This is my 62nd day since the changes. and I'm learning every single day how we can grow this company. What I know so far is that the Flowtech team is world-class and has overseen top-line growth. Going forward, we have made profitability enhancement the absolute cornerstone of our strategy. Fourth quarter 2022 revenue grew 4x, over the fourth quarter of 2021. This was accomplished while maintaining extremely high service quality, customer satisfaction, and industry-leading safety. The effort has been nothing short of Herculean, and I would like to congratulate and thank all of our employees, suppliers, and customers for their role in our 2022 growth story. That being said, I'm even more excited about the future runaway for our company. I am confident that we will continue to drive peer-leading revenue and market share growth, and we are approaching an inflection point where the company will shift to generating positive adjusted EBITDA through various cost reduction initiatives that are now in place. Our economies of scale in purchasing raw materials, improved efficiency in freight costs, and introducing just-in-time labor scheduling will make a significant difference in gross margins over time. Ryan will quantify those later. In addition, reductions in SG&A combined with top-line growth will drive us toward positive cash generation. Bond will quantify SG&A savings. All these initiatives are now in place. It gives me great comfort and pleasure to have a seasoned and experienced oil field services executive like Dr. Ryan Ezell to lead our company operations towards sustainable top-line and bottom-line growth. He and his team have done a tremendous job executing a strategy that has resulted in transformational growth in our chemistry and data analytics business. I do want to state that as the interim CEO, there are significant growing pains as businesses scale up in working capital, gross margins, and limited financial staff to execute perfectly. As the new senior team, we recognize the growing pains are investing and investing in resources to correct it. I'm highly confident that revenues in 2023 will be up at least 50% over 2022. Our continued scaling of revenues, increased gross margins combined with tight-fisted control on SG&A, will lead us to sustainable, positive, adjusted EBITDA. The board, senior management, most importantly, all employees are very excited with this positive outlook on our business. In conclusion, as the interim CEO, when I assumed this position in January, I knew I had a learning curve to better understand the culture of the company the sector, and its employees. The people of this company are very impressive and dedicated. There is work to be done on all fronts, and we are addressing it confidently. With that, I ask our president, Dr. Ryan Ezell, to discuss our operational results for 2022. Ryan?