Business Context and Reporting Period
This Form 8-K filing by Flotek Industries, Inc. covers the date of December 21, 2010. The report details a corporate action regarding the Company's Series A Cumulative Convertible Preferred Stock.
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The primary financial event reported is the authorization of accumulated and unpaid dividends on the Preferred Stock through December 31, 2010.
Material Changes
The Board of Directors authorized the payment of all accumulated and unpaid dividends on outstanding Series A Cumulative Convertible Preferred Stock. These dividends are to be paid in shares of the Company's common stock rather than cash.
Guidance, Outlook, and Management Commentary
- Payment Terms: Dividends are payable on January 6, 2011.
- Record Date: Holders of record as of December 22, 2010, are eligible for the payment.
- Method of Payment: Settlement will occur via issuance of common stock as defined in the certificate of designations.
Investor Verification Checklist
- Verify the total number of Series A Cumulative Convertible Preferred Stock shares outstanding to estimate the dilution impact.
- Confirm the conversion ratio or formula in the certificate of designations to calculate the number of common shares to be issued.
- Review the Company's recent 10-K or 10-Q filings for the total dollar value of the accumulated dividends.
- Check the impact of the common stock issuance on the Company's authorized share count and treasury stock.