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EXHIBIT 99.1
FOR
IMMEDIATE RELEASE
TETRA
TECHNOLOGIES, INC.
REPORTS
FOURTH QUARTER 2008 RESULTS
February 27, 2009
(The Woodlands, Texas), TETRA Technologies, Inc. (TETRA or the Company)
(NYSE:TTI) today announced that it lost $0.79 per share in the fourth quarter of
2008. Included in this loss were impairments of approximately $54.4 million
associated with the overall assessment of assets as part of its goodwill
impairment test, pursuant to SFAS No. 142 ($47.1 million of goodwill write-off
and $7.3 million of long-lived asset write-off). Also, as previously discussed
in our February 10, 2009 press release, Maritech incurred a total of
approximately $45.7 million of charges in the fourth quarter (primarily
impairments caused by reduced commodity prices, which were not allowed to be
offset by Maritech’s hedges). The combination of the $54.4 million impairment
and the Maritech charges equaled $100.1 million in the quarter, or $0.91 per
share after tax. For the year, similar charges totaled $123.1 million, or $1.10
per share, after tax. All financial data in this release are reported in U.S.
dollars, are before discontinued operations and all per share amounts are fully
diluted.
Consolidated
revenues for the quarter ended December 31, 2008 were $230,421,000 versus
$245,975,000 in the fourth quarter of 2007. Total gross profit was a negative of
$11,181,000 in the fourth quarter of 2008 versus a negative $37,337,000 in the
fourth quarter of 2007. Income before discontinued operations was a loss of
$59,284,000 in the fourth quarter of 2008 versus a loss of $44,337,000 in the
comparable period of 2007. Net income was a loss of $59,897,000 in 2008’s fourth
quarter versus a loss of $18,623,000 in 2007’s fourth
quarter.
Consolidated
results per share from continuing operations for the fourth quarter of 2008 were
a loss of $0.79 with 74,908,000 weighted average diluted common shares
outstanding versus a loss of $0.60 with 74,084,000 weighted average diluted
common shares outstanding in the fourth quarter of 2007.
Consistent with
operational segment changes, the following items will be modified from here,
forward. The Well Abandonment & Decommissioning Services Division will be
called the Offshore Division. This Division will be comprised of Offshore
Services and Maritech. The Production Enhancement Division will now be comprised
of two segments, Production Testing and Compressco. Prior period segment
information in this division was reclassified to conform to the 2008
presentation.
Divisional pretax
earnings (loss) from continuing operations in the fourth quarter of 2008 versus
the fourth quarter of 2007 were: Fluids Division – ($18,905,000) in 4Q 2008 and
($7,634,000) in 4Q 2007; Offshore Services (formerly WA&D Services) –
($14,218,000) in 4Q 2008 and $7,037,000 in 4Q 2007; Maritech – ($58,689,000) in
4Q 2008 and ($71,172,000) in 4Q 2007; Production Testing – $9,793,000 in 4Q 2008
and $7,935,000 in 4Q 2007; and, Compressco – $7,629,000 in 4Q 2008
and $7,196,000 in 4Q 2007.
Financial data
aggregating full year 2008, comparable data for 2007 and data relating to net
income, as well as discontinued operations, are available in the accompanying
financial table in this press release.
1
Geoffrey M. Hertel,
President and Chief Executive Officer, stated, “During the fourth quarter of
2008, TETRA incurred $100.1 million of impairments. A significant portion of the
Maritech $45.7 million of impairment was caused by reduced commodity prices,
which are not allowed to be offset in this calculation with our hedges (hedges
increased in value by approximately $95.3 million pretax, in the quarter). As
part of their SFAS No. 142 impairment tests, Fluids had an impairment of $23.9
million and Offshore Services had an impairment of $30.5 million (most of this
$54.4 million impairment is triggered by the reduction in the TETRA stock
price).
“During the
quarter, the Production Enhancement Division had record earnings and Offshore
Services had one of its best quarters ever, excluding the impairment charge. The
quarter was negatively impacted by Hurricane Ike, especially in Maritech and
Fluids. Even with the difficulties encountered due to hurricanes, TETRA
generated $189.8 million of ‘net cash provided by operating activities’ during
the year ended December 31, 2008.
“We reiterate our
February 10 earnings guidance for 2009 of $0.70 – $0.90 per share. Due to the
factors enumerated in the February 10 press release, we expect these earnings to
be weighted toward the second half of 2009.
“Based on our
estimates, we do not foresee any issues in complying with the covenants on our
long-term notes or bank debt. Long-term debt is expected to peak around $480
million in May or June and then is projected to fall to slightly above $400
million by year-end 2009. At $480 million of debt, TETRA should have about $100
million unused and available credit under our bank lines. Our bank debt is
scheduled to come due on June 27, 2011, and the earliest of our notes is
scheduled to come due in September of 2011. TETRA invested significant capital
expenditures toward growth in 2006 through 2008, and will continue to do this in
Arkansas through mid-year 2009 (expected start-up of the plant may occur two
months ahead of schedule, in the third quarter). These investments give us
significant capacity to grow all of our businesses, as markets improve.
Therefore, we do not anticipate a need to make large additional CapEx
investments in order to generate significant cash for use in reducing debt in
the 18 months (starting in July 2009), or to increase earnings,” concluded
Hertel.
TETRA is an oil and
gas services company, including an integrated calcium chloride and brominated
products manufacturing operation that supplies feedstocks to energy markets, as
well as other markets.
This press release
includes certain statements that are deemed to be forward-looking statements.
These forward-looking statements include statements concerning financial
guidance, estimated earnings, earnings per share, expected benefits from our
agreements and long-term investments, expected results of operational business
segments for 2009, expected costs associated with damage from the hurricanes and
the ability to recover such costs under our insurance policies, the ability to
resume operations and production from our damaged or destroyed platforms and
properties, and other statements regarding our beliefs, expectations, plans,
goals, future events and performance and other statements that are not purely
historical. These forward-looking statements are based on certain assumptions
and analyses made by the Company in light of its experience and its perception
of historical trends, current conditions, expected future developments and other
factors it believes are appropriate in the circumstances. Such statements are
subject to a number of risks and
2
uncertainties, many
of which are beyond the control of the Company. Investors are cautioned that any
such statements are not guarantees of future performances or results and that
actual results or developments may differ materially from those projected in the
forward-looking statements. Some of the factors that could affect actual results
are described in the section titled “Certain Business Risks” contained in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2007, as
well as other risks identified from time to time in its reports on Form 10-Q and
Form 8-K filed with the Securities and Exchange Commission.
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
(In Thousands,
Except Per Share Amounts)
|
||||||||||||||||
|
Revenues
|
||||||||||||||||
|
Fluids
Division
|
$ | 64,199 | $ | 67,627 | $ | 293,248 | $ | 282,074 | ||||||||
|
Offshore
(formerly WA&D) Division
|
||||||||||||||||
|
Offshore
Services
|
91,143 | 78,947 | 306,362 | 341,082 | ||||||||||||
|
Maritech
|
23,641 | 56,305 | 208,509 | 214,154 | ||||||||||||
|
Intersegment
eliminations
|
(8,635 | ) | (5,870 | ) | (22,971 | ) | (29,057 | ) | ||||||||
|
Offshore
Division total
|
106,149 | 129,382 | 491,900 | 526,179 | ||||||||||||
|
Production
Enhancement Division
|
||||||||||||||||
|
Production
Testing
|
34,120 | 26,742 | 127,019 | 93,130 | ||||||||||||
|
Compressco
|
26,076 | 23,094 | 97,417 | 83,554 | ||||||||||||
|
Production
Enhancement Division total
|
60,196 | 49,836 | 224,436 | 176,684 | ||||||||||||
|
Eliminations
and other
|
(123 | ) | (870 | ) | (519 | ) | (2,454 | ) | ||||||||
|
Total
revenues
|
230,421 | 245,975 | 1,009,065 | 982,483 | ||||||||||||
|
Gross
profit (loss)
|
||||||||||||||||
|
Fluids
Division
|
10,356 | (592 | ) | 56,446 | 38,620 | |||||||||||
|
Offshore
Division
|
||||||||||||||||
|
Offshore
Services
|
13,193 | 11,148 | 43,025 | 49,110 | ||||||||||||
|
Maritech
|
(55,992 | ) | (69,598 | ) | (29,958 | ) | (45,631 | ) | ||||||||
|
Intersegment
eliminations
|
(1,085 | ) | 2,248 | (782 | ) | 6,225 | ||||||||||
|
Offshore
Division total
|
(43,884 | ) | (56,202 | ) | 12,285 | 9,704 | ||||||||||
|
Production
Enhancement Division
|
||||||||||||||||
|
Production
Testing
|
12,436 | 10,121 | 44,413 | 32,813 | ||||||||||||
|
Compressco
|
10,536 | 10,032 | 41,323 | 36,685 | ||||||||||||
|
Production
Enhancement Division total
|
22,972 | 20,153 | 85,736 | 69,498 | ||||||||||||
|
Eliminations
and other
|
(625 | ) | (696 | ) | (2,466 | ) | (1,439 | ) | ||||||||
|
Total
gross profit (loss)
|
(11,181 | ) | (37,337 | ) | 152,001 | 116,383 | ||||||||||
|
General and
administrative expense
|
26,187 | 25,474 | 104,949 | 99,871 | ||||||||||||
|
Impairment of
goodwill
|
47,073 | - | 47,073 | - | ||||||||||||
|
Operating
income (loss)
|
(84,441 | ) | (62,811 | ) | (21 | ) | 16,512 | |||||||||
|
Interest
expense, net
|
3,812 | 4,641 | 16,778 | 17,155 | ||||||||||||
|
Other expense
(income)
|
(8,337 | ) | 361 | (12,884 | ) | (2,805 | ) | |||||||||
|
**Income
(loss) before taxes and
|
(79,916 | ) | (67,813 | ) | (3,915 | ) | 2,162 | |||||||||
|
discontinued
operations (A)
|
||||||||||||||||
|
Provision for
income taxes
|
(20,632 | ) | (23,476 | ) | 5,740 | 941 | ||||||||||
|
Income
(loss) before discontinued operations
|
(59,284 | ) | (44,337 | ) | (9,655 | ) | 1,221 | |||||||||
|
Discontinued
operations:
|
||||||||||||||||
|
Income
(loss) from discontinued operations,
|
||||||||||||||||
|
net
of taxes (A)
|
(613 | ) | 25,714 | (2,481 | ) | 27,550 | ||||||||||
|
Net
income (loss)
|
$ | (59,897 | ) | $ | (18,623 | ) | $ | (12,136 | ) | $ | 28,771 | |||||
3
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
(In
Thousands, Except Per Share Amounts)
|
||||||||||||||||
|
**Income
(loss) before taxes and discontinued operations
|
||||||||||||||||
|
Fluids
Division
|
(18,905 | ) | (7,634 | ) | 5,401 | 10,897 | ||||||||||
|
Offshore
Division
|
||||||||||||||||
|
Offshore
Services
|
(14,218 | ) | 7,037 | 3,019 | 33,496 | |||||||||||
|
Maritech
|
(58,689 | ) | (71,172 | ) | (31,932 | ) | (49,815 | ) | ||||||||
|
Intersegment
eliminations
|
(1,085 | ) | 2,248 | (782 | ) | 6,225 | ||||||||||
|
Offshore
Division total
|
(73,992 | ) | (61,887 | ) | (29,695 | ) | (10,094 | ) | ||||||||
|
Production
Enhancement Division
|
||||||||||||||||
|
Production
Testing
|
9,793 | 7,935 | 35,677 | 25,639 | ||||||||||||
|
Compressco
|
7,629 | 7,196 | 30,310 | 26,663 | ||||||||||||
|
Production
Enhancement Division total
|
17,422 | 15,131 | 65,987 | 52,302 | ||||||||||||
|
Corporate
overhead (includes interest)
|
(4,441 | ) | (13,423 | ) | (45,608 | ) | (50,943 | ) | ||||||||
|
Total
|
(79,916 | ) | (67,813 | ) | (3,915 | ) | 2,162 | |||||||||
|
Basic
per share information:
|
||||||||||||||||
|
Income
(loss) before discontinued operations
|
$ | (0.79 | ) | $ | (0.60 | ) | $ | (0.13 | ) | $ | 0.02 | |||||
|
Income
(loss) from discontinued operations
|
(0.01 | ) | 0.35 | (0.03 | ) | 0.37 | ||||||||||
|
Net
income (loss)
|
$ | (0.80 | ) | $ | (0.25 | ) | $ | (0.16 | ) | $ | 0.39 | |||||
|
Weighted
average shares outstanding
|
74,908 | 74,084 | 74,519 | 73,573 | ||||||||||||
|
Diluted
per share information:
|
||||||||||||||||
|
Income
(loss) before discontinued operations
|
$ | (0.79 | ) | $ | (0.60 | ) | $ | (0.13 | ) | $ | 0.02 | |||||
|
Income
(loss) from discontinued operations
|
(0.01 | ) | 0.35 | (0.03 | ) | 0.36 | ||||||||||
|
Net
income (loss)
|
$ | (0.80 | ) | $ | (0.25 | ) | $ | (0.16 | ) | $ | 0.38 | |||||
|
Weighted
average shares outstanding
|
74,908 | 74,084 | 74,519 | 75,921 | ||||||||||||
|
Depreciation,
depletion and amortization (B)
|
$ | 76,100 | $ | 102,902 | $ | 210,292 | $ | 201,624 | ||||||||
(A) Information
presented for each period reflects TETRA’s Process Services, Venezuelan fluids
and production testing operations as discontinued operations.
(B) DD&A
information for 2008 and 2007 includes oil and gas dry hole costs and
impairments of long-lived assets.
|
Balance
Sheet
|
December
31, 2008
|
December
31, 2007
|
||||||
|
(In
Thousands)
|
||||||||
|
Cash
|
$ | 6,032 | $ | 26,051 | ||||
|
Accounts
receivable, net
|
225,491 | 215,284 | ||||||
|
Inventories
|
117,731 | 118,502 | ||||||
|
Other current
assets
|
86,059 | 63,654 | ||||||
|
PP&E,
net
|
807,466 | 696,391 | ||||||
|
Other
assets
|
169,845 | 175,654 | ||||||
|
Total
assets
|
$ | 1,412,624 | $ | 1,295,536 | ||||
|
Current
liabilities
|
$ | 212,481 | $ | 242,050 | ||||
|
Long-term
debt
|
406,840 | 358,024 | ||||||
|
Other
long-term liabilities
|
277,482 | 247,543 | ||||||
|
Equity
|
515,821 | 447,919 | ||||||
|
Total
liabilities and equity
|
$ | 1,412,624 | $ | 1,295,536 | ||||
Contact:
TETRA Technologies,
Inc., The Woodlands, Texas
Geoffrey M. Hertel,
281/367-1983
Fax:
281/364-4346
www.tetratec.com
4
The following information was filed by Tetra Technologies Inc (TTI) on Friday, February 27, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one year to another to evaluate Tetra Technologies Inc's financial trajectory
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Tetra Technologies Inc provided additional information to their SEC Filing as exhibits
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Ticker: TTI
CIK: 844965
Form Type: 10-K Annual Report
Accession Number: 0000844965-09-000010
Submitted to the SEC: Mon Mar 02 2009 3:55:24 PM EST
Accepted by the SEC: Mon Mar 02 2009
Period: Wednesday, December 31, 2008
Industry: Crude Petroleum And Natural Gas
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