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FOR IMMEDIATE RELEASE
Third Quarter 2019 Results
THE WOODLANDS, Texas, November 7, 2019 / PR Newswire / - TETRA Technologies, Inc. (“TETRA”) (NYSE:TTI) announced consolidatedthird quarter net loss before discontinued operations of $9.1 million, compared to a net loss before discontinued operations of $8.2 million in the second quarter of 2019 and $12.9 million in the same quarter of last year. Net loss per share before discontinued operations attributable to TETRA shareholders during the third quarter was $0.06, unchanged from the second quarter of 2019 and from the third quarter of 2018. Adjusted per share(1) loss before discontinued operations and excluding special items, was $0.02 in the third quarter, unchanged from the second quarter of this year and the third quarter of 2018.
Brady M. Murphy, TETRA’s Chief Executive Officer, stated, “Despite a challenging North America onshore market that is experiencing a significant pullback in activity, I’m pleased with our third quarter performance. We continue to focus on differentiated offerings in each of our segments and on generating free cash flow. Our third quarter results reflect great progress on these objectives. Consolidated revenue from continuing operations was $246 million in the third quarter, down 15% sequentially and down 4% from last year. During the quarter, consolidated cash provided by operations was $46.6 million and TETRA only adjusted free cash flow from continuing operations(1) was $9.7 million, which was a significant improvement over the second quarter of this year and the third quarter of last year. Adjusted EBITDA(1) on a consolidated basis was $46 million, down from $50 million in the second quarter primarily as a result of the seasonal decline in our northern Europe industrial chemicals business, while Adjusted EBITDA as a percentage of revenue(1) improved sequentially across all three divisions. The TETRA CS Neptune® completion fluids project that we were expecting to be materially completed in the third quarter has been delayed and is now anticipated to be completed in the fourth quarter. Despite the delay in TETRA CS Neptune® completion fluids activity, our Completion Fluids & Products Division achieved income before taxes as a percentage of revenue of 19.1% and delivered solid Adjusted EBITDA as a percentage of revenue(1) of 23.7%, which is the highest Adjusted EBITDA as a percentage of revenue(1) without the benefit of TETRA CS Neptune® completion fluids sales since the fourth quarter of 2015. Our Compression Division again achieved record high gross margins and utilization for our compression services equipment. Water & Flowback Services Division income before taxes and Adjusted EBITDA(1) showed resiliency in a difficult market with income before taxes of $2.6 million and Adjusted EBITDA(1) increasing sequentially by $0.3 million to $11.2 million, outperforming the macro market indicators.
“Our Completion Fluids & Products Division continues to experience high demand for our services and products in domestic and most international offshore markets, with favorable product mix and pricing improvements that is reflected in the Division’s income before taxes of $11.3 million. In the second quarter of this year we signed a contract to provide TETRA CS Neptune® completion fluids for an ultra-deepwater Gulf of Mexico project that was expected to be materially completed towards the end of the third quarter. This project was delayed and is now expected to be completed during the fourth quarter. These type of projects are complex, ultra-deepwater wells that are prone to unforeseen challenges, making the predictability on the timing of completing the well very difficult. During the third quarter we also launched the TETRA CS Neptune® completion fluids monovalent family of products at the Society of Petroleum Engineering (SPE) Europe conference. Monovalent completion fluids are more compatible with certain reservoirs and can also provide lower corrosion rates in some applications. Feedback to-date has been very positive, and we believe that this new technology will open more opportunities to deploy our highly differentiated portfolio of TETRA CS Neptune® completion fluids. Highlighting our progress with technology differentiation, TETRA was a finalist for World Oil’s Magazine’s Best Oilfield Fluids and Chemicals Award for the TETRA Advanced Displacement System (TADS). Outside the oilfield services market, our industrial chemicals business remains strong and meaningfully contributed to our strong Completion Fluids & Products Division results and helps offset some of the volatility in our North America oilfield onshore business.
These financial measures are not in accordance with generally accepted accounting principles in the United States (“GAAP”). Please see Schedules E, F, G, H. I, J and K for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.
The following information was filed by Tetra Technologies Inc (TTI) on Thursday, November 7, 2019 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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