Exhibit 99.1

 

TETRA TECHNOLOGIES, INC. ANNOUNCES FIRST QUARTER

RESULTS AND PROVIDES TOTAL YEAR GUIDANCE

 

THE WOODLANDS, Texas, May 8, 2018 / PR Newswire / - TETRA Technologies, Inc. (“TETRA” or the “Company”) (NYSE:TTI) today announced consolidated first quarter 2018 net loss per share from continuing operations attributable to TETRA stockholders of $0.10, which compares to consolidated net loss of $0.23 per share from continuing operations attributable to TETRA stockholders in the fourth quarter of 2017, and an earnings per share from continuing operations attributable to TETRA stockholders of $0.04 in the first quarter of 2017.

 

TETRA's adjusted per share results attributable to TETRA stockholders for the first quarter of 2018, from continuing operations excluding special items, were a loss per share of $0.06, which compares to adjusted loss per share of $0.02 in the fourth quarter of 2017 and adjusted loss per share of $0.04 in the first quarter of 2017, also from continuing operations and excluding special items. First quarter 2018 revenue from continuing operations were $199 million, a decrease of 0.4% from the fourth quarter of 2017 and increase of 25% from the first quarter of last year.  

(Adjusted earnings/loss per share is a non-GAAP financial measure that is reconciled to the nearest GAAP measure in the accompanying schedules.)

First Quarter 2018 Results

 

 

Three Months Ended

 

March 31, 2018

 

December 31, 2017

 

March 31, 2017

 

(In Thousands, Except per Share Amounts)

Revenue

$

199,381

 

 

$

200,081

 

 

$

159,409

 

Net loss before discontinued operations

(21,057

)

 

(31,727

)

 

(4,245

)

Adjusted EBITDA before discontinued operations(1)

26,222

 

 

29,632

 

 

21,820

 

GAAP EPS before discontinued operations attributable to TETRA stockholders

(0.10

)

 

(0.22

)

 

0.04

 

Adjusted EPS attributable to TETRA stockholders(1)

(0.06

)

 

(0.02

)

 

(0.04

)

GAAP Net cash provided (used) by operating activities

 

(31,261

)

 

 

27,761

 

 

 

(20,538

)

TETRA only adjusted free cash flow from continuing operations(1)

$

(29,917

)

 

$

4,360

 

 

$

(8,484

)

 

    (1) Non-GAAP financial measures are reconciled to GAAP in the schedules below.

 

First Quarter Highlights include:

 

Completed the acquisition of SwiftWater Energy Services to expand its Permian Basin water management operations.

 

Completed the divestiture of TETRA’s Offshore Decommissioning Services and Maritech business.

 

CSI Compressco LP completed a $350 million offering of senior secured notes to retire its bank revolver and increase liquidity for growth capital.

 

Announced the addition of Brady Murphy as TETRA’s President and Chief Operating Officer.

 

Following the acquisition of SwiftWater and divestiture of the decommissioning and Maritech operations, TETRA will report its financial results through three operating divisions: Completion Fluids & Products, Water & Flowback Services, and Compression. The results of the decommissioning and Maritech operations are now reported as discontinued operations.

1


 

 

Water & Flowback Services adjusted EBITDA increased 18% from the fourth quarter of 2017 to $11.6 million, and was 18.9% of revenue reflecting the acquisition of Swiftwater on February 28th, in addition to strong improvements in the legacy TETRA water management operations.  Profit before taxes was $6.5 million, 10.7% of revenue.  

 

Stuart M. Brightman, TETRA’s Chief Executive Officer, stated, “During the first quarter we brought to conclusion several initiatives to streamline our business model and expand our focus on the U.S. shale plays.    With the acquisition of Swiftwater Energy Services, we significantly increased our presence in the Permian Basin water management operations, where currently more than 45% of the U.S. operating land rigs are operating. Our exposure to the rapidly recovering U.S. shale plays is now much greater across all of our business segments.  We are well positioned to participate in the stronger onshore market with improved pricing and utilization driven higher margin.  

 

“The divestiture of the offshore decommissioning operations and the Maritech operations will allow us to focus our resources and capital on those businesses where we have a competitive advantage and the returns on capital are more attractive.  Going forward, our focus will be on offshore and onshore fluids where our chemistry know-how and vertically integrated business model have proven to be strong throughout the full cycle, on water management and frac flowback services in the shale plays, and on field compression, supporting the industry's needs for equipment and services to handle the significant volumes of associated gas coming from the shale plays.

 

“CSI Compressco successfully completed a $350 million secured bond offering to provide capital to participate in the recovering markets, eliminated ongoing maintenance covenant requirements, and retired the maturing bank revolver.  Following this bond offering, the next debt maturity for CSI Compressco is in August 2022.  CSI Compressco has increased the 2018 targeted capital investments to between $90 million and $110 million to take advantage of stronger demand for gathering system compression on improved pricing and higher utilization rates.

 

“Operationally, the first quarter of 2018 reflected a strong improvement in Water and Flowback Services that led total TETRA consolidated adjusted EBITDA of $26.2 million on revenues of $199 million.  The first quarter was impacted by weather delays, particularly in our Completion Fluids & Product Division where we experienced some plant shut-downs from river flooding and our Compression Division where we experienced higher field costs to restart equipment from the unusually freezing weather conditions in January in Texas.

 

“Completion Fluids & Products revenue was $53.1 million for the first quarter of 2018, a decline of 5.6% from the first quarter of 2017.  Although the first quarter of 2018 did not include any CS Neptune® fluids projects, we are advancing several CS Neptune® opportunities that are currently targeted for the second half of the year.  Our chemical plants experienced some weather-related delays in the quarter, which forced temporary facility shutdowns.  We are currently in the midst of the traditionally strong second quarter and are seeing volumes rebound to expected levels. Completion Fluids & Products Division profit before taxes was $2.4 million (4.6% of revenue), while adjusted EBITDA was $6.2 million (11.6% of revenue).

 

“Water & Flowback Services first quarter 2018 revenue decreased slightly to $61.1 million sequentially, but was 60% above the same quarter of 2017, led by one month of SwiftWater operations and significantly stronger activity in the U.S. shale plays.  In the month of March, SwiftWater generated $8.1 million of revenue and $1.8 million of PBT, inclusive of $0.5 million of depreciation expense.  We continue to see significant opportunities in this division, particularly in the water management services, as U.S. operators struggle with the volumes of water needed for fracking operations and then handling those same volumes during the flowback phase of the completion.  The U.S. Energy Information Administration has estimated that U.S. crude oil production is now over 10 million barrels per day.  The SwiftWater acquisition has resulted in a significant amount of cross-selling opportunities that we are taking advantage of as the addition of SwiftWater has made us one of the largest water management companies in the Permian Basin.  Water & Flowback Services profit before taxes was $6.5 million (10.7% of revenue), while adjusted EBITDA was $11.6 million (18.9% of revenue).

2

 


 

 

“First quarter 2018 Compression revenue increased 2.8% sequentially to $85.4 million.  Total service fleet utilization at the end of the quarter increased 100 basis points (bps) compared to the end of the fourth quarter, to 84.2%.  Utilization for large horsepower equipment, greater than 1000 hp per unit, increased to 92.9%. New equipment orders of $71.5 million were received in the first quarter, resulting in a backlog of $102.5 million at the end of the first quarter after a record $67 million order to fabricate and sell 45 large horsepower compressors to a midstream operator in the Permian Basin.  Compression loss before tax for the quarter ended March 31, 2018 was $14.0 million compared to a $9.7 million loss for the fourth quarter of 2017 and $14.3 million loss for the first quarter of 2017.  Adjusted EBITDA was $18.9 million, compared to $19.2 million in the fourth quarter.  During the quarter we incurred approximately $1 million of costs for weather related events.  On April 20, 2018, CSI Compressco LP declared a cash distribution attributable to the first quarter of 2018 of $0.1875 per outstanding common unit, which will be paid on May 15, 2018 to common unitholders of record as of the close of business on May 1, 2018.  The distribution coverage ratio for the first quarter of 2018 was 0.64X.”

 

Free Cash Flow and Balance Sheet

 

Consolidated net use of cash from operating activities for the first quarter of 2018 was $31.3 million, compared to $27.8 million cash generated in the fourth quarter of 2017.  TETRA only adjusted free cash flow in the first quarter was a net use of $31.2 million reflecting an unusually high increase in working capital that we expect to monetize during the second and third quarters.  Consolidated net debt was $719 million, while TETRA only net debt was $177 million.  At the end of the first quarter TETRA only cash on hand was $14.0 million.  With a strong balance sheet, TETRA is positioned to invest opportunistically into the recovering market.

 

 

Special items

 

Special items, including Discontinued Operations, that were incurred in the first quarter, as detailed on Schedule E, include the following:

 

 

Discontinued operations pre-tax loss of $44.0 million from Offshore Decommissioning and Maritech

 

$3.5 million non-cash prior debt issuance expense associated with the termination of CSI Compressco revolver

 

$2.0 million non-cash income for a fair value adjustment of the outstanding TETRA warrants

 

$1.4 million non-cash expense for a fair value adjustment of the CSI Compressco Series A Convertible Preferred units

 

$1.0 million charge for transaction related expenses and other special charges

 

            Additionally, a normalized tax rate of 21% is reflected in Adjusted Net Income, as shown on Schedule E.

 


3

 


 

Total Year 2018 Guidance

 

We expect total year 2018 revenue from continuing operations to be between $945 million and $985 million with consolidated adjusted EBITDA of between $168 million and $188 million. Total year projected loss before taxes is expected to be between $7.5 and $27.5 million. The table below reflects our total year expectations by division.  Completions Fluids & Products is projecting two CS Neptune® projects in the second half of the year.  Water & Flowback Services are expected to be driven by strong activity levels in the Permian Basin and other shale play markets.  The improvement in Compression from the first quarter levels is projected to reflect a stronger price environment, higher equipment sales from the $102.5 million backlog, the deployment of incremental capital, and higher aftermarket services activity.

 

 

 

 

Low

 

High

 

 

( $ in Millions)

Revenue

 

 

 

 

 

Completion Fluids & Products

$      275

 

$      290

 

Water & Flowback Services

$      285

 

$      295

 

Compression

$      385

 

$      400

Total Revenue

$      945

 

$      985

 

 

 

 

 

 

 

 

 

Low

 

High

EBITDA

 

 

 

 

 

Completion Fluids & Products

$         55

 

$         62

 

Water & Flowback Services

$         60

 

$         66

 

Compression

$         93

 

$         98

 

Corporate & Other

$       (40)

 

$       (38)

Total EBITDA

$       168

 

$       188

 

 

 

 

 

Projected total year capital expenditures for TETRA only are expected to be between $40 million and $50 million. CSI Compressco capital expenditures are expected to be between $90 million and $110 million inclusive of maintenance capital expenditures of between $15 million and $20 million.

 

Projected total year TETRA only free cash flow is expected to be between $15 million and $25 million inclusive of distributions from CSI Compressco.

 

Schedule J reconciles projected adjusted EBITDA to profit before taxes.

 

Conference Call

 

TETRA will host a conference call to discuss these results today, May 8, 2018, at 10:30 a.m. ET. The phone number for the call is 888-347-5303. The conference will also be available by live audio webcast and may be accessed through TETRA's website at www.tetratec.com. A replay of the conference call will be available at 1-877-344-7529, conference number 10115959, for one week following the conference call and the archived webcast call will be available through the Company’s website for thirty days following the conference call.

 


4

 


 

Investor Contact

 

TETRA Technologies, Inc., The Woodlands, Texas

Stuart M. Brightman, 281-367-1983

www.tetratec.com

 

Financial Statements, Schedules and Non-GAAP Reconciliation Schedules (Unaudited)

 

Schedule A: Consolidated Income Statement

Schedule B: Financial Results By Segment

Schedule C: Consolidated Balance Sheet

Schedule D: Long-Term Debt

Schedule E: Special Items

Schedule F: Non-GAAP Reconciliation to GAAP Financials

Schedule G: Non-GAAP Reconciliation of TETRA Net Debt

Schedule H: Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash Flow

Schedule I: Non-GAAP Reconciliation to TETRA Only Adjusted Cash Flow From Continuing Operations

Schedule J: Non-GAAP Reconciliation to Total Year Guidance Adjusted EBITDA

 

 

Company Overview and Forward-Looking Statements

 

TETRA is a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, water management, frac flowback, production well testing, and compression services and equipment.  TETRA owns an equity interest, including all of the general partner interest, in CSI Compressco LP (NASDAQ:CCLP), a master limited partnership.

 

This news release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as “may,” “expect,” “intend,” “estimate,” “projects,” “anticipate,” “believe,” “assume,” “could,” “should,” “plans,” “targets” or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements that the Company intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements concerning the anticipated recovery of the oil and gas industry, expected benefits from the acquisition of Swiftwater Energy Services and expected results of operational business segments for 2018, including levels of cash distributions per unit, projections concerning the Company's business activities, financial guidance, estimated earnings, earnings per share, and statements regarding the Company's 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 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 “Risk Factors” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, 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.

 

5

 


 

Schedule A: Consolidated Income Statement (Unaudited)

 

Three Months Ended
 March 31,

 

2018

 

2017

 

(In Thousands, Except per Share Amounts)

Revenues

$

199,381

 

 

$

159,409

 

 

 

 

 

Cost of sales, services, and rentals

144,957

 

 

113,231

 

Depreciation, amortization, and accretion

26,441

 

 

26,524

 

Total cost of revenues

171,398

 

 

139,755

 

Gross profit

27,983

 

 

19,654

 

 

 

 

 

General and administrative expense

30,803

 

 

26,751

 

Interest expense, net

14,973

 

 

13,767

 

Warrants fair value adjustment income

(1,994

)

 

(5,976

)

CCLP Series A Preferred fair value adjustment

1,358

 

 

1,631

 

Litigation arbitration award income

 

 

(12,816

)

Other (income) expense, net

2,776

 

 

461

 

Loss before taxes and discontinued operations

(19,933

)

 

(4,164

)

Provision (benefit) for income taxes

1,124

 

 

81

 

Loss before discontinued operations

(21,057

)

 

(4,245

)

Discontinued operations:

 

 

 

Loss from discontinued operations (including 2018 loss on disposal of $31.5 million), net of taxes

(41,706

)

 

(7,007

)

Net loss

(62,763

)

 

(11,252

)

Loss attributable to noncontrolling interest

9,115

 

 

8,789

 

Net loss attributable to TETRA stockholders

$

(53,648

)

 

$

(2,463

)

 

 

 

 

Basic per share information:

 

 

 

Loss before discontinued operations attributable to TETRA stockholders

$

(0.10

)

 

$

0.04

 

Loss from discontinued operations attributable to TETRA stockholders

$

(0.36

)

 

$

(0.06

)

Net loss attributable to TETRA stockholders

$

(0.46

)

 

$

(0.02

)

Weighted average shares outstanding

117,598

 

114,197

 

 

 

 

Diluted per share information:

 

 

 

Loss before discontinued operations attributable to TETRA stockholders

$

(0.10

)

 

$

0.04

 

Loss from discontinued operations attributable to TETRA stockholders

$

(0.36

)

 

$

(0.06

)

Net loss attributable to TETRA stockholders

$

(0.46

)

 

$

(0.02

)

Weighted average shares outstanding

117,598

 

 

114,197

 

 

 

6

 


 

Schedule B: Financial Results By Segment (Unaudited)

 

Three Months Ended
 March 31,

 

2018

 

2017

 

(In Thousands)

Revenues by segment:

 

 

 

Completion Fluids & Products Division

$

53,104

 

 

$

56,228

 

Water & Flowback Services Division

61,075

 

 

38,179

 

Compression Division

85,422

 

 

65,559

 

Eliminations and other

(220

)

 

(557

)

Total revenues

$

199,381

 

 

$

159,409

 

 

 

 

 

Gross profit (loss) by segment:

 

 

 

Completion Fluids & Products Division

$

6,686

 

 

$

11,330

 

Water & Flowback Services Division

11,404

 

 

2,248

 

Compression Division

10,040

 

 

6,163

 

Corporate overhead and eliminations

(146

)

 

(87

)

Total gross profit

$

27,984

 

 

$

19,654

 

 

 

 

 

Income (loss) before taxes by segment:

 

 

 

Completion Fluids & Products Division

$

2,449

 

 

$

19,473

 

Water & Flowback Services Division

6,548

 

 

(1,265

)

Compression Division

(14,018

)

 

(14,333

)

Corporate overhead and eliminations

(14,912

)

 

(8,039

)

Total income (loss) before taxes

$

(19,933

)

 

$

(4,164

)

 

 

Please note that the above results by Segment include special charges and expenses. Please see Schedules E and F for details of those special items.

 

7

 


 

Schedule C: Consolidated Balance Sheet (Unaudited)

 

March 31, 2018

 

December 31, 2017

 

(In Thousands)

Balance Sheet:

 

 

 

Cash (excluding restricted cash)

$

104,113

 

 

$

26,128

 

Accounts receivable, net

175,262

 

 

144,051

 

Inventories

127,925

 

 

115,438

 

Assets of discontinued operations

7,907

 

 

121,092

 

Other current assets

31,596

 

 

17,900

 

PP&E, net

824,768

 

 

809,432

 

Other assets

136,691

 

 

74,573

 

Total assets

$

1,408,262

 

 

$

1,308,614

 

 

 

 

 

Liabilities of discontinued operations

$

14,287

 

 

$

71,874

 

Other current liabilities

143,474

 

 

148,026

 

Long-term debt (1)

823,565

 

 

629,855

 

Long-term portion of decommissioning liabilities

11,929

 

 

11,738

 

CCLP Series A Preferred

54,214

 

 

61,436

 

Warrant liability

11,207

 

 

13,202

 

Other long-term liabilities

24,125

 

 

19,922

 

Equity

325,461

 

 

352,561

 

Total liabilities and equity

$

1,408,262

 

 

$

1,308,614

 

 

(1) Please see Schedule D for the separate debt obligations of TETRA and CSI Compressco LP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 


 

Schedule D: Long-Term Debt

 

TETRA Technologies Inc. and its subsidiaries, other than CSI Compressco LP and its subsidiaries, are obligated under a bank credit agreement and senior note, neither of which are obligations of CSI Compressco LP and its subsidiaries. CSI Compressco LP and its subsidiaries are obligated under senior notes and senior secured notes, neither of which are obligations of TETRA and its other subsidiaries. Amounts presented are net of deferred financing costs.

 

 

 

March 31, 2018

 

December 31, 2017

 

(In Thousands)

TETRA

 

 

 

Bank revolving line of credit facility

$

73,143

 

 

$

 

TETRA 11% Senior Note

118,008

 

 

117,679

 

TETRA total debt

191,151

 

 

117,679

 

Less current portion

 

 

 

TETRA total long-term debt

$

191,151

 

 

$

117,679

 

 

 

 

 

CSI Compressco LP

 

 

 

Bank Credit Facility

$

 

 

$

223,985

 

7.25% Senior Notes

288,588

 

 

288,191

 

7.50% Senior Secured Notes

343,826

 

 

 

Total debt

632,414

 

 

512,176

 

Less current portion

 

 

 

CCLP total long-term debt

$

632,414

 

 

$

512,176

 

Consolidated total long-term debt

$

823,565

 

 

$

629,855

 

 

Non-GAAP Financial Measures

 

In addition to financial results determined in accordance with GAAP, this news release includes the following non-GAAP financial measures for the Company: net debt, adjusted consolidated and segment income (loss) before taxes, excluding special charges; consolidated and segment adjusted EBITDA; and TETRA only adjusted free cash flow and TETRA only free cash flow from continuing operations. The following schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The non-GAAP financial measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with GAAP, as more fully discussed in the Company’s financial statements and filings with the Securities and Exchange Commission.

 

Management believes that the exclusion of the special charges from the historical results of operations enables management to evaluate more effectively the Company’s operations over the prior periods and to identify operating trends that could be obscured by the excluded items.

 

Adjusted income (loss) before taxes (and adjusted income (loss) before taxes as a percent of revenue) is defined as the Company’s (or the segment’s) income (loss) before taxes, excluding certain special or other charges (or credits). Adjusted income (loss) before taxes (and adjusted income (loss) before taxes as a percent of revenue) is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.

 

9

 


 

Adjusted diluted earnings (loss) per share is defined as the Company’s diluted earnings (loss) per share excluding certain special or other charges (or credits) and using a normalized effective income tax rate. Adjusted diluted earnings (loss) per share is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.

 

Adjusted EBITDA (and adjusted EBITDA as a percent of revenue) is defined as earnings before interest, taxes, depreciation, amortization, impairments and special charges or credits, equity compensation, and allocated corporate overhead charges to our CSI Compressco LP subsidiary, pursuant to our Omnibus Agreement, which were reimbursed with CSI Compressco LP common units. Adjusted EBITDA (and adjusted EBITDA as a percent of revenue) is used by management as a supplemental financial measure to assess the financial performance of the Company’s assets, without regard to financing methods, capital structure or historical cost basis and to assess the Company’s ability to incur and service debt and fund capital expenditures.

 

TETRA only adjusted free cash flow is defined as cash from TETRA’s operations, excluding cash settlements of Maritech AROs, less capital expenditures net of sales proceeds and cost of equipment sold, and including cash distributions to TETRA from CSI Compressco LP. TETRA only adjusted free cash flow from continuing operations is defined as TETRA only adjusted free cash flow less the discontinued operations EBITDA and discontinued operations capital expenditures. Management uses these supplemental financial measures to:

 

assess the Company’s ability to retire debt;

 

evaluate the capacity of the Company to further invest and grow; and

 

to measure the performance of the Company as compared to its peer group of companies.

 

TETRA only adjusted free cash flow and TETRA only adjusted free cash flow from continuing operations does not necessarily imply residual cash flow available for discretionary expenditures, as it excludes cash requirements for debt service or other non-discretionary expenditures that are not deducted.

 

TETRA net debt is defined as the sum of the carrying value of long-term and short-term debt on its consolidated balance sheet, less cash, excluding restricted cash on the consolidated balance sheet and excluding the debt and cash of CSI Compressco LP. Management views TETRA net debt as a measure of TETRA’s ability to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund investing and financing activities.

 


10

 


 

Schedule E: Special Items

 

Three Months Ended

 

March 31, 2018

 

Income (Loss) Before Tax

Provision (Benefit) for Tax

Noncont. Interest

Net Income Attributable to TETRA Stockholders

Diluted EPS

 

(In Thousands, Except per Share Amounts)

Income (loss) attributable to TETRA stockholders, excluding special items and discontinued operations

$

(16,067

)

$

(3,375

)

$

(5,896

)

$

(6,796

)

$

(0.06

)

Severance expense

(73

)

(15

)

 

(58

)

0.00

 

Stock warrant fair value adjustment

1,994

 

419

 

 

  1,575

 

0.01

 

Convertible Series A preferred fair value adjustments

(1,358

)

(285

)

(981

)

(92

)

0.00

 

Prior debt issuance cost

(3,541

)

(744

)

(2,238

)

(559

)

0.00

 

Transaction costs

(888

)

(186

)

 

(702

)

(0.01

)

Effect of deferred tax valuation allowance and other related tax adj.

 

5,310

 

 

(5,310

)

(0.05

)

Net income (loss) before discontinued operations

(19,933)

 

1,124

 

(9,115)

 

(11,942)

 

(0.10)

 

Loss from discontinued operations

 

 

 

 

 

 

(41,706

)

(0.36

)

Net Income (loss) attributable to TETRA stockholders, as reported

 

 

 

 

 

 

 

 

 

$

(53,648

)

$

(0.46

)

 

 

Three Months Ended

 

December 31, 2017

 

Income (Loss) Before Tax

Provision (Benefit) for Tax

Noncont. Interest

Net Income Attributable to TETRA Stockholders

Diluted EPS

 

(In Thousands, Except per Share Amounts)

Income (loss) attributable to TETRA stockholders, excluding special items and discontinued operations

$

(11,475

)

$

(4,175

)

$

(5,150

)

$

(2,150

)

$

(0.02

)

Asset Impairment, including inventory adjustments

(14,784

)

(4,435

)

 

(10,349

)

(0.09

)

Severance expense

(87

)

(26

)

 

(61

)

0.00

 

Stock warrant fair value adjustment

(6,266

)

(1,880

)

 

(4,386

)

(0.04

)

Bad debt expense from customer bankruptcies

(100

)

(30

)

 

(70

)

0.00

 

Convertible Series A preferred fair value adjustments

(1,365

)

(410

)

(965

)

10

 

0.00

 

Software implementation

(194

)

(58

)

(120

)

(16

)

0.00

 

Transaction Costs

(881

)

(264

)

 

(617

)

(0.01

)

Effect of deferred tax valuation allowance and other related tax adj.

 

7,853

 

 

(7,853

)

(0.07

)

Net income (loss) before discontinued operations

(35,152)

 

(3,425)

 

(6,235)

 

(25,492)

 

(0.22

)  

Loss from discontinued operations

 

 

 

 

 

 

(3,247

)

(0.3

)

Net Income (loss) attributable to TETRA stockholders, as reported

 

 

 

 

 

 

 

 

 

$

(28,739

)

$

(0.25

)

 

 

11

 


 

 

Three Months Ended

 

March 31, 2017

 

Income (Loss) Before Tax

Provision (Benefit) for Tax

Noncont. Interest

Net Income Attributable to TETRA Stockholders

Diluted EPS

 

(In Thousands, Except per Share Amounts)

Income (loss) attributable to TETRA stockholders, excluding special items and discontinued operations

$

(20,869

)

$

(8,170

)

$

(7,647

)

$

(5,052

)

$

(0.04

)

Severance expense

(345

)

(104

)

(33

)

(208

)

 

Stock warrant fair value adjustment

5,976

 

1,793

 

 

4,183

 

0.04

 

Allowance for Bad Debt

(103

)

(31

)

 

(72

)

 

Convertible Series A preferred fair value adjustments

(1,631

)

(489

)

(1,109

)

(33

)

 

ARO adjustment (Accretion)

(71

)

(21

)

 

(50

)

 

Legal settlement

12,879

 

3,864

 

 

9,015

 

0.08

 

Effect of deferred tax valuation allowance and other related tax adj.

 

3,239

 

 

(3,239

)

(0.03

)

Net income (loss) before discontinued operations

(4,164)

 

81

 

(8,789)

 

4,544

 

0.04

 

Loss from discontinued operations

 

 

 

 

 

 

(7,007

)

(0.06

)

Net Income (loss) attributable to TETRA stockholders, as reported

 

 

 

 

 

 

 

 

 

(2,463

)

$

(0.02

)


12

 


 

Schedule F: Non-GAAP Reconciliation to GAAP Financials

 

Three Months Ended

 

March 31, 2018

 

Net Income (Loss), as reported

Tax Provision

Income (Loss) Before Tax, as Reported

Impairments & Special Charges

Adjusted Income (Loss) Before Tax

Interest Expense

Adjusted
Depreciation & Amortization

Equity Comp. Expense

Omnibus Equity

Adjusted EBITDA

 

(In Thousands)

Completion Fluids & Products Division

 

 

$

2,449

 

$

70

 

$

2,519

 

$

(233

)

$

3,901

 

$

 

$

 

$

6,187

 

Water & Flowback Services Division

 

 

6,548

 

3

 

6,551

 

(15

)

5,027

 

 

 

11,563

 

Compression Division

 

 

(14,018

)

4,898

 

(9,120

)

11,214

 

17,367

 

(604

)

 

18,857

 

Eliminations and other

 

 

 

 

 

(5

)

 

 

(5

)

Subtotal

 

 

(5,021

)

4,971

 

(50

)

10,966

 

26,290

 

(604

)

 

36,602

 

Corporate and other

 

 

(14,912

)

(1,106

)

(16,018

)

4,007

 

151

 

1,480

 

 

(10,380

)

TETRA excluding Discontinued Operations

(21,057)

1,124

(19,933

)

3,865

 

(16,068

)

14,972

 

26,441

 

876

 

 

26,222

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

Net Income (Loss), as reported

Tax Provision

Income (Loss) Before Tax, as Reported

Impairments & Special Charges

Adjusted Income (Loss) Before Tax

Adjusted Interest Expense, Net

Adjusted
Depreciation & Amortization

Equity Comp. Expense

Omnibus Equity

Adjusted EBITDA

 

(In Thousands)

Completion Fluids & Products Division

 

 

$

6,406

 

$

83

 

$

6,489

 

$

(85

)

$

4,018

 

$

 

$

 

$

10,422

 

Water & Flowback Services Division

 

 

(9,718

)

15,211

 

5,493

 

(3

)

4,327

 

 

 

9,817

 

Compression Division

 

 

(9,719

)

1,559

 

(8,160

)

10,985

 

17,280

 

(934

)

 

19,171

 

Eliminations and other

 

 

5

 

 

5

 

 

(5

)

 

 

 

Subtotal

 

 

(13,026

)

16,853

 

3,827

 

10,897

 

25,620

 

(934

)

 

39,410

 

Corporate and other

 

 

(22,126

)

7,147

 

(14,979

)

3,600

 

182

 

1,419

 

 

(9,778

)

TETRA excluding Discontinued Operations

(32,062)

(3,090)

(35,152

)

24,000

 

(11,152

)

14,497

 

25,802

 

485

 

 

29,632

 

 

 

 

 

 

 

 

 

 

 

 

13

 


 

 

Three Months Ended

 

March 31, 2017

 

Net Income (Loss), as reported

Tax Provision

Income (Loss) Before Tax, as Reported

Impairments & Special Charges

Adjusted Income (Loss) Before Tax

Adjusted Interest Expense, Net

Adjusted
Depreciation & Amortization(1)

Equity Comp. Expense

Omnibus Equity

Adjusted EBITDA

 

(In Thousands)

Completion Fluids & Products Division

 

 

$

19,473

 

$

(12,681

)

$

6,792

 

$

13

 

$

4,046

 

$

 

$

 

$

10,851

 

Water & Flowback Services Division

 

 

(1,265

)

265

 

(1,000

)

(122

)

5,023

 

 

 

3,901

 

Compression Division

 

 

(14,333

)

1,687

 

(12,646

)

10,102

 

17,297

 

956

 

1,746

 

17,455

 

Eliminations and other

 

 

(167

)

 

(167

)

 

(5

)

 

 

(172

)

Subtotal

 

 

3,708

 

(10,729

)

(7,021

)

9,993

 

26,361

 

956

 

1,746

 

32,035

 

Corporate and other

 

 

(7,872

)

(5,976

)

(13,848

)

3,774

 

92

 

1,513

 

(1,746

)

(10,215

)

TETRA excluding Discontinued Operations

(4,245)

81

(4,164

)

(16,705

)

(20,869

)

13,767

 

26,453

 

2,469

 

 

21,820

 

 

 

 

 

 

 

 

 

 

 

 

(1) Adjusted depreciation & amortization, net, for the three month period ended March 31, 2017, excludes $0.1 million of certain accretion expense which is included as a special charge.

 


14

 


 

Schedule G: Non-GAAP Reconciliation of TETRA Net Debt

 

The cash and debt positions of TETRA and CSI Compressco LP as of December 31, 2017, are shown below. TETRA and CSI Compressco LP’s credit and debt agreements are distinct and separate with no cross default provisions, no cross collateral provisions and no cross guarantees. Management believes that the most appropriate method to analyze the debt positions of each entity is to view them separately, as noted below.

 

The following reconciliation of net debt is presented as a supplement to financial results prepared in accordance with GAAP.

 

 

March 31, 2018

 

TETRA

 

CCLP

 

Consolidated

 

(In Millions)

Non-restricted cash

$

14.0

 

 

$

90.1

 

 

$

104.1

 

 

 

 

 

 

 

Carrying value of long-term debt:

 

 

 

 

 

Revolver debt outstanding

73.1

 

 

 

 

73.1

 

Senior Notes outstanding

118.0

 

 

632.4

 

 

750.4

 

Net debt

 

$

177.1

 

 

$

542.3

 

 

$

719.4

 

 

 

 

 

 

 

15

 


 

Schedule H: Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash Flow

 

 

Three Months Ended

 

 

March 31, 2018

 

December 31, 2017

 

March 31, 2017

 

 

 

(In Thousands)

 

 

Consolidated

 

 

 

 

 

 

 

Net cash provided (used) by operating activities

$

(31,261

)

 

$

27,761

 

 

$

(20,538

)

 

 

ARO settlements

 

 

15

 

 

474

 

 

 

Capital expenditures, net of sales proceeds

(28,816

)

 

(23,260

)

 

(4,812

)

 

 

Consolidated adjusted free cash flow

(60,077

)

 

4,516

 

 

(24,876

)

 

 

 

 

 

 

 

 

 

 

CSI Compressco LP

 

 

 

 

 

 

 

Net cash provided by operating activities

(365

)

 

14,496

 

 

1,821

 

 

 

Capital expenditures, net of sales proceeds

(17,039

)

 

(11,413

)

 

(7,215

)

 

 

CSI Compressco free cash flow

(17,404

)

 

3,083

 

 

(5,394

)

 

 

 

 

 

 

 

 

 

 

TETRA Only

 

 

 

 

 

 

 

Cash from operating activities (1)

(30,896

)

 

13,265

 

 

(20,327

)

 

 

ARO settlements

 

 

15

 

 

474

 

 

 

Capital expenditures, net of sales proceeds (1)

(11,777

)

 

(11,847

)

 

371

 

 

 

Free cash flow before ARO settlements

(42,673

)

 

1,433

 

 

(19,482

)

 

 

Distributions from CSI Compressco LP

2,954

 

 

2,905

 

 

5,635

 

 

 

Adjusted TETRA only free cash flow

$           (39,719

)

 

$           4,338

 

 

$           (13,847

)

 

 

 

 

(1)

TETRA only cash from operating activities and capital expenditures, net, for the three months ended March 31, 2017, include the elimination of an intercompany equipment sale of $2.0 million.


16

 


 

Schedule I: TETRA Only Adjusted Cash Flow From Continuing Operations

 

Three Months Ended

 

March 31, 2018

 

December 31, 2017

 

March 31, 2017

 

 

 

 

(In Thousands)

TETRA Only

 

 

 

 

 

Cash from operating activities

$         (30,896)

 

$            13,265

 

$         (20,327)

 

 

 

 

 

 

Less: Discontinued operations operating activities (adjusted EBITDA)(1)

(8,176)

 

147

 

(4,062)

 

 

 

 

 

 

 

 

 

 

 

 

Cash from continued operating activities

(22,720)

 

13,118

 

(16,265)

 

 

 

 

 

 

Less: Continuing operations capital expenditures(2)

(10,151)

 

(11,663)

 

2,146

 

 

 

 

 

 

Plus: Distributions from CSI Compressco LP

2,954

 

2,905

 

5,635

 

 

 

 

 

 

TETRA only adjusted free cash flow from continuing operations

$         (29,917)

 

$              4,360

 

$           (8,484)

 

(1) Reconciled to loss from discontinued operations as follows:

 

Three Months Ended

 

March 31, 2018

 

December 31, 2017

 

March 31, 2017

 

 

 

 

(In Thousands)

   Loss from discontinued operations

(41,706)

 

(3,247)

 

(7,007)

   Plus: Income tax provision (benefit)

(2,327)

 

335

 

(9)

   Plus: Depreciation & amortization

2,069

 

3,059

 

2,954

   Plus: loss on disposal of discontinued operations

33,788

 

 

Less: Discontinued operations adjusted EBITDA

(8,176)

 

147

 

(4,062)

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Reconciled to TETRA only capital expenditures as follows:

 

Three Months Ended

 

March 31, 2018

 

December 31, 2017

 

March 31, 2017

 

 

 

 

(In Thousands)

 

 

 

 

 

 

   TETRA only capital expenditures

(11,777)

 

(11,847)

 

371

   Less: Discontinued operations capital expenditures

(1,626)

 

(184)

 

(1,775)

Plus: Continuing operations capital expenditures

(10,151)

 

(11,663)

 

2,146

 

 

 

 

 

 

 

 


17

 


 

Schedule J: Non-GAAP Reconciliation to TETRA Projected 2018 Adjusted EBITDA

 

EBITDA Reconciliation Table for adjusted EBITDA of $168 million

 

Adjusted EBITDA

Equity Comp Expense

DD&A

Interest Expense

Adj Income Before Tax

Impairments & Special Charges

Income before Tax

 

(In Millions)

Completion Fluids & Products

$     55.0

$                -  

$     17.0

$              -  

$           38.0

$                  -

$            38.0

Water & Flowback Services

$     60.0

$                -  

$     23.0

$              -  

$            37.0

$                  -  

$            37.0

Compression(1)

$     93.0

$            2.5

$     72.0

$         53.0

$          (34.5)

$              5.0

$          (39.5)

Corporate & Other

$   (40.0)

$            6.0

$       0.5

$         17.5

$          (64.0)

$            (1.0)  

$          (63.0)

Total EBITDA

$   168.0

$            8.5

$   112.5

$        70.5

$          (23.5)

$              4.0

$          (27.5)

 

EBITDA Reconciliation Table for adjusted EBITDA of $188 million

 

Adjusted EBITDA

Equity Comp Expense

DD&A

Interest Expense

Adj Income Before Tax

Impairments & Special Charges

Income before Tax

 

(In Millions)

Completion Fluids & Products

$     62.0

$                -  

$     17.0

$              -  

$            45.0

$                  -

$            45.0

Water & Flowback Services

$     66.0

$                -  

$     23.0

$              -  

$            43.0

$                  -  

$            43.0

Compression(1)

$     98.0

$            2.5

$     72.0

$         53.0

$          (29.5)

$              5.0

$          (34.5)

Corporate & Other

$   (38.0)

$            6.0

$       0.5

$         17.5

$          (62.0)

$            (1.0)  

$          (61.0)

Total EBITDA

$   188.0

$            8.5

$   112.5

$         70.5

$            (3.5)

$              4.0

$            (7.5)

 

(1)  Does not include the favorable impact to adjusted EBITDA from approximately $2 million of used units cost of goods sold.

 

18

 

View differences made from one to another to evaluate Tetra Technologies Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Tetra Technologies Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account