THE WOODLANDS, Texas,
Nov. 3, 2020 /PRNewswire/ -- TETRA Technologies, Inc. ("TETRA"
or the "Company") (NYSE: TTI) today announced third quarter 2020
results.
Third quarter 2020 revenue of $153
million decreased 21% from the second quarter of 2020 and
compares to a 36% decline in US onshore rig activity. Net
loss before discontinued operations for the third quarter of 2020
was $21 million, inclusive of
$2.9 million of non-recurring charges
and expenses. This compares to a net loss before discontinued
operations of $37 million in the
second quarter of 2020, inclusive of $20.9
million of non-recurring charges and expenses. Net
loss per share attributable to TETRA stockholders in the third
quarter of 2020 was $0.10.
Excluding the non-recurring charges and expenses, the net loss per
share attributable to TETRA stockholders was $0.09. Consolidated Adjusted EBITDA before
discontinued operations was $30.3
million and compares to $35.3
million in the second quarter of 2020. Consolidated cash
provided by operating activities in the third quarter of 2020 was
$4.4 million, compared to
$38.2 million in the second quarter
of 2020. TETRA only cash from operating activities was
$8.9 million, compared to
$33.4 million in the second quarter
of 2020, while TETRA only adjusted free cash flow from continuing
operations was $7.7 million, compared
to $31.2 million in the second
quarter of 2020.
Financial Highlights
- Completion Fluids & Products income before taxes was
$11.8 million, or 22.6% of revenue,
while Adjusted EBITDA was $13.9
million, or 26.8% of revenue.
- Water & Flowback Services loss before taxes was
$7.7 million, while Adjusted EBITDA
was positive at $35,000 despite
North America land completion
activity hitting historical lows during the quarter.
- Compression loss before taxes was $11.3
million, or (14.3)% of revenue, while Adjusted EBITDA was
$22.9 million, or 29.0% of
revenue.
- TETRA only adjusted third quarter free cash flow from
continuing operations was $7.7
million, which is the sixth quarter in a row with positive
TETRA only adjusted free cash flow. TETRA only cash from operating
activities for the nine months ended September 30, 2020 was $51.1 million. TETRA only adjusted free cash flow
for the first nine months of 2020 is $43.5
million, an improvement of $66.6M over the same period a year ago.
This press release includes the following financial measures
that are not presented in accordance with generally accepted
accounting principles in the United
States ("GAAP"): Adjusted earnings per share attributable to
TETRA stockholders, Adjusted EBITDA, and Adjusted EBITDA Margin
(Adjusted EBITDA as a percent of revenue) on consolidated and
segment basis, Adjusted income (loss) before tax, TETRA-only
adjusted free cash flow from continuing operations, and net
debt. Please see Schedules E through K for reconciliations of
these non-GAAP financial measures to the most directly comparable
GAAP measures.
Brady Murphy, TETRA's Chief
Executive Officer, stated, "Third quarter activity continued to
decline from the impacts of COVID-19 while hurricanes in the
Gulf of Mexico added to this
challenging environment. Despite these challenges we
continued to deliver strong Adjusted EBITDA margins of 26.8% for
our Completion Fluids & Products Segment and 29.0% for our
Compression Segment. Additionally, our onshore Water and
Flowback Services segment remained Adjusted EBITDA positive despite
a historic decline on US onshore completion activity levels.
All these contributed towards another quarter where we generated
positive free cash flow despite the headwinds faced by our
industry. I am pleased with our team's focus on executing the
plans we have put in place to mitigate the unprecedented market
challenges. Our vertically integrated fluids model and
introduction of automation and technology for the onshore
businesses has allowed us to perform well relative to the market
and continue to deliver cost effective solutions to our
customers. Consolidated Adjusted EBITDA margins before
discontinued operations improved 150 basis points compared to the
second quarter of 2020 despite revenue decreasing 21% sequentially.
Completion Fluids & Products segment and the Compression
segment improved Adjusted EBITDA margins both sequentially and year
on year. Water & Flowback Services revenue decreased 13%
in the third quarter compared to the second quarter but activity in
September and for the balance of the year is showing a meaningful
increase as incremental frac crews are deployed. By being
disciplined on capital spending while continuing to aggressively
manage working capital, we generated positive TETRA Only adjusted
free cash flow for the sixth consecutive quarter.
"Completion Fluids & Products segment third quarter income
before tax margin was 22.6% while Adjusted EBITDA margin was 26.8%
despite revenue decreasing sequentially 27%. The revenue drop
was mainly due to the seasonality of the Northern European
business, which peaks in the second quarter of each year, and from
delays in Gulf of Mexico projects
due to the two hurricanes that occurred in the third quarter.
Our vertically integrated business model and diverse revenue stream
continues to produce strong Adjusted EBITDA margins at or above our
internal targets. Higher international sales, mainly in the
Middle East and Europe, offset weaker Gulf of Mexico activity. During the
third quarter our Lake Charles calcium chloride chemical plant
production was impacted by hurricane Laura, however we have been
able to meet our customer needs by fulfilling orders from other
facilities, mitigating any potential negative impact.
"Water & Flowback Services third quarter 2020 revenue of
$21.5 million, decreased 13% from the
second quarter of 2020 and compares to the 36% decrease in U.S.
onshore rig activity. Through ongoing cost management,
aggressive deployment of new technologies and focus on automation
and remote monitoring, third quarter Adjusted EBITDA was slightly
above breakeven despite the lower revenue. Our
BlueLinxTM automated control system solution
continues to be deployed on all of our integrated water management
projects. The number of integrated projects increased
progressively throughout the quarter. In September, 63% of
our water management projects were integrated projects, and we
expect this to increase further as activity slowly recovers in
North America. Through most
of the quarter, we achieved maximum utilization for our TETRA
SandStormTM Advanced Cyclone Technology
("SandStorm") for sand separation, while continuously introducing
this technology to new customers. As an example, in the third
quarter 2020, we were asked by a new customer in the Appalachian
region to trial our SandStormTM head-to-head against
their current service provider's technology. During this
trial, SandStorm was able to achieve 99.4% sand filtration,
far exceeding their existing solution, with zero wash downstream
and at peak rate of 40Mscfpd. We are now working with this
customer to displace our competitor's technology.
Furthermore, these results showcase that our
SandStorm technology works equally well on high pressure gas
wells as it does in liquid plays.
"Our Compression segment's performance for third quarter 2020
was in line with our expectations with a loss before taxes of
$11.3 million and Adjusted EBITDA of
$22.9 million. Compression
Services gross margins decreased sequentially by 200 basis points
mainly due to revenue decreasing 5% sequentially. Utilization
declined from 82.1% at the end of the second quarter of 2020 to
80.3% at the end of the third quarter. We exited the third
quarter of 2020 with only 8% of our US domestic fleet on standby
rates, compared to a high of 20% during the second quarter, a major
improvement as most of our large, well-capitalized customers
started bringing wells back online. Aftermarket Services gross
margins modestly improved 20 basis points sequentially despite a
12% decline in revenue. Aftermarket Services should gain
momentum in 2021 as customers deferred maintenance in 2020 due to
capital constraints. CSI Compressco completed the sale of their
Midland, Texas fabrication
facility and real estate in July for $17
million in gross cash proceeds. CSI Compressco
announced that it has completed or expects to complete the sale of
non-strategic and underutilized assets in three separate
transactions for a total of $13
million during the third and fourth quarters of this year,
further strengthening its liquidity.
A summary of key financial metrics for the third quarter are as
follows:
Third Quarter
2020 Results
|
|
Three Months
Ended
|
|
Sep 30,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
(In Thousands, Except
per Share Amounts)
|
Revenue
|
$
|
152,601
|
|
|
$
|
192,441
|
|
|
$
|
245,947
|
|
Loss before
discontinued operations
|
(21,425)
|
|
|
(37,130)
|
|
|
(9,079)
|
|
Adjusted EBITDA
before discontinued operations
|
30,302
|
|
|
35,259
|
|
|
46,157
|
|
GAAP EPS before
discontinued operations attributable to TETRA
stockholders
|
(0.10)
|
|
|
(0.17)
|
|
|
(0.06)
|
|
Adjusted EPS
attributable to TETRA stockholders
|
(0.09)
|
|
|
(0.09)
|
|
|
(0.02)
|
|
GAAP net cash
provided (used) by operating activities
|
4,440
|
|
|
38,211
|
|
|
46,605
|
|
TETRA only adjusted
free cash flow from continuing operations
|
$
|
7,672
|
|
|
$
|
31,187
|
|
|
$
|
9,749
|
|
Operating Segments
Completion Fluids & Products Division
Completion
Fluids & Products revenue was $52.0
million in the third quarter of 2020, a decrease of 27% from
the second quarter of 2020, primarily driven by decreased activity
in the Gulf of Mexico and reflects
the seasonally high second quarter Northern European industrial
sales. Completion Fluids & Products income before taxes
was $11.8 million in the third
quarter (22.6% of revenue), and adjusted income before taxes was
$12.5 million (24.0% of
revenue). Adjusted EBITDA of $13.9 million (26.8% of revenue - a 110 basis
point sequential increase) decreased by $4.4
million sequentially.
Water & Flowback Services Division
Water &
Flowback Services third quarter 2020 revenue of $21.5 million decreased 13% from the second
quarter of 2020, driven by the reduction in U.S. land
activity. Water & Flowback Services loss before tax was
$7.7 million, primarily due to
extremely low activity across all US land basins, where frac spread
counts bottomed out at approximately 70, down from the peak of
approximately 298 in the first quarter. The frac crew count
is currently estimated to be 120. Adjusted
EBITDA decreased $0.4 million
sequentially to slightly above breakeven. With the continued
success of implementing our technology and automation to meet our
customer's needs, we continue to gain market share and expand our
customer base.
Compression Division
Third quarter Compression revenue
decreased 18% from the second quarter of 2020 driven by lower
equipment sales. Compression Services gross margins decreased
200 basis points from the second quarter of 2020. Overall
fleet utilization was 80.3%, down from 82.1% at the end of the
second quarter. As of September 30, 2020, total active
operating horsepower decreased 25,758 sequentially from 967,505 in
the second quarter to 941,747. Net loss before taxes was
$11.3 million, an improvement of
$11.7 million sequentially.
Third quarter 2020 Adjusted EBITDA of $22.9
million decreased 13% from the second quarter of
2020.
Free Cash Flow and Balance Sheet
During the third
quarter of 2020, consolidated cash provided by operations was
$4.4 million. TETRA only
adjusted free cash flow from continuing operations was $7.7 million. TETRA only adjusted free cash flow
has now been positive for six consecutive quarters reflecting
aggressive management of operating cost and working capital.
Year-to-date adjusted free cash flow for TETRA Only is $43.5 million, an improvement of $66.6 million over the same period a year
ago. TETRA Only liquidity at the end of third quarter 2020
was $84 million, an improvement of
$22 million from the same period
last year, positioning the Company to safely maneuver through this
downturn. TETRA only liquidity is defined as unrestricted cash
on hand plus availability under our revolving credit facility.
Consolidated total debt was $843
million while consolidated net debt was $768 million. TETRA only net debt is
$148 million. At the end
of the third quarter TETRA Only non-restricted cash was
$59 million. Schedules D and H
summarizes consolidated cash and debt for TETRA on a consolidated
basis and for TETRA Only (excluding CSI Compressco). TETRA's
debt agreements do not include any cross defaults or cross
guarantees for CSI Compressco's debt.
Non-recurring charges and expenses items
Non-recurring charges and expenses including discontinued
operations incurred in the third quarter, as detailed on Schedule
F, include $2.9 million of
restructuring expenses and severance, $0.1
million of asset impairments and $0.1
million of other income.
Conference Call
TETRA will host a conference call to discuss these results today,
November 3, 2020, at 9:30 a.m. Eastern Time. The phone number for the
call is 1-888-347-5303. The conference call will also be available
by live audio webcast and may be accessed through the Company's
website at www.tetratec.com. A replay of the conference call will
be available at 1-877-344-7529 conference number 10148819, for one
week following the conference call and the archived webcast will be
available through the Company's website for thirty days following
the conference call.
Investor Contact
For further information: Elijio
Serrano, CFO, TETRA Technologies, Inc., The Woodlands, Texas, Phone: 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: Statement Regarding Use of Non-GAAP Financial
Measures
Schedule F: Special Items
Schedule G: Non-GAAP Reconciliation to GAAP Financials
Schedule H: Non-GAAP Reconciliation of TETRA Net Debt
Schedule I: Non-GAAP Reconciliation to TETRA Only Adjusted Free
Cash Flow
Schedule J: Non-GAAP Reconciliation to TETRA Only Adjusted Free
Cash Flow From Continuing Operations
Schedule K: Non-GAAP Reconciliation to TETRA Adjusted EBITDA
Margins and Adjusted Income (Loss) Before Tax Margins
Company Overview and Forward-Looking Statements
TETRA Technologies, Inc. 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.
Cautionary Statement Regarding Forward Looking Statements
This news release includes certain statements that are deemed to be
forward-looking statements. Generally, the use of words such as
"may," "see," "expectation," "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 economic and operating conditions that are
outside of our control, including the trading price of our common
stock; the current significant surplus in the supply of oil and the
ability of the OPEC and other oil producing nations to agree on and
comply with supply limitations; the duration and magnitude of the
unprecedented disruption in the oil and gas industry currently,
which is negatively impacting our business; the availability of
adequate sources of capital to us; expected customer drilling
activity, resumption of shut-in oil production and capital spending
and maintenance spending for 2020 and 2021, the planned sale
of idle compression equipment; the availability of raw materials
and labor at reasonable prices; risks related to acquisitions and
our growth strategy; restrictions under our debt agreements and the
consequences of any failure to comply with debt covenants; the
effect and results of litigation, regulatory matters, settlements,
audits, assessments, and contingencies; risks related to our
foreign operations; information technology risks including the risk
of cyber-attacks; the severity and duration of the COVID-19
pandemic and related economic repercussions and the resulting
negative impact on the demand for oil and gas; operational
challenges relating to the COVID-19 pandemic and efforts to
mitigate the spread of the virus, including logistical challenges,
protecting the health and well-being of our employees, remote work
arrangements, performance of contracts, and supply chain
disruptions; other global or national health concerns; and
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 Reports on Form 10-K, 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.
Schedule A: Consolidated Income Statement (Unaudited)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Sep 30,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
Sep 30,
2020
|
|
Sep 30,
2019
|
|
|
(In Thousands, Except
per Share Amounts)
|
Revenues
|
$
|
152,601
|
|
|
$
|
192,441
|
|
|
$
|
245,947
|
|
|
$
|
567,984
|
|
|
$
|
778,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales,
services, and rentals
|
102,982
|
|
|
133,892
|
|
|
170,313
|
|
|
385,568
|
|
|
553,709
|
|
|
Depreciation,
amortization, and accretion
|
29,604
|
|
|
29,842
|
|
|
30,867
|
|
|
88,906
|
|
|
93,312
|
|
|
Impairments and other
charges
|
97
|
|
|
8,977
|
|
|
849
|
|
|
14,445
|
|
|
3,306
|
|
|
Insurance
recoveries
|
(52)
|
|
|
(591)
|
|
|
(1,042)
|
|
|
(643)
|
|
|
(1,392)
|
|
|
Total cost of
revenues
|
132,631
|
|
|
172,120
|
|
|
200,987
|
|
|
488,276
|
|
|
648,935
|
|
|
Gross profit
|
19,970
|
|
|
20,321
|
|
|
44,960
|
|
|
79,708
|
|
|
129,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
25,256
|
|
|
34,014
|
|
|
34,926
|
|
|
88,807
|
|
|
105,498
|
|
|
Interest expense,
net
|
17,631
|
|
|
17,586
|
|
|
18,146
|
|
|
53,073
|
|
|
55,054
|
|
|
Warrants fair value
adjustment (income) expense
|
—
|
|
|
11
|
|
|
78
|
|
|
(327)
|
|
|
(1,035)
|
|
|
CCLP Series A
Preferred Units fair value adjustment expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,309
|
|
|
Other (income)
expense, net
|
(2,137)
|
|
|
3,839
|
|
|
(690)
|
|
|
2,141
|
|
|
(1,014)
|
|
|
Loss before taxes and
discontinued operations
|
(20,780)
|
|
|
(35,129)
|
|
|
(7,500)
|
|
|
(64,986)
|
|
|
(30,276)
|
|
|
Provision for income
taxes
|
645
|
|
|
2,001
|
|
|
1,579
|
|
|
3,800
|
|
|
5,678
|
|
|
Loss before
discontinued operations
|
(21,425)
|
|
|
(37,130)
|
|
|
(9,079)
|
|
|
(68,786)
|
|
|
(35,954)
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of taxes
|
(173)
|
|
|
163
|
|
|
(9,130)
|
|
|
(155)
|
|
|
(9,901)
|
|
|
Net loss
|
(21,598)
|
|
|
(36,967)
|
|
|
(18,209)
|
|
|
(68,941)
|
|
|
(45,855)
|
|
|
Less: loss
attributable to noncontrolling interest
|
8,296
|
|
|
15,712
|
|
|
2,378
|
|
|
32,833
|
|
|
12,273
|
|
|
Net loss attributable
to TETRA stockholders
|
$
|
(13,302)
|
|
|
$
|
(21,255)
|
|
|
$
|
(15,831)
|
|
|
$
|
(36,108)
|
|
|
$
|
(33,582)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
|
|
|
|
|
|
Loss before
discontinued operations attributable to TETRA
stockholders
|
$
|
(0.10)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.19)
|
|
|
Loss from discontinued
operations attributable to TETRA stockholders
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
(0.07)
|
|
|
$
|
0.00
|
|
|
$
|
(0.08)
|
|
|
Net loss attributable
to TETRA stockholders
|
$
|
(0.10)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.27)
|
|
|
Weighted average shares
outstanding
|
125,893
|
|
125,886
|
|
|
125,568
|
|
125,789
|
|
|
125,620
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
|
|
|
|
|
|
Loss before
discontinued operations attributable to TETRA
stockholders
|
$
|
(0.10)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.19)
|
|
|
Loss from discontinued
operations attributable to TETRA stockholders
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
(0.07)
|
|
|
$
|
0.00
|
|
|
$
|
(0.08)
|
|
|
Net loss attributable
to TETRA stockholders
|
$
|
(0.10)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.27)
|
|
|
Weighted average shares
outstanding
|
125,893
|
|
|
125,886
|
|
|
125,568
|
|
125,789
|
|
|
125,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule B: Financial Results By Segment (Unaudited)
Revenues by
segment:
|
|
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
51,950
|
|
|
$
|
71,346
|
|
|
$
|
59,340
|
|
|
$
|
198,533
|
|
|
$
|
200,688
|
|
Water & Flowback
Services Division
|
21,534
|
|
|
24,723
|
|
|
72,841
|
|
|
103,724
|
|
|
224,643
|
|
Compression
Division
|
79,117
|
|
|
96,372
|
|
|
113,766
|
|
|
265,727
|
|
|
353,140
|
|
Eliminations and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
revenues
|
$
|
152,601
|
|
|
$
|
192,441
|
|
|
$
|
245,947
|
|
|
$
|
567,984
|
|
|
$
|
778,471
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss) by segment:
|
|
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
16,196
|
|
|
$
|
20,819
|
|
|
$
|
16,181
|
|
|
$
|
62,979
|
|
|
$
|
46,653
|
|
Water & Flowback
Services Division
|
(5,714)
|
|
|
(4,836)
|
|
|
8,236
|
|
|
(7,283)
|
|
|
24,577
|
|
Compression
Division
|
9,755
|
|
|
4,511
|
|
|
20,710
|
|
|
24,645
|
|
|
58,804
|
|
Corporate overhead and
eliminations
|
(267)
|
|
|
(173)
|
|
|
(167)
|
|
|
(633)
|
|
|
(498)
|
|
Total gross
profit
|
$
|
19,970
|
|
|
$
|
20,321
|
|
|
$
|
44,960
|
|
|
$
|
79,708
|
|
|
$
|
129,536
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before taxes by segment:
|
|
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
11,756
|
|
|
$
|
13,202
|
|
|
$
|
11,318
|
|
|
$
|
44,354
|
|
|
$
|
32,118
|
|
Water & Flowback
Services Division
|
(7,746)
|
|
|
(8,418)
|
|
|
2,578
|
|
|
(18,408)
|
|
|
7,269
|
|
Compression
Division
|
(11,321)
|
|
|
(23,006)
|
|
|
(3,464)
|
|
|
(47,117)
|
|
|
(14,748)
|
|
Corporate overhead and
eliminations
|
(13,469)
|
|
|
(16,907)
|
|
|
(17,932)
|
|
|
(43,815)
|
|
|
(54,915)
|
|
Total income (loss)
before taxes
|
$
|
(20,780)
|
|
|
$
|
(35,129)
|
|
|
$
|
(7,500)
|
|
|
$
|
(64,986)
|
|
|
$
|
(30,276)
|
|
|
Please note that the
above results by Segment include special charges and expenses.
Please see Schedule F for details of those special charges and
expenses.
|
(1)
|
Excludes discontinued
operations
|
Schedule C: Consolidated Balance Sheet (September 30, 2020 Unaudited)
|
September 30,
2020
|
|
December 31,
2019
|
|
(In
Thousands)
|
Balance
Sheet:
|
|
|
|
Cash (excluding
restricted cash)
|
$
|
75,165
|
|
|
$
|
17,704
|
|
Accounts receivable,
net
|
108,222
|
|
|
175,918
|
|
Inventories
|
113,020
|
|
|
136,510
|
|
Other current
assets
|
21,235
|
|
|
21,222
|
|
PP&E,
net
|
674,568
|
|
|
758,637
|
|
Operating lease
right-of-use assets
|
78,867
|
|
|
68,131
|
|
Other
assets
|
90,463
|
|
|
93,800
|
|
Total
assets
|
$
|
1,161,540
|
|
|
$
|
1,271,922
|
|
|
|
|
|
Liabilities of
discontinued operations
|
$
|
1,852
|
|
|
$
|
2,098
|
|
Other current
liabilities
|
130,216
|
|
|
186,625
|
|
Long-term debt
(1)
|
843,216
|
|
|
842,871
|
|
Long-term portion of
asset retirement obligations
|
12,973
|
|
|
12,762
|
|
Warrants
liability
|
123
|
|
|
449
|
|
Operating lease
liabilities
|
64,200
|
|
|
53,919
|
|
Other long-term
liabilities
|
13,785
|
|
|
10,372
|
|
Equity
|
95,175
|
|
|
162,826
|
|
Total liabilities and
equity
|
$
|
1,161,540
|
|
|
$
|
1,271,922
|
|
|
|
(1)
|
Please see Schedule D
for the individual debt obligations of TETRA and CSI Compressco
LP.
|
Schedule D: Long-Term Debt (Unaudited)
TETRA Technologies Inc. and its subsidiaries, other than CSI
Compressco LP and its subsidiaries, are obligated under an
asset-based bank credit agreement and a term credit agreement,
neither of which are obligations of CSI Compressco LP and its
subsidiaries. CSI Compressco LP and its subsidiaries are obligated
under a separate asset-based bank credit agreement and two series
of senior notes, neither of which are obligations of TETRA and its
other subsidiaries. Amounts presented are net of deferred financing
costs.
|
September 30,
2020
|
|
December 31,
2019
|
|
September 30,
2019
|
|
(In
Thousands)
|
|
|
TETRA
|
|
|
|
|
|
Asset-Based Credit
Agreement
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,585
|
|
Term Credit
Agreement
|
206,273
|
|
|
204,633
|
|
|
204,112
|
|
TETRA total
debt
|
206,273
|
|
|
204,633
|
|
|
212,697
|
|
Less current
portion
|
—
|
|
|
—
|
|
|
—
|
|
TETRA total
long-term debt
|
$
|
206,273
|
|
|
$
|
204,633
|
|
|
$
|
212,697
|
|
|
|
|
|
|
|
CSI Compressco
LP
|
|
|
|
|
|
CCLP Credit
Agreement
|
—
|
|
|
2,622
|
|
|
10,559
|
|
7.25% Senior
Notes
|
79,893
|
|
|
291,444
|
|
|
291,028
|
|
7.50% Senior
Notes
|
399,640
|
|
|
344,172
|
|
|
343,988
|
|
Second Lien
Notes
|
157,410
|
|
|
—
|
|
|
—
|
|
Total debt
|
636,943
|
|
|
638,238
|
|
|
645,575
|
|
Less current
portion
|
—
|
|
|
—
|
|
|
—
|
|
CCLP total
long-term debt
|
$
|
636,943
|
|
|
$
|
638,238
|
|
|
$
|
645,575
|
|
Consolidated total
long-term debt
|
$
|
843,216
|
|
|
$
|
842,871
|
|
|
$
|
858,272
|
|
Schedule E: Statement Regarding Use of Non-GAAP
Financial Measures
In addition to financial results determined in accordance with
GAAP, this press release may include the following non-GAAP
financial measures for the Company: net debt; adjusted consolidated
and segment income (loss) before taxes and special charges;
adjusted diluted earnings (loss) per share before discontinued
operations; consolidated and segment adjusted EBITDA; net income
(loss) before taxes, Adjusted income (loss) before tax, Adjusted
income (loss) before tax as a % of revenue, TETRA only adjusted
free cash flow and TETRA only free cash flow from continuing
operations; and segment adjusted EBITDA as a percent of revenue
("Adjusted EBITDA margin"). 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.
Adjusted diluted earnings (loss) per share before discontinued
operations is defined as the Company's diluted earnings (loss) per
share excluding certain special or other charges (or credits).
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 before discontinued operations (and Adjusted
EBITDA before discontinued operations as a percent of revenue) is
defined as earnings before interest, taxes, depreciation,
amortization, impairments and certain non-cash charges and
non-recurring adjustments. Adjusted EBITDA before discontinued
operations (and Adjusted EBITDA margin) 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.
Adjusted income before tax is defined as earnings (loss) before
interest, taxes, impairments and certain non-cash charges and
non-recurring adjustments. Adjusted income before tax
(and Adjusted income before tax as a percent of revenue or Adjusted
income before tax margin which is Adjusted income before tax
divided by revenue) is used by management as a supplemental
financial measure to assess the financial performance of the
Company's normalized profitability while excluding any unusual,
non-recurring items and tax benefits or detriment.
TETRA only adjusted free cash flow is a non-GAAP measure that
the Company defines as cash from TETRA's operations, 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 discontinued operations
EBITDA and discontinued operations capital expenditures. Management
uses this supplemental financial measure 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.
TETRA only adjusted free cash flow and TETRA only adjusted free
cash flow from continuing operations do not necessarily imply
residual cash flow available for discretionary expenditures, as
they exclude 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.
Schedule F: Special Items (Unaudited)
|
Three Months
Ended
|
|
September 30,
2020
|
|
Income (loss)
before taxes and discontinued operations
|
Provision
(Benefit) for Tax
|
Noncontrolling
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
|
$
|
(17,867)
|
|
$
|
645
|
|
$
|
(7,678)
|
|
$
|
(10,834)
|
|
$
|
(0.09)
|
|
Stock warrant fair
value adjustment
|
—
|
|
—
|
|
—
|
|
—
|
|
0.00
|
|
Transaction and other
expenses
|
78
|
|
—
|
|
(25)
|
|
103
|
|
0.00
|
|
Impairments and other
charges
|
(97)
|
|
—
|
|
—
|
|
(97)
|
|
0.00
|
|
Bad Debt
|
—
|
|
—
|
|
—
|
|
—
|
|
0.00
|
|
Restructuring
charges
|
(1,061)
|
|
—
|
|
(190)
|
|
(871)
|
|
(0.01)
|
|
Debt
refinancing
|
—
|
|
—
|
|
—
|
|
—
|
|
0.00
|
|
Severance
|
(1,833)
|
|
—
|
|
(403)
|
|
(1,430)
|
|
(0.01)
|
|
Net income (loss)
before discontinued operations
|
$
|
(20,780)
|
|
$
|
645
|
|
$
|
(8,296)
|
|
$
|
(13,129)
|
|
$
|
(0.10)
|
|
Loss from discontinued
operations
|
|
|
|
(173)
|
|
(0.00)
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
|
|
|
$
|
(13,302)
|
|
$
|
(0.10)
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2020
|
|
Income (loss)
before taxes and discontinued operations
|
Provision
(Benefit) for Tax
|
Noncontrolling
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
|
$
|
(14,258)
|
|
$
|
2,001
|
|
$
|
(5,171)
|
|
$
|
(11,088)
|
|
$
|
(0.09)
|
|
Stock warrant fair
value adjustment
|
(11)
|
|
—
|
|
—
|
|
(11)
|
|
0.00
|
|
Transaction and other
expenses
|
(895)
|
|
—
|
|
(475)
|
|
(420)
|
|
0.00
|
|
Impairments and other
charges
|
(8,922)
|
|
—
|
|
(5,977)
|
|
(2,945)
|
|
(0.02)
|
|
Restructuring
charges
|
(486)
|
|
—
|
|
(179)
|
|
(307)
|
|
0.00
|
|
Severance
|
(3,003)
|
|
—
|
|
(726)
|
|
(2,277)
|
|
(0.02)
|
|
Bad debt
|
(2,800)
|
|
—
|
|
—
|
|
(2,800)
|
|
(0.02)
|
|
Debt
refinancing
|
(4,754)
|
|
—
|
|
(3,184)
|
|
(1,570)
|
|
(0.01)
|
|
Net income (loss)
before discontinued operations
|
$
|
(35,129)
|
|
$
|
2,001
|
|
$
|
(15,712)
|
|
$
|
(21,418)
|
|
$
|
(0.17)
|
|
Loss from discontinued
operations
|
|
|
|
163
|
|
0.00
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
|
|
|
$
|
(21,255)
|
|
$
|
(0.17)
|
|
|
|
|
Three Months
Ended
|
|
September 30,
2019
|
|
Income (loss)
before taxes and discontinued operations
|
Provision
(Benefit) for Tax
|
Noncontrolling
Interest
|
Net Income
Attributable to TETRA Stockholders
|
Diluted
EPS
|
|
(In Thousands, Except
per Share Amounts)
|
Income (loss)
attributable to TETRA stockholders, excluding unusual
charges
|
$
|
(4,143)
|
|
$
|
(871)
|
|
$
|
(354)
|
|
$
|
(2,918)
|
|
$
|
(0.02)
|
|
Stock warrant fair
value adjustment
|
(78)
|
|
(16)
|
|
—
|
|
(62)
|
|
0.00
|
|
5% Cash redemption on
CCLP Series A Preferred
|
(341)
|
|
(72)
|
|
(238)
|
|
(31)
|
|
0.00
|
|
Lee Plant facility
vandalism
|
736
|
|
155
|
|
—
|
|
581
|
|
0.00
|
|
Transaction
expense
|
(643)
|
|
(135)
|
|
(152)
|
|
(356)
|
|
0.00
|
|
Severance
|
(339)
|
|
(71)
|
|
(70)
|
|
(198)
|
|
0.00
|
|
Bad debt
|
(1,844)
|
|
(387)
|
|
(1,057)
|
|
(400)
|
|
0.00
|
|
Impairments and other
charges
|
(848)
|
|
(178)
|
|
(507)
|
|
(163)
|
|
0.00
|
|
Effect of deferred tax
valuation allowance and other related tax adjustments
|
—
|
|
3,154
|
|
—
|
|
(3,154)
|
|
(0.03)
|
|
Net income (loss)
before discontinued operations
|
$
|
(7,500)
|
|
$
|
1,579
|
|
$
|
(2,378)
|
|
$
|
(6,701)
|
|
$
|
(0.06)
|
|
Loss from discontinued
operations
|
|
|
|
(9,130)
|
|
(0.07)
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
|
|
|
$
|
(15,831)
|
|
$
|
(0.13)
|
|
Schedule G: Non-GAAP Reconciliation to GAAP Financials
(Unaudited)*
|
Three Months
Ended
|
|
September 30,
2020
|
|
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
Compensation
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids &
Products Division
|
|
|
$
|
11,756
|
|
$
|
729
|
|
$
|
12,485
|
|
$
|
(291)
|
|
$
|
1,710
|
|
$
|
—
|
|
$
|
13,904
|
|
Water & Flowback
Services Division
|
|
|
(7,746)
|
|
274
|
|
(7,472)
|
|
(77)
|
|
7,584
|
|
—
|
|
35
|
|
Compression
Division
|
|
|
(11,321)
|
|
879
|
|
(10,442)
|
|
13,293
|
|
19,948
|
|
143
|
|
22,942
|
|
Eliminations and
other
|
|
|
3
|
|
—
|
|
3
|
|
—
|
|
(3)
|
|
—
|
|
—
|
|
Subtotal
|
|
|
(7,308)
|
|
1,882
|
|
(5,426)
|
|
12,925
|
|
29,239
|
|
143
|
|
36,881
|
|
Corporate and
other
|
|
|
(13,472)
|
|
1,031
|
|
(12,441)
|
|
4,706
|
|
173
|
|
983
|
|
(6,579)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(21,425)
|
|
$
|
645
|
|
$
|
(20,780)
|
|
$
|
2,913
|
|
$
|
(17,867)
|
|
$
|
17,631
|
|
$
|
29,412
|
|
$
|
1,126
|
|
$
|
30,302
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2020
|
|
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
Compensation
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids &
Products Division
|
|
|
$
|
13,202
|
|
$
|
3,310
|
|
$
|
16,512
|
|
$
|
(143)
|
|
$
|
1,934
|
|
$
|
—
|
|
$
|
18,303
|
|
Water & Flowback
Services Division
|
|
|
(8,418)
|
|
1,203
|
|
(7,215)
|
|
(2)
|
|
7,617
|
|
—
|
|
400
|
|
Compression
Division
|
|
|
(23,006)
|
|
15,736
|
|
(7,270)
|
|
12,982
|
|
20,116
|
|
488
|
|
26,316
|
|
Eliminations and
other
|
|
|
2
|
|
—
|
|
2
|
|
—
|
|
—
|
|
—
|
|
2
|
|
Subtotal
|
|
|
(18,220)
|
|
20,249
|
|
2,029
|
|
12,837
|
|
29,667
|
|
488
|
|
45,021
|
|
Corporate and
other
|
|
|
(16,909)
|
|
621
|
|
(16,288)
|
|
4,749
|
|
175
|
|
1,602
|
|
(9,762)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(37,130)
|
|
$
|
2,001
|
|
$
|
(35,129)
|
|
$
|
20,870
|
|
$
|
(14,259)
|
|
$
|
17,586
|
|
$
|
29,842
|
|
$
|
2,090
|
|
$
|
35,259
|
|
|
|
|
Three Months
Ended
|
|
September 30,
2019
|
|
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
Compensation
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids &
Products Division
|
|
|
$
|
11,318
|
|
$
|
(736)
|
|
$
|
10,582
|
|
$
|
(216)
|
|
$
|
3,676
|
|
$
|
—
|
|
$
|
14,042
|
|
Water & Flowback
Services Division
|
|
|
2,578
|
|
76
|
|
2,654
|
|
(2)
|
|
8,568
|
|
—
|
|
11,220
|
|
Compression
Division
|
|
|
(3,464)
|
|
3,597
|
|
133
|
|
12,869
|
|
18,459
|
|
(211)
|
|
31,250
|
|
Eliminations and
other
|
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
(3)
|
|
—
|
|
(4)
|
|
Subtotal
|
|
|
10,431
|
|
2,937
|
|
13,368
|
|
12,651
|
|
30,700
|
|
(211)
|
|
56,508
|
|
Corporate and
other
|
|
|
(17,931)
|
|
379
|
|
(17,552)
|
|
5,495
|
|
167
|
|
1,539
|
|
(10,351)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(9,079)
|
|
$
|
1,579
|
|
$
|
(7,500)
|
|
$
|
3,316
|
|
$
|
(4,184)
|
|
$
|
18,146
|
|
$
|
30,867
|
|
$
|
1,328
|
|
$
|
46,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Excludes the impact
from discontinued operations.
|
Schedule H: Non-GAAP Reconciliation of TETRA Net Debt
(Unaudited)
The cash and debt positions of TETRA and CSI Compressco LP as of
September 30, 2020, are shown below. TETRA and CSI Compressco
LP's debt agreements are distinct and separate with no
cross-default provisions. Management believes that the most
appropriate method to analyze the debt positions of each company 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. Amounts presented are net of deferred financing
costs.
|
September 30,
2020
|
|
TETRA
|
|
CCLP
|
|
Consolidated
|
|
(In
Millions)
|
Non-restricted
cash
|
$
|
58.5
|
|
|
$
|
16.7
|
|
|
$
|
75.2
|
|
|
|
|
|
|
|
Carrying value of
long-term debt:
|
|
|
|
|
|
Asset-Based Credit
Agreement
|
—
|
|
|
—
|
|
|
—
|
|
Term Credit
Agreement
|
206.3
|
|
|
—
|
|
|
206.3
|
|
Senior Notes
outstanding
|
—
|
|
|
636.9
|
|
|
636.9
|
|
Net debt
|
$
|
147.8
|
|
|
$
|
620.2
|
|
|
$
|
768.0
|
|
Schedule I: Non-GAAP Reconciliation to TETRA Only Adjusted
Free Cash Flow (Unaudited)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Sep 30,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
Sep 30,
2020
|
|
Sep 30,
2019
|
|
(In
Thousands)
|
Consolidated
|
|
|
|
|
|
|
|
|
|
Net cash provided
(used) by operating activities
|
$
|
4,440
|
|
|
$
|
38,211
|
|
|
$
|
46,605
|
|
|
$
|
64,827
|
|
|
$
|
83,590
|
|
Capital expenditures,
net of sales proceeds
|
16,990
|
|
|
(3,332)
|
|
|
(27,650)
|
|
|
2,693
|
|
|
(87,040)
|
|
Consolidated adjusted
free cash flow
|
$
|
21,430
|
|
|
$
|
34,879
|
|
|
$
|
18,955
|
|
|
67,520
|
|
|
(3,450)
|
|
|
|
|
|
|
|
|
|
|
|
CSI Compressco
LP
|
|
|
|
|
|
|
|
|
|
Net cash provided
(used) by operating activities
|
$
|
(4,451)
|
|
|
$
|
4,823
|
|
|
$
|
27,444
|
|
|
13,729
|
|
|
67,461
|
|
Capital expenditures,
net of sales proceeds
|
18,550
|
|
|
(1,125)
|
|
|
(20,867)
|
|
|
10,942
|
|
|
(60,453)
|
|
CSI Compressco free
cash flow
|
$
|
14,099
|
|
|
$
|
3,698
|
|
|
$
|
6,577
|
|
|
24,671
|
|
|
7,008
|
|
|
|
|
|
|
|
|
|
|
|
TETRA
Only
|
|
|
|
|
|
|
|
|
|
Cash from operating
activities
|
$
|
8,891
|
|
|
$
|
33,388
|
|
|
$
|
19,161
|
|
|
51,098
|
|
|
16,129
|
|
Investment in CCLP
Compressors
|
—
|
|
|
—
|
|
|
(2,830)
|
|
|
—
|
|
|
(13,972)
|
|
Capital expenditures,
net of sales proceeds
|
(1,560)
|
|
|
(2,207)
|
|
|
(6,783)
|
|
|
(8,249)
|
|
|
(26,587)
|
|
Free cash
flow
|
7,331
|
|
|
31,181
|
|
|
9,548
|
|
|
42,849
|
|
|
(24,430)
|
|
Distributions from CSI
Compressco LP
|
168
|
|
|
169
|
|
|
169
|
|
|
506
|
|
|
506
|
|
TETRA Only
Adjusted Free Cash Flow
|
$
|
7,499
|
|
|
$
|
31,350
|
|
|
$
|
9,717
|
|
|
43,355
|
|
|
(23,924)
|
|
Schedule J: Non-GAAP Reconciliation to TETRA
Only Adjusted Free Cash Flow From Continuing Operations
(unaudited)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Sep 30,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
Sep 30,
2020
|
|
Sep 30,
2019
|
|
(In
Thousands)
|
|
|
|
|
TETRA
Only
|
|
|
|
|
|
|
|
|
|
Cash from operating
activities
|
$
|
8,891
|
|
|
$
|
33,388
|
|
|
$
|
19,161
|
|
|
$
|
51,098
|
|
|
$
|
16,129
|
|
Less: Discontinued
operations operating activities (adjusted EBITDA)
|
(173)
|
|
|
163
|
|
|
(32)
|
|
|
(155)
|
|
|
(803)
|
|
Cash from continued
operating activities
|
9, 064
|
|
|
33,225
|
|
|
19,193
|
|
|
51,253
|
|
|
16,932
|
|
Less: Continuing
operations capital expenditures
|
(1,560)
|
|
|
(2,207)
|
|
|
(6,783)
|
|
|
(8,249)
|
|
|
(26,587)
|
|
Less: Investment
in CCLP Compressors
|
—
|
|
|
—
|
|
|
(2,830)
|
|
|
—
|
|
|
(13,972)
|
|
Distributions from CSI
Compressco LP
|
168
|
|
|
169
|
|
|
169
|
|
|
506
|
|
|
506
|
|
TETRA Only Adjusted
Free Cash Flow From Continuing Operations
|
$
|
7,672
|
|
|
$
|
31,187
|
|
|
$
|
9,749
|
|
|
$
|
43,510
|
|
|
$
|
(23,121)
|
|
Schedule K: Non-GAAP Reconciliation to TETRA Adjusted
EBITDA Margins and Adjusted Income (Loss) before tax
margins (Unaudited)
|
|
Three Months
Ended
|
|
|
Sep 30,
2020
|
|
Jun 30,
2020
|
|
Sep 30,
2019
|
|
|
(In
Thousands)
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Revenue
|
|
$
|
152,601
|
|
|
$
|
192,441
|
|
|
$
|
245,947
|
|
Income (loss) before
tax
|
|
(20,780)
|
|
|
(35,129)
|
|
|
(7,500)
|
|
Adjusted income
(loss) before tax (Schedule G)
|
|
(17,867)
|
|
|
(14,259)
|
|
|
(4,184)
|
|
Adjusted EBITDA
(Schedule G)
|
|
30,302
|
|
|
35,259
|
|
|
46,157
|
|
Income (Loss) Before
Tax Margin
|
|
(13.6)
|
%
|
|
(18.3)
|
%
|
|
(3.0)
|
%
|
Adjusted Income
(Loss) Before Tax Margin
|
|
(11.7)
|
%
|
|
(7.4)
|
%
|
|
(1.7)
|
%
|
Adjusted EBITDA
Margin
|
|
19.9
|
%
|
|
18.3
|
%
|
|
18.8
|
%
|
|
|
|
|
|
|
|
Completion Fluids
& Products
|
|
|
|
|
|
|
Revenue
|
|
$
|
51,950
|
|
|
$
|
71,346
|
|
|
$
|
59,340
|
|
Income (loss) before
tax
|
|
11,756
|
|
|
13,202
|
|
|
11,318
|
|
Adjusted income
(loss) before tax (Schedule G)
|
|
12,485
|
|
|
16,512
|
|
|
10,582
|
|
Adjusted EBITDA
(Schedule G)
|
|
13,904
|
|
|
18,303
|
|
|
14,042
|
|
Income (Loss) Before
Tax Margin
|
|
22.6
|
%
|
|
18.5
|
%
|
|
19.1
|
%
|
Adjusted Income
(Loss) Before Tax Margin
|
|
24.0
|
%
|
|
23.1
|
%
|
|
17.8
|
%
|
Adjusted EBITDA
Margin
|
|
26.8
|
%
|
|
25.7
|
%
|
|
23.7
|
%
|
|
|
|
|
|
|
|
Water &
Flowback Services
|
|
|
|
|
|
|
Revenue
|
|
$
|
21,534
|
|
|
$
|
24,723
|
|
|
$
|
72,841
|
|
Income (loss) before
tax
|
|
(7,746)
|
|
|
(8,418)
|
|
|
2,578
|
|
Adjusted income
(loss) before tax (Schedule G)
|
|
(7,472)
|
|
|
(7,215)
|
|
|
2,654
|
|
Adjusted EBITDA
(Schedule G)
|
|
35
|
|
|
400
|
|
|
11,220
|
|
Income (Loss) Before
Tax Margin
|
|
(36.0)
|
%
|
|
(34.0)
|
%
|
|
3.5
|
%
|
Adjusted Income
(Loss) Before Tax Margin
|
|
(34.7)
|
%
|
|
(29.2)
|
%
|
|
3.6
|
%
|
Adjusted EBITDA
Margin
|
|
0.2
|
%
|
|
1.6
|
%
|
|
15.4
|
%
|
|
|
|
|
|
|
|
Compression
|
|
|
|
|
|
|
Revenue
|
|
$
|
79,117
|
|
|
$
|
96,372
|
|
|
$
|
113,766
|
|
Income (loss) before
tax
|
|
(11,321)
|
|
|
(23,006)
|
|
|
(3,464)
|
|
Adjusted income
(loss) before tax (Schedule G)
|
|
(10,442)
|
|
|
(7,270)
|
|
|
133
|
|
Adjusted EBITDA
(Schedule G)
|
|
22,942
|
|
|
26,316
|
|
|
31,250
|
|
Income (Loss) Before
Tax Margin
|
|
(14.3)
|
%
|
|
(23.9)
|
%
|
|
(3.0)
|
%
|
Adjusted Income
(Loss) Before Tax Margin
|
|
(13.2)
|
%
|
|
(7.5)
|
%
|
|
0.1
|
%
|
Adjusted EBITDA
Margin
|
|
29.0
|
%
|
|
27.3
|
%
|
|
27.5
|
%
|
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SOURCE TETRA Technologies, Inc.