THE WOODLANDS, Texas,
Feb. 24, 2021 /PRNewswire/ -- TETRA
Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) today
announced full year and fourth quarter 2020 results, which are
within the range of the preliminary results that were pre-announced
on January 29, 2021. On that
same date, the Company announced the sale of the general partner,
incentive distribution rights, and 10.95 million common units of
CSI Compressco LP ("CSI Compressco") and 15 compressor units to
Spartan Energy Partners, which generated over $30 million of cash proceeds to TETRA.
TETRA's income statement reflects CSI Compressco as discontinued
operations, and the assets and liabilities of CSI Compressco are
reflected as assets and liabilities held for sale as of
December 31, 2020. TETRA
continues to own 5.2 million of CSI Compressco common units, which
are equal to approximately 11% of the total outstanding CSI
Compressco common units, with a current market value of
approximately $10.6 million. Net
loss before discontinued operations for the fourth quarter of 2020
was $7.1 million inclusive of
$3.4 million of non-recurring charges
and expenses. Total year cash from operating activities was
$77 million, compared to $90 million in 2019.
Brady Murphy, TETRA's Chief
Executive Officer, stated, "I am pleased with our fourth quarter
results and the way we finished out a very challenging 2020.
We delivered positive Adjusted EBITDA and free cash flow in
every quarter of 2020 and successfully executed on our key
strategies, including the deconsolidation of CSI Compressco.
Our employees and management team's exceptional focus throughout
the year on cost management resulted in an increase in
adjusted free cash flow from continuing operations of $81 million in 2020 relative to 2019 and higher
adjusted EBITDA margins while continuing to deliver the service
quality our customers require with continued emphasis on the health
and safety of our employees and customers. Year-on-year, we
reduced operating cost (as it impacts Adjusted EBITDA) by 34% (or
$168 million) - greater than the 33%
decline in revenue. The fourth quarter sequential revenue
growth of 46% in Water & Flowback Services Division is a
continuance of multi-year market share gains achieved through the
introduction of new technologies, digitizing our operations, and
moving towards more integrated water management solutions.
TETRA's BlueLinxTM automated control system is enabling
us to operate more efficiently and with less staff which produced
sequential quarterly incremental Adjusted EBITDA margins of
37% (incremental Adjusted EBITDA as a percent of incremental
revenue) for the Water Management and Flowback Division.
Aided by the benefit from our Standard Lithium agreement,
Completions Fluids & Products Division achieved a 32.6%
Adjusted EBITDA margin in the fourth quarter, a record high without
the benefit of TETRA CS Neptune® fluids activity.
Industrial chemical sales remained strong throughout the year with
a record revenue year for our European business. In the first
quarter of 2021, we continue to see strong demand for our calcium
chloride business driven from extreme weather as we prepare to
enter our seasonally high second quarter period in our Europe operations."
"While many oilfield service companies reported EBITDA losses
and negative free cash flow in 2020 in a global pandemic year with
depressed oil and gas prices, TETRA generated $26 million of free cash flow from continuing
operations without the benefit of monetizing working capital and
improved Adjusted EBITDA margins by 150 basis points. We
believe this to be a strong accomplishment given the challenging
market conditions. As a result of the actions implemented
during the year, net debt was reduced by $57
million, to $133 million as of
December 31, 2020. And as of
February 18, 2021, net debt has been
further reduced to approximately $120
million."
"Heading into 2021 we have announced both the beginning, and the
results, of numerous strategic actions initiated by management and
our Board aimed at (a) simplifying TETRA's capital structure and
further focusing our business segments; (b) improving operating
efficiencies; (c) reducing costs and (d) strengthening our balance
sheet. The impact of these initiatives are evident in TETRA's
fourth quarter and full year results."
"Additionally, and as mentioned in our January 19, 2021 press release, we have launched
several initiatives to leverage our chemistry expertise and
resources around carbon capture and energy storage. We remain
committed to these important ESG initiatives including the use of
our technology and products in carbon capture and our partnership
with Standard Lithium."
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, adjusted free
cash flow from continuing operations, and net debt. Please
see Schedules E through J for reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP
measures.
Total Year Results and Highlights
A summary of key financial metrics for the total year are as
follows:
|
Twelve Months Ended
|
|
|
|
|
|
|
December 31,
2020
|
|
December 31,
2019
|
|
Change
|
|
%
Change
|
|
(In
Millions)
|
Revenue
|
$
377.7
|
|
$
561.2
|
|
$
(183.5)
|
|
(33)%
|
|
|
|
|
|
|
|
|
Operating loss from
continuing operations
|
$
(25.1)
|
|
$
(128.1)
|
|
$
103.0
|
|
(80)%
|
% of revenue
|
(6.6)%
|
|
(22.8)%
|
|
16.2%
|
|
|
Adjusted
EBITDA
|
$
49.1
|
|
$
64.6
|
|
$
(15.5)
|
|
(24)%
|
Adjusted EBITDA
margin
|
13.0%
|
|
11.5%
|
|
1.5%
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operations (including discontinued operations)
|
$
76.9
|
|
$
90.2
|
|
$
(13.3)
|
|
(15)%
|
Adjusted free cash
flow from continuing operations
|
$
58.9
|
|
$
(22.2)
|
|
$
81.1
|
|
N/M
|
|
|
|
|
|
|
|
|
Net debt
|
$
132.6
|
|
$
189.3
|
|
$
(56.7)
|
|
(30)%
|
|
|
|
|
|
|
|
|
|
Total year revenue of $378 million
declined 33% from 2019, while operating losses from continuing
operations improved from a loss of $128
million in 2019 (inclusive of $117
million of unusual charges) to a loss of $25 million in 2020 (inclusive of $12.7 million of unusual charges). Adjusted
EBITDA decreased by only $15.5
million on a revenue decline of $184
million – representing decremental margins of 8.4%.
Adjusted EBITDA in 2020 was $49
million compared to $65
million in 2019. Adjusted EBITDA margins improved 150
basis points to 13.0% despite the 33% decline in revenue reflecting
the strength and diversity of the Company's revenue streams and
integrated business model.
For the full year 2020, Completions Fluids and Products revenue
was $243 million with operating
income of $55 million (22.8% of
revenue) inclusive of $6.4 million of
unusual charges. Adjusted EBITDA was $68 million (28.1% of revenue). Water and
Flowback Services revenue in 2020 was $135
million with an operating loss of $22
million (16.2% of revenue) inclusive of $4.0 million of unusual charges. Adjusted
EBITDA was $10.9 million (8.1% of
revenue) as the introduction of our TETRA SandStormTM
advanced cyclone technology (sand filtration), digitization and
remote monitoring of our field operations in addition to aggressive
cost reductions allowed us to keep Water Management and Flowback
Services adjusted EBITDA positive in all quarters of 2020.
Corporate G&A expenses, as they impact Adjusted EBITDA, were
reduced by 31%, in line with the 33% decline in revenue on staff
reductions, salary cuts, reduced employee benefits, and
streamlining of the management structure by eliminating multiple
senior management positions.
Fourth Quarter Results and Highlights
A summary of key financial metrics for the fourth quarter are as
follows:
Fourth Quarter
2020 Results
|
|
Three Months
Ended
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
(In Thousands, Except
per Share Amounts)
|
Revenue
|
$
|
75,458
|
|
|
$
|
73,484
|
|
|
$
|
135,910
|
|
Loss before
discontinued operations
|
(7,097)
|
|
|
(9,409)
|
|
|
(113,021)
|
|
Adjusted EBITDA
before discontinued operations(2)
|
11,001
|
|
|
7,360
|
|
|
21,964
|
|
GAAP EPS before
discontinued operations attributable to TETRA
stockholders
|
(0.06)
|
|
|
(0.08)
|
|
|
(0.91)
|
|
Adjusted EPS
attributable to TETRA stockholders(2)
|
(0.03)
|
|
|
(0.06)
|
|
|
0.02
|
|
GAAP net cash
provided by operating activities
|
12,085
|
|
|
4,440
|
|
|
5,250
|
|
Adjusted free cash
flow from continuing operations(2)
|
$
|
15,585
|
|
|
$
|
7,499
|
|
|
$
|
670
|
|
|
|
(2)
|
These financial
measures are not in accordance with generally accepted accounting
principles in the United States ("GAAP"). Please see Schedules E,
F, H, and I for the reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP measure.)
|
Fourth quarter 2020 total revenue was $75
million and reflects an increase of 3% from the third
quarter of 2020. Net loss before discontinued operations for
the fourth quarter was $7.1 million,
inclusive of $3.4 million of
non-recurring charges and expenses. This compares to a net loss
before discontinued operations of $9.4
million in the third quarter, inclusive of $2.0 million of non-recurring charges and
expenses. Net loss per share attributable to TETRA
stockholders in the fourth quarter was $0.12. Excluding the non-recurring charges
and expenses, the net loss per share attributable to TETRA
stockholders was $0.03.
Adjusted EBITDA excluding non-recurring charges, was
$11.0 million and compares to
$7.4 million in the third
quarter. Cash from operating activities was $12.1 million in the fourth quarter and compares
to $4.4 million in the third quarter,
while adjusted free cash flow from continuing operations was
$15.6 million, compared to
$7.5 million in the third quarter,
and included the benefit of $14.2
million from the sale of compressors to Spartan Energy
Partners.
Completion Fluids & Products revenue was $44.1 million in the fourth quarter of 2020, a
decrease of 15% from the third quarter, primarily driven by a large
international completion fluids sale to the Middle East in the third quarter that did not
repeat in the fourth quarter. Industrial chemicals activity
remained strong in the fourth quarter and with the extreme weather
and recent market share wins we see even stronger sales activity in
the first quarter of 2021. Completion Fluids & Products
income before taxes was $11.0 million
in the fourth quarter (24.9% of revenue) compared to $11.8 million (22.6% of revenue) in the third
quarter. Adjusted EBITDA of $14.4
million (32.6% of revenue - a 580 basis point sequential
improvement) increased by $0.5
million sequentially. The fourth quarter Adjusted
EBITDA margin of 32.6% is a record high without the benefit of
TETRA CS Neptune fluids and reflects $1.2
million of earnings in the quarter from the Company's
lithium agreement.
Water & Flowback Services fourth quarter 2020 revenue of
$31.3 million increased 46% from the
third quarter driven by stronger U.S. land activity and
contributions from the proprietary TETRA SandStorm advanced cyclone
technology. Water & Flowback Services loss before taxes
was $3.4 million. Adjusted EBITDA
increased $3.6M sequentially to
$3.7M in the fourth quarter with
Adjusted EBITDA margins of 11.8% of revenue. In the first
quarter of 2021, TETRA secured the first project outside
the United States, in Argentina, for a fully automated sand recovery
project using our Sandstrom technology. Given the market
share gains and increased demand for this highly effective sand
filtration technology, the Company is investing additional capital
to increase the fleet by approximately 40%. We also continued to
deploy our TETRA BlueLinx automated control system solution
which is a key enabler for our integrated water management
projects, which peaked at a record 35 in the fourth quarter.
Recent weather conditions will have an impact on the first quarter
2021 results as frac crews shut down due to roads not being
passable. The magnitude of these curtailments are currently
being quantified.
Fourth quarter corporate G&A expenses, including non-cash
equity compensation, was $7.6
million, compared to $9.0
million in the third quarter. Fourth quarter corporate
G&A expenses, as it impacts Adjusted EBITDA, were $5.9 million (7.9% of revenue), down 20%
sequentially and down 45% from the fourth quarter of 2019. This
compares to the 44% reduction in revenue in the fourth quarter of
2020 when compared to the same quarter of 2019. Fourth quarter
corporate G&A expenses, as it impacts Adjusted EBITDA, were
reduced by $20 million on an
annualized basis when compared to the fourth quarter of last
year.
Free Cash Flow and Balance Sheet
Cash from operating activities was $12.1
million in the fourth quarter while adjusted free cash flow
from continuing operations was $15.6
million - the seventh quarter in a row that adjusted free
cash flow from continuing operations was positive. The fourth
quarter includes the benefit of $14.2
million in proceeds from the sale of compression
equipment.
Liquidity at the end of fourth quarter was $92 million, an improvement of $22 million from the same period last
year. Liquidity is defined as unrestricted cash plus
availability under the revolving credit facility.
Consolidated debt was $200 million,
while net debt was $133
million. At the end of the fourth quarter unrestricted
cash was $67 million.
Non-recurring Charges and Expenses Items
Non-recurring charges and expenses are on Schedule E and include
$1.2 million of bad debt expense,
$1.3M of restructuring and severance
expense, $0.8M of transaction
expenses mainly related to the CSI Compressco deconsolidation and
$0.1 million of other expenses.
Conference Call
TETRA will host a conference call to discuss these results on
February 25, 2021, at 10:30 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
investor relations website at
http://ir.tetratec.com/events-and-webcasts. A replay of the
conference call will be available at 1-877-344-7529 conference
number 10151749, 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: Statement Regarding Use of Non-GAAP Financial
Measures
Schedule E: Special Items
Schedule F: Non-GAAP Reconciliation to GAAP Financials
Schedule G: Non-GAAP Reconciliation of Net Debt
Schedule H: Non-GAAP Reconciliation to Adjusted Free Cash Flow
Schedule I: Non-GAAP Reconciliation to Adjusted Free Cash Flow From
Continuing Operations
Schedule J: Non-GAAP Reconciliation to 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, and
production well testing. TETRA owns an 11% equity
interest in CSI Compressco LP (NASDAQ: CCLP) and approximately 1%
equity interest in Standard Lithium (TSXV: SLL).
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; curtailments in production and
completion activities related to extreme winter weather; expected
customer drilling activity, resumption of shut-in oil production
and capital spending and maintenance spending for 2020 and
2021; 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
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In Thousands, Except
per Share Amounts)
|
Revenues
|
$
|
75,458
|
|
|
$
|
135,910
|
|
|
$
|
377,715
|
|
|
$
|
561,241
|
|
|
|
|
|
|
|
|
|
Cost of sales,
services, and rentals
|
53,239
|
|
|
92,798
|
|
|
271,528
|
|
|
411,050
|
|
Depreciation,
amortization, and accretion
|
9,280
|
|
|
10,296
|
|
|
38,214
|
|
|
47,563
|
|
Impairments and other
charges
|
458
|
|
|
91,890
|
|
|
556
|
|
|
92,037
|
|
Insurance
recoveries
|
—
|
|
|
(149)
|
|
|
(126)
|
|
|
(1,216)
|
|
Total cost of
revenues
|
62,977
|
|
|
194,835
|
|
|
310,172
|
|
|
549,434
|
|
Gross profit
|
12,481
|
|
|
(58,925)
|
|
|
67,543
|
|
|
11,807
|
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
16,363
|
|
|
24,134
|
|
|
76,697
|
|
|
96,466
|
|
Goodwill
impairment
|
—
|
|
|
25,784
|
|
|
—
|
|
|
25,784
|
|
Interest expense,
net
|
4,692
|
|
|
5,282
|
|
|
18,926
|
|
|
21,256
|
|
(Gain) loss on sales
of assets
|
18
|
|
|
(558)
|
|
|
(2,878)
|
|
|
(1,665)
|
|
Warrants fair value
adjustment (income) expense
|
76
|
|
|
(589)
|
|
|
(251)
|
|
|
(1,624)
|
|
Other (income)
expense, net
|
(1,452)
|
|
|
(396)
|
|
|
135
|
|
|
(301)
|
|
Income (loss) before
taxes and discontinued operations
|
(7,216)
|
|
|
(112,582)
|
|
|
(25,086)
|
|
|
(128,109)
|
|
Provision (benefit)
for income taxes
|
(119)
|
|
|
439
|
|
|
1,758
|
|
|
2,811
|
|
Income (Loss) before
discontinued operations
|
(7,097)
|
|
|
(113,021)
|
|
|
(26,844)
|
|
|
(130,920)
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of taxes
|
(7,954)
|
|
|
(359)
|
|
|
(24,191)
|
|
|
(16,042)
|
|
Net income
(loss)
|
(15,051)
|
|
|
(113,380)
|
|
|
(51,035)
|
|
|
(146,962)
|
|
Less: net (income)
loss attributable to noncontrolling interest
|
16
|
|
|
(451)
|
|
|
(108)
|
|
|
(451)
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
(15,035)
|
|
|
$
|
(113,831)
|
|
|
$
|
(51,143)
|
|
|
$
|
(147,413)
|
|
|
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
|
|
|
Income (loss) before
discontinued operations attributable to TETRA
stockholders
|
$
|
(0.06)
|
|
|
$
|
(0.91)
|
|
|
$
|
(0.22)
|
|
|
$
|
(1.04)
|
|
Income (loss) from
discontinued operations attributable to TETRA
stockholders
|
(0.06)
|
|
|
0.00
|
|
|
(0.19)
|
|
|
(0.13)
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
(0.12)
|
|
|
$
|
(0.91)
|
|
|
$
|
(0.41)
|
|
|
$
|
(1.17)
|
|
Weighted average shares
outstanding
|
125,976
|
|
|
125,541
|
|
|
125,838
|
|
|
125,600
|
|
|
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
|
|
|
Income (loss) before
discontinued operations attributable to TETRA
stockholders
|
$
|
(0.06)
|
|
|
$
|
(0.91)
|
|
|
$
|
(0.22)
|
|
|
$
|
(1.04)
|
|
Income (loss) from
discontinued operations attributable to TETRA
stockholders
|
(0.06)
|
|
|
0.00
|
|
|
(0.19)
|
|
|
(0.13)
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
(0.12)
|
|
|
$
|
(0.91)
|
|
|
$
|
(0.41)
|
|
|
$
|
(1.17)
|
|
Weighted average shares
outstanding
|
125,976
|
|
|
125,541
|
|
|
125,838
|
|
|
125,600
|
|
Schedule B: Financial Results By Segment (Unaudited)
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In
Thousands)
|
Revenues by
segment:
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
44,128
|
|
|
$
|
78,567
|
|
|
$
|
242,661
|
|
|
$
|
279,255
|
|
Water & Flowback
Services Division
|
31,330
|
|
|
57,343
|
|
|
135,054
|
|
|
281,986
|
|
Eliminations and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
revenues
|
$
|
75,458
|
|
|
$
|
135,910
|
|
|
$
|
377,715
|
|
|
$
|
561,241
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss) by segment:
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
14,226
|
|
|
$
|
(61,687)
|
|
|
$
|
77,206
|
|
|
$
|
(15,034)
|
|
Water & Flowback
Services Division
|
(1,573)
|
|
|
2,881
|
|
|
(8,857)
|
|
|
27,458
|
|
Eliminations and
other
|
(172)
|
|
|
(119)
|
|
|
(806)
|
|
|
(617)
|
|
Total gross
profit
|
$
|
12,481
|
|
|
$
|
(58,925)
|
|
|
$
|
67,543
|
|
|
$
|
11,807
|
|
|
|
|
|
|
|
|
|
Income (loss)
before taxes by segment:
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
10,979
|
|
|
$
|
(66,086)
|
|
|
$
|
55,334
|
|
|
$
|
(33,969)
|
|
Water & Flowback
Services Division
|
(3,442)
|
|
|
(28,441)
|
|
|
(21,850)
|
|
|
(21,173)
|
|
Corporate,
Eliminations, and other
|
(14,753)
|
|
|
(18,055)
|
|
|
(58,570)
|
|
|
(72,967)
|
|
Total income (loss)
before taxes
|
$
|
(7,216)
|
|
|
$
|
(112,582)
|
|
|
$
|
(25,086)
|
|
|
$
|
(128,109)
|
|
Please note that the above results by Segment include special
charges and expenses. Please see Schedule E for details of those
special charges and expenses.
Schedule C: Consolidated Balance Sheet (December 31, 2020 Unaudited)
|
December 31,
2020
|
|
December 31,
2019
|
|
(In
Thousands)
|
Balance
Sheet:
|
|
|
|
Cash (excluding
restricted cash)
|
$
|
67,252
|
|
|
$
|
15,334
|
|
Accounts receivable,
net
|
64,078
|
|
|
111,194
|
|
Inventories
|
76,658
|
|
|
80,473
|
|
Assets of
discontinued operations
|
710,006
|
|
|
822,699
|
|
Other current
assets
|
13,552
|
|
|
17,012
|
|
PP&E,
net
|
96,856
|
|
|
116,270
|
|
Other
assets
|
104,437
|
|
|
108,940
|
|
Total
assets
|
$
|
1,132,839
|
|
|
$
|
1,271,922
|
|
|
|
|
|
Liabilities of
discontinued operations
|
$
|
734,039
|
|
|
$
|
755,766
|
|
Other current
liabilities
|
64,039
|
|
|
86,261
|
|
Long-term
debt
|
199,894
|
|
|
204,633
|
|
Long-term portion of
asset retirement obligations
|
12,484
|
|
|
12,762
|
|
Warrants
liability
|
198
|
|
|
449
|
|
Operating lease
liabilities
|
37,569
|
|
|
40,097
|
|
Other long-term
liabilities
|
13,554
|
|
|
9,128
|
|
Equity
|
71,062
|
|
|
162,826
|
|
Total liabilities and
equity
|
$
|
1,132,839
|
|
|
$
|
1,271,922
|
|
Schedule D: Statement Regarding Use of Non-GAAP
Financial Measures
In addition to financial results determined in accordance with
U.S. 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 U.S. GAAP measures. The non-GAAP financial
measures should be considered in addition to, not as a substitute
for, financial measures prepared in accordance with U.S. 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 E: Special Items (Unaudited)
|
Three Months
Ended
December 31,
2020
|
|
|
Income (Loss)
before taxes
and
discontinued
operations
|
Provision
(Benefit) for
Tax
|
Noncontrolling
Interest
|
Net Income
Attributable to
TETRA
Stockholders
|
Diluted
EPS
|
|
(In
Thousands)
|
Income (loss)
attributable to TETRA stockholders,
excluding special items and discontinued
operations
|
$
|
(3,775)
|
|
$
|
(119)
|
|
$
|
(16)
|
|
$
|
(3,640)
|
|
$
|
(0.03)
|
|
Stock Warrant fair
value adjustment
|
(76)
|
|
—
|
|
—
|
|
(76)
|
|
0.00
|
|
Transaction and other
expenses
|
(826)
|
|
—
|
|
—
|
|
(826)
|
|
(0.01)
|
|
Impairments and other
non-EBITDA charges
|
—
|
|
—
|
|
—
|
|
—
|
|
0.00
|
|
Restructuring
charges
|
(984)
|
|
—
|
|
—
|
|
(984)
|
|
(0.01)
|
|
Severance
|
(332)
|
|
—
|
|
—
|
|
(332)
|
|
0.00
|
|
Bad Debt
|
(1,223)
|
|
—
|
|
—
|
|
(1,223)
|
|
(0.01)
|
|
Net income (loss)
before discontinued operations
|
(7,216)
|
|
(119)
|
|
(16)
|
|
(7,081)
|
|
(0.06)
|
|
Loss from discontinued
operations
|
|
|
|
(7,954)
|
|
(0.06)
|
|
Net Income (loss)
attributable to TETRA stockholders,
as reported
|
|
|
|
$
|
(15,035)
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
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)
|
Income (loss)
attributable to TETRA stockholders,
excluding special items and discontinued operations
|
$
|
(7,424)
|
|
$
|
(50)
|
|
$
|
46
|
|
$
|
(7,420)
|
|
$
|
(0.06)
|
|
Transaction and other
expenses
|
113
|
|
—
|
|
—
|
|
113
|
|
0.00
|
|
Impairments and other
non-EBITDA charges
|
(97)
|
|
—
|
|
—
|
|
(97)
|
|
0.00
|
|
Restructuring
charges
|
(790)
|
|
—
|
|
—
|
|
(790)
|
|
(0.01)
|
|
Severance
|
(1,260)
|
|
—
|
|
—
|
|
(1,260)
|
|
(0.01)
|
|
Bad Debt
|
—
|
|
—
|
|
—
|
|
—
|
|
0.00
|
|
Goodwill
Impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
0.00
|
|
Effect of deferred tax
valuation allowance and other
related tax adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
0.00
|
|
Net income (loss)
before discontinued operations
|
(9,458)
|
|
(50)
|
|
46
|
|
(9,454)
|
|
(0.08)
|
|
Loss from discontinued
operations
|
|
|
|
(3,848)
|
|
(0.02)
|
|
Net Income (loss)
attributable to TETRA
stockholders, as reported
|
|
|
|
$
|
(13,302)
|
|
$
|
(0.10)
|
|
|
Three Months
Ended
December 31,
2019
|
|
|
|
|
Income (Loss)
before taxes
and
discontinued
operations
|
Provision
(Benefit) for
Tax
|
Noncontrolling
Interest
|
Net Income
Attributable
to TETRA
Stockholders
|
Diluted
EPS
|
|
|
(In
Thousands)
|
|
Income (loss)
attributable to TETRA stockholders,
excluding special items and discontinued
operations
|
$
|
4,555
|
|
$
|
958
|
|
$
|
451
|
|
$
|
3,146
|
|
$
|
0.02
|
|
|
Stock Warrant fair
value adjustment
|
588
|
|
123
|
|
—
|
|
465
|
|
0.00
|
|
|
Transaction and other
expenses
|
(185)
|
|
(39)
|
|
—
|
|
(146)
|
|
0.00
|
|
|
Impairments and other
non-EBITDA charges
|
(91,606)
|
|
(19,237)
|
|
—
|
|
(72,369)
|
|
(0.58)
|
|
|
Restructuring
charges
|
(552)
|
|
(116)
|
|
—
|
|
(436)
|
|
0.00
|
|
|
Severance
|
—
|
|
—
|
|
—
|
|
—
|
|
0.00
|
|
|
Earnout
Adjustment
|
200
|
|
42
|
|
—
|
|
160
|
|
0.00
|
|
|
Lee Plant Facility
Insurance Proceeds
|
202
|
|
42
|
|
—
|
|
160
|
|
0.00
|
|
|
Goodwill
Impairment
|
(25,784)
|
|
(5,415)
|
|
—
|
|
(20,369)
|
|
(0.16)
|
|
|
Effect of deferred
tax valuation allowance and other
related tax adjustments
|
—
|
|
24,081
|
|
—
|
|
(24,081)
|
|
(0.19)
|
|
|
Net income (loss)
before discontinued operations
|
(112,582)
|
|
439
|
|
451
|
|
(113,472)
|
|
(0.91)
|
|
|
Loss from discontinued
operations
|
|
|
|
(359)
|
|
0.00
|
|
|
Net Income (loss)
attributable to TETRA stockholders,
as reported
|
|
|
|
$
|
(113,831)
|
|
$
|
(0.91)
|
|
|
|
|
|
Twelve Months
Ended
December 31,
2020
|
|
|
Income (Loss)
before taxes
and discontinued
operations
|
Provision
(Benefit) for
Tax
|
Noncontrolling
Interest
|
Net Income
Attributable
to TETRA
Stockholders
|
Diluted
EPS
|
|
(In
Thousands)
|
Income (loss)
attributable to TETRA stockholders,
excluding special items and discontinued
operations
|
$
|
(12,346)
|
|
$
|
1,758
|
|
$
|
108
|
|
$
|
(14,212)
|
|
$
|
(0.11)
|
|
Stock Warrant fair
value adjustment
|
251
|
|
—
|
|
—
|
|
251
|
|
0.00
|
|
Transaction and other
expenses
|
(1,027)
|
|
—
|
|
—
|
|
(1,027)
|
|
(0.01)
|
|
Impairments and other
non-EBITDA charges
|
(97)
|
|
—
|
|
—
|
|
(97)
|
|
0.00
|
|
Restructuring
charges
|
(2,252)
|
|
—
|
|
—
|
|
(2,252)
|
|
(0.02)
|
|
Severance
|
(4,574)
|
|
—
|
|
—
|
|
(4,574)
|
|
(0.04)
|
|
Bad Debt
|
(5,041)
|
|
—
|
|
—
|
|
(5,041)
|
|
(0.04)
|
|
Effect of Deferred Tax
Valuation Allowance and other related
tax adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Net Income (loss)
before discontinued operations
|
(25,086)
|
|
1,758
|
|
108
|
|
(26,952)
|
|
(0.22)
|
|
Loss from discontinued
operations
|
|
|
|
(24,191)
|
|
(0.19)
|
|
Net Income (loss)
attributable to TETRA stockholders,
as reported
|
|
|
|
$
|
(51,143)
|
|
$
|
(0.41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
2019
|
|
|
Income (Loss)
before taxes
and
discontinued
operations
|
Provision
(Benefit) for
Tax
|
Noncontrolling
Interest
|
Net Income
Attributable
to TETRA
Stockholders
|
Diluted
EPS
|
|
(In
Thousands)
|
Income (loss)
attributable to TETRA stockholders, excluding
special items and discontinued
operations
|
$
|
(10,829)
|
|
$
|
(2,720)
|
|
$
|
451
|
|
$
|
(8,560)
|
|
$
|
(0.07)
|
|
Stock Warrant fair
value adjustment
|
1,624
|
|
341
|
|
—
|
|
1,283
|
|
0.01
|
|
5% Cash Warrant fair
value adjustment
|
209
|
|
44
|
|
—
|
|
165
|
|
0.00
|
|
Transaction and other
expenses
|
(574)
|
|
(121)
|
|
—
|
|
(453)
|
|
0.00
|
|
Impairments and other
non-EBITDA charges
|
(91,753)
|
|
(19,268)
|
|
—
|
|
(72,485)
|
|
(0.58)
|
|
Restructuring
charges
|
(552)
|
|
(116)
|
|
—
|
|
(436)
|
|
0.00
|
|
Severance
|
(2,065)
|
|
—
|
|
—
|
|
(2,065)
|
|
(0.02)
|
|
Bad Debt
|
(76)
|
|
(2)
|
|
—
|
|
(74)
|
|
0.00
|
|
Earnout
Adjustment
|
1,000
|
|
210
|
|
—
|
|
790
|
|
0.01
|
|
Lee Plant Facility
Insurance Proceeds
|
691
|
|
145
|
|
—
|
|
546
|
|
0.00
|
|
Goodwill
Impairment
|
(25,784)
|
|
(5,415)
|
|
—
|
|
(20,369)
|
|
(0.16)
|
|
Effect of deferred
tax valuation allowance and other related tax
adjustments
|
—
|
|
29,713
|
|
—
|
|
(29,713)
|
|
(0.24)
|
|
Net Income (loss)
before discontinued operations
|
(128,109)
|
|
2,811
|
|
451
|
|
(131,371)
|
|
(1.04)
|
|
Loss from
discontinued operations
|
|
|
|
(16,042)
|
|
(0.13)
|
|
Net Income (loss)
attributable to TETRA stockholders,
as reported
|
|
|
|
$
|
(147,413)
|
|
$
|
(1.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule F: Non-GAAP Reconciliation to GAAP Financials
(Unaudited)*
|
Three Months
Ended
December 31,
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
Comp.
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids
&
Products Division
|
|
|
$
|
10,979
|
|
$
|
1,880
|
|
$
|
12,859
|
|
$
|
(265)
|
|
$
|
1,810
|
|
$
|
—
|
|
$
|
14,404
|
|
Water & Flowback
Services
Division
|
|
|
(3,442)
|
|
875
|
|
(2,567)
|
|
(1,506)
|
|
7,757
|
|
—
|
|
3,684
|
|
Eliminations and
other
|
|
|
4
|
|
—
|
|
4
|
|
—
|
|
(4)
|
|
—
|
|
—
|
|
Subtotal
|
|
|
7,541
|
|
2,755
|
|
10,296
|
|
(1,771)
|
|
9,563
|
|
—
|
|
18,088
|
|
Corporate
G&A
|
|
|
(7,550)
|
|
610
|
|
(6,940)
|
|
—
|
|
—
|
|
991
|
|
(5,949)
|
|
Other
|
|
|
(7,207)
|
|
76
|
|
(7,131)
|
|
5,817
|
|
176
|
|
—
|
|
(1,138)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(7,097)
|
|
$
|
(119)
|
|
$
|
(7,216)
|
|
$
|
3,441
|
|
$
|
(3,775)
|
|
$
|
4,046
|
|
$
|
9,739
|
|
$
|
991
|
|
$
|
11,001
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Comp.
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
|
|
Eliminations and
other
|
|
|
3
|
|
—
|
|
3
|
|
—
|
|
(3)
|
|
—
|
|
—
|
|
Subtotal
|
|
|
4,013
|
|
1,003
|
|
5,016
|
|
(368)
|
|
9,291
|
|
—
|
|
13,939
|
|
Corporate
G&A
|
|
|
(8,959)
|
|
934
|
|
(8,025)
|
|
—
|
—
|
|
983
|
|
(7,422)
|
|
Other
|
|
|
(4,513)
|
|
97
|
|
(4,416)
|
|
4,706
|
|
173
|
|
—
|
|
463
|
|
TETRA excluding
Discontinued Operations
|
$
|
9,409
|
|
$
|
(50)
|
|
$
|
(9,459)
|
|
$
|
2,034
|
|
$
|
(7,425)
|
|
$
|
4,338
|
|
$
|
9,464
|
|
$
|
983
|
|
$
|
7,360
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
2019
|
|
|
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
|
Depreciation
& Amortization
|
Adjusted
Equity
Comp.
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids
&
Products Division
|
|
|
$
|
(66,086)
|
|
$
|
91,482
|
|
$
|
25,396
|
|
$
|
(167)
|
|
$
|
2,454
|
|
$
|
—
|
|
$
|
27,683
|
|
Water & Flowback
Services
Division
|
|
|
(28,441)
|
|
26,343
|
|
(2,098)
|
|
5
|
|
7,718
|
|
—
|
|
5,625
|
|
Eliminations and
other
|
|
|
4
|
|
—
|
|
4
|
|
—
|
|
(4)
|
|
—
|
|
—
|
|
Subtotal
|
|
|
(94,523)
|
|
117,825
|
|
23,302
|
|
(162)
|
|
10,168
|
|
—
|
|
33,308
|
|
Corporate
G&A
|
|
|
(12,455)
|
|
—
|
|
(12,455)
|
|
—
|
|
—
|
|
1,547
|
|
(10,908)
|
|
Other
|
|
|
(5,606)
|
|
(403)
|
|
(6,009)
|
|
5,444
|
|
129
|
|
—
|
|
(436)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(113,021)
|
|
$
|
(439)
|
|
$
|
(112,584)
|
|
$
|
117,422
|
|
$
|
4,838
|
|
$
|
5,282
|
|
$
|
10,297
|
|
$
|
1,547
|
|
$
|
21,964
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
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
Comp.
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids
&
Products Division
|
|
|
$
|
55,334
|
|
$
|
6,370
|
|
$
|
61,704
|
|
$
|
(853)
|
|
$
|
7,389
|
|
$
|
—
|
|
$
|
68,240
|
|
Water &
Flowback
Services Division
|
|
|
(21,850)
|
|
3,960
|
|
(17,890)
|
|
(1,594)
|
|
30,384
|
|
—
|
|
10,900
|
|
Eliminations and
other
|
|
|
12
|
|
—
|
|
12
|
|
—
|
|
(12)
|
|
—
|
|
—
|
|
Subtotal
|
|
|
33,496
|
|
10,330
|
|
43,826
|
|
(2,447)
|
|
37,761
|
|
—
|
|
79,140
|
|
Corporate
G&A
|
|
|
(36,201)
|
|
2,185
|
|
(34,016)
|
|
—
|
|
|
4,721
|
|
(29,295)
|
|
Other
|
|
|
(22,381)
|
|
226
|
|
(22,155)
|
|
20,727
|
|
720
|
|
—
|
|
(708)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(26,844)
|
|
$
|
(1,758)
|
|
(25,086)
|
|
$
|
12,741
|
|
$
|
(12,345)
|
|
$
|
18,280
|
|
$
|
38,481
|
|
$
|
4,721
|
|
$
|
49,137
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
2019
|
|
|
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
|
Depreciation
&
Amortization
|
Adjusted
Equity
Comp.
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids
&
Products Division
|
|
|
$
|
(33,969)
|
|
$
|
91,140
|
|
$
|
57,171
|
|
$
|
(720)
|
|
$
|
13,518
|
|
$
|
—
|
|
$
|
69,969
|
|
Water & Flowback
Services
Division
|
|
|
(21,173)
|
|
25,619
|
|
4,446
|
|
(1)
|
|
33,424
|
|
—
|
|
37,869
|
|
Eliminations and
other
|
|
|
14
|
|
—
|
|
14
|
|
—
|
|
(14)
|
|
—
|
|
—
|
|
Subtotal
|
|
|
(55,128)
|
|
116,759
|
|
61,631
|
|
(721)
|
|
46,928
|
|
—
|
|
107,838
|
|
Corporate
G&A
|
|
|
(51,466)
|
|
2,085
|
|
(49,381)
|
|
|
|
7,064
|
|
(42,317)
|
|
Other
|
|
|
(21,515)
|
|
(1,471)
|
|
(22,986)
|
|
21,473
|
|
635
|
|
—
|
|
(878)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(130,920)
|
|
$
|
(2,811)
|
|
$
|
(128,109)
|
|
$
|
117,373
|
|
$
|
(10,736)
|
|
$
|
20,752
|
|
$
|
47,563
|
|
$
|
7,064
|
|
$
|
64,643
|
|
|
|
|
|
|
|
|
|
|
|
* Excludes the
impact from discontinued operations.
|
Schedule G: Non-GAAP Reconciliation of Net Debt
(Unaudited)
The following reconciliation of net debt is presented as a
supplement to financial results prepared in accordance with
GAAP.
(In
Millions)
|
December 31,
2020
|
|
December 31,
2019
|
|
|
|
|
Non-restricted
cash
|
$
|
67.3
|
|
|
$
|
15.3
|
|
|
|
|
|
|
Carrying value of
long-term debt:
|
|
|
|
|
Term Credit
Agreement
|
199.9
|
|
|
204.6
|
|
Net debt
|
$
|
132.6
|
|
|
$
|
189.3
|
|
Schedule H: Non-GAAP Reconciliation to Adjusted Free Cash
Flow (Unaudited)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
Dec 31,
2020
|
|
Sep 30,
2020
|
|
Dec 31,
2019
|
|
Dec 31,
2020
|
|
Dec 31,
2019
|
|
(In
Thousands)
|
|
|
|
|
|
|
|
|
|
|
Cash from operating
activities
|
$
|
12,085
|
|
|
$
|
4,440
|
|
|
$
|
5,250
|
|
|
$
|
76,912
|
|
|
$
|
90,232
|
|
Capital expenditures,
net of sales proceeds
|
4,089
|
|
|
16,990
|
|
|
(8,348)
|
|
|
6,782
|
|
|
(95,388)
|
|
Free cash
flow
|
16,174
|
|
|
21,430
|
|
|
(3,098)
|
|
|
83,694
|
|
|
(5,156)
|
|
Distributions from CSI
Compressco LP (1)
|
168
|
|
|
168
|
|
|
168
|
|
|
674
|
|
|
674
|
|
Adjusted free cash
flow
|
16,342
|
|
|
21,598
|
|
|
(2,930)
|
|
|
84,368
|
|
|
(4,482)
|
|
(1) Distributions from CCLP relate to
TETRA's former 1.4% general partner interest and 33.7% limited
partner interest. Following the GP Sale on January 29, 2021, TETRA
retained a 10.9% limited partner interest in CCLP.
|
Schedule I: Non-GAAP Reconciliation
to Adjusted Free Cash Flow From Continuing Operations
(unaudited)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
Dec 31,
2020
|
|
Sep 30,
2020
|
|
Dec 31,
2019
|
|
Dec 31,
2020
|
|
Dec 31,
2019
|
|
(In
Thousands)
|
Cash from operating
activities
|
$
|
12,085
|
|
|
$
|
4,440
|
|
|
$
|
5,250
|
|
|
$
|
76,912
|
|
|
$
|
90,232
|
|
Less: Discontinued
operations operating
activities (adjusted EBITDA)
|
7,033
|
|
|
(4,451)
|
|
|
(90)
|
|
|
20,762
|
|
|
67,696
|
|
Cash from continued
operating activities
|
5,052
|
|
|
8,891
|
|
|
5,340
|
|
|
56,150
|
|
|
22,536
|
|
Continuing operations
capital
expenditures
|
(3,830)
|
|
|
(1,560)
|
|
|
(4,028)
|
|
|
2,116
|
|
|
(30,615)
|
|
Less: Investment in
(sale of) CCLP
Compressors
|
14,195
|
|
|
—
|
|
|
(810)
|
|
|
—
|
|
|
(14,782)
|
|
Plus: Distributions
from CSI
Compressco LP(1)
|
168
|
|
|
168
|
|
|
168
|
|
|
674
|
|
|
674
|
|
Adjusted free cash
flow from continuing
operations
|
15,585
|
|
|
7,499
|
|
|
670
|
|
|
58,940
|
|
|
(22,187)
|
|
|
(1) Distributions from CCLP relate to
TETRA's former 1.4% general partner interest and 33.7% limited
partner interest. Following the GP Sale on January 29, 2021, TETRA
retained a 10.9% limited partner interest in CCLP.
|
Schedule J: Non-GAAP Reconciliation to Adjusted
EBITDA Margins and Adjusted Income (Loss) before tax
margins (Unaudited)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec 31,
2020
|
|
Sep 30,
2020
|
|
Dec 31,
2019
|
|
Dec 31,
2020
|
|
Dec 31,
2019
|
|
|
(In
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
75,458
|
|
|
$
|
73,484
|
|
|
$
|
135,910
|
|
|
$
|
377,715
|
|
|
$
|
561,241
|
|
Income Before
Tax
|
|
(7,216)
|
|
|
(9,458)
|
|
|
(112,582)
|
|
|
(25,086)
|
|
|
(128,109)
|
|
Adjusted income
before tax (Schedule F)
|
|
(3,775)
|
|
|
(7,424)
|
|
|
4,838
|
|
|
(12,345)
|
|
|
(10,736)
|
|
Adjusted EBITDA
(Schedule F)
|
|
11,001
|
|
|
7,360
|
|
|
21,964
|
|
|
49,137
|
|
|
64,643
|
|
Income Before Tax as
a % of Revenue
|
|
(9.6)
|
%
|
|
(12.9)
|
%
|
|
(82.8)
|
%
|
|
(6.6)
|
%
|
|
(22.8)
|
%
|
Adjusted income
before tax as a % of Revenue
|
|
(5.0)
|
%
|
|
(10.1)
|
%
|
|
3.6
|
%
|
|
(3.3)
|
%
|
|
(1.9)
|
%
|
Adjusted EBITDA as a
% of Revenue
|
|
14.6
|
%
|
|
9.5
|
%
|
|
16.2
|
%
|
|
13.0
|
%
|
|
11.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Completion Fluids
& Products
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
44,128
|
|
|
$
|
51,950
|
|
|
$
|
78,567
|
|
|
$
|
242,661
|
|
|
$
|
279,255
|
|
Income Before
Tax
|
|
10,979
|
|
|
11,757
|
|
|
(66,086)
|
|
|
55,334
|
|
|
(33,969)
|
|
Adjusted income
before tax (Schedule F)
|
|
12,859
|
|
|
12,485
|
|
|
25,396
|
|
|
61,704
|
|
|
57,171
|
|
Adjusted EBITDA
(Schedule F)
|
|
14,404
|
|
|
13,904
|
|
|
27,683
|
|
|
68,240
|
|
|
69,969
|
|
Adjusted income
before tax as a % of Revenue
|
|
24.9
|
%
|
|
22.6
|
%
|
|
(84.1)
|
%
|
|
22.8
|
%
|
|
(12.2)
|
%
|
Income Before Tax as
a % of Revenue
|
|
29.1
|
%
|
|
24.0
|
%
|
|
32.3
|
%
|
|
25.4
|
%
|
|
20.5
|
%
|
Adjusted EBITDA as a
% of Revenue
|
|
32.6
|
%
|
|
26.8
|
%
|
|
35.2
|
%
|
|
28.1
|
%
|
|
25.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Water &
Flowback Services
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
31,330
|
|
|
$
|
21,535
|
|
|
$
|
57,343
|
|
|
$
|
135,054
|
|
|
$
|
281,986
|
|
Income Before
Tax
|
|
(3,442)
|
|
|
(7,747)
|
|
|
(28,441)
|
|
|
(21,850)
|
|
|
(21,173)
|
|
Adjusted income
before tax (Schedule F)
|
|
(2,567)
|
|
|
(7,472)
|
|
|
(2,098)
|
|
|
(17,890)
|
|
|
4,446
|
|
Adjusted EBITDA
(Schedule F)
|
|
3,684
|
|
|
35
|
|
|
5,625
|
|
|
10,900
|
|
|
37,869
|
|
Income Before Tax as
a % of Revenue
|
|
(11.0)
|
%
|
|
(36.0)
|
%
|
|
(49.6)
|
%
|
|
(16.2)
|
%
|
|
(7.5)
|
%
|
Adjusted income
before tax as a % of Revenue
|
|
(8.2)
|
%
|
|
(34.7)
|
%
|
|
(3.7)
|
%
|
|
(13.2)
|
%
|
|
1.6
|
%
|
Adjusted EBITDA as a
% of Revenue
|
|
11.8
|
%
|
|
0.2
|
%
|
|
9.8
|
%
|
|
8.1
|
%
|
|
13.4
|
%
|
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SOURCE TETRA Technologies, Inc.