THE WOODLANDS, Texas,
May 4, 2021 /PRNewswire/ -- TETRA Technologies, Inc.
("TETRA" or the "Company") (NYSE:TTI) today announced first quarter
2021 results.
First quarter 2021 revenue was $77
million, a sequential increase of 2% over the fourth quarter
of 2020. Net loss before discontinued operations was
$11.9 million, inclusive of
$6.6 million of non-recurring charges
and expenses. This compares to a net loss before discontinued
operations of $7.1 million in the
fourth quarter, inclusive of $3.4
million of non-recurring charges and expenses. Net
income per share attributable to TETRA stockholders in the first
quarter was $0.86, which includes a
$121 million gain following the
deconsolidation of CSI Compressco LP ("CSI Compressco"),
approximately $107 million of which
was non-cash. Excluding the non-recurring charges and
expenses, the net loss per share attributable to TETRA stockholders
was $0.04. Adjusted EBITDA
excluding non-recurring charges, was $9.0
million, which includes a $4.0
million benefit from the increase in TETRA's equity
ownership in Standard Lithium and CSI Compressco. Cash flow
from operating activities was $5.8
million in the first quarter of 2021 and compares to
$12.1 million in the fourth quarter
of 2020, while adjusted free cash flow from continuing operations
was $5.4 million, compared to
$15.6 million in the fourth quarter
of 2020. Total debt of $171 million
at the end of the first quarter 2021 was reduced by $29 million from the fourth quarter of
2020. Net debt at the end of the first quarter was
$117 million.
Brady Murphy, TETRA's Chief
Executive Officer, stated, "The first quarter of 2021 represents a
full year since the start of the global COVID-19 pandemic and
despite the February winter storm impacting our quarterly financial
results, I am pleased with the critical milestones we achieved
during the quarter that are accelerating our opportunities in low
carbon energy markets and positioning us very well for an improving
oil and gas market. During the quarter we accomplished a
successful deconsolidation of CSI Compressco, reduced our total
debt by $29 million, achieved eight
straight quarters of positive adjusted free cash flow from
continuing operations, maintained positive adjusted EBITDA for our
Water and Flowback segment despite the historical February winter
storm impact, and advanced several of our low carbon initiatives
ahead of schedule including our announcement yesterday on our
strategic partnership with CarbonFree for Carbon Capture
Utilization and Storage (CCUS). As oil prices reached
pre-COVID-19 levels and stabilized for the past few months, we
believe both the U.S. and international markets will continue with
meaningful recovery for the rest of 2021 with continuing momentum
into 2022.
"In the first quarter, we generated $9.0
million of adjusted EBITDA which was inclusive of an
estimated unfavorable impact of $3.1
million due to the severe weather conditions during February
that shut down fracking activity in several of our key markets and
negatively impacted the supply chain for our industrial chemicals
operations. In March we saw a strong rebound of activity with
double digit adjusted EBITDA margins in our Water & Flowback
Services segment and over 25% adjusted EBITDA margins for our
Completion Fluids & Products segment. As we enter the
second quarter, we see stronger activity levels that are well above
our March run rate. We are optimistic for delivering a very
solid second quarter that will be representative of what we can
achieve in the current market environment as we leverage our strong
industrial chemicals business, proprietary automation technology,
and strong international and offshore market position for
completion fluids. Although we are seeing some inflationary
costs for fuel and wages, we have been successful pushing across
price increases which will allow us to further improve our margins
in the US onshore business. Since the issuance of our prior
press release, we secured a second project in Argentina for a fully automated sand recovery
using our proprietary SandstromTM advanced
cyclone technology. Our TETRA
BlueLinxtm digitized control system solution
continues to be a key enabler for our integrated water management
projects as we achieved a record high 47 integrated water
management projects with 22 different customers in the first
quarter, up from 35 projects in the fourth quarter. Our
Northern Europe industrial chemicals business is off to a strong
start in the second quarter, as they have also been able to
successfully secure price increases.
"Adjusted EBITDA in the first quarter included $4.0 million in gains on the increased equity
value of our holdings in CSI Compressco LP and Standard Lithium
where we own approximately 11% and 1%, respectively.
Following the earlier announcement on the deconsolidation of CSI
Compressco and reflecting the $77
million of cash from operating activities and the
$59 million of adjusted free cash
flow from continuing operations that we generated in 2020, we have
reduced our term loan by $36 million
from $220.5 million as of
September 30, 2020 to $184.2 million as of March
31, 2021. Additionally, at the end of March no amounts
were outstanding under our bank revolver.
"We continue to invest significant management time and technical
expertise to evolve our low carbon opportunities with meaningful
advancements in each of the key areas of Carbon Capture Utilization
and Storage as well as zinc bromide and lithium for energy
storage. We are pleased to announce that we reached an
agreement with CarbonFree yesterday in which we believe is a step
change for the technical and commercial model for Carbon Capture
Utilization and Storage. We have also qualified our "TETRA
PureFlow" ultra-pure zinc bromide with two technology leaders in
the energy storage space, with first revenues expected as early as
this year. In April we received our additional Standard
Lithium shares per our agreement. We expect to continue to
make meaningful progress on these initiatives in the coming
quarters to further evolve our diverse revenue stream and to
accelerate our entry into low carbon energy."
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 I for reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP
measures.
First Quarter Results and Highlights
A summary of key financial metrics for the first quarter are as
follows:
First Quarter
2021 Results
|
|
Three Months
Ended
|
|
March 31,
2021
|
|
December 31,
2020
|
March 31,
2020
|
|
(In Thousands, Except
per Share Amounts)
|
Revenue
|
$
|
77,324
|
|
|
$
|
75,458
|
|
|
$
|
132,704
|
|
(Loss)/income before
discontinued operations
|
(11,943)
|
|
|
(7,097)
|
|
|
2,992
|
|
Adjusted EBITDA
before discontinued operations
|
8,981
|
|
|
11,001
|
|
|
21,832
|
|
GAAP EPS before
discontinued operations attributable to TETRA
stockholders
|
(0.10)
|
|
|
(0.06)
|
|
|
0.02
|
|
Adjusted EPS
attributable to TETRA stockholders
|
(0.04)
|
|
|
(0.03)
|
|
|
0.04
|
|
GAAP net cash
provided by operating activities
|
5,819
|
|
|
12,085
|
|
|
22,176
|
|
Adjusted free cash
flow from continuing operations
|
$
|
5,369
|
|
|
$
|
15,585
|
|
|
$
|
4,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion Fluids & Products first quarter of 2021 revenue
of $46.5 million increased 5% from
the fourth quarter of 2020 driven by higher calcium chloride sales
on the winter weather conditions and improving oil and gas demand,
somewhat offsetting lower sales for our high value completion
fluids for international and offshore oil and gas markets.
Completion Fluids & Products income before taxes was
$9.0 million in the first quarter
(19.4% of revenue) compared to $11.0
million (24.9% of revenue) in the fourth quarter of
2020. Adjusted EBITDA of $11.0
million decreased $3.4 million
sequentially. First quarter Adjusted EBITDA included
$1.1 million favorable impact from
the Company's agreement with Standard Lithium. We estimate
that the first quarter adverse weather conditions negatively
impacted our chemical operations by approximately by $0.8 million in adjusted EBITDA, mainly on a
disruption to our chemicals supply chain and onshore fluids.
Water & Flowback Services revenue was $30.8 million in the first quarter of 2021, a
decrease of 2% from the fourth quarter of 2020, and loss before
taxes was $5.5 million.
Adjusted EBITDA of $0.9 million (2.9%
of revenue) decreased $2.8 million
sequentially as the winter storms resulted in activity shutting
down for a period of time in certain regions of the Southwest
United States. We estimate that the impact from the adverse
weather conditions reduced adjusted EBITDA by approximately
$2.3 million during the first
quarter.
Free Cash Flow and Balance Sheet
Cash from operating activities was $5.8
million in the first quarter while adjusted free cash flow
from continuing operations was $5.4
million. Liquidity at the end of first quarter was
$81 million, an improvement of
$18 million from the same period
last year. Liquidity is defined as unrestricted cash plus
availability under the revolving credit facility. At the end
of the first quarter unrestricted cash was $54 million and availability under our credit
facility was $27 million.
Long-term debt was $171 million,
while net debt was $117 million
- an improvement of $16 million
sequentially.
Non-recurring Charges and Expenses Items
Non-recurring charges and expenses are reflected on Schedule E
and include $3.4 million of
cumulative adjustments to long-term incentive cash value awards,
$2.6 million of transaction expenses
mainly related to the CSI Compressco deconsolidation and
$0.6 million restructuring and other
expenses. Income from discontinued operations was
$121 million reflecting a
$121 million gain on the
deconsolidation of CSI Compressco, $107
million of which was non-cash.
Conference Call
TETRA will host a conference call to discuss these results
today, May 4, 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 10155551, 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 From
Continuing Operations
Schedule I: 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 (TSX: 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; potential
revenue associated with prospective energy storage projects or our
pending carbon capture partnership, expected customer drilling
activity, resumption of shut-in oil production and capital spending
and maintenance spending for 2021 and 2022; 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
|
|
March 31,
2021
|
|
December
31, 2020
|
|
March 31,
2020
|
|
(In Thousands, Except
per Share Amounts)
|
Revenues
|
$
|
77,324
|
|
|
$
|
75,458
|
|
|
$
|
132,704
|
|
|
|
|
|
|
|
Cost of sales,
services, and rentals
|
60,614
|
|
|
53,239
|
|
|
94,115
|
|
Depreciation,
amortization, and accretion
|
8,951
|
|
|
9,280
|
|
|
9,552
|
|
Impairments and other
charges
|
—
|
|
|
458
|
|
|
—
|
|
Insurance
recoveries
|
(110)
|
|
|
—
|
|
|
—
|
|
Total cost of
revenues
|
69,455
|
|
|
62,977
|
|
|
103,667
|
|
Gross profit
|
7,869
|
|
|
12,481
|
|
|
29,037
|
|
|
|
|
|
|
|
General and
administrative expense
|
20,012
|
|
|
16,363
|
|
|
20,348
|
|
Interest expense,
net
|
4,404
|
|
|
4,692
|
|
|
5,292
|
|
Warrants fair value
adjustment expense (income)
|
323
|
|
|
76
|
|
|
(338)
|
|
Other (income)
expense, net
|
(5,095)
|
|
|
(1,434)
|
|
|
22
|
|
(Loss) income before
taxes and discontinued operations
|
(11,775)
|
|
|
(7,216)
|
|
|
3,713
|
|
Provision for income
taxes
|
168
|
|
|
(119)
|
|
|
721
|
|
(Loss) income before
discontinued operations
|
(11,943)
|
|
|
(7,097)
|
|
|
2,992
|
|
Discontinued
operations:
|
|
|
|
|
|
Income (Loss) from
discontinued operations, net of taxes
|
120,990
|
|
|
(22,895)
|
|
|
(13,368)
|
|
Net income
(loss)
|
109,047
|
|
|
(29,992)
|
|
|
(10,376)
|
|
Less: (income) loss
attributable to noncontrolling interest ($333 income in 2021 and
$8,834 loss in 2020 related to discontinued operations)
|
(333)
|
|
|
14,957
|
|
|
8,825
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
108,714
|
|
|
$
|
(15,035)
|
|
|
$
|
(1,551)
|
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
|
(Loss) income from
continuing operations attributable to TETRA stockholders
|
$
|
(0.10)
|
|
|
$
|
(0.06)
|
|
|
$
|
0.02
|
|
Income (loss) from
discontinued operations attributable to TETRA
stockholders
|
$
|
0.96
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.03)
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
0.86
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.01)
|
|
Weighted average shares
outstanding
|
126,149
|
|
125,976
|
|
|
125,587
|
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
|
(Loss) income from
continuing operations attributable to TETRA stockholders
|
$
|
(0.10)
|
|
|
$
|
(0.06)
|
|
|
$
|
0.02
|
|
Income (loss) from
discontinued operations attributable to TETRA
stockholders
|
$
|
0.96
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.03)
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
0.86
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.01)
|
|
Weighted average shares
outstanding
|
126,149
|
|
|
125,976
|
|
|
125,597
|
|
Schedule B: Financial Results By Segment (Unaudited)
|
Three Months
Ended
|
|
March 31,
2021
|
|
December
31, 2020
|
|
March 31,
2020
|
|
(In
Thousands)
|
Revenues by
segment:
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
46,522
|
|
|
$
|
44,128
|
|
|
$
|
75,237
|
|
Water & Flowback
Services Division
|
30,802
|
|
|
31,330
|
|
|
57,467
|
|
Eliminations and
other
|
—
|
|
|
—
|
|
|
—
|
|
Total
revenues
|
$
|
77,324
|
|
|
$
|
75,458
|
|
|
$
|
132,704
|
|
|
|
|
|
|
|
Gross profit
(loss) by segment:
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
11,650
|
|
|
$
|
14,226
|
|
|
$
|
25,964
|
|
Water & Flowback
Services Division
|
(3,615)
|
|
|
(1,573)
|
|
|
3,267
|
|
Eliminations and
other
|
(166)
|
|
|
(172)
|
|
|
(194)
|
|
Total gross
profit
|
$
|
7,869
|
|
|
$
|
12,481
|
|
|
$
|
29,037
|
|
|
|
|
|
|
|
Income (loss)
before taxes by segment:
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
9,010
|
|
|
$
|
10,979
|
|
|
$
|
19,396
|
|
Water & Flowback
Services Division
|
(5,480)
|
|
|
(3,442)
|
|
|
(2,244)
|
|
Eliminations and
other
|
(15,305)
|
|
|
(14,753)
|
|
|
(13,439)
|
|
Total income (loss)
before taxes
|
$
|
(11,775)
|
|
|
$
|
(7,216)
|
|
|
$
|
3,713
|
|
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 (March 31, 2021 Unaudited)
|
March 31,
2021
|
|
December 31,
2020
|
|
(In
Thousands)
|
Balance
Sheet:
|
|
|
|
Cash (excluding
restricted cash)
|
$
|
54,163
|
|
|
$
|
67,252
|
|
Accounts receivable,
net
|
62,408
|
|
|
64,078
|
|
Inventories
|
74,460
|
|
|
76,658
|
|
Assets of
discontinued operations
|
—
|
|
|
710,006
|
|
Other current
assets
|
14,361
|
|
|
13,552
|
|
PP&E,
net
|
92,555
|
|
|
96,856
|
|
Operating lease
right-of-use assets
|
41,293
|
|
|
43,448
|
|
Other
assets
|
67,938
|
|
|
60,989
|
|
Total
assets
|
$
|
407,178
|
|
|
$
|
1,132,839
|
|
|
|
|
|
Liabilities of
discontinued operations
|
$
|
1,746
|
|
|
$
|
734,039
|
|
Other current
liabilities
|
73,323
|
|
|
64,039
|
|
Long-term
debt
|
171,160
|
|
|
199,894
|
|
Long-term portion of
asset retirement obligations
|
12,620
|
|
|
12,484
|
|
Warrant's
liability
|
521
|
|
|
198
|
|
Operating lease
liabilities
|
35,608
|
|
|
37,569
|
|
Other long-term
liabilities
|
9,733
|
|
|
13,554
|
|
Equity
|
102,467
|
|
|
71,062
|
|
Total liabilities and
equity
|
$
|
407,178
|
|
|
$
|
1,132,839
|
|
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, adjusted 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.
Adjusted free cash flow from continuing operations is defined as
cash from operations less discontinued operations EBITDA and
discontinued operations capital expenditures, less capital
expenditures net of sales proceeds and cost of equipment sold and
including cash distributions to TETRA from CSI Compressco LP and
cash from other investments. 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.
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.
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 balance sheet.
Management views 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
|
|
March 31,
2021
|
|
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
|
$
|
(5,156)
|
|
$
|
168
|
|
$
|
—
|
|
$
|
(5,324)
|
|
$
|
(0.04)
|
|
Stock warrant fair
value adjustment
|
(323)
|
|
—
|
|
—
|
|
(323)
|
|
0.00
|
|
Transaction and other
expenses
|
(2,550)
|
|
—
|
|
—
|
|
(2,550)
|
|
(0.02)
|
|
Adjustment to
long-term incentives
|
(2,897)
|
|
—
|
|
—
|
|
(2,897)
|
|
(0.02)
|
|
Former CEO stock
appreciation right expense
|
(509)
|
|
—
|
|
—
|
|
(509)
|
|
(0.00)
|
|
Restructuring
charges
|
(340)
|
|
—
|
|
—
|
|
(340)
|
|
0.00
|
|
Net income (loss) from
continuing operations attributable to TETRA stockholders
|
(11,775)
|
|
168
|
|
—
|
|
(11,943)
|
|
(0.10)
|
|
Income from
discontinued operations
|
|
|
|
120,657
|
|
0.96
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
|
|
|
$
|
108,714
|
|
$
|
0.86
|
|
|
|
|
|
|
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, Except
per Share Amounts)
|
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)
|
|
Restructuring
charges
|
(984)
|
|
—
|
|
—
|
|
(984)
|
|
(0.01)
|
|
Severance
|
(332)
|
|
—
|
|
—
|
|
(332)
|
|
0.00
|
|
Bad Debt
|
(1,223)
|
|
—
|
|
—
|
|
(1,223)
|
|
(0.01)
|
|
Net income (loss) from
continuing operations attributable to TETRA stockholders
|
(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
|
|
March 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, Except
per Share Amounts)
|
Income (loss)
attributable to TETRA stockholders, excluding special items and discontinued
operations
|
$
|
5,844
|
|
$
|
721
|
|
$
|
9
|
|
$
|
5,114
|
|
$
|
0.04
|
|
Stock warrant fair
value adjustment
|
338
|
|
—
|
|
—
|
|
338
|
|
0.00
|
|
Transaction and other
expenses
|
(130)
|
|
—
|
|
—
|
|
(130)
|
|
(0.00)
|
|
Restructuring
charges
|
(259)
|
|
—
|
|
—
|
|
(259)
|
|
0.00
|
|
Severance
|
(1,062)
|
|
—
|
|
—
|
|
(1,062)
|
|
(0.01)
|
|
Bad debt
|
(1,018)
|
|
—
|
|
—
|
|
(1,018)
|
|
(0.01)
|
|
Net income (loss) from
continuing operations attributable to TETRA stockholders
|
3,713
|
|
721
|
|
9
|
|
2,983
|
|
0.02
|
|
Loss from discontinued
operations
|
|
|
|
(4,314)
|
|
(0.03)
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
|
|
|
$
|
(1,331)
|
|
$
|
(0.01)
|
|
Schedule F: Non-GAAP Reconciliation to GAAP Financials
(Unaudited)*
|
Three Months
Ended
|
|
March 31,
2021
|
|
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
|
|
|
$
|
9,010
|
|
$
|
462
|
|
$
|
9,472
|
|
$
|
(138)
|
|
$
|
1,705
|
|
$
|
—
|
|
$
|
11,039
|
|
Water & Flowback
Services Division
|
|
|
(5,480)
|
|
—
|
|
(5,480)
|
|
(522)
|
|
6,899
|
|
—
|
|
897
|
|
Eliminations and
other
|
|
|
3
|
|
—
|
|
3
|
|
—
|
|
(3)
|
|
—
|
|
—
|
|
Subtotal
|
|
|
3,532
|
|
462
|
|
3,995
|
|
(660)
|
|
8,601
|
|
—
|
|
11,936
|
|
Corporate
G&A
|
|
|
(13,020)
|
|
5,835
|
|
(7,185)
|
|
—
|
—
|
962
|
|
(6,223)
|
|
Other
|
|
|
(2,288)
|
|
323
|
|
(1,965)
|
|
5,064
|
|
169
|
|
—
|
|
3,268
|
|
TETRA excluding
Discontinued Operations
|
$
|
(11,943)
|
|
$
|
168
|
|
$
|
(11,775)
|
|
$
|
6,620
|
|
$
|
(5,155)
|
|
$
|
4,404
|
|
$
|
8,770
|
|
$
|
962
|
|
$
|
8,981
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Compensation
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
|
|
March 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
Compensation
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids &
Products Division
|
|
|
$
|
19,396
|
|
$
|
450
|
|
$
|
19,846
|
|
$
|
(154)
|
|
$
|
1,934
|
|
$
|
—
|
|
$
|
21,626
|
|
Water & Flowback
Services Division
|
|
|
(2,244)
|
|
1,607
|
|
(637)
|
|
(9)
|
|
7,425
|
|
—
|
|
6,779
|
|
Eliminations and
other
|
|
|
5
|
|
—
|
|
5
|
|
—
|
|
(4)
|
|
—
|
|
1
|
|
Subtotal
|
|
|
17,157
|
|
2,057
|
|
19,214
|
|
(163)
|
|
9,355
|
|
—
|
|
28,406
|
|
Corporate
G&A
|
|
|
(8,081)
|
|
411
|
|
(7,670)
|
|
—
|
—
|
1,145
|
|
(6,525)
|
|
Other
|
|
|
(5,363)
|
|
(338)
|
|
(5,701)
|
|
5,455
|
|
197
|
|
—
|
|
(49)
|
|
TETRA excluding
Discontinued Operations
|
$
|
2,992
|
|
$
|
721
|
|
$
|
3,713
|
|
$
|
2,130
|
|
$
|
5,843
|
|
$
|
5,292
|
|
$
|
9,552
|
|
$
|
1,145
|
|
$
|
21,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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)
|
March 31,
2021
|
|
|
|
Non-restricted
cash
|
$
|
54.2
|
|
Term Credit
Agreement
|
171.2
|
|
Net debt
|
$
|
117.0
|
|
Schedule H: Non-GAAP Reconciliation
to Adjusted Free Cash Flow From Continuing Operations
(unaudited)
|
Three Months
Ended
|
|
March 31,
2021
|
|
December
31, 2020
|
|
March 31,
2020
|
|
(In
Thousands)
|
Cash from operating
activities
|
$
|
5,819
|
|
|
$
|
12,085
|
|
|
$
|
22,176
|
|
Less: Discontinued
operations operating activities (adjusted EBITDA)
|
(416)
|
|
|
7,033
|
|
|
13,368
|
|
Cash from continued
operating activities
|
8,589
|
|
|
5,052
|
|
|
8,808
|
|
Continuing operations
capital expenditures
|
(3,220)
|
|
|
(3,830)
|
|
|
(4,482)
|
|
Proceeds from sale of
compressors to Spartan
|
—
|
|
|
14,195
|
|
|
—
|
|
Distributions from CSI
Compressco LP (1)
|
—
|
|
|
168
|
|
|
169
|
|
Cash from other
investments
|
2,354
|
|
|
—
|
|
|
—
|
|
Adjusted Free Cash Flow
From Continuing Operations
|
$
|
5,369
|
|
|
$
|
15,585
|
|
|
$
|
4,495
|
|
(1) 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
EBITDA Margins and Adjusted Income (Loss) before tax
margins (Unaudited)
|
|
Three Months
Ended
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
March 31,
2020
|
|
|
(In
Thousands)
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Revenue
|
|
$
|
77,324
|
|
|
$
|
75,458
|
|
|
$
|
132,704
|
|
Income (loss) before
tax
|
|
(11,775)
|
|
|
(7,216)
|
|
|
3,713
|
|
Adjusted income
(loss) before tax (Schedule F)
|
|
(5,155)
|
|
|
(3,775)
|
|
|
5,843
|
|
Adjusted EBITDA
(Schedule F)
|
|
8,981
|
|
|
11,001
|
|
|
21,832
|
|
Income (loss) before
tax as a % of revenue
|
|
(15.2)
|
%
|
|
(9.6)
|
%
|
|
2.8
|
%
|
Adjusted Income
(Loss) before tax as a % of revenue
|
|
(6.7)
|
%
|
|
(5.0)
|
%
|
|
4.4
|
%
|
Adjusted EBITDA as a
% of revenue
|
|
11.6
|
%
|
|
14.6
|
%
|
|
16.5
|
%
|
|
|
|
|
|
|
|
Completion Fluids
& Products
|
|
|
|
|
|
|
Revenue
|
|
$
|
46,522
|
|
|
$
|
44,128
|
|
|
$
|
75,237
|
|
Income (loss) before
tax
|
|
9,010
|
|
|
10,979
|
|
|
19,396
|
|
Adjusted income
(loss) before tax (Schedule F)
|
|
9,472
|
|
|
12,859
|
|
|
19,846
|
|
Adjusted EBITDA
(Schedule F)
|
|
11,039
|
|
|
14,404
|
|
|
21,626
|
|
Income (loss) before
tax as a % of revenue
|
|
19.4
|
%
|
|
24.9
|
%
|
|
25.8
|
%
|
Adjusted Income
(Loss) before tax as a % of revenue
|
|
20.4
|
%
|
|
29.1
|
%
|
|
26.4
|
%
|
Adjusted EBITDA as a
% of revenue
|
|
23.7
|
%
|
|
32.6
|
%
|
|
28.7
|
%
|
|
|
|
|
|
|
|
Water &
Flowback Services
|
|
|
|
|
|
|
Revenue
|
|
$
|
30,802
|
|
|
$
|
31,330
|
|
|
$
|
57,467
|
|
Income (loss) before
tax
|
|
(5,480)
|
|
|
(3,442)
|
|
|
(2,244)
|
|
Adjusted income
(loss) before tax (Schedule F)
|
|
(5,480)
|
|
|
(2,567)
|
|
|
(637)
|
|
Adjusted EBITDA
(Schedule F)
|
|
897
|
|
|
3,684
|
|
|
6,779
|
|
Income (loss) before
tax as a % of revenue
|
|
(17.8)
|
%
|
|
(11.0)
|
%
|
|
(3.9)
|
%
|
Adjusted Income
(Loss) before tax as a % of revenue
|
|
(17.8)
|
%
|
|
(8.2)
|
%
|
|
(1.1)
|
%
|
Adjusted EBITDA as a
% of revenue
|
|
2.9
|
%
|
|
11.8
|
%
|
|
11.8
|
%
|
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SOURCE TETRA Technologies, Inc.