THE WOODLANDS, Texas,
Aug. 4, 2020 /PRNewswire/ -- TETRA Technologies, Inc.
("TETRA" or the "Company") (NYSE:TTI) today announced second
quarter 2020 results.
Second quarter 2020 revenue of $192
million, decreased 14% from the first quarter of 2020
compared to a 64% decline in US onshore rig activity and a 26%
decline in international rig activity. Net loss before discontinued
operations for the second quarter was $34.3
million, inclusive of $18.1
million of non-recurring charges and expenses. This compares
to a net loss before discontinued operations of $10.2 million in the first quarter of 2020,
inclusive of $8.1 million of
non-recurring charges and expenses. Net loss per share attributable
to TETRA stockholders in the second quarter was $0.15. 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 $35.3 million and compares to
$47.8 million in the first quarter.
Consolidated cash provided by operating activities in the second
quarter was $38 million, compared to
$22 million in the first quarter of
2020. TETRA only cash from operating activities was
$33 million, while TETRA only
adjusted free cash flow from continuing operations was $31 million, compared to $4.7 million in the first quarter of 2020. The
improvements in consolidated cash provided by operating activities
and TETRA only adjusted free cash flow reflects monetization of
working capital.
Financial Highlights
- Completion Fluids & Products income before taxes was
$16.0 million, or 22.4% of revenue,
while Adjusted EBITDA was $18.3
million, or 25.7% of revenue.
- Water & Flowback Services loss before taxes was
$8.4 million, while Adjusted EBITDA
remained positive at $400,000 despite
a 57% sequential decline in revenue and a 64% decline in the US
onshore rig count.
- TETRA only adjusted free cash flow from continuing operations
was $31.2 million in the second
quarter, an improvement of $26.8
million from the first quarter of 2020 reflecting
improvements in working capital.
- Consolidated cash from operating activities was $60 million in the first half of the year while
TETRA only adjusted free cash flow from continuing operations
through the first half of 2020 was $36
million, a year-over-year improvement of $68 million compared to the first half of
2019.
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-K for reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP
measures.
Brady Murphy, TETRA's Chief
Executive Officer, stated, "Our second quarter results reflect
exceptional execution by our management team and employees.
By working safely under extraordinary conditions due to the
COVID-19 pandemic and while continuing to service our customer's
requirements, we were also able to deliver strong financial results
given the historical decline in drilling and completion activity
during the quarter. On a consolidated basis we were able to
improve Adjusted EBITDA margins compared to the second quarter of
last year while also generating stronger free cash flows. Our
Completion Fluids and Products segment and Compression Segment
maintained strong Adjusted EBITDA margins relative to the first
quarter while both improved year on year. Water Management
and Flowback Services maintained slightly positive Adjusted
EBITDA. Despite the rapid decline in activity, the financial
stress that our customers are encountering, and restructuring costs
that we incurred, we generated $38
million of consolidated cash from operations and
$31 million of TETRA only adjusted
free cash flow from operating activities, both very significant
improvements over the first quarter of this year and second quarter
of last year.
"Completion Fluids & Products segment second quarter income
before tax margin was 22.4% while Adjusted EBITDA margin was
25.7%. This is the fifth consecutive quarter that Adjusted
EBITDA margins for this segment have exceeded our internal
management target of 20% despite very difficult market
conditions. We continue to see the benefit from our
market diversification as approximately half of the second quarter
revenue came from industrial chemicals. Our European Chemicals
business ended the quarter with its highest Adjusted EBITDA since
the second quarter of 2015. Revenue for this segment declined
by only 5% in contrast to the dramatic decline in overall operator
spend and activity during the quarter, reflecting the resiliency of
our revenue stream. The second quarter also benefited from
strong Gulf of Mexico completion
fluids activity, which was up sequentially and from the same
quarter of last year.
"Water & Flowback Services segment second quarter revenue of
$24.7 million decreased 57%
sequentially compared to an estimated 80% reduction in active frac
crews. We were able to maintain a slightly positive Adjusted EBITDA
through exceptional cost management, market share gains and
customer adoption of our latest technology. In the second
quarter, our revenue per active frac crew has more than doubled in
the two years since we first deployed our Integrated Water
Management strategy. Our BlueLinxTM automation
solution, which allows us to remotely and efficiently deliver
services to our customers with less field staff, is now deployed on
all of our Integrated Water management projects. We also
maintained full utilization of our SandStormTM sand
separation technology through most of the quarter.
"Second quarter 2020 Compression segment performance exceeded
internal expectations with a loss before taxes of $23 million and Adjusted EBITDA of $26.3 million, up 1% from the first
quarter. Compression Services margins improved sequentially
by 300 basis points to 54.9% - the highest in CSI Compressco's
history driven by aggressive cost reductions. Utilization
declined from 86.5% at the end of the first quarter of 2020 to
82.1% at the end of the second quarter. Approximately 15% of
our US domestic fleet was on standby during the quarter as
customers shut in production given the low oil prices. The majority
of the shut-ins were from two of our largest customers, both
supermajors, that have the balance sheet to shut in production in
anticipation of higher oil prices. Starting August 1st, we began returning to service most of
units on standby with one of those two customers. CSI
Compressco announced yesterday that the Midland fabrication real
estate and buildings had been sold for gross proceeds of
$17 million in early July.
Additionally, CSI Compressco announced that it expects to receive
$9 million in cash proceeds in the
third quarter from the sale of idle compressor units. This
$26 million of gross proceeds will
further strengthen CSI Compressco's balance sheet.
"Going in to this historic downturn, we knew that by executing
the strategies we have worked on for the past two years and by
taking quick and decisive cost reduction actions beginning at the
executive management level and then throughout the organization,
that we would come out the other side of this pandemic very well
positioned. I'm very pleased to say that we are on track to
achieve that objective. Strong execution and the diversity of
our end markets, including industrial chemicals, offshore,
international and a technology differentiated North America water and flowback business, has
allowed us to keep Adjusted EBITDA positive and to generate free
cash flow in a very difficult environment.
A summary of key financial metrics for the second quarter are as
follows:
Second Quarter
2020 Results
|
|
Three Months
Ended
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
|
(In Thousands, Except
per Share Amounts)
|
Revenue
|
$
|
192,441
|
|
|
$
|
222,942
|
|
|
$
|
288,796
|
|
Loss before
discontinued operations
|
(34,330)
|
|
|
(10,231)
|
|
|
(8,201)
|
|
Adjusted EBITDA
before discontinued operations
|
35,259
|
|
|
47,809
|
|
|
50,084
|
|
GAAP EPS before
discontinued operations attributable to TETRA
stockholders
|
(0.15)
|
|
|
(0.01)
|
|
|
(0.06)
|
|
Adjusted EPS
attributable to TETRA stockholders
|
(0.09)
|
|
|
0.02
|
|
|
(0.02)
|
|
GAAP net cash
provided by operating activities
|
38,211
|
|
|
22,176
|
|
|
30,965
|
|
TETRA only adjusted
free cash flow from continuing operations
|
$
|
31,187
|
|
|
$
|
4,651
|
|
|
$
|
3,117
|
|
Operating Segments
Completion Fluids & Products Division
Completion
Fluids & Products revenue was $71.3
million in the second quarter of 2020, a decrease of 5% from
the first quarter of 2020, primarily driven by decreased
international activity. Completion Fluids & Products
income before taxes was $16.0 million
in the second quarter (22.4% of revenue). Completion Fluids &
Products adjusted income before taxes was $16.5 million (23.1% of revenue). Adjusted
EBITDA of $18.3 million (25.7% of
revenue - a 300 basis point sequential decline) decreased by
$3.3 million sequentially.
Excluding the CS Neptune© sale in the second quarter of
2019, our Completion Fluids & Products business Adjusted EBITDA
margins in the second quarter of 2020 outperformed the second
quarter of 2019 by over 500 basis points.
Water & Flowback Services Division
Water &
Flowback Services second quarter 2020 revenue of $24.7 million decreased 57% from the first
quarter of 2020, driven by the drastic reduction in U.S. land
activity. Water & Flowback Services loss before tax was
$8.4 million, primarily due to
disruptions in several basins as customers have drastically reduced
spending. Adjusted EBITDA decreased $6.4 million sequentially to $400,000. The Division's Adjusted EBITDA remained
positive despite the significant reduction in revenue. Our
investments and focus on technology and automation and our move
towards integrated projects strategies is helping us increase
market share and maintain activity with our customers in a rapidly
changing market.
Compression Division
Second quarter Compression
revenue increased 7% from the first quarter of 2020 driven by
higher equipment sales. Compression Services gross margins
were 54.9%, a 300 basis points increase from the first quarter of
2020. Overall fleet utilization was 82.1%, down from 86.5% at
the end of the first quarter. As of June 30, 2020, total
active operating horsepower was 967,505, a sequential decrease of
65,751 horsepower. Net loss before taxes was $23.0 million, $10.2
million worse than the first quarter. The second
quarter loss included $15.7 million
of non-recurring or unusual items, primarily related to impairment
of idle compression assets and related inventory, costs related to
the closure of our Midland fabrication facility, and expenses
related to the unsecured bonds exchange that was completed in the
second quarter. Second quarter 2020 Adjusted EBITDA of
$26.3 million increased 1% from the
first quarter of 2020 primarily due to strong aftermarket services
margins.
Free Cash Flow and Balance Sheet
During the second
quarter of 2020, consolidated cash provided by operations was
$38 million, a $16 million improvement sequentially. TETRA
only adjusted free cash flow from continuing operations was
$31 million, a $27 million improvement over the first quarter of
2020 and a $28 million improvement
over the second quarter of 2019. Cash generation was due to
improvements in working capital. TETRA only liquidity at the
end of second quarter 2020 improved $29 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 $858
million while consolidated net debt was $787 million, with TETRA only net debt of
$156 million. At the end of the
second quarter TETRA Only non-restricted cash was $50 million. Schedules D and H distinguish
consolidated cash and debt for TETRA and for TETRA 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 second quarter, as detailed on Schedule
F, include the following:
- $9.0 million non-cash impairment
expense for compression fixed assets and inventory
- $4.8 million of debt financing
fees on the recently completed CSI Compressco bond exchange
- $3.4 million of restructuring
expenses and severance
- $0.9 million of other
expenses
Historically the Company has used a normalized 21% effective tax
rate to reflect normalized EPS and normalized net income on
Schedule F. Given TETRA's net operating losses of over $350 million, management does not believe TETRA
will incur U.S. income taxes in the near future and has
discontinued the use of that adjustment to report normalized
earnings.
Conference Call
TETRA will host a conference call to discuss these results today,
August 4, 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 10138625, 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
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
|
|
Six Months
Ended
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
(In Thousands, Except
per Share Amounts)
|
Revenues
|
$
|
192,441
|
|
|
$
|
222,942
|
|
|
$
|
288,796
|
|
|
$
|
415,383
|
|
|
$
|
532,524
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales,
services, and rentals
|
133,892
|
|
|
148,694
|
|
|
206,302
|
|
|
282,586
|
|
|
383,046
|
|
Depreciation,
amortization, and accretion
|
29,842
|
|
|
29,460
|
|
|
31,817
|
|
|
59,302
|
|
|
62,445
|
|
Impairments and other
charges
|
8,977
|
|
|
5,371
|
|
|
2,311
|
|
|
14,348
|
|
|
2,457
|
|
Insurance
recoveries
|
(591)
|
|
|
—
|
|
|
—
|
|
|
(591)
|
|
|
—
|
|
Total cost of
revenues
|
172,120
|
|
|
183,525
|
|
|
240,430
|
|
|
355,645
|
|
|
447,948
|
|
Gross profit
|
20,321
|
|
|
39,417
|
|
|
48,366
|
|
|
59,738
|
|
|
84,576
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
31,214
|
|
|
30,537
|
|
|
36,295
|
|
|
61,751
|
|
|
70,572
|
|
Interest expense,
net
|
17,586
|
|
|
17,856
|
|
|
18,529
|
|
|
35,442
|
|
|
36,908
|
|
Warrants fair value
adjustment (income) expense
|
11
|
|
|
(338)
|
|
|
(1,520)
|
|
|
(327)
|
|
|
(1,113)
|
|
CCLP Series A
Preferred Units fair value adjustment (income) expense
|
—
|
|
|
—
|
|
|
146
|
|
|
—
|
|
|
1,309
|
|
Other (income)
expense, net
|
3,839
|
|
|
439
|
|
|
627
|
|
|
4,278
|
|
|
(324)
|
|
Loss before taxes and
discontinued operations
|
(32,329)
|
|
|
(9,077)
|
|
|
(5,711)
|
|
|
(41,406)
|
|
|
(22,776)
|
|
Provision for income
taxes
|
2,001
|
|
|
1,154
|
|
|
2,490
|
|
|
3,155
|
|
|
4,099
|
|
Loss before
discontinued operations
|
(34,330)
|
|
|
(10,231)
|
|
|
(8,201)
|
|
|
(44,561)
|
|
|
(26,875)
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of taxes
|
163
|
|
|
(145)
|
|
|
(345)
|
|
|
18
|
|
|
(771)
|
|
Net loss
|
(34,167)
|
|
|
(10,376)
|
|
|
(8,546)
|
|
|
(44,543)
|
|
|
(27,646)
|
|
Less: loss attributable
to noncontrolling interest
|
15,712
|
|
|
8,825
|
|
|
1,633
|
|
|
24,537
|
|
|
9,895
|
|
Net loss attributable
to TETRA stockholders
|
$
|
(18,455)
|
|
|
$
|
(1,551)
|
|
|
$
|
(6,913)
|
|
|
$
|
(20,006)
|
|
|
$
|
(17,751)
|
|
|
|
|
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
|
|
|
|
|
Loss before
discontinued operations attributable to TETRA
stockholders
|
$
|
(0.15)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.13)
|
|
Income (loss) from
discontinued operations attributable to TETRA
stockholders
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
(0.01)
|
|
Net loss attributable
to TETRA stockholders
|
$
|
(0.15)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.14)
|
|
Weighted average shares
outstanding
|
125,886
|
|
125,587
|
|
|
125,612
|
|
125,736
|
|
|
125,646
|
|
|
|
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
|
|
|
|
|
Loss before
discontinued operations attributable to TETRA
stockholders
|
$
|
(0.15)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.13)
|
|
Income (loss) from
discontinued operations attributable to TETRA
stockholders
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
(0.01)
|
|
Net loss attributable
to TETRA stockholders
|
$
|
(0.15)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.14)
|
|
Weighted average shares
outstanding
|
125,886
|
|
|
125,587
|
|
|
125,612
|
|
125,736
|
|
|
125,646
|
|
Schedule B:
Financial Results By Segment (Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
(In
Thousands)
|
Revenues by
segment:
|
|
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
71,346
|
|
|
$
|
75,237
|
|
|
$
|
79,767
|
|
|
$
|
146,583
|
|
|
$
|
141,348
|
|
Water & Flowback
Services Division
|
24,723
|
|
|
57,467
|
|
|
73,124
|
|
|
82,190
|
|
|
151,802
|
|
Compression
Division
|
96,372
|
|
|
90,238
|
|
|
135,905
|
|
|
186,610
|
|
|
239,374
|
|
Eliminations and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
revenues
|
$
|
192,441
|
|
|
$
|
222,942
|
|
|
$
|
288,796
|
|
|
$
|
415,383
|
|
|
$
|
532,524
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss) by segment:
|
|
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
20,819
|
|
|
$
|
25,964
|
|
|
$
|
19,809
|
|
|
$
|
46,783
|
|
|
$
|
30,472
|
|
Water & Flowback
Services Division
|
(4,836)
|
|
|
3,267
|
|
|
7,490
|
|
|
(1,569)
|
|
|
16,341
|
|
Compression
Division
|
4,511
|
|
|
10,380
|
|
|
21,235
|
|
|
14,890
|
|
|
38,094
|
|
Corporate overhead and
eliminations
|
(173)
|
|
|
(194)
|
|
|
(168)
|
|
|
(366)
|
|
|
(331)
|
|
Total gross
profit
|
$
|
20,321
|
|
|
$
|
39,417
|
|
|
$
|
48,366
|
|
|
$
|
59,738
|
|
|
$
|
84,576
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before taxes by segment:
|
|
|
|
|
|
|
|
|
|
Completion Fluids &
Products Division
|
$
|
16,002
|
|
|
$
|
19,396
|
|
|
$
|
14,614
|
|
|
$
|
35,398
|
|
|
$
|
20,800
|
|
Water & Flowback
Services Division
|
(8,418)
|
|
|
(2,244)
|
|
|
2,460
|
|
|
(10,662)
|
|
|
4,691
|
|
Compression
Division
|
(23,006)
|
|
|
(12,790)
|
|
|
(3,483)
|
|
|
(35,796)
|
|
|
(11,284)
|
|
Corporate overhead and
eliminations
|
(16,907)
|
|
|
(13,439)
|
|
|
(19,302)
|
|
|
(30,346)
|
|
|
(36,983)
|
|
Total income (loss)
before taxes
|
$
|
(32,329)
|
|
|
$
|
(9,077)
|
|
|
$
|
(5,711)
|
|
|
$
|
(41,406)
|
|
|
$
|
(22,776)
|
|
|
|
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 (June 30, 2020 Unaudited)
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
(In
Thousands)
|
Balance
Sheet:
|
|
|
|
Cash (excluding
restricted cash)
|
$
|
56,722
|
|
|
$
|
17,704
|
|
Accounts receivable,
net
|
117,106
|
|
|
175,918
|
|
Inventories
|
115,506
|
|
|
136,510
|
|
Other current
assets
|
22,453
|
|
|
21,222
|
|
PP&E,
net
|
713,584
|
|
|
758,637
|
|
Operating lease
right-of-use assets
|
75,524
|
|
|
68,131
|
|
Other
assets
|
90,499
|
|
|
93,800
|
|
Total
assets
|
$
|
1,191,394
|
|
|
$
|
1,271,922
|
|
|
|
|
|
Liabilities of
discontinued operations
|
$
|
1,873
|
|
|
$
|
2,098
|
|
Other current
liabilities
|
145,454
|
|
|
186,625
|
|
Long-term debt
(1)
|
843,292
|
|
|
842,871
|
|
Long-term portion of
asset retirement obligations
|
12,862
|
|
|
12,762
|
|
Warrants
liability
|
123
|
|
|
449
|
|
Operating lease
liabilities
|
60,693
|
|
|
53,919
|
|
Other long-term
liabilities
|
11,611
|
|
|
10,372
|
|
Equity
|
115,486
|
|
|
162,826
|
|
Total liabilities and
equity
|
$
|
1,191,394
|
|
|
$
|
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 exclude deferred financing
costs.
|
June 30,
2020
|
|
December 31,
2019
|
|
June 30,
2019
|
|
(In
Thousands)
|
|
|
TETRA
|
|
|
|
|
|
Asset-Based Credit
Agreement
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
20,000
|
|
Term Credit
Agreement
|
220,500
|
|
|
220,500
|
|
|
220,500
|
|
TETRA total
debt
|
220,500
|
|
|
221,500
|
|
|
240,500
|
|
Less current
portion
|
—
|
|
|
—
|
|
|
—
|
|
TETRA total
long-term debt
|
$
|
220,500
|
|
|
$
|
221,500
|
|
|
$
|
240,500
|
|
|
|
|
|
|
|
CSI Compressco
LP
|
|
|
|
|
|
CCLP Credit
Agreement
|
1,477
|
|
|
3,500
|
|
|
—
|
|
7.25% Senior
Notes
|
80,722
|
|
|
295,930
|
|
|
295,930
|
|
7.50% Senior
Notes
|
400,000
|
|
|
350,000
|
|
|
350,000
|
|
Second Lien
Notes
|
155,529
|
|
|
—
|
|
|
—
|
|
Total debt
|
637,728
|
|
|
649,430
|
|
|
645,930
|
|
Less current
portion
|
—
|
|
|
—
|
|
|
—
|
|
CCLP total
long-term debt
|
$
|
637,728
|
|
|
$
|
649,430
|
|
|
$
|
645,930
|
|
Consolidated total
long-term debt
|
$
|
858,228
|
|
|
$
|
870,930
|
|
|
$
|
886,430
|
|
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
|
|
June 30,
2020
|
|
Income (loss)
before taxes
and
discontinued
operations
|
Provision
(Benefit)
for Tax
|
Non-cont.
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
|
T(8,922)
|
|
—
|
|
(5,977)
|
|
(2,945)
|
|
(0.02)
|
|
Restructuring
charges
|
(486)
|
|
—
|
|
(179)
|
|
(307)
|
|
0.00
|
|
Debt
Refinancing
|
(4,754)
|
|
—
|
|
(3,184)
|
|
(1,570)
|
|
(0.01)
|
|
Severance
|
(3,003)
|
|
—
|
|
(726)
|
|
(2,277)
|
|
(0.02)
|
|
Net income (loss)
before discontinued operations
|
(32,329)
|
|
2,001
|
|
(15,712)
|
|
(18,618)
|
|
(0.15)
|
|
Loss from discontinued
operations
|
|
|
|
163
|
|
0.00
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
|
|
|
$
|
(18,455)
|
|
$
|
(0.15)
|
|
|
Three Months
Ended
|
|
March 31,
2020
|
|
Income (loss)
before taxes
and
discontinued
operations
|
Provision
(Benefit)
for
Tax
|
Non-cont.
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
|
$
|
(976)
|
|
$
|
1,154
|
|
$
|
(4,892)
|
|
$
|
2,762
|
|
$
|
0.02
|
|
Stock Warrant fair
value adjustment
|
338
|
|
—
|
|
—
|
|
338
|
|
0.00
|
|
Transaction and other
expenses
|
(457)
|
|
—
|
|
(216)
|
|
(241)
|
|
0.00
|
|
Impairments and other
charges
|
(5,371)
|
|
—
|
|
(3,538)
|
|
(1,833)
|
|
(0.01)
|
|
Restructuring
charges
|
(259)
|
|
—
|
|
—
|
|
(259)
|
|
0.00
|
|
Severance
|
(1,334)
|
|
—
|
|
(179)
|
|
(1,155)
|
|
(0.01)
|
|
Bad debt
|
(1,018)
|
|
—
|
|
—
|
|
(1,018)
|
|
(0.01)
|
|
Net income (loss)
before discontinued operations
|
(9,077)
|
|
1,154
|
|
(8,825)
|
|
(1,406)
|
|
(0.01)
|
|
Loss from discontinued
operations
|
|
|
|
(145)
|
|
0.00
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
|
|
|
$
|
(1,551)
|
|
$
|
(0.01)
|
|
|
Three Months
Ended
|
|
June 30,
2019
|
|
Income (loss)
before taxes
and
discontinued operations
|
Provision
(Benefit)
for Tax
|
Non-cont.
Interest
|
Net Income
Attributable
to TETRA Stockholders
|
Diluted
EPS
|
|
(In Thousands, Except
per Share Amounts)
|
Income (loss)
attributable to TETRA stockholders, excluding unusual
charges
|
$
|
(2,545)
|
|
$
|
(530)
|
|
$
|
(11)
|
|
$
|
(2,004)
|
|
$
|
(0.02)
|
|
Stock warrant fair
value adjustment
|
1,520
|
|
319
|
|
—
|
|
1,201
|
|
0.01
|
|
Convertible Series A
preferred fair value adjustments
|
(146)
|
|
(35)
|
|
(74)
|
|
(37)
|
|
0.00
|
|
5% Cash Redemption on
CCLP Series A Preferred
|
(546)
|
|
(115)
|
|
(278)
|
|
(153)
|
|
0.00
|
|
Earnout
Adjustment
|
400
|
|
84
|
|
—
|
|
316
|
|
0.00
|
|
Lee Plant Facility
Expenses
|
289
|
|
61
|
|
—
|
|
228
|
|
0.00
|
|
CEO
Retirement
|
(1,843)
|
|
(387)
|
|
—
|
|
(1,456)
|
|
(0.01)
|
|
Transaction
Expense
|
(376)
|
|
(79)
|
|
(168)
|
|
(129)
|
|
0.00
|
|
Inventory
Adjustment
|
(153)
|
|
(32)
|
|
(68)
|
|
(53)
|
|
0.00
|
|
Impairments and other
charges
|
(2,311)
|
|
(485)
|
|
(1,034)
|
|
(792)
|
|
(0.01)
|
|
Effect of deferred tax
valuation allowance and other related tax adjustments
|
—
|
|
3,689
|
|
—
|
|
(3,689)
|
|
(0.03)
|
|
Net income (loss)
before discontinued operations
|
(5,711)
|
|
2,490
|
|
(1,633)
|
|
(6,568)
|
|
(0.06)
|
|
Loss from discontinued
operations
|
|
|
|
(345)
|
|
0.00
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
|
|
|
$
(6,913)
|
|
$
|
(0.06)
|
|
Schedule G:
Non-GAAP Reconciliation to GAAP Financials
(Unaudited)*
|
|
|
|
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
|
Interest
Expense
|
Adjusted
Depreciation
&
Amortization
|
Equity
Comp.
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids &
Products Division
|
|
|
$
|
16,002
|
|
$
|
510
|
|
$
|
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
|
|
|
(15,420)
|
|
17,449
|
|
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
|
$
|
(34,330)
|
|
$
|
2,001
|
|
$
|
(32,329)
|
|
$
|
18,070
|
|
$
|
(14,259)
|
|
$
|
17,586
|
|
$
|
29,842
|
|
$
|
2,090
|
|
$
|
35,259
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Comp.
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
|
|
Compression
Division
|
|
|
(12,790)
|
|
5,971
|
|
(6,819)
|
|
12,564
|
|
19,908
|
|
324
|
|
25,977
|
|
Eliminations and
other
|
|
|
5
|
|
—
|
|
5
|
|
—
|
|
(4)
|
|
—
|
|
1
|
|
Subtotal
|
|
|
4,367
|
|
8,028
|
|
12,395
|
|
12,401
|
|
29,263
|
|
324
|
|
54,383
|
|
Corporate and
other
|
|
|
(13,444)
|
|
73
|
|
(13,371)
|
|
5,455
|
|
197
|
|
1,145
|
|
(6,574)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(10,231)
|
|
$
|
1,154
|
|
$
|
(9,077)
|
|
$
|
8,101
|
|
$
|
(976)
|
|
$
|
17,856
|
|
$
|
29,460
|
|
$
|
1,469
|
|
$
|
47,809
|
|
|
|
|
Three Months
Ended
|
|
June 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
Comp.
Expense
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Completion Fluids &
Products Division
|
|
|
$
|
14,614
|
|
$
|
(289)
|
|
$
|
14,325
|
|
$
|
(157)
|
|
$
|
3,723
|
|
$
|
—
|
|
$
|
17,891
|
|
Water & Flowback
Services Division
|
|
|
2,460
|
|
(400)
|
|
2,060
|
|
(8)
|
|
8,871
|
|
—
|
|
10,923
|
|
Compression
Division
|
|
|
(3,483)
|
|
3,607
|
|
124
|
|
12,998
|
|
19,054
|
|
590
|
|
32,766
|
|
Eliminations and
other
|
|
|
1
|
|
—
|
|
1
|
|
—
|
|
(3)
|
|
—
|
|
(2)
|
|
Subtotal
|
|
|
13,592
|
|
2,918
|
|
16,510
|
|
12,833
|
|
31,645
|
|
590
|
|
61,578
|
|
Corporate and
other
|
|
|
(19,303)
|
|
268
|
|
(19,035)
|
|
5,696
|
|
172
|
|
1,673
|
|
(11,494)
|
|
TETRA excluding
Discontinued Operations
|
$
|
(8,201)
|
|
$
|
2,490
|
|
$
|
(5,711)
|
|
$
|
3,186
|
|
$
|
(2,525)
|
|
$
|
18,529
|
|
$
|
31,817
|
|
$
|
2,263
|
|
$
|
50,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
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
June 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.
|
June 30,
2020
|
|
TETRA
|
|
CCLP
|
|
Consolidated
|
|
(In
Millions)
|
Non-restricted
cash
|
$
|
50.0
|
|
|
$
|
6.8
|
|
|
$
|
56.7
|
|
|
|
|
|
|
|
Carrying value of
long-term debt:
|
|
|
|
|
|
Asset-Based Credit
Agreement
|
—
|
|
|
0.7
|
|
|
0.7
|
|
Term Credit
Agreement
|
205.7
|
|
|
—
|
|
|
205.7
|
|
Senior Notes
outstanding
|
—
|
|
|
636.8
|
|
|
636.8
|
|
Net debt
|
$
|
155.7
|
|
|
$
|
630.7
|
|
|
$
|
786.5
|
|
Schedule I:
Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash Flow
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
(In
Thousands)
|
Consolidated
|
|
|
|
|
|
|
|
|
|
Net cash provided
(used) by operating activities
|
$
|
38,211
|
|
|
$
|
22,176
|
|
|
$
|
30,965
|
|
|
$
|
60,387
|
|
|
$
|
38,377
|
|
Capital expenditures,
net of sales proceeds
|
(3,332)
|
|
|
(10,965)
|
|
|
(27,345)
|
|
|
(14,297)
|
|
|
(59,390)
|
|
Consolidated adjusted
free cash flow
|
$
|
34,879
|
|
|
$
|
11,211
|
|
|
$
|
3,620
|
|
|
46,090
|
|
|
(21,013)
|
|
|
|
|
|
|
|
|
|
|
|
CSI Compressco
LP
|
|
|
|
|
|
|
|
|
|
Net cash provided
(used) by operating activities
|
$
|
4,823
|
|
|
$
|
13,357
|
|
|
$
|
8,710
|
|
|
18,180
|
|
|
40,342
|
|
Capital expenditures,
net of sales proceeds
|
(1,125)
|
|
|
(6,483)
|
|
|
(16,434)
|
|
|
(7,608)
|
|
|
(39,586)
|
|
CSI Compressco free
cash flow
|
$
|
3,698
|
|
|
$
|
6,874
|
|
|
$
|
(7,724)
|
|
|
10,572
|
|
|
756
|
|
|
|
|
|
|
|
|
|
|
|
TETRA
Only
|
|
|
|
|
|
|
|
|
|
Cash from operating
activities
|
$
|
33,388
|
|
|
$
|
8,819
|
|
|
$
|
22,255
|
|
|
42,207
|
|
|
(1,965)
|
|
Investment in CCLP
Compressors
|
—
|
|
|
—
|
|
|
(8,740)
|
|
|
—
|
|
|
(11,142)
|
|
Capital expenditures,
net of sales proceeds
|
(2,207)
|
|
|
(4,482)
|
|
|
(10,911)
|
|
|
(6,689)
|
|
|
(19,804)
|
|
Free cash
flow
|
31,181
|
|
|
4,337
|
|
|
2,604
|
|
|
35,518
|
|
|
(32,911)
|
|
Distributions from CSI
Compressco LP
|
169
|
|
|
169
|
|
|
168
|
|
|
338
|
|
|
337
|
|
TETRA Only
Adjusted Free Cash Flow
|
$
|
31,350
|
|
|
$
|
4,506
|
|
|
$
|
2,772
|
|
|
35,856
|
|
|
(32,574)
|
|
Schedule J: Non-GAAP Reconciliation
to TETRA Only Adjusted Free Cash Flow From Continuing
Operations (unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
(In
Thousands)
|
|
|
|
|
TETRA
Only
|
|
|
|
|
|
|
|
|
|
Cash from operating
activities
|
$
|
33,388
|
|
|
$
|
8,819
|
|
|
$
|
22,255
|
|
|
$
|
42,207
|
|
|
$
|
(1,965)
|
|
Less: Discontinued
operations operating activities (adjusted EBITDA)
|
163
|
|
|
(145)
|
|
|
(345)
|
|
|
18
|
|
|
(771)
|
|
Cash from continued
operating activities
|
33,225
|
|
|
8,964
|
|
|
22,600
|
|
|
42,189
|
|
|
(1,194)
|
|
Less: Continuing
operations capital expenditures
|
(2,207)
|
|
|
(4,482)
|
|
|
(10,911)
|
|
|
(6,689)
|
|
|
(19,804)
|
|
Less: Investment
in CCLP Compressors
|
—
|
|
|
—
|
|
|
(8,740)
|
|
|
—
|
|
|
(11,142)
|
|
Distributions from CSI
Compressco LP
|
169
|
|
|
169
|
|
|
168
|
|
|
338
|
|
|
337
|
|
TETRA Only Adjusted
Free Cash Flow From Continuing Operations
|
$
|
31,187
|
|
|
$
|
4,651
|
|
|
$
|
3,117
|
|
|
$
|
35,838
|
|
|
$
|
(31,803)
|
|
Schedule K:
Non-GAAP Reconciliation to TETRA Adjusted
EBITDA Margins and Adjusted Income (Loss) before tax
margins (Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
Jun 30,
2020
|
|
Mar 31,
2020
|
|
Jun 30,
2019
|
|
|
(In
Thousands)
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Revenue
|
|
$
|
192,441
|
|
|
$
|
222,942
|
|
|
$
|
288,796
|
|
Income (loss) before
tax
|
|
(32,329)
|
|
|
(9,077)
|
|
|
(5,711)
|
|
Adjusted income
(loss) before tax (Schedule G)
|
|
(14,259)
|
|
|
(976)
|
|
|
(2,525)
|
|
Adjusted EBITDA
(Schedule G)
|
|
35,259
|
|
|
47,809
|
|
|
50,084
|
|
Income (Loss) Before
Tax Margin
|
|
(16.8)
|
%
|
|
(4.1)
|
%
|
|
(2.0)
|
%
|
Adjusted Income
(Loss) Before Tax Margin
|
|
(7.4)
|
%
|
|
(0.4)
|
%
|
|
(0.9)
|
%
|
Adjusted EBITDA
Margin
|
|
18.3
|
%
|
|
21.4
|
%
|
|
17.3
|
%
|
|
|
|
|
|
|
|
Completion Fluids
& Products
|
|
|
|
|
|
|
Revenue
|
|
$
|
71,346
|
|
|
$
|
75,237
|
|
|
$
|
79,767
|
|
Income (loss) before
tax
|
|
16,002
|
|
|
19,396
|
|
|
14,614
|
|
Adjusted income
(loss) before tax (Schedule G)
|
|
16,512
|
|
|
19,846
|
|
|
14,325
|
|
Adjusted EBITDA
(Schedule G)
|
|
18,303
|
|
|
21,626
|
|
|
17,891
|
|
Income (Loss) Before
Tax Margin
|
|
22.4
|
%
|
|
25.8
|
%
|
|
18.3
|
%
|
Adjusted Income
(Loss) Before Tax Margin
|
|
23.1
|
%
|
|
26.4
|
%
|
|
18.0
|
%
|
Adjusted EBITDA
Margin
|
|
25.7
|
%
|
|
28.7
|
%
|
|
22.4
|
%
|
|
|
|
|
|
|
|
Water &
Flowback Services
|
|
|
|
|
|
|
Revenue
|
|
$
|
24,723
|
|
|
$
|
57,467
|
|
|
$
|
73,124
|
|
Income (loss) before
tax
|
|
(8,418)
|
|
|
(2,244)
|
|
|
2,460
|
|
Adjusted income
(loss) before tax (Schedule G)
|
|
(7,215)
|
|
|
(637)
|
|
|
2,060
|
|
Adjusted EBITDA
(Schedule G)
|
|
400
|
|
|
6,779
|
|
|
10,923
|
|
Income (Loss) Before
Tax Margin
|
|
(34.0)
|
%
|
|
(3.9)
|
%
|
|
3.4
|
%
|
Adjusted Income
(Loss) Before Tax Margin
|
|
(29.2)
|
%
|
|
(1.1)
|
%
|
|
2.8
|
%
|
Adjusted EBITDA
Margin
|
|
1.6
|
%
|
|
11.8
|
%
|
|
14.9
|
%
|
|
|
|
|
|
|
|
Compression
|
|
|
|
|
|
|
Revenue
|
|
$
|
96,372
|
|
|
$
|
90,238
|
|
|
$
|
135,905
|
|
Income (loss) before
tax
|
|
(23,006)
|
|
|
(12,790)
|
|
|
(3,483)
|
|
Adjusted income
(loss) before tax (Schedule G)
|
|
(7,270)
|
|
|
(6,819)
|
|
|
124
|
|
Adjusted EBITDA
(Schedule G)
|
|
26,316
|
|
|
25,977
|
|
|
32,766
|
|
Income (Loss) Before
Tax Margin
|
|
(23.9)
|
%
|
|
(14.2)
|
%
|
|
(2.6)
|
%
|
Adjusted Income
(Loss) Before Tax Margin
|
|
(7.5)
|
%
|
|
(7.6)
|
%
|
|
0.1
|
%
|
Adjusted EBITDA
Margin
|
|
27.3
|
%
|
|
28.8
|
%
|
|
24.1
|
%
|
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SOURCE TETRA Technologies, Inc.