THE WOODLANDS, Texas, May 10, 2017 /PRNewswire/ — TETRA Technologies, Inc. («TETRA» or the «Company») (NYSE: TTI) today announced a consolidated first quarter 2017 net loss per share attributable to TETRA stockholders of $0.02, which compares to a loss of $0.33 per share in the fourth quarter of 2016 and a loss of $1.11 per share in the first quarter of 2016.

TETRA’s adjusted per share results attributable to TETRA stockholders for the first quarter of 2017, excluding Maritech and special items, were a loss of $0.10, which compares to adjusted loss per share of $0.16 in the fourth quarter of 2016 and an adjusted per share loss of $0.24 in the first quarter of 2016, also excluding Maritech and special items.  First quarter 2017 revenue of $168 million decreased 3% from the fourth quarter of 2016 and 1% from the first quarter of last year, primarily as a result of reduced unit sales and compression services in our Compression Division, offset by a strong quarter in Fluids Division water management services and fluids sales in the Gulf of Mexico. 

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

First Quarter 2017 Results

Three Months Ended

March 31, 2017

December 31, 2016

March 31, 2016

(In Thousands, Except per Share Amounts)

Revenue

$

168,001

$

173,222

$

169,329

Net loss attributable to TETRA stockholders

(2,463)

(31,554)

(88,325)

Adjusted EBITDA(1)

18,275

14,946

19,423

GAAP EPS attributable to TETRA stockholders

(0.02)

(0.33)

(1.11)

Adjusted EPS attributable to TETRA stockholders(1)

(0.10)

(0.16)

(0.24)

Consolidated net cash provided (used) by operating activities

(20,538)

28,316

25,261

TETRA only adjusted free cash flow(1)

$

(13,847)

$

16,028

$

18,488

(1)

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

Highlights of the 2017 first quarter include:

  • Fluids revenue increased by 14% sequentially despite the lack of a significant Gulf of Mexico TETRA CS Neptune® completion fluids project, which is currently scheduled for the second quarter of 2017.  The increase was driven by strong U.S. onshore activity, including water management, and market share gains in the Gulf of Mexico. 
  • Production Testing loss before taxes was $2.1 million, while adjusted EBITDA improved to positive earnings of $1.2 million, reflecting improving activity levels.
  • Compression activity is reflecting early signs of a recovery with quarter-end utilization increasing sequentially by 60 basis points to 77.0% and with the receipt of $5 million in orders for new equipment. 
  • To further improve its balance sheet and in light of the prolonged downturn in the market, CSI Compressco reduced its quarterly distribution 50% for the first quarter and amended certain financial covenants applicable to its bank revolver.  The reduction in the distribution is expected to allow CSI Compressco to reduce outstanding amounts on its revolver.
  • Consolidated net cash used by operating activities was $20.5 million.  TETRA only adjusted free cash flow was a use of $13.8 million, reflecting the normal seasonality in working capital.  (See Schedule G for the reconciliation of TETRA only free cash flow to GAAP.)
  • Receipt of $12.8 million in cash from a previously announced arbitration award for the Fluids segment.  This award and its impact on earnings has been excluded from Adjusted EBITDA.

Stuart M. Brightman, TETRA’s President and Chief Executive Officer, stated, «We believe we are seeing the initial impact of a recovering U.S. onshore market with another improved quarter in the Fluids Division’s water management operations, improved fluids sales in the Gulf of Mexico, and continued but modest improvements in utilization of the compression services fleet.  We continue to believe that a recovery in the deep water Gulf of Mexico will lag the onshore recovery.  The TETRA CS Neptune fluid project we expected for the first half of 2017 is expected to be completed in the second quarter. 

«Fluids Division revenue for the first quarter of 2017 was $72.9 million compared to $64 million in the fourth quarter of 2016. The fluids sales in the Gulf of Mexico were achieved with our strong customer base and a few notable market share gains as we took advantage of spot sales opportunities. This strong first quarter performance occurred despite the lack of any significant TETRA CS Neptune fluids activity.  Fluids Division income before taxes was $20.3 million while adjusted EBITDA was $13.6 million

«First quarter 2017 Compression Division revenue decreased 21% to $65.6 million, mainly as a result of lower equipment sales. Compression Division income before taxes was a loss of $14.3 million while adjusted EBITDA was $17.5 million. In anticipation of additional demand, CSI Compressco incurred $1 million of operating expenses to prepare idle equipment for deployment in the second half of this year.  Overall quarter-end service fleet utilization was 77.0%, compared to 76.4% in the fourth quarter. Large horsepower equipment (greater than 800 HP) utilization was 87.0% at the end of the first quarter. New equipment orders were $5 million. On April 21, 2017, CSI Compressco LP declared cash distributions attributable to the first quarter of 2017 of $0.1875 per outstanding common unit, a 50% decrease from the distribution attributable to the fourth quarter of 2016. This distribution resulted in a coverage ratio of 1.09x for the first quarter of 2017.

«First quarter 2017 revenue for the Production Testing Division improved by 41%, to $21.5 million, led by stronger activity levels in Canada and Texas, in addition to the sale of an early production facility in South America.  Production Testing adjusted EBITDA was $1.2 million, the first adjusted EBITDA profitable quarter since the first quarter of 2016.  We continue to expect to see additional improvements in activity in North America and internationally and expect to be able to better manage pricing levels later in the year.

«Our Offshore Service segment reported revenue of $8.4 million, in what is typically its weakest seasonal quarter of the year.  Loss before taxes was $6.3 million while adjusted EBITDA was a loss of $3.5 million. We have seen a significant increase in bids and quoting activity going into the traditionally strong summer season.  Our scheduled work for the next several months is at the highest levels seen since before the downturn as customers’ improved cash flows are allowing for decommissioning projects that were previously delayed.»

Free Cash Flow and Balance Sheet

TETRA only adjusted free cash flow in the first quarter of 2017 was a use of $13.9 million.  Due to the seasonality of our business, the first two quarters of the year have traditionally represented our weakest free cash flow generation quarters and the last two quarters have been the strongest.  Additionally, the second half of the year will reflect the benefit on working capital from our TETRA CS Neptune projects.  Consolidated net cash used by operating activities for the first quarter of 2017 was a use of $20.5 million.  TETRA only days sales outstanding (excluding CSI Compressco LP) increased from 70 days at the end of the fourth quarter to 76 days at the end of March.  TETRA only debt was $132.6 million, while net debt increased from $111 million to $125 million in the first quarter.

Special items and Maritech

Maritech reported a pre-tax loss of $0.7 million in the first quarter of 2017.

Consolidated first quarter earnings benefited from $16.5 million of special items, of which $12.5 million were cash items.  Special items include:

  • $12.8 million in other income from the previously disclosed legal settlement
  • $6.0 million of non-cash income from a fair value adjustment of the outstanding TETRA warrants
  • $1.6 million non-cash charge for a fair value adjustment of the CSI Compressco Series A Convertible Preferred units
  • $0.4 million of cash severance expense
  • $0.4 million of other non-cash special charges

Financial Guidance

We expect total year TETRA only adjusted free cash flow to be between $20 million and $40 million in 2017 as a result of the previously announced 50% reduction in CSI Compressco’s quarterly distribution and an increase in capital expenditures for our Fluids water management business to take advantage of market opportunities with improved pricing, among other items.

No reconciliation of the forecasted range of TETRA only adjusted free cash flow for the full year 2017 to the nearest GAAP measure is included in this release because the reconciliation would require presenting forecasted information for CSI Compressco that is not publicly disclosed.

Conference Call

TETRA will host a conference call to discuss these results today, May 10, 2017, at 10:30 a.m. ET. The phone number for the call is 888-347-5303. The conference will also be available by live audio webcast and may be accessed through TETRA’s website at www.tetratec.com.

Investor Contact

TETRA Technologies, Inc., The Woodlands, Texas
Stuart M. Brightman, 281/367-1983
Fax: 281/364-4346
www.tetratec.com 

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

Schedule A: Consolidated Income Statement
Schedule B: Financial Results By Segment
Schedule C: Consolidated Balance Sheet
Schedule D: Long-Term Debt
Schedule E: Special Items
Schedule F: Non-GAAP Reconciliation to GAAP Financials
Schedule G: Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash Flow
Schedule H: Non-GAAP Reconciliation of TETRA Net Debt

Company Overview and Forward Looking Statements

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

This press release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as «may,» «expect,» «intend,» «estimate,» «projects,» «anticipate,» «believe,» «assume,» «could,» «should,» «plans,» «targets» or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements that the Company intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements concerning the anticipated recovery of the oil and gas industry, expected results of operational business segments for 2017, anticipated benefits from CSI Compressco following the acquisition of Compressor Systems, Inc. (CSI) in 2014, including levels of cash distributions per unit, projections concerning the Company’s business activities, financial guidance, estimated earnings, earnings per share, and statements regarding the Company’s beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company, including the ability of CSI Compressco to successfully integrate the operations of CSI and recognize the anticipated benefits of the acquisition. Investors are cautioned that any such statements are not guarantees of future performances or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled «Risk Factors» contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, 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,

2017

2016

(In Thousands, Except per Share Amounts)

Revenues

$

168,001

$

169,329

Cost of sales, services, and rentals

124,258

120,441

Depreciation, amortization, and accretion

29,478

33,607

Impairments of long-lived assets

10,670

Total cost of revenues

153,736

164,718

Gross profit

14,265

4,611

General and administrative expense

28,456

33,611

Goodwill impairment

106,205

Interest expense, net

13,767

14,639

Warrants fair value adjustment

(5,976)

CCLP Series A Preferred fair value adjustment

1,631

Other (income) expense, net

(12,451)

(704)

Income (loss) before taxes

(11,162)

(149,140)

Provision (benefit) for income taxes

90

(1,409)

Net income (loss)

(11,252)

(147,731)

Net (income) loss attributable to noncontrolling interest

8,789

59,406

Net income (loss) attributable to TETRA stockholders

$

(2,463)

$

(88,325)

Basic per share information:

Net income (loss) attributable to TETRA stockholders

$

(0.02)

$

(1.11)

Weighted average shares outstanding

114,197

79,421

Diluted per share information:

Net income (loss) attributable to TETRA stockholders

$

(0.02)

$

(1.11)

Weighted average shares outstanding

114,197

79,421

 

Schedule B: Financial Results By Segment (Unaudited)

Three Months Ended
March 31,

2017

2016

(In Thousands)

Revenues by segment:

Fluids Division

$

72,895

$

59,113

Production Testing Division

21,512

19,871

Compression Division

65,559

81,695

Offshore Division

Offshore Services

8,361

10,246

Maritech

231

89

Intersegment eliminations

(523)

Offshore Division total

8,592

9,812

Eliminations and other

(557)

(1,162)

Total revenues

$

168,001

$

169,329

Gross profit (loss) by segment:

Fluids Division

$

13,495

$

7,491

Production Testing Division

83

(3,417)

Compression Division

6,163

6,955

Offshore Division

Offshore Services

(4,963)

(5,989)

Maritech

(426)

(315)

Intersegment eliminations

Offshore Division total

(5,389)

(6,304)

Corporate overhead and eliminations

(87)

(114)

Total gross profit

$

14,265

$

4,611

Income (loss) before taxes by segment:  

Fluids Division

$

20,276

$

(358)

Production Testing Division

(2,069)

(19,374)

Compression Division

(14,333)

(104,700)

Offshore Division

Offshore Services

(6,335)

(7,708)

Maritech

(663)

(620)

Intersegment eliminations

Offshore Division total

(6,998)

(8,328)

Corporate overhead and eliminations

(8,038)

(16,380)

Total income (loss) before taxes

$

(11,162)

$

(149,140)

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

 

Schedule C: Consolidated Balance Sheet (Unaudited)

March 31, 2017

December 31, 2016

(In Thousands)

Balance Sheet:

Cash (excluding restricted cash)

$

12,828

$

29,840

Accounts receivable, net

128,050

114,284

Inventories

117,493

106,546

Other current assets

26,098

25,121

PP&E, net

923,673

945,451

Other assets

91,351

94,298

Total assets

$

1,299,493

$

1,315,540

Current portion of decommissioning liabilities

$

944

$

1,451

Other current liabilities

98,896

115,434

Long-term debt (1)

640,396

623,730

Long-term portion of decommissioning liabilities

54,538

54,027

CCLP Series A Preferred

78,260

77,062

Warrant liability

12,527

18,503

Other long-term liabilities

25,005

24,867

Equity

388,927

400,466

Total liabilities and equity

$

1,299,493

$

1,315,540

(1)

Please see Schedule D for the individual debt obligations of TETRA and CSI Compressco LP.

 

Schedule D: Long-Term Debt

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

March 31, 2017

December 31, 2016

(In Thousands)

TETRA

Bank revolving line of credit facility

$

15,864

$

3,229

TETRA 11% Senior Note

116,720

116,411

TETRA total debt

132,584

119,640

Less current portion

TETRA total long-term debt

$

132,584

$

119,640

CSI Compressco LP

Bank Credit Facility

$

220,801

$

217,467

7.25% Senior Notes

287,011

286,623

Total debt

507,812

504,090

Less current portion

CCLP total long-term debt

$

507,812

$

504,090

Consolidated total long-term debt

$

640,396

$

623,730

 

Non-GAAP Financial Measures

In addition to financial results determined in accordance with GAAP, this press release includes the following non-GAAP financial measures for the Company: net debt, adjusted consolidated and segment income (loss) before taxes, excluding the Maritech segment and special charges; consolidated and segment adjusted EBITDA; and TETRA only adjusted free cash flow. 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 following the sale of essentially all of Maritech’s oil and gas properties, it is helpful to show the Company’s results excluding the impact of the costs and charges relating to the decommissioning of Maritech’s remaining properties since these results will show the Company’s historical results of operations on a basis consistent with expected future operations.  Management also 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 is defined as the Company’s diluted earnings (loss) per share excluding certain special or other charges (or credits) and using a normalized effective income tax rate. Adjusted diluted earnings (loss) per share is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.

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

TETRA only adjusted free cash flow is defined as cash from TETRA’s operations, excluding cash settlements of Maritech AROs, less capital expenditures net of sales proceeds and cost of equipment sold, and including cash distributions to TETRA from CSI Compressco LP and debt restructuring costs. 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 of companies.

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

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

 

Schedule E: Special Items

Three Months Ended

March 31, 2017

Income (Loss) Before Tax

Provision (Benefit) for Tax

Noncont. Interest

Net Income Attributable to TETRA Stockholders

Diluted EPS

(In Thousands, Except per Share Amounts)

Income (loss) attributable to TETRA stockholders, excluding unusual charges and Maritech

$

(26,998)

$

(8,100)

$

(7,647)

$

(11,251)

$

(0.10)

Severance expense

(409)

(123)

(33)

(253)

0.00

Stock warrant fair value adjustment

5,976

1,793

4,183

0.04

Allowance for bad debt

(245)

(74)

(171)

0.00

Convertible Series A preferred offering cost and fair value adjustments

(1,631)

(489)

(1,109)

(33)

0.00

ARO adjustment (accretion)

(71)

(21)

(50)

0.00

Legal award

12,879

3,864

9,015

0.08

Effect of deferred tax valuation allowance and other related tax adj

3,240

(3,240)

(0.03)

Maritech profit (loss)

(663)

(663)

(0.01)

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

$

(11,162)

$

90

$

(8,789)

$

(2,463)

$

(0.02)

Three Months Ended

December 31, 2016

Income (Loss) Before Tax

 

Provision (Benefit) for Tax

Noncont. Interest

Net Income Attributable to TETRA Stockholders

Diluted EPS

(In Thousands, Except per Share Amounts)

Income (loss) attributable to TETRA stockholders, excluding unusual charges and Maritech

$

(32,000)

$

(9,599)

$

(7,012)

$

(15,389)

$

(0.16)

Asset impairments and write-offs

(7,245)

(2,174)

(1,373)

(3,698)

(0.04)

Non-Maritech ARO adjustment

(282)

(85)

(197)

0.00

Severance expense

(179)

(54)

(125)

0.00

Debt refinancing gain, net

346

104

319

(77)

0.00

Convertible Series A Preferred offering cost and fair value adjustments

1,806

542

1,210

54

0.00

Common stock warrants issuance cost and fair value adjustments

(3,061)

(918)

(2,143)

(0.02)

Allowance for doubtful accounts for significant bankruptcies

(119)

(36)

(83)

0.00

Effect of deferred tax valuation allowance and other related tax adj

12,719

(12,719)

(0.14)

Maritech profit (loss)

2,823

2,823

0.03

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

$        (37,911)

$             499

$           (6,856)

$                (31,554)

$

(0.33)

Three Months Ended

March 31, 2016

Income (Loss) Before Tax

Provision (Benefit) for Tax

Noncont. Interest

Net Income Attributable to TETRA Stockholders

Diluted EPS

Income (loss) attributable to TETRA stockholders, excluding unusual charges and Maritech

$

(30,890)

$

(9,266)

$

(2,391)

$

(19,233)

$

(0.24)

Asset impairments and write-offs

(10,670)

(3,201)

(4,465)

(3,004)

(0.04)

Severance expense

(755)

(226)

(138)

(391)

Goodwill write-off

(106,205)

(31,862)

(52,412)

(21,931)

(0.28)

Effect of deferred tax valuation allowance and other related tax adj

43,146

(43,146)

(0.54)

Maritech profit (loss)

(620)

(620)

(0.01)

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

$

(149,140)

$

(1,409)

$

(59,406)

$                 (88,325)

$

(1.11)

 

Schedule F: Non-GAAP Reconciliation to GAAP Financials

Three Months Ended

March 31, 2017

Net

Income

(Loss),

as

reported

Tax

Provision

Income

(Loss)

Before

Tax, as

Reported

Impairments

& Special

(Credits)

Charges

Adjusted

Income

(Loss)

Before

Tax

Interest

Expense,

Net

Adjusted

Depreciation

&

Amortization

(2)

Equity

Comp.

Expense

Omnibus

Equity (3)

Adjusted

EBITDA

(In Thousands)

Fluids Division

$

20,276

$

(12,681)

$

7,595

$

13

$

5,984

$

$

$

13,592

Production Testing Division

(2,069)

265

(1,804)

(122)

3,085

1,159

Compression Division

(14,333)

1,687

(12,646)

10,102

17,297

956

1,746

17,455

Offshore Services Segment

(6,335)

206

(6,129)

2,584

(3,545)

Eliminations and other

(166)

(166)

(5)

(171)

Subtotal

(2,627)

(10,523)

(13,150)

9,993

28,945

956

1,746

28,490

Corporate and other

(7,872)

(5,976)

(13,848)

3,774

92

1,513

(1,746)

(10,215)

TETRA excluding Maritech

(10,499)

(16,499)

(26,998)

13,767

29,037

2,469

18,275

Maritech

(663)

(663)

370

(293)

Total TETRA

$

(11,252)

$

90

$

(11,162)

$

(16,499)

$

(27,661)

$

13,767

$

29,407

$

2,469

$

$

17,892

Three Months Ended

December 31, 2016

Net

Income

(Loss),

as

reported

Tax

Provision

Income

(Loss)

Before

Tax, as

Reported

Impairments

& Special

(Credits)

Charges

Adjusted

Income

(Loss)

Before

Tax

Adjusted

Interest

Expense,

Net (1)

Adjusted

Depreciation

&

Amortization

(2)

Equity

Comp.

Expense

Omnibus

Equity (3)

Adjusted

EBITDA

(In Thousands)

Fluids Division

$

1,499

$

634

$

2,133

$

12

$

6,460

$

$

$

8,605

Production Testing
Division

(7,547)

3,596

$

(3,951)

(115)

3,579

(487)

Compression Division

(11,821)

(268)

$

(12,089)

10,303

17,111

792

1,576

17,693

Offshore Services Segment

(6,233)

1,216

$

(5,017)

2,689

(2,328)

Eliminations and other

5

$

5

(5)

Subtotal

(24,097)

5,178

(18,919)

10,200

29,834

792

1,576

23,483

Corporate and other

(16,637)

3,558

(13,079)

4,609

103

1,406

(1,576)

(8,537)

TETRA excluding Maritech

(40,734)

8,736

(31,998)

14,809

29,937

2,198

14,946

Maritech

2,823

2,823

379

3,202

Total TETRA

$

(38,410)

$

499

$

(37,911)

$

8,736

$

(29,175)

$

14,809

$

30,316

$

2,198

$

$

18,148

Three Months Ended

March 31, 2016

Net

Income

(Loss), as

reported

Tax

Provision

Income

(Loss)

Before

Tax, as

Reported

Impairments

& Special

Charges

Adjusted

Income

(Loss)

Before

Tax

Interest

Expense,

Net

Depreciation

&

Amortization

Equity

Comp.

Expense

Omnibus

Equity

Adjusted

EBITDA

(In Thousands)

Fluids Division

$

(358)

$

114

$

(244)

$

(26)

$

7,396

$

$

$

7,126

Production Testing Division

(19,374)

17,073

$

(2,301)

(189)

4,592

2,102

Compression Division

(104,700)

100,443

$

(4,257)

8,802

18,464

636

23,645

Offshore Services Segment

(7,708)

$

(7,708)

2,739

(4,969)

Eliminations and other

4

$

4

(4)

Subtotal

(132,136)

117,630

(14,506)

8,587

33,187

636

27,904

Corporate and other

(16,384)

(16,384)

6,052

115

1,737

(8,480)

TETRA excluding Maritech

(148,520)

117,630

(30,890)

14,639

33,302

2,373

19,424

Maritech

(620)

(620)

305

(315)

Total TETRA

$

(147,731)

$

(1,409)

$

(149,140)

$

117,630

$

(31,510)

$

14,639

$

33,607

$

2,373

$

$

19,109

(1)

Adjusted interest expense, net, for the three month period ended December 31, 2016, excludes $0.5 million of certain interest expense which is included as a special charge.

(2)

Adjusted depreciation & amortization, net, for the three month period ended March 31, 2017, and December 31, 2016, excludes $0.1 million and $0.3 million, respectively, of certain accretion expense which is included as a special charge.

(3)

Reimbursement from CCLP under Omnibus Agreement that was or will be settled with common units.

 

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

Three Months Ended

March 31, 2017

December 31, 2016

March 31, 2016

(In Thousands)

Consolidated

Net cash (used) provided by operating activities

$

(20,538)

$

28,316

$

25,261

ARO settlements

474

271

3,379

Capital expenditures, net of sales proceeds
and cost of equipment sold

(4,812)

(5,268)

(1,985)

Consolidated adjusted free cash flow

(24,876)

23,319

26,655

CSI Compressco LP

Net cash provided by operating activities(1)

1,821

15,922

15,095

Capital expenditures, net of sales proceeds and cost of equipment sold

(7,215)

(3,057)

(1,353)

CSI Compressco free cash flow

(5,394)

12,865

13,742

TETRA Only

Cash from operating activities

(20,327)

12,394

10,166

ARO settlements

474

271

3,379

Capital expenditures, net of sales proceeds and cost of equipment sold

371

(2,211)

(632)

Free cash flow before ARO settlements

(19,482)

10,454

12,913

Distributions from CSI Compressco LP

5,635

5,574

5,575

Adjusted free cash flow

(13,847)

$

16,028

18,488

________________

(1)

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

 

Schedule H: Non-GAAP Reconciliation of TETRA Net Debt

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

March 31, 2017

TETRA

CCLP

Consolidated

(In Millions)

Non-restricted cash

$

7.4

$

5.4

$

12.8

Carrying value of long-term debt:

Revolver debt outstanding

15.9

220.8

236.7

Senior Notes outstanding

116.7

287.0

403.7

Net debt

$

125.2

$

502.4

$

627.6

 

TETRA Technologies, Inc. logo.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tetra-technologies-inc-announces-first-quarter-2017-results-and-provides-updated-total-year-2017-guidance-300455002.html

SOURCE TETRA Technologies, Inc.