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TETRA Technologies, Inc. Announces Third Quarter 2021 Income Before Discontinued Operations Of $2.5 Million And Adjusted EBITDA Of $15.0 Million

THE WOODLANDS, Texas, Nov. 1, 2021 /PRNewswire/ — TETRA Technologies, Inc. (“TETRA” or the “Company”) (NYSE:TTI) today announced third quarter 2021 results.

Third quarter 2021 revenue increased 30% from the same quarter a year ago, to $95 million.  Compared to the second quarter of 2021, revenue declined 7% as the second quarter reflects the seasonal peak in our Europe industrial calcium chloride business. Excluding the $14 million of incremental revenue from this seasonal peak, revenue increased sequentially by 8% on stronger Water & Flowback Services activity.  The Company estimates that third quarter revenue was negatively impacted by approximately $11 million due to Hurricane Ida in the Gulf of Mexico and delayed international completion fluids deliveries due to global logistics and shipping challenges.  

Net income before discontinued operations was $2.5 million, including the benefit of $6.2 million of mark-to-market gains from TETRA’s equity ownership in Standard Lithium Ltd. and CSI Compressco LP and including $1.3 million of non-recurring credits, net of charges.  This compares to a net loss before discontinued operations of $6.7 million in the second quarter, including $4.7 million of non-recurring charges and expenses.  Net income per share from continuing operations in the third quarter was $0.02.  Excluding the non-recurring credits, net income per share from continuing operations was $0.01 in the third quarter. 

Adjusted EBITDA was $15.0 million, inclusive of the mark-to-market gains of $6.2 million and excluding non-recurring credits, net of charges of $1.3 million.  The mark-to-market gains were largely offset by lower earnings resulting from delays on completion fluid projects in the Gulf of Mexico due to Hurricane Ida, delays on international deliveries due to global shipping issues, and inflationary costs on our chemicals production which are expected to continue at least into the fourth quarter.  Third quarter adjusted EBITDA increased $2.1 million, or 16%, over the second quarter of 2021 reflecting higher mark-to-market gains and stronger operational performance from Water & Flowback Services. 

Cash flow from operating activities was $2.8 million in the third quarter of 2021, compared to $1.8 million in the second quarter of 2021.  Adjusted free cash flow from continuing operations was $1.0 million.  This compares to a use of cash of $4.5 million of adjusted free cash flow from continuing operations in the second quarter of 2021.

Brady Murphy, TETRA’s Chief Executive Officer, stated, “Our third quarter results reflect continued success in executing our strategies in an improving oil and gas market and the rapidly evolving low carbon energy markets.  Our 30% year-on-year revenue growth would have been even higher without the impact of Hurricane Ida and the well-known global logistics challenges that delayed multiple completion fluid deliveries to international customers.  With the third quarter product deliveries delayed into the fourth quarter, in addition to the return of Gulf of Mexico activity plus the recent Brazil offshore awards, we expect materially higher fourth quarter revenues for Completion Fluids & Products.  Despite the challenges presented by Hurricane Ida and the global logistics issues, we were able to generate $15 million of adjusted EBITDA – the highest since the start of the global pandemic in the first quarter of 2020, and $1.0 million of positive adjusted free cash flow.  Adjusted free cash flow improved sequentially by $5.5 million reflecting aggressive working capital management and the stronger earnings from Water & Flowback Services.  We again reduced long term debt, by $8 million in the third quarter.  We do not have any amounts drawn on our asset-based loan (ABL) facility.  Furthermore, we amended our ABL to increase availability by more than $10 million and extended the maturity to 2025, both to create financial flexibility to capitalize on a recovering oil and gas market and our low carbon initiatives.

“As anticipated, Water & Flowback Services adjusted EBITDA margins improved sequentially from 5.3% in the second quarter to 10.9% in the third quarter – an improvement of 560 basis points on a sequential revenue increase of 24%.  Multiple factors contributed to this improvement, including fully mobilized and operational TETRA SandStormTM projects in Argentina, pricing improvements from many of our U.S. operations and customers, and profitable market penetration through our integrated water management projects – which reached a record high in the third quarter of 55 projects for 27 different customers.  This reflects the continued acceptance of this highly efficient and differentiated offering.  During the third quarter we were awarded additional work in Argentina with an early production facility and additional TETRA SandStormTM units, which we will build and operate on a multi-year contract starting in early 2022.  

“Completion Fluids & Products adjusted EBITDA margins were 35.1% in the third quarter including the benefit of mark-to-market gains from our equity holdings in Standard Lithium.  Excluding the mark-to-market gains, adjusted EBITDA margins were 21.9% reflecting the impact of Hurricane Ida during the quarter and inflationary pressures in certain raw materials and logistics costs.   We were awarded another deepwater completion fluids project in Brazil with a major integrated service company, which is in addition to the project we previously mentioned in our last earnings press release.  Despite a pause in Gulf of Mexico activity from Hurricane Ida, we continue to benefit from the recently announced three-year completion fluids and services contract for a super major oil and gas operator.  These market share gains reflect our consistently strong services levels across the globe, differentiated offerings for high value complex wells and competitive advantages from our vertically integrated business model which is especially important in today’s challenging supply chain environment.   

“We continue to make good progress with our low carbon energy initiatives.  In the third quarter we received and shipped our second TETRA PureFlowTM high purity zinc bromide order to a publicly traded energy storage technology company.  We anticipate having a long-term strategic supplier agreement in place with this customer before year-end, which is expected to include material orders for 2022 and collaborative planning for longer term product supply and demand based on the significant compound annual growth rate (CAGR) anticipated for energy storage. Standard Lithium completed the preliminary engineering assessment (PEA) study to extract lithium from brine from our acreage in the Smackover Formation in Arkansas.  As a reminder TETRA maintains a royalty stream from the commercial production of lithium by Standard Lithium after they exercise the option and all the mineral rights to the bromine on this acreage, which we estimate to have exploration targets of 2.54 million to 8.58 million tons of bromine.  The Standard Lithium PEA indicates very attractive economics as the acreage has an estimated 1,317,262 tons of Lithium Carbonate Equivalent at the inferred resource category, which is 49% higher from what was previously estimated.  In addition to the Standard Lithium option agreement, TETRA has previously communicated that we estimate an exploration target between 85,000 and 286,000 tons of lithium on acreage not included in the Standard Lithium agreement, where TETRA holds 100% of the lithium rights not subject to any option.  We intend to drill a well in the fourth quarter on our dedicated acreage to obtain lithium and bromines samples, allowing us to move from an exploration target to an inferred resources target phase.  We then intend to move towards a PEA study in early 2022 and believe there is significant value in our mineral rights in the Smackover Formation in Arkansas from a combination of our option agreement with Standard Lithium, our bromine assets to meet the growing demands for completion fluids and energy storage, and our 100% TETRA lithium assets that are not subject to any option.  We will continue to evolve these assets to create shareholder value.

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“We have reduced our term loan by over $44 million from $220 million on September 30, 2020 to $176 million as of September 30, 2021. We repaid $8 million in the third quarter of 2021 and expect to repay at least an additional $10 million in the fourth quarter of 2021.  During the third quarter of 2021, we recorded mark-to-market gains of $6.2 million on our equity holdings of CSI Compressco LP and Standard Lithium.  As of September 30, 2021, the market value of these investments was $22 million, with no holding restrictions on our ability to monetize these investments. 

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 from continuing operations, 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 H for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

Third Quarter Results and Highlights

A summary of key financial metrics for the third quarter are as follows: 

Third Quarter 2021 Results


Three Months Ended


September 30,
2021


June 30, 2021


September 30,
2020


(In Thousands, Except per Share Amounts)

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Revenue

$

95,474



$

102,326



$

73,484


Income (loss) before discontinued operations

2,495



(6,654)

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(9,559)


Adjusted EBITDA before discontinued operations

15,022



12,967



7,360


GAAP EPS from continuing operations

0.02



(0.05)



(0.08)


Adjusted EPS from continuing operations

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0.01



(0.02)



(0.06)


GAAP net cash provided by operating activities

2,817



1,788



4,440


Adjusted free cash flow from continuing operations

$

1,000

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$

(4,450)



$

7,499


Completion Fluids & Products third quarter 2021 revenue of $48.7 million declined 25% from the second quarter of 2021 reflecting the seasonal high from Europe calcium chloride sales in the second quarter, in addition to an estimated $11 million negative revenue impact from Hurricane Ida in the Gulf of Mexico plus loop currents and international shipping delays.  Completion Fluids & Products income before taxes was $14.7 million in the third quarter (30.1% of revenue) compared to $16.4 million (25.4% of revenue) in the second quarter of 2021. Adjusted EBITDA of $17.1 million decreased $0.8 million sequentially.  Third quarter Adjusted EBITDA includes $6.4 million favorable mark-to-market adjustment from TETRA’s investment in Standard Lithium.

Water & Flowback Services revenue was $46.8 million in the third quarter of 2021, an increase of 24% from the second quarter of 2021, and loss before taxes was $1.8 million. Adjusted EBITDA of $5.1 million (10.9% of revenue) increased 156% sequentially due to stronger domestic activity and some pricing improvements helping offset ongoing inflationary pressures.

Free Cash Flow and Balance Sheet

Cash from operating activities was $2.8 million in the third quarter while adjusted free cash flow from continuing operations was $1.0 million. Liquidity at the end of third quarter was $90 million.  Liquidity is defined as unrestricted cash plus availability under the revolving credit facility. At the end of the third quarter unrestricted cash was $42 million and availability under our credit facility was $48 million. Debt was $164 million after the $8.2 million pay down in July, while net debt was $122 million.

Non-recurring Charges and Expenses Items

Non-recurring charges and expenses are reflected on Schedule E and include $3.2 million of non-cash stock warrant fair value adjustment income, $1.6 million of legal, settlement and other expenses and $0.2 million of cumulative adjustments to long-term incentives and appreciation right expenses.

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Conference Call

TETRA will host a conference call to discuss these results tomorrow, November 2, 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 10161269, 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: Condensed Consolidated Balance Sheet
Schedule C: Consolidated Statements of Cash Flows
Schedule D: Statement Regarding Use of Non-GAAP Financial Measures
Schedule E: Non-GAAP Reconciliation of Adjusted Income (Loss) From Continuing Operations
Schedule F: Non-GAAP Reconciliation of Adjusted EBITDA
Schedule G: Non-GAAP Reconciliation of Net Debt
Schedule H: Non-GAAP Reconciliation to Adjusted Free Cash Flow From Continuing Operations

Company Overview and Forward-Looking Statements

TETRA Technologies, Inc. is an industrial and oil & gas products and services company operating on six continents focused on bromine-based completion fluids, calcium chloride, water management solutions, frac flowback and production well testing services.  Calcium chloride is used in the oil and gas, industrial, agricultural, road, food and beverage markets.  TETRA is evolving its business model by expanding into the low carbon energy markets with its chemistry expertise, key mineral acreage and global infrastructure.  Recently announced initiatives include commercialization of TETRA PureFlowTM an ultra-pure zinc bromide for stationary batteries and energy storage; advancing an innovative carbon capture utilization and storage technology with CarbonFree to capture CO2 and mineralize emissions to make commercial, carbon-negative chemicals; and development of TETRA’s lithium and bromine mineral acreage to meet the growing demand for oil and gas products and energy storage.  Visit the Company’s website at www.tetratec.com.

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 statements concerning the anticipated recovery of the oil and gas industry; the effects of curtailments in completion fluid projects in the Gulf of Mexico related to Hurricane Ida; customer delays for international completion fluids related to global shipping and logistics issues; potential revenue associated with prospective energy storage projects or our pending carbon capture partnership; exploration targets of lithium and bromine, the potential extraction of lithium and bromine from the leased acreage, the economic viability thereof, and the timing and costs of such activities; statements regarding debt reduction, 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. The potential quantity and grade of the exploration targets included in this news release is conceptual in nature, there has been insufficient exploration to estimate a mineral resource, and it is uncertain if further exploration will result in the estimation of a mineral resource. The exploration targets expressed should not be misrepresented or misconstrued as an estimate of a mineral resource or mineral reserve. 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.

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Schedule A: Consolidated Income Statement (Unaudited)



Three Months Ended


Nine Months Ended


September
30, 2021


June 30,
2021


September
30, 2020


September
30, 2021


September
30, 2020


(In Thousands, Except per Share Amounts)

Revenues

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$

95,474



$

102,326



$

73,484



$

275,124



$

302,257

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Cost of sales, services, and rentals

71,419



77,208



53,567



209,241



218,289


Depreciation, amortization, and accretion

8,308



8,236



9,657

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25,495



28,934


Impairments and other charges



449



97



449



97


Insurance recoveries

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(52)



(110)



(126)


Total cost of revenues

79,727



85,893



63,269



235,075



247,194

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Gross profit

15,747



16,433



10,215



40,049



55,063












General and administrative expense

18,714



17,351



16,123

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56,077



60,333


Interest expense, net

4,083



3,886



4,338



12,373



14,234


Warrants fair value adjustment expense (income)

(3,164)

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2,698





(143)



(327)


Other income, net

(6,968)



(2,232)



(788)



(14,295)



(1,308)

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Income (loss) before taxes and discontinued operations

3,082



(5,270)



(9,458)



(13,963)



(17,869)


Provision for income taxes

587



1,384



101

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2,139



1,877


Income (loss) before discontinued operations

2,495



(6,654)



(9,559)



(16,102)



(19,746)


Discontinued operations:










Income (loss) from discontinued operations, net of taxes

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18



(126)



(12,039)



120,882



(49,195)


Net income (loss)

2,513



(6,780)



(21,598)



104,780

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(68,941)


Less: (income) loss attributable to noncontrolling interest(1)



27



8,296



(306)



32,833


Net income (loss) attributable to TETRA stockholders

$

2,513

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$

(6,753)



$

(13,302)



$

104,474



$

(36,108)












Basic per share information:










Income (loss) from continuing operations

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$

0.02



$

(0.05)



$

(0.08)



$

(0.13)



$

(0.16)

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Income (loss) from discontinued operations

$

0.00



$

0.00



$

(0.02)



$

0.96



$

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(0.13)


Net income (loss) attributable to TETRA stockholders

$

0.02



$

(0.05)



$

(0.10)



$

0.83

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$

(0.29)


Weighted average shares outstanding

126,733


126,583



125,893


126,489



125,789











Diluted per share information:










Income (loss) from continuing operations

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$

0.02



$

(0.05)



$

(0.08)



$

(0.13)



$

(0.16)

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Income (loss) from discontinued operations

$

0.00



$

0.00



$

(0.02)



$

0.96



$

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(0.13)


Net income (loss) attributable to TETRA stockholders

$

0.02



$

(0.05)



$

(0.10)



$

0.83

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$

(0.29)


Weighted average shares outstanding

128,694



126,583



125,893


126,489



125,789




(1) 

(Income)/loss attributable to noncontrolling interest includes zero income for both the three-month periods ended September 30, 2021 and June 30, 2021, and $8,342 loss for the three-month period ended September 30, 2020, and $333 income and $32,957 loss for the nine-month periods ended September 30, 2021 and 2020, respectively, related to discontinued operations.

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Schedule B: Condensed Consolidated Balance Sheet (Unaudited)



September 30,
2021


December 31,
2020


(In Thousands)


(Unaudited)

ASSETS




Current assets:




Cash and cash equivalents

$

41,863

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$

67,252

Restricted cash


65

Trade accounts receivable

79,118


64,078

Inventories

72,286

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76,658

Assets of discontinued operations


710,006

Prepaid expenses and other current assets

16,121


13,487

Total current assets

209,388


931,546

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Property, plant, and equipment, net

87,348


96,856

Patents, trademarks and other intangible assets, net

38,071


41,487

Deferred tax assets, net

44


52

Operating lease right-of-use assets

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38,795


43,448

Investments

22,412


2,675

Other assets

15,178


16,775

Total long-term assets

201,848

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201,293

Total assets

$

411,236


$

1,132,839





LIABILITIES AND EQUITY




Current liabilities:




Trade accounts payable

$

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41,268


$

22,573

Unearned income

1,432


2,675

Accrued liabilities and other

48,552


38,791

Liabilities of discontinued operations

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1,327


734,039

Total current liabilities

92,579


798,078

Long-term debt, net

164,228


199,894

Deferred income taxes

1,817

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1,942

Asset retirement obligations

12,840


12,484

Warrants liability

56


198

Operating lease liabilities

33,145


37,569

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Other liabilities

6,493


11,612

Total long-term liabilities

218,579


263,699

Commitments and contingencies




TETRA stockholders’ equity

101,191


(9,640)

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Noncontrolling interests

(1,113)


80,702

Total equity

100,078


71,062

Total liabilities and equity

$

411,236


$

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1,132,839

Schedule C: Consolidated Statements of Cash Flows (Unaudited)



Nine Months Ended

September 30,


2021


2020


(In Thousands)

Operating activities:




Net income (loss)

$

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104,780



$

(68,941)


Reconciliation of net income (loss) to net cash provided by operating activities:




Depreciation, amortization, and accretion

25,524



88,906


Gain on GP Sale

(120,574)



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Impairment and other charges

449



14,445


Gain on retained CSI Compressco units and Standard Lithium shares

(11,803)




Equity-based compensation expense

3,611



4,847


Amortization and expense of financing costs and deferred financing gains

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2,320



3,698


Debt-related expenses



4,777


Warrants fair value adjustment

(143)



(326)


Gain on sale of assets

(479)

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(4,340)


Other non-cash charges

(340)



5,814


Changes in operating assets and liabilities:




Accounts receivable

(15,246)



62,039


Inventories

2,449

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11,780


Prepaid expenses and other current assets

(2,927)



(916)


Trade accounts payable and accrued expenses

25,231



(57,844)


Other

(2,428)



888

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Net cash provided by operating activities

10,424



64,827


Investing activities:




Purchases of property, plant, and equipment, net

(14,620)



(22,011)


Proceeds from sale of CCLP, net of cash divested

566



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Proceeds on sale of property, plant, and equipment

1,016



24,704


Insurance recoveries associated with damaged equipment

110



643


Other investing activities

764



(576)


Net cash (used in) provided by investing activities

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(12,164)



2,760


Financing activities:




Proceeds from long-term debt



404,060


Principal payments on long-term debt

(37,477)



(408,666)


CSI Compressco distributions

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(932)


Tax remittances on equity based compensation



(341)


Dividend payments attributable to noncontrolling interest

(99)




Debt issuance costs and other financing activities

(1,080)

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(3,897)


Net cash used in financing activities

(38,656)



(9,776)


Effect of exchange rate changes on cash

(1,635)



(355)


(Decrease) increase in cash and cash equivalents

(42,031)



57,456

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Cash and cash equivalents and restricted cash at beginning of period

83,894



17,768


Cash and cash equivalents at beginning of period associated with discontinued operations

16,577



2,370


Cash and cash equivalents and restricted cash at beginning of period associated with
continuing operations

67,317



15,398


Cash and cash equivalents and restricted cash at end of period

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41,863



75,224


Cash and cash equivalents at end of period associated with discontinued operations



6,757


Cash and cash equivalents and restricted cash at end of period associated with continuing
operations

$

41,863



$

68,467

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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, special charges and discontinued operations; adjusted diluted earnings (loss) per share from continuing operations; consolidated and segment adjusted EBITDA; adjusted free cash flow and 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) from continuing operations is defined as the Company’s income (loss) before noncontrolling interests and discontinued operations, excluding certain special or other charges (or credits), and including noncontrolling interest attributable to continued operations. Adjusted income (loss) from continuing operations 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 from continuing operations is defined as the Company’s diluted earnings (loss) per share excluding certain special or other charges (or credits), discontinued operations and noncontrolling interest attributable to discontinued operations. 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 certain non-cash charges, non-recurring adjustments and discontinued operations. Adjusted EBITDA (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 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.

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: Non-GAAP Reconciliation of Adjusted Income (Loss) From Continuing Operations (Unaudited) 



Three Months Ended

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September 30,
2021


June 30, 2021


September 30,
2020


(In Thousands, Except per Share Amounts)







Income (loss) before taxes and discontinued operations

$

3,082



$

(5,270)



$

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(9,458)


Provision for income taxes

(587)



(1,384)



(101)


Noncontrolling interest attributed to continuing operations



27



46


Income (loss) from continuing operations

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2,495



(6,627)



(9,513)


Adjustment to long-term incentives

656



627




Transaction and other expenses

1,350



(345)

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124


Former CEO stock appreciation right expense

(466)



714




Restructuring charges

295



1,033



665


Stock warrant fair value adjustment

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(3,164)



2,698




Severance expenses





1,260


Adjusted income (loss) from continuing operations

$

1,166

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$

(1,900)



$

(7,464)








Diluted per share information






Income (loss) from continuing operations

$

0.02



$

(0.05)

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$

(0.08)


Adjusted income (loss) from continuing operations

$

0.01



$

(0.02)



$

(0.06)


Diluted weighted average shares outstanding

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128,694



126,583



125,893


Schedule F: Non-GAAP Reconciliation of Adjusted EBITDA (Unaudited)



Three Months Ended September 30, 2021


Completion
Fluids &
Products


Water &
Flowback
Services


Corporate
SG&A


Other and
Eliminations


Total

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(In Thousands, Except Percents)

Revenues

$

48,691



$

46,783



$



$

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$

95,474


Net income (loss) before taxes and

discontinued operations

14,675



(1,807)



(8,408)



(1,378)



3,082


Adjustment to long-term incentives

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656





656


Transaction and other expenses

630



693



27



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1,350


Former CEO stock appreciation right expense





(466)





(466)


Restructuring expenses

254



41

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295


Stock warrant fair value adjustment







(3,164)



(3,164)


Adjusted income (loss) before taxes and
discontinued operations

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$

15,559



$

(1,073)



$

(8,191)



$

(4,542)



$

1,753

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Adjusted interest (income) expense, net

(165)



2





4,246



4,083


Adjusted depreciation and amortization

1,712



6,192



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225



8,129


Equity compensation expense





1,057





1,057


Adjusted EBITDA

$

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17,106



$

5,121



$

(7,134)



$

(71)



$

15,022












Adjusted EBITDA as a % of revenue

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35.1

%


10.9

%






15.7

%


Three Months Ended June 30, 2021


Completion
Fluids &
Products


Water &
Flowback
Services


Corporate
SG&A

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Other and
Eliminations


Total


(In Thousands, Except Percents)

Revenues

$

64,607



$

37,719



$

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$



$

102,326


Net income (loss) before taxes and

discontinued operations

16,427



(4,978)



(9,543)



(7,176)

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(5,270)


Adjustment to long-term incentives





627





627


Transaction and other expenses

(391)



145

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(99)





(345)


Former CEO stock appreciation right expense





714





714


Restructuring expenses

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291



742







1,033


Stock warrant fair value adjustment







2,698

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2,698


Adjusted income (loss) before taxes and
discontinued operations

$

16,327



$

(4,091)



$

(8,301)



$

(4,478)

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$

(543)


Adjusted interest (income) expense, net

(162)



3





4,044



3,885


Adjusted depreciation and amortization

1,701

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6,087





245



8,033


Equity compensation expense





1,592





1,592

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Adjusted EBITDA

$

17,866



$

1,999



$

(6,709)



$

(189)



$

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12,967












Adjusted EBITDA as a % of revenue

27.7

%


5.3

%






12.7

%


Three Months Ended September 30, 2020


Completion
Fluids &
Products

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Water &
Flowback
Services


Corporate
SG&A


Other and
Eliminations


Total


(In Thousands, Except Percents)

Revenues

$

51,950



$

21,534

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$



$



$

73,484


Net income (loss) before taxes and

discontinued operations

11,756



(7,746)

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(8,958)



(4,510)



(9,458)


Severance

177



150



933





1,260


Transaction and other expenses

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124







124


Restructuring and severance expenses

665







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665


Impairments and other charges

(113)





97





(16)


Adjusted income (loss) before taxes and
discontinued operations

12,485



(7,472)

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(7,928)



(4,510)



(7,425)


Adjusted interest (income) expense, net

(291)



(77)





4,706



4,338

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Adjusted depreciation and amortization

1,710



7,584





170



9,464


Equity compensation expense





983

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983


Adjusted EBITDA

$

13,904



$

35



$

(6,945)



$

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366



$

7,360












Adjusted EBITDA as a % of revenue

26.8

%


0.2

%






10.0

%

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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.



September 30,
2021


December 31,
2020


(In Thousands)

Non-restricted cash

$

41,863



$

67,252

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Asset-Based Credit Agreement




Term Credit Agreement

$

164,228



$

199,894


Net debt

$

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122,365



$

132,642


Schedule H: Non-GAAP Reconciliation to Adjusted Free Cash Flow From Continuing Operations (Unaudited)



Three Months Ended


Nine Months Ended


September
30, 2021


June 30, 2021


September
30, 2020


September
30, 2021

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September
30, 2020


(In Thousands)

Cash from operating activities

$

2,817



$

1,788



$

4,440



$

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10,424



$

64,827


Discontinued operations operating
activities (adjusted EBITDA)





(4,451)



(416)



13,729


Cash from continued operating activities

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2,817



1,788



8,891



10,840



51,098


Less: Continuing operations capital
expenditures, net of proceeds from asset
sales

(1,869)



(6,290)



(1,560)



(10,624)

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(8,249)


Distributions from CSI Compressco LP (1)

52



52



168



104



506


Cash (distributed to partners) received
from other investments



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2,354




Adjusted Free Cash Flow From
Continuing Operations

$

1,000



$

(4,450)



$

7,499

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$

2,674



$

43,355












(1) 

Following the GP Sale on January 29, 2021, TETRA retained a 10.9% limited partner interest in CCLP.

SOURCE TETRA Technologies, Inc.

Related Links

http://www.tetratec.com

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Source: https://www.prnewswire.com:443/news-releases/tetra-technologies-inc-announces-third-quarter-2021-income-before-discontinued-operations-of-2-5-million-and-adjusted-ebitda-of-15-0-million-301413325.html

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