THE WOODLANDS, Texas, Feb. 27, 2015 /PRNewswire/ -- TETRA Technologies, Inc. (NYSE:TTI) today announced fourth quarter 2014 earnings per share of $0.09, excluding Maritech and other charges, which compares to $0.12 per share in the fourth quarter of 2013, also excluding Maritech and other charges.  Fourth quarter 2014 revenue of $316 million increased 40% from the fourth quarter of 2013 primarily as a result of the acquisition of Compressor Systems, Inc. ("CSI") on August 4, 2014 by CSI Compressco LP.

Consolidated GAAP fourth quarter 2014 earnings per share to TETRA stockholders including Maritech and other charges was a loss of $(1.90) with 78.9 million weighted average common shares outstanding, which compares to the fourth quarter of 2013 loss of $(0.13) with 78.2 million weighted average common shares outstanding.

Highlights of the 2014 fourth quarter include:

  • Fourth quarter adjusted free cash flow, excluding the CSI Compressco LP free cash flow and Maritech asset retirement obligations (ARO) cash settlements, was $57 million due to lower capital expenditures and improvements in working capital management as well as adjusted earnings being consistent with the fourth quarter guidance that was provided on November 7, 2014.  Adjusted TETRA free cash flow for 2014 was $86 million(1);
  • Adjusted Production Testing pre-tax margins were 15.5%, up sequentially from 6.8% in the third quarter of 2014 reflecting the cumulative impact of actions to expand and diversify the customer base, reposition equipment and cost reductions (2);
  • Continued improvements in the Fluids Division driven by stronger completion fluids volumes onshore and offshore (Gulf of Mexico and internationally) in addition to improved results in chemical product sales;
  • The Compression Division reported adjusted EBITDA of $34 million, inclusive of results from the acquisition of CSI, which are consistent with our acquisition economics.  On January 22, 2015, CSI Compressco LP declared a quarterly distribution of $0.485 per unit, with a coverage ratio of 1.71x (2);
  • Fourth quarter goodwill and other asset impairments, transaction costs, and Maritech's net loss totaled $1.99 per share.
    (1)See Schedule H for details. (2) See Schedule B for GAAP amount  details.

Fourth Quarter Results, excluding unusual charges and Maritech

Stated in thousands, except per share amounts


Three Months Ended


Change


Dec. 31, 2014


Dec. 31, 2013


Year-on-year

Revenue

$315,093


$224,068


41%

Income before taxes and discontinued operations(1)

14,204


12,463


14%

Net income attributable to TETRA shareholders(1)

7,048


9,215


-24%

Diluted EPS attributable to TETRA shareholders(1)

$0.09


$0.12


-24%

Adjusted Pretax operating margin

4.5%


5.6%


 -105 bps

Adjusted EBITDA

67,605


39,099


73%

(1) Income before taxes and discontinued operations, including unusual charges and Maritech was a loss of $(119.9) million in the fourth quarter of 2014 and a loss of $(17.6) million in the fourth quarter of 2013.  Net income attributable to TETRA shareholders, including unusual charges and Maritech was a loss of $(149.7) million in the fourth quarter of 2014, and a loss of $(10.3) million in the fourth quarter of 2013.  Diluted EPS, including unusual charges and Maritech was a loss of $(1.90) in the fourth quarter of 2014, and a loss of $(0.13) in the fourth quarter of 2013.  See Schedules E and G for details.

Analysis of Fourth Quarter Results

Stuart M. Brightman, TETRA's President and Chief Executive Officer, stated, "Revenues in our Fluids Division for the fourth quarter of 2014 increased by 4.7% sequentially and 24% compared to the fourth quarter of 2013, and profitability showed a similar improvement versus both comparable periods. Excluding $6.5 million of asset impairment charges, the Fluids Division reported adjusted pretax profits of $19 million in the fourth quarter of 2014.  This outstanding performance was driven by strength in Gulf of Mexico completion services and expansion in US land operations, chemicals product sales, and our international operations.

"Our Production Testing Division's fourth quarter results also improved sequentially, as well as compared to 2013's fourth quarter, with adjusted pretax earnings for the Division of $8.8 million, which were 15.5% of revenue, excluding $75 million of goodwill and other asset impairments.  The Production Testing Division's adjusted pretax earnings for the fourth quarter of 2013 were $0.7 million. This continued trend of increasing profitability was driven by improvement in our North American operations due to the aggregate impact of cost reductions, the redeployment of assets to more favorable basins, and continued expansion of our customer base. Our improved fourth quarter results in Production Testing clearly demonstrates the benefit of our aggressive pursuit of these actions over the past year.

"Our Compression Division closed its first complete quarter following the August 2014 acquisition of Compressor Systems, Inc. with results that were consistent with our expectations for revenue expansion and cost reduction, and verified the successful execution of our integration strategy. Excluding transaction costs and asset impairments of $2.9 million, the Compression Division's pretax earnings for the fourth quarter of 2014 were $6.2 million.  Adjusted EBITDA was $34.5 million excluding the noted transaction and other expenses.  CSI Compressco LP previously reported a fourth quarter distribution of $0.485 per unit and distribution coverage ratio of 1.71x.

"Our Offshore Services Segment had an adjusted pretax loss of $(3.1) million for the fourth quarter, excluding $18 million of asset impairments and goodwill charges. During the fourth quarter, the Segment continued to see significant project delays and reduced demand in a very competitive market environment. We have continued to reduce personnel and leased-asset costs for this Segment, in-line with market activity. We expect demand to continue to be soft in a low-commodity-price environment during 2015.

"Maritech made significant progress on several of its remaining abandonment and decommissioning projects during the fourth quarter. We will continue work on the reduction of Maritech's remaining asset retirement obligations as practical during 2015.  

"During the fourth quarter of 2014, we generated $57 million of free cash flow, excluding CSI Compressco LP free cash flow and Maritech ARO cash settlements, and $86 million for the total year 2014, which marks the second consecutive year above our $80 million annual target (as shown in Schedule H). This gives us additional confidence in our ability to remain cash flow positive, even in challenging market conditions, during 2015."

Divisional revenues, adjusted pretax earnings/(loss), adjusted pretax margins, and adjusted EBITDA for the fourth quarter of 2014 versus the fourth quarter of 2013 are summarized in the table below:

Segment Results




Stated in thousands





Three Months Ended


Dec. 31, 2014


Dec. 31, 2013


Revenue

Income
Before
Taxes(1)

% of
Revenue(2)

Adjusted
EBITDA(2)


Revenue

Income
Before
Taxes(1)

% of
Revenue(2)

Adjusted
EBITDA(2)

Fluids Division

$110,271

$19,109

17.3%

$27,523


$88,782

$13,734

15.5%

$19,614

Production Testing Division

56,632

8,790

15.5%

15,500


46,563

671

1.4%

7,501

Compression Division

124,830

13,814

11.1%

34,494


32,714

6,855

21.0%

10,949

Offshore Services Segment

42,296

(3,059)

-7.2%

92


67,273

7,097

10.5%

10,610

Eliminations & Other

(18,936)

3

0.0%

0


(11,264)

(105)


(106)

Subtotal

315,093

38,657

12.3%

77,609


224,068

28,252

12.6%

48,567

Corporate & Other

-

(11,634)


(10,005)


-

(11,262)


(9,468)

Interest expense, net - Compression Division

-

(7,662)


-


-

(166)


-

Interest expense, net - TTI

-

(5,158)


-


-

(4,361)


-

Unsual charges & Maritech(3)

757

(134,070)


-


1,366

(30,110)


-

As reported

315,850

(119,867)

-38.0%

67,605


225,435

(17,646)

-7.8%

39,099

(1) Segment Income Before Taxes are adjusted.  Refer to Schedule G for details.

(2) GAAP pre-tax margins for fourth quarter 2014 are: Fluids Division - 11.5%, Production Testing Division - (117.5)% , Compression Division - 2.6% and Offshore Services Segment - (49.0)%.  GAAP pre-tax margins for fourth quarter 2013 are: Fluids Division - 15.5%, Production Testing Division - 1.4% , Compression Division - 19.5% and Offshore Services Segment - (3.3)%.  Refer to Schedule B for GAAP amounts.

(3) EBITDA is a non-GAAP financial measure that is defined and reconciled to the nearest GAAP financial measure in Schedule G.

(4) Refer to Schedule E for details.

Unusual and Other Charges and Maritech

During the fourth quarter 2014, the Maritech ARO's were revised to reflect primarily the expected costs to complete certain remaining wells.  This adjustment resulted in a pretax loss for the fourth quarter in the Maritech segment of $(31) million.  On a per share basis, this amounts to $(0.25) per share.

Additionally, in anticipation of a continued period of weak oil prices and reduced activity levels, TETRA adjusted the carrying value of goodwill and certain intangible assets, deferred taxes and certain assets for the Offshore Services Segment, Production Testing Division and Fluids Division.  These non-cash charges total $1.74 per share, and are detailed on Schedule E.

Net Debt

At December 31, 2014 the cash and debt positions of TETRA and CSI Compressco LP are noted 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.  The management believes that the most appropriate method to analyze the debt positions of each company is to view them as noted below:


As of December 31, 2014

Stated in millions

TETRA


CSI Compressco LP





Non Restricted Cash

$14


$34





Revolver debt outstanding

90


195

Current portion of Long-term debt

90


-

Long-term debt

215


345

Net Debt

381


506

Conference Call

TETRA will host a conference call to discuss fourth quarter 2014 results today, February 27, 2015, at 10:30 am 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.

Financial Statements, Schedules and Non-GAAP Reconciliation Schedules

Schedule A – Consolidated Income Statement - Unaudited
Schedule B – Financial Results By Segment - Unaudited
Schedule C – Consolidated Balance Sheet - Unaudited
Schedule D – Long Term and Net Debt
Schedule E – Fourth Quarter Unusual Charges
Schedule F – Total Year Unusual Charges
Schedule G – Reconciliation to GAAP Financials
Schedule H – Free Cash Flow Reconciliation to GAAP

Schedule A – Consolidated Income Statement - Unaudited


Three Months Ended

December 31,


Twelve Months Ended

December 31,


2014



2013



2014



2013



(In Thousands)

Revenues

$

315,850



$

225,435



$

1,077,567



$

909,398


















Cost of Sales, Service and Rentals

242,402



176,829



830,769



683,443


Depreciation, Amortization, and Accretion

38,631



20,487



116,912



80,985


Impairments of long-lived assets

34,842



9,578



34,842



9,578


Total Cost of Revenues

315,875



206,894



982,523



774,006


Gross profit (loss)

(25)



18,541



95,044



135,392














General and administrative expense

39,900



32,434



142,689



131,466


Goodwill impairment

64,295





64,295




Interest expense, net

12,805



4,536



31,998



17,121


(Gain) loss on sale of assets

537



(278)



(11)



(5,776)


Other (income) expense

2,305



(505)



13,944



(7,291)


Income (loss) before taxes and discontinued operations

(119,867)



(17,646)



(157,871)



(128)


Provision (benefit) for income taxes

27,601



(8,526)



9,704



(3,454)


Income (loss) before  discontinued operations

(147,468)



(9,120)



(167,575)



3,326


Income from discontinued operations, net of taxes



(1)





(1)


Net income (loss)

(147,468)



(9,121)



(167,575)



3,325


Net (income) attributable to noncontrolling interest

(2,282)



(1,208)



(2,103)



(3,172)


Net income (loss) attributable to TETRA stockholders

$

(149,750)



$

(10,329)



$

(169,678)



$

153














Basic per share information:












Net income (loss) attributable to TETRA stockholders

$

(1.90)



$

(0.13)



$

(2.16)



$

0.00


Weighted average shares outstanding

78,887



78,211



78,600



77,954














Diluted per share information:












Net income (loss) attributable to TETRA stockholders

$

(1.90)



$

(0.13)



$

(2.16)



$

0.00


Weighted average shares outstanding

78,877



78,211



78,600



78,840














Schedule B – Financial Results by Segment - Unaudited



Three Months Ended

December 31,


Twelve Months Ended

December 31,


2014



2013



2014



2013



(In Thousands)

Revenues by segment:












Fluids Division

$

110,271



$

88,782



$

437,362



$

382,663


Production Testing Division

56,633



46,563



192,824



195,983


Compression Division

124,829



32,714



282,505



121,287


Offshore Division












Offshore Services

42,296



67,273



195,372



255,812


Maritech

758



1,366



4,722



5,560


Intersegment eliminations

(17,542)



(10,383)



(30,595)



(50,122)


Offshore Division total

25,512



58,256



169,499



211,250


Eliminations and other

(1,395)



(880)



(4,623)



(1,785)


Total revenues

$

315,850



$

225,435



$

1,077,567



$

909,398














Gross profit (loss) by segment:












Fluids Division

$

21,161



$

21,204



$

97,806



$

100,106


Production Testing Division

(1,959)



5,882



12,610



29,566


Compression Division

25,606



11,346



66,527



38,726


Offshore Division












Offshore Services

(13,943)



721



(10,314)



36,147


Maritech

(30,634)



(20,028)



(69,861)



(66,828)


Intersegment eliminations








Offshore Division total

(44,577)



(19,307)



(80,175)



(30,681)


Corporate overhead and eliminations

(256)



(584)



(1,724)



(2,325)


Total gross profit

$

(25)



$

18,541



$

95,044



$

135,392














Income (loss) before taxes by segment:












Fluids Division

$

12,628



$

13,735



$

64,705



$

69,438


Production Testing Division

(66,547)



671



(66,168)



14,093


Compression Division

3,237



6,367



7,340



20,200


Offshore Division












Offshore Services

(20,713)



(2,194)



(26,251)



22,870


Maritech

(30,948)



(20,286)



(71,154)



(64,396)


Intersegment eliminations








Offshore Division total

(51,661)



(22,480)



(97,405)



(41,495)


Corporate overhead and eliminations

(17,524)



(15,939)



(66,341)



(62,364)


Total income (loss) before taxes

$

(119,867)



$

(17,646)



$

(157,871)



$

(128)


Please note that the above results by Segment are inclusive of the unusual charges and expenses. Please see Schedules E and F for details of those unusual charges and expenses.

Schedule C – Consolidated Balance Sheet - Unaudited


December 31, 2014


December 31, 2013


(In Thousands)

Balance Sheet:






Cash (excluding restricted cash)

$

48,384



$

38,754


Accounts receivable, net

223,301



180,659


Inventories

189,144



100,792


Other current assets

35,967



53,734


PP&E, net

1,124,623



572,616


Other assets

445,288



259,978


Total assets

$

2,066,707



$

1,206,533








Current portion of decommissioning liabilities

$

12,758



$

38,700


Other current liabilities

364,163



134,326


Long-term debt

844,961



387,727


Long-term portion of decommissioning liabilities

49,983



12,204


Other long-term liabilities

28,647



36,078


Equity

766,195



597,498


Total liabilities and equity

$

2,066,707



$

1,206,533


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

Schedule D - Long-Term Debt and Net Debt

TETRA Technologies Inc. and its subsidiaries, excluding CSI Compressco LP and its subsidiaries, are obligated under a bank credit agreement and senior notes, neither of which are obligations 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 are obligations of TETRA and its other subsidiaries.


December 31, 2014


December 31, 2013


(In Thousands)







TETRA






Bank revolving line of credit facility

$

90,000



$

52,768


TETRA Senior Notes at various interest rates

305,000



305,000


Other debt

74



89


TETRA Total debt

395,074



357,857


Less current portion

(90,074)



(89)


   TETRA Total long-term debt

$

305,000



$

357,768








CSI Compressco LP






CSI Compressco bank credit facility

$

195,000



$

29,959


CSI Compressco 7.25% Senior Notes

344,961




   CSI Compressco long-term debt

539,961



29,959










Consolidated total long-term debt

$

844,961



$

387,727


Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures for the Company: net debt, consolidated and segment income before taxes, excluding the Maritech segment and unusual charges; Adjusted EBITDA; and 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.

The following reconciliation of net debt is also presented as a supplement to financial results prepared in accordance with GAAP. The Company defines net debt as the sum 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 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. A reconciliation of long-term debt to net debt as of December 31, 2014 and December 31, 2013 is provided below.


December 31, 2014


December 31, 2013


(In Thousands)

Net Debt – TETRA






Total debt, excluding CSI Compressco LP debt

$

395,074



$

357,857


Less: cash, excluding CSI Compressco LP cash

(14,318)



(29,277)


Net debt

$

380,756



$

328,580


In addition to financial results determined in accordance with GAAP, this press release also includes consolidated and segment income before taxes, excluding the Maritech segment and certain unusual charges.  In addition, this press release includes the Adjusted EBITDA of the Company segments.  Schedules E, F and G include reconciliation of these non-GAAP measures to the comparable GAAP measures.

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 unusual 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 EBITDA is defined as the Company's adjusted earnings before interest, taxes, depreciation, amortization and equity compensation.  Adjusted EBITDA 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.

Schedule E – Fourth Quarter Unusual Charges

Unusual Charges






Stated in thousands, except per share amounts







Three Months Ended


Dec. 31, 2014


Income Before
Tax

Tax

Noncont.
Interest

Net Income

Diluted
EPS

Income attributable to TETRA stockholders, excluding unusual charges & Maritech

$14,204

$4,324

($2,832)

$7,048

$0.09

Transaction related costs

($1,687)

($597)

$550

($540)

($0.01)

Asset Impairment, including inventory adjustments

(37,140)

(12,784)

-

(24,356)

($0.31)

Goodwill Writeoff

(64,295)

(15,682)

-

(48,613)

($0.62)

Federal and State Deferred Tax Valuation Allowance and other related tax adj

-

63,172

-

(63,172)

($0.80)

Maritech loss

(30,948)

(10,832)

-

(20,116)

($0.25)

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

($119,867)

$27,601

($2,282)

($149,750)

($1.90)








 Dec. 31, 2013 


Income Before
Tax

 Tax 

 Noncont.
Interest 

Net Income

 Diluted
EPS 

Income attributable to TETRA stockholders, excluding unusual charges & Maritech

$12,463

$2,040

($1,208)

$9,215

$0.12

Asset Impairment, including inventory adjustments

(9,584)

(3,382)

-

(6,202)

($0.08)

Maritech loss

(20,286)

(7,100)

-

(13,186)

($0.17)

Other

(239)

(84)

-

(156)

($0.00)

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

($17,646)

($8,526)

($1,208)

($10,329)

($0.13)

Schedule F – Total Year Unusual Charges

Unusual Charges






Stated in thousands, except per share amounts






Twelve Months Ended


Dec. 31, 2014


Income Before
Tax

Tax

Noncont.
Interest

Net Income

Diluted
EPS

Income attributable to TETRA stockholders, excluding unusual charges & Maritech

$34,969

$6,326

($6,822)

$21,821

$0.27

Transaction related costs

($15,060)

($5,389)

$4,719

($4,952)

($0.06)

Asset Impairment, including inventory adjustments

(37,140)

(12,784)

-

(24,356)

($0.31)

Goodwill Writeoff

(64,295)

(15,682)

-

(48,613)

($0.63)

Workforce reduction

(784)

(290)

-

(494)

($0.01)

Federal and State Deferred Tax Valuation Allowance and other related tax adj

-

60,500

-

(60,500)

($0.76)

Maritech loss

(71,154)

(21,346)

-

(49,808)

($0.63)

Other

(4,406)

(1,630)

-

(2,776)

($0.03)

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

($157,871)

$9,704

($2,103)

($169,678)

($2.16)








 Dec. 31, 2013 


Income Before
Tax

 Tax 

 Noncont.
Interest 

Net Income

 Diluted
EPS 

Income attributable to TETRA stockholders, excluding unusual charges & Maritech

$76,437

$23,343

($3,172)

$49,923

$0.63

Other Acquisition Transaction Costs

(392)

(120)

-

(272)

($0.00)

Asset Impairment, including inventory adjustments

(9,584)

(2,927)

-

(6,657)

($0.08)

Workforce reduction

(1,984)

(606)

-

(1,378)

($0.02)

Other related tax adj

-

(544)

-

544

$0.01

Maritech loss

(64,365)

(22,528)

-

(41,837)

($0.53)

Other

(241)

(73)

-

(168)

($0.00)

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

($128)

($3,454)

($3,172)

$153

$0.00

Schedule G – Reconciliation to GAAP Financials

Reconciliation to GAAP Financials









Stated in thousands












Three Months Ended


Dec. 31, 2014


Net Income
(loss), As
Reported

Non
Controlling
Interest

Tax Provision

Income (loss)
Before Tax,
As Reported

Impairments
& Unusual
Charges

Adjusted
Income
Before Tax

Interest
Expense, net

Depreciation &
Amortization(1)

Stock Option
Expense

Adjusted
EBITDA












Fluids Division

$11,791

$0

$837

$12,628

$6,481

$19,109

($14)

$8,428

$0

$27,523

Production Testing Division

(64,834)

-

(1,713)

(66,547)

75,337

8,790

(2)

6,711

-

15,500

Compression Division

1,946

(2,282)

(989)

3,239

2,913

6,152

7,662

20,055

625

34,494

Offshore Services Segment

(20,715)

-

1

(20,714)

17,654

(3,059)

-

3,151

-

92

Eliminations & Other

3

-

-

3

-

3

-

(3)

-

0

Subtotal

(71,808)

(2,282)

(1,864)

(71,390)

102,385

30,995

7,647

38,343

625

77,609

Corporate & Other

(57,826)

-

40,297

(17,529)

737

(16,792)

5,158

288

1,341

(10,005)

Maritech

(20,116)

-

(10,832)

(30,948)

30,948

-

-

-

-

-

Total TETRA

(149,750)

(2,282)

27,601

(119,867)

134,070

14,204

12,805

38,631

1,966

67,605













Dec. 31, 2013


Net Income
(loss), As
Reported

Non Controlling
Interest

Tax Provision

Income (loss)
Before Tax,
As Reported

Impairments
& Unusual
Charges

Adjusted
Income
Before Tax

Interest
Expense, net

Depreciation &
Amortization(1)

Stock Option
Expense

Adjusted
EBITDA












Fluids Division

$13,557

$0

$178

$13,734

$0

$13,734

($26)

$5,906

$0

$19,614

Production Testing Division

2,063

-

(1,392)

671

-

671

9

6,821

-

7,501

Compression Division

5,379

(1,208)

(221)

6,366

323

6,689

166

3,664

430

10,949

Offshore Services Segment

(2,200)

-

6

(2,194)

9,291

7,097

27

3,486

-

10,610

Eliminations & Other

(105)

-

-

(105)

-

(105)

-

(1)

-

(106)

Subtotal

18,694

(1,208)

(1,430)

18,472

9,614

28,086

176

19,876

430

48,567

Corporate & Other

(15,837)

-

3

(15,833)

210

(15,623)

4,361

611

1,183

(9,468)

Maritech

(13,186)

-

(7,100)

(20,286)

20,286

-

-

-

-

-

Total TETRA

(10,329)

(1,208)

(8,526)

(17,646)

30,110

12,463

4,537

20,487

1,612

39,099

(1) Depreciation & Amortization excludes asset impairments which are included in "Impairments & Unusual Charges".
















Reconciliation to GAAP Financials









Stated in thousands












Twelve Months Ended


Dec. 31, 2014


Net Income
(loss), As
Reported

Non
Controlling
Interest

Tax Provision

Income (loss)
Before Tax,
As Reported

Impairments
& Unusual
Charges

Adjusted
Income
Before Tax

Interest
Expense, net

Depreciation &
Amortization(1)

Stock Option
Expense

Adjusted
EBITDA












Fluids Division

$59,744

$0

$4,961

$64,705

$4,229

$68,934

($250)

$31,924

$0

$100,608

Production Testing Division

(66,859)

-

691

(66,168)

77,095

10,927

(31)

28,842

-

39,737

Compression Division

6,411

(2,103)

(1,172)

7,342

17,022

24,363

12,964

41,097

1,544

79,968

Offshore Services Segment

(26,706)

-

455

(26,251)

19,784

(6,467)

36

13,176

-

6,746

Eliminations & Other

12

-

-

12

-

12

-

(12)

-

0

Subtotal

(27,398)

(2,103)

4,935

(20,360)

118,129

97,769

12,719

115,027

1,544

227,059

Corporate & Other

(96,030)

-

29,674

(66,356)

3,554

(62,803)

19,268

1,885

5,231

(36,419)

Maritech

(46,250)

-

(24,904)

(71,154)

71,154

-

-

-

-

-

Total TETRA

(169,678)

(2,103)

9,704

(157,871)

192,837

34,967

31,987

116,912

6,774

190,640













Dec. 31, 2013


Net Income
(loss), As
Reported

Non
Controlling
Interest

Tax Provision

Income (loss)
Before Tax,
As Reported

Impairments
& Unusual
Charges

Adjusted
Income
Before Tax

Interest
Expense, net

Depreciation &
Amortization(1)

Stock Option
Expense

Adjusted
EBITDA












Fluids Division

$66,976

$0

$2,461

$69,438

$424

$69,861

($148)

$22,508

$0

$92,221

Production Testing Division

14,250

-

(156)

14,093

676

14,769

(34)

27,262

-

41,997

Compression Division

14,770

(3,172)

2,258

20,199

925

21,124

469

14,511

1,459

37,563

Offshore Services Segment

22,864

-

6

22,870

9,629

32,499

109

14,254

-

46,862

Eliminations & Other

(105)

-

-

(105)

-

(105)

-

(1)

-

(106)

Subtotal

118,755

(3,172)

4,568

126,495

11,654

138,149

395

78,534

1,459

218,537

Corporate & Other

(76,766)

-

14,505

(62,258)

547

(61,712)

16,715

2,451

5,265

(37,280)

Maritech

(41,837)

-

(22,528)

(64,365)

64,365

-

-

-

-

-

Total TETRA

153

(3,172)

(3,454)

(128)

76,565

76,437

17,110

80,985

6,724

181,257

(1) Depreciation & Amortization excludes asset impairments which are included in "Impairments & Unusual Charges".





Schedule H – Free Cash Flow Reconciliation to GAAP

Free Cash Flow is a non-GAAP measure that the Company defines as cash from operations, excluding cash settlements of Maritech ARO, less capital expenditures.  Management uses this supplemental financial measure to:

  • Assess the Company's ability to retire debt;
  • evaluate the capacity of the business to further invest and grow;
  • to measure the performance of the Company as compared to its peer group of companies; and
  • to determine the ability to pay dividends to shareholders.

Free Cash Flow Reconciliation to GAAP Items






Stated in thousands







Three Months Ended


Twelve Months Ended


Dec. 31, 2014

Dec. 31, 2013


Dec. 31, 2014

Dec. 31, 2013

TTI Consolidated






Cash from Operations

$58,867

$5,749


$110,804

$49,656

ARO Settlements

23,010

14,743


63,319

114,109

Capital Expenditures

(37,011)

(28,267)


(116,461)

(100,025)

  Free Cash Flow before ARO Settlements

44,866

(7,775)


57,662

63,740







CSI Compressco LP






Cash from Operations

15,636

6,163


46,977

29,135

Capital Expenditures

(22,051)

(4,599)


(51,694)

(24,574)

  Free Cash Flow

(6,415)

1,564


(4,717)

4,561







TTI Only






Cash from Operations

43,231

(414)


63,827

20,521

ARO Settlements

23,010

14,743


63,319

114,109

Capital Expenditures

(14,960)

(23,668)


(64,767)

(75,451)

  Free Cash Flow before ARO Settlements

51,281

(9,339)


62,379

59,179







Distributions from CSI Compressco LP

5,887

5,582


23,526

22,123

  Free Cash Flow before ARO Settlements and after 






  Distributions from CSI Compressco LP

57,168

(3,757)


85,905

81,302

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.

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 expected results of operational business segments for 2015, anticipated benefits from CSI Compressco following the CSI acquisition, including increases in 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, 2013, 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.

TTLOGO

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tetra-technologies-inc-announces-fourth-quarter-and-full-year-2014-results-300042703.html

SOURCE TETRA Technologies, Inc.

Copyright 2015 PR Newswire

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