THE WOODLANDS, Texas,
March 1, 2017 /PRNewswire/
-- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:
TTI) today announced a consolidated fourth quarter 2016 net loss
per share attributable to TETRA stockholders of $0.33, which compares to a net loss per share of
$0.16 in the third quarter of 2016
and net loss per share of $1.84 in
the fourth quarter of 2015.
TETRA's adjusted per share results attributable to TETRA
stockholders for the fourth quarter of 2016, excluding Maritech and
special items, were a loss of $0.16,
which compares to adjusted loss per share of $0.05 in the third quarter of 2016 and adjusted
earnings per share of $0.01 in the
fourth quarter of 2015, also excluding Maritech and special items.
Fourth quarter 2016 revenue of $173
million decreased 2% from the third quarter of 2016.
Compared to the fourth quarter of 2015 revenue declined 33%
primarily as a result of reduced activity levels in the
Gulf of Mexico and the lower rig
count. (Adjusted diluted earnings/(loss) per share is a
non-GAAP financial measure that is reconciled to the nearest GAAP
measure in the accompanying schedules.)
Fourth Quarter
2016 Results
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
(In Thousands, Except
per Share Amounts)
|
Revenue
|
$
|
173,222
|
|
|
$
|
176,553
|
|
|
$
|
257,590
|
|
Net income (loss)
attributable to TETRA stockholders
|
(31,554)
|
|
|
(15,009)
|
|
|
(146,415)
|
|
Adjusted
EBITDA(1)
|
14,946
|
|
|
36,927
|
|
|
55,486
|
|
EPS attributable to
TETRA stockholders
|
(0.33)
|
|
|
(0.16)
|
|
|
(1.84)
|
|
Adjusted diluted EPS
attributable to TETRA stockholders(1)
|
(0.16)
|
|
|
(0.05)
|
|
|
0.01
|
|
Consolidated net cash
provided (used) by operating activities
|
28,316
|
|
|
(7,933)
|
|
|
77,724
|
|
TETRA only adjusted
free cash flow(1)
|
$
|
16,028
|
|
|
$
|
(13,924)
|
|
|
$
|
52,448
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-GAAP financial
measures are reconciled to GAAP in the schedules below.
|
Highlights of the 2016 fourth quarter include:
- Fluids revenue increased sequentially by 2% despite the
deferral of a significant Gulf of Mexico TETRA CS Neptune®
completion fluids project from the fourth quarter to the first half
of 2017. The sequential increase was driven by strong U.S.
onshore activity and improved international offshore
volumes.
- Compression activity is reflecting signs of a recovery with
quarter end utilization increasing sequentially by 120 basis points
to 76.4%, operating horsepower in service increasing sequentially
by 3,368 horsepower, and with the receipt of $20 million in orders for new equipment, the
highest since late 2014.
- Compression results were negatively impacted by $2.6 million of cost overruns on a third party
equipment project that was completed in the fourth quarter, the
first such cost overrun for Compression in recent years.
- Including CSI Compressco, the carrying value of consolidated
long-term debt at the end of 2016 was $624
million compared to $738
million as of September 30,
2016. In December, TETRA completed a $115 million equity offering to reduce debt.
TETRA's net debt was reduced from $233
million to $111 million from
the equity proceeds and cash from operating activities over the
same time period. (See Schedule H for the reconciliation of
TETRA net debt to GAAP.)
- Consolidated net cash provided by operating activities for the
fourth quarter of 2016 was $28
million and for full year 2016 was $54 million. TETRA only adjusted free cash
flow in the fourth quarter was $16
million. TETRA only adjusted free cash flow for the
full year was $12 million, at the
upper end of the $5 million to $15
million guidance previously provided. (See Schedule G
for the reconciliation of TETRA only free cash flow to GAAP.)
2016
Results
|
|
Twelve months
ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
(In Thousands, Except
per Share Amounts)
|
Revenue
|
$
|
694,764
|
|
|
$
|
1,130,145
|
|
Net income (loss)
attributable to TETRA stockholders
|
(161,462)
|
|
|
(126,183)
|
|
Adjusted
EBITDA(1)
|
104,243
|
|
|
257,740
|
|
EPS attributable to
TETRA stockholders
|
(1.85)
|
|
|
(1.59)
|
|
Adjusted diluted EPS
attributable to TETRA stockholders(1)
|
(0.60)
|
|
|
0.32
|
|
Consolidated net cash
provided by operating activities
|
53,980
|
|
|
195,951
|
|
TETRA only adjusted
free cash flow(1)
|
$
|
11,821
|
|
|
$
|
119,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-GAAP financial
measures are reconciled to GAAP in the schedules below.
|
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 strong sequential quarterly improvement in the Fluids
Division's water management operations, improving utilization of
the compression services fleet, particularly at the higher
horsepower equipment size coupled with related favorable pricing
trends and higher orders for new compression equipment. Based
on feedback from our customers, we anticipate that a recovery in
the deep water Gulf of Mexico will
lag the onshore recovery. We are entering 2017 with one
significant TETRA CS Neptune fluid project scheduled for the first
half of 2017 and expect to complete another such project that was
started in 2016.
"Fluids Division revenue for the fourth quarter of 2016 was
$64 million compared to $62.6 million in the third quarter of 2016. The
strong sequential improvement in U.S. onshore activity, the second
consecutive strong quarterly sequential improvement, was driven by
organic water management and onshore fluids distribution facilities
investments, in addition to stronger international offshore fluids
activity. This improvement offset the lack of a TETRA CS
Neptune fluid project that was expected in the fourth quarter but
was deferred into the first half of 2017. The improving
activity levels in the U.S. onshore water management business are
occurring throughout several of the shale basins, but are led
primarily by the Permian Basin and MidCon markets. Fluids
Division income before taxes was $1.5
million while adjusted EBITDA was $8.6 million. Income before taxes as a
percentage of revenue was 2.3% while adjusted EBITDA as a
percentage of revenues was 13.4%, without the benefit of a TETRA CS
Neptune fluids project.
"Fourth quarter 2016 Compression Division revenue increased
sequentially 17% to $83 million,
mainly as a result of higher equipment sales. Compression Division
income before taxes was a loss of $11.8
million while adjusted EBITDA was $17.7 million, which was negatively impacted by
$2.6 million of unusual costs related
to equipment sales on a third party equipment project and a
$0.7 million inventory
adjustment. Quarter end utilization was 76.4%, compared to
75.2% in the third quarter, and reflected the first sequential
improvement in utilization since the first quarter of 2015.
Large horsepower equipment (greater than 800 HP) utilization
increased from 84.4% in the third quarter to 87.5% in the fourth
quarter. New equipment orders were $20
million, the highest quarterly new equipment orders received
since late 2014, and we believe the level of orders reflect signs
of a recovering compression market. On January 20, 2017, CSI Compressco LP declared cash
distributions attributable to the fourth quarter of 2016 of
$0.3775 per common unit, unchanged
from the distribution attributable to the third quarter of 2016.
This distribution resulted in a coverage ratio of 0.68x for the
fourth quarter of 2016.
"Fourth quarter 2016 revenue for the Production Testing Division
improved sequentially by 2% to $15.3
million, led by stronger activity levels in Canada and Saudi
Arabia. Production Testing loss before taxes was
$7.5 million while adjusted EBITDA
was a loss of $0.5 million.
Going into 2017 we expect to see additional improvements in
activity in North America and
internationally and hope to be able to better manage pricing levels
in the second half of 2017.
"Our Offshore Service segment reported revenue of $12 million. Loss before taxes was
$6.2 million while adjusted EBITDA
was a loss of $2.3 million,
reflecting the seasonal fourth quarter ramp down of activity.
We are currently bidding on many decommissioning projects for the
upcoming season and believe the preliminary customer inquiries and
the committed backlog trends for 2017 are encouraging."
Free Cash Flow and Balance Sheet
TETRA only adjusted free cash flow in the fourth quarter of 2016
was $16 million, reflecting the
seasonality in working capital. Consolidated net cash
provided by operating activities for 2016 was $54 million. Total year TETRA only adjusted
free cash flow, excluding Maritech and reflecting the distributions
received from CSI Compressco, was $12
million and was at the upper end of our previously
communicated guidance of $5 million to $15
million. TETRA only days sales outstanding (excluding
CSI Compressco LP) improved from 73 days at the end of the third
quarter to 70 days at the end of December despite the continued
financial challenges from our customers and their attempts to defer
payments to manage their working capital.
During the fourth quarter, TETRA completed an equity offering
that resulted in gross proceeds of $115
million. As a result of this equity offering and from
the free cash flow generated during the quarter, TETRA only
outstanding net debt was reduced from $233
million to $111 million.
Additionally, during December, 2016 TETRA amended the leverage
covenant on its revolving credit facility from 4.0X to 5.0X through
December 31, 2017.
Special items and Maritech
Maritech reported pre-tax income of $2.8
million in the fourth quarter of 2016 due to the receipt of
escrowed funds held from prior sales of properties with abandonment
obligations.
Consolidated special items incurred in the fourth quarter were
$8.7 million, of which only
$1.5 million were cash charges.
Special items include:
- $1.8 million net gain primarily
reflecting a fair value adjustment of the CSI Compressco Series A
Convertible Preferred units
- $1.0 million of expenses related
to the December TETRA equity issuance
- $2.1 million charge reflecting a
fair value adjustment of the outstanding warrants
- $7.2 million of asset impairments
related to damaged CSI Compressco compressor equipment, certain
Offshore Services cutting tools and obsolete assets in Production
Testing
- $0.3 million net gain from other
debt related items
- $0.5 million of other special
charges
Financial Guidance
Based on TETRA's anticipation of a continued recovery in the
U.S. Onshore markets and a delayed recovery in the offshore
markets, we expect total year TETRA only free cash flow to improve
from $12 million in 2016 to between
$30 million and $50 million in
2017.
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.
On December 16, 2016 an
arbitration panel in Houston,
Texas issued a ruling in favor of TETRA for TETRA's claims
against an engineering company related to TETRA's El Dorado, Arkansas calcium chloride
manufacturing facility. Cash proceeds of $12.8 million for the ruling were received by
TETRA in January, 2017 and will be reflected in TETRA's first
quarter 2017 results.
Conference Call
TETRA will host a conference call to discuss these results
today, March 1 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.
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 CSI Compressco in
2014, 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
Compressco 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, 2015 (and
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2016 when it is filed on
or about the date hereof), 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
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In Thousands, Except
per Share Amounts)
|
Revenues
|
$
|
173,222
|
|
|
$
|
257,590
|
|
|
$
|
694,764
|
|
|
$
|
1,130,145
|
|
|
|
|
|
|
|
|
|
Cost of sales,
services, and rentals
|
133,598
|
|
|
171,981
|
|
|
495,580
|
|
|
741,736
|
|
Depreciation,
amortization, and accretion
|
30,598
|
|
|
38,696
|
|
|
129,595
|
|
|
155,015
|
|
Impairments of
long-lived assets
|
7,245
|
|
|
44,158
|
|
|
18,172
|
|
|
44,158
|
|
Total cost of
revenues
|
171,441
|
|
|
254,835
|
|
|
643,347
|
|
|
940,909
|
|
Gross profit
|
1,781
|
|
|
2,755
|
|
|
51,417
|
|
|
189,236
|
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
26,583
|
|
|
44,161
|
|
|
115,964
|
|
|
157,812
|
|
Goodwill
impairment
|
—
|
|
|
177,006
|
|
|
106,205
|
|
|
177,006
|
|
Interest expense,
net
|
15,327
|
|
|
14,244
|
|
|
58,626
|
|
|
54,475
|
|
Warrants fair value
adjustment
|
2,106
|
|
|
—
|
|
|
2,106
|
|
|
—
|
|
CCLP Series A
Preferred fair value adjustment
|
(1,891)
|
|
|
—
|
|
|
4,404
|
|
|
—
|
|
Other (income)
expense, net
|
(2,433)
|
|
|
583
|
|
|
1,202
|
|
|
1,706
|
|
Income (loss) before
taxes
|
(37,911)
|
|
|
(233,239)
|
|
|
(237,090)
|
|
|
(201,763)
|
|
Provision (benefit)
for income taxes
|
499
|
|
|
(1,293)
|
|
|
2,303
|
|
|
7,704
|
|
Net income
(loss)
|
(38,410)
|
|
|
(231,946)
|
|
|
(239,393)
|
|
|
(209,467)
|
|
Net (income) loss
attributable to noncontrolling interest
|
6,856
|
|
|
85,531
|
|
|
77,931
|
|
|
83,284
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
(31,554)
|
|
|
$
|
(146,415)
|
|
|
$
|
(161,462)
|
|
|
$
|
(126,183)
|
|
|
|
|
|
|
|
|
|
Basic per share
information:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
(0.33)
|
|
|
$
|
(1.84)
|
|
|
$
|
(1.85)
|
|
|
$
|
(1.59)
|
|
Weighted average shares
outstanding
|
95,992
|
|
|
79,380
|
|
|
87,286
|
|
|
79,169
|
|
|
|
|
|
|
|
|
|
Diluted per share
information:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to TETRA stockholders
|
$
|
(0.33)
|
|
|
$
|
(1.84)
|
|
|
$
|
(1.85)
|
|
|
$
|
(1.59)
|
|
Weighted average shares
outstanding
|
95,992
|
|
|
79,380
|
|
|
87,286
|
|
|
79,169
|
|
Schedule B:
Financial Results By Segment (Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
Thousands)
|
Revenues by
segment:
|
|
|
|
|
|
|
|
Fluids
Division
|
$
|
64,039
|
|
|
$
|
91,194
|
|
|
$
|
246,595
|
|
|
$
|
424,044
|
|
Production Testing
Division
|
15,298
|
|
|
33,017
|
|
|
63,618
|
|
|
133,904
|
|
Compression
Division
|
82,870
|
|
|
99,369
|
|
|
311,374
|
|
|
457,639
|
|
Offshore
Division
|
|
|
|
|
|
|
|
Offshore
Services
|
11,921
|
|
|
36,798
|
|
|
77,525
|
|
|
122,194
|
|
Maritech
|
176
|
|
|
63
|
|
|
751
|
|
|
2,438
|
|
Intersegment
eliminations
|
(90)
|
|
|
(1,108)
|
|
|
(903)
|
|
|
(5,128)
|
|
Offshore Division
total
|
12,007
|
|
|
35,753
|
|
|
77,373
|
|
|
119,504
|
|
Eliminations and
other
|
(992)
|
|
|
(1,743)
|
|
|
(4,196)
|
|
|
(4,946)
|
|
Total
revenues
|
$
|
173,222
|
|
|
$
|
257,590
|
|
|
$
|
694,764
|
|
|
$
|
1,130,145
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss) by segment:
|
|
|
|
|
|
|
|
Fluids
Division
|
$
|
7,443
|
|
|
$
|
4,545
|
|
|
$
|
36,888
|
|
|
$
|
111,969
|
|
Production Testing
Division
|
(5,263)
|
|
|
(10,749)
|
|
|
(13,317)
|
|
|
(3,046)
|
|
Compression
Division
|
4,646
|
|
|
7,035
|
|
|
37,681
|
|
|
73,135
|
|
Offshore
Division
|
|
|
|
|
|
|
|
Offshore
Services
|
(4,811)
|
|
|
4,585
|
|
|
(5,574)
|
|
|
10,602
|
|
Maritech
|
(138)
|
|
|
(2,493)
|
|
|
(3,847)
|
|
|
(2,523)
|
|
Intersegment
eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Offshore Division
total
|
(4,949)
|
|
|
2,092
|
|
|
(9,421)
|
|
|
8,079
|
|
Corporate overhead and
eliminations
|
(96)
|
|
|
(168)
|
|
|
(414)
|
|
|
(901)
|
|
Total gross
profit
|
$
|
1,781
|
|
|
$
|
2,755
|
|
|
$
|
51,417
|
|
|
$
|
189,236
|
|
|
|
|
|
|
|
|
|
Income (loss)
before taxes by segment:
|
|
|
|
|
|
|
|
Fluids
Division
|
$
|
1,499
|
|
|
$
|
(2,746)
|
|
|
$
|
10,430
|
|
|
$
|
80,789
|
|
Production Testing
Division
|
(7,547)
|
|
|
(50,759)
|
|
|
(35,471)
|
|
|
(55,720)
|
|
Compression
Division
|
(11,821)
|
|
|
(152,772)
|
|
|
(136,327)
|
|
|
(146,798)
|
|
Offshore
Division
|
|
|
|
|
|
|
|
Offshore
Services
|
(6,233)
|
|
|
1,782
|
|
|
(12,025)
|
|
|
(195)
|
|
Maritech
|
2,823
|
|
|
(2,846)
|
|
|
(1,841)
|
|
|
(3,833)
|
|
Intersegment
eliminations
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
Offshore Division
total
|
(3,410)
|
|
|
(1,064)
|
|
|
(13,866)
|
|
|
(4,028)
|
|
Corporate overhead and
eliminations
|
(16,632)
|
|
|
(25,898)
|
|
|
(61,856)
|
|
|
(76,006)
|
|
Total income (loss)
before taxes
|
$
|
(37,911)
|
|
|
$
|
(233,239)
|
|
|
$
|
(237,090)
|
|
|
$
|
(201,763)
|
|
|
Please note that the
above results by segment include special items. Please see Schedule
E for details of those special items.
|
Schedule C:
Consolidated Balance Sheet (Unaudited)
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
(In
Thousands)
|
Balance
Sheet:
|
|
|
|
Cash (excluding
restricted cash)
|
$
|
29,840
|
|
|
$
|
23,057
|
|
Accounts receivable,
net
|
114,284
|
|
|
184,172
|
|
Inventories
|
106,546
|
|
|
117,009
|
|
Other current
assets
|
25,121
|
|
|
29,791
|
|
PP&E,
net
|
945,451
|
|
|
1,048,004
|
|
Other
assets
|
94,298
|
|
|
234,169
|
|
Total
assets
|
$
|
1,315,540
|
|
|
$
|
1,636,202
|
|
|
|
|
|
Current portion of
decommissioning liabilities
|
$
|
1,451
|
|
|
$
|
14,570
|
|
Other current
liabilities
|
115,434
|
|
|
170,676
|
|
Long-term debt
(1)
|
623,730
|
|
|
853,228
|
|
Long-term portion of
decommissioning liabilities
|
54,027
|
|
|
42,879
|
|
CCLP Series A
Preferred
|
77,062
|
|
|
—
|
|
Warrant
liability
|
18,503
|
|
|
—
|
|
Other long-term
liabilities
|
24,867
|
|
|
40,669
|
|
Equity
|
400,466
|
|
|
514,180
|
|
Total liabilities and
equity
|
$
|
1,315,540
|
|
|
$
|
1,636,202
|
|
|
|
|
|
|
|
|
|
|
(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
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. Amounts presented are net of deferred financing
costs.
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
(In
Thousands)
|
TETRA
|
|
|
|
Bank revolving line
of credit facility
|
$
|
3,229
|
|
|
$
|
21,572
|
|
TETRA Senior Notes at
various rates
|
116,411
|
|
|
264,998
|
|
Other debt
|
—
|
|
|
50
|
|
TETRA total
debt
|
119,640
|
|
|
286,620
|
|
Less current
portion
|
—
|
|
|
(50)
|
|
TETRA total
long-term debt
|
$
|
119,640
|
|
|
$
|
286,570
|
|
|
|
|
|
CSI Compressco
LP
|
|
|
|
CCLP Bank Credit
Facility
|
$
|
217,467
|
|
|
$
|
229,555
|
|
CCLP 7.25% Senior
Notes
|
286,623
|
|
|
337,103
|
|
CCLP total
debt
|
504,090
|
|
|
566,658
|
|
Less current
portion
|
—
|
|
|
—
|
|
CCLP total
long-term debt
|
$
|
504,090
|
|
|
$
|
566,658
|
|
Consolidated total
long-term debt
|
$
|
623,730
|
|
|
$
|
853,228
|
|
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 items; 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 items 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 items, 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 a non-GAAP measure that
the Company defines as cash from TETRA's operations, excluding cash
settlements of Maritech AROs, less capital expenditures net of
sales proceeds, 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
|
|
December 31,
2016
|
|
Income
(Loss) Before
Tax
|
|
Provision
(Benefit) for
Tax
|
|
Noncont.
Interest
|
|
Net Income
Attributable to
TETRA
Stockholders
|
|
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,
including inventory adjustments
|
(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)
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
Income
(Loss) Before
Tax
|
Provision
(Benefit) for
Tax
|
Noncont.
Interest
|
Net Income
Attributable to
TETRA
Stockholders
|
EPS
|
|
|
|
|
|
|
|
(In Thousands, Except
per Share Amounts)
|
|
|
Income (loss)
attributable to TETRA stockholders, excluding unusual charges and
Maritech
|
$
|
658
|
|
$
|
199
|
|
$
|
(491)
|
|
$
|
950
|
|
$
|
0.01
|
|
Asset impairment,
including inventory adjustments
|
(44,182)
|
|
(13,255)
|
|
(6,612)
|
|
(24,315)
|
|
(0.30)
|
|
Goodwill
writeoff
|
(177,006)
|
|
(53,102)
|
|
(78,151)
|
|
(45,753)
|
|
(0.57)
|
|
Effect of deferred
tax valuation allowance and other related tax adj.
|
—
|
|
67,824
|
|
—
|
|
(67,824)
|
|
(0.84)
|
|
Allowance for
doubtful accounts for significant bankruptcies
|
(9,862)
|
|
(2,959)
|
|
(277)
|
|
(6,626)
|
|
(0.10)
|
|
Maritech profit
(loss)
|
(2,847)
|
|
—
|
|
—
|
|
(2,847)
|
|
(0.04)
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
$
|
(233,239)
|
|
$
|
(1,293)
|
|
$
|
(85,531)
|
|
$
|
(146,415)
|
|
$
|
(1.84)
|
|
|
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
Income
(Loss)
Before
Tax
|
Provision
(Benefit) for
Tax
|
Noncont.
Interest
|
Net Income
Attributable to
TETRA
Stockholders
|
EPS
|
|
(In Thousands, Except
per Share Amounts)
|
Income (loss)
attributable to TETRA stockholders, excluding unusual charges and
Maritech
|
$
|
(94,831)
|
|
$
|
(28,447)
|
|
$
|
(14,433)
|
|
$
|
(51,951)
|
|
$
|
(0.60)
|
|
Asset impairments,
including inventory adjustments
|
(18,280)
|
|
(5,484)
|
|
(5,838)
|
|
(6,958)
|
|
(0.08)
|
|
Non-Maritech ARO
adjustment
|
(282)
|
|
(85)
|
|
—
|
|
(197)
|
|
0.00
|
|
Severance
expense
|
(1,737)
|
|
(521)
|
|
(341)
|
|
(875)
|
|
(0.01)
|
|
Goodwill
writeoff
|
(106,205)
|
|
(31,862)
|
|
(52,412)
|
|
(21,931)
|
|
(0.25)
|
|
Debt refinancing cost,
net
|
(1,839)
|
|
(552)
|
|
159
|
|
(1,446)
|
|
(0.02)
|
|
Convertible Series A
Preferred offering cost and fair value adjustments
|
(7,534)
|
|
(2,260)
|
|
(4,650)
|
|
(624)
|
|
(0.01)
|
|
Common stock warrants
issuance cost and fair value adjustments
|
(3,061)
|
|
(918)
|
|
—
|
|
(2,143)
|
|
(0.02)
|
|
Allowance for doubtful
accounts for significant bankruptcies
|
(1,480)
|
|
(444)
|
|
(416)
|
|
(620)
|
|
(0.01)
|
|
Effect of deferred tax
valuation allowance and other related tax adj.
|
—
|
|
72,876
|
|
—
|
|
(72,876)
|
|
(0.83)
|
|
Maritech profit
(loss)
|
(1,841)
|
|
—
|
|
—
|
|
(1,841)
|
|
(0.02)
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
$
|
(237,090)
|
|
$
|
2,303
|
|
$
|
(77,931)
|
|
$
|
(161,462)
|
|
$
|
(1.85)
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
Income
(Loss)
Before Tax
|
Provision
(Benefit) for
Tax
|
Noncont.
Interest
|
Net Income
Attributable to
TETRA
Stockholders
|
EPS
|
|
(In Thousands, Except
per Share Amounts)
|
Income attributable
to TETRA stockholders, excluding unusual charges &
Maritech
|
$
|
39,513
|
|
$
|
11,802
|
|
$
|
1,962
|
|
$
|
25,749
|
|
$
|
0.32
|
|
Transaction related
costs
|
(208)
|
|
(62)
|
|
(73)
|
|
(73)
|
|
0.00
|
|
Asset Impairment,
including inventory adjustments
|
(44,158)
|
|
(13,247)
|
|
(6,612)
|
|
(24,299)
|
|
(0.30)
|
|
Goodwill
writeoff
|
(177,006)
|
|
(53,102)
|
|
(78,193)
|
|
(45,711)
|
|
(0.57)
|
|
Effect of Deferred
Tax Valuation Allowance and other related tax adj
|
—
|
|
67,082
|
|
—
|
|
(67,082)
|
|
(0.85)
|
|
Allowance for
doubtful accounts for significant bankruptcies
|
(16,071)
|
|
(4,769)
|
|
(368)
|
|
(10,934)
|
|
(0.14)
|
|
Maritech profit
(loss)
|
(3,833)
|
|
—
|
|
—
|
|
(3,833)
|
|
(0.05)
|
|
Net Income (loss)
attributable to TETRA stockholders, as reported
|
$
|
(201,763)
|
|
$
|
7,704
|
|
$
|
(83,284)
|
|
$
|
(126,183)
|
|
$
|
(1.59)
|
|
|
|
|
|
|
|
Schedule F:
Non-GAAP Reconciliation to GAAP Financials
|
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
Net Income
(Loss), as
reported
|
Tax
Provision
|
Income
(Loss)
Before
Tax, as
Reported
|
Impairments
& Special
Charges
|
Adjusted
Income
(Loss)
Before
Tax
|
Adjusted
Interest
Expense,
Net(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
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
|
Adjusted
Equity Comp.
Expense (4)
|
Omnibus
Equity
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
Fluids
Division
|
|
|
|
|
|
|
$
|
(2,745)
|
|
$
|
19,958
|
|
$
|
17,213
|
|
$
|
(158)
|
|
$
|
8,859
|
|
$
|
—
|
|
$
|
—
|
|
$
|
25,914
|
Production Testing
Division
|
|
|
|
|
(50,759)
|
|
49,893
|
|
(866)
|
|
(98)
|
|
5,664
|
|
—
|
|
—
|
|
4,700
|
Compression
Division
|
|
|
|
|
(152,772)
|
|
151,896
|
|
(876)
|
|
8,806
|
|
20,643
|
|
505
|
|
—
|
|
29,078
|
Offshore Services
Segment
|
|
|
|
|
1,782
|
|
795
|
|
2,577
|
|
—
|
|
2,928
|
|
—
|
|
—
|
|
5,505
|
Eliminations and
other
|
|
|
|
|
4
|
|
—
|
|
4
|
|
—
|
|
(4)
|
|
—
|
|
—
|
|
—
|
Subtotal
|
|
|
|
|
(204,490)
|
|
222,542
|
|
18,052
|
|
8,550
|
|
38,090
|
|
505
|
|
—
|
|
65,197
|
Corporate and
other
|
|
|
|
|
(25,902)
|
|
8,508
|
|
(17,394)
|
|
5,691
|
|
171
|
|
1,821
|
|
—
|
|
(9,711)
|
TETRA excluding
Maritech
|
|
|
|
|
(230,392)
|
|
231,050
|
|
658
|
|
14,241
|
|
38,261
|
|
—
|
|
—
|
|
55,486
|
Maritech
|
|
|
|
|
(2,847)
|
|
—
|
|
(2,847)
|
|
3
|
|
435
|
|
—
|
|
—
|
|
(2,409)
|
Total
TETRA
|
$
|
(231,946)
|
|
$
|
(1,293)
|
|
$
|
(233,239)
|
|
$
|
231,050
|
|
$
|
(2,189)
|
|
$
|
14,244
|
|
$
|
38,696
|
|
$
|
2,326
|
|
$
|
—
|
|
$
|
53,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 December
31, 2016 excludes $0.3 million of certain accretion expense which
is included as a special charge.
|
|
(3)
|
Reimbursement from
CCLP under Omnibus Agreement for 2016 Q4 that was settled with
common units.
|
|
(4)
|
Adjusted equity
compensation expense, net for the three month period ended December
31, 2015, excludes $6.7 million one-time adjustment
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
Net Income (Loss), as
reported
|
Tax
Provision
|
Income (Loss) Before
Tax, as Reported
|
Impairments &
Special Charges
|
Adjusted Income
(Loss) Before Tax
|
Adjusted Interest
Expense, Net(1)
|
Adjusted
Depreciation &
Amortization(2)
|
Equity Comp.
Expense
|
Omnibus Equity
(3)
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
|
Fluids
Division
|
|
|
|
|
|
|
$
|
10,430
|
|
$
|
1,950
|
|
$
|
12,380
|
|
$
|
(4)
|
|
$
|
28,056
|
|
$
|
—
|
|
$
|
—
|
|
$
|
40,432
|
|
Production Testing
Division
|
|
|
|
|
(35,471)
|
|
20,826
|
|
(14,645)
|
|
(594)
|
|
16,238
|
|
—
|
|
—
|
|
999
|
|
Compression
Division
|
|
|
|
|
(136,327)
|
|
111,656
|
|
(24,671)
|
|
37,016
|
|
72,159
|
|
3,028
|
|
1,576
|
|
89,108
|
|
Offshore Services
Segment
|
|
|
|
|
(12,025)
|
|
1,283
|
|
(10,742)
|
|
—
|
|
11,086
|
|
—
|
|
—
|
|
344
|
|
Eliminations and
other
|
|
|
|
|
7
|
|
—
|
|
7
|
|
—
|
|
(17)
|
|
—
|
|
—
|
|
(10)
|
|
Subtotal
|
|
|
|
|
(173,386)
|
|
135,715
|
|
(37,671)
|
|
36,418
|
|
127,522
|
|
3,028
|
|
1,576
|
|
130,873
|
|
Corporate and
other
|
|
|
|
|
(61,863)
|
|
4,706
|
|
(57,157)
|
|
20,955
|
|
429
|
|
10,719
|
|
(1,576)
|
|
(26,630)
|
|
TETRA excluding
Maritech
|
|
|
|
|
(235,249)
|
|
140,421
|
|
(94,828)
|
|
57,373
|
|
127,951
|
|
13,747
|
|
—
|
|
104,243
|
|
Maritech
|
|
|
|
|
(1,841)
|
|
—
|
|
(1,841)
|
|
12
|
|
1,362
|
|
—
|
|
—
|
|
(467)
|
|
Total
TETRA
|
$
|
(239,393)
|
|
$
|
2,303
|
|
$
|
(237,090)
|
|
$
|
140,421
|
|
$
|
(96,669)
|
|
$
|
57,385
|
|
$
|
129,313
|
|
$
|
13,747
|
|
$
|
—
|
|
$
|
103,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
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
|
Adjusted Equity Comp.
Expense (4)
|
Omnibus
Equity
|
Adjusted
EBITDA
|
|
(In
Thousands)
|
|
Fluids
Division
|
|
|
|
|
|
|
$
|
80,789
|
|
$
|
20,599
|
|
$
|
101,388
|
|
$
|
(258)
|
|
$
|
35,125
|
|
$
|
—
|
|
$
|
—
|
|
$
|
136,255
|
|
Production Testing
Division
|
|
|
|
|
(55,720)
|
|
54,529
|
|
(1,191)
|
|
(89)
|
|
24,094
|
|
—
|
|
—
|
|
22,814
|
|
Compression
Division
|
|
|
|
|
(146,798)
|
|
152,390
|
|
5,592
|
|
34,964
|
|
82,024
|
|
2,164
|
|
—
|
|
124,744
|
|
Offshore Services
Segment
|
|
|
|
|
(195)
|
|
1,344
|
|
1,149
|
|
—
|
|
11,500
|
|
—
|
|
—
|
|
12,649
|
|
Eliminations and
other
|
|
|
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
(14)
|
|
—
|
|
—
|
|
(15)
|
|
Subtotal
|
|
|
|
|
(121,925)
|
|
228,862
|
|
106,937
|
|
34,617
|
|
152,729
|
|
2,164
|
|
—
|
|
296,447
|
|
Corporate and
other
|
|
|
|
|
(76,005)
|
|
8,580
|
|
(67,425)
|
|
19,829
|
|
911
|
|
7,978
|
|
—
|
|
(38,707)
|
|
TETRA excluding
Maritech
|
|
|
|
|
(197,930)
|
|
237,442
|
|
39,512
|
|
54,446
|
|
153,640
|
|
10,142
|
|
—
|
|
257,740
|
|
Maritech
|
|
|
|
|
(3,833)
|
|
—
|
|
(3,833)
|
|
29
|
|
1,375
|
|
—
|
|
—
|
|
(2,429)
|
|
Total
TETRA
|
$
|
(209,467)
|
|
$
|
7,704
|
|
$
|
(201,763)
|
|
$
|
237,442
|
|
$
|
35,679
|
|
$
|
54,475
|
|
$
|
155,015
|
|
$
|
10,142
|
|
$
|
—
|
|
$
|
255,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted interest
expense, net, for the twelve month period ended December 31, 2016,
excludes $1.2 million of certain interest expense which is included
as a special charge.
|
(2)
|
Adjusted depreciation
& amortization, net, for the twelve month period ended December
31, 2016 excludes $0.3 million of certain accretion expense which
is included as a special charge.
|
(3)
|
Reimbursement from
CCLP under Omnibus Agreement for 2016 Q4 that was settled with
common units.
|
(4)
|
Adjusted equity
compensation expense, net for the three month period ended December
31, 2015, excludes $6.7 million one-time adjustment
|
Schedule G:
Non-GAAP Reconciliation to TETRA Only Adjusted Free Cash
Flow
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
(In
Thousands)
|
Consolidated
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
28,316
|
|
|
$
|
77,724
|
|
|
$
|
53,980
|
|
|
$
|
195,951
|
|
ARO
settlements
|
271
|
|
|
5,109
|
|
|
4,040
|
|
|
10,305
|
|
Capital expenditures,
net of sales proceeds
|
(5,268)
|
|
|
(22,221)
|
|
|
(17,712)
|
|
|
(113,462)
|
|
Consolidated adjusted
free cash flow
|
23,319
|
|
|
60,612
|
|
|
40,308
|
|
|
92,794
|
|
|
|
|
|
|
|
|
|
CSI Compressco
LP
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
15,922
|
|
|
38,351
|
|
|
61,444
|
|
|
101,893
|
|
Capital expenditures,
net of sales proceeds
|
(3,057)
|
|
|
(19,274)
|
|
|
(10,659)
|
|
|
(95,272)
|
|
CSI Compressco free
cash flow
|
12,865
|
|
|
19,077
|
|
|
50,785
|
|
|
6,621
|
|
|
|
|
|
|
|
|
|
TETRA
Only
|
|
|
|
|
|
|
|
Cash from operating
activities
|
12,394
|
|
|
39,373
|
|
|
(7,464)
|
|
|
94,058
|
|
ARO
settlements
|
271
|
|
|
5,109
|
|
|
4,040
|
|
|
10,305
|
|
Capital expenditures,
net of sales proceeds
|
(2,211)
|
|
|
(2,947)
|
|
|
(7,053)
|
|
|
(18,190)
|
|
Free cash flow before
ARO settlements
|
10,454
|
|
|
41,535
|
|
|
(10,477)
|
|
|
86,173
|
|
Distributions from CSI
Compressco LP
|
5,574
|
|
|
7,877
|
|
|
22,298
|
|
|
30,544
|
|
Adjusted free cash
flow
|
16,028
|
|
|
49,412
|
|
|
11,821
|
|
|
116,717
|
|
Debt restructuring
cost
|
—
|
|
|
3,036
|
|
|
—
|
|
|
3,036
|
|
|
16,028
|
|
|
52,448
|
|
|
11,821
|
|
|
119,753
|
|
Schedule H:
Non-GAAP Reconciliation of TETRA Net Debt
|
|
The cash and debt
positions of TETRA and CSI Compressco LP as of December 31, 2016,
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.
|
|
|
December 31,
2016
|
|
TETRA
|
|
CCLP
|
|
Consolidated
|
|
(In
Millions)
|
|
|
Non-restricted
cash
|
$
|
9.0
|
|
|
$
|
20.8
|
|
|
$
|
29.8
|
|
|
|
|
|
|
|
Carrying value of
long-term debt:
|
|
|
|
|
|
Revolver debt
outstanding
|
3.2
|
|
|
217.5
|
|
|
220.7
|
|
Senior Notes
outstanding
|
116.4
|
|
|
286.6
|
|
|
403.0
|
|
Net debt
|
$
|
110.6
|
|
|
$
|
483.3
|
|
|
$
|
593.9
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tetra-technologies-inc-announces-fourth-quarter-and-full-year-2016-results-300415815.html
SOURCE TETRA Technologies, Inc.