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
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 ofSeptember 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. |
"Fluids Division revenue for the fourth quarter of 2016 was
"Fourth quarter 2016 Compression Division revenue increased sequentially 17% to
"Fourth quarter 2016 revenue for the Production Testing Division improved sequentially by 2% to
"Our Offshore Service segment reported revenue of
Free Cash Flow and Balance Sheet
TETRA only adjusted free cash flow in the fourth quarter of 2016 was
During the fourth quarter, TETRA completed an equity offering that resulted in gross proceeds of
Special items and Maritech
Maritech reported pre-tax income of
Consolidated special items incurred in the fourth quarter were
$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 damagedCSI 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
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
On
Conference Call
TETRA will host a conference call to discuss these results today,
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
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
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
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
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
- 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
Schedule E: Special Items |
||||||||||||||||
Three Months Ended |
||||||||||||||||
December 31, 2016 |
||||||||||||||||
Income |
Provision |
Noncont. |
Net Income |
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 |
Provision |
Noncont. |
Net Income |
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 Before Tax |
Provision |
Noncont. |
Net Income |
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 |
Provision |
Noncont. |
Net Income |
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 |
Tax |
Income |
Impairments |
Adjusted (Loss) |
Adjusted |
Adjusted |
Equity Comp. |
Omnibus |
Adjusted |
||||||||||||||||||||||||
(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 |
Tax |
Income |
Impairments |
Adjusted |
Interest |
Depreciation |
Adjusted |
Omnibus |
Adjusted |
||||||||||||||||||||||||
(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
Investor Contact: TETRA Technologies, Inc., The Woodlands, Texas, Stuart M. Brightman, 281/367-1983, Fax: 281/364-4346, www.tetratec.com