TETRA's adjusted per share results attributable to TETRA stockholders for the third quarter of 2016, excluding Maritech and other charges, were a loss of
Third Quarter 2016 Results |
|||||||||||
Three Months Ended |
|||||||||||
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
|||||||||
(In Thousands, Except per Share Amounts) |
|||||||||||
Revenue |
$ |
176,553 |
$ |
175,660 |
$ |
305,144 |
|||||
Net income (loss) attributable to TETRA stockholders |
(15,009) |
(26,574) |
9,755 |
||||||||
Adjusted EBITDA(1) |
36,927 |
32,949 |
76,421 |
||||||||
Diluted EPS attributable to TETRA stockholders |
(0.16) |
(0.32) |
0.12 |
||||||||
Adjusted diluted EPS attributable to TETRA stockholders(1) |
(0.05) |
(0.15) |
0.17 |
||||||||
Consolidated net cash provided (used) by operating activities |
(7,933) |
8,336 |
36,065 |
||||||||
TETRA only adjusted free cash flow(1) |
$ |
(13,924) |
$ |
(8,773) |
$ |
30,176 |
(1) |
Non-GAAP financial measures are reconciled to GAAP in the schedules below. |
Highlights of the 2016 third quarter include:
- Fluids operating margin improved sequentially to 14.1% from 0.7%, with income before tax improving to
$8.8 million . Adjusted EBITDA margins improved sequentially to 26.2% from 13.6%, with adjusted EBITDA doubling to$16.4 million . - Offshore Services operating margin improved sequentially to 6.4% from 0.1%, with income before tax improving to
$1.9 million . Adjusted EBITDA margins improved sequentially to 16.0% from 11.3%, with adjusted EBITDA improving by 58% to$4.7 million . - Production Testing revenues increased sequentially by 13% driven by
North America land activity. Production Testing loss before tax was reduced to$4.2 million while Adjusted EBITDA loss was$452,000 . - Compression operating margin deteriorated sequentially to a loss of 22.3% from a loss of 5.3%, with loss before tax deteriorating to
$15.8 million primarily due to expenses from the recent equity offering and a non-cash charge from a revaluation of the convertible preferred notes. Adjusted EBITDA margins of 32.7% improved sequentially by 30 basis points. CSI Compressco completed a convertible preferred equity offering for a total of$80 million and further amended its credit facility leverage covenants (to 5.95X through June, 2018) to provide incremental financial flexibility to manage through this downturn, converting their credit facility to an asset-based facility and reducing the amount of the credit facility from$340 million to $315 million .- TETRA only adjusted free cash flow was a use of cash of
$13.9 million as customers delayed payments into the fourth quarter.
(1) |
Non-GAAP financial measures are reconciled to GAAP in the schedules below. |
"Our Fluids Division's revenues for the third quarter of 2016 were
"Third quarter 2016 revenue for our Production Testing Division improved 13% over the second quarter led by stronger activity levels in
"For the third quarter of 2016 our Compression Division reported adjusted EBITDA of
"Our Offshore Service segment reported adjusted EBITDA of
Free Cash Flow and Balance Sheet
TETRA only adjusted free cash flow in the third quarter was a use of cash of
During the third quarter,
Special Charges and Maritech
Maritech reported a pre-tax loss of
Special charges were
$9.3 million related to the recent offerings byCSI Compressco of its Series A Convertible Preferred units (transaction related expenses of$3.0 million and a non-cash charge of$6.3 million for a mark to market valuation of the related liability).$1.4 million of bad debt expenses and increased bad debt reserves to reflect the deteriorating financial conditions of some of our customers.
Financial Guidance
The forecast for full year 2016 TETRA only adjusted free cash flow will be impacted by the timing of year-end collections from some large projects that will negatively impact working capital as these projects are being pushed towards the end of the quarter. Partially as a result of these potential deferred collections, total year projected free cash flow is expected to be between
No reconciliation of the forecasted range of adjusted free cash flow for the full year 2016 is included in this release because the reconciliation would require presenting forecasted information for
Conference Call
TETRA will host a conference call to discuss third quarter 2016 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: Second Quarter Special Charges
Schedule F: Non-GAAP Reconciliation to GAAP Financials
Schedule G: Non-GAAP Reconciliation to 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 expected results of operational business segments for 2016, anticipated benefits from
Schedule A: Consolidated Income Statement (Unaudited) |
|||||||||||
Three months ended |
Nine months ended |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
(In Thousands) |
|||||||||||
Revenues |
$ |
176,553 |
$ |
305,144 |
$ |
521,542 |
$ |
872,555 |
|||
Cost of sales, services, and rentals |
115,948 |
195,701 |
361,982 |
569,755 |
|||||||
Depreciation, amortization, and accretion |
31,852 |
38,909 |
98,997 |
116,319 |
|||||||
Impairments of long-lived assets |
— |
— |
10,927 |
— |
|||||||
Total cost of revenues |
147,800 |
234,610 |
471,906 |
686,074 |
|||||||
Gross profit |
28,753 |
70,534 |
49,636 |
186,481 |
|||||||
General and administrative expense |
28,589 |
40,910 |
89,381 |
113,651 |
|||||||
Goodwill impairment |
— |
— |
106,205 |
— |
|||||||
Interest expense, net |
14,325 |
13,196 |
43,299 |
40,231 |
|||||||
Other (income) expense, net |
8,424 |
1,005 |
9,930 |
1,123 |
|||||||
Income (loss) before taxes |
(22,585) |
15,423 |
(199,179) |
31,476 |
|||||||
Provision (benefit) for income taxes |
1,443 |
4,687 |
1,804 |
8,997 |
|||||||
Net income (loss) |
(24,028) |
10,736 |
(200,983) |
22,479 |
|||||||
Net (income) loss attributable to noncontrolling interest |
9,019 |
(981) |
71,075 |
(2,247) |
|||||||
Net income (loss) attributable to TETRA stockholders |
$ |
(15,009) |
$ |
9,755 |
$ |
(129,908) |
$ |
20,232 |
|||
Basic per share information: |
|||||||||||
Net income (loss) attributable to TETRA stockholders |
$ |
(0.16) |
$ |
0.12 |
$ |
(1.53) |
$ |
0.26 |
|||
Weighted average shares outstanding |
91,746 |
79,219 |
85,093 |
79,098 |
|||||||
Diluted per share information: |
|||||||||||
Net income (loss) attributable to TETRA stockholders |
$ |
(0.16) |
$ |
0.12 |
$ |
(1.53) |
$ |
0.25 |
|||
Weighted average shares outstanding |
91,746 |
79,792 |
85,093 |
79,455 |
Schedule B: Financial Results By Segment (Unaudited) |
|||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
(In Thousands) |
|||||||||||||||
Revenues by segment: |
|||||||||||||||
Fluids Division |
$ |
62,610 |
$ |
110,587 |
$ |
182,556 |
$ |
332,850 |
|||||||
Production Testing Division |
15,065 |
28,942 |
48,320 |
100,885 |
|||||||||||
Compression Division |
70,718 |
128,926 |
228,504 |
358,270 |
|||||||||||
Offshore Division |
|||||||||||||||
Offshore Services |
29,239 |
37,882 |
65,604 |
85,396 |
|||||||||||
Maritech |
238 |
475 |
575 |
2,375 |
|||||||||||
Intersegment eliminations |
(297) |
(429) |
(813) |
(3,609) |
|||||||||||
Offshore Division total |
29,180 |
37,928 |
65,366 |
84,162 |
|||||||||||
Eliminations and other |
(1,020) |
(1,239) |
(3,204) |
(3,612) |
|||||||||||
Total revenues |
$ |
176,553 |
$ |
305,144 |
$ |
521,542 |
$ |
872,555 |
|||||||
Gross profit (loss) by segment: |
|||||||||||||||
Fluids Division |
$ |
15,369 |
$ |
41,704 |
$ |
29,445 |
$ |
107,424 |
|||||||
Production Testing Division |
(2,032) |
926 |
(8,054) |
7,703 |
|||||||||||
Compression Division |
12,353 |
22,163 |
33,035 |
66,100 |
|||||||||||
Offshore Division |
|||||||||||||||
Offshore Services |
3,459 |
7,296 |
(763) |
6,017 |
|||||||||||
Maritech |
(297) |
(1,331) |
(3,709) |
(30) |
|||||||||||
Intersegment eliminations |
— |
— |
— |
— |
|||||||||||
Offshore Division total |
3,162 |
5,965 |
(4,472) |
5,987 |
|||||||||||
Corporate overhead and eliminations |
(99) |
(224) |
(318) |
(733) |
|||||||||||
Total gross profit |
$ |
28,753 |
$ |
70,534 |
$ |
49,636 |
$ |
186,481 |
|||||||
Income (loss) before taxes by segment: |
|||||||||||||||
Fluids Division |
$ |
8,835 |
$ |
33,215 |
$ |
8,931 |
$ |
83,535 |
|||||||
Production Testing Division |
(4,222) |
(4,528) |
(27,924) |
(4,961) |
|||||||||||
Compression Division |
(15,766) |
2,070 |
(124,506) |
5,974 |
|||||||||||
Offshore Division |
|||||||||||||||
Offshore Services |
1,879 |
4,576 |
(5,792) |
(1,977) |
|||||||||||
Maritech |
(643) |
(1,649) |
(4,664) |
(987) |
|||||||||||
Intersegment eliminations |
— |
— |
— |
— |
|||||||||||
Offshore Division total |
1,236 |
2,927 |
(10,456) |
(2,964) |
|||||||||||
Corporate overhead and eliminations |
(12,668) |
(18,261) |
(45,224) |
(50,108) |
|||||||||||
Total income (loss) before taxes |
$ |
(22,585) |
$ |
15,423 |
$ |
(199,179) |
$ |
31,476 |
Please note that the above results by Segment are inclusive of the special charges and expenses. Please see Schedule E for details of those special charges and expenses. |
Schedule C: Consolidated Balance Sheet (Unaudited) |
|||||||
September 30, 2016 |
December 31, 2015 |
||||||
(In Thousands) |
|||||||
Balance Sheet: |
|||||||
Cash (excluding restricted cash) |
$ |
22,210 |
$ |
23,057 |
|||
Accounts receivable, net |
120,175 |
184,172 |
|||||
Inventories |
128,405 |
117,009 |
|||||
Other current assets |
26,649 |
29,791 |
|||||
PP&E, net |
977,455 |
1,048,004 |
|||||
Other assets |
97,156 |
234,169 |
|||||
Total assets |
$ |
1,372,050 |
$ |
1,636,202 |
|||
Current portion of decommissioning liabilities |
$ |
376 |
$ |
14,570 |
|||
Other current liabilities |
114,526 |
170,676 |
|||||
Long-term debt (1) |
738,032 |
853,228 |
|||||
Long-term portion of decommissioning liabilities |
54,962 |
42,879 |
|||||
CCLP Series A Preferred |
77,018 |
— |
|||||
Other long-term liabilities |
29,902 |
40,669 |
|||||
Equity |
357,234 |
514,180 |
|||||
Total liabilities and equity |
$ |
1,372,050 |
$ |
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, 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. Amounts presented are net of deferred financing costs. |
September 30, 2016 |
December 31, 2015 |
||||||
(In Thousands) |
|||||||
TETRA |
|||||||
Bank revolving line of credit facility |
$ |
125,849 |
$ |
21,572 |
|||
TETRA Senior Notes at various rates |
116,492 |
264,998 |
|||||
Other debt |
— |
50 |
|||||
TETRA total debt |
242,341 |
286,620 |
|||||
Less current portion |
— |
(50) |
|||||
TETRA total long-term debt |
$ |
242,341 |
$ |
286,570 |
|||
CSI Compressco LP |
|||||||
CCLP Bank Credit Facility |
$ |
176,567 |
$ |
229,555 |
|||
CCLP 7.25% Senior Notes |
319,124 |
337,103 |
|||||
CCLP total debt |
495,691 |
566,658 |
|||||
Less current portion |
— |
— |
|||||
CCLP total long-term debt |
$ |
495,691 |
$ |
566,658 |
|||
Consolidated total long-term debt |
$ |
738,032 |
$ |
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 charges; adjusted EBITDA; and 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 charges from the historical results of operations enables management to evaluate more effectively the Company's operations over the prior periods and to identify operating trends that could be obscured by the excluded items.
Adjusted income (loss) before taxes (and adjusted income (loss) before taxes as a percent of revenue) is defined as the Company's (or its Segments') 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 before interest, taxes, depreciation, amortization, impairments and special charges, and equity compensation. 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
- 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 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: Third Quarter Special Charges |
|||||||||||||||
Three Months Ended |
|||||||||||||||
September 30, 2016 |
|||||||||||||||
Income |
Provision |
Noncont. |
Net Income |
EPS |
|||||||||||
(In Thousands, Except per Share Amounts) |
|||||||||||||||
Income (loss) attributable to TETRA stockholders, excluding unusual charges and Maritech |
$ |
(11,428) |
$ |
(3,428) |
$ |
(3,019) |
$ |
(4,981) |
$ |
(0.05) |
|||||
Severance expense |
(210) |
(63) |
(33) |
(114) |
0.00 |
||||||||||
Debt refinancing gain on early retirement |
397 |
119 |
309 |
(31) |
0.00 |
||||||||||
Allowance for doubtful accounts |
(1,361) |
(408) |
(416) |
(537) |
(0.01) |
||||||||||
Equity related expenses |
(9,340) |
(2,802) |
(5,860) |
(678) |
(0.01) |
||||||||||
Effect of deferred tax valuation allowance and other related tax adj. |
— |
8,025 |
— |
(8,025) |
(0.09) |
||||||||||
Maritech profit (loss) |
(643) |
— |
— |
(643) |
(0.01) |
||||||||||
Net Income (loss) attributable to TETRA stockholders, as reported |
$ |
(22,585) |
$ |
1,443 |
$ |
(9,019) |
$ |
(15,009) |
$ |
(0.16) |
|||||
June 30, 2016 |
|||||||||||||||
Income |
Provision |
Noncont. |
Net Income |
EPS |
|||||||||||
Income (loss) attributable to TETRA stockholders, excluding unusual charges and Maritech |
$ |
(20,511) |
$ |
(6,154) |
$ |
(2,011) |
$ |
(12,346) |
$ |
(0.15) |
|||||
Asset impairments |
(365) |
(109) |
— |
(256) |
0.00 |
||||||||||
Severance expense |
(595) |
(179) |
(170) |
(246) |
0.00 |
||||||||||
Debt refinancing cost |
(2,582) |
(775) |
(469) |
(1,338) |
(0.02) |
||||||||||
Effect of deferred tax valuation allowance and other related tax adj. |
— |
8,987 |
— |
(8,987) |
(0.11) |
||||||||||
Maritech profit (loss) |
(3,401) |
— |
— |
(3,401) |
(0.04) |
||||||||||
Net Income (loss) attributable to TETRA stockholders, as reported |
$ |
(27,454) |
$ |
1,770 |
$ |
(2,650) |
$ |
(26,574) |
$ |
(0.32) |
|||||
September 30, 2015 |
|||||||||||||||
Income |
Provision |
Noncont. |
Net Income |
EPS |
|||||||||||
Income (loss) attributable to TETRA stockholders, excluding unusual charges and Maritech |
$ |
21,117 |
$ |
6,335 |
$ |
960 |
$ |
13,822 |
$ |
0.17 |
|||||
Severance expense |
(375) |
(113) |
21 |
(283) |
0.00 |
||||||||||
Allowance for bad debt |
(2,570) |
(771) |
— |
(1,799) |
(0.02) |
||||||||||
Brazil VAT audit |
(1,100) |
(330) |
— |
(770) |
(0.01) |
||||||||||
Effect of deferred tax valuation allowance and other related tax adj. |
— |
(434) |
— |
434 |
0.01 |
||||||||||
Maritech profit (loss) |
(1,649) |
— |
— |
(1,649) |
(0.02) |
||||||||||
Net Income (loss) attributable to TETRA stockholders, as reported |
$ |
15,423 |
$ |
4,687 |
$ |
981 |
$ |
9,755 |
$ |
0.12 |
Schedule F: Non-GAAP Reconciliation to GAAP Financials |
|||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||
September 30, 2016 |
|||||||||||||||||||||
Income |
Impairments |
Adjusted |
Adjusted |
Depreciation |
Equity |
Adjusted |
|||||||||||||||
(In Thousands) |
|||||||||||||||||||||
Fluids Division |
$ |
8,835 |
$ |
701 |
$ |
9,536 |
$ |
8 |
$ |
6,873 |
$ |
— |
$ |
16,417 |
|||||||
Production Testing Division |
(4,222) |
26 |
(4,196) |
(147) |
3,891 |
— |
(452) |
||||||||||||||
Compression Division |
(15,766) |
10,497 |
(5,269) |
9,763 |
17,830 |
774 |
23,098 |
||||||||||||||
Offshore Services Segment |
1,879 |
11 |
1,890 |
— |
2,793 |
— |
4,683 |
||||||||||||||
Eliminations and other |
(2) |
— |
(2) |
— |
(4) |
— |
(6) |
||||||||||||||
Subtotal |
(9,276) |
11,235 |
1,959 |
9,624 |
31,383 |
774 |
43,740 |
||||||||||||||
Corporate and other |
(12,666) |
(721) |
(13,387) |
4,699 |
101 |
1,774 |
(6,813) |
||||||||||||||
TETRA excluding Maritech |
(21,942) |
10,514 |
(11,428) |
14,323 |
31,484 |
2,548 |
36,927 |
||||||||||||||
Maritech |
(643) |
— |
(643) |
2 |
368 |
— |
(273) |
||||||||||||||
Total TETRA |
$ |
(22,585) |
$ |
10,514 |
$ |
(12,071) |
$ |
14,325 |
$ |
31,852 |
$ |
2,548 |
$ |
36,654 |
|||||||
June 30, 2016 |
|||||||||||||||||||||
Income |
Impairments |
Adjusted |
Adjusted |
Depreciation |
Equity |
Adjusted |
|||||||||||||||
Fluids Division |
$ |
454 |
$ |
501 |
$ |
955 |
$ |
2 |
$ |
7,326 |
$ |
— |
$ |
8,283 |
|||||||
Production Testing Division |
(4,328) |
131 |
(4,197) |
(143) |
4,176 |
— |
(164) |
||||||||||||||
Compression Division |
(4,040) |
984 |
(3,056) |
8,148 |
18,753 |
825 |
24,670 |
||||||||||||||
Offshore Services Segment |
37 |
56 |
93 |
— |
2,865 |
— |
2,958 |
||||||||||||||
Eliminations and other |
3 |
— |
3 |
— |
(3) |
— |
— |
||||||||||||||
Subtotal |
(7,874) |
1,672 |
(6,202) |
8,007 |
33,117 |
825 |
35,747 |
||||||||||||||
Corporate and other |
(16,179) |
1,870 |
(14,309) |
5,596 |
112 |
5,803 |
(2,798) |
||||||||||||||
TETRA excluding Maritech |
(24,053) |
3,542 |
(20,511) |
13,603 |
33,229 |
6,628 |
32,949 |
||||||||||||||
Maritech |
(3,401) |
— |
(3,401) |
10 |
309 |
— |
(3,082) |
||||||||||||||
Total TETRA |
$ |
(27,454) |
$ |
3,542 |
$ |
(23,912) |
$ |
13,613 |
$ |
33,538 |
$ |
6,628 |
$ |
29,867 |
|||||||
September 30, 2015 |
|||||||||||||||||||||
Income |
Impairments |
Adjusted |
Interest |
Depreciation |
Equity |
Adjusted |
|||||||||||||||
Fluids Division |
$ |
33,215 |
$ |
360 |
$ |
33,575 |
$ |
(15) |
$ |
8,735 |
$ |
— |
$ |
42,295 |
|||||||
Production Testing Division |
(4,528) |
3,124 |
(1,404) |
4 |
5,999 |
— |
4,599 |
||||||||||||||
Compression Division |
2,070 |
43 |
2,113 |
8,897 |
20,648 |
455 |
32,113 |
||||||||||||||
Offshore Services Segment |
4,576 |
507 |
5,083 |
— |
2,879 |
— |
7,962 |
||||||||||||||
Eliminations and other |
5 |
— |
5 |
— |
(1) |
— |
4 |
||||||||||||||
Subtotal |
35,338 |
4,034 |
39,372 |
8,886 |
38,260 |
455 |
86,973 |
||||||||||||||
Corporate and other |
(18,266) |
12 |
(18,255) |
4,310 |
230 |
3,163 |
(10,551) |
||||||||||||||
TETRA excluding Maritech |
17,072 |
4,046 |
21,117 |
13,196 |
38,490 |
3,618 |
76,421 |
||||||||||||||
Maritech |
(1,649) |
— |
(1,649) |
— |
419 |
— |
(1,230) |
||||||||||||||
Total TETRA |
$ |
15,423 |
$ |
4,046 |
$ |
19,468 |
$ |
13,196 |
$ |
38,909 |
$ |
3,618 |
$ |
75,191 |
(1) |
Adjusted interest expense, net, for the three month period ended June 30, 2016, excludes $0.7 million of interest expense related to CCLP debt refinancing. |
Schedule G: Non-GAAP Reconciliation to Adjusted Free Cash Flow |
|||||||||||
Three Months Ended |
|||||||||||
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
|||||||||
(In Thousands) |
|||||||||||
Consolidated |
|||||||||||
Net cash provided by operating activities |
$ |
(7,933) |
$ |
8,336 |
$ |
36,065 |
|||||
ARO settlements |
324 |
64 |
785 |
||||||||
Capital expenditures, net of sales proceeds |
(5,727) |
(4,732) |
(21,915) |
||||||||
Consolidated adjusted free cash flow |
(13,336) |
3,668 |
14,935 |
||||||||
CSI Compressco LP |
|||||||||||
Net cash provided by operating activities |
9,958 |
20,469 |
11,340 |
||||||||
Capital expenditures, net of sales proceeds |
(3,796) |
(2,453) |
(18,906) |
||||||||
CSI Compressco free cash flow |
6,162 |
18,016 |
(7,566) |
||||||||
TETRA Only |
|||||||||||
Cash from operating activities |
(17,891) |
(12,133) |
24,725 |
||||||||
ARO settlements |
324 |
64 |
785 |
||||||||
Capital expenditures, net of sales proceeds |
(1,931) |
(2,279) |
(3,009) |
||||||||
Free cash flow before ARO settlements |
(19,498) |
(14,348) |
22,501 |
||||||||
Distributions from CSI Compressco LP |
5,574 |
5,575 |
7,675 |
||||||||
Adjusted free cash flow |
(13,924) |
(8,773) |
30,176 |
Schedule H: Non-GAAP Reconciliation of TETRA Net Debt |
The cash and debt positions of TETRA and CSI Compressco LP as of September 30, 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. |
September 30, 2016 |
|||||||||||
TETRA |
CCLP |
Consolidated |
|||||||||
(In Millions) |
|||||||||||
Non-restricted cash |
$ |
8.8 |
$ |
13.4 |
$ |
22.2 |
|||||
Revolver debt outstanding |
125.8 |
176.6 |
302.4 |
||||||||
Senior Notes outstanding |
116.5 |
319.1 |
435.6 |
||||||||
Net Debt |
$ |
233.5 |
$ |
482.3 |
$ |
715.8 |
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SOURCE
TETRA Technologies, Inc., The Woodlands, Texas, Stuart M. Brightman, 281/367-1983, Fax: 281/364-4346, www.tetratec.com