TETRA Technologies, Inc. (TTI)

[TradingCharts]

THE WOODLANDS, Texas, May 1, 2023 /PRNewswire/ --TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI)

today announced first-quarter 2023 financial results. Brady Murphy, TETRA President and Chief Executive Officer, stated, "First quarter results came in as expected representing a solid start to 2023 and setting the foundation for a very strong second quarter."

First quarter 2023 revenue of $146 million increased 12% from the first quarter of 2022 but decreased 1% from the fourth quarter of 2022. Net income before discontinued operations was $6.0 million, inclusive of $2.0 million of non-recurring credits, net of charges, mainly from a favorable cash insurance settlement. This compares to net income before discontinued operations of $7.7 million, inclusive of $0.6 million of non-recurring credits, net of charges, in the first quarter of 2022 and to a net loss before discontinued operations of $1.8 million in the fourth quarter of 2022, inclusive of $4.3 million of non-recurring charges and expenses. Net income per share attributable to TETRA stockholders was $0.05 in the first quarter compared to net loss per share of $0.01 in the fourth quarter of 2022 and net income per share from continuing operations of $0.06 in the first quarter of 2022.

Adjusted EBITDA for the first quarter of 2023 was $20.6 million (14.1% of revenue) compared to $20.3 million (13.8% of revenue) in the fourth quarter of 2022, and up slightly compared to $20.5 million (15.7% of revenue) in the first quarter of 2022. The first quarter of 2023 included unrealized losses on investments of $504,000. Excluding these unrealized losses on investments, Adjusted EBITDA for the first quarter of 2023 was $21.1 million, the highest Adjusted EBITDA, excluding unrealized gains or losses on investments, since the first quarter of 2020.

Cash flow from operating activities was $9.0 million in the first quarter of 2023 compared to cash used in operating activities of $7.0 million in the fourth quarter of 2022 and compared to cash flow from operating activities of $5.9 million in the first quarter of 2022. Adjusted free cash flow from continuing operations was a use of $3.7 million after funding capital expenditures of $12.5 million, net of proceeds. The first quarter has traditionally used cash due to the timing of significant annual payments, including property taxes and employee incentive cash bonuses for the prior year. Inventory expanded in the first quarter in anticipation of the second quarter seasonal peak in the European industrial chemicals business. Working capital at the end of the first quarter was $109 million. Working capital is defined as current assets, excluding cash and restricted cash, less current liabilities.

Brady Murphy further stated, "In the first quarter, both segments increased Adjusted EBITDA and improved Adjusted EBITDA margins quarter-over-quarter offsetting higher corporate expenses from one-off increased legal and benefits costs. Water & Flowback Services Adjusted EBITDA margins improved 180 basis points from 14.9% in the fourth quarter of 2022 to 16.7% in the first quarter of 2023. Completion Fluids & Products revenue increased 4% sequentially and Adjusted EBITDA margins improved sequentially from 24.2% to 26.1%, primarily driven by our European industrial chemicals business where operations have nearly returned to the levels prior to the Russia and Ukraine conflict with stronger pricing in place. First quarter results also reflect a full quarter contribution from the fluids business acquisition late last year in the North Sea, which performed above expectations. In March 2023, we signed a purchase and sale agreement to expand our completion fluids operational capacity in Brazil. The acquisition is expected to close during the second quarter of 2023, subject to government approvals. This investment, in addition to the Gulf of Mexico and North Sea investments from the prior quarter, will complete our planned expansions in three of our key offshore markets in advance of what we believe to be an extended offshore upcycle.

https://ir.tetratec.com/2023-05-01-TETRA-TECHNOLOGIES,-INC-ANNOUNCES-FIRST-QUARTER-2023-REVENUE-OF-146-MILLION-AND-EPS-OF-0-05-AND-PROVIDES-SECOND-QUARTER-GUIDANCE