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Mar 31, 2020
TETRA Q1 2020 Earnings Report
TETRA Technologies, Inc. reported strong first quarter results driven by portfolio mix and Completion Fluids & Products segment.
Key Takeaways
TETRA Technologies, Inc. announced first quarter 2020 revenue of $223 million and a net loss before discontinued operations of $10 million. Adjusted EPS was $0.02, and the company generated $4.7 million in TETRA Only adjusted free cash flow from continuing operations.
Adjusted EBITDA on a consolidated basis before discontinued operations of $48 million, the highest first quarter Adjusted EBITDA in 5 years with a 33% year-on-year quarterly improvement.
Completion Fluids & Products achieved $21.6 million of Adjusted EBITDA and 25.8% income before tax margin, up from $10.4 million and 10.0%, respectively, from first quarter of 2019.
Water & Flowback Services Adjusted EBITDA increased sequentially by $1.2 million on flat revenue.
TETRA Only adjusted free cash flow from continuing operations was $4.7 million, above previous guidance and nearly a $40 million improvement over the same period last year.
Revenue by Segment
Forward Guidance
Despite the challenging economic outlook for 2020, especially for oil and gas, the non-oil and gas industrial business is expected to hold up well for the foreseeable future. In the second quarter, the company expects to benefit from the seasonally strong Northern European industrial chemicals business, which is expected to contribute up to $10 million of cash from operating activities. Moving into the second quarter, the company expects a very different and challenging market environment for the Compression segment.
Positive Outlook
- Expects the non-oil and gas industrial business to hold up well for the foreseeable future.
- Expects to benefit from the seasonally strong Northern European industrial chemicals business in the second quarter.
- Expects Q2 contribution of up to $10 million of cash from operating activities from Northern European industrial chemicals business.
- Implemented guidelines to keep our employees, their families, and our customers safe.
- Reduced TETRA Only capital expenditures to between $10 million and $15 million for the year with a vast majority already committed in the first half of the year.
Challenges Ahead
- Challenging economic outlook for 2020, especially for oil and gas.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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