NYSE$TTI

TETRA Technologies Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

TETRA Technologies, Inc. reported strong first quarter results driven by portfolio mix and Completion Fluids & Products segment.

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.

Headline financials

Total Revenue

$223M

Previous: $244M-8.5%
EPS (adj)

$0.02

Previous: -$0.04+150.0%
Capital Expenditures

-$12.4M

Previous: -$32.4M+61.8%
Free Cash Flow

-$13.9M

Previous: -$43.2M+67.8%
Net Income

-$1.55M

Previous: -$10.8M+85.7%
Operating Income

$2.93M

Previous: $1.13M+159.8%
Gross Profit

$39.4M

Previous: $36.2M+8.9%
Cash & Equivalents

$29.5M

Previous: $36.9M-20.1%
Total Assets

$1.27B

Previous: $1.46B-13.0%
Stock-Based Comp

$784K

Previous: $2.17M-63.8%

Revenue & EPS history

TETRA · Revenue · Quarterly

$223M

Q1 2020-8.5%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

TETRA · $133M total across 2 segments · Q1 2020

  • Completion Fluids & Products
    $75.2M+22.2%
  • Water & Flowback Services
    $57.5M-27.0%

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.

Tailwinds

  • 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.

Headwinds

  • Challenging economic outlook for 2020, especially for oil and gas.
  • Water & Flowback Services segment will be challenged in this difficult environment as it is largely dependent on North America completions activity.
  • Expects to exit the second quarter with about 35% fewer employees in our U.S. land operations than when we started the quarter.
  • Expects a very different and challenging market environment for the Compression segment moving into the second quarter.
  • Expects utilization to quickly mimic the low point of the previous 2014-2016 downturn of 75.6%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.8%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-1.8%

Avg return

30 days after

52%

35 / 67 earnings

Positive

+37.4%

Q2 2015

Best reaction

-18.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-4.5%+5.0%
Q4 2025-18.7%-23.9%-22.6%
Q3 2025-7.6%-7.8%-0.1%
Q1 2025+3.3%-1.4%-2.9%
Q4 2024-4.1%-11.5%-12.0%
Q3 2024+14.2%+3.5%+21.5%
Q2 2024-0.6%-13.0%-12.2%
Q1 2024-18.0%-12.4%-18.2%
Q4 2023+5.7%+2.3%+14.8%
Q3 2023-14.6%-17.8%-15.3%
Q2 2023+14.4%+20.5%+26.7%
Q1 2023-1.8%+2.5%-8.8%
Q4 2022-8.0%-7.0%-33.1%
Q3 2022-16.0%-12.1%-20.8%
Q2 2022-10.7%-15.1%-9.1%
Q1 2022+19.6%+22.6%+48.6%
Q4 2021+5.4%+18.4%+32.0%
Q3 2021+12.1%+19.2%-22.6%
Q2 2021+9.1%+7.1%+1.6%
Q1 2021+30.1%+38.6%+51.0%
Q4 2020+9.1%+3.3%+14.0%
Q3 2020-1.5%-1.8%+50.9%
Q2 2020-0.8%-15.5%-14.1%
Q1 2020+14.3%+12.2%-2.4%
Q4 2019-11.9%-24.5%-74.8%
Q3 2019-16.3%-21.2%-31.0%
Q2 2019+23.0%+33.1%+18.0%
Q1 2019-2.8%-2.8%-31.1%
Q3 2018-10.8%-21.3%-40.8%
Q2 2018+13.4%+18.2%+1.7%
Q1 2018+8.3%+10.0%+3.3%
Q4 2017-3.7%+2.4%+0.3%
Q3 2017+17.8%+13.3%+26.9%
Q2 2017-15.6%-16.9%-15.6%
Q1 2017+11.7%+7.1%-1.9%
Q4 2016-0.4%-3.8%-9.4%
Q3 2016-5.4%+6.2%+13.7%
Q2 2016-1.7%-1.9%-0.3%
Q1 2016-11.3%
Q4 2015-6.0%
Q3 2015+13.8%
Q2 2015+37.4%
Q1 2015+7.0%
Q4 2014+10.2%
Q3 2014-7.0%
Q2 2014+1.5%
Q1 2014-5.6%
Q4 2013-1.7%
Q3 2013-3.1%
Q2 2013+14.4%
Q1 2013-3.8%
Q4 2012-0.3%
Q3 2012+8.4%
Q2 2012+0.1%
Q1 2012+3.7%
Q4 2011-6.5%
Q3 2011-4.2%
Q2 2011+8.9%
Q1 2010+8.9%
Q1 2011+3.8%
Q4 2010+2.1%
Q4 2008+2.1%
Q3 2009+0.8%
Q3 2010+0.8%
Q2 2009+3.2%
Q4 2009+3.2%
Q2 2010+3.2%

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