NYSE$TTI

TETRA Technologies Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Announced second quarter 2020 results with $38 million of cash generated from operating activities.

TETRA Technologies reported a decrease in revenue by 14% compared to the previous quarter, with a net loss of $34.3 million. However, the company generated $38 million in cash from operating activities and $31 million of TETRA only adjusted free cash flow, showing improvements in working capital.

  • Completion Fluids & Products income before taxes was $16.0 million, representing 22.4% of revenue.
  • Water & Flowback Services maintained positive Adjusted EBITDA at $400,000 despite a 57% sequential decline in revenue.
  • TETRA only adjusted free cash flow from continuing operations was $31.2 million, a $26.8 million improvement from the first quarter of 2020.
  • Compression segment performance exceeded internal expectations with Adjusted EBITDA of $26.3 million.

Headline financials

Total Revenue

$192M

Previous: $289M-33.4%
EPS (adj)

-$0.09

Previous: -$0.02-350.0%
Capital Expenditures

$7.22M

Previous: -$60.6M+111.9%
Free Cash Flow

$31.2M

Previous: -$67.5M+146.2%
Net Income

-$34.2M

Previous: -$6.91M-394.2%
Operating Income

-$32.3M

Previous: $8.76M-468.9%
Gross Profit

$20.3M

Previous: $48.4M-58.0%
Cash & Equivalents

$56.7M

Previous: $26M+118.3%
Total Assets

$1.19B

Previous: $1.44B-17.2%
Stock-Based Comp

$2.11M

Previous: $2.77M-23.7%

Revenue & EPS history

TETRA · Revenue · Quarterly

$192M

Q2 2020-33.4%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

TETRA · $96.1M total across 2 segments · Q2 2020

  • Completion Fluids & Products
    $71.3M
  • Water & Flowback Services
    $24.7M

Forward guidance

The company is on track to achieve its objective of being well-positioned after the pandemic, due to strong execution and diversity of end markets.

Tailwinds

  • Strong execution of strategies worked on for the past two years.
  • Quick and decisive cost reduction actions.
  • Diversity of end markets, including industrial chemicals, offshore, and international.
  • Technology differentiated North America water and flowback business.
  • Maintaining positive Adjusted EBITDA and generating free cash flow in a difficult environment.

Headwinds

  • Economic and operating conditions that are outside of our control
  • The current significant surplus in the supply of oil and the ability of the OPEC and other oil producing nations to agree on and comply with supply limitations
  • The duration and magnitude of the unprecedented disruption in the oil and gas industry currently, which is negatively impacting our business
  • The availability of adequate sources of capital to us
  • Restrictions under our debt agreements and the consequences of any failure to comply with debt covenants

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 Q2 2020

Historical avgQ2 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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