TETRA Technologies (TTI) Misses Q2 EPS by 3c, Beats on Revenues

TETRA Technologies (NYSE: TTI) reported Q2 EPS of ($0.04), $0.03 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $208.37 million versus the consensus estimate of $203.66 million.

Financial Guidance

We expect total year TETRA only adjusted free cash flow to be between $20 million and $40 million in 2017.

No reconciliation of the forecasted range of TETRA only adjusted free cash flow for the full year 2017 to the nearest GAAP measure is included in this release because the reconciliation would require presenting forecasted information for CSI Compressco that is not publicly disclosed.

Highlights include:

• Fluids Division revenues increased 22% sequentially and 47% compared to the second quarter of 2016 due to the start, late in the second quarter, of a significant Gulf of Mexico TETRA CS Neptune™ completion fluids project that is expected to be completed in the third quarter and the traditional ramp-up in fluids sales in Northern Europe.
• Compression Division revenues increased 15% over the first quarter as the business continues to see signs of a recovery. Compression fleet utilization improved 190 basis points to 78.9% compared to the first quarter, the third consecutive quarter of improved utilization driven largely by demand for large horsepower equipment.
• On August 1, the Compression Division launched its new, fully automated ERP system that enables real-time field data capture, enhances cash flow processes, provides the sales and operations team with customer-centric data to facilitate prompt and effective services on the fleet of equipment, and streamlines our back office and field organization with expected annual savings in excess of $4.0 million.
• Consolidated net cash provided by operating activities was $20 million, an improvement of $40.5 million over the first quarter of 2017. TETRA only adjusted free cash flow was $6.1 million, an improvement of $20 million over the first quarter. (See Schedule G for the reconciliation of TETRA only adjusted free cash flow to GAAP.)

For earnings history and earnings-related data on TETRA Technologies (TTI) click here.

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