TETRA Technologies(TTI) - 2023 Q4 - Annual Results

Financial Performance - Fourth quarter revenue was $153.1 million, a 4% increase year-over-year[4] - Fourth quarter adjusted EBITDA was $24.1 million, reflecting a 19% year-over-year increase[4] - Total year 2023 income from continuing operations was $25.5 million, a 235% increase compared to 2022[4] - Adjusted free cash flow for 2023 was $41 million, an improvement of $62 million year-over-year[4] - Total year revenue for 2023 was $626 million, a 13% increase from 2022, with international operations contributing 65% to the revenue growth[22] - Income from continuing operations improved to $25.5 million in 2023, up 2.4 times from $7.6 million in 2022[22] - Adjusted EBITDA increased by $28.7 million to $106.8 million in 2023, representing a 37% growth year-over-year[23] - Adjusted EBITDA margin rose to 17.1% in 2023, an increase of 300 basis points from 14.1% in 2022[23] - Cash flow from operations reached $70.2 million, a significant increase of 269% from $19.0 million in 2022[23] - Net income for the twelve months ended December 31, 2023, was $25,757 thousand, a substantial increase from $7,796 thousand in the previous year[35] - Net income before taxes and discontinued operations for 2023 was $31,699,000, up from $11,166,000 in 2022, reflecting a significant increase of 184.5%[50] Revenue Breakdown - Water & Flowback Services revenue for the fourth quarter was $81 million, a 12% increase for the total year[10] - Completion Fluids & Products revenue for the fourth quarter was $73 million, a 10% increase year-over-year[13] - Completion Fluids & Products revenue for 2023 was $313 million, up $39.7 million from 2022, with an income before taxes of $78.3 million[24] - Water & Flowback Services revenue for 2023 was $313 million, an increase of $33.4 million from 2022, with an income before taxes of $25.7 million[25] Debt and Liquidity - As of December 2023, the net leverage ratio was 1.13X and liquidity was $126 million[19] - A $265 million credit facility was secured in January 2024 to advance the Arkansas bromine processing project[20] - Net debt decreased by 27% to $105 million from $142.9 million in 2022[23] - Unrestricted cash increased to $52,485,000 in 2023 from $13,592,000 in 2022, showing a substantial improvement in liquidity[52] - Net debt decreased to $105,020,000 in 2023 from $142,866,000 in 2022, indicating a reduction in leverage[52] Asset Management - Total assets increased to $478,961 thousand in December 2023, up from $434,366 thousand in December 2022, representing an increase of 10.1%[34] - Total current liabilities increased slightly to $125,962 thousand in December 2023 from $124,267 thousand in December 2022, an increase of 1.4%[34] - Long-term debt, net, was $157,505 thousand in December 2023, a marginal increase from $156,455 thousand in December 2022, indicating a growth of 0.7%[34] - Consolidated total assets increased to $478,961 thousand as of December 31, 2023, up from $434,366 thousand in the previous year[55] - Consolidated current liabilities stood at $125,962 thousand, compared to $124,267 thousand in the previous year[55] Operational Efficiency - Adjusted EBITDA is used by management to assess financial performance, excluding certain special or other charges, and is a key metric for evaluating operational efficiency[40] - Adjusted net income per share is utilized to evaluate financial performance, excluding special charges, providing a clearer view of operational results[39] - The company aims to enhance its capacity for further investment and growth, as indicated by its financial strategies and performance metrics[46] Market Expansion - The Arkansas Oil and Gas Commission approved the 6,138-acre Evergreen Brine Unit for future bromine and lithium production[3] - The resource report estimated 22 tons per acre of total lithium resources for the Evergreen Brine Unit, the highest for any lithium brine resource in the U.S.[5] - The company is expanding into the low-carbon energy market, focusing on lithium and bromine resources development[31] Quarterly Performance - For the three months ended December 31, 2023, the company reported an adjusted income from continuing operations of $3.777 million, compared to $9.166 million in the previous quarter, reflecting a decrease of approximately 59.8%[47] - The total revenues for the three months ended December 31, 2023, were $153.126 million, slightly down from $151.464 million in the previous quarter, indicating a marginal decline of about 1.1%[48] - Adjusted EBITDA for the three months ended December 31, 2023, was $24.142 million, representing an adjusted EBITDA margin of 15.8% of revenue, compared to 17.2% in the previous quarter[48] - The net loss before taxes and discontinued operations for the three months ended December 31, 2023, was $(3.631) million, a significant decline from a profit of $6.716 million in the previous quarter[47] - The diluted loss per share from continuing operations for the three months ended December 31, 2023, was $(0.03), compared to a profit of $0.04 in the previous quarter[47] - The company reported total impairments and other charges of $2.189 million for the three months ended December 31, 2023, consistent with the previous quarter's charges[48] - The company experienced an unusual foreign exchange loss of $2.444 million for the three months ended December 31, 2023, which was not present in the previous quarter[48]