TETRA Technologies(TTI) - 2024 Q1 - Quarterly Results

Financial Performance - First quarter 2024 revenue was $151 million, a 3% increase year-over-year[4] - Net income for the first quarter was $915,000, with net income per share attributable to TETRA stockholders at $0.01[4] - Adjusted EBITDA for the first quarter was $22.8 million, reflecting an 11% increase year-over-year, with margins at 15.1%[4] - Revenues for Q1 2024 were $150,972,000, a decrease of 1% from $153,126,000 in Q4 2023 and an increase of 3% from $146,209,000 in Q1 2023[22] - Gross profit for Q1 2024 was $31,102,000, compared to $30,243,000 in Q4 2023 and $36,323,000 in Q1 2023, indicating a decline in profitability[22] - Net income attributable to TETRA stockholders for Q1 2024 was $915,000, a significant improvement from a net loss of $3,891,000 in Q4 2023, but down from $6,040,000 in Q1 2023[22] - Adjusted net income for the three months ended March 31, 2024, was $6,129,000, compared to $3,777,000 for the previous quarter and $4,036,000 for the same period last year[37] - Adjusted EBITDA for the three months ended March 31, 2024, was $22,840,000, representing 15.1% of total revenue, compared to $24,142,000 (15.8%) in the previous quarter and $20,587,000 (14.1%) in the same period last year[38] - Net income before taxes for the three months ended March 31, 2024, was $1,295,000, compared to a loss of $3,631,000 for the same period in 2023[43] Revenue Breakdown - Completion Fluids & Products revenue increased 12% year-on-year to $77 million, with adjusted EBITDA margins at 28.1%[9] - Water & Flowback Services revenue declined 4.5% year-on-year to $74 million, with adjusted EBITDA margins decreasing to 9.6%[8] Cash Flow and Liquidity - Cash used in operating activities was $13.8 million, compared to cash provided of $9.0 million in Q1 2023[5] - Adjusted free cash flow was a use of $29.6 million, including $4.0 million of capital expenditures for the Arkansas bromine and lithium projects[13] - Cash and cash equivalents decreased to $35,939,000 from $52,485,000 at the end of Q4 2023, reflecting a cash outflow[25] - Net cash used in operating activities for Q1 2024 was $(13,816,000), a decline from $18,875,000 in Q4 2023, indicating operational challenges[25] - Adjusted free cash flow for the three months ended March 31, 2024, was $(29,617,000), compared to $20,073,000 in the previous quarter and $(3,716,000) in the same period last year[42] Debt and Leverage - TETRA completed refinancing of its term loan, extending maturity to 2030 and securing capital for the bromine project[3] - TETRA's net leverage ratio was 1.5X at the end of Q1 2024, with liquidity of $195.1 million[13] - Long-term debt increased to $179,394,000 from $157,505,000 in Q4 2023, suggesting increased leverage[24] - Net debt increased to $143,455,000 as of March 31, 2024, from $105,020,000 at the end of the previous quarter[41] - The net leverage ratio as of March 31, 2024, was 1.5, indicating a decrease in financial leverage compared to previous periods[45] - Total debt and commitments amounted to $196,245,000, with unrestricted cash of $35,939,000[45] Assets and Liabilities - Total assets increased to $491,325,000 as of March 31, 2024, up from $478,961,000 at the end of 2023[24] - Total current liabilities decreased to $117,926,000 from $125,962,000 in Q4 2023, indicating improved short-term financial health[24] - Consolidated total assets increased to $491,325,000 as of March 31, 2024, from $435,584,000 a year earlier[47] Operational Insights - The company is focusing on exploration and pre-development costs related to lithium and bromine properties, which are expected to be capitalized starting January 2024[30] - The company aims to assess its ability to retire debt and further invest and grow through various financial metrics[36] - Return on net capital employed for the period is used to evaluate the company's financial performance relative to its assets[35] - Return on net capital employed for the twelve months ended March 31, 2024, was 19.6%, reflecting improved efficiency in capital utilization[47] Other Financial Metrics - Adjusted EBITDA is used as a supplemental financial measure to assess performance, excluding certain charges and credits[26] - Debt covenant adjusted EBITDA for the twelve months ended March 31, 2024, was $105,679,000, down from $126,000,000 in the previous twelve months[43] - Interest expense for the twelve months ended March 31, 2024, totaled $23,209,000, indicating stable financing costs[43] - The company reported a loss on debt extinguishment of $5,535,000 for the three months ended March 31, 2024[38] - Equity-based compensation expense for the three months ended March 31, 2024, was $1,623,000, compared to $6,406,000 in the previous quarter[38]