Tetra Technologies, Inc.
Non-GAAP Financial Measures
 
TETRA occasionally uses numerical measures in investor presentations, earnings conference calls and other forums which are or may be considered Non-GAAP Financial Measures. We have provided below for your reference supplemental financial disclosure for these measures, including the most directly comparable GAAP measure and an associated reconciliation. This supplemental financial disclosure should be considered within the context of our complete audited financial results for the given period, which are available on the SEC Filings page of our website.

Capitalization
Enterprise Value
Free Cash Flow Excluding Maritech and Compressco
Market Capitalization
EBITDA

Capitalization
Capitalization is defined as total TETRA stockholders' equity plus the sum of long-term debt and the current portion of long-term debt, excluding the debt of Compressco Partners, L.P. A reconciliation as of December 31, 2014, December 31, 2013 and December 31, 2012 is shown below:


  Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012  
  (In Thousands)  

Total TETRA stockholders' equity

$369,713

 

$555,541

 

$551,120

 

Total debt, excluding

 

 

 

  Compressco Partners' debt

395,074

 

357,857

 

356,659

 

Capitalization

$764,787

 

$913,398

 

$907,779

 

 

 

 

 

 

 



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Enterprise Value
Enterprise Value is defined as market capitalization plus the sum of long-term and short-term debt on the consolidated balance sheet, less cash, excluding restricted cash on the consolidated balance sheet and excluding the debt and cash of Compressco Partners, L.P. Conceptually, Enterprise Value is a measure of the market value of a company if it were free of debt. A reconciliation as of December 31, 2014, December 31, 2013 and December 31, 2012 is shown below:


  Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012  
  (In Thousands)  

Market capitalization

$525,048

 

$963,511

 

$586,654

 

Total debt, excluding
  Compressco Partners' debt 

395,074

 

357,857

 

356,659

 

Less: cash, excluding
  Compressco Partners' cash

(14,318

)

(29,277

)

(61,082 )

Enterprise value

$905,804

 

$1,292,091

 

$882,231

 

 

 

 

 

 

 

 



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Free Cash Flow Excluding Maritech and Compressco
Free cash flow excluding Maritech is defined as cash provided by (used in) operating activities excluding cash used to perform work to settle Maritech's well abandonment and decommissioning liabilities, less capital expenditures. Cash provided by operating activities consists of net income, plus depreciation, depletion and amortization, plus the change in deferred income taxes, plus other non-cash items, plus changes in working capital, plus other changes in current operating assets and liabilities. Free cash flow excluding Compressco Partners, L.P., is defined as free cash flow excluding Maritech, excluding cash provided by (used in) operating activities for Compressco and Compressco's capital expenditures, and including distributions received from Compressco.  Management views free cash flow excluding Maritech and Compressco, a non-GAAP measure, as a measure of TETRA's after-tax cash flow available to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund other financing activities. A reconciliation of cash provided by (used in) operating activities to free cash flow excluding Maritech and Compressco for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, is shown below:

  Year Ended Dec. 31, 2014

Year Ended
Dec. 31, 2013

 Year Ended
Dec. 31, 2012

 
  (In Thousands)  

Cash provided by (used in) operating activities

$108,645

  

$49,656

 

$17,669

 

Plus: net cash used in Maritech
   decommissioning activities

63,319

 

114,109

 

94,419

 

Less: capital expenditures (114,082  (101,379  (107,524

Free cash flow excluding Maritech

$57,882

 

$62,386

 

$4,564

 

 

 

 

 

 

 

 

Less: net cash provided by (used in) Compressco operating activities

 (44,819

 (29,135

 (31,109

Plus: Compressco capital expenditures 

 48,137

 

 24,574

 

 20,947

 
Plus: distributions received from Compressco 

 24,118

 

 22,123

 

 20,219

 
Free cash flow excluding Maritech and Compressco 

 $85,318

 

 $79,948

 

 $14,621

 
             



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Market Capitalization
Market Capitalization is defined as the price per share of stock at the end of a period multiplied by the average number of shares outstanding as reported in the Company's most recently filed Form 10-K or Form 10-Q. A reconciliation as of December 31, 2014, December 31, 2013 and December 31, 2012 is shown below:

  Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012  
 

(In Thousands, Except Per Share Amounts) 

 

Stock price per share at end of period

$6.68

 

$12.36

 

$7.59

 

Average number of shares outstanding

78,600

 

77,954

 

77,293

 

Market capitalization

$525,048

 

$963,511

 

$586,654

 

 

 

 

 

 

 

 



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EBITDA
EBITDA is defined as net income (loss) attributable to TETRA stockholders plus net interest expense, plus income tax provision, plus depreciation, amortization, and accretion. Management views EBITDA, a non-GAAP measure, as a measure of operating performance without regard to items such as interest expense, taxes, depreciation, depletion and amortization, which can vary substantially from company to company. A reconciliation of EBITDA to net income attributable to TETRA stockholders as of December 31, 2014, December 31, 2013, and December 31, 2012, and a reconciliation of trailing twelve month EBITDA to net income attributable to TETRA stockholders as of December 31, 2014, is shown below:

  Year Ended  
  Dec. 31, 2014  

 Dec. 31, 2013

Dec. 31, 2012

  (In Thousands)   

Net income (loss) attributable to
  TETRA stockholders

$(169,678

$153

 

$15,960

 

Net interest expense

31,998  

 17,121

 

17,080

 

Income tax provision (benefit)

9,704  

 (3,454

9,429

 

Depreciation, amortization, and accretion

216,049  

90,563

 

84,107

 

EBITDA

$88,073  

 $104,383

 

$126,576

 

 

 

   

 

 

 



  TTM as of EBITDA for the three months ended
  Dec. 31, 2014

Dec. 31, 2014

Sept. 30, 2014

June 30, 
2014

Mar. 31, 2014

  (In Thousands)

Net income (loss) attributable to
  TETRA stockholders

$(169,678

$(149,750

$(10,537

$(2,457

$(6,934

Net interest expense

31,998

 

12,805

 

9,878

 

4,604

 

4,711

 

Income tax provision (benefit)

9,704

 

27,601

 

(12,360

(944

(4,593

Depreciation, amortization, and accretion

216,049

 

137,768

 

33,234

 

22,007

 

23,040

 

EBITDA

$88,073

 

$28,424

 

$20,215

 

$23,210

 

$16,224

 

 

 

 

 

 

 

 

 

 

 

 



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