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| 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. |
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Capitalization
Enterprise Value
Free Cash Flow
Market Capitalization
Net Capital Employed
Adjusted Net Income Per Share
Capitalization
Capitalization is defined as total stockholders' equity plus long-term debt and the current portion of long-term debt. A reconciliation as of December 31, 2007, 2006, and 2005, is shown below:
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Dec. 31, 2007 |
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Dec. 31, 2006 |
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Dec. 31, 2005 |
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(In Thousands) |
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Total stockholders' equity
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$447,919 |
|
$420,380 |
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$284,147 |
|
|
Long-term debt
|
358,024 |
|
336,381 |
|
157,270 |
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Current portion of long-term debt
|
- |
|
167 |
|
- |
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Capitalization
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$805,943 |
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$756,928 |
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$441,417 |
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Enterprise Value
Enterprise Value is defined as market capitalization plus long-term debt and the current portion of long-term debt, less cash (other than restricted cash). 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, 2007, 2006, and 2005, is shown below:
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Dec. 31, 2007 |
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Dec. 31, 2006 |
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Dec. 31, 2005 |
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(In Thousands) |
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Market capitalization
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$1,182,090 |
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$1,913,998 |
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$1,100,811 |
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Long-term debt
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358,024 |
|
336,381 |
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157,270 |
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Current portion of long-term debt
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– |
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167 |
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– |
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Cash
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(21,833 |
)
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(5,535 |
)
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(1,597 |
) |
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Enterprise value
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$1,518,281 |
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$2,245,011 |
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$1,256,484 |
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Free Cash Flow
Free Cash Flow is defined as net cash provided by operating activities minus net cash used in investing activities (from the consolidated statements of cash flows). Net 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. Net cash used in investing activities includes capital expenditures, acquisitions, and other cash used in investing activities. Management views Free Cash Flow, 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 net cash provided by operating activities to Free Cash Flow for the years ended December 31, 2007, 2006, and 2005, is shown below:
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Year Ended Dec. 31, 2007 |
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Year Ended Dec. 31, 2006 |
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Year Ended Dec. 31, 2005 |
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(In Thousands) |
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Net cash provided by operating activities
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$209,039 |
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$47,781 |
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$45,077 |
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Net cash used in investing activities
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(235,178 |
)
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(241,892 |
)
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(76,552 |
)
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Free cash flow
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$(26,139 |
)
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$(194,111 |
)
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$(31,475 |
)
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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 fully diluted shares outstanding, as reported in the Company's most recently filed Form 10-K or 10-Q. A reconciliation as of December 31, 2007, 2006, and 2005, is shown below:
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Dec. 31, 2007 |
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Dec. 31, 2006 |
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Dec. 31, 2005 |
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(In Thousands, Except Per Share Amounts) |
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Stock price per share at end of period
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$15.57 |
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$25.58 |
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$15.26 |
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Average number of fully diluted shares outstanding
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75,921 |
|
74,824 |
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72,137 |
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Market capitalization
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$1,182,090 |
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$1,913,998 |
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$1,100,811 |
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Net Capital Employed
Net Capital Employed is defined as total stockholders' equity plus long-term debt and the current portion of long-term debt, less cash (other than restricted cash). A reconciliation as of December 31, 2007, 2006, and 2005, is shown below:
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Dec. 31, 2007 |
|
Dec. 31, 2006 |
|
Dec. 31, 2005 |
|
(In Thousands) |
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Total stockholders' equity
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$447,919 |
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$420,380 |
|
$284,147 |
|
Long-term debt
|
358,024 |
|
336,381 |
|
157,270 |
|
Current portion of long-term debt
|
– |
|
167 |
|
– |
|
Cash
|
(21,833 |
)
|
(5,535 |
)
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(1,597) |
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Net capital employed
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$784,110 |
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$751,393 |
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$439,820 |
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Adjusted Net Income Per Share
GAAP net income per diluted share is reconciled to the non-GAAP measure "adjusted net income per diluted share" for the fourth quarter and year 2007, as those terms are used in our February 26, 2008 press release.
Please click here to view the financial table.
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