TETRA TECHNOLOGIES, INC. ANNOUNCES FIRST QUARTER 2024 FINANCIAL RESULTS
- First quarter revenue of
$151 million increased 3% year-over-year. - First quarter net income was
$915,000 and net income per share attributable to TETRA stockholders was$0.01 . - First quarter net cash used in operating activities was
$13.8 million while adjusted free cash flow was a use of$29.6 million . - First quarter net income per share excluding unusual items was
$0.05 . Adjusted EBITDA of$22.8 million increased 11% year-over-year. - Term loan refinanced with a delayed draw feature for the bromine project and a 2030 maturity.
First Quarter Results
First quarter 2024 revenue of $151 million increased 3% from the first quarter of 2023 but decreased 1% from the fourth quarter of 2023 reflecting the
"First quarter cash flow from operating activities was a use of
"Water & Flowback Services revenue of $74 million declined 4.5% year-on-year and 8.5% from the fourth quarter of 2023, which included the sale of an early production facility in Argentina. Net income before taxes for the quarter was
"Completion Fluids & Products experienced a strong rebound to start the year and we expect results for the first half of 2024 to exceed results for the first half of 2023. Completion Fluids & Products first quarter revenue of $77 million increased 12% year-on-year. Sequentially, revenue increased 6.5% reflecting strong momentum, particularly in the
This press release includes the following financial measures that are not presented in accordance with generally accepted accounting principles in
First Quarter Results and Highlights
A summary of key financial metrics for the first quarter are as follows:
|
Three Months Ended |
||||
|
|
|
|
|
|
|
(in thousands, except per share amounts) |
||||
Revenue |
$ 150,972 |
|
$ 153,126 |
|
$ 146,209 |
Income (loss) before discontinued operations |
915 |
|
(4,239) |
|
6,045 |
Adjusted EBITDA |
22,840 |
|
24,142 |
|
20,587 |
Net income (loss) per share attributable to TETRA stockholders |
0.01 |
|
(0.03) |
|
0.05 |
Adjusted net income per share |
0.05 |
|
0.03 |
|
0.03 |
Net cash provided by (used in) operating activities |
(13,816) |
|
18,875 |
|
8,985 |
Adjusted free cash flow(1) |
$ (29,617) |
|
$ 20,073 |
|
$ (3,716) |
|
|
(1) |
For the three months ended |
Free Cash Flow, Balance Sheet and Income Taxes
Cash from operating activities was a use of
Non-recurring Charges and Expenses
Non-recurring credits, charges and expenses are reflected on Schedule E and include the following:
-
$5.5 million of loss on debt extinguishment primarily from non-cash unamortized finance costs expensed in connection with the repayment of our prior Term Credit Agreement inJanuary 2024 . -
$0.2 million of non-cash stock appreciation right credits and$0.1 million of other credits.
Unrealized gains on investments totaling
Conference Call
TETRA will host a conference call to discuss these results tomorrow,
Investor Contact
For further information, please contact
Financial Statements, Schedules and Non-GAAP Reconciliation Schedules (Unaudited)
Schedule A: Consolidated Income Statement
Schedule B: Condensed Consolidated Balance Sheet
Schedule C: Consolidated Statements of Cash Flows
Schedule D: Statement Regarding Use of Non-GAAP Financial Measures
Schedule E: Non-GAAP Reconciliation of Adjusted Net Income
Schedule F: Non-GAAP Reconciliation of Adjusted EBITDA
Schedule G: Non-GAAP Reconciliation of Net Debt
Schedule H: Non-GAAP Reconciliation to Adjusted Free Cash Flow
Schedule I: Non-GAAP Reconciliation to Net Leverage Ratio
Schedule J: Non-GAAP Reconciliation to Return on Net Capital Employed
Company Overview
Cautionary Statement Regarding Forward Looking Statements
This news release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as "may," "see," "expectation," "expect," "intend," "estimate," "projects," "anticipate," "believe," "assume," "could," "should," "plans," "targets" or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements that the Company intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements concerning economic and operating conditions that are outside of our control, including statements concerning recovery of the oil and gas industry; customer delays for international completion fluids related to global shipping and logistics issues; potential revenue associated with prospective energy storage projects or our pending carbon capture partnership; measured, indicated and inferred mineral resources of lithium and/or bromine, the potential extraction of lithium and bromine from our Evergreen Brine Unit and other leased acreage, the economic viability thereof, the demand for such resources, the timing and costs of such activities, and the expected revenues and profits from such activities; the accuracy of our resources report and initial economic assessment regarding our lithium and bromine acreage; projections or forecasts concerning the Company's business activities, profitability, estimated earnings, earnings per share, and statements regarding the Company's beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. With respect to the Company's disclosures of measured, indicated and inferred mineral resources, including bromine and lithium carbonate equivalent concentrations, it is uncertain if they will ever be economically developed. Investors are cautioned that mineral resources do not have demonstrated economic value and further exploration may not result in the estimation of a mineral reserve. Further, there are a number of uncertainties related to processing lithium, which is an inherently difficult process. Therefore, you are cautioned not to assume that all or any part of our resources can be economically or legally commercialized. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to several risks and uncertainties, many of which are beyond the control of the Company. With respect to the Company's disclosures regarding the joint venture with Saltwerx, it is uncertain about the ability of the parties to successfully negotiate one or more definitive agreements, the future relationship between the parties, and the ability to successfully and economically produce lithium and bromine from the Evergreen Brine Unit. Investors are cautioned that any such statements are not guarantees of future performance or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled "Risk Factors" contained in the Company's Annual Reports on Form 10-K, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the
Schedule A: Consolidated Income Statement (Unaudited) |
|||||
|
|||||
|
Three Months Ended |
||||
|
|
|
|
|
|
|
(in thousands, except per share amounts) |
||||
Revenues |
$ 150,972 |
|
$ 153,126 |
|
$ 146,209 |
|
|
|
|
|
|
Cost of sales, services, and rentals |
111,114 |
|
112,070 |
|
104,066 |
Depreciation, amortization, and accretion |
8,756 |
|
8,624 |
|
8,670 |
Impairments and other charges |
— |
|
2,189 |
|
— |
Insurance recoveries |
— |
|
— |
|
(2,850) |
Total cost of revenues |
119,870 |
|
122,883 |
|
109,886 |
Gross profit |
31,102 |
|
30,243 |
|
36,323 |
Exploration and appraisal costs |
— |
|
5,283 |
|
720 |
General and administrative expense |
22,298 |
|
23,336 |
|
23,191 |
Interest expense, net |
5,952 |
|
5,677 |
|
5,092 |
Loss on debt extinguishment |
5,535 |
|
— |
|
— |
Other income, net |
(3,978) |
|
(422) |
|
(214) |
Income (loss) before taxes and discontinued operations |
1,295 |
|
(3,631) |
|
7,534 |
Provision for income taxes |
380 |
|
608 |
|
1,489 |
Income (loss) before discontinued operations |
915 |
|
(4,239) |
|
6,045 |
Discontinued operations: |
|
|
|
|
|
Income (loss) from discontinued operations, net of taxes |
— |
|
346 |
|
(12) |
Net income (loss) |
915 |
|
(3,893) |
|
6,033 |
Loss attributable to noncontrolling interest |
— |
|
2 |
|
7 |
Net income (loss) attributable to TETRA stockholders |
$ 915 |
|
$ (3,891) |
|
$ 6,040 |
|
|
|
|
|
|
Basic per share information: |
|
|
|
|
|
Net income (loss) attributable to TETRA stockholders |
$ 0.01 |
|
$ (0.03) |
|
$ 0.05 |
Weighted average shares outstanding |
130,453 |
|
130,079 |
|
128,940 |
|
|
|
|
|
|
Diluted per share information: |
|
|
|
|
|
Net income (loss) attributable to TETRA stockholders |
$ 0.01 |
|
$ (0.03) |
|
$ 0.05 |
Weighted average shares outstanding |
132,123 |
|
130,079 |
|
129,975 |
Schedule B: Condensed Consolidated Balance Sheet (Unaudited) |
|||
|
|||
|
|
|
|
|
(in thousands) |
||
|
(unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 35,939 |
|
$ 52,485 |
Trade accounts receivable |
132,429 |
|
111,798 |
Inventories |
94,285 |
|
96,536 |
Prepaid expenses and other current assets |
24,911 |
|
21,196 |
Total current assets |
287,564 |
|
282,015 |
Property, plant, and equipment, net |
113,369 |
|
107,716 |
Other intangible assets, net |
28,073 |
|
29,132 |
Operating lease right-of-use assets |
30,964 |
|
31,915 |
Investments |
20,386 |
|
17,354 |
Other assets |
10,969 |
|
10,829 |
Total long-term assets |
203,761 |
|
196,946 |
Total assets |
$ 491,325 |
|
$ 478,961 |
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Trade accounts payable |
$ 47,491 |
|
$ 52,290 |
Compensation and employee benefits |
19,232 |
|
26,918 |
Operating lease liabilities, current portion |
8,731 |
|
9,101 |
Accrued taxes |
13,192 |
|
10,350 |
Accrued liabilities and other |
29,280 |
|
27,303 |
Total current liabilities |
117,926 |
|
125,962 |
Long-term debt, net |
179,394 |
|
157,505 |
Operating lease liabilities |
26,738 |
|
27,538 |
Asset retirement obligations |
14,645 |
|
14,199 |
Deferred income taxes |
2,176 |
|
2,279 |
Other liabilities |
4,299 |
|
4,144 |
Total long-term liabilities |
227,252 |
|
205,665 |
Commitments and contingencies |
|
|
|
TETRA stockholders' equity |
147,404 |
|
148,591 |
Noncontrolling interests |
(1,257) |
|
(1,257) |
Total equity |
146,147 |
|
147,334 |
Total liabilities and equity |
$ 491,325 |
|
$ 478,961 |
Schedule C: Consolidated Statements of Cash Flows (Unaudited) |
|||||
|
|||||
|
Three Months Ended |
||||
|
|
|
|
|
|
|
(in thousands) |
||||
Operating activities: |
|
|
|
|
|
Net income (loss) |
$ 915 |
|
$ (3,893) |
|
$ 6,033 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
Depreciation, amortization, and accretion |
8,755 |
|
8,624 |
|
8,670 |
Impairments and other charges |
— |
|
2,189 |
|
— |
(Gain) loss on investments |
(2,795) |
|
(696) |
|
505 |
Equity-based compensation expense |
1,623 |
|
6,423 |
|
1,276 |
Provision for (recovery of) credit losses |
(115) |
|
95 |
|
(21) |
Amortization and expense of financing costs |
380 |
|
726 |
|
884 |
Loss on debt extinguishment |
5,535 |
|
— |
|
— |
Insurance recoveries associated with damaged equipment |
— |
|
— |
|
(2,850) |
Gain on sale of assets |
(29) |
|
(130) |
|
(170) |
Other non-cash credits |
(553) |
|
(244) |
|
(100) |
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable |
(19,605) |
|
12,565 |
|
12,626 |
Inventories |
1,542 |
|
(3,215) |
|
(11,313) |
Prepaid expenses and other current assets |
(3,918) |
|
863 |
|
4,496 |
Trade accounts payable and accrued expenses |
(5,577) |
|
(3,021) |
|
(11,179) |
Other |
26 |
|
(1,411) |
|
128 |
Net cash provided by (used in) operating activities |
(13,816) |
|
18,875 |
|
8,985 |
Investing activities: |
|
|
|
|
|
Purchases of property, plant, and equipment, net |
(15,827) |
|
(7,912) |
|
(12,784) |
Proceeds from sale of investments |
— |
|
3,900 |
|
— |
Proceeds from sale of property, plant, and equipment |
251 |
|
6,003 |
|
289 |
Insurance recoveries associated with damaged equipment |
— |
|
— |
|
2,850 |
Other investing activities |
(172) |
|
(100) |
|
(1,552) |
Net cash provided by (used in) investing activities |
(15,748) |
|
1,891 |
|
(11,197) |
Financing activities: |
|
|
|
|
|
Proceeds from credit agreements and long-term debt |
184,456 |
|
145 |
|
52,756 |
Principal payments on credit agreements and long-term debt |
(163,215) |
|
(2,056) |
|
(47,362) |
Payments on financing lease obligations |
(277) |
|
(858) |
|
(258) |
Tax remittances on equity based compensation |
(2,339) |
|
— |
|
— |
Debt issuance costs and other financing activities |
(5,277) |
|
— |
|
— |
Net cash provided by (used in) financing activities |
13,348 |
|
(2,769) |
|
5,136 |
Effect of exchange rate changes on cash |
(330) |
|
662 |
|
167 |
Increase (decrease) in cash and cash equivalents |
(16,546) |
|
18,659 |
|
3,091 |
Cash and cash equivalents at beginning of period |
52,485 |
|
33,826 |
|
13,592 |
Cash and cash equivalents at end of period |
$ 35,939 |
|
$ 52,485 |
|
$ 16,683 |
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
|
Interest paid |
$ 5,406 |
|
$ 4,889 |
|
$ 4,513 |
Income taxes paid |
$ 433 |
|
$ 864 |
|
$ 1,358 |
Accrued capital expenditures at end of period |
$ 3,908 |
|
$ 5,171 |
|
$ 2,490 |
Schedule D: Statement Regarding Use of Non-GAAP Financial Measures
In addition to financial results determined in accordance with U.S. GAAP, this press release may include the following non-GAAP financial measures for the Company: adjusted net income per share; consolidated and segment Adjusted EBITDA; segment Adjusted EBITDA as a percent of revenue ("Adjusted EBITDA margin"); adjusted net income, adjusted free cash flow; net debt, net leverage ratio, and return on net capital employed. The following schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable
Management believes that the exclusion of the special charges and credits from the historical results of operations enables management to evaluate more effectively the Company's operations over the prior periods and to identify operating trends that could be obscured by the excluded items.
Adjusted net income is defined as the Company's income (loss) before noncontrolling interests and discontinued operations, excluding certain special or other charges (or credits), and including noncontrolling interest attributable to continued operations. Adjusted net income is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.
Adjusted net income per share is defined as the Company's diluted net income per share attributable to TETRA stockholders excluding certain special or other charges (or credits). Adjusted net income per share is used by management as a supplemental financial measure to assess financial performance, without regard to charges or credits that are considered by management to be outside of its normal operations.
Adjusted EBITDA is defined as net income (loss) before taxes and discontinued operations, excluding impairments, exploration and pre-development costs, certain special, non-recurring or other charges (or credits), including loss on debt extinguishment, interest, depreciation and amortization, income from collaborative arrangement and certain non-cash items such as equity-based compensation expense. The most directly comparable GAAP financial measure is net income (loss) before taxes and discontinued operations. Exploration and pre-development costs represent expenditures incurred to evaluate potential future development of TETRA's lithium and bromine properties in
Adjusted free cash flow is defined as cash from operations less capital expenditures net of sales proceeds and cost of equipment sold, less payments on financing lease obligations and including cash distributions to TETRA from investments and cash from sales of investments. Management uses this supplemental financial measure to:
- assess the Company's ability to retire debt;
- evaluate the capacity of the Company to further invest and grow; and
- to measure the performance of the Company as compared to its peer group.
Adjusted free cash flow does not necessarily imply residual cash flow available for discretionary expenditures, as they exclude cash requirements for debt service or other non-discretionary expenditures that are not deducted.
Net debt is defined as the sum of the carrying value of long-term and short-term debt on its consolidated balance sheet, less cash, excluding restricted cash on the balance sheet. Management views net debt as a measure of TETRA's ability to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund investing and financing activities.
Net leverage ratio is defined as debt excluding financing fees & discount on term loan and including letters of credit and guarantees, less cash divided by trailing twelve months adjusted EBITDA for credit facilities. Adjusted EBITDA for credit facilities consists of adjusted EBITDA described above, less non-cash (gain) loss on sale of investments, (gain) loss on sales of assets and excluding certain special or other charges (or credits). Management primarily uses this metric to assess TETRA's ability to borrow, reduce debt, add to cash balances, pay distributions, and fund investing and financing activities.
Return on net capital employed is defined as Adjusted EBIT divided by average net capital employed. Adjusted EBIT is defined as net income (loss) before taxes and discontinued operations, interest, and certain non-cash charges, and non-recurring adjustments. Net capital employed is defined as assets, excluding assets associated with discontinued operations, plus impaired assets, less cash and cash equivalents and restricted cash, and less current liabilities, excluding current liabilities associated with discontinued operations. Average net capital employed is calculated as the average of the beginning and ending net capital employed for the respective periods. Return on net capital employed is used by management as a supplemental financial measure to assess the financial performance of the Company relative to assets, without regard to financing methods or capital structure.
Schedule E: Non-GAAP Reconciliation of Adjusted Net Income (Unaudited) |
|||||
|
|||||
|
Three Months Ended |
||||
|
|
|
|
|
|
|
(in thousands, except per share amounts) |
||||
|
|
|
|
|
|
Income (loss) before taxes and discontinued operations |
$ 1,295 |
|
$ (3,631) |
|
$ 7,534 |
Provision for income taxes |
380 |
|
608 |
|
1,489 |
Noncontrolling interest attributed to continuing operations |
— |
|
2 |
|
7 |
Income (loss) from continuing operations |
915 |
|
(4,241) |
|
6,038 |
Insurance recoveries |
— |
|
3 |
|
(2,850) |
Impairments and other charges |
— |
|
2,189 |
|
— |
Exploration and pre-development costs |
— |
|
2,684 |
|
720 |
Adjustment to long-term incentives |
— |
|
281 |
|
353 |
Former CEO stock appreciation right credit |
(186) |
|
(789) |
|
(307) |
Transaction, legal, and other expenses |
(135) |
|
255 |
|
82 |
Loss on debt extinguishment |
5,535 |
|
— |
|
— |
Unusual foreign exchange loss |
— |
|
2,444 |
|
— |
Unusual tax provision |
— |
|
951 |
|
— |
Adjusted net income |
$ 6,129 |
|
$ 3,777 |
|
$ 4,036 |
|
|
|
|
|
|
Diluted per share information |
|
|
|
|
|
Net income (loss) attributable to TETRA stockholders |
$ 0.01 |
0 |
$ (0.03) |
|
$ 0.05 |
Adjusted net income |
$ 0.05 |
|
$ 0.03 |
|
$ 0.03 |
Diluted weighted average shares outstanding |
132,123 |
|
130,079 |
|
129,975 |
Schedule F: Non-GAAP Reconciliation of Adjusted EBITDA (Unaudited) |
|||||||||
|
|||||||||
|
Three Months Ended |
||||||||
|
Completion |
|
Water & |
|
Corporate |
|
Corporate |
|
Total |
|
(in thousands, except percents) |
||||||||
Revenues |
$ 77,282 |
|
$ 73,690 |
|
$ — |
|
$ — |
|
$ 150,972 |
Net income (loss) before taxes and discontinued operations |
19,792 |
|
721 |
|
(11,101) |
|
(8,117) |
|
1,295 |
Former CEO stock appreciation right credit |
— |
|
— |
|
(186) |
|
— |
|
(186) |
Transaction, restructuring, and other expenses |
(159) |
|
— |
|
24 |
|
— |
|
(135) |
Loss on debt extinguishment |
— |
|
— |
|
— |
|
5,535 |
|
5,535 |
Interest (income) expense, net |
(269) |
|
76 |
|
— |
|
6,145 |
|
5,952 |
Depreciation, amortization, and accretion |
2,387 |
|
6,288 |
|
— |
|
81 |
|
8,756 |
Equity-based compensation expense |
— |
|
— |
|
1,623 |
|
— |
|
1,623 |
Adjusted EBITDA |
$ 21,751 |
|
$ 7,085 |
|
$ (9,640) |
|
$ 3,644 |
|
$ 22,840 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of revenue |
28.1 % |
|
9.6 % |
|
|
|
|
|
15.1 % |
|
|||||||||
|
Three Months Ended |
||||||||
|
Completion |
|
Water & |
|
Corporate |
|
Corporate |
|
Total |
|
(in thousands, except percents) |
||||||||
Revenues |
$ 72,556 |
|
$ 80,570 |
|
$ — |
|
$ — |
|
$ 153,126 |
Net income (loss) before taxes and discontinued operations |
10,984 |
|
2,855 |
|
(11,929) |
|
(5,541) |
|
(3,631) |
Insurance recoveries |
3 |
|
— |
|
— |
|
— |
|
3 |
Impairments and other charges |
2,189 |
|
— |
|
— |
|
— |
|
2,189 |
Exploration, pre-development costs, and collaborative arrangements |
2,684 |
|
— |
|
— |
|
— |
|
2,684 |
Adjustment to long-term incentives |
— |
|
— |
|
281 |
|
— |
|
281 |
Former CEO stock appreciation right credit |
— |
|
— |
|
(789) |
|
— |
|
(789) |
Transaction, restructuring, and other expenses |
— |
|
— |
|
255 |
|
— |
|
255 |
Unusual foreign exchange loss |
— |
|
2,444 |
|
— |
|
— |
|
2,444 |
Interest (income) expense, net |
(47) |
|
(38) |
|
— |
|
5,762 |
|
5,677 |
Depreciation, amortization, and accretion |
2,508 |
|
6,019 |
|
— |
|
96 |
|
8,623 |
Equity-based compensation expense |
— |
|
— |
|
6,406 |
|
— |
|
6,406 |
Adjusted EBITDA |
$ 18,321 |
|
$ 11,280 |
|
$ (5,776) |
|
$ 317 |
|
$ 24,142 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of revenue |
25.3 % |
|
14.0 % |
|
|
|
|
|
15.8 % |
|
|||||||||
|
Three Months Ended |
||||||||
|
Completion |
|
Water & |
|
Corporate |
|
Corporate |
|
Total |
|
(in thousands, except percents) |
||||||||
Revenues |
$ 69,042 |
|
$ 77,167 |
|
$ — |
|
$ — |
|
$ 146,209 |
Net income (loss) before taxes and discontinued operations |
18,442 |
|
6,378 |
|
(11,059) |
|
(6,227) |
|
7,534 |
Insurance recoveries |
(2,850) |
|
— |
|
— |
|
— |
|
(2,850) |
Exploration, pre-development costs, and collaborative arrangements |
720 |
|
— |
|
— |
|
— |
|
720 |
Adjustment to long-term incentives |
— |
|
— |
|
353 |
|
— |
|
353 |
Former CEO stock appreciation right credit |
— |
|
— |
|
(307) |
|
— |
|
(307) |
Transaction, restructuring, and other expenses |
— |
|
— |
|
82 |
|
— |
|
82 |
Interest (income) expense, net |
(395) |
|
27 |
|
— |
|
5,460 |
|
5,092 |
Depreciation, amortization, and accretion |
2,052 |
|
6,509 |
|
— |
|
109 |
|
8,670 |
Equity-based compensation expense |
17 |
|
— |
|
1,276 |
|
— |
|
1,293 |
Adjusted EBITDA |
$ 17,986 |
|
$ 12,914 |
|
$ (9,655) |
|
$ (658) |
|
$ 20,587 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of revenue |
26.1 % |
|
16.7 % |
|
|
|
|
|
14.1 % |
Schedule G: Non-GAAP Reconciliation of Net Debt (Unaudited)
The following reconciliation of net debt is presented as a supplement to financial results prepared in accordance with GAAP. |
|||
|
|||
|
|
|
|
|
(in thousands) |
||
Unrestricted Cash |
$ 35,939 |
|
$ 52,485 |
|
|
|
|
Term Credit Agreement |
$ 179,394 |
|
$ 157,505 |
Net debt |
$ 143,455 |
|
$ 105,020 |
Schedule H: Non-GAAP Reconciliation to Adjusted Free Cash Flow (Unaudited) |
|||||
|
|||||
|
Three Months Ended |
||||
|
|
|
|
|
|
|
(in thousands) |
||||
Net cash provided by (used in) operating activities |
$ (13,816) |
|
$ 18,875 |
|
8,985 |
Capital expenditures, net of proceeds from asset sales |
(15,576) |
|
(1,909) |
|
(12,495) |
Payments on financing lease obligations |
(277) |
|
(845) |
|
(258) |
Distributions from investments |
52 |
|
52 |
|
52 |
Cash received from sales of investments |
— |
|
3,900 |
|
— |
Adjusted Free Cash Flow(1) |
$ (29,617) |
|
$ 20,073 |
|
$ (3,716) |
|
|
(1) |
For the three months ended |
Schedule I: Non-GAAP Reconciliation to Net Leverage Ratio (Unaudited) |
|||||||||
|
|||||||||
|
Three Months Ended |
|
Twelve |
||||||
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
||||||||
Net income (loss) before taxes and discontinued operations |
$ 1,295 |
|
$ (3,631) |
|
$ 6,716 |
|
$ 21,080 |
|
$ 25,460 |
Insurance recoveries |
— |
|
3 |
|
174 |
|
(5) |
|
172 |
Impairments and other charges |
— |
|
2,189 |
|
— |
|
777 |
|
2,966 |
Exploration, pre-development costs, and collaborative arrangements |
— |
|
2,684 |
|
1,842 |
|
(2,408) |
|
2,118 |
Adjustment to long-term incentives |
— |
|
281 |
|
501 |
|
391 |
|
1,173 |
Former CEO stock appreciation right expense (credit) |
(186) |
|
(789) |
|
1,073 |
|
260 |
|
358 |
Transaction, restructuring, and other expenses |
(135) |
|
255 |
|
108 |
|
57 |
|
285 |
Unusual foreign exchange loss |
— |
|
2,444 |
|
— |
|
— |
|
2,444 |
Loss on debt extinguishment |
5,535 |
|
— |
|
— |
|
— |
|
5,535 |
Interest expense, net |
5,952 |
|
5,677 |
|
5,636 |
|
5,944 |
|
23,209 |
Depreciation, amortization, and accretion |
8,756 |
|
8,623 |
|
8,578 |
|
8,458 |
|
34,415 |
Equity compensation expense |
1,623 |
|
6,406 |
|
1,431 |
|
1,492 |
|
10,952 |
Unrealized (gain) loss on investments |
(2,795) |
|
(696) |
|
560 |
|
(907) |
|
(3,838) |
Gain on sale of assets |
(29) |
|
(129) |
|
(151) |
|
(112) |
|
(421) |
Other debt covenant adjustments |
28 |
|
333 |
|
(393) |
|
883 |
|
851 |
Debt covenant adjusted EBITDA |
$ 20,044 |
|
$ 23,650 |
|
$ 26,075 |
|
$ 35,910 |
|
$ 105,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except ratio) |
Term credit agreement |
|
|
|
|
|
|
|
|
$ 190,000 |
Capital lease obligations |
|
|
|
|
|
|
|
|
3,142 |
Other obligations |
|
|
|
|
|
|
|
|
2,560 |
ABL letters of credit and guarantees |
|
|
|
|
|
|
|
|
543 |
Total debt and commitments |
|
|
|
|
|
|
|
|
196,245 |
Unrestricted cash |
|
|
|
|
|
|
|
|
35,939 |
Debt covenant net debt and commitments |
|
|
|
|
|
|
|
$ 160,306 |
|
Net leverage ratio |
|
|
|
|
|
|
|
|
1.5 |
Schedule J: Non-GAAP Reconciliation to Return on Net Capital Employed |
|||||||||
|
|||||||||
|
Three Months Ended |
|
Twelve |
||||||
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
||||||||
Net income (loss) before taxes and discontinued operations |
$ 1,295 |
|
$ (3,631) |
|
$ 6,716 |
|
$ 21,080 |
|
$ 25,460 |
Insurance recoveries |
— |
|
3 |
|
174 |
|
(5) |
|
172 |
Impairments and other charges |
— |
|
2,189 |
|
— |
|
777 |
|
2,966 |
Exploration, pre-development costs, and collaborative arrangements |
— |
|
2,684 |
|
1,842 |
|
(2,408) |
|
2,118 |
Adjustment to long-term incentives |
— |
|
281 |
|
500 |
|
322 |
|
1,103 |
Former CEO stock appreciation right expense (credit) |
(186) |
|
(789) |
|
1,074 |
|
329 |
|
428 |
Transaction, restructuring, and other expenses |
(135) |
|
255 |
|
108 |
|
57 |
|
285 |
Loss on debt extinguishment |
5,535 |
|
— |
|
— |
|
— |
|
5,535 |
Unusual foreign exchange loss |
— |
|
2,444 |
|
— |
|
— |
|
2,444 |
Interest expense, net |
5,952 |
|
5,677 |
|
5,636 |
|
5,944 |
|
23,209 |
Adjusted EBIT |
$ 12,461 |
|
$ 9,113 |
|
$ 16,050 |
|
$ 26,096 |
|
$ 63,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except ratio) |
||
Consolidated total assets |
|
|
|
|
|
|
$ 491,325 |
|
$ 435,584 |
Plus: assets impaired in last twelve months |
|
|
|
2,966 |
|
2,804 |
|||
Less: cash, cash equivalents, and restricted cash |
|
|
|
35,939 |
|
16,683 |
|||
Adjusted assets employed |
|
|
|
|
|
|
$ 458,352 |
|
$ 421,705 |
|
|
|
|
|
|
|
|
|
|
Consolidated current liabilities |
|
|
|
|
|
|
$ 117,926 |
|
$ 111,447 |
Less: current liabilities associated with discontinued operations |
|
|
|
— |
|
914 |
|||
Adjusted current liabilities |
|
|
|
|
|
|
$ 117,926 |
|
$ 110,533 |
|
|
|
|
|
|
|
|
|
|
Net capital employed |
|
|
|
|
|
|
$ 340,426 |
|
$ 311,172 |
Average net capital employed |
|
|
|
|
|
$ 325,799 |
|
|
|
Return on net capital employed for the
twelve months ended |
|
|
|
19.6 % |
|
|
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