TETRA Technologies, Inc. Announces Second Quarter 2003 Earnings of $0.41 Per Share.Energy Editors/Business Editors THE WOODLANDS Woodlands refers to several places:
TETRA tetra: see characin. tetra Any of numerous attractively coloured freshwater South American and African fishes (family Characidae), often kept in home aquariums. Tetras are small, lively, hardy, and unaggressive. Technologies, Inc. ("TETRA" or the "Company") (NYSE NYSE See: New York Stock Exchange :TTI TTI Texas Transportation Institute TTI Thoracic Trauma Index TTI Transmission Time Interval TTI Travel Time Index TTI Travel Technology Initiative TTI Technology Transfer Initiative TTI Traffic and Traveller Information TTI Technology Transfer Institute ) today announced that its second quarter 2003 earnings were $0.41 per share, fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. . The $0.41 corresponds to the $0.24 per share reported in the second quarter of 2002 and the $0.13 per share (excluding the cumulative effect of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 143) reported in the first quarter of 2003. Consolidated revenues for the quarter ended June June: see month. 30, 2003 were $87,974,000 versus the $62,716,000 reported in the second quarter of 2002. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. were $24,727,000 in the second quarter of 2003 versus the $16,285,000 reported in the comparable period in 2002. Net income was $6,264,000 versus the $3,629,000 recorded in the second quarter of 2002. Consolidated results per share for the second quarter of 2003 were earnings of $0.41 with 15,272,000 weighted average diluted common and common equivalent shares outstanding versus $0.24 with 15,093,000 weighted average diluted common and common equivalent shares outstanding in the second quarter of 2002. Divisional pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings for the second quarter of 2003 versus the first quarter of 2003 and the second quarter of 2002 were, respectively: Fluids - $3,960,000 in 2Q 2003, $3,283,000 in 1Q 2003 and $3,936,000 in 2Q 2002; Well Abandonment & Decommissioning Decommissioning is a general term for a formal process to remove something from operational status. Some specific instances include:
Financial data aggregating the first six months of 2003 versus the comparable data for 2002 is available in the accompanying exhibit to this press release. Geoffrey Geoffrey (jĕf`rē), 1158–86, duke of Brittany (1171–86); fourth son of Henry II of England. Betrothed (1166) to Constance, heiress of Brittany, he was recognized as heir to the duchy in 1169 and succeeded to it on the death of her M. Hertel, Chief Executive Officer, stated, "Our results in the second quarter began to reflect the impact from our growing Well Abandonment & Decommissioning Division. This Division, when coupled with our cyclically improving Fluids and Testing & Services Divisions, should allow us to attain our earnings guidance range of $1.31 - $1.61 per share in 2003 and also generate growth in 2004. "During much of 2002 and early 2003, TETRA was positioning its Well Abandonment & Decommissioning (WA&D) Division to take advantage of what we considered a growth market for 2003 and beyond. Unfortunately, the higher infrastructure costs we incurred to position TETRA coincided with a general slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. for energy services. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite this, we chose to build for the future, recognizing the negative short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. impact on our earnings. By the most recent quarter, TETRA had expanded its infrastructure and tied up a substantial base-load of work. The positive impact of this long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy began to be reflected in earnings in this quarter. Quarterly profits for the WA&D Division set a record in the second quarter - a record we hope to surpass in the current quarter (weather permitting). Due to seasonal factors, a large portion of our decommissioning activities occur in the May through September time period. "Fluids profitability improved slightly over both 2Q 2002 and 1Q 2003 levels. In the recent quarter, domestic fluids profits rose versus both prior periods. Sequentially, international fluids profits also improved. As the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east drilling cycle begins to improve, we expect our domestic fluids business will escalate es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. its recovery. This cyclically improving market should help increase our second half of 2003 and full year 2004 profits. "Our Testing & Services Division reported improved sequential earnings, but reduced profits versus 2Q 2002 levels. Given the lag time associated with our testing business, TETRA is now just beginning to see the improvement in activity relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the growing domestic natural gas rig count. This should translate into profit improvement in the second half of 2003 and in 2004. Additionally, a contract for services by our TETRA Process Services subsidiary in Norway has lost money for the last four quarters, with most of our commitment under that contract having been fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. by the end of the most recent quarter. "TETRA's businesses not only generate earnings, they also generate cash flow. So far in 2003, after paying for all capital expenditures and changes in working capital needs, TETRA has used its surplus cash flow to reduce its already low long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . At year-end 2002 our long-term debt (including the current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. and capital leases) stood at $37.4 million. At March 31, 2003 that number had been further reduced to $27.4 million. Since then, additional long-term debt payments have been made. At July 21, 2003, the outstanding long-term debt was approximately $15.3 million. Our cash generation potential and equity-heavy balance sheet are two of TETRA's financial strengths. "At TETRA, we look to the second half of 2003 and all of 2004 with great optimism and enthusiasm. Our financial 'house' is in order, giving us great latitude latitude, angular distance of any point on the surface of the earth north or south of the equator. The equator is latitude 0°, and the North Pole and South Pole are latitudes 90°N and 90°S, respectively. regarding internal or external expansion. Our unique strategy regarding the well abandonment and decommissioning markets should create growth opportunities for the future. The cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. recovery in our Fluids and Testing & Services Divisions should become evident later this year. The combination of these factors are the reasons that we are confident in our earnings guidance for 2003. These factors should also allow us to have a record year in 2004," stated Hertel. TETRA is an oil and gas services company, including an integrated calcium chloride calcium chloride, CaCl2, chemical compound that is crystalline, lumpy, or flaky, is usually white, and is very soluble in water. The anhydrous compound is hygroscopic; it rapidly absorbs water and is used to dry gases by passing them through it. and brominated products manufacturing operation that supplies feedstocks to energy markets, as well as other markets. This press release includes certain statements that are deemed to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . These 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performances 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 "Certain Business Risks" contained in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002.
TETRA Technologies, Inc.
(In Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-----------------------------------
2003 2002 2003 2002
-------- -------- -------- --------
Revenues
-----------------------------------
Fluids Division $29,239 $25,572 $55,549 $52,968
WA&D Division 44,018 22,351 69,368 38,838
Testing & Services Division 15,134 15,395 29,073 29,668
Eliminations and other (417) (602) (766) (957)
-------- -------- -------- --------
Total revenues 87,974 62,716 153,224 120,517
Gross profit
-----------------------------------
Fluids Division 7,672 7,797 14,122 15,686
WA&D Division 13,599 3,516 18,275 6,868
Testing & Services Division 3,454 5,005 5,689 9,280
Eliminations and other 2 (33) (9) (38)
-------- -------- -------- --------
Total gross profit 24,727 16,285 38,077 31,796
General and administrative expense 14,841 9,878 25,638 19,265
-------- -------- -------- --------
Operating income 9,886 6,407 12,439 12,531
Interest expense, net 69 597 277 1,260
Other expense (income) 90 265 (493) (120)
-------- -------- -------- --------
-- Income before taxes and
cumulative effect of change
in accounting principle 9,727 5,545 12,655 11,391
Provision for income taxes 3,463 1,916 4,505 4,079
-------- -------- -------- --------
Income before cumulative effect
of change in accounting
principle 6,264 3,629 8,150 7,312
Cumulative effect of change in
accounting principle (SFAS 143) - - (1,464) -
-------- -------- -------- --------
Net income $6,264 $3,629 $6,686 $7,312
======== ======== ======== ========
-- Income before taxes and
cumulative effect of
change in accounting principle
Fluids Division 3,960 3,936 7,243 8,367
WA&D Division 9,686 1,645 11,702 3,622
Testing & Services Division 1,464 3,337 2,441 6,458
Administrative (5,383) (3,373) (8,731) (7,056)
------- ------- ------- -------
Total 9,727 5,545 12,655 11,391
----------------------------------------------------------------------
Net income per share before cumulative
effect of change in accounting
principle:
Basic $0.43 $0.25 $0.56 $0.52
======= ======= ======= =======
Diluted $0.41 $0.24 $0.54 $0.49
======= ======= ======= =======
Net income per share after cumulative
effect of change in accounting
principle:
Basic $0.43 $0.25 $0.46 $0.52
======= ======= ======= =======
Diluted $0.41 $0.24 $0.44 $0.49
======= ======= ======= =======
Weighted average shares outstanding:
Basic 14,494 14,251 14,460 14,184
======= ======= ======= =======
Diluted 15,272 15,093 15,075 14,977
======= ======= ======= =======
Depreciation, depletion, amortization
and accretion expense 7,832 5,326 15,356 10,030
Balance Sheet June 30, 2003
------------------------------------------------- -------------------
Cash $868
Accounts receivable 84,316
Inventories 36,002
Other current assets 12,850
PP&E, net 160,970
Other assets 33,980
-------------------
Total assets $328,986
===================
Current portion of long-term debt $198
Other current liabilities 60,125
Long-term debt 22,125
Other long-term liabilities 55,223
Equity 191,315
-------------------
Total liabilities and equity $328,986
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