TETRA Technologies, Inc (TTI) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $15.01 million, or $ 0.16 a share in the quarter, against a net profit of $9.76 million, or $0.12 a share in the last year period. On an adjusted basis, loss per share was at $0.05 for the quarter compared with a profit of $0.17a share in the same period last year. Revenue during the quarter plunged 42.14 percent to $176.55 million from $305.14 million in the previous year period. Gross margin for the quarter contracted 683 basis points over the previous year period to 16.29 percent. Total expenses were 99.91 percent of quarterly revenues, up from 90.29 percent for the same period last year. That has resulted in a contraction of 962 basis points in operating margin to 0.09 percent.
Operating income for the quarter was $0.16 million, compared with $29.62 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $15.01 million compared with $9.76 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 8.50 percent for the quarter compared to 3.20 percent in the last year period.
Stuart M. Brightman, TETRA's President and Chief Executive Officer, stated, “Despite a continued challenging market environment we saw sequential adjusted EBITDA margin improvements in Fluids, Compression and Offshore Services, reflecting our market position in each of these segments. We also experienced sequential revenue improvements in Production Testing (up 13%), Offshore Services (up 12%) and Fluids (up 3%). Our Fluids division executed one TETRA CS Neptune® deep water Gulf of Mexico project during the third quarter, and expects to start another in the fourth quarter. While we are seeing improvements in activity on the U.S. onshore side that are benefiting our production testing, calcium chloride sales, water management and wellhead compression, we believe the offshore markets will continue to be challenging.
Working capital increases sharply
TETRA Technologies, Inc has recorded an increase in the working capital over the last year. It stood at $182.54 million as at Sep. 30, 2016, up 48.42 percent or $59.55 million from $122.99 million on Sep. 30, 2015. Current ratio was at 2.59 as on Sep. 30, 2016, up from 1.43 on Sep. 30, 2015. Days sales outstanding went down to 50 days for the quarter compared with 59 days for the same period last year.
Days inventory outstanding has decreased to 40 days for the quarter compared with 64 days for the previous year period.
Debt comes down significantly
TETRA Technologies, Inc has recorded a decline in total debt over the last one year. It stood at $738.03 million as on Sep. 30, 2016, down 59.87 percent or $1,100.92 million from $1,838.95 million on Sep. 30, 2015. Tetra Technologies has recorded a decline in long-term debt over the last one year. It stood at $738.03 million as on Sep. 30, 2016, down 10.98 percent or $91.02 million from $829.05 million on Sep. 30, 2015. Total debt was 53.79 percent of total assets as on Sep. 30, 2016, compared with 94.73 percent on Sep. 30, 2015. Debt to equity ratio was at 2.07 as on Sep. 30, 2016, down from 2.44 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.01 for the quarter from 2.24 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
