Tetra Technologies Inc (TTI) Reports 12% YoY Revenue Growth in Q3 2023
Third quarter revenue of $151.5 million, a 12% increase year-over-year.
Net income before discontinued operations was $5.5 million, a significant improvement from break-even in the same quarter a year ago.
Adjusted EBITDA of $26.1 million, a 40% increase year-over-year.
Net cash provided by operating activities was $14.0 million, while adjusted free cash flow was $7.1 million.
On October 30, 2023, Tetra Technologies Inc (NYSE:TTI) announced its third quarter 2023 financial results. The company reported a 12% year-over-year increase in revenue, reaching $151.5 million. Net income before discontinued operations was $5.5 million, a significant improvement from break-even in the same quarter a year ago. Adjusted EBITDA increased by 40% year-over-year to $26.1 million.
Financial Performance
TTI's financial results for the third quarter were highlighted by a 12% year-on-year revenue growth, net income before discontinued operations growth of $5.5 million, and adjusted EBITDA growth of 40%. The company's net income was $5.4 million, inclusive of $3.7 million of non-recurring charges, net of credits. This compares to net income of $0.3 million in the third quarter of 2022, inclusive of $2.7 million of non-recurring charges, and to net income of $18.2 million in the second quarter of 2023, inclusive of $0.9 million of non-recurring credits, net of charges.
Segment Performance
The Completion Fluids & Products segment led the way with year-on-year revenue growth of 24%, net income before taxes and discontinued operations growth of 37%, and adjusted EBITDA growth of 52%, when adjusted for unrealized gains or losses on investments. The Water & Flowback Services revenue of $78 million improved modestly by 3% year-on-year while remaining flat sequentially. The increase in revenue was driven by international operations.
Future Outlook
TTI anticipates strong cash from operating activities and adjusted free cash flow in the fourth quarter, driven by the cash proceeds from the EPF sale and working capital improvements. Total year 2023 cash from operating activities is expected to be between $70 million and $79 million while adjusted free cash flow is expected to be between $35 million and $40 million.
Arkansas Bromine and Lithium Brine Unit Update
In the third quarter, TTI achieved an important milestone with unanimous approval by the Arkansas Oil & Gas Commission of the 6,138 acre joint brine unit application, giving TETRA and its partner the rights to develop and produce the brine for bromine production and future lithium production once the lithium royalty is established by the AOGC.
Explore the complete 8-K earnings release (here) from Tetra Technologies Inc for further details.
This article first appeared on GuruFocus.
