Here's a company doing well in the patch:
TETRA Technologies, Inc. Announces Second Quarter 2003 Earnings of $0.41 Per Share
THE WOODLANDS, Texas, Jul 28, 2003 (BUSINESS WIRE) -- TETRA Technologies, Inc. ("TETRA" or the "Company") (TTI) today announced that its second quarter 2003 earnings were $0.41 per share, fully diluted. 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 143) reported in the first quarter of 2003.
Consolidated revenues for the quarter ended June 30, 2003 were $87,974,000 versus the $62,716,000 reported in the second quarter of 2002. Gross profit margins 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 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 - $9,686,000 in 2Q 2003, $2,016,000 in 1Q 2003 and $1,645,000 in 2Q 2002; and Testing & Services - $1,464,000 in 2Q 2003, $977,000 in 1Q 2003 and $3,337,000 in 2Q 2002.
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 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 energy services. In spite of this, we chose to build for the future, recognizing the negative short-term 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 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 drilling cycle begins to improve, we expect our domestic fluids business will escalate 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 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 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. At year-end 2002 our long-term debt (including the current portion of long-term 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 regarding internal or external expansion. Our unique strategy regarding the well abandonment and decommissioning markets should create growth opportunities for the future. The cyclical 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 and brominated products manufacturing operation that supplies feedstocks to energy markets, as well as other markets. |
