TETRA TECHNOLOGIES, INC. ANNOUNCES FIRST QUARTER 2023 REVENUE OF $146 MILLION AND EPS OF $0.05 AND PROVIDES SECOND QUARTER GUIDANCE.

THE WOODLANDS: TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) today announced first-quarter 2023 financial results. Brady Murphy, TETRA President and Chief Executive Officer, stated, "First quarter results came in as expected representing a solid start to 2023 and setting the foundation for a very strong second quarter."

First quarter 2023 revenue of $146 million increased 12% from the first quarter of 2022 but decreased 1% from the fourth quarter of 2022. Net income before discontinued operations was $6.0 million, inclusive of $2.0 million of non-recurring credits, net of charges, mainly from a favorable cash insurance settlement. This compares to net income before discontinued operations of $7.7 million, inclusive of $0.6 million of non-recurring credits, net of charges, in the first quarter of 2022 and to a net loss before discontinued operations of $1.8 million in the fourth quarter of 2022, inclusive of $4.3 million of non-recurring charges and expenses. Net income per share attributable to TETRA stockholders was $0.05 in the first quarter compared to net loss per share of $0.01 in the fourth quarter of 2022 and net income per share from continuing operations of $0.06 in the first quarter of 2022.

Adjusted EBITDA for the first quarter of 2023 was $20.6 million (14.1% of revenue) compared to $20.3 million (13.8% of revenue) in the fourth quarter of 2022, and up slightly compared to $20.5 million (15.7% of revenue) in the first quarter of 2022. The first quarter of 2023 included unrealized losses on investments of $504,000. Excluding these unrealized losses on investments, Adjusted EBITDA for the first quarter of 2023 was $21.1 million, the highest Adjusted EBITDA, excluding unrealized gains or losses on investments, since the first quarter of 2020.

Cash flow from operating activities was $9.0 million in the first quarter of 2023 compared to cash used in operating activities of $7.0 million in the fourth quarter of 2022 and compared to cash flow from operating activities of $5.9 million in the first quarter of 2022. Adjusted free cash flow from continuing operations was a use of $3.7 million after funding capital expenditures of $12.5 million, net of proceeds. The first quarter has traditionally used cash due to the timing of significant annual payments, including property taxes and employee incentive cash bonuses for the prior year. Inventory expanded in the first quarter in anticipation of the second quarter seasonal peak in the European industrial chemicals business. Working capital at the end of the first quarter was $109 million. Working capital is defined as current assets, excluding cash and...