Capitalization
Enterprise Value
Free Cash Flow
Market Capitalization
Net Capital Employed
Net Debt
Adjusted Net Income Per Share
Capitalization
Capitalization is defined as total stockholders' equity plus long-term debt and the current portion of long-term debt. A reconciliation as of June 30, 2010, December 31, 2009 and December 31, 2008 is shown below:
| |
June 30, 2010 |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
| |
(In Thousands) |
|
|
Total stockholders' equity
|
$593,440 |
|
$576,494 |
|
$515,821 |
|
|
Long-term debt
|
304,217 |
|
310,132 |
|
406,840 |
|
|
Current portion of long-term debt
|
- |
|
- |
|
- |
|
|
Capitalization
|
$897,657 |
|
$886,626 |
|
$992,661 |
|
|
|
|
|
|
|
|
|
Enterprise Value
Enterprise Value is defined as market capitalization plus long-term debt and the current portion of long-term debt, less cash (other than restricted cash). Conceptually, Enterprise Value is a measure of the market value of a company if it were free of debt. A reconciliation as of June 30, 2010, December 31, 2009 and December 31, 2008 is shown below:
| |
June 30, 2010 |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
| |
(In Thousands) |
|
|
Market capitalization
|
$697,517 |
|
$839,000 |
|
$362,162 |
|
|
Long-term debt
|
304,217 |
|
310,132 |
|
406,840 |
|
|
Current portion of long-term debt
|
– |
|
– |
|
– |
|
|
Cash
|
(89,227 |
)
|
(33,394 |
)
|
(3,882 |
) |
|
Enterprise value
|
$912,507 |
|
$1,115,738 |
|
$765,120 |
|
|
|
|
|
|
|
|
|
Free Cash Flow
Free Cash Flow is defined as cash provided by operating activities minus cash used in investing activities (from the consolidated statements of cash flows). Cash provided by operating activities consists of net income, plus depreciation, depletion and amortization, plus the change in deferred income taxes, plus other non-cash items, plus changes in working capital, plus other changes in current operating assets and liabilities. Cash used in investing activities includes capital expenditures, acquisitions, and other cash used in investing activities. Management views Free Cash Flow, a non-GAAP measure, as a measure of TETRA's after-tax cash flow available to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund other financing activities. A reconciliation of cash provided by operating activities to Free Cash Flow for the six months ended June 30, 2010 and for the years ended December 31, 2009 and December 31, 2008 is shown below:
| |
6 Mos Ended
June 30, 2010 |
|
Year Ended
Dec. 31, 2009 |
|
Year Ended Dec. 31, 2008 |
|
| |
(In Thousands) |
|
|
Cash provided by operating activities
|
$90,454 |
|
$272,315 |
|
$189,811 |
|
|
Cash used in investing activities
|
(33,816 |
)
|
(149,699 |
)
|
(261,455 |
)
|
|
Free cash flow
|
$56,638 |
|
$122,616 |
|
$(71,644 |
)
|
|
|
|
|
|
|
|
|
In addition, a reconciliation of the estimated forecast of cash provided by operating activities to Free Cash Flow for the 2010 fiscal year is shown below:
|
Estimated 2010 |
|
| |
(In Thousands) |
|
|
|
|
|
Cash provided by operating activities
|
$229,700 |
|
|
Cash used in investing activities
|
(129,700 |
)
|
|
Free cash flow
|
$100,000 |
|
|
|
|
|
Market Capitalization
Market Capitalization is defined as the price per share of stock at the end of a period multiplied by the average number of fully diluted shares outstanding, as reported in the Company's most recently filed Form 10-K or 10-Q. A reconciliation as of June 30, 2010, December 31, 2009 and December 31, 2008 is shown below:
| |
June 30, 2010 |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
| |
(In Thousands, Except Per Share Amounts)
|
|
|
Stock price per share at end of period
|
$9.08 |
|
$11.08 |
|
$4.86 |
|
|
Average number of fully diluted shares outstanding
|
76,819 |
|
75,722 |
|
74,519 |
|
|
Market capitalization
|
$697,517 |
|
$839,000 |
|
$362,162 |
|
|
|
|
|
|
|
|
|
Net Capital Employed
Net Capital Employed is defined as total stockholders' equity plus long-term debt and the current portion of long-term debt, plus decommissioning and other asset retirement obligations and the current portion of decommissioning and other asset retirement obligations, less cash (other than restricted cash). A reconciliation as of June 30, 2010, December 31, 2009 and December 31, 2008 is shown below:
| |
June 30, 2010 |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
|
(In Thousands) |
|
Total stockholders' equity
|
$593,440 |
|
$576,494 |
|
$515,821 |
|
|
Long-term debt
|
304,217 |
|
310,132 |
|
406,840 |
|
|
Current portion of long-term debt
|
– |
|
– |
|
– |
|
| Decommissioning and other asset retirement obligations |
135,743 |
|
146,219 |
|
202,771 |
|
| Current portion of decommissioning and other asset retirement obligations |
80,404 |
|
77,891 |
|
45,954 |
|
|
Cash
|
(89,227 |
)
|
(33,394 |
)
|
(3,882 |
) |
|
Net capital employed
|
$1,024,577 |
|
$1,077,342 |
|
$1,167,504 |
|
|
|
|
|
|
|
|
|
Net Debt
Net debt is defined as long-term debt minus cash. Management views net debt, a non-GAAP financial measure, as a measure of the Company's ability to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund investing and financing activities. A reconciliation of long-term debt to net debt as of June 30, 2010 and December 31, 2009 is shown below:
| |
Jun. 30, 2010 |
|
Dec. 31, 2009 |
|
| |
(In Thousands)
|
|
|
Long-term debt
|
$304,217 |
|
$310,132 |
|
|
Cash
|
(89,578 |
)
|
(33,660 |
)
|
|
Net debt
|
$214,639 |
|
$276,472 |
|
|
|
|
|
|
|
Adjusted Net Income Per Share
GAAP net income per diluted share is reconciled to the non-GAAP measure "adjusted net income per diluted share" for the fourth quarter and year 2007, as those terms are used in our February 26, 2008 press release.
Please click here to view the financial table.
|
