TETRA Technologies, Inc. (NYSE:TTI) Q3 2023 Earnings Conference Call October 31, 2023 10:30 AM ET

Company Participants

Rigo Gonzalez - Manager of Corporate Finance and Investor Relations

Brady Murphy - President and Chief Executive Officer

Elijio Serrano - Senior Vice President and CFO

Conference Call Participants

Martin Malloy - Johnson Rice

Stephen Gengaro - Stifel

Tim Moore - EF Hutton

Operator

Good morning and welcome to TETRA Technologies Third Quarter 2023 Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. Please also note that this event is being recorded today.

I will now turn the conference over to Rigo Gonzalez, Manager of Corporate Finance and Investor Relations. Please go ahead.

Rigo Gonzalez

Thank you, Joe. Good morning, and thank you for joining TETRA's third quarter 2023 results call. The speakers for today's call are Brady Murphy, Chief Executive Officer; and Elijio Serrano, Chief Financial Officer.

I would like to remind you that this conference call may contain statements that are or may be deemed to be forward-looking, including projections, financial guidance, profitability and estimated earnings. These statements are based on certain assumptions and analysis made by TETRA and are based on several factors. These statements are subject to several risks and uncertainties, many of which are beyond the control of the company. You're cautioned that such statements are not guarantees of future performance and that actual results may differ materially from those projected in the forward-looking statements.

In addition, in the course of the call, we may refer to EBITDA, adjusted EBITDA, adjusted EBITDA gross margins, free cash flow, net debt, net leverage ratio, liquidity, returns on net capital employed or other non-GAAP financial measures. Please refer to yesterday's press release or to our public website for reconciliations of non-GAAP financial measures to the nearest GAAP measures. These reconciliations are not a substitute for financial information prepared in accordance with GAAP and should be considered within the context of our complete financial results for the period. In addition to our press release announcement, we encourage you to also refer to our 10-Q that we filed yesterday as well.

I will now turn it over to Brady.

Brady Murphy

Thanks, Rigo. Good morning, everyone, and welcome to TETRA's third quarter 2023 earnings call. Our third quarter delivered solid financial results in our base business with adjusted EBITDA of $26.1 million, the highest third quarter since the third quarter of 2015, while significantly advancing our strategic initiatives. Because of the second quarter seasonal peak in our Northern European Industrial Chemicals business, the underlying strength of our business is highlighted by our year-on-year growth and our progression from the first quarter.