Radoff-Torok Group seeks overhaul of TTI board

Published 24/03/2025, 15:50
Radoff-Torok Group seeks overhaul of TTI board

HOUSTON - The Radoff-Torok Group, owning over 4.9% of TETRA Technologies, Inc. (NYSE: TTI), has nominated four independent candidates for the company’s board, signaling a push for significant governance changes. The group’s open letter to TTI’s board, announced today, criticizes long-term underperformance and governance issues, advocating for a strategic overhaul to enhance stockholder value. According to InvestingPro data, TTI currently has a market capitalization of $453.58 million and maintains strong liquidity with a current ratio of 2.19, indicating solid financial footing despite recent challenges.

The investor group, led by Bradley L. Radoff and Michael Torok, expressed dissatisfaction with TTI’s current board, particularly targeting the extended tenures of Chairman John F. Glick and Directors Mark E. Baldwin and Thomas R. Bates, Jr. They argue that the board’s resistance to change has contributed to a nearly 43% decline in TTI’s stock price over the past decade, underperforming the Russell 2000’s 66% return in the same period. InvestingPro analysis shows the stock has experienced significant volatility, with a year-to-date decline of 6.42%, though the company maintains profitable operations with a return on equity of 56% and trades at an attractive P/E ratio of 4.15.

Radoff and Torok believe the board’s current composition is incapable of executing a strategy that capitalizes on TTI’s valuable business segments. They have proposed forming a Strategy Committee of independent directors to explore options for unlocking value, such as divesting underperforming assets and reducing corporate overhead.

The group’s nominees—Simon Bates, Evan Behrens, Bradley L. Radoff, and Andrew K. Ruben—bring diverse expertise in specialty chemicals, materials, and corporate governance, aiming to redirect TTI towards profitability and sustainable growth. The Radoff-Torok Group insists that without board renewal, stockholder confidence will continue to wane.

TTI’s board has previously reacted to shareholder pressure, leading to board changes in 2021 and 2022. The Radoff-Torok Group’s current move underscores their belief in the urgent need for fresh perspectives to overcome what they perceive as the board’s "country club" mentality and lackluster performance.

The call for board changes comes ahead of TTI’s 2025 Annual Meeting of Stockholders, with the Radoff-Torok Group preparing to file a preliminary proxy statement to solicit votes for their nominees. This article is based on a press release statement from the Radoff-Torok Group. Notably, InvestingPro data reveals analysts maintain a Strong Buy consensus on TTI, with the company showing good overall financial health. For deeper insights into TTI’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Tetra Technologies Inc. reported its fourth-quarter 2024 earnings, meeting expectations for earnings per share at $0.03 but missing revenue forecasts with $135 million against an expected $139.17 million. The company’s Industrial Chemicals segment achieved record revenue and adjusted EBITDA, contributing 22% to total revenue with a 9% growth over the previous year. Tetra Technologies continues to focus on strategic expansions, including potential developments in bromine and lithium production, and projects a strong start to 2025 with expected net income before taxes ranging from $19 million to $34 million. The company is also exploring opportunities in water desalination and energy storage solutions. Analyst discussions during the earnings call highlighted the company’s focus on innovation and strategic partnerships to drive future growth. Tetra Technologies’ CFO, Elijio Serrano, emphasized the company’s confidence in its U.S. business performance, with significant tax savings expected from net operating loss carryforwards. The company remains committed to leveraging its strong market positions and strategic initiatives to enhance its competitive positioning.

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