AUSTIN, Texas--(BUSINESS WIRE)--Feb. 17, 2015--
USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the
“Partnership”), announced today its financial and operating results for
the fourth quarter and full-year 2014.
Fourth Quarter and Full-Year 2014 Summary
Results
-
Record levels of revenues; fourth quarter 2014 up 25.4% over fourth
quarter 2013 and full-year 2014 up 44.9% over full-year 2013
-
Record levels of Adjusted EBITDA; fourth quarter 2014 up 29.9% over
fourth quarter 2013 and full-year 2014 up 41.0% over full-year 2013
-
Record levels of adjusted distributable cash flow; fourth quarter 2014
up 38.7% over fourth quarter 2013 and full-year 2014 up 52.9% over
full-year 2013
-
Fourth quarter 2014 quarterly cash distribution of $0.51 per common
unit, an increase of 6.3% over fourth quarter 2013
-
Fleet horsepower for fourth quarter 2014 increased by 28.8% over
fourth quarter 2013
-
Average revenue generating horsepower for fourth quarter 2014
increased 25.2% over fourth quarter 2013
-
Adjusted distributable cash flow coverage of 1.11x for the fourth
quarter 2014
-
Cash coverage of 2.70x for fourth quarter 2014
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Three Months Ended
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Year Ended
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December 31,
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September 30,
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December 31,
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December 31,
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2014
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2014
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2013
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2014
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2013
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Operational Data
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Fleet Horsepower at period end
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1,549,020
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1,452,833
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1,202,374
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1,549,020
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1,202,374
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Revenue Generating Horsepower at period end
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1,351,052
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1,259,387
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1,070,457
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1,351,052
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1,070,457
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Average Revenue Generating Horsepower
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1,324,983
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1,224,938
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1,058,213
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1,200,851
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902,168
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Revenue Generating Compression Units at period end
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2,651
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2,488
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2,137
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2,651
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2,137
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Horsepower Utilization at period end(1)
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93.6
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%
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93.5
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%
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94.1
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%
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93.6
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%
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94.1
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%
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Average Horsepower Utilization for the period(1)
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93.3
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%
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94.0
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%
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94.2
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%
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94.0
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%
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93.8
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%
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Financial Data ($ in thousands, except per
horsepower)
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Revenue
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$
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60,995
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$
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57,045
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$
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48,643
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$
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221,509
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$
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152,918
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Average Revenue Per Horsepower Per Month(2)
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$
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15.82
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$
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15.67
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$
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15.36
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$
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15.57
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$
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14.15
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Gross Operating Margin
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$
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42,105
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$
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37,615
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$
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33,019
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$
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147,474
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$
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104,821
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Gross Operating Margin Percentage
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69.0
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%
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65.9
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%
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67.9
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%
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66.6
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%
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68.5
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%
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Adjusted EBITDA
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$
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33,024
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$
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29,327
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$
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25,413
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$
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114,409
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$
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81,130
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Adjusted EBITDA Percentage
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54.1
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%
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51.4
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%
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52.2
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%
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51.6
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%
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53.1
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%
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Adjusted Distributable Cash Flow
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$
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26,275
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$
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22,955
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$
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18,943
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$
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85,927
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$
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56,210
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(1)
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Horsepower utilization is calculated as (i)(a) revenue generating
horsepower plus (b) horsepower in the Partnership's fleet that is
under contract, but is not yet generating revenue plus (c)
horsepower not yet in the Partnership's fleet that is under contract
not yet generating revenue and that is subject to a purchase order,
divided by (ii) total available horsepower less idle horsepower that
is under repair. Horsepower utilization based on revenue generating
horsepower and fleet horsepower at each applicable period end was
87.2%, 86.7% and 89.0% for the quarters ended December 31, 2014,
September 30, 2014 and December 31, 2013, respectively. Average
horsepower utilization was 87.0%, 87.5% and 89.0% for the quarters
ended December 31, 2014, September 30, 2014 and December 31, 2013,
respectively, and 87.3% for the years ended December 31, 2014 and
2013.
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(2)
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Calculated using average revenue generating horsepower.
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Fourth Quarter 2014 Financial and Operating
Performance
Revenues in the fourth quarter of 2014 rose 25.4% to $61.0 million as
compared to $48.6 million for the same period in 2013. This was
primarily the result of a 26.7% increase in contract operations revenues
(excluding retail parts and services) to $60.0 million in the fourth
quarter of 2014, compared to $47.4 million in the fourth quarter of
2013. This increase was driven primarily by organic growth in revenue
generating horsepower. Adjusted EBITDA rose 29.9% to $33.0 million in
the fourth quarter of 2014 as compared to $25.4 million for the fourth
quarter of 2013. Adjusted distributable cash flow increased 38.7% to
$26.3 million in the fourth quarter of 2014, compared to $18.9 million
in the fourth quarter of last year. Net income was $8.5 million in the
fourth quarter of 2014, compared with net income of $4.4 million for the
fourth quarter of 2013.
“We are reporting another quarter of record revenues, adjusted EBITDA
and adjusted distributable cash flow for the fourth quarter of 2014,”
said Eric D. Long, USA Compression’s President and Chief Executive
Officer. “As a result of our solid performance, we announced our seventh
consecutive quarterly distribution increase since our IPO, to $0.51 for
the fourth quarter of 2014.
“We have, at this time, ordered approximately 230,000 horsepower of new
compression units for delivery in 2015, which primarily will be
delivered over the first three quarters of 2015,” he said. “In addition
to the stability of our current operations, the Partnership is
experiencing solid demand for new compression units to be delivered
throughout 2015.”
Average revenue generating horsepower increased 25.2% to 1,324,983 for
the fourth quarter of 2014 as compared to 1,058,213 for the fourth
quarter of 2013, primarily due to organic growth across our compression
fleet. Average revenue per revenue generating horsepower per month
increased 3.0% to $15.82 for the fourth quarter of 2014 as compared to
$15.36 for the fourth quarter of 2013.
Gross operating margin increased 27.5% to $42.1 million for the fourth
quarter of 2014 as compared to $33.0 million for the fourth quarter of
2013. Gross operating margin as a percentage of total revenues increased
to 69.0% for the fourth quarter of 2014 from 67.9% in the fourth quarter
of 2013.
Expansion capital expenditures (used primarily to purchase new
compression units) were $109.3 million, maintenance capital expenditures
totaled $3.4 million and cash interest expense, net was $3.0 million for
the fourth quarter of 2014.
On January 22, 2015, the Partnership announced a cash distribution of
$0.51 per unit on its common and subordinated units. This fourth quarter
distribution corresponds to an annualized distribution rate of $2.04 per
unit. The distribution was paid on February 13, 2015 to unitholders of
record as of the close of business on February 3, 2015. USA Compression
Holdings, LLC, the owner of 42.0% of the Partnership’s outstanding
limited partnership units, and Argonaut Private Equity, L.L.C. and
certain other related unitholders, the owners of 16.3% of the
Partnership’s outstanding limited partnership units, elected to reinvest
all of this distribution with respect to their units pursuant to the
Partnership’s Distribution Reinvestment Plan. Adjusted distributable
cash flow coverage for the fourth quarter of 2014 was 1.11x and the cash
coverage ratio was 2.70x.
Liquidity and Credit Facility
On January 6, 2015, the Partnership closed the Second Amendment to its
Fifth Amended and Restated Credit Agreement (the “revolving credit
facility”). The amendment provided for an increase in the facility
capacity from $850 million to $1.1 billion and an extension of the
maturity to 2020. The revolving credit facility contains an accordion
feature whereby it can be expanded to $1.3 billion under certain
conditions. In addition, the amendment also provided additional
flexibility under the financial covenants. As of December 31, 2014, the
outstanding balance under the revolving credit facility was
approximately $595 million, compared to approximately $510 million as of
September 30, 2014.
Full-Year 2015 Outlook
USA Compression is providing the following full-year 2015 guidance:
-
Adjusted EBITDA range of $130.0 million to $140.0 million;
-
distributable cash flow range of $91.3 million to $102.3 million; and
-
expansion capital expenditures range of $250 million to $270 million.
Conference Call
The Partnership will host a conference call today beginning at 11:00
a.m. Eastern Time (10:00 a.m. Central Time) to discuss its fourth
quarter 2014 performance. The call will be broadcast live over the
Internet. Investors may participate either by phone or audio webcast.
By Phone:
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Dial 888-523-1228 inside the U.S. and Canada at least 10 minutes
before the call and ask for the USA Compression Partners Earnings
Call. Investors outside the U.S. and Canada should dial
719-325-2244. The conference ID for both is 6085302.
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A replay of the call will be available through February 28, 2015.
Callers inside the U.S. and Canada may access the replay by dialing
888-203-1112. Investors outside the U.S. and Canada should dial
719-457-0820. The passcode for both is 6085302.
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By Webcast:
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Connect to the webcast via the “Events” page of USA Compression’s
Investor Relations website at http://investors.usacpartners.com.
Please log in at least 10 minutes in advance to register and
download any necessary software. A replay will be available
shortly after the call.
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About USA Compression Partners, LP
USA Compression Partners, LP is a growth-oriented Delaware limited
partnership that is one of the nation’s largest independent providers of
compression services in terms of total compression fleet horsepower. The
company partners with a broad customer base composed of producers,
processors, gatherers and transporters of natural gas and crude oil. USA
Compression focuses on providing compression services to infrastructure
applications primarily in high-volume gathering systems, processing
facilities and transportation applications. More information is
available at www.usacpartners.com.
This news release includes the non-GAAP financial measures of Adjusted
EBITDA, gross operating margin, distributable cash flow and adjusted
distributable cash flow.
The Partnership’s management views Adjusted EBITDA as one of its primary
financial measures in evaluating the results of the Partnership’s
business, and the Partnership tracks this item on a monthly basis both
as an absolute amount and as a percentage of revenue compared to the
prior month, year-to-date and prior year, and to budget. Adjusted EBITDA
is defined as EBITDA plus impairment of compression equipment, interest
income, unit-based compensation expense, loss (gain) on sale of assets
and transaction expenses. Adjusted EBITDA is used as a supplemental
financial measure by the Partnership’s management and external users of
its financial statements, such as investors and commercial banks, to
assess:
-
the financial performance of the Partnership’s assets without regard
to the impact of financing methods, capital structure or historical
cost basis of the Partnership’s assets;
-
the viability of capital expenditure projects and the overall rates of
return on alternative investment opportunities;
-
the ability of the Partnership’s assets to generate cash sufficient to
make debt payments and to make distributions; and
-
the Partnership’s operating performance as compared to those of other
companies in its industry without regard to the impact of financing
methods and capital structure.
The Partnership believes that Adjusted EBITDA provides useful
information to investors because, when viewed with GAAP results and the
accompanying reconciliations, it provides a more complete understanding
of the Partnership’s performance than GAAP results alone. The
Partnership also believes that external users of its financial
statements benefit from having access to the same financial measures
that management uses in evaluating the results of the Partnership’s
business.
Adjusted EBITDA should not be considered an alternative to, or more
meaningful than, net income, operating income, cash flows from operating
activities or any other measure of financial performance presented in
accordance with GAAP, as measures of operating performance and
liquidity. Moreover, Adjusted EBITDA as presented may not be comparable
to similarly titled measures of other companies.
Gross operating margin, a non-GAAP financial measure, is defined as
revenues less cost of operations, exclusive of depreciation and
amortization expense. The Partnership’s management believes that gross
operating margin is useful as a supplemental measure of the
Partnership’s operating profitability. Gross operating margin is
impacted primarily by the pricing trends for service operations and cost
of operations, including labor rates for service technicians, volume and
per unit costs for lubricant oils, quantity and pricing of routine
preventative maintenance on compression units and property tax rates on
compression units. Gross operating margin should not be considered an
alternative to, or more meaningful than, operating income or any other
measure of financial performance presented in accordance with GAAP.
Moreover, gross operating margin as presented may not be comparable to
similarly titled measures of other companies. Because the Partnership
capitalizes assets, depreciation and amortization of equipment is a
necessary element of its costs. To compensate for the limitations of
gross operating margin as a measure of the Partnership’s performance,
the Partnership’s management believes that it is important to consider
operating income determined under GAAP, as well as gross operating
margin, to evaluate the Partnership’s operating profitability.
Distributable cash flow, a non-GAAP measure, is defined as net income
plus non-cash interest expense, depreciation and amortization expense,
unit-based compensation expense and impairment of compression equipment,
less maintenance capital expenditures. Adjusted distributable cash flow
is distributable cash flow plus certain transaction fees and loss (gain)
on sale of equipment. The Partnership’s management believes
distributable cash flow and adjusted distributable cash flow are
important measures of operating performance because such measures allow
management, investors and others to compare basic cash flows the
Partnership generates (prior to the establishment of any retained cash
reserves by the Partnership’s general partner and the effect of the
Partnership’s Distribution Reinvestment Plan) to the cash distributions
the Partnership expects to pay its unitholders.
This news release also contains a forward-looking estimate of Adjusted
EBITDA and distributable cash flow projected to be generated by the
Partnership in its 2015 fiscal year. A reconciliation of Adjusted EBITDA
and distributable cash flow to net cash provided by operating activities
is not provided because the items necessary to estimate net cash
provided by operating activities, in particular the change in operating
assets and liabilities amounts, are not accessible or estimable at this
time. The Partnership does not anticipate the changes in operating
assets and liabilities to be material, but changes in accounts
receivable, accounts payable, accrued liabilities and deferred revenue
could be significant, such that the amount of net cash provided by
operating activities would vary substantially from the amount of
projected Adjusted EBITDA.
See “Reconciliation of Non-GAAP Financial Measures” for Adjusted EBITDA
reconciled to net income and net cash provided by operating activities,
and net income reconciled to distributable cash flow and adjusted
distributable cash flow.
Forward-Looking Statements
Some of the information in this news release may contain forward-looking
statements. These statements can be identified by the use of
forward-looking terminology including “may,” “believe,” “expect,”
“intend,” “anticipate,” “estimate,” “continue,” or other similar words,
and include the Partnership’s expectation of future performance
contained herein, including as described under “Full-Year 2015 Outlook.”
These statements discuss future expectations, contain projections of
results of operations or of financial condition, or state other
“forward-looking” information. These forward-looking statements can be
affected by assumptions used or by known risks or uncertainties.
Consequently, no forward-looking statements can be guaranteed. When
considering these forward-looking statements, you should keep in mind
the risk factors and other cautionary statements in this news release.
The risk factors and other factors noted throughout this news release
could cause actual results to differ materially from those contained in
any forward-looking statement. You are cautioned not to place undue
reliance on any forward-looking statements, which speak only as of the
date of this news release. You should also understand that it is not
possible to predict or identify all such factors and should not consider
the following list to be a complete statement of all potential risks and
uncertainties. Known material factors that could cause the Partnership’s
actual results to differ materially from the results contemplated by
such forward-looking statements are described in Part I, Item 1A (“Risk
Factors”) of the Partnership’s annual report on Form 10-K for the fiscal
year ended December 31, 2014, which it expects to file on or before the
filing deadline, and include:
-
changes in general economic conditions and changes in economic
conditions of the crude oil and natural gas industry specifically;
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competitive conditions in the industry;
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changes in the long-term supply of and demand for natural gas and
crude oil;
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our ability to realize the anticipated benefits of acquisitions and to
integrate the acquired assets with our existing fleet;
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actions taken by the Partnership’s customers, competitors and
third-party operators;
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changes in the availability and cost of capital;
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operating hazards, natural disasters, weather related delays, casualty
losses and other matters beyond the Partnership’s control;
-
the effects of existing and future laws and governmental regulations;
-
the effects of future litigation; and
-
other factors discussed in the Partnership’s filings with the
Securities and Exchange Commission.
All forward-looking statements are expressly qualified in their entirety
by the foregoing cautionary statements. Unless legally required, the
Partnership undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. Unpredictable or unknown factors not
discussed herein also could have material adverse effects on
forward-looking statements.
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USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except for unit amounts – Unaudited)
|
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|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
2014
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|
2013
|
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Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract operations
|
|
|
$
|
60,045
|
|
|
$
|
55,293
|
|
|
$
|
47,395
|
|
|
|
$
|
217,361
|
|
|
$
|
150,360
|
|
Parts and service
|
|
|
|
950
|
|
|
|
1,752
|
|
|
|
1,248
|
|
|
|
|
4,148
|
|
|
|
2,558
|
|
Total revenues
|
|
|
|
60,995
|
|
|
|
57,045
|
|
|
|
48,643
|
|
|
|
|
221,509
|
|
|
|
152,918
|
|
Cost of operations, exclusive of depreciation and amortization
|
|
|
|
18,890
|
|
|
|
19,430
|
|
|
|
15,624
|
|
|
|
|
74,035
|
|
|
|
48,097
|
|
Gross operating margin
|
|
|
|
42,105
|
|
|
|
37,615
|
|
|
|
33,019
|
|
|
|
|
147,474
|
|
|
|
104,821
|
|
Other operating and administrative costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
9,620
|
|
|
|
10,443
|
|
|
|
8,830
|
|
|
|
|
38,718
|
|
|
|
27,587
|
|
Depreciation and amortization
|
|
|
|
19,631
|
|
|
|
18,261
|
|
|
|
15,690
|
|
|
|
|
71,156
|
|
|
|
52,917
|
|
Loss (Gain) on sale of assets
|
|
|
|
(4
|
)
|
|
|
63
|
|
|
|
231
|
|
|
|
|
(2,233
|
)
|
|
|
284
|
|
Impairment of compression equipment
|
|
|
|
1,102
|
|
|
|
1,163
|
|
|
|
203
|
|
|
|
|
2,266
|
|
|
|
203
|
|
Total other operating and administrative costs and expenses
|
|
|
|
30,349
|
|
|
|
29,930
|
|
|
|
24,954
|
|
|
|
|
109,907
|
|
|
|
80,991
|
|
Operating income
|
|
|
|
11,756
|
|
|
|
7,685
|
|
|
|
8,065
|
|
|
|
|
37,567
|
|
|
|
23,830
|
|
Other Income (Expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(3,260
|
)
|
|
|
(2,677
|
)
|
|
|
(3,525
|
)
|
|
|
|
(12,529
|
)
|
|
|
(12,488
|
)
|
Other
|
|
|
|
5
|
|
|
|
5
|
|
|
|
1
|
|
|
|
|
11
|
|
|
|
9
|
|
Total other expense
|
|
|
|
(3,255
|
)
|
|
|
(2,672
|
)
|
|
|
(3,524
|
)
|
|
|
|
(12,518
|
)
|
|
|
(12,479
|
)
|
Net income before income tax expense
|
|
|
|
8,501
|
|
|
|
5,013
|
|
|
|
4,541
|
|
|
|
|
25,049
|
|
|
|
11,351
|
|
Income tax expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
104
|
|
|
|
|
103
|
|
|
|
280
|
|
Net Income
|
|
|
$
|
8,501
|
|
|
$
|
5,013
|
|
|
$
|
4,437
|
|
|
|
$
|
24,946
|
|
|
$
|
11,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings allocated to general partner prior to initial public
offering on January 18, 2013
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
5
|
|
Earnings available for limited partners prior to initial public
offering on January 18, 2013
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
530
|
|
Net income subsequent to initial public offering on January 18, 2013
|
|
|
$
|
8,501
|
|
|
$
|
5,013
|
|
|
$
|
4,437
|
|
|
|
$
|
24,946
|
|
|
$
|
10,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income subsequent to initial public offering allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner's interest in net income
|
|
|
$
|
288
|
|
|
$
|
194
|
|
|
$
|
89
|
|
|
|
$
|
760
|
|
|
$
|
211
|
|
Common units interest in net income
|
|
|
$
|
5,698
|
|
|
$
|
3,338
|
|
|
$
|
2,714
|
|
|
|
$
|
16,811
|
|
|
$
|
5,805
|
|
Subordinated units interest in net income
|
|
|
$
|
2,515
|
|
|
$
|
1,481
|
|
|
$
|
1,634
|
|
|
|
$
|
7,375
|
|
|
$
|
4,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
31,022,878
|
|
|
|
30,460,239
|
|
|
|
23,330,238
|
|
|
|
|
28,087,498
|
|
|
|
18,043,075
|
|
Diluted
|
|
|
|
31,063,948
|
|
|
|
30,517,689
|
|
|
|
23,409,476
|
|
|
|
|
28,146,446
|
|
|
|
18,086,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average subordinated units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
14,048,588
|
|
|
|
14,048,588
|
|
|
|
14,048,588
|
|
|
|
|
14,048,588
|
|
|
|
14,048,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.18
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
|
|
$
|
0.60
|
|
|
$
|
0.32
|
|
Diluted
|
|
|
$
|
0.18
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
|
|
$
|
0.60
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per subordinated unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
0.18
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
|
|
$
|
0.52
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per limited partner unit in respective periods
|
|
|
$
|
0.51
|
|
|
$
|
0.505
|
|
|
$
|
0.48
|
|
|
|
$
|
2.01
|
|
|
$
|
1.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA TO NET INCOME
AND NET CASH PROVIDED BY OPERATING ACTIVITIES (In thousands
– Unaudited)
The following table reconciles Adjusted EBITDA to net income and net
cash provided by operating activities, its most directly comparable GAAP
financial measures, for each of the periods presented:
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Net income
|
|
$
|
8,501
|
|
|
$
|
5,013
|
|
|
$
|
4,437
|
|
|
|
$
|
24,946
|
|
|
$
|
11,071
|
|
Interest expense
|
|
|
3,260
|
|
|
|
2,677
|
|
|
|
3,525
|
|
|
|
|
12,529
|
|
|
|
12,488
|
|
Depreciation and amortization
|
|
|
19,631
|
|
|
|
18,261
|
|
|
|
15,690
|
|
|
|
|
71,156
|
|
|
|
52,917
|
|
Income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
104
|
|
|
|
|
103
|
|
|
|
280
|
|
EBITDA
|
|
$
|
31,392
|
|
|
$
|
25,951
|
|
|
$
|
23,756
|
|
|
|
$
|
108,734
|
|
|
$
|
76,756
|
|
Impairment of compression equipment
|
|
|
1,102
|
|
|
|
1,163
|
|
|
|
203
|
|
|
|
|
2,266
|
|
|
|
203
|
|
Interest income on capital lease
|
|
|
439
|
|
|
|
433
|
|
|
|
-
|
|
|
|
|
1,274
|
|
|
|
-
|
|
Unit-based compensation expense(1)
|
|
|
77
|
|
|
|
855
|
|
|
|
438
|
|
|
|
|
3,034
|
|
|
|
1,343
|
|
Riverstone management fee(2)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
49
|
|
Transaction expenses for acquisitions(3)
|
|
|
18
|
|
|
|
862
|
|
|
|
661
|
|
|
|
|
1,299
|
|
|
|
2,142
|
|
Loss (gain) on sale of assets and other
|
|
|
(4
|
)
|
|
|
63
|
|
|
|
355
|
|
|
|
|
(2,198
|
)
|
|
|
637
|
|
Adjusted EBITDA
|
|
$
|
33,024
|
|
|
$
|
29,327
|
|
|
$
|
25,413
|
|
|
|
$
|
114,409
|
|
|
$
|
81,130
|
|
Interest expense
|
|
|
(3,260
|
)
|
|
|
(2,677
|
)
|
|
|
(3,525
|
)
|
|
|
|
(12,529
|
)
|
|
|
(12,488
|
)
|
Income tax expense
|
|
|
-
|
|
|
|
-
|
|
|
|
(104
|
)
|
|
|
|
(103
|
)
|
|
|
(280
|
)
|
Interest income on capital lease
|
|
|
(439
|
)
|
|
|
(433
|
)
|
|
|
-
|
|
|
|
|
(1,274
|
)
|
|
|
-
|
|
Riverstone management fee
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(49
|
)
|
Transaction expenses for acquisitions
|
|
|
(18
|
)
|
|
|
(862
|
)
|
|
|
(661
|
)
|
|
|
|
(1,299
|
)
|
|
|
(2,142
|
)
|
Amortization of deferred financing costs and other
|
|
|
307
|
|
|
|
43
|
|
|
|
672
|
|
|
|
|
1,189
|
|
|
|
1,840
|
|
Changes in operating assets and liabilities
|
|
|
1,676
|
|
|
|
13,534
|
|
|
|
4,717
|
|
|
|
|
1,498
|
|
|
|
180
|
|
Net cash provided by operating activities
|
|
$
|
31,290
|
|
|
$
|
38,932
|
|
|
$
|
26,512
|
|
|
|
$
|
101,891
|
|
|
$
|
68,190
|
|
(1)
|
|
|
For the quarters ended December 31, 2014 and September 30, 2014,
unit-based compensation expense included $0.2 million of cash
payments related to quarterly payments of distribution equivalent
rights on outstanding phantom unit awards. For the year ended
December 31, 2014, unit-based compensation expense included $0.5
million of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards
and $0.3 million related to the cash portion of any settlement of
phantom unit awards upon vesting. The remainder of the unit-based
compensation expense for 2014 is related to non-cash adjustments to
the unit-based compensation liability, and for 2013 to the non-cash
amortization of unit-based compensation in equity.
|
(2)
|
|
|
Represents management fees paid to Riverstone for services performed
during 2013 prior to the Partnership’s initial public offering. As
these fees were not paid by the Partnership as a public company, the
Partnership believes it is useful to investors to view its results
excluding these fees.
|
(3)
|
|
|
Represents certain transaction expenses related to acquisitions,
potential acquisitions and other items. The Partnership believes it
is useful to investors to view its results excluding these fees.
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES NET INCOME TO DISTRIBUTABLE
CASH FLOW, ADJUSTED DISTRIBUTABLE CASH FLOW AND NET CASH PROVIDED BY
OPERATING ACTIVITIES (In thousands, except for per unit
amounts – Unaudited)
The following table reconciles distributable cash flow and adjusted
distributable cash flow to net income and net cash provided by operating
activities, their most directly comparable GAAP financial measures, for
each of the periods presented:
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Net income
|
|
|
$
|
8,501
|
|
|
$
|
5,013
|
|
|
$
|
4,437
|
|
|
|
$
|
24,946
|
|
|
$
|
11,071
|
|
Plus: Non-cash interest expense
|
|
|
|
307
|
|
|
|
43
|
|
|
|
805
|
|
|
|
|
1,224
|
|
|
|
2,201
|
|
Plus: Depreciation and amortization
|
|
|
|
19,631
|
|
|
|
18,261
|
|
|
|
15,690
|
|
|
|
|
71,156
|
|
|
|
52,917
|
|
Plus: Unit based compensation(1)
|
|
|
|
77
|
|
|
|
855
|
|
|
|
438
|
|
|
|
|
3,034
|
|
|
|
1,343
|
|
Plus: Impairment of compression equipment
|
|
|
|
1,102
|
|
|
|
1,163
|
|
|
|
203
|
|
|
|
|
2,266
|
|
|
|
203
|
|
Less: Maintenance capital expenditures(2)
|
|
|
|
(3,357
|
)
|
|
|
(3,305
|
)
|
|
|
(3,646
|
)
|
|
|
|
(15,800
|
)
|
|
|
(14,304
|
)
|
Distributable cash flow
|
|
|
$
|
26,261
|
|
|
$
|
22,030
|
|
|
$
|
17,927
|
|
|
|
$
|
86,826
|
|
|
$
|
53,431
|
|
Transaction expenses for acquisitions(3)
|
|
|
|
18
|
|
|
|
862
|
|
|
|
661
|
|
|
|
|
1,299
|
|
|
|
2,142
|
|
Loss (gain) on sale of equipment and other
|
|
|
|
(4
|
)
|
|
|
63
|
|
|
|
355
|
|
|
|
|
(2,198
|
)
|
|
|
637
|
|
Adjusted distributable cash flow
|
|
|
$
|
26,275
|
|
|
$
|
22,955
|
|
|
$
|
18,943
|
|
|
|
$
|
85,927
|
|
|
$
|
56,210
|
|
Plus: Maintenance capital expenditures
|
|
|
|
3,357
|
|
|
|
3,305
|
|
|
|
3,646
|
|
|
|
|
15,800
|
|
|
|
14,304
|
|
Plus: Change in operating assets and liabilities
|
|
|
|
1,676
|
|
|
|
13,534
|
|
|
|
4,717
|
|
|
|
|
1,498
|
|
|
|
180
|
|
Less: Transaction expenses for acquisitions
|
|
|
|
(18
|
)
|
|
|
(862
|
)
|
|
|
(661
|
)
|
|
|
|
(1,299
|
)
|
|
|
(2,142
|
)
|
Less: Other
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(133
|
)
|
|
|
|
(35
|
)
|
|
|
(362
|
)
|
Net cash provided by operating activities
|
|
|
$
|
31,290
|
|
|
$
|
38,932
|
|
|
$
|
26,512
|
|
|
|
$
|
101,891
|
|
|
$
|
68,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted distributable cash flow
|
|
|
|
26,275
|
|
|
|
22,955
|
|
|
|
18,943
|
|
|
|
|
85,927
|
|
|
|
56,210
|
|
GP interest in adjusted distributable cash flow
|
|
|
|
546
|
|
|
|
506
|
|
|
|
368
|
|
|
|
|
1,947
|
|
|
|
1,188
|
|
Pre-IPO distributable cash flow
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
2,323
|
|
Adjusted distributable cash flow attributable to LP interest
|
|
|
$
|
25,729
|
|
|
$
|
22,449
|
|
|
$
|
18,575
|
|
|
|
$
|
83,980
|
|
|
$
|
52,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for coverage ratio(4)
|
|
|
$
|
23,131
|
|
|
$
|
22,606
|
|
|
$
|
18,055
|
|
|
|
$
|
85,098
|
|
|
$
|
55,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions reinvested in the DRIP(5)
|
|
|
$
|
13,600
|
|
|
$
|
13,148
|
|
|
$
|
12,637
|
|
|
|
$
|
52,556
|
|
|
$
|
36,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for cash coverage ratio(6)
|
|
|
$
|
9,531
|
|
|
$
|
9,458
|
|
|
$
|
5,418
|
|
|
|
$
|
32,542
|
|
|
$
|
19,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted distributable cash flow coverage ratio
|
|
|
|
1.11
|
|
|
|
0.99
|
|
|
|
1.03
|
|
|
|
|
0.99
|
|
|
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash coverage ratio
|
|
|
|
2.70
|
|
|
|
2.37
|
|
|
|
3.43
|
|
|
|
|
2.58
|
|
|
|
2.74
|
|
(1)
|
|
|
For the quarters ended December 31, 2014 and September 30, 2014,
unit-based compensation expense included $0.2 million of cash
payments related to quarterly payments of distribution equivalent
rights on outstanding phantom unit awards. For the year ended
December 31, 2014, unit-based compensation expense included $0.5
million of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards
and $0.3 million related to the cash portion of any settlement of
phantom unit awards upon vesting. The remainder of the unit-based
compensation expense for 2014 is related to non-cash adjustments to
the unit-based compensation liability, and for 2013 to the non-cash
amortization of unit-based compensation in equity.
|
(2)
|
|
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Reflects actual maintenance capital expenditures for the period
presented. Maintenance capital expenditures are capital expenditures
made to replace partially or fully depreciated assets, to maintain
the operating capacity of the Partnership's assets and extend their
useful lives, or other capital expenditures that are incurred in
maintaining the Partnership's existing business and related cash
flow.
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(3)
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|
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Represents certain transaction expenses related to acquisitions,
potential acquisitions and other items. The Partnership believes it
is useful to investors to view its results excluding these fees.
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(4)
|
|
|
Calculation reflects the value of the distribution for the weighted
average common units outstanding for the years ended December 31,
2014 and 2013. The adjusted distributable cash flow coverage ratio
based on units outstanding at the record dates for each of the
periods are 0.97x and 0.91x. For the year ended December 31, 2013,
pre-IPO distributable cash flow was not included in the calculation
for the coverage ratio.
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(5)
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|
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Represents distribution to holders enrolled in the Partnership's
Distribution Reinvestment Plan ("DRIP") as of the record date for
each period.
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(6)
|
|
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Calculation reflects the value of cash distributions declared for
the weighted average of common and subordinated units not
participating in the Partnership's DRIP for the year ended December
31, 2014. The cash coverage ratio based on units outstanding at the
record date for the period is 2.46x. For the year ended December 31,
2013, pre-IPO distributable cash flow was not included in the
calculation for the coverage ratio.
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|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
|
FULL-YEAR 2015 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW
GUIDANCE RANGE
|
RECONCILIATION TO NET INCOME
|
(In millions – Unaudited)
|
|
|
|
|
|
|
|
Guidance
|
Net income
|
|
|
$13.1 million to $24.1 million
|
Plus: Interest expense
|
|
|
$17.6 million to $18.6 million
|
Plus: Depreciation and amortization
|
|
|
$92.0 million
|
Plus: Income taxes
|
|
|
$0.2 million
|
EBITDA
|
|
|
$123.9 million to $133.9 million
|
Plus: Interest income on capital lease
|
|
|
$1.6 million
|
Plus: Unit-based compensation expense(1)
|
|
|
$4.5 million
|
Adjusted EBITDA
|
|
|
$130.0 million to $140.0 million
|
Less: Cash interest expense
|
|
|
$17.5 million to $18.5 million
|
Less: Income tax provision
|
|
|
$0.2 million
|
Less: Maintenance capital expenditures
|
|
|
$20.0 million
|
Distributable cash flow
|
|
|
$91.3 million to $102.3 million
|
|
|
|
|
(1) Based on the Partnership’s unit closing price as of December 31,
2014.
|
Source: USA Compression Partners, LP
USA Compression Partners, LP Matthew C. Liuzzi,
512-369-1624 Chief Financial Officer mliuzzi@usacompression.com or Mike
Lenox, 512-369-1632 VP of Finance mlenox@usacompression.com
|