AUSTIN, Texas--(BUSINESS WIRE)--Nov. 8, 2016--
USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the
“Partnership”) announced today its financial and operating results for
the third quarter 2016.
Third Quarter 2016 Summary Results
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Revenues decreased; third quarter 2016 down 13.3% from third quarter
2015
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Net income decreased; third quarter 2016 down 121.9% from third
quarter 2015
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Net cash provided by operating activities increased; third quarter
2016 up 5.7% from third quarter 2015
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Adjusted EBITDA decreased; third quarter 2016 down 12.3% from third
quarter 2015
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Distributable Cash Flow decreased; third quarter 2016 down 15.6% from
third quarter 2015
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Third quarter 2016 cash distribution of $0.525 per common unit,
consistent with third quarter 2015
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Distributable Cash Flow Coverage of 0.91x for third quarter 2016
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Cash Coverage of 1.06x for third quarter 2016
Full-Year 2016 Outlook
USA Compression is updating its full-year 2016 guidance as follows:
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Net income range of $9.3 million to $14.3 million;
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A forward-looking estimate of 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, 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 and Distributable Cash Flow;
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Adjusted EBITDA range of $142.5 million to $147.5 million; and
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Distributable Cash Flow range of $114 million to $119 million.
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Three months ended
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September 30,
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June 30,
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September 30,
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2016
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2016
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2015
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Operational Data
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Fleet Horsepower at period end
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1,716,296
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1,718,757
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1,686,300
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Revenue Generating Horsepower at period end
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1,364,059
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1,359,523
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1,415,355
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Average Revenue Generating Horsepower
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1,356,423
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1,378,496
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1,423,749
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Revenue Generating Compression Units at period end
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2,502
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2,558
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2,765
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Horsepower Utilization at period end (1)
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88.3
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%
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86.0
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%
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90.4
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%
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Average Horsepower Utilization for the period (1)
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87.3
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%
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86.1
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%
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90.2
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%
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Financial Data ($ in thousands, except per
horsepower data)
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Revenue
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$
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61,130
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$
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63,511
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$
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70,540
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Average Revenue Per Revenue Generating Horsepower Per Month (2)
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$
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15.35
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$
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15.52
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$
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15.94
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Net income (loss)
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$
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(2,146
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)
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$
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3,274
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$
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9,805
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Operating income
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$
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3,187
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$
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8,500
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$
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15,547
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Net cash provided by operating activities
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$
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36,139
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$
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36,497
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$
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34,193
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Gross Operating Margin (3)
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$
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42,245
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$
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44,857
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$
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48,621
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Gross Operating Margin Percentage
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69.1
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%
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70.6
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%
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68.9
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%
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Adjusted EBITDA (3)
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$
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34,634
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$
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37,149
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$
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39,481
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Adjusted EBITDA Percentage
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56.7
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%
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58.5
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%
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56.0
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%
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Distributable Cash Flow (3) (4)
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$
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27,223
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$
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30,490
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$
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32,269
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______________________________
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(1)
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Horsepower utilization is calculated as (i) the sum of (a) revenue
generating horsepower; (b) horsepower in the Partnership’s fleet
that is under contract but is not yet generating revenue; and (c)
horsepower not yet in the Partnership’s fleet that is under
contract, not yet generating revenue and 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 79.5%, 79.1% and 83.9% for the quarters
ended September 30, 2016, June 30, 2016 and September 30, 2015,
respectively. Average horsepower utilization based on revenue
generating horsepower and fleet horsepower was 78.8%, 80.4% and
85.3% for the quarters ended September 30, 2016, June 30, 2016 and
September 30, 2015, respectively.
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(2)
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Calculated as the average of the result of dividing the contractual
monthly rate for all units at the end of each month in the period by
the sum of the revenue generating horsepower at the end of each
month in the period.
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(3)
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Gross operating margin, Adjusted EBITDA and Distributable Cash Flow
are all non-U.S. generally accepted accounting principles
(“Non-GAAP”) financial measures. For the definition of each measure,
see “Non-GAAP Financial Measures” below.
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(4)
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Distributable Cash Flow for the quarter ended September 30, 2015 was
previously presented as Adjusted Distributable Cash Flow. The
definition of Distributable Cash Flow is identical to the definition
of Adjusted Distributable Cash Flow previously presented. See
“Non-GAAP Financial Measures” below for the definition of
Distributable Cash Flow.
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Third Quarter 2016 Financial and Operating
Performance
Revenues in the third quarter of 2016 decreased 13.3% to $61.1 million
from $70.5 million for the third quarter of 2015. Net income decreased
121.9% to a net loss of $2.1 million for the third quarter of 2016 as
compared to net income of $9.8 million for the third quarter of 2015.
Operating income decreased 79.5% to $3.2 million for the third quarter
of 2016 as compared to $15.5 million for the third quarter of 2015. Net
cash provided by operating activities increased 5.7% to $36.1 million in
the third quarter of 2016 as compared to $34.2 million in the third
quarter of 2015. Adjusted EBITDA decreased 12.3% to $34.6 million in the
third quarter of 2016 from $39.5 million for the third quarter of 2015.
Distributable Cash Flow decreased 15.6% to $27.2 million in the third
quarter of 2016 from $32.3 million for the third quarter of 2015.
“As we have progressed through the first three quarters of 2016, we
anticipated the third quarter results would reflect, in part, the softer
activity levels we experienced earlier in the year,” said Eric D. Long,
USA Compression’s President and Chief Executive Officer. “Our business
generally serves as a lagging indicator of our customers’ activity, and
we expect the general recovery we have seen in the energy sector since
the springtime lows to positively impact our business as we move
forward. Specifically, recent trends in our business, including customer
demand indications, actual contracting activity and fleet utilization
provide additional optimism as we approach the end of 2016 and look to
the start of 2017. Our customers are continuing to pursue projects that
will require meaningful compression, and we expect to grow alongside
them, while continuing to be judicious in our capital allocation and
keeping a close watch on our cost structure.”
Average revenue generating horsepower decreased 4.7% to 1,356,423 for
the third quarter of 2016 from 1,423,749 for the third quarter of 2015.
Average revenue per revenue generating horsepower per month decreased
3.7% to $15.35 for the third quarter of 2016 from $15.94 for the third
quarter of 2015.
Gross operating margin decreased 13.1% to $42.2 million for the third
quarter of 2016 from $48.6 million for the third quarter of 2015. Gross
operating margin as a percentage of total revenues was 69.1% for the
third quarter of 2016 compared to 68.9% in the third quarter of 2015.
Expansion capital expenditures were $10.9 million, maintenance capital
expenditures were $2.4 million and cash interest expense, net was $4.7
million for the third quarter of 2016.
On October 20, 2016, the Partnership announced a cash distribution of
$0.525 per unit on its common units. This third quarter distribution
corresponds to an annualized distribution rate of $2.10 per unit. The
distribution will be paid on November 14, 2016 to unitholders of record
as of the close of business on November 4, 2016. USA Compression
Holdings, LLC, the owner of approximately 42.9% of the Partnership’s
outstanding limited partner interests, elected to reinvest 30% of this
distribution with respect to its units pursuant to the Partnership’s
Distribution Reinvestment Plan (the “DRIP”). For the third quarter of
2016, the Distributable Cash Flow Coverage Ratio was 0.91x and the Cash
Coverage Ratio was 1.06x.
Liquidity and Credit Facility
As of September 30, 2016, the Partnership was in compliance with all
covenants under its $1.1 billion revolving credit facility. As of
September 30, 2016, the outstanding balance under the revolving credit
facility, which matures in 2020, was $743.9 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 third
quarter 2016 performance. The call will be broadcast live over the
Internet. Investors may participate either by phone or audio webcast.
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By Phone:
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Dial 800-344-6491 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
785-830-7988. The conference ID for both is 5620867.
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A replay of the call will be available through November 19, 2016.
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 5620867.
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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 investors.usacompression.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
Partnership partners with a broad customer base composed of producers,
processors, gatherers and transporters of natural gas and crude oil. The
Partnership focuses on providing compression services to infrastructure
applications primarily in high-volume gathering systems, processing
facilities and transportation applications. More information is
available at usacompression.com.
Non-GAAP Financial Measures
This news release includes the non-GAAP financial measures of Adjusted
EBITDA, Gross operating margin, Distributable Cash Flow, Distributable
Cash Flow Coverage Ratio and Cash Coverage Ratio.
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, prior year and budget. The Partnership
defines EBITDA as net income (loss) before net interest expense,
depreciation and amortization expense, and income taxes. The Partnership
defines Adjusted EBITDA as EBITDA plus impairment of compression
equipment, impairment of goodwill, interest income on capital lease,
unit-based compensation expense, severance charges, certain transaction
fees and loss (gain) on sale of assets and other. 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:
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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;
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the viability of capital expenditure projects and the overall rates of
return on alternative investment opportunities;
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the ability of the Partnership’s assets to generate cash sufficient to
make debt payments and distributions; and
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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’s management believes that Adjusted EBITDA provides
useful information to investors because, when viewed with U.S. generally
accepted accounting principles (“GAAP”) results and the accompanying
reconciliations, it provides a more complete understanding of the
Partnership’s performance than GAAP results alone. The Partnership’s
management 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 (loss), operating income, cash flows from
operating activities or any other measure of financial performance or
liquidity 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 is defined as revenue 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 performance. 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, its most directly comparable GAAP financial measure, 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.
A reconciliation of gross operating margin to operating income is
provided in this news release.
Distributable Cash Flow is defined as net income (loss) plus non-cash
interest expense, non-cash income tax expense, depreciation and
amortization expense, unit-based compensation expense, severance
charges, impairment of compression equipment, impairment of goodwill,
certain transaction fees and loss (gain) on sale of assets and other,
less maintenance capital expenditures. The definition of Distributable
Cash Flow is identical to the definition of Adjusted Distributable Cash
Flow previously presented.
The Partnership’s management believes Distributable Cash Flow is an
important measure of operating performance because such measure allows
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
DRIP) to the cash distributions the Partnership expects to pay its
unitholders.
Distributable Cash Flow Coverage Ratio, a non-GAAP measure, is defined
as Distributable Cash Flow less cash distributions to be paid to the
Partnership’s general partner and incentive distribution rights (“IDRs”)
in respect of such period, divided by distributions declared to limited
partner unitholders in respect of such period. Cash Coverage Ratio is
defined as Distributable Cash Flow less cash distributions to be paid to
the Partnership’s general partner and IDRs in respect of such period,
divided by cash distributions expected to be paid to limited partner
unitholders in respect of such period, after taking into account the
non-cash impact of the DRIP. The Partnership’s management believes
Distributable Cash Flow Coverage Ratio and Cash Coverage Ratio are
important measures of operating performance because they allow
management, investors and others to gauge the Partnership’s ability to
pay cash distributions to limited partner unitholders using the cash
flows the Partnership generates. The Partnership’s Distributable Cash
Flow Coverage Ratio and Cash Coverage Ratio as presented may not be
comparable to similarly titled measures of other companies.
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 2016 fiscal year. A forward-looking estimate of net
cash provided by operating activities and reconciliations of the
forward-looking estimates of Adjusted EBITDA and Distributable Cash Flow
to net cash provided by operating activities are not provided because
the items necessary to estimate net cash provided by operating
activities, in particular the change in operating assets and
liabilities, 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 and
Distributable Cash Flow.
See “Reconciliation of Non-GAAP Financial Measures” for Adjusted EBITDA
reconciled to net income (loss) and net cash provided by operating
activities, and net income (loss) and net cash provided by operating
activities reconciled to Distributable Cash Flow, Distributable Cash
Flow Coverage Ratio and Cash Coverage Ratio.
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 2016 Outlook.”
These statements discuss future expectations, contain projections of
results of operations or of financial condition, or state other
“forward-looking” information. You are cautioned not to place undue
reliance on any forward-looking statements, which 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
noted below 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. 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, 2015, which was filed with the
Securities and Exchange Commission on February 11, 2016, and Part II,
Item 1A (“Risk Factors”) of the Partnership’s Quarterly Report on Form
10-Q for the quarter ended June 30, 2016, which was filed with the
Securities and Exchange Commission on August 4, 2016, and include:
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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 crude oil and
natural gas;
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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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the deterioration of the financial condition of our customers;
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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;
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the effects of existing and future laws and governmental regulations;
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the effects of future litigation; and
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other factors discussed in the Partnership’s filings with the
Securities and Exchange Commission.
All forward-looking statements speak only as of the date of this news
release and 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
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except for
unit amounts — Unaudited)
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Three months ended
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September 30,
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June 30,
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September 30,
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2016
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2016
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2015
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Revenues:
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Contract operations
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$
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60,282
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$
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62,785
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$
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68,227
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Parts and service
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848
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726
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2,313
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Total revenues
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61,130
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63,511
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70,540
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Cost of operations, exclusive of depreciation and amortization
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18,885
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18,654
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21,919
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Gross operating margin
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42,245
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44,857
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48,621
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Other operating and administrative costs and expenses:
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Selling, general and administrative
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12,577
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11,180
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10,351
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Depreciation and amortization
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23,195
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23,412
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21,360
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Loss (gain) on sale of assets
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(155
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)
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1,072
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920
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Impairment of compression equipment
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3,441
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693
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443
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Total other operating and administrative costs and expenses
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39,058
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36,357
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33,074
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Operating income
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3,187
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8,500
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15,547
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|
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Other income (expense):
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|
|
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|
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Interest expense, net
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(5,275
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)
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(5,139
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)
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(4,665
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)
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Other
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16
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7
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6
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Total other expense
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(5,259
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)
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(5,132
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)
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(4,659
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)
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Net income (loss) before income tax expense
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(2,072
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)
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3,368
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|
|
10,888
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|
|
Income tax expense
|
|
|
|
|
74
|
|
|
|
|
94
|
|
|
|
|
1,083
|
|
|
Net income (loss)
|
|
|
|
$
|
(2,146
|
)
|
|
|
$
|
3,274
|
|
|
|
$
|
9,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner's interest in net income (loss)
|
|
|
|
$
|
272
|
|
|
|
$
|
345
|
|
|
|
$
|
411
|
|
|
Common units interest in net income (loss)
|
|
|
|
$
|
(2,418
|
)
|
|
|
$
|
2,929
|
|
|
|
$
|
7,185
|
|
|
Subordinated units interest in net income (loss)
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
2,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
55,086,760
|
|
|
|
|
54,505,856
|
|
|
|
|
34,123,395
|
|
|
Diluted
|
|
|
|
|
55,301,959
|
|
|
|
|
54,751,902
|
|
|
|
|
34,233,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average subordinated units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
14,048,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
0.05
|
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per subordinated unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per limited partner unit in respective periods
|
|
|
|
$
|
0.525
|
|
|
|
$
|
0.525
|
|
|
|
$
|
0.525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands —
Unaudited)
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
Net cash provided by operating activities
|
|
|
|
$
|
36,139
|
|
|
|
$
|
36,497
|
|
|
|
$
|
34,193
|
|
|
Net cash used in investing activities
|
|
|
|
|
(21,223
|
)
|
|
|
|
(8,481
|
)
|
|
|
|
(57,169
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
(14,916
|
)
|
|
|
|
(28,016
|
)
|
|
|
|
22,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES
ADJUSTED EBITDA TO NET INCOME
(LOSS) AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(In
thousands — Unaudited)
The following table reconciles Adjusted EBITDA to net income (loss) and
net cash provided by operating activities, its most directly comparable
GAAP financial measures, for each of the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
Net income (loss)
|
|
|
|
$
|
(2,146
|
)
|
|
|
$
|
3,274
|
|
|
|
$
|
9,805
|
|
|
Interest expense, net
|
|
|
|
|
5,275
|
|
|
|
|
5,139
|
|
|
|
|
4,665
|
|
|
Depreciation and amortization
|
|
|
|
|
23,195
|
|
|
|
|
23,412
|
|
|
|
|
21,360
|
|
|
Income taxes
|
|
|
|
|
74
|
|
|
|
|
94
|
|
|
|
|
1,083
|
|
|
EBITDA
|
|
|
|
$
|
26,398
|
|
|
|
$
|
31,919
|
|
|
|
$
|
36,913
|
|
|
Impairment of compression equipment
|
|
|
|
|
3,441
|
|
|
|
|
693
|
|
|
|
|
443
|
|
|
Interest income on capital lease
|
|
|
|
|
348
|
|
|
|
|
362
|
|
|
|
|
401
|
|
|
Unit-based compensation expense (1)
|
|
|
|
|
3,647
|
|
|
|
|
3,022
|
|
|
|
|
804
|
|
|
Transaction expenses for acquisitions (2)
|
|
|
|
|
950
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Severance charges
|
|
|
|
|
5
|
|
|
|
|
81
|
|
|
|
|
-
|
|
|
Loss (gain) on sale of assets
|
|
|
|
|
(155
|
)
|
|
|
|
1,072
|
|
|
|
|
920
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
34,634
|
|
|
|
$
|
37,149
|
|
|
|
$
|
39,481
|
|
|
Interest expense, net
|
|
|
|
|
(5,275
|
)
|
|
|
|
(5,139
|
)
|
|
|
|
(4,665
|
)
|
|
Income tax expense
|
|
|
|
|
(74
|
)
|
|
|
|
(94
|
)
|
|
|
|
(1,083
|
)
|
|
Interest income on capital lease
|
|
|
|
|
(348
|
)
|
|
|
|
(362
|
)
|
|
|
|
(401
|
)
|
|
Non-cash interest expense
|
|
|
|
|
546
|
|
|
|
|
548
|
|
|
|
|
416
|
|
|
Transaction expenses for acquisitions
|
|
|
|
|
(950
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Severance charges
|
|
|
|
|
(5
|
)
|
|
|
|
(81
|
)
|
|
|
|
-
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
7,611
|
|
|
|
|
4,476
|
|
|
|
|
445
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
36,139
|
|
|
|
$
|
36,497
|
|
|
|
$
|
34,193
|
|
|
_________________________
|
|
(1)
|
|
For the quarters ended September 30, 2016, June 30, 2016 and
September 30, 2015, unit-based compensation expense included $0.7
million, $0.7 million, and $0.2 million, respectively, of cash
payments related to quarterly payments of distribution equivalent
rights on outstanding phantom unit awards. The remainder of the
unit-based compensation expense for each period presented in 2016
and 2015 was related to non-cash adjustments to the unit-based
compensation liability.
|
|
(2)
|
|
Represents certain transaction expenses related to potential
acquisitions. The Partnership believes it is useful to investors to
exclude these fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES
DISTRIBUTABLE CASH FLOW TO
NET INCOME (LOSS) AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(In
thousands, except for per unit amounts — Unaudited)
The following table reconciles Distributable Cash Flow to net income
(loss) and net cash provided by operating activities, its most directly
comparable GAAP financial measures, for each of the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
Net income (loss)
|
|
|
|
$
|
(2,146
|
)
|
|
|
$
|
3,274
|
|
|
|
$
|
9,805
|
|
|
Plus: Non-cash interest expense
|
|
|
|
|
546
|
|
|
|
|
548
|
|
|
|
|
416
|
|
|
Plus: Non-cash income tax expense
|
|
|
|
|
74
|
|
|
|
|
32
|
|
|
|
|
1,076
|
|
|
Plus: Depreciation and amortization
|
|
|
|
|
23,195
|
|
|
|
|
23,412
|
|
|
|
|
21,360
|
|
|
Plus: Unit-based compensation expense (1)
|
|
|
|
|
3,647
|
|
|
|
|
3,022
|
|
|
|
|
804
|
|
|
Plus: Impairment of compression equipment
|
|
|
|
|
3,441
|
|
|
|
|
693
|
|
|
|
|
443
|
|
|
Plus: Transaction expenses for acquisitions (2)
|
|
|
|
|
950
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Plus: Severance charges
|
|
|
|
|
5
|
|
|
|
|
81
|
|
|
|
|
-
|
|
|
Plus: Loss (gain) on sale of assets and other
|
|
|
|
|
(82
|
)
|
|
|
|
1,072
|
|
|
|
|
1,324
|
|
|
Less: Maintenance capital expenditures (3)
|
|
|
|
|
(2,407
|
)
|
|
|
|
(1,644
|
)
|
|
|
|
(2,959
|
)
|
|
Distributable cash flow (4)
|
|
|
|
$
|
27,223
|
|
|
|
$
|
30,490
|
|
|
|
$
|
32,269
|
|
|
Plus: Maintenance capital expenditures
|
|
|
|
|
2,407
|
|
|
|
|
1,644
|
|
|
|
|
2,959
|
|
|
Plus: Changes in operating assets and liabilities
|
|
|
|
|
7,611
|
|
|
|
|
4,476
|
|
|
|
|
445
|
|
|
Less: Other
|
|
|
|
|
(1,102
|
)
|
|
|
|
(113
|
)
|
|
|
|
(1,480
|
)
|
|
Net cash provided by operating activities
|
|
|
|
$
|
36,139
|
|
|
|
$
|
36,497
|
|
|
|
$
|
34,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow
|
|
|
|
|
27,223
|
|
|
|
|
30,490
|
|
|
|
|
32,269
|
|
|
Less: Cash distributions to general partner and IDRs
|
|
|
|
|
717
|
|
|
|
|
715
|
|
|
|
|
697
|
|
|
Distributable Cash Flow attributable to limited partner interest
|
|
|
|
$
|
26,506
|
|
|
|
$
|
29,775
|
|
|
|
$
|
31,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Distributable Cash Flow Coverage Ratio (5)
|
|
|
|
$
|
29,025
|
|
|
|
$
|
28,805
|
|
|
|
$
|
25,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions reinvested in the DRIP (6)
|
|
|
|
$
|
4,108
|
|
|
|
$
|
6,483
|
|
|
|
$
|
15,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Cash Coverage Ratio (7)
|
|
|
|
$
|
24,917
|
|
|
|
$
|
22,322
|
|
|
|
$
|
10,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow Coverage Ratio
|
|
|
|
|
0.91
|
|
|
|
|
1.03
|
|
|
|
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Coverage Ratio
|
|
|
|
|
1.06
|
|
|
|
|
1.33
|
|
|
|
|
3.12
|
|
|
______________________
|
|
(1)
|
|
For the quarters ended September 30, 2016, June 30, 2016 and
September 30, 2015, unit-based compensation expense included $0.7
million, $0.7 million, and $0.2 million, respectively, of cash
payments related to quarterly payments of distribution equivalent
rights on outstanding phantom unit awards, respectively. The
remainder of the unit-based compensation expense for 2016 and 2015
was related to non-cash adjustments to the unit-based compensation
liability.
|
|
(2)
|
|
Represents certain transaction expenses related to potential
acquisitions. The Partnership believes it is useful to investors to
exclude these fees.
|
|
(3)
|
|
Reflects actual maintenance capital expenditures for the period
presented. Maintenance capital expenditures are capital expenditures
made to maintain the operating capacity of the Partnership’s assets
and extend their useful lives, replace partially or fully
depreciated assets or other capital expenditures that are incurred
in maintaining the Partnership’s existing business and related
operating income.
|
|
(4)
|
|
Distributable Cash Flow for the quarter ended September 30, 2015 was
previously presented as Adjusted Distributable Cash Flow. The
definition of Distributable Cash Flow is identical to the definition
of Adjusted Distributable Cash Flow previously presented. See
“Non-GAAP Financial Measures” above for the definition of
Distributable Cash Flow.
|
|
(5)
|
|
Represents distribution to the holders of the Partnership’s units
for each period.
|
|
(6)
|
|
Represents distributions to holders enrolled in the DRIP as of the
record date for each period. The amount for the quarter ended
September 30, 2016 is based on an estimate as of the record date.
|
|
(7)
|
|
Represents cash distributions declared for common units not
participating in the DRIP for each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
FULL-YEAR
2016 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW GUIDANCE RANGE
RECONCILIATION
TO NET INCOME
(Unaudited)
|
|
|
|
|
|
|
|
Guidance
|
|
Net income
|
|
|
|
$9.3 million to $14.3 million
|
|
Plus: Interest expense, net
|
|
|
|
$21.2 million
|
|
Plus: Depreciation and amortization
|
|
|
|
$91.6 million
|
|
Plus: Income tax expense
|
|
|
|
$0.4 million
|
|
EBITDA
|
|
|
|
$122.5 million to $127.5 million
|
|
Plus: Interest income on capital lease
|
|
|
|
$1.5 million
|
|
Plus: Unit-based compensation expense (1)
|
|
|
|
$12.1 million
|
|
Plus: Impairment of compression equipment
|
|
|
|
$4.1 million
|
|
Plus: Loss (gain) on sale of assets
|
|
|
|
$0.8 million
|
|
Plus: Transaction expenses
|
|
|
|
$1.0 million
|
|
Plus: Severance charges
|
|
|
|
$0.5 million
|
|
Adjusted EBITDA
|
|
|
|
$142.5 million to $147.5 million
|
|
Less: Cash interest expense
|
|
|
|
$20.0 million
|
|
Less: Current income tax expense
|
|
|
|
$0.5 million
|
|
Less: Maintenance capital expenditures
|
|
|
|
$8.0 million
|
|
Distributable Cash Flow
|
|
|
|
$114.0 million to $119.0 million
|
|
______________________
|
|
(1) Based on the Partnership’s unit closing price as of
September 30, 2016.
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161108005345/en/
Source: USA Compression Partners, LP
USA Compression Partners, LP
Matthew C. Liuzzi,
512-369-1624
Chief Financial Officer
mliuzzi@usacompression.com
|
