AUSTIN, Texas--(BUSINESS WIRE)--Feb. 13, 2017--
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 2016.
Fourth Quarter and Full-Year 2016 Summary
Results
-
Revenues increased in fourth quarter 2016 and decreased in full-year
2016; fourth quarter up 9.2% from fourth quarter 2015 and full-year
2016 down 1.7% over full-year 2015
-
Net income increased; fourth quarter 2016 up 102.0% from fourth
quarter 2015 and full-year 2016 up 108.4% over full-year 2015
-
Net cash provided by operating activities decreased; fourth quarter
2016 down 73.7% from fourth quarter 2015 and full-year 2016 down 11.7%
over full-year 2015
-
Adjusted EBITDA decreased; fourth quarter 2016 down 3.9% from fourth
quarter 2015 and full-year 2016 down 4.5% over full-year 2015
-
Distributable Cash Flow increased in fourth quarter 2016 and decreased
in full-year 2016; fourth quarter 2016 up 2.4% from fourth quarter
2015 and full-year 2016 down 2.1% over full-year 2015
-
Fourth quarter 2016 cash distribution of $0.525 per common unit,
consistent with fourth quarter 2015
-
Distributable Cash Flow Coverage of 0.94x for fourth quarter 2016
-
Cash Coverage of 1.09x for fourth quarter 2016
Full-Year 2017 Outlook
USA Compression is providing the following full-year 2017 guidance:
-
Net income range of $15.8 million to $30.8 million;
-
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;
-
Adjusted EBITDA range of $145.0 million to $160.0 million; and
-
Distributable Cash Flow range of $108.0 million to $123.0 million.
Operational and Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
Operational Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Horsepower (at period end)
|
|
|
1,720,547
|
|
|
|
1,716,296
|
|
|
|
1,712,196
|
|
|
|
1,720,547
|
|
|
|
1,712,196
|
|
|
Revenue Generating Horsepower (at period end)
|
|
|
1,387,073
|
|
|
|
1,364,059
|
|
|
|
1,424,537
|
|
|
|
1,387,073
|
|
|
|
1,424,537
|
|
|
Average Revenue Generating Horsepower
|
|
|
1,366,371
|
|
|
|
1,356,423
|
|
|
|
1,420,060
|
|
|
|
1,377,966
|
|
|
|
1,408,689
|
|
|
Revenue Generating Compression Units (at period end)
|
|
|
2,552
|
|
|
|
2,502
|
|
|
|
2,737
|
|
|
|
2,552
|
|
|
|
2,737
|
|
|
Horsepower Utilization (at period end) (1)
|
|
|
87.1
|
%
|
|
|
88.3
|
%
|
|
|
89.2
|
%
|
|
|
87.1
|
%
|
|
|
89.2
|
%
|
|
Average Horsepower Utilization (for the period) (1)
|
|
|
87.4
|
%
|
|
|
87.3
|
%
|
|
|
89.5
|
%
|
|
|
87.4
|
%
|
|
|
90.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data ($ in thousands, except per
horsepower data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
74,913
|
|
|
$
|
61,130
|
|
|
$
|
68,615
|
|
|
$
|
265,921
|
|
|
$
|
270,545
|
|
|
Average Revenue Per Revenue Generating Horsepower Per Month (2)
|
|
$
|
15.07
|
|
|
$
|
15.35
|
|
|
$
|
15.97
|
|
|
$
|
15.41
|
|
|
$
|
15.90
|
|
|
Net income (loss)
|
|
$
|
3,269
|
|
|
$
|
(2,146)
|
|
|
$
|
(159,630)
|
|
|
$
|
12,935
|
|
|
$
|
(154,273)
|
|
|
Operating income (loss)
|
|
$
|
8,894
|
|
|
$
|
3,187
|
|
|
$
|
(155,324)
|
|
|
$
|
34,408
|
|
|
$
|
(135,605)
|
|
|
Net cash provided by operating activities
|
|
$
|
9,101
|
|
|
$
|
36,139
|
|
|
$
|
34,658
|
|
|
$
|
103,697
|
|
|
$
|
117,401
|
|
|
Gross Operating Margin (3)
|
|
$
|
45,120
|
|
|
$
|
42,245
|
|
|
$
|
47,285
|
|
|
$
|
177,760
|
|
|
$
|
189,006
|
|
|
Gross Operating Margin Percentage
|
|
|
60.2%
|
|
|
|
69.1%
|
|
|
|
68.9%
|
|
|
|
66.8%
|
|
|
|
69.9%
|
|
|
Adjusted EBITDA (3)
|
|
$
|
36,461
|
|
|
$
|
34,634
|
|
|
$
|
37,955
|
|
|
$
|
146,648
|
|
|
$
|
153,572
|
|
|
Adjusted EBITDA Percentage
|
|
|
48.7%
|
|
|
|
56.7%
|
|
|
|
55.3%
|
|
|
|
55.1%
|
|
|
|
56.8%
|
|
|
Distributable Cash Flow (3)
|
|
$
|
28,703
|
|
|
$
|
27,223
|
|
|
$
|
28,041
|
|
|
$
|
118,329
|
|
|
$
|
120,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________________
|
|
(1)
|
|
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 80.6%, 79.5% and 83.2% for the quarters
ended December 31, 2016, September 30, 2016 and December 31, 2015,
respectively, and 80.6% and 83.2% for the years ended December 31,
2016 and 2015, respectively. Average horsepower utilization based on
revenue generating horsepower and fleet horsepower was 79.4%, 78.8%
and 83.4% for the quarters ended December 31, 2016, September 30,
2016 and December 31, 2015, respectively, and 80.3% and 85.1% for
the years ended December 31, 2016 and 2015, respectively.
|
|
|
|
|
|
(2)
|
|
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.
|
|
|
|
|
|
(3)
|
|
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.
|
|
|
|
|
Fourth Quarter 2016 Financial and Operating
Performance
Revenues in the fourth quarter of 2016 increased 9.2% to $74.9 million
from $68.6 million for the fourth quarter of 2015. Net income increased
102.0% to $3.3 million for the fourth quarter of 2016 as compared to a
net loss of $159.6 million for the fourth quarter of 2015. Operating
income increased 105.7% to $8.9 million for the fourth quarter of 2016
as compared to a net operating loss of $155.3 million for the fourth
quarter of 2015. Net cash provided by operating activities decreased
73.7% to $9.1 million in the fourth quarter of 2016 as compared to $34.7
million in the fourth quarter of 2015. Adjusted EBITDA decreased 3.9% to
$36.5 million in the fourth quarter of 2016 from $38.0 million for the
fourth quarter of 2015. Distributable Cash Flow increased 2.4% to $28.7
million in the fourth quarter of 2016 from $28.0 million for the fourth
quarter of 2015.
“We are pleased with our solid finish to 2016 and the overall outlook
for this coming year. Industry activity is picking up, and we expect
that to positively impact our business throughout 2017,” said Eric D.
Long, USA Compression’s President and Chief Executive Officer. “USA
Compression’s focus on large horsepower, infrastructure-related
applications has resulted in relatively stable cash flows as we have
managed through the past year. As our customer base continues to move
into expansion mode, we expect our business, as it always has, to serve
as a lagging indicator, and for demand, and utilization, to pick up over
the course of this year. As we have done in past downturns, we have
prudently managed our capital spending and balance sheet in order to be
in a position to benefit from an active 2017. Based on customer demand,
we expect 2017 to be an inflection point in the market rebound, with a
continued focus on achieving high gross margins and deploying existing
underutilized horsepower. ”
Average revenue generating horsepower decreased 3.8% to 1,366,371 for
the fourth quarter of 2016 from 1,420,060 for the fourth quarter of
2015. Average revenue per revenue generating horsepower per month
decreased 5.6% to $15.07 for the fourth quarter of 2016 from $15.97 for
the fourth quarter of 2015.
Gross operating margin decreased 4.6% to $45.1 million for the fourth
quarter of 2016 from $47.3 million for the fourth quarter of 2015. Gross
operating margin as a percentage of total revenues was 60.2% for the
fourth quarter of 2016 compared to 68.9% in the fourth quarter of 2015.
Expansion capital expenditures were $9.3 million, maintenance capital
expenditures were $2.3 million and cash interest expense, net was $5.1
million for the fourth quarter of 2016.
On January 19, 2017, the Partnership announced a cash distribution of
$0.525 per unit on its common units. This fourth quarter distribution
corresponds to an annualized distribution rate of $2.10 per unit. The
distribution will be paid on February 14, 2017 to unitholders of record
as of the close of business on February 3, 2017. USA Compression
Holdings, LLC, the owner of approximately 39% 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 fourth quarter of
2016, the Distributable Cash Flow Coverage Ratio was 0.94x and the Cash
Coverage Ratio was 1.09x.
Liquidity and Credit Facility
As of December 31, 2016, the Partnership was in compliance with all
covenants under its $1.1 billion revolving credit facility. As of
December 31, 2016, the outstanding balance under the revolving credit
facility, which matures in 2020, was $685.4 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 fourth
quarter and full-year 2016 performance. The call will be broadcast live
over the Internet. Investors may participate either by phone or audio
webcast.
|
|
|
|
|
|
|
By Phone:
|
|
|
|
Dial 888-256-1028 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
913-312-1473. The conference ID for both is 6863249.
|
|
|
|
|
|
|
|
|
|
|
|
A replay of the call will be available through February 24, 2017.
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 conference ID for both is 6863249.
|
|
|
|
|
|
|
|
By Webcast:
|
|
|
|
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.
|
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
expenses and loss (gain) on sale of assets. 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’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 (loss), 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 (loss), 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 (loss) 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 (loss) 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, severance charges, loss (gain) on sale of
assets, proceeds from insurance recovery, 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 any retained cash reserves established
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 2017 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 2017 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, 2016, which the Partnership
expects to file with the Securities and Exchange Commission on or before
the March 16, 2017 filing deadline, and include:
-
changes in general economic conditions and changes in economic
conditions of the crude oil and natural gas industry specifically;
-
competitive conditions in the industry;
-
changes in the long-term supply of and demand for crude oil and
natural gas;
-
our ability to realize the anticipated benefits of acquisitions and to
integrate acquired assets with our existing fleet;
-
actions taken by the Partnership’s customers, competitors and
third-party operators;
-
the deterioration of the financial condition of our customers;
-
changes in the availability and cost of capital;
-
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 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per unit amounts — Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract operations
|
|
$
|
59,605
|
|
$
|
60,282
|
|
$
|
66,002
|
|
$
|
246,950
|
|
$
|
263,816
|
|
Parts and service
|
|
|
15,308
|
|
|
848
|
|
|
2,613
|
|
|
18,971
|
|
|
6,729
|
|
Total revenues
|
|
|
74,913
|
|
|
61,130
|
|
|
68,615
|
|
|
265,921
|
|
|
270,545
|
|
Cost of operations, exclusive of depreciation and amortization
|
|
|
29,793
|
|
|
18,885
|
|
|
21,330
|
|
|
88,161
|
|
|
81,539
|
|
Gross operating margin
|
|
|
45,120
|
|
|
42,245
|
|
|
47,285
|
|
|
177,760
|
|
|
189,006
|
|
Other operating and administrative costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
10,987
|
|
|
12,577
|
|
|
10,520
|
|
|
44,483
|
|
|
40,950
|
|
Depreciation and amortization
|
|
|
23,636
|
|
|
23,195
|
|
|
21,640
|
|
|
92,337
|
|
|
85,238
|
|
Loss (gain) on sale of assets
|
|
|
(23)
|
|
|
(155)
|
|
|
(1,742)
|
|
|
772
|
|
|
(1,040)
|
|
Impairment of compression equipment
|
|
|
1,626
|
|
|
3,441
|
|
|
2
|
|
|
5,760
|
|
|
27,274
|
|
Impairment of goodwill
|
|
|
—
|
|
|
—
|
|
|
172,189
|
|
|
—
|
|
|
172,189
|
|
Total other operating and administrative costs and expenses
|
|
|
36,226
|
|
|
39,058
|
|
|
202,609
|
|
|
143,352
|
|
|
324,611
|
|
Operating income (loss)
|
|
|
8,894
|
|
|
3,187
|
|
|
(155,324)
|
|
|
34,408
|
|
|
(135,605)
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
(5,611)
|
|
|
(5,275)
|
|
|
(4,531)
|
|
|
(21,087)
|
|
|
(17,605)
|
|
Other
|
|
|
5
|
|
|
16
|
|
|
6
|
|
|
35
|
|
|
22
|
|
Total other expense
|
|
|
(5,606)
|
|
|
(5,259)
|
|
|
(4,525)
|
|
|
(21,052)
|
|
|
(17,583)
|
|
Net income (loss) before income tax expense
|
|
|
3,288
|
|
|
(2,072)
|
|
|
(159,849)
|
|
|
13,356
|
|
|
(153,188)
|
|
Income tax expense
|
|
|
19
|
|
|
74
|
|
|
(219)
|
|
|
421
|
|
|
1,085
|
|
Net income (loss)
|
|
$
|
3,269
|
|
$
|
(2,146)
|
|
$
|
(159,630)
|
|
$
|
12,935
|
|
$
|
(154,273)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner's interest in net income (loss)
|
|
$
|
345
|
|
$
|
272
|
|
$
|
(2,062)
|
|
$
|
1,364
|
|
$
|
(1,477)
|
|
Common unitholders' interest in net income (loss)
|
|
$
|
2,924
|
|
$
|
(2,418)
|
|
$
|
(115,055)
|
|
$
|
14,282
|
|
$
|
(107,513)
|
|
Subordinated unitholders' interest in net income (loss)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(42,513)
|
|
$
|
(2,711)
|
|
$
|
(45,283)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
56,415
|
|
|
55,087
|
|
|
38,100
|
|
|
53,043
|
|
|
34,110
|
|
Diluted
|
|
|
56,739
|
|
|
55,302
|
|
|
38,100
|
|
|
53,344
|
|
|
34,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average subordinated units outstanding
|
|
|
—
|
|
|
—
|
|
|
14,049
|
|
|
1,766
|
|
|
14,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per common unit
|
|
$
|
0.05
|
|
$
|
(0.04)
|
|
$
|
(3.02)
|
|
$
|
0.27
|
|
$
|
(3.15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per subordinated unit
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(3.03)
|
|
$
|
(1.54)
|
|
$
|
(3.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per limited partner unit in respective periods
|
|
$
|
0.525
|
|
$
|
0.525
|
|
$
|
0.525
|
|
$
|
2.10
|
|
$
|
2.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands— Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net cash provided by operating activities
|
|
$
|
9,101
|
|
$
|
36,139
|
|
$
|
34,658
|
|
$
|
103,697
|
|
$
|
117,401
|
|
Net cash used in investing activities
|
|
|
(4,964)
|
|
|
(21,223)
|
|
|
(38,590)
|
|
|
(50,831)
|
|
|
(278,158)
|
|
Net cash provided by (used in) financing activities
|
|
|
(4,079)
|
|
|
(14,916)
|
|
|
3,932
|
|
|
(52,808)
|
|
|
160,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
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
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
Net income (loss)
|
|
$
|
3,269
|
|
$
|
(2,146)
|
|
$
|
(159,630)
|
|
$
|
12,935
|
|
$
|
(154,273)
|
|
|
Interest expense, net
|
|
|
5,611
|
|
|
5,275
|
|
|
4,531
|
|
|
21,087
|
|
|
17,605
|
|
|
Depreciation and amortization
|
|
|
23,636
|
|
|
23,195
|
|
|
21,640
|
|
|
92,337
|
|
|
85,238
|
|
|
Income tax expense
|
|
|
19
|
|
|
74
|
|
|
(219)
|
|
|
421
|
|
|
1,085
|
|
|
EBITDA
|
|
$
|
32,535
|
|
$
|
26,398
|
|
$
|
(133,678)
|
|
$
|
126,780
|
|
$
|
(50,345)
|
|
|
Impairment of compression equipment
|
|
|
1,626
|
|
|
3,441
|
|
|
2
|
|
|
5,760
|
|
|
27,274
|
|
|
Impairment of goodwill
|
|
|
-
|
|
|
-
|
|
|
172,189
|
|
|
-
|
|
|
172,189
|
|
|
Interest income on capital lease
|
|
|
407
|
|
|
348
|
|
|
389
|
|
|
1,492
|
|
|
1,631
|
|
|
Unit-based compensation expense (1)
|
|
|
1,892
|
|
|
3,647
|
|
|
795
|
|
|
10,373
|
|
|
3,863
|
|
|
Transaction expenses for acquisitions (2)
|
|
|
(56)
|
|
|
950
|
|
|
—
|
|
|
894
|
|
|
—
|
|
|
Severance charges
|
|
|
80
|
|
|
5
|
|
|
—
|
|
|
577
|
|
|
—
|
|
|
Loss (gain) on sale of assets
|
|
|
(23)
|
|
|
(155)
|
|
|
(1,742)
|
|
|
772
|
|
|
(1,040)
|
|
|
Adjusted EBITDA
|
|
$
|
36,461
|
|
$
|
34,634
|
|
$
|
37,955
|
|
$
|
146,648
|
|
$
|
153,572
|
|
|
Interest expense, net
|
|
|
(5,611)
|
|
|
(5,275)
|
|
|
(4,531)
|
|
|
(21,087)
|
|
|
(17,605)
|
|
|
Income tax expense
|
|
|
(19)
|
|
|
(74)
|
|
|
219
|
|
|
(421)
|
|
|
(1,085)
|
|
|
Interest income on capital lease
|
|
|
(407)
|
|
|
(348)
|
|
|
(389)
|
|
|
(1,492)
|
|
|
(1,631)
|
|
|
Non-cash interest expense
|
|
|
547
|
|
|
546
|
|
|
416
|
|
|
2,108
|
|
|
1,702
|
|
|
Transaction expenses for acquisitions
|
|
|
56
|
|
|
(950)
|
|
|
—
|
|
|
(894)
|
|
|
—
|
|
|
Severance charges
|
|
|
(80)
|
|
|
(5)
|
|
|
—
|
|
|
(577)
|
|
|
—
|
|
|
Changes in operating assets and liabilities
|
|
|
(21,846)
|
|
|
7,611
|
|
|
988
|
|
|
(20,588)
|
|
|
(17,552)
|
|
|
Net cash provided by operating activities
|
|
$
|
9,101
|
|
$
|
36,139
|
|
$
|
34,658
|
|
$
|
103,697
|
|
$
|
117,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________________
|
|
(1)
|
For the quarters ended December 31, 2016, September 30, 2016 and
December 31, 2015, unit-based compensation expense included $0.6
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. For the year ended
December 31, 2016 and 2015, unit-based compensation expense
included $2.8 million and $0.9 million, respectively, of cash
payments related to quarterly payments of distribution equivalent
rights on outstanding phantom unit awards and $0.1 million
and $0.2 million, respectively, related to the cash portion of any
settlement of phantom unit awards upon vesting. 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
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
|
|
Year Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net income (loss)
|
|
$
|
3,269
|
|
$
|
(2,146)
|
|
$
|
(159,630)
|
|
$
|
12,935
|
|
$
|
(154,273)
|
|
Plus: Non-cash interest expense
|
|
|
547
|
|
|
546
|
|
|
416
|
|
|
2,108
|
|
|
1,702
|
|
Plus: Non-cash income tax expense
|
|
|
31
|
|
|
74
|
|
|
(202)
|
|
|
239
|
|
|
874
|
|
Plus: Depreciation and amortization
|
|
|
23,636
|
|
|
23,195
|
|
|
21,640
|
|
|
92,337
|
|
|
85,238
|
|
Plus: Unit-based compensation expense (1)
|
|
|
1,892
|
|
|
3,647
|
|
|
795
|
|
|
10,373
|
|
|
3,863
|
|
Plus: Impairment of compression equipment
|
|
|
1,626
|
|
|
3,441
|
|
|
2
|
|
|
5,760
|
|
|
27,274
|
|
Plus: Impairment of goodwill
|
|
|
—
|
|
|
—
|
|
|
172,189
|
|
|
—
|
|
|
172,189
|
|
Plus: Transaction expenses for acquisitions (2)
|
|
|
(56)
|
|
|
950
|
|
|
—
|
|
|
894
|
|
|
—
|
|
Plus: Severance charges
|
|
|
80
|
|
|
5
|
|
|
—
|
|
|
577
|
|
|
—
|
|
Plus: Loss (gain) on sale of assets
|
|
|
(23)
|
|
|
(155)
|
|
|
(1,742)
|
|
|
772
|
|
|
(1,040)
|
|
Plus: Proceeds from insurance recovery
|
|
|
—
|
|
|
73
|
|
|
594
|
|
|
73
|
|
|
1,157
|
|
Less: Maintenance capital expenditures (3)
|
|
|
(2,299)
|
|
|
(2,407)
|
|
|
(6,021)
|
|
|
(7,739)
|
|
|
(16,134)
|
|
Distributable Cash Flow
|
|
$
|
28,703
|
|
$
|
27,223
|
|
$
|
28,041
|
|
$
|
118,329
|
|
$
|
120,850
|
|
Plus: Maintenance capital expenditures
|
|
|
2,299
|
|
|
2,407
|
|
|
6,021
|
|
|
7,739
|
|
|
16,134
|
|
Plus: Change in working capital
|
|
|
(21,846)
|
|
|
7,611
|
|
|
988
|
|
|
(20,588)
|
|
|
(17,552)
|
|
Less: Transaction expenses for acquisitions
|
|
|
56
|
|
|
(950)
|
|
|
—
|
|
|
(894)
|
|
|
—
|
|
Less: Other
|
|
|
(111)
|
|
|
(152)
|
|
|
(392)
|
|
|
(889)
|
|
|
(2,031)
|
|
Net cash provided by operating activities
|
|
$
|
9,101
|
|
$
|
36,139
|
|
$
|
34,658
|
|
$
|
103,697
|
|
$
|
117,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow
|
|
$
|
28,703
|
|
$
|
27,223
|
|
$
|
28,041
|
|
$
|
118,329
|
|
$
|
120,850
|
|
Cash distributions to general partner and IDRs
|
|
|
723
|
|
|
717
|
|
|
702
|
|
|
2,866
|
|
|
2,658
|
|
Distributable Cash Flow attributable to limited partner interest
|
|
$
|
27,980
|
|
$
|
26,506
|
|
$
|
27,339
|
|
$
|
115,463
|
|
$
|
118,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Distributable Cash Flow Coverage Ratio (4)
|
|
$
|
29,618
|
|
$
|
29,025
|
|
$
|
27,618
|
|
$
|
115,881
|
|
$
|
101,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions reinvested in the DRIP (5)
|
|
$
|
4,042
|
|
$
|
4,108
|
|
$
|
11,468
|
|
$
|
24,441
|
|
$
|
55,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Cash Coverage Ratio (6)
|
|
$
|
25,576
|
|
$
|
24,917
|
|
$
|
16,150
|
|
$
|
91,440
|
|
$
|
45,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow Coverage Ratio (7)
|
|
|
0.94
|
|
|
0.91
|
|
|
0.99
|
|
|
1.00
|
|
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Coverage Ratio (8)
|
|
|
1.09
|
|
|
1.06
|
|
|
1.69
|
|
|
1.26
|
|
|
2.58
|
|
|
|
________________________
|
|
(1)
|
For the quarters ended December 31, 2016, September 30, 2016 and
December 31, 2015, unit-based compensation expense included $0.6
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. For the year ended
December 31, 2016 and 2015, unit-based compensation expense included
$2.8 million and $0.9 million, respectively, of cash payments
related to quarterly payments of distribution equivalent rights on
outstanding phantom unit awards and $0.1 million and $0.2 million,
respectively, related to the cash portion of any settlement of
phantom unit awards upon vesting. 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.
|
|
|
|
|
(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)
|
Represents distributions to the holders of the Partnership’s common
units, after giving effect to the weighted average common units
outstanding due to our December 2016 and September 2015 equity
offerings for the quarter ended December 31, 2016 and the years
ended December 31, 2016 and 2015, as applicable. Without giving
effect to the weighted average common units outstanding due to our
December 2016 and September 2015 equity offerings for the quarter
ended December 31, 2016 and the years ended December 31, 2016 and
2015, actual distributions to holders of the Partnership’s common
units were $31.9 million, $118.1 million, and $103.1 million,
respectively.
|
|
|
|
|
(5)
|
Represents distributions to holders enrolled in the DRIP as of the
record date for each period.
|
|
|
|
|
(6)
|
Represents cash distributions declared for common units not
participating in the DRIP after giving effect to the weighted
average common units outstanding due to our December 2016 and
September 2015 equity offerings for the quarter ended December 31,
2016 and the years ended December 31, 2016 and 2015, as applicable.
|
|
|
|
|
(7)
|
For the quarter ended December 31, 2016, the Distributable Cash Flow
Coverage Ratio based on actual units outstanding at the record date
was 0.88x. For the years ended December 31, 2016 and 2015, the
Distributable Cash Flow Coverage Ratio based on actual units
outstanding at the respective record dates was 0.98x and 1.15x,
respectively.
|
|
|
|
|
(8)
|
For the quarter ended December 31, 2016, the Cash Coverage Ratio
based on actual units outstanding at the record date was 1.00x. For
the years ended December 31, 2016 and 2015, the Cash Coverage Ratio
based on actual units outstanding at the respective record dates was
1.23x and 2.48x, respectively.
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
FULL-YEAR 2017 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW
GUIDANCE RANGE
RECONCILIATION TO NET INCOME
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Guidance
|
|
Net income
|
|
|
$15.8 million to $30.8 million
|
|
Plus: Interest expense
|
|
|
$26.9 million
|
|
Plus: Depreciation and amortization
|
|
|
$92.3 million
|
|
Plus: Income tax expense
|
|
|
$0.2 million
|
|
EBITDA
|
|
|
$135.2 million to $150.2 million
|
|
Plus: Interest income on capital lease
|
|
|
$1.2 million
|
|
Plus: Unit-based compensation expense (1)
|
|
|
$8.6 million
|
|
Adjusted EBITDA
|
|
|
$145.0 million to $160.0 million
|
|
Less: Cash interest expense
|
|
|
$24.8 million
|
|
Less: Current income tax expense
|
|
|
$0.2 million
|
|
Less: Maintenance capital expenditures
|
|
|
$12.0 million
|
|
Distributable Cash Flow
|
|
|
$108.0 million to $123.0 million
|
|
________________________
|
|
(1)
|
Based on the Partnership’s unit closing price as of December 31,
2016.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170213005305/en/
Source: USA Compression Partners, LP
USA Compression Partners, LP
Matthew C. Liuzzi,
512-369-1624
Chief Financial Officer
mliuzzi@usacompression.com
|
