AUSTIN, Texas--(BUSINESS WIRE)--Nov. 5, 2015--
USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the
“Partnership”), announced today its financial and operating results for
the third quarter 2015.
Third Quarter 2015 Summary Results
-
Record levels of revenues; third quarter 2015 up 23.7% over third
quarter 2014
-
Record levels of Adjusted EBITDA; third quarter 2015 up 34.6% over
third quarter 2014
-
Record levels of Adjusted distributable cash flow; third quarter 2015
up 40.6% over third quarter 2014
-
Third quarter 2015 cash distribution of $0.525 per common unit, an
increase of 4.0% over third quarter 2014
-
Fleet horsepower for third quarter 2015 increased by 16.1% over third
quarter 2014
-
Average revenue per horsepower per month for third quarter 2015
increased 1.7% over third quarter 2014
-
Adjusted distributable cash flow coverage of 1.25x for the third
quarter 2015
-
Cash coverage of 3.12x for the third quarter 2015
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
Operational Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Horsepower at period end
|
|
|
|
|
1,686,300
|
|
|
|
|
1,631,959
|
|
|
|
|
1,452,833
|
|
|
Revenue Generating Horsepower at period end
|
|
|
|
|
1,415,355
|
|
|
|
|
1,411,005
|
|
|
|
|
1,259,387
|
|
|
Average Revenue Generating Horsepower
|
|
|
|
|
1,423,749
|
|
|
|
|
1,405,039
|
|
|
|
|
1,224,938
|
|
|
Revenue Generating Compression Units at period end
|
|
|
|
|
2,765
|
|
|
|
|
2,733
|
|
|
|
|
2,488
|
|
|
Horsepower Utilization at period end(1)
|
|
|
|
|
90.4
|
%
|
|
|
|
91.5
|
%
|
|
|
|
93.5
|
%
|
|
Average Horsepower Utilization for the period(1)
|
|
|
|
|
90.2
|
%
|
|
|
|
90.5
|
%
|
|
|
|
94.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data ($ in thousands, except per
horsepower data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
70,540
|
|
|
|
$
|
66,390
|
|
|
|
$
|
57,045
|
|
|
Average Revenue Per Horsepower Per Month(2)
|
|
|
|
$
|
15.94
|
|
|
|
$
|
15.83
|
|
|
|
$
|
15.67
|
|
|
Gross Operating Margin
|
|
|
|
$
|
48,621
|
|
|
|
$
|
47,311
|
|
|
|
$
|
37,615
|
|
|
Gross Operating Margin Percentage
|
|
|
|
|
68.9
|
%
|
|
|
|
71.3
|
%
|
|
|
|
65.9
|
%
|
|
Adjusted EBITDA
|
|
|
|
$
|
39,481
|
|
|
|
$
|
38,618
|
|
|
|
$
|
29,327
|
|
|
Adjusted EBITDA Percentage
|
|
|
|
|
56.0
|
%
|
|
|
|
58.2
|
%
|
|
|
|
51.4
|
%
|
|
Adjusted Distributable Cash Flow
|
|
|
|
$
|
32,269
|
|
|
|
$
|
31,001
|
|
|
|
$
|
22,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 83.9%, 86.5% and
86.7% for the quarters ended September 30, 2015, June 30, 2015 and
September 30, 2014, respectively. Average horsepower utilization was
85.3%, 84.9% and 87.5% for the quarters ended September 30, 2015, June
30, 2015 and September 30, 2014, respectively.
(2) Calculated using average revenue generating horsepower.
Third Quarter 2015 Financial and Operating
Performance
Revenues in the third quarter of 2015 rose 23.7% to $70.5 million as
compared to $57.0 million for the third quarter of 2014. Adjusted EBITDA
rose 34.6% to $39.5 million in the third quarter of 2015 as compared to
$29.3 million for the third quarter of 2014. Adjusted distributable cash
flow increased 40.6% to $32.3 million in the third quarter of 2015,
compared to $23.0 million in the third quarter of 2014. Net income was
$9.8 million in the third quarter of 2015, compared with net income of
$5.0 million for the third quarter of 2014.
“We are reporting a strong quarter of record revenues, Adjusted EBITDA
and Adjusted distributable cash flow for the third quarter of 2015,”
said Eric D. Long, USA Compression’s President and Chief Executive
Officer. “Despite the challenges and uncertainty across the entire
energy sector, our employees have performed exceptionally well,
delivering excellent customer service and controlling costs, both of
which have contributed to strong fleet utilization and strong operating
margins.
“We have ordered approximately 220,000 horsepower of new compression
units for delivery in 2015, of which we’ve taken delivery of
approximately 195,000 horsepower through the first three quarters of the
year,” he said. “As we’ve previously discussed, we front loaded our
capital spending this year, and as such, have completed over 90% of our
spending for the year. Looking ahead, we have already ordered over
30,000 horsepower for delivery in 2016 and will continue to monitor the
marketplace as we finish 2015 and move into next year.”
Average revenue generating horsepower increased 16.2% to 1,423,749 for
the third quarter of 2015 as compared to 1,224,938 for the third quarter
of 2014, primarily due to organic growth across our compression fleet.
Average revenue per revenue generating horsepower per month increased
1.7% to $15.94 for the third quarter of 2015 as compared to $15.67 for
the third quarter of 2014.
Gross operating margin increased 29.3% to $48.6 million for the third
quarter of 2015 as compared to $37.6 million for the third quarter of
2014. Gross operating margin as a percentage of total revenues increased
to 68.9% for the third quarter of 2015 from 65.9% in the third quarter
of 2014.
Expansion capital expenditures (used primarily to purchase new
compression units) were $55.3 million, maintenance capital expenditures
were $3.0 million and cash interest expense, net was $4.2 million for
the third quarter of 2015.
On October 22, 2015, the Partnership announced a cash distribution of
$0.525 per unit on its common and subordinated units. This third quarter
distribution corresponds to an annualized distribution rate of $2.10 per
unit. The distribution will be paid on November 13, 2015 to unitholders
of record as of the close of business on November 3, 2015.
USA Compression Holdings, LLC, the owner of 40% of the Partnership’s
outstanding limited partnership units, and Argonaut Private Equity,
L.L.C. and certain other related unitholders, the owners of 16% 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 (the “DRIP”). The Adjusted
distributable cash flow coverage ratio for the third quarter of 2015 was
1.25x and the Cash coverage ratio was 3.12x.
Liquidity and Credit Facility
As of September 30, 2015, the outstanding balance under the
Partnership’s revolving credit facility was approximately $712 million.
On September 15, 2015, the Partnership closed a public offering of
4,000,000 common units at a price to the public of $19.33. The
Partnership used the net proceeds of $74.4 million (net of underwriting
discounts and commission and offering expenses) to reduce the
indebtedness outstanding under its revolving credit facility.
Full-Year 2015 Outlook
USA Compression is revising upward the following full-year 2015 guidance:
-
Adjusted EBITDA range of $147 million to $152 million; and
-
Adjusted distributable cash flow range of $113 million to $118 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 third
quarter 2015 performance. The call will be broadcast live over the
Internet. Investors may participate either by phone or audio webcast.
|
|
|
|
|
|
|
By Phone:
|
|
|
|
Dial 888-397-5352 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
719-325-2177. The conference ID for both is 376182.
|
|
|
|
|
|
|
|
|
|
|
|
A replay of the call will be available through November 16, 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 376182.
|
|
|
|
|
|
|
|
By Webcast:
|
|
|
|
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 through November 16, 2015.
|
|
|
|
|
|
|
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 www.usacpartners.com.
This news release includes the non-U.S. generally accepted accounting
principles (“GAAP”) financial measures of Adjusted EBITDA, gross
operating margin, distributable cash flow, Adjusted distributable cash
flow, adjusted 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 and prior year and to budget. The Partnership
defines EBITDA as net income (loss) before net interest expense,
depreciation and amortization expense, and income taxes and Adjusted
EBITDA as EBITDA plus impairment of compression equipment, interest
income, unit-based compensation expense, (gain) loss 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 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 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
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
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 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
(loss) plus non-cash interest expense, non-cash income tax 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 expenses and (gain) loss 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 DRIP) to the cash distributions the
Partnership expects to pay its unitholders.
Adjusted distributable cash flow coverage ratio, a non-GAAP measure, is
defined as Adjusted distributable cash flow less cash distributions to
the Partnership’s general partner and incentive distribution rights
(“IDRs”), divided by distributions declared to limited partner
unitholders for the period. Cash coverage ratio is defined as Adjusted
distributable cash flow less cash distributions to the Partnership’s
general partner and IDRs divided by cash distributions paid to limited
partner unitholders, after consideration of the DRIP. The Partnership’s
management believes adjusted 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 adjusted distributable 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 Adjusted distributable cash flow projected to be generated by
the Partnership in its 2015 fiscal year. A reconciliation of the
forward-looking estimates of Adjusted EBITDA and Adjusted 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, 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 (loss) and net cash provided by operating
activities, and net income (loss) reconciled to distributable cash flow,
Adjusted distributable cash flow, Adjusted 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 2015 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, 2014, which was filed on February
19, 2015, and Part II, Item 1A (“Risk Factors”) of the Partnership’s
quarterly report on Form 10-Q for the quarterly period ended June 30,
2015, which was filed on August 5, 2015, 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 the acquired assets with our existing fleet;
-
actions taken by the Partnership’s customers, competitors and
third-party operators;
-
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 AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except for unit amounts — Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract operations
|
|
|
|
$
|
68,227
|
|
|
|
$
|
65,552
|
|
|
|
$
|
55,293
|
|
|
Parts and service
|
|
|
|
|
2,313
|
|
|
|
|
838
|
|
|
|
|
1,752
|
|
|
Total revenues
|
|
|
|
|
70,540
|
|
|
|
|
66,390
|
|
|
|
|
57,045
|
|
|
Cost of operations, exclusive of depreciation and amortization
|
|
|
|
|
21,919
|
|
|
|
|
19,079
|
|
|
|
|
19,430
|
|
|
Gross operating margin
|
|
|
|
|
48,621
|
|
|
|
|
47,311
|
|
|
|
|
37,615
|
|
|
Other operating and administrative costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
10,351
|
|
|
|
|
10,350
|
|
|
|
|
10,443
|
|
|
Depreciation and amortization
|
|
|
|
|
21,360
|
|
|
|
|
21,507
|
|
|
|
|
18,261
|
|
|
Loss (gain) on sale of assets
|
|
|
|
|
920
|
|
|
|
|
(23
|
)
|
|
|
|
63
|
|
|
Impairment of compression equipment
|
|
|
|
|
443
|
|
|
|
|
26,829
|
|
|
|
|
1,163
|
|
|
Total other operating and administrative costs and expenses
|
|
|
|
|
33,074
|
|
|
|
|
58,663
|
|
|
|
|
29,930
|
|
|
Operating income (expense)
|
|
|
|
|
15,547
|
|
|
|
|
(11,352
|
)
|
|
|
|
7,685
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
(4,665
|
)
|
|
|
|
(4,415
|
)
|
|
|
|
(2,677
|
)
|
|
Other
|
|
|
|
|
6
|
|
|
|
|
5
|
|
|
|
|
5
|
|
|
Total other expense
|
|
|
|
|
(4,659
|
)
|
|
|
|
(4,410
|
)
|
|
|
|
(2,672
|
)
|
|
Net income (loss) before income tax expense
|
|
|
|
|
10,888
|
|
|
|
|
(15,762
|
)
|
|
|
|
5,013
|
|
|
Income tax expense
|
|
|
|
|
1,083
|
|
|
|
|
142
|
|
|
|
|
-
|
|
|
Net Income (Loss)
|
|
|
|
$
|
9,805
|
|
|
|
$
|
(15,904
|
)
|
|
|
$
|
5,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner's interest in net income (loss)
|
|
|
|
$
|
411
|
|
|
|
$
|
(7
|
)
|
|
|
$
|
194
|
|
|
Common units interest in net income (loss)
|
|
|
|
$
|
7,185
|
|
|
|
$
|
(11,043
|
)
|
|
|
$
|
3,338
|
|
|
Subordinated units interest in net income (loss)
|
|
|
|
$
|
2,209
|
|
|
|
$
|
(4,854
|
)
|
|
|
$
|
1,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
34,123,395
|
|
|
|
|
32,449,180
|
|
|
|
|
30,460,239
|
|
|
Diluted
|
|
|
|
|
34,233,579
|
|
|
|
|
32,449,180
|
|
|
|
|
30,517,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average subordinated units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
|
14,048,588
|
|
|
|
|
14,048,588
|
|
|
|
|
14,048,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.21
|
|
|
|
$
|
(0.34
|
)
|
|
|
$
|
0.11
|
|
|
Diluted
|
|
|
|
$
|
0.21
|
|
|
|
$
|
(0.34
|
)
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per subordinated unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
$
|
0.16
|
|
|
|
$
|
(0.35
|
)
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per limited partner unit in respective periods
|
|
|
|
$
|
0.525
|
|
|
|
$
|
0.525
|
|
|
|
$
|
0.505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
Net income (loss)
|
|
|
|
$
|
9,805
|
|
|
|
$
|
(15,904
|
)
|
|
|
$
|
5,013
|
|
|
Interest expense, net
|
|
|
|
|
4,665
|
|
|
|
|
4,415
|
|
|
|
|
2,677
|
|
|
Depreciation and amortization
|
|
|
|
|
21,360
|
|
|
|
|
21,507
|
|
|
|
|
18,261
|
|
|
Income taxes
|
|
|
|
|
1,083
|
|
|
|
|
142
|
|
|
|
|
-
|
|
|
EBITDA
|
|
|
|
$
|
36,913
|
|
|
|
$
|
10,160
|
|
|
|
$
|
25,951
|
|
|
Impairment of compression equipment
|
|
|
|
|
443
|
|
|
|
|
26,829
|
|
|
|
|
1,163
|
|
|
Interest income on capital lease
|
|
|
|
|
401
|
|
|
|
|
414
|
|
|
|
|
433
|
|
|
Unit-based compensation expense(1)
|
|
|
|
|
804
|
|
|
|
|
1,238
|
|
|
|
|
855
|
|
|
Transaction expenses for acquisitions(2)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
862
|
|
|
Loss (gain) on sale of assets and other
|
|
|
|
|
920
|
|
|
|
|
(23
|
)
|
|
|
|
63
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
39,481
|
|
|
|
$
|
38,618
|
|
|
|
$
|
29,327
|
|
|
Interest expense, net
|
|
|
|
|
(4,665
|
)
|
|
|
|
(4,415
|
)
|
|
|
|
(2,677
|
)
|
|
Income tax expense
|
|
|
|
|
(1,083
|
)
|
|
|
|
(142
|
)
|
|
|
|
-
|
|
|
Interest income on capital lease
|
|
|
|
|
(401
|
)
|
|
|
|
(414
|
)
|
|
|
|
(433
|
)
|
|
Transaction expenses for acquisitions
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(862
|
)
|
|
Amortization of deferred financing costs and other
|
|
|
|
|
416
|
|
|
|
|
415
|
|
|
|
|
43
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
445
|
|
|
|
|
(25
|
)
|
|
|
|
13,534
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
34,193
|
|
|
|
$
|
34,037
|
|
|
|
$
|
38,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the quarters ended September 30, 2015, June 30, 2015 and
September 30, 2014, unit-based compensation expense included $0.2
million for each period 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 2015 and 2014 is related to non-cash adjustments to the
unit-based compensation liability.
(2) 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 (LOSS) TO DISTRIBUTABLE CASH FLOW
|
|
(In thousands, except for per unit amounts — Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles distributable cash flow and
Adjusted distributable cash flow to net income (loss) and net cash
provided by operating activities, their most directly comparable
GAAP financial measures, for each of the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
Net income (loss)
|
|
|
|
$
|
9,805
|
|
|
|
$
|
(15,904
|
)
|
|
|
$
|
5,013
|
|
|
Plus: Non-cash interest expense
|
|
|
|
|
416
|
|
|
|
|
415
|
|
|
|
|
43
|
|
|
Plus: Non-cash income tax expense
|
|
|
|
|
1,076
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Plus: Depreciation and amortization
|
|
|
|
|
21,360
|
|
|
|
|
21,507
|
|
|
|
|
18,261
|
|
|
Plus: Unit-based compensation expense(1)
|
|
|
|
|
804
|
|
|
|
|
1,238
|
|
|
|
|
855
|
|
|
Plus: Impairment of compression equipment
|
|
|
|
|
443
|
|
|
|
|
26,829
|
|
|
|
|
1,163
|
|
|
Less: Maintenance capital expenditures(2)
|
|
|
|
|
(2,959
|
)
|
|
|
|
(3,061
|
)
|
|
|
|
(3,305
|
)
|
|
Distributable cash flow
|
|
|
|
$
|
30,945
|
|
|
|
$
|
31,024
|
|
|
|
$
|
22,030
|
|
|
Transaction expenses for acquisitions(3)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
862
|
|
|
Loss (gain) on sale of equipment and other
|
|
|
|
|
1,324
|
|
|
|
|
(23
|
)
|
|
|
|
63
|
|
|
Adjusted distributable cash flow
|
|
|
|
$
|
32,269
|
|
|
|
$
|
31,001
|
|
|
|
$
|
22,955
|
|
|
Plus: Maintenance capital expenditures
|
|
|
|
|
2,959
|
|
|
|
|
3,061
|
|
|
|
|
3,305
|
|
|
Plus: Changes in operating assets and liabilities
|
|
|
|
|
445
|
|
|
|
|
(25
|
)
|
|
|
|
13,534
|
|
|
Less: Transaction expenses for acquisitions
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(862
|
)
|
|
Less: Other
|
|
|
|
|
(1,480
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
34,193
|
|
|
|
$
|
34,037
|
|
|
|
$
|
38,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted distributable cash flow
|
|
|
|
|
32,269
|
|
|
|
|
31,001
|
|
|
|
|
22,955
|
|
|
Cash distributions to GP and IDRs
|
|
|
|
|
697
|
|
|
|
|
671
|
|
|
|
|
506
|
|
|
Adjusted distributable cash flow attributable to LP interest
|
|
|
|
$
|
31,572
|
|
|
|
$
|
30,330
|
|
|
|
$
|
22,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Coverage Ratio (4)
|
|
|
|
$
|
25,290
|
|
|
|
$
|
24,579
|
|
|
|
$
|
22,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions reinvested in the DRIP(5)
|
|
|
|
$
|
15,179
|
|
|
|
$
|
14,731
|
|
|
|
$
|
13,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Cash Coverage Ratio(6)
|
|
|
|
$
|
10,111
|
|
|
|
$
|
9,848
|
|
|
|
$
|
9,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Distributable Cash Flow Coverage Ratio(7)
|
|
|
|
|
1.25
|
|
|
|
|
1.23
|
|
|
|
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Coverage Ratio(8)
|
|
|
|
|
3.12
|
|
|
|
|
3.08
|
|
|
|
|
2.37
|
|
(1) For the quarters ended September 30, 2015, June 30, 2015 and
September 30, 2014, unit-based compensation expense included $0.2
million for each period 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
each period presented in 2015 and 2014 is related to non-cash
adjustments to the unit-based compensation liability.
(2) 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.
(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.
(4) Represents distribution to the weighted average holders of the
Partnership’s units for the quarter ended September 30, 2015. Represents
distribution to units outstanding at the record date for the quarters
ended June 30, 2015 and September 30, 2014.
(5) Represents distributions to holders enrolled in the DRIP as of the
record date for each period. Amount for the three months ended
September 30, 2015 is based on an estimate as of the record date.
(6) Represents cash distributions declared for weighted average common
units not participating in the DRIP for the quarter ended September 30,
2015. Represents cash distributions declared for common units not
participating in the DRIP at the record date for the quarters ended June
30, 2015 and September 30, 2014.
(7) For the three months ended September 30, 2015, the Adjusted
Distributable Cash Flow Coverage Ratio based on units outstanding at the
record date is 1.16x. The Adjusted Distributable Cash Flow Coverage
Ratio for the quarters ended June 30, 2015 and September 30, 2014 are
based on units outstanding at the record date for each respective period.
(8) For the three months ended September 30, 2015, the Cash Coverage
Ratio based on units outstanding at the record date is 2.65x. The Cash
Coverage Ratio for the quarters ended June 30, 2015 and September 30,
2014 are based on units outstanding at the record date for each
respective period.
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
|
|
FULL-YEAR 2015 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW
GUIDANCE RANGE
|
|
RECONCILIATION TO NET INCOME
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance
|
|
Net income
|
|
|
|
$7.4 million to $12.4 million
|
|
Plus: Interest expense
|
|
|
|
$19.5 million
|
|
Plus: Depreciation and amortization
|
|
|
|
$86.5 million
|
|
Plus: Income tax expense
|
|
|
|
$1.4 million
|
|
EBITDA
|
|
|
|
$114.8 million to $119.8 million
|
|
Plus: Interest income on capital lease
|
|
|
|
$1.6 million
|
|
Plus: Unit-based compensation expense(1)
|
|
|
|
$3.8 million
|
|
Plus: Impairment of compression equipment
|
|
|
|
$26.8 million
|
|
Adjusted EBITDA
|
|
|
|
$147.0 million to $152.0 million
|
|
Less: Cash interest expense
|
|
|
|
$17.3 million
|
|
Less: Current income tax expense
|
|
|
|
$0.3 million
|
|
Less: Maintenance capital expenditures
|
|
|
|
$17.0 million
|
|
Plus: Loss (gain) on sale of assets
|
|
|
|
$0.6 million
|
|
Adjusted distributable cash flow
|
|
|
|
$113.0 million to $118.0 million
|
|
|
|
|
|
|
(1) Based on the Partnership’s unit closing price as of September 30,
2015.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151105005538/en/
Source: USA Compression Partners, LP
USA Compression Partners, LP
Matthew C. Liuzzi,
512-369-1624
Chief Financial Officer
mliuzzi@usacompression.com
or
Michael
D. Lenox, 512-369-1632
VP of Finance
mlenox@usacompression.com
