AUSTIN, Texas--(BUSINESS WIRE)--Feb. 18, 2014--
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 2013.
Fourth Quarter and Full-Year 2013 Summary
Results
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Record levels of revenue; fourth quarter 2013 up 53.1% over fourth
quarter 2012 and full-year 2013 up 28.7% over full-year 2012
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Record levels of Adjusted EBITDA; fourth quarter 2013 up 51.2% over
fourth quarter 2012 and full-year 2013 up 27.8% over full-year 2012
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Record levels of adjusted distributable cash flow; fourth quarter 2013
up 106.3% over fourth quarter 2012 and full-year 2013 up 60.9% over
full-year 2012
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Quarterly cash distribution of $0.48 per common unit, an increase of
4.3% over the third quarter 2013 and 12.9% over the minimum quarterly
distribution
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Fleet horsepower increased by 30.8% over fourth quarter 2012
-
Average revenue per horsepower per month increased 14.7% over fourth
quarter 2012, due to higher revenue per horsepower per month from gas
lift compression units
-
Adjusted distribution coverage of 1.03x for the fourth quarter
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Three Months Ended
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Year Ended
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December 31,
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September 30,
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December 31,
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December 31,
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2013
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2013
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2012
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2013
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2012
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Operational Data
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Fleet Horsepower at period end
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1,202,374
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1,162,353
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919,121
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1,202,374
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919,121
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Revenue Generating Horsepower at period end
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1,070,457
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1,035,664
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794,324
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1,070,457
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794,324
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Average Revenue Generating Horsepower
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1,058,213
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919,202
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792,368
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902,168
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749,821
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Revenue Generating Compression Units at period end
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2,137
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2,053
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978
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2,137
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978
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Horsepower Utilization at period end (1)
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94.1
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%
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94.5
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%
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92.8
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%
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94.1
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%
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92.8
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%
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Average Horsepower Utilization for the period (1)
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94.2
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%
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94.3
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%
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92.9
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%
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93.8
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%
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94.5
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%
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Financial Data ($ in thousands, except
per-unit data)
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Revenue
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$
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48,643
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$
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38,362
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$
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31,771
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$
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152,918
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$
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118,787
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Average Revenue Per Horsepower Per Month
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$
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15.36
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$
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14.13
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$
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13.39
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$
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14.15
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$
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13.39
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Gross Operating Margin
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$
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33,019
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$
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26,440
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$
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21,903
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$
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104,821
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$
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80,991
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Gross Operating Margin Percentage
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67.9
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%
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68.9
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%
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68.9
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%
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68.5
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%
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68.2
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%
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Adjusted EBITDA
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$
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25,413
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$
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20,151
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$
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16,808
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$
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81,130
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$
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63,484
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Adjusted EBITDA Percentage
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52.2
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%
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52.5
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%
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52.9
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%
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53.1
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%
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53.4
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%
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Adjusted Distributable Cash Flow
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$
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18,943
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$
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13,658
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$
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9,183
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$
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56,210
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$
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34,928
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Earnings per Common and Subordinated Unit
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$
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0.12
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$
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0.05
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$
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-
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$
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0.32
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$
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-
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(1)
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Horsepower utilization is calculated as (i)(a) revenue generating
horsepower plus (b) horsepower in the Partnership's fleet that is
under contract, but is not yet generating revenue plus (c)
horsepower not yet in the Partnership's fleet that is under contract
not yet generating revenue and that is subject to a purchase order,
divided by (ii) total available horsepower less idle horsepower that
is under repair. Horsepower utilization based on revenue generating
horsepower and fleet horsepower at each applicable period end was
89.0% and 86.4% for the quarters and years ended December 31, 2013
and 2012, respectively. Average horsepower utilization was 87.3% and
88.9% for the years ended December 31, 2013 and 2012, respectively,
and 89.0% and 87.1% for the quarters ended December 31, 2013 and
2012, respectively.
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Fourth Quarter 2013 Financial and Operating
Performance
Revenue in the fourth quarter of 2013 rose 53.1% to $48.6 million as
compared to $31.8 million for the same period in 2012. This was
primarily the result of a 52.5% increase in contract operations revenue
(excluding retail parts and services) to $47.4 million, compared to
$31.1 million in the fourth quarter of 2012. Adjusted EBITDA rose 51.2%
to $25.4 million as compared to $16.8 million for the fourth quarter of
2012. Adjusted distributable cash flow increased 106.3% to $18.9
million, compared to $9.2 million in the fourth quarter of last year.
Net income was $4.4 million, or $0.12 per common and subordinated unit,
compared with net income of $0.9 million for the fourth quarter of 2012.
“We are very pleased to report another quarter of record revenue,
Adjusted EBITDA and Adjusted distributable cash flow for the fourth
quarter of 2013,” said Eric D. Long, USA Compression President and Chief
Executive Officer. “We’re continuing to see solid demand for our
compression services, and we continue to see solid gross operating
margins and improve our overall financial performance. The gas lift
compression assets that we acquired in August of 2013 have been fully
integrated into our business and continue to perform well ahead of our
expectations at the time of announcement.
“We have ordered approximately 180,000 horsepower of new compression
units, primarily for delivery in the first half of 2014, and are
evaluating additional orders of new compression units for the second
half of 2014,” he said. “We already have customer contracts for over 36%
of the new compression units that are on order for 2014.”
Average revenue generating horsepower increased 33.6% to 1,058,213 for
the fourth quarter of 2013, primarily due to growth in our core
midstream compression assets along with the acquisition of gas lift
compression assets, as compared to 792,368 for the fourth quarter of
2012. Average revenue per revenue generating horsepower per month
increased 14.7% to $15.36 for the fourth quarter of 2013, as compared to
$13.39 for the fourth quarter of 2012. The increase in average revenue
per revenue generating horsepower per month was primarily due to higher
revenue per horsepower per month from the acquired gas lift compression
units.
Gross operating margin increased 50.8% to $33.0 million for the fourth
quarter of 2013 as compared to $21.9 million for the fourth quarter of
2012. Gross operating margin as a percentage of total revenues decreased
slightly to 67.9% for the fourth quarter of 2013 from 68.9% in the
fourth quarter of 2012, primarily due to the gas lift compression assets
USAC acquired that have lower gross operating margin percentages.
Expansion capital expenditures (used primarily to purchase new
compression units) were $59.3 million for the fourth quarter of 2013,
while maintenance capital expenditures totaled $3.6 million and cash
interest expense was $2.7 million.
On January 23, 2014, the Partnership announced a cash distribution of
$0.48 per unit on its common and subordinated units. This fourth quarter
distribution corresponds to an annualized distribution rate of $1.92 per
unit. The distribution was paid on February 14, 2014 to unitholders of
record as of the close of business on February 4, 2014. USA Compression
Holdings, LLC, the owner of 50.9% of the Partnership’s outstanding
limited partnership units, and Argonaut Private Equity and certain other
related unitholders, the owners of 19.4% of the Partnership’s
outstanding limited partnership units, have elected to reinvest all of
this distribution with respect to their units pursuant to the
Partnership’s Distribution Reinvestment Plan. Adjusted distributable
cash flow coverage for the fourth quarter of 2013 was 1.03x.
Liquidity and Credit Facility
On December 13, 2013, the Partnership entered into its Fifth Amended and
Restated Credit Agreement. The amendment provides for an increase in the
facility capacity from $600 million to $850 million and an extension of
the maturity to 2018. In addition, the revolving credit facility
contains an accordion feature whereby it can be expanded to $950 million
under certain conditions. The amendment to the Partnership’s revolving
credit facility reduces the applicable interest rate margins on
borrowings and provides additional flexibility under the financial
covenants. As of December 31, 2013, the outstanding balance under the
revolving credit facility was approximately $421 million, compared to
approximately $390 million as of September 30, 2013.
In addition, on January 6, 2014, the registration statement on Form S-1
(as amended to incorporate by reference the Partnership’s Form 10-Q for
the nine months ended September 30, 2013) relating to the Partnership’s
Distribution Reinvestment Plan was declared effective by the Securities
and Exchange Commission.
Full-Year 2014 Outlook
USA Compression is providing the following full-year 2014 guidance:
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adjusted EBITDA range of $109.0 million to $115.0 million; and
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distributable cash flow range of $75.0 million to $81.0 million
Conference Call
USA Compression Partners, LP will host a conference call today beginning
at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss its
fourth quarter and full-year 2013 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 877-941-8609 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
480-629-9692. The passcode for both is 4664145#.
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A replay of the call will be available through February 25, 2014.
Callers inside the U.S. and Canada may access the replay by dialing
800-406-7325. Investors outside the U.S. and Canada should dial
303-590-3030. The passcode for both is 4664145#.
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By Webcast:
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Connect to the webcast via the “Events” page of USA Compression’s
Investor Relations website at http://investors.usacpartners.com.
Please log in at least 10 minutes in advance to register and
download any necessary software. A replay will be available
shortly after the call.
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About USA Compression Partners, LP
USA Compression Partners, LP is a growth-oriented Delaware limited
partnership that is one of the nation’s largest independent providers of
compression services in terms of total compression unit horsepower. The
company partners with a broad customer base composed of producers,
processors, gatherers and transporters of natural gas and crude oil. USA
Compression focuses on providing compression services to infrastructure
applications primarily in high volume gathering systems, processing
facilities and transportation applications. More information is
available at www.usacpartners.com.
This news release includes the non-GAAP financial measures of Adjusted
EBITDA, gross operating margin, distributable cash flow and Adjusted
distributable cash flow.
The Partnership’s management views Adjusted EBITDA as one of its primary
financial measures that management uses in evaluating the results of the
Partnership’s business, and the Partnership tracks this item on a
monthly basis both as an absolute amount and as a percentage of revenue
compared to the prior month, year-to-date and prior year and to budget.
Adjusted EBITDA is defined as net income before interest expense, income
taxes, depreciation expense, impairment of compression equipment,
unit-based compensation expense, restructuring charges, management fees
and transaction fees related to the S&R Acquisition. 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 to make 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 believes that Adjusted EBITDA provides useful
information to investors because, when viewed with GAAP results and the
accompanying reconciliations, it provides a more complete understanding
of the Partnership’s performance than GAAP results alone. The
Partnership also believes that external users of its financial
statements benefit from having access to the same financial measures
that management uses in evaluating the results of the Partnership’s
business.
Adjusted EBITDA should not be considered an alternative to, or more
meaningful than, net income, operating income, cash flows from operating
activities or any other measure of financial performance presented in
accordance with GAAP as measures of operating performance and liquidity.
Moreover, Adjusted EBITDA as presented may not be comparable to
similarly titled measures of other companies.
Gross operating margin, a non-GAAP financial measure, is defined as
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 operating profitability. Gross operating margin is
impacted primarily by the pricing trends for service operations and cost
of operations, including labor rates for service technicians, volume and
per unit costs for lubricant oils, quantity and pricing of routine
preventative maintenance to 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, depreciation and amortization
expense, impairment of compression equipment charges and unit-based
compensation expense, less maintenance capital expenditures. Adjusted
distributable cash flow is distributable cash flow plus certain one-time
transaction fees relating to the S&R Acquisition and other items. The
Partnership’s management believes distributable cash flow and adjusted
distributable cash flow are important measures of operating performance
because such measures allow management, investors and others to compare
basic cash flows the Partnership generates (prior to the establishment
of any retained cash reserves by the Partnership’s general partner and
the effect of the Partnership’s Distribution Reinvestment Plan) to the
cash distributions the Partnership expects to pay its unitholders. See
“Reconciliation of Non-GAAP Financial Measures” for Adjusted EBITDA
reconciled to net income and net cash provided by operating activities,
and net income reconciled to distributable cash flow and Adjusted
distributable cash flow.
Forward-Looking Statements
Some of the information in this news release may contain forward-looking
statements. These statements can be identified by the use of
forward-looking terminology including “may,” “believe,” “expect,”
“intend,” “anticipate,” “estimate,” “continue,” or other similar words,
and include the Partnership’s expectation of future performance
contained herein. These statements discuss future expectations, contain
projections of results of operations or of financial condition, or state
other “forward-looking” information. These forward-looking statements
can be affected by assumptions used or by known risks or uncertainties.
Consequently, no forward-looking statements can be guaranteed. When
considering these forward-looking statements, you should keep in mind
the risk factors and other cautionary statements in this news release.
The risk factors and other factors noted throughout this news release
could cause actual results to differ materially from those contained in
any forward-looking statement. You are cautioned not to place undue
reliance on any forward-looking statements, which speak only as of the
date of this news release. You should also understand that it is not
possible to predict or identify all such factors and should not consider
the following list to be a complete statement of all potential risks and
uncertainties. Factors that could cause the Partnership’s actual results
to differ materially from the results contemplated by such
forward-looking statements include:
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changes in general economic conditions;
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competitive conditions in the industry;
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changes in the long-term supply of and demand for natural gas and
crude oil;
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our ability to realize the anticipated benefits of acquisitions and to
integrate the acquired assets with our existing fleet;
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actions taken by the Partnership’s customers, competitors and third
party operators;
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changes in the availability and cost of capital;
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operating hazards, natural disasters, weather-related delays, casualty
losses and other matters beyond the Partnership’s control;
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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 are expressly qualified in their entirety
by the foregoing cautionary statements. Unless legally required, the
Partnership undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. Unpredictable or unknown factors not
discussed herein also could have material adverse effects on
forward-looking statements.
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USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands – Unaudited)
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Three Months Ended
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Years Ended
|
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|
|
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December 31,
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September 30,
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December 31,
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December 31,
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December 31,
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2013
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2013
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2012
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2013
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|
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2012
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Revenues:
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|
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|
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Contract operations
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$
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47,395
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$
|
37,925
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$
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31,088
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$
|
150,360
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$
|
116,373
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Parts and service
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1,248
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|
437
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683
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|
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2,558
|
|
|
|
|
2,414
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Total revenues
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|
|
|
48,643
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|
|
|
|
38,362
|
|
|
|
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31,771
|
|
|
|
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152,918
|
|
|
|
|
118,787
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Cost of operations, exclusive of depreciation and amortization
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|
|
15,624
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|
|
|
|
11,922
|
|
|
|
|
9,868
|
|
|
|
|
48,097
|
|
|
|
|
37,796
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|
|
Gross operating margin
|
|
|
|
33,019
|
|
|
|
|
26,440
|
|
|
|
|
21,903
|
|
|
|
|
104,821
|
|
|
|
|
80,991
|
|
|
Other operating and administrative costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
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|
|
|
8,830
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|
|
|
|
8,313
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|
|
|
|
5,341
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|
|
|
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27,587
|
|
|
|
|
18,269
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|
|
Depreciation and amortization
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|
|
|
15,690
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|
|
|
|
13,377
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|
|
|
|
11,290
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|
|
|
|
52,917
|
|
|
|
|
41,880
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|
|
Loss (Gain) on sale of assets
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|
|
|
231
|
|
|
|
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(52
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)
|
|
|
|
8
|
|
|
|
|
284
|
|
|
|
|
266
|
|
|
Impairment of compression equipment
|
|
|
|
203
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
203
|
|
|
|
|
-
|
|
|
Total other operating and administrative costs and expenses
|
|
|
|
24,954
|
|
|
|
|
21,638
|
|
|
|
|
16,639
|
|
|
|
|
80,991
|
|
|
|
|
60,415
|
|
|
Operating income
|
|
|
|
8,065
|
|
|
|
|
4,802
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|
|
|
|
5,264
|
|
|
|
|
23,830
|
|
|
|
|
20,576
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|
|
Other Income (Expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(3,525
|
)
|
|
|
|
(3,029
|
)
|
|
|
|
(4,268
|
)
|
|
|
|
(12,488
|
)
|
|
|
|
(15,905
|
)
|
|
Other
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
4
|
|
|
|
|
9
|
|
|
|
|
28
|
|
|
Total other expense
|
|
|
|
(3,524
|
)
|
|
|
|
(3,027
|
)
|
|
|
|
(4,264
|
)
|
|
|
|
(12,479
|
)
|
|
|
|
(15,877
|
)
|
|
Net income before income tax expense
|
|
|
|
4,541
|
|
|
|
|
1,775
|
|
|
|
|
1,000
|
|
|
|
|
11,351
|
|
|
|
|
4,699
|
|
|
Income tax expense
|
|
|
|
104
|
|
|
|
|
63
|
|
|
|
|
52
|
|
|
|
|
280
|
|
|
|
|
196
|
|
|
Net Income
|
|
|
$
|
4,437
|
|
|
|
$
|
1,712
|
|
|
|
$
|
948
|
|
|
|
$
|
11,071
|
|
|
|
$
|
4,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings allocated to general partner prior to initial public
offering on January 18, 2013
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
9
|
|
|
|
$
|
5
|
|
|
|
$
|
45
|
|
|
Earnings available for limited partners prior to initial public
offering on January 18, 2013
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
939
|
|
|
|
$
|
530
|
|
|
|
$
|
4,458
|
|
|
Net income subsequent to initial public offering on January 18, 2013
|
|
|
$
|
4,437
|
|
|
|
$
|
1,712
|
|
|
|
$
|
-
|
|
|
|
$
|
10,536
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income subsequent to initial public offering allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner's interest in net income
|
|
|
$
|
89
|
|
|
|
$
|
34
|
|
|
|
$
|
-
|
|
|
|
$
|
211
|
|
|
|
$
|
-
|
|
|
Common units interest in net income
|
|
|
$
|
2,714
|
|
|
|
$
|
941
|
|
|
|
$
|
-
|
|
|
|
$
|
5,805
|
|
|
|
$
|
-
|
|
|
Subordinated units interest in net income
|
|
|
$
|
1,634
|
|
|
|
$
|
737
|
|
|
|
$
|
-
|
|
|
|
$
|
4,520
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
23,330,238
|
|
|
|
|
17,947,198
|
|
|
|
|
-
|
|
|
|
|
18,043,075
|
|
|
|
|
-
|
|
|
Diluted
|
|
|
|
23,409,476
|
|
|
|
|
17,988,650
|
|
|
|
|
-
|
|
|
|
|
18,086,745
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average subordinated units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
14,048,588
|
|
|
|
|
14,048,588
|
|
|
|
|
-
|
|
|
|
|
14,048,588
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.12
|
|
|
|
$
|
0.05
|
|
|
|
$
|
-
|
|
|
|
$
|
0.32
|
|
|
|
$
|
-
|
|
|
Diluted
|
|
|
$
|
0.12
|
|
|
|
$
|
0.05
|
|
|
|
$
|
-
|
|
|
|
$
|
0.32
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per subordinated unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
0.12
|
|
|
|
$
|
0.05
|
|
|
|
$
|
-
|
|
|
|
$
|
0.32
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared and paid per limited partner unit in
respective periods
|
|
|
$
|
0.46
|
|
|
|
$
|
0.44
|
|
|
|
$
|
-
|
|
|
|
$
|
1.25
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
|
ADJUSTED EBITDA TO NET INCOME AND NET CASH PROVIDED BY OPERATING
ACTIVITIES
|
|
(In thousands – Unaudited)
|
|
|
|
The following table reconciles Adjusted EBITDA to net income and
net cash provided by operating activities, its most directly
comparable GAAP financial measures, for each of the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Net income
|
|
|
$
|
4,437
|
|
|
|
$
|
1,712
|
|
|
|
$
|
948
|
|
|
|
$
|
11,071
|
|
|
|
$
|
4,503
|
|
|
|
|
Interest expense
|
|
|
|
3,525
|
|
|
|
|
3,029
|
|
|
|
|
4,268
|
|
|
|
|
12,488
|
|
|
|
|
15,905
|
|
|
|
|
Depreciation and amortization
|
|
|
|
15,690
|
|
|
|
|
13,377
|
|
|
|
|
11,290
|
|
|
|
|
52,917
|
|
|
|
|
41,880
|
|
|
|
|
Income taxes
|
|
|
|
104
|
|
|
|
|
63
|
|
|
|
|
52
|
|
|
|
|
280
|
|
|
|
|
196
|
|
|
|
|
Impairment of compression equipment(1)
|
|
|
|
203
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
203
|
|
|
|
|
-
|
|
|
|
|
Unit-based compensation expense
|
|
|
|
438
|
|
|
|
|
337
|
|
|
|
|
-
|
|
|
|
|
1,343
|
|
|
|
|
-
|
|
|
|
|
Riverstone management fee(2)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
250
|
|
|
|
|
49
|
|
|
|
|
1,000
|
|
|
|
|
Transaction expenses for S&R Acquisition (3)
|
|
|
|
661
|
|
|
|
|
1,481
|
|
|
|
|
-
|
|
|
|
|
2,142
|
|
|
|
|
-
|
|
|
|
|
Other
|
|
|
|
355
|
|
|
|
|
152
|
|
|
|
|
-
|
|
|
|
|
637
|
|
|
|
|
-
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
25,413
|
|
|
|
$
|
20,151
|
|
|
|
$
|
16,808
|
|
|
|
$
|
81,130
|
|
|
|
$
|
63,484
|
|
|
|
|
Interest expense
|
|
|
|
(3,525
|
)
|
|
|
|
(3,029
|
)
|
|
|
|
(4,268
|
)
|
|
|
|
(12,488
|
)
|
|
|
|
(15,905
|
)
|
|
|
|
Income tax expense
|
|
|
|
(104
|
)
|
|
|
|
(63
|
)
|
|
|
|
(52
|
)
|
|
|
|
(280
|
)
|
|
|
|
(196
|
)
|
|
|
|
Unit-based compensation expense
|
|
|
|
(438
|
)
|
|
|
|
(337
|
)
|
|
|
|
-
|
|
|
|
|
(1,343
|
)
|
|
|
|
-
|
|
|
|
|
Riverstone management fee
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(250
|
)
|
|
|
|
(49
|
)
|
|
|
|
(1,000
|
)
|
|
|
|
Impairment of compression equipment
|
|
|
|
(203
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(203
|
)
|
|
|
|
-
|
|
|
|
|
Transaction expenses for S&R Acquisition
|
|
|
|
(661
|
)
|
|
|
|
(1,481
|
)
|
|
|
|
-
|
|
|
|
|
(2,142
|
)
|
|
|
|
-
|
|
|
|
|
Other
|
|
|
|
1,313
|
|
|
|
|
605
|
|
|
|
|
406
|
|
|
|
|
3,385
|
|
|
|
|
(58
|
)
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(6,206
|
)
|
|
|
|
(3,347
|
)
|
|
|
|
1,818
|
|
|
|
|
(11,675
|
)
|
|
|
|
169
|
|
|
|
|
Inventory
|
|
|
|
(2,592
|
)
|
|
|
|
(1,468
|
)
|
|
|
|
(54
|
)
|
|
|
|
(5,725
|
)
|
|
|
|
(1,004
|
)
|
|
|
|
Prepaids
|
|
|
|
(816
|
)
|
|
|
|
(154
|
)
|
|
|
|
(1,017
|
)
|
|
|
|
(601
|
)
|
|
|
|
(153
|
)
|
|
|
|
Other non-current assets
|
|
|
|
(14
|
)
|
|
|
|
-
|
|
|
|
|
(509
|
)
|
|
|
|
3,824
|
|
|
|
|
(1,315
|
)
|
|
|
|
Accounts payable
|
|
|
|
19,696
|
|
|
|
|
(4,489
|
)
|
|
|
|
805
|
|
|
|
|
8,134
|
|
|
|
|
(5,340
|
)
|
|
|
|
Accrued liabilities and deferred revenue
|
|
|
|
(5,351
|
)
|
|
|
|
9,781
|
|
|
|
|
(2,088
|
)
|
|
|
|
6,223
|
|
|
|
|
3,292
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
26,512
|
|
|
|
$
|
16,169
|
|
|
|
$
|
11,599
|
|
|
|
$
|
68,190
|
|
|
|
$
|
41,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents impairment of compression equipment during the fourth
quarter. As we expect that this impairment of compression equipment
is not recurring, the Partnership believes it is useful to investors
to view its results excluding this charge.
|
|
|
|
|
|
(2)
|
|
Represents management fees paid to Riverstone for services performed
during 2013 and 2012. As these fees are not paid by the Partnership
as a public company, the Partnership believes it is useful to
investors to view its results excluding these fees.
|
|
|
|
|
|
(3)
|
|
Represents S&R transaction expenses during the third and fourth
quarter. As these fees are not recurring, the Partnership believes
it is useful to investors to view its results excluding these fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
|
NET INCOME TO DISTRIBUTABLE CASH FLOW
|
|
(In thousands – Unaudited)
|
|
|
|
The following table reconciles distributable cash flow to net
income, 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,
|
|
|
|
|
|
|
2013
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Net income
|
|
|
$
|
4,437
|
|
|
$
|
1,712
|
|
|
$
|
948
|
|
|
$
|
11,071
|
|
|
$
|
4,503
|
|
|
|
Plus: Non-cash interest expense
|
|
|
|
805
|
|
|
|
472
|
|
|
|
477
|
|
|
|
2,201
|
|
|
|
1,855
|
|
|
|
Plus: Depreciation and amortization
|
|
|
|
15,690
|
|
|
|
13,377
|
|
|
|
11,290
|
|
|
|
52,917
|
|
|
|
41,880
|
|
|
|
Plus: Unit based compensation
|
|
|
|
438
|
|
|
|
337
|
|
|
|
-
|
|
|
|
1,343
|
|
|
|
-
|
|
|
|
Plus: Impairment of compression equipment
|
|
|
|
203
|
|
|
|
-
|
|
|
|
-
|
|
|
|
203
|
|
|
|
-
|
|
|
|
Less: Maintenance capital expenditures(1)
|
|
|
|
3,646
|
|
|
|
3,873
|
|
|
|
3,532
|
|
|
|
14,304
|
|
|
|
13,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow
|
|
|
$
|
17,927
|
|
|
$
|
12,025
|
|
|
$
|
9,183
|
|
|
$
|
53,431
|
|
|
$
|
34,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction expenses for S&R Acquisition and other (2)
|
|
|
|
1,016
|
|
|
|
1,633
|
|
|
|
-
|
|
|
|
2,779
|
|
|
|
-
|
|
Adjusted distributable cash flow
|
|
|
$
|
18,943
|
|
|
$
|
13,658
|
|
|
$
|
9,183
|
|
|
$
|
56,210
|
|
|
$
|
34,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for coverage ratio
|
|
|
$
|
18,055
|
|
|
$
|
17,079
|
|
|
$
|
-
|
|
|
$
|
58,188
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverage ratio
|
|
|
|
0.98
|
|
|
|
0.69
|
|
|
|
-
|
|
|
|
0.86
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted distributions for coverage ratio (3)
|
|
|
$
|
18,055
|
|
|
$
|
14,851
|
|
|
$
|
-
|
|
|
$
|
55,961
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted coverage ratio
|
|
|
|
1.03
|
|
|
|
0.90
|
|
|
|
-
|
|
|
|
0.94
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
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.
|
|
|
|
|
|
(2)
|
|
Reflects $1.5 million of transaction expenses for the S&R
Acquisition and $0.1 million of nonrecurring expenses for the third
quarter of 2013. Reflects $0.7 million of transaction expenses for
the S&R Acquisition and $0.3 million of nonrecurring expenses for
the fourth quarter of 2013. Reflects $2.1 million of transaction
expenses for the S&R Acquisition and $0.7 million of nonrecurring
expenses for the full-year 2013.
|
|
|
|
|
|
(3)
|
|
Represents for the three-month period cash distributions declared
for common and subordinated units outstanding as determined on the
record date for the quarter. Adjusted distributions for coverage
ratio calculates S&R common units for one month outstanding during
the quarter ended September 30, 2013. Distributions with respect to
the common units and subordinated units owned by USA Compression
Holdings, LLC and S&R outstanding on the record date for each
quarter presented has been or will be reinvested into newly issued
common units under the Partnership’s Distribution Reinvestment Plan.
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP AND SUBSIDIARIES
|
|
Full-Year 2014 Adjusted EBITDA Guidance Range
|
|
Reconciliation to Distributable Cash Flow
|
|
(In millions – Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Guidance
|
|
Adjusted EBITDA
|
|
|
|
$109.0 to $115.0
|
|
Less: Cash interest expense
|
|
|
|
$15.0
|
|
Less: Income tax provision
|
|
|
|
$0.3
|
|
Less: Maintenance capital expenditures
|
|
|
|
$18.7
|
|
Distributable cash flow
|
|
|
|
$75.0 to $81.0
|
Source: USA Compression Partners, LP
USA Compression Partners, LP
Joseph C. “Jody” Tusa,
Jr., 512-473-2662
Chief Financial Officer
jtusa@usacompression.com
or
Matthew
C. Liuzzi, 512-473-2662
SVP – Strategic Development
mliuzzi@usacompression.com
|
