AUSTIN, Texas--(BUSINESS WIRE)--Nov. 6, 2018--
USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the
“Partnership”) announced today its financial and operating results for
the third quarter 2018.
Third Quarter 2018 Highlights
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Total revenues were $168.9 million.
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Net loss was $0.6 million.
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Net cash provided by operating activities was $38.8 million.
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Adjusted EBITDA was $90.1 million.
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Distributable Cash Flow was $47.5 million.
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Announced cash distribution of $0.525 per common unit.
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Distributable Cash Flow Coverage was 1.01x.
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Cash Coverage was 1.01x.
“The third quarter saw continued progress on integrating the CDM assets
and people into USA Compression. I am pleased with what we have
accomplished in the first six months following the acquisition and,
while there is still work to be done, we are ahead of where we expected
to be at this point in the year. Our progress this quarter was made
against a market backdrop of continued strong demand for our compression
services, as evidenced by the top-line revenue growth during the
quarter. We experienced both active horsepower growth during the quarter
as well as increased pricing across the fleet, illustrating the
continued attractive market dynamics we are experiencing. Utilization
for the quarter averaged 92.8%, an increase of approximately 10% over
the utilization averaged by our accounting predecessor for the same
period last year,” commented Eric D. Long, USA Compression’s President
and Chief Executive Officer.
“During the quarter, we took delivery of 60,000 horsepower, almost all
of which consisted of 2,500 horsepower CAT 3608 units. With lead times
still elevated, all of these units were contracted with customers prior
to delivery. We expect to take delivery of approximately 38,000
additional horsepower in the fourth quarter of 2018 and have over
120,000 horsepower scheduled for delivery in 2019, almost all of which
has already been committed to customers,” he added.
“With the continued strength in the marketplace for our large horsepower
services, we expect to continue to drive not only revenue growth but
also margin expansion over time, while maintaining a healthy balance
sheet and building coverage.”
Expansion capital expenditures were $73.1 million, maintenance capital
expenditures were $6.4 million and cash interest expense, net was $23.9
million for the third quarter of 2018.
On October 18, 2018, the Partnership announced a third quarter cash
distribution of $0.525 per common unit, which corresponds to an
annualized distribution rate of $2.10 per common unit. The distribution
will be paid on November 9, 2018 to common unitholders of record as of
the close of business on October 29, 2018. For the third quarter of
2018, the Partnership’s Distributable Cash Flow Coverage Ratio was 1.01x
and Cash Coverage Ratio was 1.01x.
On April 2, 2018, the Partnership completed the acquisition of the CDM
compression business (the “USA Compression Predecessor”) from Energy
Transfer Partners, L.P., now Energy Transfer Operating, L.P., for
approximately $1.7 billion in consideration (the “CDM Acquisition”) and
Energy Transfer Equity, L.P., now Energy Transfer LP, completed the
acquisition of the Partnership’s general partner, USA Compression GP,
LLC (collectively, the “Transactions”). In connection with the
Transactions, the general partner interest was converted into a
noneconomic general partner interest and the Partnership’s incentive
distribution rights were cancelled.
For accounting purposes, the USA Compression Predecessor is the acquirer
in the business combination because its ultimate parent company, Energy
Transfer Equity, L.P., obtained control of the Partnership through the
acquisition of the Partnership’s general partner, USA Compression GP,
LLC. Accordingly, any financial and operational results provided by the
Partnership in filings subsequent to the closing of the Transactions
will reflect (i) the financial and operational results of the USA
Compression Predecessor for all periods prior to the closing of the
Transactions and (ii) the financial and operational results of the
combined businesses, including the impact of the Transactions, for all
periods subsequent to the closing of the Transactions. Therefore, the
third quarter 2018 results are not comparable to certain prior periods.
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Operational and Financial Data
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Three Months Ended
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Nine Months Ended
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September 30, 2018
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September 30, 2018
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Operational Data
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Fleet Horsepower (at period end)
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3,613,647
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3,613,647
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Revenue Generating Horsepower (at period end)
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3,217,923
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3,217,923
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Average Revenue Generating Horsepower
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3,212,183
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2,588,638
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Revenue Generating Compression Units (at period end)
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4,756
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4,756
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Horsepower Utilization (at period end) (1)
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93.2
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%
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93.2
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%
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Average Horsepower Utilization (for the period) (1)
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92.8
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%
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90.6
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%
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Financial Data ($ in thousands, except per
horsepower data)
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Revenue
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$
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168,947
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$
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412,375
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Average Revenue Per Revenue Generating Horsepower Per Month (2)
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$
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16.17
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$
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15.98
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Net loss
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$
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(563
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$
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(20,736
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)
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Operating income
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$
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23,940
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$
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28,744
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Net cash provided by operating activities
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$
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38,830
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$
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133,200
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Gross Operating Margin (3)
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$
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104,638
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$
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253,198
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Gross Operating Margin Percentage
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61.9
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%
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61.4
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%
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Adjusted EBITDA (3)
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$
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90,132
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$
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217,219
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Adjusted EBITDA Percentage
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53.3
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%
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52.7
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%
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Distributable Cash Flow (3)
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$
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47,478
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$
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121,336
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(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 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 September 30, 2018 was 89.0%.
Average horsepower utilization based on revenue generating horsepower
and fleet horsepower was 89.7% and 86.4% for the three and nine months
ended September 30, 2018, 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, as well as
reconciliations of each measure to its most directly comparable
financial measures calculated and presented in accordance with GAAP, see
“Non-GAAP Financial Measures” below.
Liquidity and Long-Term Debt
As of September 30, 2018, the Partnership was in compliance with all
covenants under its $1.6 billion revolving credit facility. As of
September 30, 2018, the Partnership had outstanding borrowings under the
revolving credit facility of $1.0 billion, $578.2 million of borrowing
base availability and, subject to compliance with the applicable
financial covenants, available borrowing capacity of $309.7 million. As
of September 30, 2018, the outstanding aggregate principal amount of the
Partnership’s 6.875% senior notes due 2026 was $725.0 million.
Full-Year 2018 Outlook
USA Compression is updating its full-year 2018 guidance that includes
the expected results following the closing of the Transactions on April
2, 2018 and the use of the USA Compression Predecessor’s results of
operations for all periods prior to the closing of the Transactions:
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Net loss range of $(18.0) million to $(8.0) million;
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A forward-looking estimate of net cash provided by operating
activities is not provided because the items necessary to estimate net
cash provided by operating activities, in particular the change in
operating assets and liabilities, are not accessible or estimable at
this time. The Partnership does not anticipate the changes in
operating assets and liabilities to be material, but changes in
accounts receivable, accounts payable, accrued liabilities and
deferred revenue could be significant, such that the amount of net
cash provided by operating activities would vary substantially from
the amount of projected Adjusted EBITDA and Distributable Cash Flow;
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Adjusted EBITDA range of $310.0 million to $320.0 million; and
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Distributable Cash Flow range of $170.0 million to $180.0 million.
Conference Call
The Partnership will host a conference call today beginning at
11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss third
quarter 2018 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 877-260-1479 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
334-323-0522. The conference ID for both is 9173280.
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A replay of the call will be available through November 16, 2018.
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 9173280.
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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.usacompression.com.
Please log in at least 10 minutes in advance to register and
download any necessary software. A replay will be available
shortly after the call.
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About USA Compression Partners, LP
USA Compression Partners, LP is a growth-oriented Delaware limited
partnership that is one of the nation’s largest independent providers of
compression services in terms of total compression fleet horsepower. The
Partnership partners with a broad customer base composed of producers,
processors, gatherers and transporters of natural gas and crude oil. The
Partnership focuses on providing compression services to infrastructure
applications primarily in high-volume gathering systems, processing
facilities and transportation applications. More information is
available at usacompression.com.
Non-GAAP Financial Measures
This news release includes the Non-GAAP financial measures of Adjusted
EBITDA, gross operating margin, Distributable Cash Flow, Distributable
Cash Flow Coverage Ratio and Cash Coverage Ratio.
Management views Adjusted EBITDA as one of its primary tools for
evaluating the Partnership’s results of operations, 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 tax expense. The Partnership defines Adjusted EBITDA as EBITDA
plus impairment of compression equipment, impairment of goodwill,
interest income on capital lease, unit-based compensation expense,
severance charges, certain transaction fees, loss (gain) on disposition
of assets and other. Adjusted EBITDA is used as a supplemental financial
measure by 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 pay 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.
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. 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. Management believes
that gross operating margin is useful as a supplemental measure of the
Partnership’s operating profitability. Gross operating margin is
impacted primarily by the pricing trends for service operations and cost
of operations, including labor rates for service technicians, volume and
per unit costs for lubricant oils, quantity and pricing of routine
preventative maintenance on compression units and property tax rates on
compression units. Gross operating margin should not be considered an
alternative to, or more meaningful than, operating income (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, 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, impairment of
compression equipment, impairment of goodwill, certain transaction fees,
severance charges, loss (gain) on disposition of assets, proceeds from
insurance recovery and other, less distributions to Preferred Units and
maintenance capital expenditures.
Distributable Cash Flow should not be considered as 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 presented in accordance with GAAP as measures of operating
performance and liquidity. Moreover, our Distributable Cash Flow as
presented may not be comparable to similarly titled measures of other
companies.
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 (after
distributions on the Partnership’s preferred units but prior to any
retained cash reserves established by the Partnership’s general partner
and the effect of the Distribution Reinvestment Plan (“DRIP”)) to the
cash distributions the Partnership expects to pay its common unitholders.
Distributable Cash Flow Coverage Ratio is defined as Distributable Cash
Flow divided by distributions declared to common unitholders in respect
of such period. Cash Coverage Ratio is defined as Distributable Cash
Flow divided by cash distributions expected to be paid to common
unitholders in respect of such period, after taking into account the
non-cash impact of the DRIP. 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
common 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 2018 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,” “if,” “project,”
“outlook,” “will,” “could,” “should,” or other similar words or the
negatives thereof, and include the Partnership’s expectation of future
performance contained herein, including as described under “Full-Year
2018 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, 2017, which was filed with the
Securities and Exchange Commission on February 13, 2018, and include:
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changes in general economic conditions and changes in economic
conditions of the crude oil and natural gas industries specifically;
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competitive conditions in the industry;
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changes in the long-term supply of and demand for crude oil and
natural gas;
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our ability to realize the anticipated benefits of acquisitions and to
integrate acquired assets with our existing fleet, including the CDM
Acquisition;
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actions taken by the Partnership’s customers, competitors and
third-party operators;
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the deterioration of the financial condition of our customers;
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changes in the availability and cost of capital;
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operating hazards, natural disasters, weather-related delays, casualty
losses and other matters beyond the Partnership’s control;
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the effects of existing and future laws and governmental regulations;
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the effects of future litigation; and
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other factors discussed in the Partnership’s filings with the
Securities and Exchange Commission.
All forward-looking statements speak only as of the date of this news
release and are expressly qualified in their entirety by the foregoing
cautionary statements. Unless legally required, the Partnership
undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise. Unpredictable or unknown factors not discussed herein also
could have material adverse effects on forward-looking statements.
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USA COMPRESSION PARTNERS, LP
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except for per unit amounts — Unaudited)
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Three Months Ended
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Nine Months Ended
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September 30, 2018
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September 30, 2018
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Revenues:
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Contract operations
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$
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158,664
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$
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383,732
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Parts and service
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6,012
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15,836
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Related party
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4,271
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12,807
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Total revenues
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168,947
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412,375
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Cost of operations, exclusive of depreciation and amortization
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64,309
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159,177
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Gross operating margin
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104,638
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253,198
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Other operating and administrative costs and expenses:
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Selling, general and administrative
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17,753
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52,891
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Depreciation and amortization
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59,403
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156,943
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Loss on disposition of assets
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1,250
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12,328
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Impairment of compression equipment
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2,292
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2,292
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Total other operating and administrative costs and expenses
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80,698
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224,454
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Operating income
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23,940
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28,744
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Other income (expense):
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Interest expense, net
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(25,443
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)
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(51,125
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)
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Other
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22
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21
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Total other expense
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(25,421
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)
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(51,104
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)
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Net loss before income tax benefit
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(1,481
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)
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(22,360
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)
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Income tax benefit
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(918
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)
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(1,624
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)
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Net loss
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(563
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)
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(20,736
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)
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Less: Preferred Unit distributions
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(12,188
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)
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(24,242
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)
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Net loss attributable to common and Class B unitholders' interests
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$
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(12,751
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)
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$
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(44,978
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)
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Net loss attributable to:
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Common units
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$
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(8,768
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)
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$
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(33,185
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)
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Class B Units
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$
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(3,983
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)
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$
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(11,793
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)
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Weighted average common units outstanding - basic and diluted
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89,973
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69,253
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Weighted average Class B Units outstanding - basic and diluted
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6,398
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6,398
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Basic and diluted net loss per common unit
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$
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(0.10
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)
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$
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(0.48
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)
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Basic and diluted net loss per Class B Unit
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$
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(0.62
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)
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$
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(1.84
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)
|
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Distributions declared per common unit in respective periods
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$
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0.525
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$
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1.05
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USA COMPRESSION PARTNERS, LP
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SELECTED BALANCE SHEET DATA
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(In thousands, except unit amounts — Unaudited)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
Selected Balance Sheet Data
|
|
|
|
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|
|
|
Total assets
|
|
|
|
|
|
|
3,814,052
|
Long-term debt, net
|
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|
|
|
|
|
1,730,763
|
Total partners' capital
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|
|
|
|
|
|
1,426,760
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|
|
|
|
|
|
|
|
Common units outstanding
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|
|
|
|
|
|
89,966,676
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|
|
|
|
|
|
|
|
|
|
|
|
|
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|
USA COMPRESSION PARTNERS, LP
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands — Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2018
|
|
September 30, 2018
|
Net cash provided by operating activities
|
|
$
|
38,830
|
|
|
$
|
133,200
|
|
Net cash used in investing activities
|
|
$
|
(50,879
|
)
|
|
$
|
(715,849
|
)
|
Net cash provided by financing activities
|
|
$
|
12,352
|
|
|
$
|
581,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
ADJUSTED EBITDA TO NET LOSS AND NET CASH PROVIDED BY OPERATING
ACTIVITIES
|
(In thousands — Unaudited)
|
|
|
|
|
|
|
|
The following table reconciles Adjusted EBITDA to net loss and net
cash provided by operating activities, its most directly
comparable GAAP financial measures, for each of the periods
presented:
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2018
|
|
September 30, 2018
|
Net loss
|
|
$
|
(563
|
)
|
|
$
|
(20,736
|
)
|
Interest expense, net
|
|
|
25,443
|
|
|
|
51,125
|
|
Depreciation and amortization
|
|
|
59,403
|
|
|
|
156,943
|
|
Income tax benefit
|
|
|
(918
|
)
|
|
|
(1,624
|
)
|
EBITDA
|
|
$
|
83,365
|
|
|
$
|
185,708
|
|
Impairment of compression equipment
|
|
|
2,292
|
|
|
|
2,292
|
|
Interest income on capital lease
|
|
|
225
|
|
|
|
498
|
|
Unit-based compensation expense (1)
|
|
|
1,892
|
|
|
|
10,891
|
|
Transaction expenses for acquisitions (2)
|
|
|
1,257
|
|
|
|
4,120
|
|
Severance charges
|
|
|
(149
|
)
|
|
|
1,382
|
|
Loss on disposition of assets
|
|
|
1,250
|
|
|
|
12,328
|
|
Adjusted EBITDA
|
|
$
|
90,132
|
|
|
$
|
217,219
|
|
Interest expense, net
|
|
|
(25,443
|
)
|
|
|
(51,125
|
)
|
Income tax benefit
|
|
|
918
|
|
|
|
1,624
|
|
Interest income on capital lease
|
|
|
(225
|
)
|
|
|
(498
|
)
|
Non-cash interest expense
|
|
|
1,516
|
|
|
|
3,555
|
|
Transaction expenses for acquisitions
|
|
|
(1,257
|
)
|
|
|
(4,120
|
)
|
Severance charges
|
|
|
149
|
|
|
|
(1,382
|
)
|
Other
|
|
|
(688
|
)
|
|
|
(1,230
|
)
|
Changes in operating assets and liabilities
|
|
|
(26,272
|
)
|
|
|
(30,843
|
)
|
Net cash provided by operating activities
|
|
$
|
38,830
|
|
|
$
|
133,200
|
|
|
|
|
|
|
|
|
(1) For the three and nine months ended September 30, 2018, unit-based
compensation expense included $0.4 million and $0.8 million,
respectively, of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards and $0
and $3.7 million, respectively, related to the cash portion of any
settlement of phantom unit awards upon vesting. The remainder of the
unit-based compensation expense was related to non-cash adjustments to
the unit-based compensation liability.
(2) Represents certain transaction expenses related to potential and
completed acquisitions and other items. 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 LOSS AND NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
(Dollars in thousands — Unaudited)
|
|
|
|
|
|
|
|
The following table reconciles Distributable Cash Flow to net loss
and net cash provided by operating activities, its most directly
comparable GAAP financial measures, for each of the periods
presented:
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2018
|
|
September 30, 2018
|
Net loss
|
|
$
|
(563
|
)
|
|
$
|
(20,736
|
)
|
Non-cash interest expense
|
|
|
1,516
|
|
|
|
3,555
|
|
Non-cash income tax benefit
|
|
|
(1,038
|
)
|
|
|
(1,863
|
)
|
Depreciation and amortization
|
|
|
59,403
|
|
|
|
156,943
|
|
Unit-based compensation expense (1)
|
|
|
1,892
|
|
|
|
10,891
|
|
Impairment of compression equipment
|
|
|
2,292
|
|
|
|
2,292
|
|
Transaction expenses for acquisitions (2)
|
|
|
1,257
|
|
|
|
4,120
|
|
Severance charges
|
|
|
(149
|
)
|
|
|
1,382
|
|
Proceeds from insurance recovery
|
|
|
253
|
|
|
|
253
|
|
Loss on disposition of assets
|
|
|
1,250
|
|
|
|
12,328
|
|
Distribution to Preferred Units
|
|
|
(12,188
|
)
|
|
|
(24,242
|
)
|
Maintenance capital expenditures (3)
|
|
|
(6,447
|
)
|
|
|
(23,587
|
)
|
Distributable Cash Flow
|
|
$
|
47,478
|
|
|
$
|
121,336
|
|
Maintenance capital expenditures
|
|
|
6,447
|
|
|
|
23,587
|
|
Changes in operating assets and liabilities
|
|
|
(26,272
|
)
|
|
|
(30,843
|
)
|
Transaction expenses for acquisitions
|
|
|
(1,257
|
)
|
|
|
(4,120
|
)
|
Severance charges
|
|
|
149
|
|
|
|
(1,382
|
)
|
Distribution to Preferred Units
|
|
|
12,188
|
|
|
|
24,242
|
|
Other
|
|
|
97
|
|
|
|
380
|
|
Net cash provided by operating activities
|
|
$
|
38,830
|
|
|
$
|
133,200
|
|
|
|
|
|
|
|
|
Distributable Cash Flow
|
|
$
|
47,478
|
|
|
$
|
121,336
|
|
|
|
|
|
|
|
|
Distributions for Distributable Cash Flow Coverage Ratio (4) (7)
|
|
$
|
47,233
|
|
|
$
|
94,458
|
|
|
|
|
|
|
|
|
Distributions reinvested in the DRIP (5) (7)
|
|
$
|
218
|
|
|
$
|
436
|
|
|
|
|
|
|
|
|
Distributions for Cash Coverage Ratio (6) (7)
|
|
$
|
47,015
|
|
|
$
|
94,022
|
|
|
|
|
|
|
|
|
Distributable Cash Flow Coverage Ratio (7)
|
|
|
1.01
|
|
|
|
1.28
|
|
|
|
|
|
|
|
|
Cash Coverage Ratio (7)
|
|
|
1.01
|
|
|
|
1.29
|
|
|
|
|
|
|
|
|
|
|
(1) For the three and nine months ended September 30, 2018, unit-based
compensation expense included $0.4 million and $0.8 million,
respectively, of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards and $0
and $3.7 million, respectively, related to the cash portion of any
settlement of phantom unit awards upon vesting. The remainder of the
unit-based compensation expense was related to non-cash adjustments to
the unit-based compensation liability.
(2) Represents certain transaction expenses related to potential and
completed acquisitions and other items. 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 as of the record date.
(5) Represents estimated distributions to holders enrolled in the DRIP
as of the record date.
(6) Represents cash distributions declared for common units not
participating in the DRIP for each period.
(7) Distributions and related coverage ratios for the nine months ended
September 30, 2018 reflect only two quarters of distributions as the USA
Compression Predecessor did not pay distributions prior to April 2, 2018.
|
|
|
USA COMPRESSION PARTNERS, LP
|
FULL-YEAR 2018 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW
GUIDANCE RANGE
|
RECONCILIATION TO NET LOSS
|
(Unaudited)
|
|
|
|
|
|
Guidance
|
Net loss
|
|
$(18.0) million to $(8.0) million
|
Plus: Interest expense, net
|
|
$78.3 million
|
Plus: Depreciation and amortization
|
|
$216.3 million
|
Plus: Income tax expense
|
|
$(1.6) million
|
EBITDA
|
|
$275.0 million to $285.0 million
|
Plus: Interest income on capital lease
|
|
$0.7 million
|
Plus: Unit-based compensation expense (1)
|
|
$14.0 million
|
Plus: Transaction expenses and severance charges
|
|
$5.7 million
|
Plus: Loss on disposition of assets
|
|
$12.3 million
|
Plus: Impairment of compression equipment
|
|
$2.3 million
|
Adjusted EBITDA
|
|
$310.0 million to $320.0 million
|
Less: Cash interest expense
|
|
$74.0 million
|
Plus: Insurance proceeds
|
|
$0.3 million
|
Less: Preferred unit distribution
|
|
$36.4 million
|
Less: Current income tax expense
|
|
$0.3 million
|
Less: Maintenance capital expenditures
|
|
$29.6 million
|
Distributable Cash Flow
|
|
$170.0 million to $180.0 million
|
|
|
|
(1) Based on the Partnership’s unit closing price as of September 30,
2018.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181106005249/en/
Source: USA Compression Partners, LP
USA Compression Partners, LP
Matthew C. Liuzzi, 512-369-1624
Chief
Financial Officer
ir@usacompression.com