AUSTIN, Texas--(BUSINESS WIRE)--May 4, 2017--
USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the
“Partnership”) announced today its financial and operating results for
the first quarter 2017.
First Quarter 2017 Summary Results
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Revenues decreased; first quarter 2017 down 0.5% from first quarter
2016
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Net income decreased; first quarter 2017 down 81.8% from first quarter
2016
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Net cash provided by operating activities decreased; first quarter
2017 down 16.7% from first quarter 2016
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Adjusted EBITDA decreased; first quarter 2017 down 6.3% from first
quarter 2016
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Distributable Cash Flow decreased; first quarter 2017 down 14.7% from
first quarter 2016
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First quarter 2017 cash distribution of $0.525 per common unit,
consistent with first quarter 2016
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Distributable Cash Flow Coverage of 0.82x for first quarter 2017
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Cash Coverage of 1.04x for first quarter 2017
Full-Year 2017 Outlook
USA Compression is confirming the following full-year 2017 guidance:
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Net income range of $15.8 million to $30.8 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 $145.0 million to $160.0 million; and
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Distributable Cash Flow range of $108.0 million to $123.0 million.
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Operational and Financial Data
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Three Months Ended
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March 31,
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December 31,
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March 31,
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2017
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2016
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2016
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Operational Data
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Fleet Horsepower (at period end)
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1,739,379
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1,720,547
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1,711,915
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Revenue Generating Horsepower (at period end)
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1,427,634
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1,387,073
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1,397,278
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Average Revenue Generating Horsepower
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1,406,206
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1,366,371
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1,410,574
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Revenue Generating Compression Units (at period end)
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2,612
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2,552
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2,657
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Horsepower Utilization (at period end) (1)
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89.9
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%
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87.1
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%
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87.9
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%
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Average Horsepower Utilization (for the period) (1)
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88.2
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%
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87.4
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%
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88.7
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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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66,032
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$
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74,913
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$
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66,367
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Average Revenue Per Revenue Generating Horsepower Per Month (2)
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$
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14.98
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$
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15.07
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$
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15.72
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Net income
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$
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1,552
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$
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3,269
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$
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8,538
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Operating income
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$
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7,368
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$
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8,894
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$
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13,827
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Net cash provided by operating activities
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$
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18,286
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$
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9,101
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$
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21,960
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Gross Operating Margin (3)
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$
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43,510
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$
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45,120
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$
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45,538
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Gross Operating Margin Percentage
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65.9
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%
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60.2
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%
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68.6
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%
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Adjusted EBITDA (3)
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$
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36,003
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$
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36,461
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$
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38,404
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Adjusted EBITDA Percentage
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54.5
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%
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48.7
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%
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57.9
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%
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Distributable Cash Flow (3)
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$
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27,223
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$
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28,703
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$
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31,913
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________________________
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(1)
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Horsepower utilization is calculated as (i) the sum of (a) revenue
generating horsepower; (b) horsepower in the Partnership’s fleet
that is under contract but is not yet generating revenue; and (c)
horsepower not yet in the Partnership’s fleet that is under
contract, not yet generating revenue and 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 82.1%, 80.6% and 81.6% for the quarters
ended March 31, 2017, December 31, 2016 and March 31, 2016,
respectively. Average horsepower utilization based on revenue
generating horsepower and fleet horsepower was 80.9%, 79.4% and
82.4% for the quarters ended March 31, 2017, December 31, 2016 and
March 31, 2016, respectively.
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(2)
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Calculated as the average of the result of dividing the contractual
monthly rate for all units at the end of each month in the period by
the sum of the revenue generating horsepower at the end of each
month in the period.
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(3)
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Gross operating margin, Adjusted EBITDA and Distributable Cash Flow
are all non-U.S. generally accepted accounting principles
(“Non-GAAP”) financial measures. For the definition of each measure,
see “Non-GAAP Financial Measures” below.
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First Quarter 2017 Financial and Operating
Performance
Revenues in the first quarter of 2017 decreased 0.5% to $66.0 million
from $66.4 million for the first quarter of 2016. Net income decreased
81.8% to $1.6 million for the first quarter of 2017 as compared to
$8.5 million for the first quarter of 2016. Operating income decreased
46.7% to $7.4 million for the first quarter of 2017 as compared to $13.8
million for the first quarter of 2016. Net cash provided by operating
activities decreased 16.7% to $18.3 million in the first quarter of 2017
as compared to $22.0 million in the first quarter of 2016. Adjusted
EBITDA decreased 6.3% to $36.0 million in the first quarter of 2017 from
$38.4 million for the first quarter of 2016. Distributable Cash Flow
decreased 14.7% to $27.2 million in the first quarter of 2017 from $31.9
million for the first quarter of 2016.
“While the year-over-year comparisons reflect the challenging business
environment we faced in mid-to-late 2016, we are pleased to be off to a
good start in 2017. The first quarter continued the positive industry
trends we experienced coming into the beginning of the year, and we
remain optimistic for continued activity in the areas in which we
operate,” said Eric D. Long, USA Compression’s President and Chief
Executive Officer. “Many of our customers are seeing project ideas turn
into reality, and as a result, we have experienced strong demand for our
compression services. The Permian and Delaware basins remain our most
active areas, and we are taking actions to make sure we have the right
equipment for our customers to execute their projects. We expect the
supply and demand dynamics for natural gas in the U.S. to continue to
evolve, and our fleet of large horsepower assets is well-situated to
take advantage of the changing landscape.”
Average revenue generating horsepower decreased 0.3% to 1,406,206 for
the first quarter of 2017 from 1,410,574 for the first quarter of 2016.
Average revenue per revenue generating horsepower per month decreased
4.7% to $14.98 for the first quarter of 2017 from $15.72 for the first
quarter of 2016.
Gross operating margin decreased 4.5% to $43.5 million for the first
quarter of 2017 from $45.5 million for the first quarter of 2016. Gross
operating margin as a percentage of total revenues was 65.9% for the
first quarter of 2017 compared to 68.6% in the first quarter of 2016.
Expansion capital expenditures were $25.1 million, maintenance capital
expenditures were $3.2 million and cash interest expense, net was $5.1
million for the first quarter of 2017.
On April 20, 2017, the Partnership announced a cash distribution of
$0.525 per unit on its common units. This first quarter distribution
corresponds to an annualized distribution rate of $2.10 per unit. The
distribution will be paid on May 12, 2017 to unitholders of record as of
the close of business on May 2, 2017. USA Compression Holdings, LLC, the
owner of approximately 39.5% of the Partnership’s outstanding limited
partner interests, elected to reinvest 50% of this distribution with
respect to its units pursuant to the Partnership’s Distribution
Reinvestment Plan (the “DRIP”). For the first quarter of 2017, the
Partnership’s Distributable Cash Flow Coverage Ratio was 0.82x and Cash
Coverage Ratio was 1.04x.
Liquidity and Credit Facility
As of March 31, 2017, the Partnership was in compliance with all
covenants under its $1.1 billion revolving credit facility. As of March
31, 2017, the outstanding balance under the revolving credit facility,
which matures in 2020, was $714.8 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 first
quarter 2017 performance. The call will be broadcast live over the
Internet. Investors may participate either by phone or audio webcast.
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By Phone:
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Dial 800-533-7619 inside the U.S. and Canada at least 10 minutes
before the call and ask for the USA Compression Partners Earnings
Call. Investors outside the U.S. and Canada should dial
785-830-1923. The conference ID for both is 9608452.
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A replay of the call will be available through May 15, 2017. Callers
inside the U.S. and Canada may access the replay by dialing
888-203-1112. Investors outside the U.S. and Canada should dial
719-457-0820. The conference ID for both is 9608452.
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By Webcast:
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Connect to the webcast via the “Events” page of USA Compression’s
Investor Relations website at investors.usacompression.com. Please
log in at least 10 minutes in advance to register and download any
necessary software. A replay will be available shortly after the
call.
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About USA Compression Partners, LP
USA Compression Partners, LP is a growth-oriented Delaware limited
partnership that is one of the nation’s largest independent providers of
compression services in terms of total compression fleet horsepower. The
Partnership partners with a broad customer base composed of producers,
processors, gatherers and transporters of natural gas and crude oil. The
Partnership focuses on providing compression services to infrastructure
applications primarily in high-volume gathering systems, processing
facilities and transportation applications. More information is
available at usacompression.com.
Non-GAAP Financial Measures
This news release includes the non-GAAP financial measures of Adjusted
EBITDA, Gross operating margin, Distributable Cash Flow, Distributable
Cash Flow Coverage Ratio and Cash Coverage Ratio.
Management views Adjusted EBITDA as one of its primary management tools,
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 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 sale 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 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.
Management believes that Adjusted EBITDA provides useful information to
investors because, when viewed with U.S. generally accepted accounting
principles (“GAAP”) results and the accompanying reconciliations, it
provides a more complete understanding of the Partnership’s performance
than GAAP results alone. 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, operating income, cash flows from operating
activities or any other measure of financial performance or liquidity
presented in accordance with GAAP as measures of operating performance
and liquidity. Moreover, Adjusted EBITDA as presented may not be
comparable to similarly titled measures of other companies.
Gross operating margin is defined as revenue less cost of operations,
exclusive of depreciation and amortization expense. 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, 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 determined under GAAP, as well as
gross operating margin, to evaluate the Partnership’s operating
profitability. A reconciliation of gross operating margin to operating
income is provided in this news release.
Distributable Cash Flow is defined as net income 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 sale of assets, proceeds from insurance recovery
and other, less maintenance capital expenditures.
Management believes Distributable Cash Flow is an important measure of
operating performance because such measure allows management, investors
and others to compare basic cash flows the Partnership generates (prior
to any retained cash reserves established by the Partnership’s general
partner and the effect of the DRIP) to the cash distributions the
Partnership expects to pay its unitholders.
Distributable Cash Flow Coverage Ratio, a non-GAAP measure, is defined
as Distributable Cash Flow less cash distributions to be paid to the
Partnership’s general partner and incentive distribution rights (“IDRs”)
in respect of such period, divided by distributions declared to limited
partner unitholders in respect of such period. Cash Coverage Ratio is
defined as Distributable Cash Flow less cash distributions to be paid to
the Partnership’s general partner and IDRs in respect of such period,
divided by cash distributions expected to be paid to limited partner
unitholders in respect of such period, after taking into account the
non-cash impact of the DRIP. Management believes Distributable Cash Flow
Coverage Ratio and Cash Coverage Ratio are important measures of
operating performance because they allow management, investors and
others to gauge the Partnership’s ability to pay cash distributions to
limited partner unitholders using the cash flows the Partnership
generates. The Partnership’s Distributable Cash Flow Coverage Ratio and
Cash Coverage Ratio as presented may not be comparable to similarly
titled measures of other companies.
This news release also contains a forward-looking estimate of Adjusted
EBITDA and Distributable Cash Flow projected to be generated by the
Partnership in its 2017 fiscal year. A forward-looking estimate of net
cash provided by operating activities and reconciliations of the
forward-looking estimates of Adjusted EBITDA and Distributable Cash Flow
to net cash provided by operating activities are not provided because
the items necessary to estimate net cash provided by operating
activities, in particular the change in operating assets and
liabilities, are not accessible or estimable at this time. The
Partnership does not anticipate the changes in operating assets and
liabilities to be material, but changes in accounts receivable, accounts
payable, accrued liabilities and deferred revenue could be significant,
such that the amount of net cash provided by operating activities would
vary substantially from the amount of projected Adjusted EBITDA and
Distributable Cash Flow.
See “Reconciliation of Non-GAAP Financial Measures” for Adjusted EBITDA
reconciled to net income and net cash provided by operating activities,
and net income and net cash provided by operating activities reconciled
to Distributable Cash Flow, Distributable Cash Flow Coverage Ratio and
Cash Coverage Ratio.
Forward-Looking Statements
Some of the information in this news release may contain forward-looking
statements. These statements can be identified by the use of
forward-looking terminology including “may,” “believe,” “expect,”
“intend,” “anticipate,” “estimate,” “continue,” or other similar words,
and include the Partnership’s expectation of future performance
contained herein, including as described under “Full-Year 2017 Outlook.”
These statements discuss future expectations, contain projections of
results of operations or of financial condition, or state other
“forward-looking” information. You are cautioned not to place undue
reliance on any forward-looking statements, which can be affected by
assumptions used or by known risks or uncertainties. Consequently, no
forward-looking statements can be guaranteed. When considering these
forward-looking statements, you should keep in mind the risk factors
noted below and other cautionary statements in this news release. The
risk factors and other factors noted throughout this news release could
cause actual results to differ materially from those contained in any
forward-looking statement. Known material factors that could cause the
Partnership’s actual results to differ materially from the results
contemplated by such forward-looking statements are described in Part I,
Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2016, which was filed with the
Securities and Exchange Commission on February 13, 2017, and include:
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changes in general economic conditions and changes in economic
conditions of the crude oil and natural gas industry specifically;
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competitive conditions in the industry;
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changes in the long-term supply of and demand for crude oil and
natural gas;
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our ability to realize the anticipated benefits of acquisitions and to
integrate acquired assets with our existing fleet;
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actions taken by the Partnership’s customers, competitors and
third-party operators;
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the deterioration of the financial condition of our customers;
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changes in the availability and cost of capital;
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operating hazards, natural disasters, weather-related delays, casualty
losses and other matters beyond the Partnership’s control;
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the effects of existing and future laws and governmental regulations;
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the effects of future litigation; and
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other factors discussed in the Partnership’s filings with the
Securities and Exchange Commission.
All forward-looking statements speak only as of the date of this news
release and are expressly qualified in their entirety by the foregoing
cautionary statements. Unless legally required, the Partnership
undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise. Unpredictable or unknown factors not discussed herein also
could have material adverse effects on forward-looking statements.
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USA COMPRESSION PARTNERS, LP
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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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March 31,
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December 31,
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March 31,
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2017
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2016
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2016
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Revenues:
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Contract operations
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$
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60,432
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$
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59,605
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$
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64,278
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Parts and service
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5,600
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15,308
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2,089
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Total revenues
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66,032
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74,913
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66,367
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Cost of operations, exclusive of depreciation and amortization
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22,522
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29,793
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20,829
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Gross operating margin
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43,510
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45,120
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45,538
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Other operating and administrative costs and expenses:
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Selling, general and administrative
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11,123
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10,987
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9,739
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Depreciation and amortization
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24,151
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23,636
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22,094
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Gain on sale of assets
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(244
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)
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(23
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(122
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)
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Impairment of compression equipment
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1,112
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1,626
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—
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Total other operating and administrative costs and expenses
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36,142
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36,226
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31,711
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Operating income
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7,368
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8,894
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13,827
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Other income (expense):
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Interest expense, net
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(5,674
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)
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(5,611
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)
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(5,062
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)
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Other
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7
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5
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7
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Total other expense
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(5,667
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)
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(5,606
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)
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(5,055
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Net income before income tax expense
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1,701
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3,288
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8,772
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Income tax expense
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|
|
149
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|
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|
19
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|
|
|
|
234
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Net income
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|
|
|
$
|
1,552
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|
|
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$
|
3,269
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$
|
8,538
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Net income (loss) allocated to:
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General partner's interest in net income
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$
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353
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$
|
345
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$
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414
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Common units' interest in net income
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|
$
|
1,199
|
|
|
|
$
|
2,924
|
|
|
|
$
|
10,835
|
|
Subordinated units' interest in net income (loss)
|
|
|
|
|
|
|
|
|
|
$
|
(2,711
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
60,877
|
|
|
|
|
56,415
|
|
|
|
|
46,104
|
|
Diluted
|
|
|
|
|
61,154
|
|
|
|
|
56,739
|
|
|
|
|
46,104
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average subordinated units outstanding
|
|
|
|
|
|
|
|
|
|
|
7,101
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per common unit
|
|
|
|
$
|
0.02
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per subordinated unit
|
|
|
|
|
|
|
|
|
|
$
|
(0.38
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per limited partner unit in respective periods
|
|
|
|
$
|
0.525
|
|
|
|
$
|
0.525
|
|
|
|
$
|
0.525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands — Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
Net cash provided by operating activities
|
|
|
|
$
|
18,286
|
|
|
|
$
|
9,101
|
|
|
|
$
|
21,960
|
|
Net cash used in investing activities
|
|
|
|
$
|
(15,590
|
)
|
|
|
$
|
(4,964
|
)
|
|
|
$
|
(16,163
|
)
|
Net cash used in financing activities
|
|
|
|
$
|
(2,754
|
)
|
|
|
$
|
(4,079
|
)
|
|
|
$
|
(5,797
|
)
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP 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
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
Net income
|
|
|
|
$
|
1,552
|
|
|
|
$
|
3,269
|
|
|
|
$
|
8,538
|
|
Interest expense, net
|
|
|
|
|
5,674
|
|
|
|
|
5,611
|
|
|
|
|
5,062
|
|
Depreciation and amortization
|
|
|
|
|
24,151
|
|
|
|
|
23,636
|
|
|
|
|
22,094
|
|
Income tax expense
|
|
|
|
|
149
|
|
|
|
|
19
|
|
|
|
|
234
|
|
EBITDA
|
|
|
|
$
|
31,526
|
|
|
|
$
|
32,535
|
|
|
|
$
|
35,928
|
|
Impairment of compression equipment
|
|
|
|
|
1,112
|
|
|
|
|
1,626
|
|
|
|
|
—
|
|
Interest income on capital lease
|
|
|
|
|
431
|
|
|
|
|
407
|
|
|
|
|
375
|
|
Unit-based compensation expense (1)
|
|
|
|
|
2,945
|
|
|
|
|
1,892
|
|
|
|
|
1,812
|
|
Transaction expenses for acquisitions (2)
|
|
|
|
|
—
|
|
|
|
|
(56
|
)
|
|
|
|
—
|
|
Severance charges
|
|
|
|
|
62
|
|
|
|
|
80
|
|
|
|
|
411
|
|
Other
|
|
|
|
|
171
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Gain on sale of assets
|
|
|
|
|
(244
|
)
|
|
|
|
(23
|
)
|
|
|
|
(122
|
)
|
Adjusted EBITDA
|
|
|
|
$
|
36,003
|
|
|
|
$
|
36,461
|
|
|
|
$
|
38,404
|
|
Interest expense, net
|
|
|
|
|
(5,674
|
)
|
|
|
|
(5,611
|
)
|
|
|
|
(5,062
|
)
|
Income tax expense
|
|
|
|
|
(149
|
)
|
|
|
|
(19
|
)
|
|
|
|
(234
|
)
|
Interest income on capital lease
|
|
|
|
|
(431
|
)
|
|
|
|
(407
|
)
|
|
|
|
(375
|
)
|
Non-cash interest expense
|
|
|
|
|
547
|
|
|
|
|
547
|
|
|
|
|
467
|
|
Transaction expenses for acquisitions
|
|
|
|
|
—
|
|
|
|
|
56
|
|
|
|
|
—
|
|
Severance charges
|
|
|
|
|
(62
|
)
|
|
|
|
(80
|
)
|
|
|
|
(411
|
)
|
Other
|
|
|
|
|
(171
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
Changes in operating assets and liabilities
|
|
|
|
|
(11,777
|
)
|
|
|
|
(21,846
|
)
|
|
|
|
(10,829
|
)
|
Net cash provided by operating activities
|
|
|
|
$
|
18,286
|
|
|
|
$
|
9,101
|
|
|
|
$
|
21,960
|
|
________________________
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
For the quarters ended March 31, 2017, December 31, 2016 and March
31, 2016, unit-based compensation expense included $0.8 million,
$0.6 million, and $0.8 million, respectively, of cash payments
related to quarterly payments of distribution equivalent rights on
outstanding phantom unit awards and $0.4 million, $0, and $0.1
million, respectively, related to the cash portion of any settlement
of phantom unit awards upon vesting. The remainder of the unit-based
compensation expense for each period presented in 2017 and 2016 was
related to non-cash adjustments to the unit-based compensation
liability.
|
|
|
|
(2)
|
|
Represents certain transaction expenses related to potential
acquisitions. The Partnership believes it is useful to investors to
exclude these fees.
|
|
|
|
USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES DISTRIBUTABLE CASH FLOW TO NET INCOME AND
NET CASH PROVIDED BY OPERATING ACTIVITIES (Dollars in
thousands — Unaudited)
The following table reconciles Distributable Cash Flow 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
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
Net income
|
|
|
|
$
|
1,552
|
|
|
|
$
|
3,269
|
|
|
|
$
|
8,538
|
|
Plus: Non-cash interest expense
|
|
|
|
|
547
|
|
|
|
|
547
|
|
|
|
|
467
|
|
Plus: Non-cash income tax expense
|
|
|
|
|
109
|
|
|
|
|
31
|
|
|
|
|
102
|
|
Plus: Depreciation and amortization
|
|
|
|
|
24,151
|
|
|
|
|
23,636
|
|
|
|
|
22,094
|
|
Plus: Unit-based compensation expense (1)
|
|
|
|
|
2,945
|
|
|
|
|
1,892
|
|
|
|
|
1,812
|
|
Plus: Impairment of compression equipment
|
|
|
|
|
1,112
|
|
|
|
|
1,626
|
|
|
|
|
—
|
|
Plus: Transaction expenses for acquisitions (2)
|
|
|
|
|
—
|
|
|
|
|
(56
|
)
|
|
|
|
—
|
|
Plus: Severance charges
|
|
|
|
|
62
|
|
|
|
|
80
|
|
|
|
|
411
|
|
Plus: Other
|
|
|
|
|
171
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Less: Gain on sale of assets
|
|
|
|
|
(244
|
)
|
|
|
|
(23
|
)
|
|
|
|
(122
|
)
|
Less: Maintenance capital expenditures (3)
|
|
|
|
|
(3,182
|
)
|
|
|
|
(2,299
|
)
|
|
|
|
(1,389
|
)
|
Distributable cash flow
|
|
|
|
$
|
27,223
|
|
|
|
$
|
28,703
|
|
|
|
$
|
31,913
|
|
Plus: Maintenance capital expenditures
|
|
|
|
|
3,182
|
|
|
|
|
2,299
|
|
|
|
|
1,389
|
|
Plus: Changes in operating assets and liabilities
|
|
|
|
|
(11,777
|
)
|
|
|
|
(21,846
|
)
|
|
|
|
(10,829
|
)
|
Less: Transaction expenses for acquisitions
|
|
|
|
|
—
|
|
|
|
|
56
|
|
|
|
|
—
|
|
Less: Other
|
|
|
|
|
(342
|
)
|
|
|
|
(111
|
)
|
|
|
|
(513
|
)
|
Net cash provided by operating activities
|
|
|
|
$
|
18,286
|
|
|
|
$
|
9,101
|
|
|
|
$
|
21,960
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow
|
|
|
|
$
|
27,223
|
|
|
|
$
|
28,703
|
|
|
|
$
|
31,913
|
|
Less: Cash distributions to general partner and IDRs
|
|
|
|
|
749
|
|
|
|
|
723
|
|
|
|
|
711
|
|
Distributable Cash Flow attributable to limited partner interest
|
|
|
|
$
|
26,474
|
|
|
|
$
|
27,980
|
|
|
|
$
|
31,202
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Distributable Cash Flow Coverage Ratio (4)
|
|
|
|
$
|
32,119
|
|
|
|
$
|
29,618
|
|
|
|
$
|
28,433
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions reinvested in the DRIP (5)
|
|
|
|
$
|
6,635
|
|
|
|
$
|
4,042
|
|
|
|
$
|
9,807
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Cash Coverage Ratio (6)
|
|
|
|
$
|
25,484
|
|
|
|
$
|
25,576
|
|
|
|
$
|
18,626
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow Coverage Ratio (7)
|
|
|
|
|
0.82
|
|
|
|
|
0.94
|
|
|
|
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Coverage Ratio (8)
|
|
|
|
|
1.04
|
|
|
|
|
1.09
|
|
|
|
|
1.68
|
|
________________________
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
For the quarters ended March 31, 2017, December 31, 2016 and March
31, 2016, unit-based compensation expense included $0.8 million,
$0.6 million, and $0.8 million, respectively, of cash payments
related to quarterly payments of distribution equivalent rights on
outstanding phantom unit awards and $0.4 million, $0, and $0.1
million, respectively, related to the cash portion of any settlement
of phantom unit awards upon vesting. The remainder of the unit-based
compensation expense for each period presented in 2017 and 2016 was
related to non-cash adjustments to the unit-based compensation
liability.
|
|
|
|
(2)
|
|
Represents certain transaction expenses related to potential
acquisitions. The Partnership believes it is useful to investors to
exclude these fees.
|
|
|
|
(3)
|
|
Reflects actual maintenance capital expenditures for the period
presented. Maintenance capital expenditures are capital expenditures
made to maintain the operating capacity of the Partnership’s assets
and extend their useful lives, replace partially or fully
depreciated assets or other capital expenditures that are incurred
in maintaining the Partnership’s existing business and related
operating income.
|
|
|
|
(4)
|
|
Represents distributions to the holders of the Partnership’s common
units, after giving effect to the weighted average common units
outstanding due to our December 2016 equity offering for the quarter
ended December 31, 2016. Without giving effect to the weighted
average common units outstanding due to our December 2016 equity
offering for the quarter ended December 31, 2016, actual
distributions to holders of the Partnership’s common units were
$31.9 million.
|
|
|
|
(5)
|
|
Represents distributions to holders enrolled in the DRIP as of the
record date for each period.
|
|
|
|
(6)
|
|
Represents cash distributions declared for common units not
participating in the DRIP after giving effect to the weighted
average common units outstanding due to our December 2016 equity
offering for the quarter ended December 31, 2016.
|
|
|
|
(7)
|
|
For the quarter ended December 31, 2016, the Distributable Cash Flow
Coverage Ratio based on actual units outstanding at the record date
was 0.88x.
|
|
|
|
(8)
|
|
For the quarter ended December 31, 2016, the Cash Coverage Ratio
based on actual units outstanding at the record date was 1.00x.
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
|
FULL-YEAR 2017 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW
GUIDANCE RANGE
|
RECONCILIATION TO NET INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance
|
Net income
|
|
|
|
$15.8 million to $30.8 million
|
Plus: Interest expense
|
|
|
|
$26.9 million
|
Plus: Depreciation and amortization
|
|
|
|
$92.3 million
|
Plus: Income tax expense
|
|
|
|
$0.2 million
|
EBITDA
|
|
|
|
$135.2 million to $150.2 million
|
Plus: Interest income on capital lease
|
|
|
|
$1.2 million
|
Plus: Unit-based compensation expense (1)
|
|
|
|
$8.6 million
|
Adjusted EBITDA
|
|
|
|
$145.0 million to $160.0 million
|
Less: Cash interest expense
|
|
|
|
$24.8 million
|
Less: Current income tax expense
|
|
|
|
$0.2 million
|
Less: Maintenance capital expenditures
|
|
|
|
$12.0 million
|
Distributable Cash Flow
|
|
|
|
$108.0 million to $123.0 million
|
________________________
|
|
|
|
|
(1)
|
|
Based on the Partnership’s unit closing price as of December 31,
2016.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170504005351/en/
Source: USA Compression Partners, LP
USA Compression Partners, LP Matthew C. Liuzzi,
512-369-1624 Chief Financial Officer mliuzzi@usacompression.com
|