AUSTIN, Texas--(BUSINESS WIRE)--Feb. 19, 2019--
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 2018.
Fourth Quarter and Full-Year 2018 Highlights
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Total revenues were $172.0 million for the fourth quarter 2018 and
$584.4 million for the full-year 2018.
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Net income was $10.2 million for the fourth quarter 2018 and net loss
was $10.6 million for the full-year 2018.
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Net cash provided by operating activities was $93.1 million for the
fourth quarter 2018 and $226.3 million for the full-year 2018.
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Adjusted EBITDA was $103.3 million for the fourth quarter 2018 and
$320.5 million for the full-year 2018.
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Distributable Cash Flow was $56.4 million for the fourth quarter 2018
and $177.8 million for the full-year 2018.
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Announced cash distribution of $0.525 per common unit.
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Distributable Cash Flow Coverage was 1.19x for the fourth quarter 2018.
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Cash Coverage was 1.20x for the fourth quarter 2018.
“The fourth quarter wrapped up a transformational year for USA
Compression. We successfully completed the acquisition and integration
of CDM Resources and have been operating our compression fleet of nearly
4 million horsepower as a single combined company with an expanded and
diverse geographic footprint across all the key domestic producing
basins,” commented Eric D. Long, USA Compression’s President & Chief
Executive Officer. “The quarter saw continued strength in demand for our
compression services, as evidenced by increases in both average
horsepower utilization and pricing. Financially, we achieved very strong
results, including gross operating margin percentage of 67.7% and
Adjusted EBITDA percentage of 60.0%, both up meaningfully over the third
quarter levels. As we mentioned in last quarter’s call, we believe the
addition of the high quality CDM assets and customers has strengthened
USA Compression, adding scale, stability, and further expanding our
ability to serve our customers everywhere they operate,” he added.
He continued, “The current market for compression services is stronger
than we’ve seen in quite a while, due in part to increasing domestic gas
production and the continued supply tightness for equipment to serve
this growing production. With this backdrop, as we look forward to 2019
and beyond, we plan to continue to execute on our strategic priorities –
prudently deploying organic growth capital to high return projects at
levels that do not require equity issuance, focusing our efforts
internally to ensure financial strength and flexibility, and continuing
to achieve attractive margins. For 2019, we have commitments for the
delivery of approximately 132,000 horsepower throughout the year – as in
recent years, that spending is focused entirely on the largest
horsepower class, and substantially all has already been committed to
customers. Over the course of the year, through a combination of new
unit deliveries and the optimization of our existing fleet, we expect to
continue to de-lever the business while growing coverage.”
Expansion capital expenditures were $39.3 million, maintenance capital
expenditures were $8.9 million and cash interest expense, net was $25.7
million for the fourth quarter of 2018.
On January 17, 2019, the Partnership announced a fourth quarter cash
distribution of $0.525 per common unit, which corresponds to an
annualized distribution rate of $2.10 per common unit. The distribution
was paid on February 8, 2019 to common unitholders of record as of the
close of business on January 28, 2019. For the fourth quarter of 2018,
the Partnership’s Distributable Cash Flow Coverage Ratio was 1.19x and
Cash Coverage Ratio was 1.20x.
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. (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”).
For accounting purposes, the USA Compression Predecessor is the acquirer
in the business combination because its ultimate parent company obtained
control of the Partnership through the acquisition of the Partnership’s
general partner. 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
fourth quarter and full-year 2018 results are not comparable to certain
prior periods.
Operational and Financial Data
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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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2018
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2018
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2018
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Operational Data
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Fleet Horsepower (at period end)
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3,597,097
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3,613,647
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3,597,097
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Revenue Generating Horsepower (at period end)
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3,262,470
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3,217,923
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3,262,470
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Average Revenue Generating Horsepower
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3,274,201
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3,212,183
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2,760,029
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Revenue Generating Compression Units (at period end)
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4,753
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4,756
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4,753
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Horsepower Utilization (at period end) (1)
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94.0
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%
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93.2
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%
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94.0
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%
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Average Horsepower Utilization (for the period) (1)
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95.6
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%
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92.8
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%
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91.9
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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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171,977
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$
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168,947
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$
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584,352
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Average Revenue Per Revenue Generating Horsepower Per Month (2)
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$
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16.42
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$
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16.17
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$
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16.09
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Net income (loss)
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$
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10,185
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$
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(563
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)
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$
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(10,551
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Operating income
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$
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36,567
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$
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23,940
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$
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65,311
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Net cash provided by operating activities
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$
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93,140
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$
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38,830
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$
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226,340
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Gross Operating Margin (3)
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$
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116,430
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$
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104,638
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$
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369,628
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Gross Operating Margin Percentage
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67.7
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%
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61.9
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%
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63.3
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%
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Adjusted EBITDA (3)
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$
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103,256
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$
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90,132
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$
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320,475
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Adjusted EBITDA Percentage
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60.0
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%
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53.3
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%
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54.8
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%
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Distributable Cash Flow (3)
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$
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56,421
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$
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47,478
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$
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177,757
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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 December 31, 2018 and September 30, 2018 was 90.7% and
89.0%, respectively.
Average horsepower utilization based on revenue generating horsepower
and fleet horsepower was 92.8% and 89.7% for the three months ended
December 31, 2018 and September 30, 2018, respectively, and 88.0% for
the year ended December 31, 2018.
(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 December 31, 2018, the Partnership was in compliance with all
covenants under its $1.6 billion revolving credit facility. As of
December 31, 2018, the Partnership had outstanding borrowings under the
revolving credit facility of $1.1 billion, $550.5 million of borrowing
base availability and, subject to compliance with the applicable
financial covenants, available borrowing capacity of $550.5 million. As
of December 31, 2018, the outstanding aggregate principal amount of the
Partnership’s 6.875% senior notes due 2026 was $725.0 million.
Full-Year 2019 Outlook
USA Compression is providing its full-year 2019 guidance as follows:
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Net income range of $20.0 million to $60.0 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 $380.0 million to $420.0 million; and
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Distributable Cash Flow range of $180.0 million to $220.0 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 fourth
quarter and full-year 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 888-394-8218 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
323-701-0225. The conference ID for both is 7939728.
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A replay of the call will be available through March 1, 2019.
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 7939728.
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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 gross
operating margin, Adjusted EBITDA, 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 (benefit). 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 (benefit), 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 on the Partnership’s
Series A Preferred Units (“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 it 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 2019 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
2019 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, 2018, which the Partnership
expects to file with the Securities and Exchange Commission on or before
the applicable filing deadline, 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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Year Ended
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December 31,
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September 30,
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December 31,
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2018
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2018
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2018
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Revenues:
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Contract operations
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$
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163,164
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$
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158,664
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$
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546,896
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Parts and service
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4,566
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6,012
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20,402
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Related party
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4,247
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|
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4,271
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17,054
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Total revenues
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|
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171,977
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|
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168,947
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584,352
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Cost of operations, exclusive of depreciation and amortization
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55,547
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64,309
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214,724
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Gross operating margin
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116,430
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104,638
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369,628
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Other operating and administrative costs and expenses:
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Selling, general and administrative
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16,104
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17,753
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68,995
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Depreciation and amortization
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56,749
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59,403
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213,692
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Loss on disposition of assets
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636
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1,250
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12,964
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Impairment of compression equipment
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6,374
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2,292
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8,666
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Total other operating and administrative costs and expenses
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|
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79,863
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|
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80,698
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|
|
|
|
304,317
|
|
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Operating income
|
|
|
|
|
36,567
|
|
|
|
|
23,940
|
|
|
|
|
65,311
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Interest expense, net
|
|
|
|
|
(27,252
|
)
|
|
|
|
(25,443
|
)
|
|
|
|
(78,377
|
)
|
|
Other
|
|
|
|
|
20
|
|
|
|
|
22
|
|
|
|
|
41
|
|
|
Total other expense
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|
|
|
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(27,232
|
)
|
|
|
|
(25,421
|
)
|
|
|
|
(78,336
|
)
|
|
Net income (loss) before income tax benefit
|
|
|
|
|
9,335
|
|
|
|
|
(1,481
|
)
|
|
|
|
(13,025
|
)
|
|
Income tax benefit
|
|
|
|
|
(850
|
)
|
|
|
|
(918
|
)
|
|
|
|
(2,474
|
)
|
|
Net income (loss)
|
|
|
|
$
|
10,185
|
|
|
|
$
|
(563
|
)
|
|
|
$
|
(10,551
|
)
|
|
Less: distributions on Preferred Units
|
|
|
|
|
(12,188
|
)
|
|
|
|
(12,188
|
)
|
|
|
|
(36,430
|
)
|
|
Net income (loss) attributable to common and Class B unitholders'
interests
|
|
|
|
$
|
(2,003
|
)
|
|
|
$
|
(12,751
|
)
|
|
|
$
|
(46,981
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units
|
|
|
|
$
|
1,267
|
|
|
|
$
|
(8,768
|
)
|
|
|
$
|
(32,053
|
)
|
|
Class B Units
|
|
|
|
$
|
(3,270
|
)
|
|
|
$
|
(3,983
|
)
|
|
|
$
|
(14,928
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding - basic and diluted
|
|
|
|
|
89,993
|
|
|
|
|
89,973
|
|
|
|
|
74,481
|
|
|
Weighted average Class B Units outstanding - basic and diluted
|
|
|
|
|
6,398
|
|
|
|
|
6,398
|
|
|
|
|
6,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per common unit
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.43
|
)
|
|
Basic and diluted net loss per Class B Unit
|
|
|
|
$
|
(0.51
|
)
|
|
|
$
|
(0.62
|
)
|
|
|
$
|
(2.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per common unit in respective periods
|
|
|
|
$
|
0.525
|
|
|
|
$
|
0.525
|
|
|
|
$
|
1.575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
|
|
SELECTED BALANCE SHEET DATA
|
|
(In thousands, except unit amounts — Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
Selected Balance Sheet Data
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
3,774,649
|
|
Long-term debt, net
|
|
|
|
$
|
1,759,058
|
|
Total partners' capital
|
|
|
|
$
|
1,378,856
|
|
|
|
|
|
|
|
Common units outstanding
|
|
|
|
|
89,983,790
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands — Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
Net cash provided by operating activities
|
|
|
|
$
|
93,140
|
|
|
|
$
|
38,830
|
|
|
|
$
|
226,340
|
|
|
Net cash used in investing activities
|
|
|
|
$
|
(63,814
|
)
|
|
|
$
|
(50,879
|
)
|
|
|
$
|
(779,663
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
|
$
|
(32,057
|
)
|
|
|
$
|
12,352
|
|
|
|
$
|
549,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA COMPRESSION PARTNERS, LP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
ADJUSTED EBITDA TO NET INCOME (LOSS) AND
NET CASH PROVIDED BY OPERATING ACTIVITIES
(In thousands —
Unaudited)
The following table reconciles Adjusted EBITDA to net income (loss) and
net cash provided by operating activities, its most directly comparable
GAAP financial measures, for each of the periods presented:
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
Net income (loss)
|
|
|
|
$
|
10,185
|
|
|
|
$
|
(563
|
)
|
|
|
$
|
(10,551
|
)
|
|
Interest expense, net
|
|
|
|
|
27,252
|
|
|
|
|
25,443
|
|
|
|
|
78,377
|
|
|
Depreciation and amortization
|
|
|
|
|
56,749
|
|
|
|
|
59,403
|
|
|
|
|
213,692
|
|
|
Income tax benefit
|
|
|
|
|
(850
|
)
|
|
|
|
(918
|
)
|
|
|
|
(2,474
|
)
|
|
EBITDA
|
|
|
|
$
|
93,336
|
|
|
|
$
|
83,365
|
|
|
|
$
|
279,044
|
|
|
Impairment of compression equipment
|
|
|
|
|
6,374
|
|
|
|
|
2,292
|
|
|
|
|
8,666
|
|
|
Interest income on capital lease
|
|
|
|
|
211
|
|
|
|
|
225
|
|
|
|
|
709
|
|
|
Unit-based compensation expense (1)
|
|
|
|
|
849
|
|
|
|
|
1,892
|
|
|
|
|
11,740
|
|
|
Transaction expenses for acquisitions (2)
|
|
|
|
|
61
|
|
|
|
|
1,257
|
|
|
|
|
4,181
|
|
|
Severance charges
|
|
|
|
|
1,789
|
|
|
|
|
(149
|
)
|
|
|
|
3,171
|
|
|
Loss on disposition of assets
|
|
|
|
|
636
|
|
|
|
|
1,250
|
|
|
|
|
12,964
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
103,256
|
|
|
|
$
|
90,132
|
|
|
|
$
|
320,475
|
|
|
Interest expense, net
|
|
|
|
|
(27,252
|
)
|
|
|
|
(25,443
|
)
|
|
|
|
(78,377
|
)
|
|
Income tax benefit
|
|
|
|
|
850
|
|
|
|
|
918
|
|
|
|
|
2,474
|
|
|
Interest income on capital lease
|
|
|
|
|
(211
|
)
|
|
|
|
(225
|
)
|
|
|
|
(709
|
)
|
|
Non-cash interest expense
|
|
|
|
|
1,525
|
|
|
|
|
1,516
|
|
|
|
|
5,080
|
|
|
Transaction expenses for acquisitions
|
|
|
|
|
(61
|
)
|
|
|
|
(1,257
|
)
|
|
|
|
(4,181
|
)
|
|
Severance charges
|
|
|
|
|
(1,789
|
)
|
|
|
|
149
|
|
|
|
|
(3,171
|
)
|
|
Other
|
|
|
|
|
(800
|
)
|
|
|
|
(688
|
)
|
|
|
|
(2,030
|
)
|
|
Changes in operating assets and liabilities
|
|
|
|
|
17,622
|
|
|
|
|
(26,272
|
)
|
|
|
|
(13,221
|
)
|
|
Net cash provided by operating activities
|
|
|
|
$
|
93,140
|
|
|
|
$
|
38,830
|
|
|
|
$
|
226,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three months ended December 31, 2018 and September 30, 2018,
unit-based compensation expense included $0.5 million and $0.4 million,
respectively, of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards. For
the year ended December 31, 2018, unit-based compensation expense
included $1.3 million of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards and
$3.7 million 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 INCOME
(LOSS) AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(Dollars
in thousands — Unaudited)
The following table reconciles Distributable Cash Flow to net income
(loss) and net cash provided by operating activities, its most directly
comparable GAAP financial measures, for each of the periods presented:
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
Net income (loss)
|
|
|
|
$
|
10,185
|
|
|
|
$
|
(563
|
)
|
|
|
$
|
(10,551
|
)
|
|
Non-cash interest expense
|
|
|
|
|
1,525
|
|
|
|
|
1,516
|
|
|
|
|
5,080
|
|
|
Non-cash income tax benefit
|
|
|
|
|
(800
|
)
|
|
|
|
(1,038
|
)
|
|
|
|
(2,663
|
)
|
|
Depreciation and amortization
|
|
|
|
|
56,749
|
|
|
|
|
59,403
|
|
|
|
|
213,692
|
|
|
Unit-based compensation expense (1)
|
|
|
|
|
849
|
|
|
|
|
1,892
|
|
|
|
|
11,740
|
|
|
Impairment of compression equipment
|
|
|
|
|
6,374
|
|
|
|
|
2,292
|
|
|
|
|
8,666
|
|
|
Transaction expenses for acquisitions (2)
|
|
|
|
|
61
|
|
|
|
|
1,257
|
|
|
|
|
4,181
|
|
|
Severance charges
|
|
|
|
|
1,789
|
|
|
|
|
(149
|
)
|
|
|
|
3,171
|
|
|
Proceeds from insurance recovery
|
|
|
|
|
156
|
|
|
|
|
253
|
|
|
|
|
409
|
|
|
Loss on disposition of assets
|
|
|
|
|
636
|
|
|
|
|
1,250
|
|
|
|
|
12,964
|
|
|
Distributions on Preferred Units
|
|
|
|
|
(12,188
|
)
|
|
|
|
(12,188
|
)
|
|
|
|
(36,430
|
)
|
|
Maintenance capital expenditures (3)
|
|
|
|
|
(8,915
|
)
|
|
|
|
(6,447
|
)
|
|
|
|
(32,502
|
)
|
|
Distributable Cash Flow
|
|
|
|
$
|
56,421
|
|
|
|
$
|
47,478
|
|
|
|
$
|
177,757
|
|
|
Maintenance capital expenditures
|
|
|
|
|
8,915
|
|
|
|
|
6,447
|
|
|
|
|
32,502
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
17,622
|
|
|
|
|
(26,272
|
)
|
|
|
|
(13,221
|
)
|
|
Transaction expenses for acquisitions
|
|
|
|
|
(61
|
)
|
|
|
|
(1,257
|
)
|
|
|
|
(4,181
|
)
|
|
Severance charges
|
|
|
|
|
(1,789
|
)
|
|
|
|
149
|
|
|
|
|
(3,171
|
)
|
|
Distributions on Preferred Units
|
|
|
|
|
12,188
|
|
|
|
|
12,188
|
|
|
|
|
36,430
|
|
|
Other
|
|
|
|
|
(156
|
)
|
|
|
|
97
|
|
|
|
|
224
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
93,140
|
|
|
|
$
|
38,830
|
|
|
|
$
|
226,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow
|
|
|
|
$
|
56,421
|
|
|
|
$
|
47,478
|
|
|
|
$
|
177,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Distributable Cash Flow Coverage Ratio (4) (7)
|
|
|
|
$
|
47,241
|
|
|
|
$
|
47,233
|
|
|
|
$
|
141,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions reinvested in the DRIP (5) (7)
|
|
|
|
$
|
252
|
|
|
|
$
|
218
|
|
|
|
$
|
688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions for Cash Coverage Ratio (6) (7)
|
|
|
|
$
|
46,989
|
|
|
|
$
|
47,015
|
|
|
|
$
|
141,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow Coverage Ratio (7)
|
|
|
|
|
1.19
|
|
|
|
|
1.01
|
|
|
|
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Coverage Ratio (7)
|
|
|
|
|
1.20
|
|
|
|
|
1.01
|
|
|
|
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three months ended December 31, 2018 and September 30, 2018,
unit-based compensation expense included $0.5 million and $0.4 million,
respectively, of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards. For
the year ended December 31, 2018, unit-based compensation expense
included $1.3 million of cash payments related to quarterly payments of
distribution equivalent rights on outstanding phantom unit awards and
$3.7 million 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 on the Partnership’s common
units not participating in the DRIP for each period.
(7) Distributions and related coverage ratios for the year ended
December 31, 2018 reflect only three quarters of distributions as the
USA Compression Predecessor did not pay distributions prior to April 2,
2018. DCF for the year ended December 31, 2018 reflects a full year of
DCF. On a pro forma basis, both the DCF Coverage Ratio and the Cash
Coverage Ratio for the year ended December 31, 2018 was 1.10x when using
comparable three quarters of DCF and three quarters of distributions.
|
|
|
USA COMPRESSION PARTNERS, LP
|
|
FULL-YEAR 2019 ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW
GUIDANCE RANGE
|
|
RECONCILIATION TO NET INCOME
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance
|
|
Net income
|
|
|
|
$20.0 million to $60.0 million
|
|
Plus: Interest expense
|
|
|
|
$127.5 million
|
|
Plus: Depreciation and amortization
|
|
|
|
$222.0 million
|
|
Plus: Income tax expense
|
|
|
|
$0.5 million
|
|
EBITDA
|
|
|
|
$370.0 million to $410.0 million
|
|
Plus: Interest income on capital lease
|
|
|
|
$0.5 million
|
|
Plus: Unit-based compensation expense
|
|
|
|
$9.5 million
|
|
Adjusted EBITDA
|
|
|
|
$380.0 million to $420.0 million
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Less: Cash interest expense
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|
|
|
$125.5 million
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Less: Current income tax expense
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|
|
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$0.5 million
|
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Less: Maintenance capital expenditures
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|
|
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$25.0 million
|
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Less: Distributions on Preferred Units
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|
|
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$49.0 million
|
|
Distributable Cash Flow
|
|
|
|
$180.0 million to $220.0 million
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|
|
|
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190219005359/en/
Source: USA Compression Partners, LP
Investor Contacts:
USA Compression Partners, LP
Matthew
C. Liuzzi
Chief Financial Officer
512-369-1624
ir@usacompression.com
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