Exhibit
99.1
News Release
Hi-Crush Partners LP Reports
First Quarter 2015 Results
·
1Q15 Revenues of $102 million vs. $71 million in
1Q14
· 1Q15 EBITDA of $30 million vs. $24 million in
1Q14
· $0.61 basic earnings per unit; $0.60 diluted earnings per
unit
Houston, Texas, May 6, 2015 -
Hi-Crush Partners LP (NYSE: HCLP), "Hi-Crush" or the "Partnership",
today reported first quarter 2015 results. Net income for the
quarter was $23.9 million. The limited partners' interest in
net income of $23.7 million for the first quarter of 2015
represents earnings of $0.64 per weighted average common and
subordinated units outstanding during the period. For
purposes of calculating earnings per unit, $1.3 million of limited
partners' interest in net income was allocated to the holder of
incentive distribution rights, resulting in reported basic and
diluted earnings per unit of $0.61 and $0.60 per common and
subordinated unit, respectively.
The Partnership reported earnings
before interest, taxes and depreciation and amortization ("EBITDA")
of $29.6 million for the first quarter of 2015. Distributable
cash flow of $24.9 million attributable to the common and
subordinated unitholders for the first quarter of 2015 corresponds
to distribution coverage of 1.00 times the $24.9 million in
distributions to be paid to common and subordinated unitholders on
May 15, 2015.
"The first quarter was challenging
due to the decline in drilling activity and adverse weather
conditions, particularly in February, in the Northeast," said
Robert E. Rasmus, Co-Chief Executive Officer of Hi-Crush.
"While we see the impact of fewer well completions and reduced
demand for sand continuing through the second quarter, the
long-term fundamental trends for sand demand remain
favorable. As such, we continue to emphasize Hi-Crush's key
advantages of efficiency, quality, execution and logistics to
deliver sand and related services to our customers. We are
focused on further enhancing our competitive position during this
downturn, as well as ensuring that we remain agile and ready to
take full advantage of the recovery."
Revenues for the quarter ended
March 31, 2015 totaled $102.1 million on sales of 1.2 million tons
of frac sand sold, and transload services.
"During the quarter, we provided
temporary price discounts to contract customers, generally
receiving something in return, such as additional volumes or
additional term, over the course of these multi-year contracts. We
also took meaningful strides with our customers in removing
inefficiencies throughout the logistics chain, delivering cost
reductions on delivered product, and strengthening relationships in
the process." said James M. Whipkey, Co-Chief Executive Officer of
Hi-Crush. "Our balance sheet remains strong, enabling us to
not only withstand market volatility, but to retain the financial
flexibility to take advantage of the many opportunities we are
likely to see in 2015 and beyond."
Production cost for sand produced
and delivered from the Wyeville and Augusta facilities was $16.28
per ton during the quarter. Of the 1.2 million
tons sold, approximately 78% were produced and delivered from the
Partnership's facilities, with the remainder being purchased from
the sponsor's Whitehall facility or from third parties.
On April 15, 2015, Hi-Crush
declared its first quarter cash distribution of $0.675 per unit for
all common and subordinated units, or $2.70 on an annualized basis.
The distribution will be paid on May 15, 2015 to all common and
subordinated unitholders of record on May 1, 2015.
Conference
Call
A conference call for investors will be held on Wednesday May 6,
2015 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss
Hi-Crush's first quarter results. Hosting the call will be Robert
E. Rasmus, Co-Chief Executive Officer, James M. Whipkey,
Co-Chief Executive Officer and Laura C. Fulton, Chief Financial
Officer. The call can be accessed live over the telephone by
dialing (877) 407-3982, or for international callers, (201)
493-6780. A replay will be available shortly after the call and can
be accessed by dialing (877) 870-5176, or for international callers
(858) 384-5517. The passcode for the replay is 13606765. The
replay will be available until May 20, 2015.
Interested parties may also listen
to a simultaneous webcast of the conference call by logging onto
Hi-Crush's website at www.hicrushpartners.com in the
Investors-Event Calendar and Presentations section. A replay of the
webcast will also be available for approximately 30 days following
the call.
The slide presentation to be
referenced on the call will also be on Hi-Crush's website at
www.hicrushpartners.com in the Investors-Event Calendar and
Presentations section.
Non-GAAP
Financial Measures
This news release and the accompanying schedules include the
non-GAAP financial measure of EBITDA, Distributable Cash Flow and
Production Costs, which may be used periodically by management when
discussing our financial results with investors and analysts. The
accompanying schedules of this news release provide reconciliations
of these non-GAAP financial measures to their most directly
comparable financial measures calculated and presented in
accordance with generally accepted accounting principles in the
United States of America ("GAAP"). EBITDA, Distributable Cash Flow
and Production Costs are presented as management believes the data
provides a measure of operating performance that is unaffected by
historical cost basis and provides additional information and
metrics relative to the performance of our business.
About
Hi-Crush
Hi-Crush is an integrated producer, transporter, marketer and
distributor of high-quality monocrystalline sand, a specialized
mineral that is used as a proppant to enhance the recovery rates of
hydrocarbons from oil and natural gas wells. Our reserves, which
are located in Wisconsin, consist of "Northern White" sand, a
resource that exists predominately in Wisconsin and limited
portions of the upper Midwest region of the United States. Hi-Crush
owns and operates the largest distribution network in the Marcellus
and Utica shales, and has distribution capabilities throughout
North America. For more information, visit
www.hicrushpartners.com.
Forward-Looking
Statements
Some of the information in this news release may contain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
Forward-looking statements give our current expectations, and
contain projections of results of operations or of financial
condition, or forecasts of future events. Words such as "may,"
"assume," "forecast," "position," "predict," "strategy," "expect,"
"intend," "plan," "estimate," "anticipate," "could," "believe,"
"project," "budget," "potential," or "continue," and similar
expressions are used to identify forward-looking statements. They
can be affected by assumptions used or by known or unknown risks or
uncertainties. Consequently, no forward-looking statements can be
guaranteed. When considering these forward-looking statements, you
should keep in mind the risk factors and other cautionary
statements in Hi-Crush's reports filed with the Securities and
Exchange Commission ("SEC"), including those described under 1A of
Hi-Crush's Form 10-K for the year ended December 31, 2014 and any
subsequently filed 10-Q. Actual results may vary materially. You
are cautioned not to place undue reliance on any forward-looking
statements. You should also understand that it is not possible to
predict or identify all such factors and should not consider the
risk factors in our reports filed with the SEC or the following
list to be a complete statement of all potential risks and
uncertainties. Factors that could cause our actual results to
differ materially from the results contemplated by such forward
looking statements include: the volume of frac sand we are able to
sell; the price at which we are able to sell frac sand; the outcome
of any litigation, claims or assessments, including unasserted
claims; changes in the price and availability of natural gas or
electricity; changes in prevailing economic conditions; and
difficulty collecting receivables. All forward-looking statements
are expressly qualified in their entirety by the foregoing
cautionary statements. Hi-Crush's forward-looking statements speak
only as of the date made and Hi-Crush undertakes no obligation to
update or revise its forward-looking statements, whether as a
result of new information, future events or otherwise.
Investor
contact:
Investor Relations
ir@hicrushpartners.com
(713) 960-4811
Unaudited Condensed Consolidated
Statement of Operations
(Amounts in thousands, except tons, units and per
unit amounts)
|
Three
Months |
|
Ended March 31, |
|
2015 |
|
2014(a) |
Revenues |
$ |
102,111 |
|
|
$ |
70,578 |
|
Cost of
goods sold (including depreciation, depletion and
amortization) |
68,639 |
|
|
44,166 |
|
Gross
profit |
33,472 |
|
|
26,412 |
|
Operating
costs and expenses: |
|
|
|
General
and administrative expenses |
6,218 |
|
|
6,425 |
|
Accretion
of asset retirement obligation |
83 |
|
|
57 |
|
Income
from operations |
27,171 |
|
|
19,930 |
|
Other
income (expense): |
|
|
|
Interest
expense |
(3,317 |
) |
|
(1,410 |
) |
Net
income |
23,854 |
|
|
18,520 |
|
Income
attributable to non-controlling interest |
(169 |
) |
|
(148 |
) |
Net
income attributable to Hi-Crush Partners LP |
$ |
23,685 |
|
|
$ |
18,372 |
|
Earnings
per unit: |
|
|
|
Common
units - basic |
$ |
0.61 |
|
|
$ |
0.49 |
|
Subordinated units - basic |
$ |
0.61 |
|
|
$ |
0.49 |
|
Common
units - diluted |
$ |
0.60 |
|
|
$ |
0.49 |
|
Subordinated units - diluted |
$ |
0.60 |
|
|
$ |
0.49 |
|
|
(a) Financial
information has been recast to include the financial position and
results attributable to Hi-Crush Augusta LLC.
Unaudited EBITDA and
Distributable Cash Flow
|
Three
Months |
|
Ended March 31, |
(in
thousands) |
2015 |
|
2014 |
Reconciliation of distributable cash flow to net
income: |
|
|
|
Net
income |
$ |
23,854 |
|
|
$ |
18,520 |
|
Depreciation and depletion expense |
1,677 |
|
|
1,476 |
|
Amortization expense |
733 |
|
|
2,536 |
|
Interest
expense |
3,317 |
|
|
1,410 |
|
EBITDA |
$ |
29,581 |
|
|
$ |
23,942 |
|
Less:
Cash interest paid |
(2,905 |
) |
|
(1,272 |
) |
Less:
Income attributable to non-controlling interest |
(169 |
) |
|
(148 |
) |
Less:
Maintenance and replacement capital expenditures, including accrual
for reserve replacement (1) |
(1,259 |
) |
|
(969 |
) |
Add:
Accretion of asset retirement obligation |
83 |
|
|
57 |
|
Add: Unit
based compensation |
884 |
|
|
- |
|
Distributable cash flow |
$ |
26,215 |
|
|
$ |
21,610 |
|
Adjusted
for: Distributable cash flow attributable to Hi-Crush Augusta
LLC, net of intercompany eliminations, prior to the Augusta
Contribution (2) |
- |
|
|
(4,188 |
) |
Distributable cash flow attributable to Hi-Crush Partners LP |
26,215 |
|
|
17,422 |
|
Less: Distributable cash flow attributable to holders of
incentive distribution rights |
(1,311 |
) |
|
- |
|
Distributable cash flow attributable to common and subordinated
unitholders |
$ |
24,904 |
|
|
$ |
17,422 |
|
(1)
Maintenance and replacement capital expenditures, including accrual
for reserve replacement, were determined based on an estimated
reserve replacement cost of $1.35 per ton produced and delivered
during the period. Such expenditures include those associated with
the replacement of equipment and sand reserves, to the extent that
such expenditures are made to maintain our long-term operating
capacity. The amount presented does not represent an actual reserve
account or requirement to spend the capital.
(2)
The Partnership's historical financial information has been recast
to consolidate Augusta for all periods presented. For purposes of
calculating distributable cash flow attributable to Hi-Crush
Partners LP, the Partnership excludes the incremental amount of
recasted distributable cash flow earned during the periods prior to
the acquisition by the Partnership on April 28, 2014 of
substantially all of the remaining equity interests in Hi-Crush
Augusta LLC (the "Augusta Contribution").
Unaudited Condensed Consolidated
Cash Flow Information
(Amounts in thousands)
|
Three
Months |
|
Three
Months |
|
Ended |
|
Ended |
|
March
31, |
|
March
31, |
|
2015 |
|
2014(a) |
Operating
activities |
$ |
36,307 |
|
|
$ |
22,666 |
|
Investing
activities |
(21,772 |
) |
|
(3,477 |
) |
Financing
activities |
(14,268 |
) |
|
(28,226 |
) |
Net
(decrease) increase in cash |
$ |
267 |
|
|
$ |
(9,037 |
) |
|
(a) Financial
information has been recast to include the financial position and
results attributable to Hi-Crush Augusta LLC.
Unaudited Condensed Consolidated
Balance Sheet
(Amounts in thousands)
|
March
31, |
|
December
31, |
|
2015 |
|
2014 |
Assets |
|
|
|
Current
assets: |
|
|
|
Cash |
$ |
4,913 |
|
|
$ |
4,646 |
|
Restricted cash |
691 |
|
|
691 |
|
Accounts
receivable |
63,111 |
|
|
82,117 |
|
Inventories |
20,140 |
|
|
23,684 |
|
Prepaid
expenses and other current assets |
4,756 |
|
|
4,081 |
|
Total
current assets |
93,611 |
|
|
115,219 |
|
Property,
plant and equipment, net |
258,538 |
|
|
241,325 |
|
Goodwill
and intangible assets, net |
66,017 |
|
|
66,750 |
|
Other
assets |
12,481 |
|
|
12,826 |
|
Total
assets |
$ |
430,647 |
|
|
$ |
436,120 |
|
Liabilities, Equity and Partners' Capital |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
18,053 |
|
|
$ |
24,878 |
|
Accrued
and other current liabilities |
10,876 |
|
|
12,248 |
|
Due to
sponsor |
5,475 |
|
|
13,459 |
|
Current
portion of long-term debt |
2,000 |
|
|
2,000 |
|
Total
current liabilities |
36,404 |
|
|
52,585 |
|
Long-term
debt |
210,435 |
|
|
198,364 |
|
Asset
retirement obligation |
6,813 |
|
|
6,730 |
|
Total
liabilities |
253,652 |
|
|
257,679 |
|
Commitments and contingencies |
- |
|
|
- |
|
Equity
and Partners' capital: |
|
|
|
General
partner interest |
- |
|
|
- |
|
Limited
partner interests, 36,958,770 and 36,952,426 units outstanding,
respectively |
174,347 |
|
|
175,962 |
|
Total
partners' capital |
174,347 |
|
|
175,962 |
|
Non-controlling interest |
2,648 |
|
|
2,479 |
|
Total
equity and partners' capital |
176,995 |
|
|
178,441 |
|
Total
liabilities, equity and partners' capital |
$ |
430,647 |
|
|
$ |
436,120 |
|
Unaudited Per Ton Operating
Activity
|
Three
Months |
|
Ended March 31, |
|
2015 |
|
2014 |
Sand sold
(in tons) |
1,195,343 |
|
|
898,243 |
|
Sand
produced and delivered (in tons) |
932,755 |
|
|
718,166 |
|
Production costs ($ in thousands) |
$ |
15,188 |
|
|
$ |
14,836 |
|
Production costs per ton |
$ |
16.28 |
|
|
$ |
20.66 |
|
Unaudited Net Income per Limited
Partner Unit
(Amounts in thousands, except units and per unit
amounts)
|
Three
Months |
|
Ended March 31, |
Weighted average limited partner units
outstanding: |
2015 |
|
2014 |
Common
units - basic |
23,317,926 |
|
|
15,233,529 |
|
Subordinated units - basic |
13,640,351 |
|
|
13,640,351 |
|
Common
units - diluted |
23,560,693 |
|
|
15,233,529 |
|
Subordinated units - diluted |
13,640,351 |
|
|
13,640,351 |
|
Reconciliation of net income and
the assumed allocation of net income under the two-class method for
purposes of computing earnings per unit:
|
General Partner and IDRs |
|
Common Units |
|
Subordinated Units |
|
Total |
Declared
distribution |
$ |
1,311 |
|
|
$ |
15,740 |
|
|
$ |
9,207 |
|
|
$ |
26,258 |
|
Assumed
allocation of distributions in excess of earnings |
- |
|
|
(1,624 |
) |
|
(949 |
) |
|
(2,573 |
) |
Limited
partners' interest in net income |
$ |
1,311 |
|
|
$ |
14,116 |
|
|
$ |
8,258 |
|
|
$ |
23,685 |
|
|
|
|
|
|
|
|
|
Earnings
per unit - basic |
|
|
$ |
0.61 |
|
|
$ |
0.61 |
|
|
|
Earnings
per unit - diluted |
|
|
$ |
0.60 |
|
|
$ |
0.60 |
|
|
|
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Hi-Crush Partners LP via Globenewswire
HUG#1919023
Hi-Crush Partners LP Common Units Representing Limited Partner Interests (NYSE:HCLP)
Historical Stock Chart
From Aug 2024 to Sep 2024
Hi-Crush Partners LP Common Units Representing Limited Partner Interests (NYSE:HCLP)
Historical Stock Chart
From Sep 2023 to Sep 2024