THE WOODLANDS, Texas,
Feb. 24, 2021 /PRNewswire/ -- CSI Compressco LP ("CSI
Compressco", "CCLP" or the "Partnership") (NASDAQ: CCLP) today
announced fourth quarter and total year 2020 results.
Fourth Quarter 2020 Summary:
- Total revenues for the 4th quarter were
$71.1 million, compared to
$72.3 million in the
3rd quarter 2020.
- Net loss was $23.0 million,
including $7.5 million in
non-recurring charges compared to a net loss of $12.6 million in the 3rd quarter
2020.
- Adjusted EBITDA was $26.2 million
compared to $27.8 million in the
3rd quarter 2020. 4th quarter
Adjusted EBITDA included a $5.9
million benefit from the sale of used equipment compared to
a $5.0 million benefit in the
3rd quarter 2020.
- Distributable cash flow was $7.7
million compared to $10.5
million in the 3rd quarter of 2020.
- Distribution coverage ratio was 15.94x in the
4th quarter of 2020 compared to 21.90x in the
3rd quarter of 2020.
- 4th quarter distribution of $0.01 was paid on February
12, 2021.
Fourth Quarter 2020
"In January 2021, a subsidiary of
Spartan Energy Partners LP ("Spartan") acquired CSI Compressco's
General Partner along with a significant number of CCLP Limited
Partner units from TETRA Technologies, Inc. (TTI)" commented
John Jackson, Chief Executive
Officer of CSI Compressco. "We were pleased to have closed
this transaction. We believe that CSI Compressco has a solid
platform of assets and people as well as a strong industry
reputation. We commend the employees of the Partnership for
their efforts during a very challenging 2020 and thank everyone at
TTI for their efforts to transition to a new General Partner.
We view the Spartan business as complementary to CSI
Compressco. Currently, there are opportunities to joint bid
projects and at this stage these are primarily international
opportunities. Over a longer cycle, we will evaluate the
benefits of combining Spartan with the Partnership. There are
no current plans to do so, but if the benefits of combining make
economic sense for both companies, then the larger scale, lower
leverage, and more diverse suite of products provided by a
combination would be of benefit to CSI Compressco."
"We are excited about the future of the Partnership and the
industry overall. That is evident by Spartan's investment in
the compression space through this strategic transaction.
While the 4th quarter reflected continued modest declines across
the Partnership's business and we recognize that additional
declines may persist into the front portion of 2021, we are
optimistic about the long-term future of the compression
industry. We believe in the natural gas business and
compression is a key component of the natural gas value chain, not
only in the US but around the world. The industry faces
unpredictable times, but we are encouraged by the natural gas price
environment and early signs of potential new activity in
2021. We will not operate CSI Compressco on a strategy of
hope of a recovery, but we will operate the company in a manner
that will focus the Partnership on improving near term performance
while positioning the Partnership to participate and thrive in a
recovery. We enter 2021 with 4 large HP units on order that
are already under contract. We expect to focus any additional
capital spending towards redeploying idle fleet units.
Capital discipline, cost management and customer service are areas
we can and will focus on regardless of the environment. We
look forward to the challenge and to the future."
Net cash provided by operating activities was $7.0 million in the fourth quarter, compared to a
use of cash of $4.5 million in the
third quarter. Our year end liquidity was $30.8 million, compared to $33.1 million at the end of the third quarter of
2020 and $21.0 million at the end of
2019. Liquidity is defined as unrestricted cash on hand plus
availability under our revolving credit facility.
In the second quarter of 2020, the Partnership announced that it
was exiting the fabrication business with the final shipment of new
units occurring in the fourth quarter of 2020. As a result,
the Partnership's fabrication business are reported as discontinued
operations.
This press release includes the following financial measures
that are not presented in accordance with generally accepted
accounting principles in the United
States ("U.S. GAAP"): Adjusted EBITDA, distributable cash
flow, distribution coverage ratio, free cash flow, and net leverage
ratio. Please see Schedules B-D for reconciliations of these
non-GAAP financial measures to the most directly comparable U.S.
GAAP measures.
Unaudited results of operations for the quarter ended
December 31, 2020 compared to the prior quarter and the
corresponding prior year quarter are presented in the table
below.
|
Three Months
Ended
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
(In
Thousands)
|
Net loss
|
$
|
(23,025)
|
|
|
$
|
(12,607)
|
|
|
$
|
(1,957)
|
|
Adjusted
EBITDA
|
$
|
26,185
|
|
|
$
|
27,769
|
|
|
$
|
34,708
|
|
Distributable cash
flow
|
$
|
7,653
|
|
|
$
|
10,512
|
|
|
$
|
15,505
|
|
Net cash provided by
(used in) operating activities
|
$
|
7,033
|
|
|
$
|
(4,451)
|
|
|
$
|
(90)
|
|
Free cash
flow
|
$
|
757
|
|
|
$
|
14,099
|
|
|
$
|
(4,410)
|
|
As of December 31, 2020, service compressor fleet
horsepower was 1,175,075 and fleet horsepower in service was
897,446 (we define the overall service fleet utilization rate as
the service compressor fleet horsepower in service divided by the
total compressor fleet horsepower). Idle horsepower equipment
under repair is not considered utilized, but we do count units on
standby as utilized when the client is being billed a standby
service rate.
Balance Sheet
Cash on hand at the end of the fourth quarter was $16.6 million. No amounts were drawn nor
outstanding on the Partnership's asset-based loan at the end of the
fourth quarter. Our debt maturity schedule reflects $80.7 million of unsecured bonds due in August,
2022, $400.0 million of first lien
secured bonds due in April 2025 and
$157.2 million of second lien secured
bonds due in April 2026. The
Partnership does not have any maintenance covenants in its debt
agreements. Net leverage ratio at December
31, 2020 was 5.8x.
Fourth Quarter 2020 Cash Distribution on Common Units
On January 19, 2021, CSI Compressco announced that the
board of directors of its general partner declared a cash
distribution attributable to the fourth quarter of 2020 of
$0.01 per outstanding common unit,
which was paid on February 12, 2021, to common unitholders of
record as of the close of business on January 29,
2021. The distribution coverage ratio for the fourth quarter
of 2020 was 15.94x.
Conference Call
CSI Compressco will host a conference call to discuss fourth
quarter results today, February 24, 2021, at 10:30 a.m. Eastern Time. The phone number
for the call is 1-866-374-8397. The conference call will also
be available by live audio webcast and may be accessed through CSI
Compressco's investor relations website
at http://ir.csicompressco.com/events-and-webcasts. An
audio replay of the conference call will be available at
1-877-344-7529, conference number 10151748, for one week following
the conference call and the archived webcast will be available
through CSI Compressco's website for thirty days following the
conference call.
CSI Compressco Overview
CSI Compressco is a provider of compression services and
equipment for natural gas and oil production, gathering, artificial
lift, transmission, processing, and storage. CSI Compressco's
compression and related services business includes a fleet of
approximately 4,900 compressor packages providing approximately 1.2
million in aggregate horsepower, utilizing a full spectrum of low-,
medium- and high-horsepower engines. CSI Compressco also
provides well monitoring and automated sand separation services in
conjunction with compression and related services in Mexico. CSI Compressco's aftermarket business
provides compressor package reconfiguration and maintenance
services. CSI Compressco's customers comprise a broad base of
natural gas and oil exploration and production, midstream,
transmission, and storage companies operating throughout many of
the onshore producing regions of the
United States, as well as in a number of foreign countries,
including Mexico, Canada and Argentina. CSI Compressco is managed by
Spartan Energy Partners.
Forward-Looking Statements
This news release contains "forward-looking statements" and
information based on our beliefs and those of our general partner,
CSI Compressco GP LLC. Forward-looking statements in this news
release are identifiable by the use of the following words and
other similar words: "anticipates," "assumes," "believes,"
"budgets," "could," "estimates," "expectations," "expects,"
"forecasts," "goal," "intends," "may," "might," "plans,"
"predicts," "projects," "schedules," "seeks," "should," "targets,"
"will," and "would." These forward-looking statements include
statements, other than statements of historical fact, including
anticipated return of standby equipment to in service, , the
redeployment of idle fleet compressors, joint-bidding on potential
projects with Spartan, commodity prices and demand for CSI
Compressco's equipment and services and other statements regarding
CSI Compressco's beliefs, expectations, plans, prospects and other
future events, performance, and other statements that are not
purely historical. Such forward-looking statements reflect
our current views with respect to future events and financial
performance, and are based on assumptions that we believe to be
reasonable, but such forward-looking statements are subject to
numerous risks and uncertainties, including but not limited to:
economic and operating condition that are outside of our control,
including the trading price of our common units; the severity and
duration of the COVID-19 pandemic and related economic
repercussions and the resulting negative impact on the demand
for oil and gas, operational challenges relating to the COVID-19
pandemic and efforts to mitigate the spread of the virus, including
logistical challenges, remote work arrangements, and supply chain
disruptions, other global or national health concerns; the current
significant surplus in the supply of oil and the ability of OPEC
and other oil producing nations to agree on and comply with supply
limitations; the duration and magnitude of the unprecedented
disruption in the oil and gas industry; the levels of competition
we encounter; our dependence upon a limited number of customers and
the activity levels of our customers; our ability to replace our
contracts with our customers, which are generally short-term
contracts; the availability of adequate sources of capital to us;
our existing debt levels and our ability to obtain additional
financing or refinancing; our ability to continue to make cash
distributions, or increase cash distributions from current levels,
after the establishment of reserves, payment of debt service and
other contractual obligations; the restrictions on our business
that are imposed under our long-term debt agreements; our
operational performance; the credit and risk profile of Spartan
Energy Partners; ability of our general partner to retain key
personnel; risks related to acquisitions and our growth strategy;
the availability of raw materials and labor at reasonable prices;
risks related to our foreign operations; the effect and results of
litigation, regulatory matters, settlements, audits, assessments,
and contingencies; or potential material weaknesses in the future;
information technology risks, including the risk of cyberattack;
and other risks and uncertainties contained in our Annual Report on
Form 10-K and our other filings with the U.S. Securities and
Exchange Commission ("SEC"), which are available free of charge on
the SEC website at www.sec.gov. The risks and uncertainties
referred to above are generally beyond our ability to control and
we cannot predict all the risks and uncertainties that could cause
our actual results to differ from those indicated by the
forward-looking statements. If any of these risks or
uncertainties materialize, or if any of the underlying assumptions
prove incorrect, actual results may vary from those indicated by
the forward-looking statements, and such variances may be
material. All subsequent written and verbal forward-looking
statements made by or attributable to us or to persons acting on
our behalf are expressly qualified in their entirety by reference
to these risks and uncertainties. You should not place undue
reliance on forward-looking statements. Each forward-looking
statement speaks only as of the date of the particular statement,
and we undertake no obligation to update or revise any
forward-looking statements we may make, except as may be required
by law.
Reconciliation of Non-GAAP Financial Measures
The
Partnership includes in this release the non-GAAP financial
measures Adjusted EBITDA, distributable cash flow, distribution
coverage ratio, free cash flow, and net leverage ratio. Adjusted
EBITDA is used as a supplemental financial measure by the
Partnership's management to:
- assess the Partnership's ability to generate available cash
sufficient to make distributions to the Partnership's unitholders
and general partner;
- evaluate the financial performance of its assets without regard
to financing methods, capital structure or historical cost
basis;
- measure operating performance and return on capital as compared
to those of our competitors; and
- determine the Partnership's ability to incur and service debt
and fund capital expenditures.
The Partnership defines Adjusted EBITDA as earnings before
interest, taxes, depreciation and amortization, and before certain
charges, including impairments, bad debt expense attributable to
bankruptcy of customers, equity compensation, non-cash costs of
compressors sold, fair value adjustments of our Preferred Units
that were issued in late 2016 and redeemed for cash on August 8, 2019, gain on extinguishment of debt,
write-off of unamortized financing costs, and excluding, Preferred
Units redemption premium, severance and other non-recurring or
unusual expenses or charges.
Distributable cash flow is used as a supplemental financial
measure by the Partnership's management, as it provides important
information relating to the relationship between our financial
operating performance and our cash distribution capability.
Additionally, the Partnership uses distributable cash flow in
setting forward expectations and in communications with the board
of directors of our general partner. The Partnership defines
distributable cash flow as Adjusted EBITDA less current income tax
expense, maintenance capital expenditures, interest expense, and
severance expense, plus non-cash interest expense.
The Partnership believes that the distribution coverage ratio
provides important information relating to the relationship between
the Partnership's financial operating performance and its cash
distribution capability. The Partnership defines the distribution
coverage ratio as the ratio of distributable cash flow to the total
quarterly distribution payable, which includes, as applicable,
distributions payable on all outstanding common units, the general
partner interest and the general partner's incentive distribution
rights.
The Partnership defines free cash flow as net cash provided by
operating activities less capital expenditures, net of sales
proceeds. Management primarily uses this metric to assess our
ability to retire debt, evaluate our capacity to further invest and
grow, and measure our performance as compared to our peer group of
companies.
The Partnership defines net leverage ratio as net debt (the sum
of the carrying value of long-term and short-term debt on its
consolidated balance sheet, less cash, excluding restricted cash on
the consolidated balance sheet and excluding outstanding letters of
credit) divided by Adjusted EBITDA for calculating net leverage
(Adjusted EBITDA as reported externally adjusted for certain items
to comply with its credit agreement) for the trailing twelve month
period. Management primarily uses this metric to assess the
Partnership's ability to borrow, reduce debt, add to cash balances,
pay distributions, and fund investing and financing activities.
These non-GAAP financial measures should not be considered an
alternative to net income, operating income, cash flows from
operating activities or any other measure of financial performance
presented in accordance with U.S. GAAP. These non-GAAP financial
measures may not be comparable to Adjusted EBITDA, distributable
cash flow, free cash flow or other similarly titled measures of
other entities, as other entities may not calculate these non-GAAP
financial measures in the same manner as CSI Compressco. Management
compensates for the limitation of these non-GAAP financial measures
as an analytical tool by reviewing the comparable U.S. GAAP
measures, understanding the differences between the measures and
incorporating this knowledge into management's decision-making
process. Furthermore, these non-GAAP measures should not be viewed
as indicative of the actual amount of cash that CSI Compressco has
available for distributions or that the Partnership plans to
distribute for a given period, nor should they be equated to
available cash as defined in the Partnership's partnership
agreement.
Schedule A - Income Statement
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
|
December
31, 2020
|
|
December
31, 2019
|
|
(In Thousands, Except
per Unit Amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Compression and
related services
|
$
|
52,568
|
|
|
$
|
53,419
|
|
|
$
|
65,297
|
|
|
$
|
228,088
|
|
|
$
|
258,270
|
|
Aftermarket
services
|
12,721
|
|
|
13,862
|
|
|
24,094
|
|
|
60,290
|
|
|
76,290
|
|
Equipment
sales
|
5,835
|
|
|
4,977
|
|
|
1,872
|
|
|
13,209
|
|
|
5,533
|
|
Total
revenues
|
$
|
71,124
|
|
|
$
|
72,258
|
|
|
$
|
91,263
|
|
|
$
|
301,587
|
|
|
$
|
340,093
|
|
Cost of revenues
(excluding depreciation and
amortization expense):
|
|
|
|
|
|
|
|
|
|
Cost of compression
and related services
|
$
|
26,707
|
|
|
$
|
25,133
|
|
|
$
|
31,568
|
|
|
$
|
108,843
|
|
|
$
|
125,104
|
|
Cost of aftermarket
services
|
10,951
|
|
|
11,815
|
|
|
19,916
|
|
|
52,444
|
|
|
63,757
|
|
Cost of equipment
sales
|
5,540
|
|
|
4,818
|
|
|
2,336
|
|
|
12,946
|
|
|
6,323
|
|
Total cost of
revenues
|
$
|
43,198
|
|
|
$
|
41,766
|
|
|
$
|
53,820
|
|
|
$
|
174,233
|
|
|
$
|
195,184
|
|
Depreciation and
amortization
|
20,561
|
|
|
19,896
|
|
|
20,378
|
|
|
80,007
|
|
|
75,629
|
|
Impairments of
long-lived assets
|
6,493
|
|
|
—
|
|
|
—
|
|
|
15,367
|
|
|
3,160
|
|
Insurance
recoveries
|
—
|
|
|
—
|
|
|
(230)
|
|
|
(517)
|
|
|
(555)
|
|
Selling, general, and
administrative expense
|
7,991
|
|
|
7,973
|
|
|
9,124
|
|
|
34,295
|
|
|
36,629
|
|
Interest expense,
net
|
13,833
|
|
|
13,886
|
|
|
13,498
|
|
|
54,468
|
|
|
53,375
|
|
Series A Preferred
fair value adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,470
|
|
Other (income)
expense, net
|
(783)
|
|
|
(516)
|
|
|
(532)
|
|
|
3,544
|
|
|
(486)
|
|
Loss before taxes and
discontinued operations
|
$
|
(20,169)
|
|
|
$
|
(10,747)
|
|
|
$
|
(4,795)
|
|
|
$
|
(59,810)
|
|
|
$
|
(24,313)
|
|
Provision for income
taxes
|
1,273
|
|
|
715
|
|
|
69
|
|
|
3,144
|
|
|
2,947
|
|
Loss from continuing
operations
|
$
|
(21,442)
|
|
|
(11,462)
|
|
|
$
|
(4,864)
|
|
|
(62,954)
|
|
|
(27,260)
|
|
Income (loss) from
discontinued operations, net of taxes
|
$
|
(1,583)
|
|
|
(1,145)
|
|
|
$
|
2,907
|
|
|
(10,886)
|
|
|
6,287
|
|
Net loss
|
(23,025)
|
|
|
(12,607)
|
|
|
(1,957)
|
|
|
$
|
(73,840)
|
|
|
$
|
(20,973)
|
|
Net loss per diluted
common unit
|
$
|
(0.49)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.04)
|
|
|
$
|
(1.54)
|
|
|
$
|
(0.44)
|
|
Schedule B - Reconciliation of Net Loss to Adjusted EBITDA,
Distributable Cash Flow and Distribution Coverage Ratio
The following table reconciles net loss to Adjusted EBITDA,
distributable cash flow and distribution coverage ratio for the
three month periods ended December 31, 2020,
September 30, 2020 and December 31, 2019 and the twelve
months periods ended December 31, 2020 and December 31,
2019:
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
December 31,
2020
|
|
December 31,
2019
|
|
(In Thousands, except
Ratios)
|
Net loss
|
$
|
(23,025)
|
|
|
$
|
(12,607)
|
|
|
$
|
(1,957)
|
|
|
$
|
(73,840)
|
|
|
$
|
(20,973)
|
|
Interest expense,
net
|
13,833
|
|
|
13,886
|
|
|
13,498
|
|
|
54,468
|
|
|
53,375
|
|
Provision (benefit)
for income taxes
|
1,273
|
|
|
695
|
|
|
47
|
|
|
3,211
|
|
|
3,353
|
|
Depreciation and
amortization
|
20,561
|
|
|
19,947
|
|
|
20,618
|
|
|
80,533
|
|
|
76,663
|
|
Impairments of fixed
assets and inventory
|
6,493
|
|
|
—
|
|
|
—
|
|
|
20,841
|
|
|
3,313
|
|
Bad debt expense
attributable to bankruptcy of customer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,768
|
|
Non-cash cost of
compressors sold
|
5,568
|
|
|
4,804
|
|
|
2,182
|
|
|
12,812
|
|
|
6,023
|
|
Equity
compensation
|
345
|
|
|
232
|
|
|
320
|
|
|
1,389
|
|
|
1,064
|
|
Series A Preferred
redemption premium
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,468
|
|
Series A Preferred
fair value adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,470
|
|
Bond exchange
expenses
|
115
|
|
|
22
|
|
|
—
|
|
|
4,892
|
|
|
—
|
|
Severance
|
194
|
|
|
484
|
|
|
—
|
|
|
2,034
|
|
|
118
|
|
Other
|
828
|
|
|
306
|
|
|
—
|
|
|
2,438
|
|
|
630
|
|
Adjusted
EBITDA
|
$
|
26,185
|
|
|
$
|
27,769
|
|
|
$
|
34,708
|
|
|
$
|
108,778
|
|
|
$
|
128,272
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Current income tax
expense
|
1,650
|
|
|
516
|
|
|
467
|
|
|
2,984
|
|
|
3,224
|
|
Maintenance capital
expenditures
|
4,125
|
|
|
4,354
|
|
|
6,774
|
|
|
18,920
|
|
|
23,132
|
|
Interest
expense
|
13,833
|
|
|
13,886
|
|
|
13,498
|
|
|
54,468
|
|
|
53,375
|
|
Severance and
other
|
1,022
|
|
|
790
|
|
|
—
|
|
|
4,472
|
|
|
748
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
Non-cash items
included in interest expense
|
2,098
|
|
|
2,289
|
|
|
1,536
|
|
|
7,108
|
|
|
5,540
|
|
Distributable cash
flow
|
$
|
7,653
|
|
|
$
|
10,512
|
|
|
$
|
15,505
|
|
|
$
|
35,042
|
|
|
$
|
53,333
|
|
|
|
|
|
|
|
|
|
|
|
Cash distribution
attributable to period
|
$
|
480
|
|
|
$
|
480
|
|
|
$
|
477
|
|
|
$
|
1,918
|
|
|
$
|
1,908
|
|
Distribution coverage
ratio
|
15.94x
|
|
21.9x
|
|
32.51x
|
|
18.27x
|
|
27.95x
|
Schedule C - Reconciliation of Net Cash Provided by Operating
Activities Operations to Free Cash Flow
The following table reconciles net cash provided by operating
activities to free cash flow for the three month periods ended
December 31, 2020, September 30, 2020 and
December 31, 2019 and the twelve month periods ended on
December 31, 2020 and December 31, 2019:
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
December 31,
2020
|
|
December 31,
2019
|
|
(In
Thousands)
|
Net cash provided by
operating activities
|
$
|
7,033
|
|
|
$
|
(4,451)
|
|
|
$
|
(90)
|
|
|
$
|
20,762
|
|
|
$
|
67,696
|
|
Capital expenditures,
net of sales proceeds
|
(6,276)
|
|
|
1,550
|
|
|
(4,320)
|
|
|
(12,334)
|
|
|
(64,773)
|
|
Midland
proceeds
|
—
|
|
|
17,000
|
|
|
—
|
|
|
17,000
|
|
|
—
|
|
Free cash
flow
|
$
|
757
|
|
|
$
|
14,099
|
|
|
$
|
(4,410)
|
|
|
$
|
25,428
|
|
|
$
|
2,923
|
|
Schedule D – Reconciliation of Net Loss to Adjusted
EBITDA for Net Leverage Ratio Calculation
(unaudited)
(in thousands, except ratios)
|
Twelve Months
Ended
|
|
Dec 31,
2020
|
|
|
Net loss
|
$
|
(73,840)
|
|
Interest expense,
net
|
54,468
|
|
Provision for income
taxes
|
3,211
|
|
Depreciation and
amortization
|
80,533
|
|
Impairments and other
charges
|
20,841
|
|
Non-cash cost of
compressors sold
|
12,812
|
|
Equity
Compensation
|
1,389
|
|
Financing
Fees
|
4,892
|
|
Severance
|
2,034
|
|
Other
|
2,438
|
|
Adjusted
EBITDA
|
$
|
108,778
|
|
EBITDA adjustments to
comply with Credit Agreement
|
(490)
|
|
Adjusted EBITDA for
Net Leverage Calculation
|
$
|
108,288
|
|
|
|
Debt
Schedule
|
Dec 31,
2020
|
7.25% Senior
Notes
|
80,722
|
|
7.50% First Lien
Notes
|
400,000
|
|
10.000%/10.750%
Second Lien Notes
|
157,162
|
|
Asset Based
Loan
|
|
Letters of
Credit
|
3,517
|
|
Cash on
Hand
|
(16,577)
|
|
Net
Debt
|
$
|
624,824
|
|
|
|
Net Leverage Ratio
(Net Debt/Adjusted EBITDA for Net Leverage
Calculation)
|
5.8x
|
|
|
|
|
|
Schedule E – Balance Sheet
|
December 31,
2020
|
|
December 31,
2019
|
(in
thousands)
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
16,577
|
|
|
$
|
2,367
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $1,333 in
2020 and $1,582 in 2019
|
43,837
|
|
|
60,835
|
|
Inventories
|
31,188
|
|
|
36,516
|
|
Prepaid expenses and
other current assets
|
5,184
|
|
|
4,015
|
|
Current assets
associated with discontinued operations
|
39
|
|
|
23,560
|
|
Total current
assets
|
96,825
|
|
|
127,293
|
|
Property, plant, and
equipment:
|
|
|
|
Land and
building
|
13,259
|
|
|
11,990
|
|
Compressors and
equipment
|
975,375
|
|
|
973,269
|
|
Vehicles
|
7,692
|
|
|
9,158
|
|
Construction in
progress
|
12,763
|
|
|
9,545
|
|
Total property, plant,
and equipment
|
1,009,089
|
|
|
1,003,962
|
|
Less accumulated
depreciation
|
(457,688)
|
|
|
(399,624)
|
|
Net property, plant,
and equipment
|
551,401
|
|
|
604,338
|
|
Other
assets:
|
|
|
|
Deferred tax
asset
|
10
|
|
|
24
|
|
Intangible assets, net
of accumulated amortization of $30,711 in 2020 and $27,751 in
2019
|
25,057
|
|
|
28,017
|
|
Operating lease
right-of-use assets
|
32,637
|
|
|
21,006
|
|
Other assets
|
4,036
|
|
|
3,539
|
|
Long-term assets
associated with discontinued operations
|
—
|
|
|
38,029
|
|
Total other
assets
|
61,740
|
|
|
90,615
|
|
Total
assets
|
$
|
709,966
|
|
|
$
|
822,246
|
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
19,766
|
|
|
$
|
21,341
|
|
Unearned
income
|
269
|
|
|
283
|
|
Accrued liabilities and
other
|
35,801
|
|
|
41,325
|
|
Amounts payable to
affiliates
|
3,234
|
|
|
7,704
|
|
Current liabilities
associated with discontinued operations
|
345
|
|
|
36,974
|
|
Total current
liabilities
|
59,415
|
|
|
107,627
|
|
Other
liabilities:
|
|
|
|
Long-term debt,
net
|
638,631
|
|
|
638,238
|
|
Deferred tax
liabilities
|
1,478
|
|
|
1,211
|
|
Long-term affiliate
payable
|
—
|
|
|
12,324
|
|
Operating lease
liabilities
|
24,059
|
|
|
13,822
|
|
Other long-term
liabilities
|
11,716
|
|
|
33
|
|
Total other
liabilities
|
675,884
|
|
|
665,628
|
|
Commitments and
contingencies
|
|
|
|
Partners'
capital:
|
|
|
|
General partner
interest
|
(885)
|
|
|
180
|
|
Common units
(47,352,291 units issued and outstanding at December 31, 2020 and
47,078,529 units issued and outstanding at December 31,
2019)
|
(10,055)
|
|
|
63,384
|
|
Accumulated other
comprehensive income (loss)
|
(14,393)
|
|
|
(14,573)
|
|
Total partners'
capital
|
(25,333)
|
|
|
48,991
|
|
Total liabilities and
partners' capital
|
$
|
709,966
|
|
|
$
|
822,246
|
|
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SOURCE CSI Compressco LP