THE WOODLANDS, Texas,
Aug. 7, 2019 /PRNewswire/ -- CSI
Compressco LP ("CSI Compressco") (NASDAQ: CCLP) announced that
revenue increased sequentially by 31%, net loss for the second
quarter of 2019 improved to $2.9
million compared to a net loss of $12.5 million in the first quarter of 2019 and
distributable cash flow(1) increased sequentially by
150% to $15.7 million while achieving
record high compression services gross margins and utilization
since the acquisition of Compressor Systems, Inc. in 2014.
Revenues for the quarter ended June 30,
2019 were $136 million
compared to $103 million for the
first quarter of 2019 and $100
million for the second quarter of 2018. The revenue
increases were primarily from new equipment sales and stronger
aftermarket services activity.
Selected key operational and financial metrics are as
follows:
- Distributable cash flow(1) increased 150% to
$15.7 million in the second quarter
from $6.3 million in the first
quarter of 2019. The coverage ratio on distributable cash
flow(1) was 33.0X.
- Second quarter 2019 Adjusted EBITDA(1) of
$32.8 million increased 22% over the
first quarter of 2019.
- Compression services gross margins in the second quarter of
2019 improved 450 basis points (bps) to 52.7% from 48.2% in the
first quarter of 2019, and represents a record high since the
acquisition of Compressor Systems, Inc.(1)
- Overall service fleet utilization increased 190 bps to 89.1%
from the end of the first quarter of 2019, which was also a record
high since the acquisition of Compressor Systems, Inc. Utilization
for high horsepower equipment (greater than 1,000 horsepower per
unit) increased 150 bps from the end of the first quarter, to
97.1%. During the quarter we increased our active operating
horsepower by more than 11,500 horsepower and we wrote-off 441 low
horsepower GasJack units with a total of 20,286 horsepower.
- The final cash redemption of Series A Convertible Preferred
Units will occur on August 8, 2019,
after which all Series A Preferred Units will be fully
redeemed.
(1) These measures
are not presented in accordance with generally accepted accounting
principles in the United States ("GAAP"). Please see
Schedules B, C and D for reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP
measures.
|
Unaudited results of operations for the quarter ended
June 30, 2019 compared to the prior
quarter and the corresponding prior year quarter are presented in
the following tables.
|
Three Months
Ended
|
|
|
|
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Jun 30,
2018
|
|
Q2-19 vs.
Q1-19
|
|
Q2-19 vs.
Q2-18
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
(2,947)
|
|
$
(12,456)
|
|
$
(9,592)
|
|
76 %
|
|
69 %
|
Adjusted
EBITDA(1)
|
$
32,763
|
|
$
26,805
|
|
$
23,262
|
|
22 %
|
|
41 %
|
Distributable cash
flow(1)
|
$
15,727
|
|
$
6,298
|
|
$
5,216
|
|
150 %
|
|
202 %
|
Quarterly cash
distribution per unit
|
$
0.01
|
|
$
0.01
|
|
$
0.1875
|
|
- %
|
|
(95)%
|
Distribution coverage
ratio(1)
|
33.0x
|
|
13.2x
|
|
0.65x
|
|
|
|
|
Fleet growth capital
expenditures(2)
|
$
11,901
|
|
$
17,578
|
|
$
25,753
|
|
(32)%
|
|
(54)%
|
Cash from operating
activities
|
$
8,710
|
|
$
31,632
|
|
$
(3,908)
|
|
(72)%
|
|
N/A
|
Free cash
flow(1)
|
$
(7,724)
|
|
$
8,480
|
|
$
(34,131)
|
|
N/A
|
|
(77)%
|
|
(1) Non-GAAP
financial measures reconciled to the nearest GAAP number on
Schedules B and C.
|
(2) Includes
capital expenditures paid by TETRA under backstop financing
arrangement
|
Brady Murphy, interim President
of CSI Compressco, commented, "The second quarter was our strongest
sequential improvement in quarterly earnings since the downturn. We
achieved several record highs, driven by continued and consistent
improvements in compression services, aftermarket services and new
unit sales. Adjusted EBITDA increased sequentially by 22% and
was the highest Adjusted EBITDA since the fourth quarter of
2014."
Compression and Related Services
"Compression services continue to get stronger each
quarter. The 450 bps improvement from first quarter of 2019
in gross margin for compression services was a function of several
factors: (a) better pricing, (b) deploying new compression units at
pricing that is generating 20% returns on capital, (c) focusing new
capital on our core customers where we have concentrations of
equipment that allow us to effectively leverage our field staff,
and (d) cost initiatives that are being realized with our ERP
system. Market demand for compression services continues to
be very strong as we continue to see customers asking us for
additional compression services into 2020. Given this
continued demand for our compression services and high utilization
of the fleet, we are continuing to achieve price increases as
customer contracts roll over. As we continue our disciplined
capital allocation policy, we are focusing our investments in new
units to provide compression services to our core customers, who
are major operators in key shale basins that require more equipment
and compression services to perform both centralized gas lift and
field gathering system capabilities to handle the continued high
gas volumes. The need for centralized gas lift (utilizing
multiple large horsepower compressors to service many wells drilled
and producing in concentrated areas) continues to grow in support
of initial early life oil production requirements and for enhanced
oil recovery from those wells.
"We remain bullish on compression as the industry continues to
require more equipment to handle increased gas production and the
increasing trend for centralized gas lift.
"As of June 30, 2019, our
aggregate service compressor package horsepower totaled 1,155,440
and the overall service fleet utilization rate was 89.1%, up 190
basis points from our exit utilization of 87.2% at March 31, 2019. Total aggregate operating
service compressor package horsepower was 1,029,045 as of
June 30, 2019 (we define the fleet
utilization rate as the aggregate compressor package horsepower in
service divided by the aggregate compressor package fleet
horsepower as of such date). We do not exclude idle
horsepower under repair from our calculation of utilization rates.
In the second quarter of 2019 we took an impairment charge to
write-off 441 low horsepower GasJack units with a total of 20,286
horsepower which we have decided to dispose. The utilization
figures in this press release reflect this reduction in our
aggregate fleet horsepower.
Aftermarket Services and Equipment Sales
"Our aftermarket services and equipment sales businesses
experienced a strong rebound in the second quarter, consistent with
our expectations. Second quarter orders for new equipment
sales were $18 million, a significant
increase over the $11 million in the
first quarter of 2019. Although the pipeline of identified
new unit sales opportunities remains in excess of $250 million, customers have delayed committing
to new orders in the first half of the year, which has resulted in
a decrease in our backlog. Our expectation is that new unit
sales orders will rebound in the second half in order to meet our
customers' 2020 delivery requirements. However, due to delays
in new unit sales orders in the first half of the year, we expect
our third quarter and fourth quarter equipment sales will be
slightly lower than previously expected, but still above first
quarter levels.
"Aftermarket services revenue of $18.2
million increased $4.6 million
sequentially, or 34%, due to the timing of completion of major
overhauls of our customers' equipment during the quarter.
Based on our aftermarket services order book, we expect that this
business will continue to get stronger as the year progresses, near
the levels we experienced in the second half of last year.
Capital Allocation
"On August 8, 2019 we will
complete the cash redemption of the Series A Convertible Preferred
Units, freeing up free cash flow to focus on balanced growth and
stakeholder returns. Most of the free cash flow that we
expect to generate in the third quarter of 2019 is already
committed for growth capital. We remain committed in the near
term towards utilizing approximately 50% of free cash flow towards
growth capital and 50% towards stakeholder returns, through either
debt reduction or increased quarterly distributions. We
remain committed to improving our balance sheet with a goal of
reducing our leverage ratio to 4.5x, or better. The amount of
cash directed towards distributions or reductions in debt will be
assessed each quarter with our board of directors and will be
driven by several factors, including how the unsecured bonds and
how the common unit prices are trading in the market. As of
June 30, 2019, we did not have any
amounts drawn on our asset-based revolver. Total long-term debt
outstanding is $296 million of
unsecured bonds that mature in August
2022 and $350 million of
secured bonds that mature in April 2025."
Forward-Looking Guidance
We expect consolidated 2019 revenue to be between $475 million and $490
million, compared to the previous guidance range of
$490 million to $520 million reflecting a slowdown in customer
orders for new equipment, partially offset by continued
improvements in pricing for compression services. We expect
2019 net loss to be between $13.3
million and $15.2 million and
Adjusted EBITDA to be between $125
million and $130 million,
towards the lower range of previous guidance. We further
expect that our average distribution coverage ratio for 2019 will
be between 30X and 32X at the end of 2019 (assuming continuation of
the current quarterly distribution amount) with aggregate 2019
distributable cash flow to be between $56
million and $60 million.
Reconciliations of expected Adjusted EBITDA, distributable cash
flow, free cash flow and distribution coverage ratio to the nearest
GAAP financial measures are included on Schedule D.
We expect 2019 capital expenditures to be between $65 million to $70
million, which we expect to fund from cash on hand and cash
flow from operations. This range includes $18 million to $20
million for maintenance capital expenditures and
$47 million to $50 million of growth capital expenditures that
would add approximately 86,000 of horsepower to the fleet in 2019,
all with client commitments. The range of growth capital
expenditures excludes $15 million of
compressor packages, with 20,700 horsepower, that TETRA
Technologies, Inc. ("TETRA") agreed to purchase and lease to CSI
Compressco. In the first half of 2019, we invested
approximately $31 million of capital
expenditures, inclusive of maintenance capital expenditure and
excluding approximately $11 million
funded by TETRA. For accounting purposes, the $15 million of fleet additions funded by TETRA,
will be reflected as capital expenditures. CSI Compressco has
the right to buy the equipment any time over the next five years in
accordance with the terms of the agreements with TETRA, and has no
obligation to buy the equipment at the end of the five-year term.
This support from TETRA will allow us to meet certain current
client demands without having to borrow under our asset-based
revolver or access the debt or equity markets.
Conference Call
CSI Compressco will host a conference call to discuss second
quarter 2019 results today, August 7,
2019, at 10:30 a.m. Eastern Time. The phone
number for the call is 1-866-374-8397. The conference will
also be available by live audio webcast and may be accessed through
CSI Compressco's website at www.csicompressco.com. An audio
replay of the conference call will be available at 1-877-344-7529,
conference number 10127837, for one week following the conference
call and the archived webcast call will be available through the
Company's website for 30 days following the conference call.
Second Quarter 2019 Cash Distribution on Common Units
On July 22, 2019, CSI Compressco
announced that the board of directors of its general partner
declared a cash distribution attributable to the second quarter of
2019 of $0.01 per outstanding common
unit, which will be paid on August 14,
2019, to common unitholders of record as of the close of
business on August 1, 2019. The
distribution coverage ratio (which is a non-GAAP Financial Measure
defined and reconciled to the closest GAAP financial measure on
Schedule B below) for the second quarter of 2019 was 33.0X.
CSI Compressco Overview
CSI Compressco is a provider of compression services and
equipment for natural gas and oil production, gathering,
transportation, processing, and storage. CSI Compressco's
compression and related services business includes a fleet of more
than 5,300 compressor packages providing approximately 1.15 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 equipment sales
business includes the fabrication and sale of standard compressor
packages and custom-designed compressor packages designed and
fabricated primarily at our facility in Midland, Texas. CSI Compressco's
aftermarket business provides compressor package reconfiguration
and maintenance services, as well as the sale of compressor package
parts and components manufactured by third-party suppliers.
CSI Compressco's customers comprise a broad base of natural
gas and oil exploration and production, mid-stream, 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
CSI Compressco GP Inc., which is an indirect, wholly owned
subsidiary of TETRA Technologies, Inc. (NYSE: TTI).
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 Inc. 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, concerning
the recovery of the oil and gas industry and CSI Compressco's
strategy, future operations, financial position, estimated
revenues, negotiations with our bank lenders, projected costs, and
other statements regarding CSI Compressco's beliefs, expectations,
plans, prospects and other future events and performance.
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
conditions that are outside of our control, including the supply,
demand and prices of crude oil and natural gas; the levels of
competition we encounter; the activity levels of our customers; the
availability of adequate sources of capital to us; our ability to
comply with contractual obligations, including those under our
financing arrangements; our operational performance; the loss of
our management; 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.
Schedule A - Income Statement (unaudited)
Results of
Operations (unaudited)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2019
|
|
Mar 31,
2019
|
|
June 30,
2018
|
|
June 30,
2019
|
|
June 30,
2018
|
|
(in Thousands, Except
per Unit Amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Compression and
related services
|
$
64,546
|
|
$
63,032
|
|
$
56,709
|
|
$
127,578
|
|
$
110,444
|
Aftermarket
services
|
18,169
|
|
13,601
|
|
15,094
|
|
31,770
|
|
29,110
|
Equipment
sales
|
53,141
|
|
26,803
|
|
28,119
|
|
79,944
|
|
45,785
|
Total
revenues
|
135,856
|
|
103,436
|
|
99,922
|
|
239,292
|
|
185,339
|
Cost of revenues
(excluding depreciation and amortization expense):
|
|
|
|
|
|
|
|
|
|
|
|
Cost of compression
and related services
|
30,520
|
|
32,621
|
|
30,509
|
|
63,141
|
|
61,889
|
Cost of aftermarket
services
|
15,428
|
|
11,250
|
|
12,841
|
|
26,678
|
|
23,998
|
Cost of equipment
sales
|
47,402
|
|
24,229
|
|
24,158
|
|
71,631
|
|
39,607
|
Total cost of
revenues
|
93,350
|
|
68,100
|
|
67,508
|
|
161,450
|
|
125,494
|
Depreciation and
amortization
|
19,054
|
|
18,532
|
|
17,448
|
|
37,586
|
|
34,815
|
Impairments and other
charges
|
2,311
|
|
-
|
|
-
|
|
2,311
|
|
-
|
Selling, general, and
administrative expense
|
10,974
|
|
10,665
|
|
10,849
|
|
21,639
|
|
19,146
|
Interest expense,
net
|
13,045
|
|
13,299
|
|
13,823
|
|
26,344
|
|
25,256
|
Series A Preferred
fair value adjustment
|
166
|
|
1,304
|
|
(586)
|
|
1,470
|
|
967
|
Other (income)
expense, net
|
607
|
|
(381)
|
|
(378)
|
|
226
|
|
2,826
|
Income (loss) before
income tax provision
|
(3,651)
|
|
(8,083)
|
|
(8,742)
|
|
(11,734)
|
|
(23,165)
|
Provision (benefit)
for income taxes
|
(704)
|
|
4,373
|
|
850
|
|
3,669
|
|
2,164
|
Net income
(loss)
|
$
(2,947)
|
|
$
(12,456)
|
|
$
(9,592)
|
|
$
(15,403)
|
|
$
(25,329)
|
|
|
|
|
|
|
|
|
|
|
Net income per
diluted common unit
|
$
(0.06)
|
|
$
(0.26)
|
|
$
(0.23)
|
|
$
(0.32)
|
|
$
(0.63)
|
|
|
|
|
|
|
|
|
|
|
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, and free cash flow. 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
non-cash charges and other non-recurring or unusual expenses or
charges, including impairments, equity compensation,
non-cash costs of compressors sold, fair value adjustments of our
Preferred Units, write-off of unamortized financing costs, and
excluding Series A Convertible Preferred Unit redemption premiums,
and severance.
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.
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 GAAP. These non-GAAP financial
measures may not be comparable to Adjusted EBITDA, gross margin,
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 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 B - Reconciliation of Net Income/(Loss) to Adjusted
EBITDA, Distributable Cash Flow and Distribution Coverage Ratio
(unaudited)
The following table reconciles net income (loss) to Adjusted
EBITDA, distributable cash flow and distribution coverage ratio for
the three month periods ended June 30,
2019, March 31, 2019 and
June 30, 2018 and six month periods
ended June 30, 2019 and June 30, 2018:
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2019
|
|
Mar 31,
2019
|
|
June 30,
2018
|
|
June 30,
2019
|
|
June 30,
2018
|
|
(In
Thousands)
|
Net income
(loss)
|
$
(2,947)
|
|
$
(12,456)
|
|
$
(9,592)
|
|
$
(15,403)
|
|
$
(25,329)
|
Interest expense,
net
|
13,045
|
|
13,299
|
|
13,823
|
|
26,344
|
|
25,256
|
Provision for income
taxes
|
(704)
|
|
4,373
|
|
850
|
|
3,669
|
|
2,164
|
Depreciation and
amortization
|
19,054
|
|
18,532
|
|
17,448
|
|
37,586
|
|
34,815
|
Impairments and other
charges
|
2,464
|
|
-
|
|
-
|
|
2,464
|
|
-
|
Non-cash cost of
compressors sold
|
98
|
|
940
|
|
811
|
|
1,038
|
|
1,135
|
Equity
Compensation
|
590
|
|
365
|
|
496
|
|
955
|
|
(108)
|
Series A Preferred
redemption premium
|
621
|
|
448
|
|
-
|
|
1,069
|
|
-
|
Series A Preferred
fair value adjustments
|
166
|
|
1,304
|
|
(586)
|
|
1,470
|
|
967
|
Un-amortized
financing cost charged to expense
|
-
|
|
-
|
|
-
|
|
-
|
|
3,541
|
Severance
|
-
|
|
-
|
|
12
|
|
-
|
|
12
|
Other
|
376
|
|
-
|
|
-
|
|
376
|
|
-
|
Adjusted
EBITDA
|
$
32,763
|
|
$
26,805
|
|
$
23,262
|
|
$
59,568
|
|
$
42,453
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Current income tax
expense
|
(184)
|
|
2,907
|
|
774
|
|
2,723
|
|
1,992
|
Maintenance capital
expenditures
|
4,900
|
|
5,729
|
|
5,591
|
|
10,629
|
|
9,928
|
Interest
expense
|
13,045
|
|
13,299
|
|
13,823
|
|
26,344
|
|
25,256
|
Severance and
other
|
376
|
|
-
|
|
12
|
|
376
|
|
12
|
Plus:
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
1,101
|
|
1,428
|
|
2,154
|
|
2,529
|
|
4,838
|
Distributable cash
flow
|
15,727
|
|
6,298
|
|
5,216
|
|
22,025
|
|
10,103
|
|
|
|
|
|
|
|
|
|
|
Cash distribution
attributable to period
|
477
|
|
477
|
|
8,015
|
|
954
|
|
15,631
|
|
|
|
|
|
|
|
|
|
|
Distribution coverage
ratio
|
32.97x
|
|
13.2x
|
|
0.65x
|
|
23.09x
|
|
0.65x
|
Schedule C - Reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow (unaudited)
The following table reconciles net cash provided by operating
activities to free cash flow for the three month periods ended
June 30, 2019, March 31, 2019 and June
30, 2018 and six month periods ended June 30, 2019 and June 30,
2018:
Results of
Operations (unaudited)
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
June 30,
2019
|
|
June 30,
2018
|
|
(In
Thousands)
|
Cash from
operations
|
$
8,710
|
|
$
31,632
|
|
$
(3,908)
|
|
$
40,342
|
|
$
(4,273)
|
Capital expenditures,
net of sales proceeds
|
(16,434)
|
|
(23,152)
|
|
(30,223)
|
|
(39,586)
|
|
(47,262)
|
Free cash
flow
|
$
(7,724)
|
|
$
8,480
|
|
$
(34,131)
|
|
$
756
|
|
$
(51,535)
|
Schedule D - Reconciliation of Projected Net Income/(Loss) to
Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage
Ratio
(unaudited)
The following table reconciles a range of projected 2019 net
income (loss) to projected 2019 Adjusted EBITDA and projected 2019
Distribution Coverage Ratio.
|
2019
Guidance
|
|
(In
Thousands)
|
|
Low ($125M
EBITDA)
|
|
High ($130M
EBITDA)
|
|
|
|
|
Net income
(loss)
|
$
(15,199)
|
|
$
(13,299)
|
Interest expense,
net
|
52,000
|
|
52,500
|
Provision for income
taxes
|
2,700
|
|
3,300
|
Depreciation and
amortization
|
76,000
|
|
78,000
|
Non-cash cost of
compressors sold
|
2,400
|
|
2,000
|
Equity
Compensation
|
1,800
|
|
2,200
|
Impairments and other
charges
|
2,311
|
|
2,311
|
Unusual items (incl.
Series A Issuance costs)
|
2,988
|
|
2,988
|
Adjusted
EBITDA
|
$
125,000
|
|
$
130,000
|
|
|
|
|
Less: Current income
tax expense
|
$
2,700
|
|
$
3,300
|
Less: Maintenance
capital expenditures
|
18,000
|
|
20,000
|
Less: Interest
Expense, net
|
52,000
|
|
52,500
|
Plus: Non-cash items
included in interest expense
|
4,000
|
|
6,000
|
|
|
|
|
Distributable cash
flow
|
$
56,300
|
|
$
60,200
|
|
|
|
|
Cash distribution
attributable to period
|
$
1,800
|
|
$
2,000
|
|
|
|
|
Distribution coverage
ratio
|
31.28x
|
|
30.10x
|
|
Schedule D assumes
common unit distributions in 2019 will continue at the current
amount of $0.04 per common unit on an annualized basis.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/csi-compressco-lp-announces-strong-second-quarter-and-updates-total-year-financial-guidance-300897605.html
SOURCE CSI Compressco LP