Fort Worth, Texas
- August 1, 2018 - Emerge Energy Services LP ("Emerge
Energy") today announced second quarter 2018 financial and
operating results.
Highlights
·
Total volumes sold
increased 6% sequentially to a record 1,589 thousand tons in the
second quarter.
·
Net income of $9.4
million and diluted earnings per unit of $0.30 for the second
quarter.
·
Adjusted EBITDA
increased 34% sequentially to $23.4 million for the second
quarter.
Overview
Emerge Energy reported net income
of $9.4 million, or $0.30 per diluted unit, for the three months
ended June 30, 2018, compared to a net loss of $6.1 million, or
$(0.30) per diluted unit for the three months ended June 30,
2017. For the three months ended March 31, 2018, net income
was $1.5 million, or $0.05 per diluted unit.
Net revenues were $101.8 million
for the three months ended June 30, 2018, compared to $82.6 million
for the three months ended June 30, 2017, and $106.8
million for the three months ended March 31, 2018.
Despite the 6% increase in volumes sequentially in the second
quarter, net revenues decreased due to a decrease in the higher
priced, terminal sales volumes. Volumes sold through our
terminals totaled 26% of volume in the second quarter of 2018,
compared to 39% in the first quarter of 2018.
Adjusted EBITDA was $23.4 million
for the three months ended June 30, 2018, compared to $7.5 million
for the three months ended June 30, 2017, and $17.4
million for the three months ended March 31, 2018.
Emerge Energy generated
Distributable Cash Flow of $17.3 million for the three months ended
June 30, 2018. Adjusted EBITDA and Distributable Cash Flow
are non-GAAP financial measures that Emerge Energy uses to assess
its performance on an ongoing basis. Emerge Energy will not
make a cash distribution on its common units for the three months
ended June 30, 2018, as the board of directors of its general
partner did not approve a cash distribution.
"We delivered solid results in the
second quarter," noted Ted W. Beneski, Chairman of the board of
directors of the general partner of Emerge Energy. "Our total
volumes sold improved by 6% sequentially to 1.6 million tons, and
our Adjusted EBITDA increased by 34% sequentially to $23.4 million
as higher sand prices, an increase of in-basin sales at our San
Antonio and Kosse plants, and lower logistics costs boosted our
margins."
"The demand for frac sand remains
healthy, but we experienced a minor slowdown to finish the second
quarter, and the softness has partially continued into early third
quarter. Conversations with our customers indicate that the
conditions are temporary given the Permian takeaway
constraints. However, we acknowledge that the frac sand
industry faces a state of transition with the utilization of new
in-basin plants increasing throughout the year. As a top five
producer in the frac sand industry in the United States, we believe
we are at the forefront of diversifying our business model to meet
the new needs of the industry with both northern white and in-basin
capabilities."
"Demand for our San Antonio
product is very strong, and we have made considerable progress on
customer contracting by executing several agreements. San
Antonio production volumes increased in the second quarter, but we
incurred a two-month construction delay at the new dry plant.
We are now expecting completion in late-August, so the San Antonio
volumes should improve significantly in the third quarter.
Also, we are now highly confident that we will receive the new NSR
permit by late-August, allowing us to expand the plant to the
ultimate 4.0 million tons per year capacity by the end of the third
quarter this year."
"We are excited about our
previously announced new Oklahoma facility. We continue to
work through the permitting process and expect to break ground on
the new plant by mid-August. With the 1.5 million tons of new
capacity at this plant, our total in-basin capacity will be 6.1
million tons, or approximately 50% of our total frac production
capacity."
"Finally, due to the San Antonio
construction delay, we are updating our 2018 full year guidance to
$110 million for Adjusted EBITDA and $50 million for net
income. Despite the delay, we are nicely positioned for a
strong second half of the year."
Conference Call
Emerge Energy will host its 2018
second quarter results conference call on Wednesday, August 1, 2018
at 3:00 p.m. CT. Callers may listen to the live presentation, which
will be followed by a question and answer segment, by dialing (855)
850-4275 or (720) 634-2898 and entering pass code 9248628. An
audio webcast of the call will be available at www.emergelp.com
within the Investor Relations portion of the website under the
Webcasts & Presentations section. A replay will be
available by audio webcast and teleconference for seven days
following the conclusion of the call. The replay teleconference
will be available by dialing (855) 859-2056 or (404) 537-3406 and
the reservation number 9248628.
Operating Results
The following table summarizes
Emerge Energy's operating results for the six months ended June 30,
2018, and 2017, and three months ended March 31, 2018:
|
Three Months
Ended |
|
Six Months
Ended June 30, |
|
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
Frac
sand revenues |
$ |
100,788 |
|
|
$ |
105,971 |
|
|
$ |
80,909 |
|
|
$ |
206,759 |
|
|
$ |
156,091 |
|
|
Non-frac sand revenues |
1,054 |
|
|
779 |
|
|
1,693 |
|
|
1,833 |
|
|
1,855 |
|
|
Total
revenues |
101,842 |
|
|
106,750 |
|
|
82,602 |
|
|
208,592 |
|
|
157,946 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Cost
of goods sold (excluding depreciation, depletion and
amortization) |
72,650 |
|
|
80,242 |
|
|
71,428 |
|
|
152,892 |
|
|
143,739 |
|
|
Depreciation, depletion and amortization |
5,355 |
|
|
4,861 |
|
|
5,675 |
|
|
10,216 |
|
|
10,331 |
|
|
Selling, general and administrative expenses |
7,390 |
|
|
8,571 |
|
|
6,850 |
|
|
15,961 |
|
|
12,728 |
|
|
Contract and project terminations |
- |
|
|
1,689 |
|
|
- |
|
|
1,689 |
|
|
- |
|
|
Total
operating expenses |
85,395 |
|
|
95,363 |
|
|
83,953 |
|
|
180,758 |
|
|
166,798 |
|
|
Operating income (loss) |
16,447 |
|
|
11,387 |
|
|
(1,351 |
) |
|
27,834 |
|
|
(8,852 |
) |
|
Other
expense (income): |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
6,736 |
|
|
10,492 |
|
|
5,082 |
|
|
17,228 |
|
|
8,280 |
|
|
Other |
230 |
|
|
(688 |
) |
|
(3,008 |
) |
|
(458 |
) |
|
(2,317 |
) |
|
Total
other expense |
6,966 |
|
|
9,804 |
|
|
2,074 |
|
|
16,770 |
|
|
5,963 |
|
|
Income
(loss) from continuing operations before provision for income
taxes |
9,481 |
|
|
1,583 |
|
|
(3,425 |
) |
|
11,064 |
|
|
(14,815 |
) |
|
Provision (benefit) for income taxes |
53 |
|
|
97 |
|
|
- |
|
|
150 |
|
|
- |
|
|
Net
income (loss) from continuing operations |
9,428 |
|
|
1,486 |
|
|
(3,425 |
) |
|
10,914 |
|
|
(14,815 |
) |
|
Income
(loss) from discontinued operations, net of taxes |
- |
|
|
- |
|
|
(2,657 |
) |
|
- |
|
|
(2,657 |
) |
|
Net
income (loss) |
$ |
9,428 |
|
|
$ |
1,486 |
|
|
$ |
(6,082 |
) |
|
$ |
10,914 |
|
|
$ |
(17,472 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a) |
$ |
23,362 |
|
|
$ |
17,386 |
|
|
$ |
7,534 |
|
|
$ |
40,748 |
|
|
$ |
7,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
of frac sand sold (tons in thousands) |
1,519 |
|
1,437 |
|
1,284 |
|
2,956 |
|
2,529 |
|
Volume
of non-frac sand sold (tons in thousands) |
70 |
|
66 |
|
108 |
|
136 |
|
114 |
|
Total
volume of sand sold (tons in thousands) |
1,589 |
|
1,503 |
|
1,392 |
|
3,092 |
|
2,643 |
|
|
|
|
|
|
|
|
|
|
|
|
Terminal sand sales (tons in thousands) |
415 |
|
587 |
|
544 |
|
1,002 |
|
1,132 |
|
|
|
|
|
|
|
|
|
|
|
|
Volume
of frac sand produced by plant (tons in thousands): |
|
|
|
|
|
|
|
|
|
|
Arland, Wisconsin facility |
493 |
|
407 |
|
508 |
|
900 |
|
876 |
|
Barron, Wisconsin facility |
509 |
|
498 |
|
518 |
|
1,007 |
|
1,050 |
|
New
Auburn, Wisconsin facility |
310 |
|
345 |
|
302 |
|
655 |
|
619 |
|
San
Antonio, Texas facility (b) |
109 |
|
59 |
|
- |
|
|
168 |
|
- |
|
|
Kosse,
Texas facility |
108 |
|
99 |
|
47 |
|
207 |
|
112 |
|
Total
volume of frac sand produced |
1,529 |
|
1,408 |
|
1,375 |
|
2,937 |
|
2,657 |
|
(a) See section
entitled "Adjusted EBITDA and Distributable Cash Flow" that
includes a definition of Adjusted EBITDA and provides
reconciliation to GAAP net income and cash flows.
(b) Emerge Energy
commenced frac sand production at the San Antonio facility in July
2017.
Continuing operations
Net income (loss) improved $7.9
million for the second quarter of 2018, compared to first quarter
of 2018, mainly due to one-time non-cash charges of $3.9 million
write-off of deferred financing costs relating to the reduction of
our revolving credit facility, and $1.7 million to write off the
land owner agreements and related prepaid royalties incurred in the
first quarter. We also incurred a one-time charge of $1.1
million of professional fees related to the refinancing in January
2018. Net income also improved in the second quarter of 2018
due to increased prices and higher volumes at our San Antonio and
Kosse facilities. Volumes sold through our terminals totaled
26% of volume in the second quarter of 2018, compared to 39% in the
first quarter of 2018.
Adjusted EBITDA improved $6.0
million for the second quarter of 2018, compared to the first
quarter of 2018, mainly due to higher sand prices and increased
volumes in the second quarter and a $4 million payment of deferred
expenses in the first quarter.
Net income (loss) improved $15.5
million and Adjusted EBITDA improved $15.8 million for the second
quarter of 2018, compared to same quarter in 2017, mainly due to an
increase in total volumes sold, higher prices, and lower production
costs on a per-ton basis. This was offset by increased
selling, general and administrative expenses due to increased
staffing in 2018.
Discontinued operations
During the three months ended June
30, 2017, we recorded a non-cash charge of $2.7 million related to
the August 2016 sale of the Fuel business.
Capital Expenditures
For the three months ended June
30, 2018, Emerge Energy's capital expenditures totaled $25.7
million.
About Emerge Energy Services
LP
Emerge Energy Services LP (NYSE:
EMES) is a growth-oriented limited partnership engaged in the
businesses of mining, producing, and distributing silica sand, a
key input for the hydraulic fracturing of oil and natural gas
wells. Emerge Energy operates its Sand business through its
subsidiary Superior Silica Sands LLC. Emerge Energy also
processed transmix, distributed refined motor fuels, operated bulk
motor fuel storage terminals, and provided complementary fuel
services through its fuel division which was sold on August 31,
2016.
Forward-Looking
Statements
This release contains certain
statements that are "forward-looking statements." These statements
can be identified by the use of forward-looking terminology
including "may," "believe," "will," "expect," "anticipate," or
"estimate." These forward-looking statements involve risks and
uncertainties, and there can be no assurance that actual results
will not differ materially from those expected by management of
Emerge Energy Services LP. When considering these
forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in Emerge Energy's Annual
Report on Form 10-K filed with the SEC. The risk factors and
other factors noted in the Annual Report could cause actual results
to differ materially from those contained in any forward-looking
statement. Except as required by law, Emerge Energy Services
LP does not undertake any obligation to update or revise such
forward-looking statements to reflect events or circumstances that
occur after the date hereof.
PRESS CONTACT
Investor Relations
(817) 618-4020
EMERGE ENERGY
SERVICES LP
CONSOLIDATED STATEMENTS OF
OPERATIONS
($ in thousands except per unit data)
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenues |
$ |
101,842 |
|
|
$ |
82,602 |
|
|
$ |
208,592 |
|
|
$ |
157,946 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost
of goods sold (excluding depreciation, depletion and
amortization) |
72,650 |
|
|
71,428 |
|
|
152,892 |
|
|
143,739 |
|
|
Depreciation, depletion and amortization |
5,355 |
|
|
5,675 |
|
|
10,216 |
|
|
10,331 |
|
|
Selling, general and administrative expenses |
7,390 |
|
|
6,850 |
|
|
15,961 |
|
|
12,728 |
|
|
Contract and project terminations |
- |
|
|
- |
|
|
1,689 |
|
|
- |
|
|
Total
operating expenses |
85,395 |
|
|
83,953 |
|
|
180,758 |
|
|
166,798 |
|
|
Operating income (loss) |
16,447 |
|
|
(1,351 |
) |
|
27,834 |
|
|
(8,852 |
) |
|
Other
expense (income): |
|
|
|
|
|
|
|
|
Interest expense, net |
6,736 |
|
|
5,082 |
|
|
17,228 |
|
|
8,280 |
|
|
Other |
230 |
|
|
(3,008 |
) |
|
(458 |
) |
|
(2,317 |
) |
|
Total
other expense |
6,966 |
|
|
2,074 |
|
|
16,770 |
|
|
5,963 |
|
|
Income
(loss) from continuing operations before provision for income
taxes |
9,481 |
|
|
(3,425 |
) |
|
11,064 |
|
|
(14,815 |
) |
|
Provision (benefit) for income taxes |
53 |
|
|
- |
|
|
150 |
|
|
- |
|
|
Net
income (loss) from continuing operations |
9,428 |
|
|
(3,425 |
) |
|
10,914 |
|
|
(14,815 |
) |
|
Income
(loss) from discontinued operations, net of taxes |
- |
|
|
(2,657 |
) |
|
- |
|
|
(2,657 |
) |
|
Net
income (loss) |
$ |
9,428 |
|
|
$ |
(6,082 |
) |
|
$ |
10,914 |
|
|
$ |
(17,472 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common unit |
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
Earnings (loss) per common unit from continuing operations |
$ |
0.30 |
|
|
$ |
(0.11 |
) |
|
$ |
0.35 |
|
|
$ |
(0.49 |
) |
|
Earnings (loss) per common unit from discontinued operations |
- |
|
|
(0.09 |
) |
|
- |
|
|
(0.09 |
) |
|
Basic
earnings (loss) per common unit |
$ |
0.30 |
|
|
$ |
(0.20 |
) |
|
$ |
0.35 |
|
|
$ |
(0.58 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
Earnings (loss) per common unit from continuing operations |
$ |
0.30 |
|
|
$ |
(0.21 |
) |
|
$ |
0.35 |
|
|
$ |
(0.57 |
) |
|
Earnings (loss) per common unit from discontinued operations |
- |
|
|
(0.09 |
) |
|
- |
|
|
(0.09 |
) |
|
Diluted earnings (loss) per common unit |
$ |
0.30 |
|
|
$ |
(0.30 |
) |
|
$ |
0.35 |
|
|
$ |
(0.66 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common units outstanding - basic |
31,282,680 |
|
|
30,147,725 |
|
|
31,248,017 |
|
|
30,104,613 |
|
|
Weighted average number of common units outstanding - diluted |
31,439,954 |
|
|
30,203,058 |
|
|
31,403,282 |
|
|
30,296,996 |
|
|
Adjusted EBITDA and Distributable
Cash Flow
We calculate Adjusted EBITDA, a
non-GAAP measure, in accordance with our current Credit Agreement
as: net income (loss) plus consolidated interest expense (net of
interest income), income tax expense, depreciation, depletion and
amortization expense, non-cash charges and losses that are unusual
or non-recurring less income tax benefits and gains that are
unusual or non-recurring and other adjustments allowable under our
existing credit agreement. We report Adjusted EBITDA to our
lenders under our revolving credit facility in determining our
compliance with certain financial covenants. Adjusted EBITDA
should not be considered as an alternative to net income, operating
income, cash flow from operating activities or any other measure of
financial performance presented in accordance with GAAP.
Moreover, our Adjusted EBITDA as presented may not be comparable to
similarly titled measures of other companies. The following
table reconciles net income (loss) to Adjusted EBITDA for the three
months ended June 30, 2018, March 31, 2018, and June 30, 2017:
|
Continuing |
|
Discontinued |
|
Consolidated |
|
Consolidated |
|
|
|
|
|
|
|
Three Months
Ended June 30, |
|
March 31, 2018 |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
Net
income (loss) |
$ |
9,428 |
|
|
$ |
(3,425 |
) |
|
$ |
- |
|
|
$ |
(2,657 |
) |
|
$ |
9,428 |
|
|
$ |
(6,082 |
) |
|
$ |
1,486 |
|
|
Interest expense, net |
6,736 |
|
|
5,082 |
|
|
- |
|
|
- |
|
|
6,736 |
|
|
5,082 |
|
|
10,492 |
|
|
Depreciation, depletion and amortization |
5,355 |
|
|
5,675 |
|
|
- |
|
|
- |
|
|
5,355 |
|
|
5,675 |
|
|
4,861 |
|
|
Provision (benefit) for income taxes |
53 |
|
|
- |
|
|
- |
|
|
- |
|
|
53 |
|
|
- |
|
|
97 |
|
|
EBITDA |
21,572 |
|
|
7,332 |
|
|
- |
|
|
(2,657 |
) |
|
21,572 |
|
|
4,675 |
|
|
16,936 |
|
|
Equity-based compensation expense |
426 |
|
|
330 |
|
|
- |
|
|
- |
|
|
426 |
|
|
330 |
|
|
434 |
|
|
Contract and project terminations |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,689 |
|
|
Reduction in escrow receivable |
- |
|
|
- |
|
|
- |
|
|
2,657 |
|
|
- |
|
|
2,657 |
|
|
- |
|
|
Provision for doubtful accounts |
20 |
|
|
- |
|
|
- |
|
|
- |
|
|
20 |
|
|
- |
|
|
3 |
|
|
Accretion expense |
31 |
|
|
29 |
|
|
- |
|
|
- |
|
|
31 |
|
|
29 |
|
|
31 |
|
|
Retirement of assets |
318 |
|
|
66 |
|
|
- |
|
|
- |
|
|
318 |
|
|
66 |
|
|
2 |
|
|
Other
state and local taxes |
395 |
|
|
456 |
|
|
- |
|
|
- |
|
|
395 |
|
|
456 |
|
|
395 |
|
|
Non-cash deferred lease expense |
355 |
|
|
2,329 |
|
|
- |
|
|
- |
|
|
355 |
|
|
2,329 |
|
|
(2,576 |
) |
|
Unrealized loss (gain) on fair value of warrant |
245 |
|
|
(3,008 |
) |
|
- |
|
|
- |
|
|
245 |
|
|
(3,008 |
) |
|
(677 |
) |
|
Other
adjustments allowable under our Credit Agreement |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,149 |
|
|
Adjusted EBITDA |
$ |
23,362 |
|
|
$ |
7,534 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
23,362 |
|
|
$ |
7,534 |
|
|
$ |
17,386 |
|
|
The following table present a reconciliation of
net income (loss) to Adjusted EBITDA for the six months ended June
30, 2018, and 2017:
|
Continuing |
|
Discontinued |
|
Consolidated |
|
|
|
|
|
Six Months
Ended June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
($ in thousands) |
|
Net
income (loss) |
$ |
10,914 |
|
|
$ |
(14,815 |
) |
|
$ |
- |
|
|
$ |
(2,657 |
) |
|
$ |
10,914 |
|
|
$ |
(17,472 |
) |
|
Interest expense, net |
17,228 |
|
|
8,280 |
|
|
- |
|
|
- |
|
|
17,228 |
|
|
8,280 |
|
|
Depreciation, depletion and amortization |
10,216 |
|
|
10,331 |
|
|
- |
|
|
- |
|
|
10,216 |
|
|
10,331 |
|
|
Provision (benefit) for income taxes |
150 |
|
|
- |
|
|
- |
|
|
- |
|
|
150 |
|
|
- |
|
|
EBITDA |
38,508 |
|
|
3,796 |
|
|
- |
|
|
(2,657 |
) |
|
38,508 |
|
|
1,139 |
|
|
Equity-based compensation expense |
860 |
|
|
677 |
|
|
- |
|
|
- |
|
|
860 |
|
|
677 |
|
|
Contract and project terminations |
1,689 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,689 |
|
|
- |
|
|
Reduction in escrow receivable |
- |
|
|
- |
|
|
- |
|
|
2,657 |
|
|
- |
|
|
2,657 |
|
|
Provision for doubtful accounts |
23 |
|
|
- |
|
|
- |
|
|
- |
|
|
23 |
|
|
- |
|
|
Accretion expense |
62 |
|
|
58 |
|
|
- |
|
|
- |
|
|
62 |
|
|
58 |
|
|
Retirement of assets |
320 |
|
|
60 |
|
|
- |
|
|
- |
|
|
320 |
|
|
60 |
|
|
Other
state and local taxes |
790 |
|
|
880 |
|
|
- |
|
|
- |
|
|
790 |
|
|
880 |
|
|
Non-cash deferred lease expense |
(2,221 |
) |
|
4,230 |
|
|
- |
|
|
- |
|
|
(2,221 |
) |
|
4,230 |
|
|
Unrealized (gain) loss on fair value of warrant |
(432 |
) |
|
(2,312 |
) |
|
- |
|
|
- |
|
|
(432 |
) |
|
(2,312 |
) |
|
Other
adjustments allowable under our Credit Agreement |
1,149 |
|
|
213 |
|
|
- |
|
|
- |
|
|
1,149 |
|
|
213 |
|
|
Adjusted EBITDA |
$ |
40,748 |
|
|
$ |
7,602 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
40,748 |
|
|
$ |
7,602 |
|
|
The following table reconciles
Consolidated Adjusted EBITDA to our operating cash flows for the
three and six months ended June 30, 2018, and 2017, and March 31,
2018:
|
Three Months
Ended |
|
Six Months Ended June 30, |
|
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
2018 |
|
2017 |
|
|
|
|
|
($ in thousands) |
|
Adjusted EBITDA |
$ |
23,362 |
|
|
$ |
17,386 |
|
|
$ |
7,534 |
|
|
$ |
40,748 |
|
|
$ |
7,602 |
|
|
Interest expense, net |
(5,722 |
) |
|
(5,964 |
) |
|
(3,975 |
) |
|
(11,686 |
) |
|
(6,659 |
) |
|
Income
tax expense |
(447 |
) |
|
(493 |
) |
|
(456 |
) |
|
(940 |
) |
|
(880 |
) |
|
Other
adjustments allowable under our Credit Agreement |
- |
|
|
(1,149 |
) |
|
- |
|
|
(1,149 |
) |
|
(213 |
) |
|
Cost
to retire assets |
- |
|
|
- |
|
|
19 |
|
|
- |
|
|
19 |
|
|
Non-cash deferred lease expense |
(355 |
) |
|
2,576 |
|
|
(2,329 |
) |
|
2,221 |
|
|
(4,230 |
) |
|
Change
in other operating assets and liabilities |
8,520 |
|
|
(1,612 |
) |
|
4,973 |
|
|
6,908 |
|
|
(2,812 |
) |
|
Cash
flows from operating activities: |
$ |
25,358 |
|
|
$ |
10,744 |
|
|
$ |
5,766 |
|
|
$ |
36,102 |
|
|
$ |
(7,173 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
$ |
(25,683 |
) |
|
$ |
(30,093 |
) |
|
$ |
(22,230 |
) |
|
$ |
(55,776 |
) |
|
$ |
(23,622 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities: |
$ |
(7,248 |
) |
|
$ |
22,309 |
|
|
$ |
14,554 |
|
|
$ |
15,061 |
|
|
$ |
30,980 |
|
|
We define Distributable Cash Flow
generally as net income plus (i) non-cash net interest
expense, (ii) depreciation, depletion and amortization
expense, (iii) non-cash charges, and (iv) selected losses
that are unusual or non-recurring; less (v) selected principal
repayments, (vi) selected gains that are unusual or
non-recurring, and (vii) maintenance capital
expenditures. We believe that the presentation of
Distributable Cash Flow in this report provides information useful
to investors in assessing our financial condition and results of
operations. In addition, our Board of Directors utilizes
reserves for future capital expenditures, compliance with law or
debt agreements, and to provide funds for distributions to
unitholders in respect to any one or more of the next four
quarters. However, our Distributable Cash Flow may not be
comparable to similarly-titled measures that other companies
use. Distributable Cash Flow does not reflect changes in
working capital balances. The following table (in thousands)
reconciles net income to Distributable Cash Flows:
|
|
Three Months Ended June 30, 2018 |
|
|
|
|
|
Net
income (loss) |
|
$ |
9,428 |
|
|
|
|
|
|
Add
(less) reconciling items: |
|
|
|
Add
depreciation, depletion and amortization expense |
|
5,355 |
|
|
Add
amortization of deferred financing costs |
|
1,014 |
|
|
Add
equity-based compensation, net |
|
426 |
|
|
Add
non-cash deferred lease expense |
|
355 |
|
|
Add
loss on disposal of assets |
|
318 |
|
|
Add
unrealized loss on fair value of warrants |
|
245 |
|
|
Add
income taxes accrued, net of payments |
|
79 |
|
|
Add
accretion expense |
|
31 |
|
|
Add
allowance for doubtful accounts |
|
20 |
|
|
Distributable cash flow |
|
$ |
17,271 |
|
|
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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: Emerge Energy Services LP via Globenewswire
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