Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today
reported results for the third quarter of 2018.
Third Quarter 2018 Financial
Results
Revenue for the third quarter of 2018 was $232.4
million, up from $197.9 million in the third quarter of 2017. Net
income for the third quarter of 2018 was $10.0 million,
compared to a net loss of $12.7 million in the third
quarter of 2017. Gross margin for the third quarter of 2018 totaled
$113.3 million, compared to $87.4 million in the third quarter of
2017. Adjusted EBITDA (as defined below) was $89.5 million for the
third quarter of 2018, compared to $64.4 million in the third
quarter of 2017.
“Strong demand, continued price increases and
solid execution drove our results above the outlook we provided
during our second quarter call,” said Brad Childers, Archrock’s
President and Chief Executive Officer. “We grew our operating fleet
by 110,000 horsepower in the quarter, maintained attractive margins
and improved our utilization. Aftermarket services also
delivered revenue and margins ahead of our expectations due to
increased activity in multiple basins. Our strong execution drove a
further reduction in our leverage ratio while maintaining our
nearly 3-times dividend coverage.”
“The outlook for our business remains strong.
This strength is reflected in our record customer commitments for
contract compression horsepower that we expect to place into
service in several growth plays throughout 2019,” continued
Childers. “As an energy infrastructure company providing must-run
services, we are well-positioned to capture the strong market
momentum driving increasing production of natural gas in the U.S.,
including associated natural gas produced with oil.”
Segment Results
For the contract operations segment, revenue
totaled $169.5 million for the third quarter of 2018, reflecting an
increase of 10% compared to $153.5 million in the third quarter of
2017. Gross margin was $100.5 million, up $18.9 million or 23% from
the third quarter of 2017, reflecting a gross margin percentage of
59% compared to 53% in the prior year quarter. Total
operating horsepower at the end of the third quarter of 2018 was
3.5 million, up from 3.2 million in the prior year quarter,
reflecting an 8% increase. Utilization at the end of the third
quarter of 2018 was 88%, compared to 83% for the third quarter of
2017, reflecting operating fleet growth of over 260,000
horsepower.
For the aftermarket services segment, revenue
totaled $62.9 million for the third quarter of 2018, reflecting an
increase of 42% compared to $44.3 million in the third quarter of
2017. Gross margin was $12.8 million, up $7.0 million or 119% from
the third quarter of 2017, reflecting a gross margin percentage of
20%, compared to 13% in the prior year quarter.
Balance Sheet
Total consolidated debt as of September 30, 2018
was $1.52 billion, compared to $1.46 billion as of June 30, 2018.
The Company’s leverage ratio as of September 30, 2018 was 4.7x,
compared to 4.9x as of June 30, 2018. Our available liquidity as of
September 30, 2018 was $324.0 million, compared to $287.6 million
as of June 30, 2018.
Quarterly Dividend
Archrock’s Board of Directors recently declared
a quarterly dividend of $0.132 per share of common stock, or $0.528
per share on an annualized basis, unchanged sequentially and 10%
above the $0.12 per share paid in the same period a year ago.
Coverage in the third quarter of 2018 was 2.95x. The dividend will
be paid on November 14, 2018 to stockholders of record at the close
of business on November 7, 2018.
|
|
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
(in
thousands, except percentages, per share amounts and ratios) |
2018 |
|
2018 |
|
2017 |
|
|
|
|
|
|
Net income (loss) |
$ |
9,974 |
|
|
$ |
4,149 |
|
|
$ |
(12,683 |
) |
Net
income (loss) attributable to Archrock stockholders |
$ |
9,974 |
|
|
$ |
1,937 |
|
|
$ |
(10,235 |
) |
Net
income (loss) attributable to Archrock stockholders per share |
$ |
0.08 |
|
|
$ |
0.02 |
|
|
$ |
(0.15 |
) |
Adjusted
EBITDA |
$ |
89,466 |
|
|
$ |
84,694 |
|
|
$ |
64,407 |
|
|
|
|
|
|
|
Contract
operations revenue |
$ |
169,509 |
|
|
$ |
165,450 |
|
|
$ |
153,524 |
|
Contract
operations gross margin |
$ |
100,453 |
|
|
$ |
97,641 |
|
|
$ |
81,573 |
|
Contract
operations gross margin percentage |
59 |
% |
|
59 |
% |
|
53 |
% |
|
|
|
|
|
|
Aftermarket services revenue |
$ |
62,863 |
|
|
$ |
61,420 |
|
|
$ |
44,329 |
|
Aftermarket services gross margin |
$ |
12,820 |
|
|
$ |
10,627 |
|
|
$ |
5,843 |
|
Aftermarket services gross margin percentage |
20 |
% |
|
17 |
% |
|
13 |
% |
|
|
|
|
|
|
Selling,
general, and administrative |
$ |
26,298 |
|
|
$ |
26,649 |
|
|
$ |
29,108 |
|
|
|
|
|
|
|
Cash
available for dividend |
$ |
50,370 |
|
|
$ |
47,230 |
|
|
|
N/A |
(1) |
Cash
available for dividend coverage |
|
2.95 |
x |
|
|
2.76 |
x |
|
|
N/A |
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Total
available horsepower (at period end) |
3,937 |
|
|
3,881 |
|
|
3,866 |
|
Total
operating horsepower (at period end) |
3,465 |
|
|
3,354 |
|
|
3,204 |
|
Horsepower utilization spot (at period end) |
88 |
% |
|
86 |
% |
|
83 |
% |
_________________________ |
|
|
|
|
|
|
|
|
(1) Concurrent with the closing of the merger of
Archrock, Inc. and Archrock Partners, L.P., the definition of cash
available for dividend was changed. As such, historical periods are
not presented. |
|
Conference Call Details
Archrock will host a conference call on Thursday, November 1,
2018, to discuss their third quarter 2018 financial results. The
call will begin at 11:00 a.m. Eastern Time.
To listen to the call via a live webcast, please
visit Archrock’s website at www.archrock.com. The call will also be
available by dialing 1-888-517-2458 in the United States and Canada
or +1-847-413-3538 for international calls. Please call
approximately 15 minutes prior to the scheduled start time and
reference Archrock conference call number 7645 721#.
A replay of the conference call will be
available on Archrock’s website for approximately seven days. Also,
a replay may be accessed by dialing 1-888-843-7419 in the United
States and Canada, or +1-630-652-3042 for international calls. The
access code is 7645 721#.
Adjusted EBITDA, a non-GAAP measure, is defined
as net income (loss) excluding loss from discontinued operations,
net of tax, income taxes, interest expense, depreciation and
amortization, long-lived asset impairment, restatement and other
charges, restructuring and other charges, corporate relocation
costs, debt extinguishment loss, merger-related costs,
indemnification (income) expense, net, non-cash stock-based
compensation expense and other items. A reconciliation of adjusted
EBITDA to net income (loss), the most directly comparable GAAP
measure, appears below.
Gross margin, a non-GAAP measure, is defined as
total revenue less cost of sales (excluding depreciation and
amortization). Gross margin percentage is defined as gross margin
divided by revenue. A reconciliation of gross margin to net income
(loss), the most directly comparable GAAP measure, appears
below.
Cash available for dividend, a non-GAAP measure,
is defined as net income (loss) excluding income taxes,
interest expense, depreciation and amortization, long-lived asset
impairment, restatement and other charges, debt extinguishment
loss, merger-related costs, indemnification (income) expense, net
and non-cash stock-based compensation expense less maintenance
capital expenditures, other capital expenditures, cash taxes and
cash interest. Reconciliations of cash available for dividend to
net income (loss) and cash flows from operating activities, the
most directly comparable GAAP measures, appear below.
About Archrock
Archrock, Inc. (NYSE: AROC) is a pure play U.S.
natural gas contract compression services business and a leading
supplier of aftermarket services to customers that own compression
equipment in the United States. Archrock is headquartered in
Houston, Texas, operating in the major oil and gas producing
regions in the United States, with approximately 1,700 employees.
For more information, visit www.archrock.com.
Forward-Looking Statements
All statements in this release (and oral
statements made regarding the subjects of this release) other than
historical facts are forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of
uncertainties and factors that could cause actual results to differ
materially from such statements, many of which are outside the
control of Archrock, Inc. (“Archrock” or “AROC”). Forward-looking
information includes, but is not limited to statements regarding:
fundamentals of Archrock’s industry, including the attractiveness
of returns and valuation, stability of cash flows, demand dynamics
and overall outlook, and Archrock’s ability to realize the benefits
thereof; Archrock’s expectations regarding future economic and
market conditions and trends; Archrock’s operational and financial
strategies, including planned growth strategies, Archrock’s ability
to successfully effect those strategies and the expected results
therefrom; Archrock’s financial and operational outlook; demand and
growth opportunities for Archrock’s services; structural and
process improvement initiatives, the expected timing thereof,
Archrock’s ability to successfully effect those initiatives and the
expected results therefrom; the operational and financial synergies
provided by Archrock’s size; and statements regarding Archrock’s
dividend policy.
While Archrock believes that the assumptions
concerning future events are reasonable, it cautions that there are
inherent difficulties in predicting certain important factors that
could impact the future performance or results of their businesses.
The factors that could cause results to differ materially from
those indicated by such forward-looking statements include, but are
not limited to: changes in customer, employee or supplier
relationships; local, regional and national economic and financial
market conditions and the impact they may have on Archrock and its
customers; changes in tax laws; conditions in the oil and gas
industry, including a sustained decrease in the level of supply or
demand for oil or natural gas or a sustained decrease in the price
of oil or natural gas; changes in economic conditions in key
operating markets; the financial condition of Archrock’s customers;
the failure of any customer to perform its contractual obligations;
changes in safety, health, environmental and other regulations; the
effectiveness of Archrock’s control environment, including the
identification of additional control deficiencies; the results of
any reviews, investigations or other preceding by government
authorities; the results of any shareholder actions relating to
Archrock’s restatement of financial statements that may be filed;
the potential additional costs related to Archrock’s restatement,
cost sharing with Exterran Corporation and addressing any reviews,
investigation or other proceedings by government authorities or
shareholder actions; and with respect to Archrock, the performance
of Archrock Partners.
These forward-looking statements are also
affected by the risk factors, forward-looking statements and
challenges and uncertainties described in Archrock’s Annual Report
on Form 10-K for the year ended December 31, 2017, and those set
forth from time to time in Archrock’s filings with the Securities
and Exchange Commission, which are available at www.archrock.com.
Except as required by law, Archrock expressly disclaims any
intention or obligation to revise or update any forward-looking
statements whether as a result of new information, future events or
otherwise.
SOURCE: Archrock, Inc.
For information,
contact:
Paul Burkhart, Vice President
Finance281-836-8688investor.relations@archrock.com
|
|
ARCHROCK,
INC. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(in thousands, except per
share amounts) |
|
|
|
Three Months
Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2018 |
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
|
Contract operations |
$ |
169,509 |
|
|
$ |
165,450 |
|
|
$ |
153,524 |
|
Aftermarket services |
62,863 |
|
|
61,420 |
|
|
44,329 |
|
Total revenue |
232,372 |
|
|
226,870 |
|
|
197,853 |
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization): |
|
|
|
|
|
Contract operations |
69,056 |
|
|
67,809 |
|
|
71,951 |
|
Aftermarket services |
50,043 |
|
|
50,793 |
|
|
38,486 |
|
Total cost of sales (excluding depreciation and
amortization) |
119,099 |
|
|
118,602 |
|
|
110,437 |
|
Selling, general and administrative |
26,298 |
|
|
26,649 |
|
|
29,108 |
|
Depreciation and amortization |
43,779 |
|
|
43,331 |
|
|
47,463 |
|
Long-lived asset impairment |
6,660 |
|
|
6,953 |
|
|
7,105 |
|
Restatement and other charges |
396 |
|
|
(1,076 |
) |
|
566 |
|
Restructuring and other charges |
— |
|
|
— |
|
|
422 |
|
Interest expense |
23,518 |
|
|
23,337 |
|
|
22,892 |
|
Debt extinguishment loss |
— |
|
|
2,450 |
|
|
— |
|
Merger-related costs |
182 |
|
|
5,686 |
|
|
— |
|
Other income, net |
(660 |
) |
|
(1,644 |
) |
|
(2,716 |
) |
Income (loss) before income taxes |
13,100 |
|
|
2,582 |
|
|
(17,424 |
) |
Provision for (benefit from) income taxes |
3,126 |
|
|
(1,567 |
) |
|
(4,795 |
) |
Income (loss) from continuing operations |
9,974 |
|
|
4,149 |
|
|
(12,629 |
) |
Loss from discontinued operations, net of tax |
— |
|
|
— |
|
|
(54 |
) |
Net income (loss) |
9,974 |
|
|
4,149 |
|
|
(12,683 |
) |
Less: Net (income) loss attributable to the noncontrolling
interest |
— |
|
|
(2,212 |
) |
|
2,448 |
|
Net income (loss) attributable to Archrock stockholders |
$ |
9,974 |
|
|
$ |
1,937 |
|
|
$ |
(10,235 |
) |
|
|
|
|
|
|
Basic and diluted net income (loss) per common share: (1) |
|
|
|
|
|
Net income (loss) attributable to Archrock common stockholders |
$ |
0.08 |
|
|
$ |
0.02 |
|
|
$ |
(0.15 |
) |
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
Basic |
127,842 |
|
|
111,296 |
|
|
69,644 |
|
Diluted |
127,955 |
|
|
111,402 |
|
|
69,644 |
|
|
|
|
|
|
|
Dividends declared and paid per common share |
$ |
0.132 |
|
|
$ |
0.120 |
|
|
$ |
0.120 |
|
_________________________ |
|
|
|
|
|
|
|
|
|
|
|
(1) Basic and diluted net income (loss)
attributable to Archrock common stockholders per common share was
computed using the two-class method to determine the net income
(loss) per share for each class of common stock and participating
security (restricted stock and stock-settled restricted stock units
that have nonforfeitable rights to receive dividends or dividend
equivalents) according to dividends declared and participation
rights in undistributed earnings. Accordingly, we have excluded net
income attributable to participating securities from our
calculation of basic and diluted net income (loss) attributable to
Archrock common stockholders per common share. |
|
|
|
ARCHROCK,
INC.UNAUDITED SUPPLEMENTAL
INFORMATION(in thousands, except percentages, per
share amounts and ratios) |
|
|
|
Three Months
Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2018 |
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
|
Contract operations |
$ |
169,509 |
|
|
$ |
165,450 |
|
|
$ |
153,524 |
|
Aftermarket services |
62,863 |
|
|
61,420 |
|
|
44,329 |
|
Total revenue |
$ |
232,372 |
|
|
$ |
226,870 |
|
|
$ |
197,853 |
|
|
|
|
|
|
|
Gross margin (1): |
|
|
|
|
|
Contract operations |
$ |
100,453 |
|
|
$ |
97,641 |
|
|
$ |
81,573 |
|
Aftermarket services |
12,820 |
|
|
10,627 |
|
|
5,843 |
|
Total gross margin |
$ |
113,273 |
|
|
$ |
108,268 |
|
|
$ |
87,416 |
|
|
|
|
|
|
|
Gross margin percentage: |
|
|
|
|
|
Contract operations |
59 |
% |
|
59 |
% |
|
53 |
% |
Aftermarket services |
20 |
% |
|
17 |
% |
|
13 |
% |
Total gross margin percentage |
49 |
% |
|
48 |
% |
|
44 |
% |
|
|
|
|
|
|
Selling, general and administrative |
$ |
26,298 |
|
|
$ |
26,649 |
|
|
$ |
29,108 |
|
% of revenue |
11 |
% |
|
12 |
% |
|
15 |
% |
|
|
|
|
|
|
Adjusted EBITDA (1) |
$ |
89,466 |
|
|
$ |
84,694 |
|
|
$ |
64,407 |
|
% of revenue |
39 |
% |
|
37 |
% |
|
33 |
% |
|
|
|
|
|
|
Capital expenditures |
$ |
109,011 |
|
|
$ |
62,200 |
|
|
$ |
52,839 |
|
Less: Proceeds from sale of property, plant and equipment |
(4,868 |
) |
|
(4,348 |
) |
|
(13,792 |
) |
Net capital expenditures |
$ |
104,143 |
|
|
$ |
57,852 |
|
|
$ |
39,047 |
|
|
|
|
|
|
|
Total available horsepower (at period end) (2) |
3,937 |
|
|
3,881 |
|
|
3,866 |
|
Total operating horsepower (at period end) (3) |
3,465 |
|
|
3,354 |
|
|
3,204 |
|
Average operating horsepower |
3,406 |
|
|
3,342 |
|
|
3,166 |
|
Horsepower utilization: |
|
|
|
|
|
Spot (at period end) |
88 |
% |
|
86 |
% |
|
83 |
% |
Average |
87 |
% |
|
86 |
% |
|
82 |
% |
|
|
|
|
|
|
Dividend declared for the period per share (4) |
$ |
0.132 |
|
|
$ |
0.132 |
|
|
|
N/A |
|
Dividend declared for the period to all shareholders (4) |
$ |
17,094 |
|
|
$ |
17,116 |
|
|
|
N/A |
|
Cash available for dividend coverage (4) (5) |
|
2.95 |
x |
|
|
2.76 |
x |
|
|
N/A |
|
_________________________ |
|
|
|
|
|
(1) Management believes gross margin and
adjusted EBITDA provide useful information to investors because
these non-GAAP measures, when viewed with our GAAP results and
accompanying reconciliations, provide a more complete understanding
of our performance than GAAP results alone. Management uses these
non-GAAP measures as supplemental measures to review current period
operating performance, comparability measures and performance
measures for period-to-period comparisons. |
(2) Defined as idle and operating horsepower.
New compressor units completed by a third party manufacturer that
have been delivered to us are included in the fleet. |
(3) Defined as horsepower that is operating
under contract and horsepower that is idle but under contract and
generating revenue such as standby revenue. |
(4) Concurrent with the closing of the merger
of Archrock, Inc. and Archrock Partners, L.P., the definition of
cash available for dividend was changed. As such, historical
periods are not presented. |
(5) Defined as cash available for dividend
divided by dividends declared. |
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
2018 |
|
2018 |
|
2017 |
Balance Sheet |
|
|
|
|
|
Debt - Parent level |
$ |
— |
|
|
$ |
— |
|
|
$ |
75,500 |
|
Debt - Archrock Partners, L.P. |
1,515,679 |
|
|
1,458,863 |
|
|
1,317,447 |
|
Total consolidated debt (1) |
$ |
1,515,679 |
|
|
$ |
1,458,863 |
|
|
$ |
1,392,947 |
|
|
|
|
|
|
|
Archrock stockholders’ equity |
$ |
827,798 |
|
|
$ |
830,725 |
|
|
$ |
735,329 |
|
_________________________ |
|
|
|
|
|
|
|
|
|
|
|
(1) Carrying values are shown net of
unamortized debt discounts and unamortized deferred financing
costs. |
|
|
|
ARCHROCK,
INC.UNAUDITED SUPPLEMENTAL
INFORMATION(in thousands, except per share
amounts) |
|
|
|
Three Months
Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2018 |
|
2018 |
|
2017 |
Reconciliation of Net Income (Loss) to Adjusted EBITDA and
Gross Margin |
|
|
|
|
|
Net income (loss) |
$ |
9,974 |
|
|
$ |
4,149 |
|
|
$ |
(12,683 |
) |
Less: Loss from discontinued operations, net of tax |
— |
|
|
— |
|
|
(54 |
) |
Income (loss) from continuing operations |
9,974 |
|
|
4,149 |
|
|
(12,629 |
) |
Depreciation and amortization |
43,779 |
|
|
43,331 |
|
|
47,463 |
|
Long-lived asset impairment |
6,660 |
|
|
6,953 |
|
|
7,105 |
|
Restatement and other charges |
396 |
|
|
(1,076 |
) |
|
566 |
|
Restructuring and other charges |
— |
|
|
— |
|
|
422 |
|
Corporate office relocation costs (1) |
— |
|
|
— |
|
|
1,318 |
|
Interest expense |
23,518 |
|
|
23,337 |
|
|
22,892 |
|
Debt extinguishment loss |
— |
|
|
2,450 |
|
|
— |
|
Merger-related costs |
182 |
|
|
5,686 |
|
|
— |
|
Stock-based compensation expense |
1,804 |
|
|
1,969 |
|
|
2,042 |
|
Indemnification (income) expense, net |
27 |
|
|
(538 |
) |
|
23 |
|
Provision for (benefit from) income taxes |
3,126 |
|
|
(1,567 |
) |
|
(4,795 |
) |
Adjusted EBITDA (2) |
89,466 |
|
|
84,694 |
|
|
64,407 |
|
Selling, general and administrative |
26,298 |
|
|
26,649 |
|
|
29,108 |
|
Corporate office relocation costs (1) |
— |
|
|
— |
|
|
(1,318 |
) |
Stock-based compensation expense |
(1,804 |
) |
|
(1,969 |
) |
|
(2,042 |
) |
Indemnification income (expense), net |
(27 |
) |
|
538 |
|
|
(23 |
) |
Other income, net |
(660 |
) |
|
(1,644 |
) |
|
(2,716 |
) |
Gross margin (2) |
$ |
113,273 |
|
|
$ |
108,268 |
|
|
$ |
87,416 |
|
_________________________ |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes charges associated with the
relocation of our corporate headquarters in the third quarter of
2017, which are included in selling, general and administrative in
our condensed consolidated statement of operations. |
(2) Management believes adjusted EBITDA and
gross margin provide useful information to investors because these
non-GAAP measures, when viewed with our GAAP results and
accompanying reconciliations, provide a more complete understanding
of our performance than GAAP results alone. Management uses these
non-GAAP measures as supplemental measures to review current period
operating performance, comparability measures and performance
measures for period-to-period comparisons. |
|
|
ARCHROCK,
INC.UNAUDITED SUPPLEMENTAL
INFORMATION(in thousands) |
|
|
|
Three Months
Ended |
|
September 30, |
|
June 30, |
|
2018 |
|
2018 |
Reconciliation of Net Income to Adjusted EBITDA and Cash
Available for Dividend |
|
|
|
Net income |
$ |
9,974 |
|
|
$ |
4,149 |
|
Depreciation and amortization |
43,779 |
|
|
43,331 |
|
Long-lived asset impairment |
6,660 |
|
|
6,953 |
|
Restatement and other charges |
396 |
|
|
(1,076 |
) |
Interest expense |
23,518 |
|
|
23,337 |
|
Debt extinguishment loss |
— |
|
|
2,450 |
|
Merger-related costs |
182 |
|
|
5,686 |
|
Stock-based compensation expense |
1,804 |
|
|
1,969 |
|
Indemnification (income) expense, net |
27 |
|
|
(538 |
) |
Provision for (benefit from) income taxes |
3,126 |
|
|
(1,567 |
) |
Adjusted EBITDA (1) |
89,466 |
|
|
84,694 |
|
Less: Maintenance capital expenditures |
(12,553 |
) |
|
(13,121 |
) |
Less: Other capital expenditures |
(4,797 |
) |
|
(4,479 |
) |
Less: Cash tax (payment) refund |
(78 |
) |
|
1,439 |
|
Less: Cash interest |
(21,668 |
) |
|
(21,303 |
) |
Cash available for dividend (2) |
$ |
50,370 |
|
|
$ |
47,230 |
|
_________________________ |
|
|
|
|
|
|
|
(1) Management believes adjusted EBITDA
provides useful information to investors because this non-GAAP
measure, when viewed with our GAAP results and accompanying
reconciliations, provides a more complete understanding of our
performance than GAAP results alone. Management uses this
non-GAAP measure as a supplemental measure to review current period
operating performance, comparability measures and performance
measures for period-to-period comparisons. |
(2) Management uses cash available for
dividend as a supplemental performance measure. Using this metric,
management can quickly compute the coverage ratio of estimated cash
flows to planned dividends. |
|
|
|
ARCHROCK,
INC.UNAUDITED SUPPLEMENTAL
INFORMATION(in thousands) |
|
|
|
Three Months
Ended |
|
September 30, |
|
June 30, |
|
2018 |
|
2018 |
Reconciliation of Cash Flows from Operations to Cash
Available for Dividend |
|
|
|
Cash flows from operating activities |
$ |
65,490 |
|
|
$ |
42,760 |
|
Inventory write-downs |
(167 |
) |
|
(553 |
) |
Provision for doubtful accounts |
(636 |
) |
|
(288 |
) |
Gain on sale of property, plant and equipment |
706 |
|
|
993 |
|
Current income tax provision |
285 |
|
|
55 |
|
Cash tax (payment) refund |
(78 |
) |
|
1,439 |
|
Amortization of contract costs |
(4,051 |
) |
|
(3,397 |
) |
Non-cash deferred revenue |
6,146 |
|
|
6,104 |
|
Restatement and other charges |
396 |
|
|
(1,076 |
) |
Merger-related costs |
182 |
|
|
5,686 |
|
Indemnification (income) expense, net |
27 |
|
|
(538 |
) |
Changes in assets and liabilities |
(726 |
) |
|
13,647 |
|
Maintenance capital expenditures |
(12,553 |
) |
|
(13,121 |
) |
Other capital expenditures |
(4,797 |
) |
|
(4,479 |
) |
Payments for settlement of interest rate swaps that include
financing elements |
146 |
|
|
(2 |
) |
Cash available for dividend (1) |
$ |
50,370 |
|
|
$ |
47,230 |
|
_________________________ |
|
|
|
|
|
|
|
(1) Management uses cash available for
dividend as a supplemental performance measure. Using this metric,
management can quickly compute the coverage ratio of estimated cash
flows to planned dividends. |
|
|
|
|
|
|
|
|
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