Highlights of the first quarter 2016 results include:
Three Months Ended |
2016 vs. 2015 |
|||||||||
March 31, 2016 |
March 31, 2015 |
|||||||||
(In Thousands, Except Ratios, Per unit Data, and Percentages) |
||||||||||
Adjusted EBITDA(1) |
$ |
25,442 |
$ |
32,080 |
(21) |
% |
||||
Distributable cash flow(1) |
$ |
14,232 |
$ |
21,392 |
(33) |
% |
||||
Cash distribution per unit annualized |
$ |
1.51 |
$ |
1.98 |
(24) |
% |
||||
Distribution coverage ratio(1) |
1.11x |
1.25x |
— |
% |
||||||
Fleet capital expenditures |
$ |
436 |
$ |
37,158 |
(99) |
% |
||||
Free cash flow(1) |
$ |
13,742 |
$ |
(4,677) |
394 |
% |
(1) |
Non-GAAP financial measures reconciled to the nearest GAAP number on Schedules B and C. |
Consolidated revenues for the quarter ended
As of
Unaudited results of operations for the three month period ended
"In February we launched our planned project to migrate the business to TETRA's Oracle JD Edwards EnterpriseOne and Sales Force integrated applications suites. Our management and subject matter experts have engaged with our IT group and external resources to define the needs and to build the processes that will allow for a robust, efficient, and easily auditable operating system that we believe will provide us opportunities to further streamline operations and reduce costs.
"We previously announced 2016 capital expenditure plans between
As of
Conference Call
First Quarter 2016 Distribution
On
CSI Compressco Overview
Forward Looking Statements
This press release contains "forward-looking statements" and information based on our beliefs and those of our general partner,
Schedule A - Income Statement |
|||||||
Results of operations (unaudited) |
|||||||
Three Months Ended |
|||||||
2016 |
2015 |
||||||
(In Thousands, Except per Unit Amounts) |
|||||||
Revenues |
|||||||
Compression and related services |
$ |
62,411 |
$ |
75,288 |
|||
Aftermarket services |
8,587 |
14,253 |
|||||
Equipment sales |
10,694 |
13,348 |
|||||
Total revenues |
81,692 |
102,889 |
|||||
Cost of revenues (excluding depreciation and amortization expense): |
|||||||
Cost of compression and related services |
31,805 |
36,978 |
|||||
Cost of aftermarket services |
6,618 |
11,879 |
|||||
Cost of equipment sales |
9,953 |
11,250 |
|||||
Total cost of revenues |
48,376 |
60,107 |
|||||
Depreciation and amortization |
18,452 |
19,988 |
|||||
Impairments of long-lived assets |
7,866 |
— |
|||||
Selling, general, and administrative expense |
10,230 |
11,249 |
|||||
Goodwill impairment |
92,334 |
— |
|||||
Interest expense, net |
8,802 |
8,602 |
|||||
Other expense, net |
288 |
543 |
|||||
Income (loss) before income tax provision |
(104,656) |
2,400 |
|||||
Provision (benefit) for income taxes |
693 |
592 |
|||||
Net income (loss) |
$ |
(105,349) |
$ |
1,808 |
|||
Net income (loss) per diluted common unit |
$ |
(3.11) |
$ |
0.04 |
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:
The Partnership defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and before non-cash charges for impairments and non-cash costs of compressors sold, and excluding equity compensation, transaction costs, 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, plus amortization of finance costs.
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 cash from operations 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, 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
The following table reconciles net income (loss) to Adjusted EBITDA, distributable cash flow and distribution coverage ratio for the three month periods ended
Schedule B – Reconciliation of Net Income to Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio |
|||||||
Results of Operations (unaudited) |
Three Months Ended |
||||||
March 31, 2016 |
March 31, 2015 |
||||||
(In Thousands, Except Ratios) |
|||||||
Net income (loss) |
$ |
(105,349) |
$ |
1,808 |
|||
Interest expense, net |
8,802 |
8,602 |
|||||
Provision for income taxes |
693 |
592 |
|||||
Depreciation and amortization |
18,452 |
19,988 |
|||||
Impairments of long-lived assets |
7,866 |
— |
|||||
Goodwill impairment |
92,334 |
— |
|||||
Non-cash cost of compressors sold |
1,765 |
206 |
|||||
Equity compensation |
636 |
477 |
|||||
CSI acquisition costs |
— |
208 |
|||||
Severance |
243 |
199 |
|||||
Adjusted EBITDA |
$ |
25,442 |
$ |
32,080 |
|||
Less: |
|||||||
Current income tax expense |
$ |
548 |
$ |
412 |
|||
Maintenance capital expenditures |
2,313 |
$ |
2,171 |
||||
Interest expense |
8,802 |
$ |
8,602 |
||||
Severance |
243 |
$ |
199 |
||||
Plus: |
|||||||
Amortization of finance costs included in interest expense |
$ |
696 |
$ |
696 |
|||
Distributable cash flow |
$ |
14,232 |
$ |
21,392 |
|||
Cash distribution attributable to period |
$ |
12,784 |
$ |
17,051 |
|||
Distribution coverage ratio |
1.11x |
1.25x |
The following table reconciles cash from operations to free cash flow for the three month periods ended
Schedule C – Reconciliation of Cash From Operations to Free Cash Flow |
|||||||
Results of Operations (unaudited) |
Three Months Ended |
||||||
March 31, 2016 |
March 31, 2015 |
||||||
(In Thousands) |
|||||||
Cash from operations |
$ |
15,095 |
$ |
32,481 |
|||
Capital expenditures, net of sales proceeds |
(1,353) |
(37,158) |
|||||
Free cash flow |
$ |
13,742 |
$ |
(4,677) |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/csi-compressco-lp-announces-first-quarter-2016-results-300264156.html
SOURCE
CSI Compressco LP, Midland, Texas, Timothy A. Knox, 432/563-1170, Fax: 432/561-9732, www.compressco.com