THE WOODLANDS, Texas,
July 30, 2021 /PRNewswire/ -- CSI
Compressco LP ("CSI Compressco," "CCLP" or the "Partnership")
(NASDAQ: CCLP) today announced second quarter 2021 results.
Second Quarter 2021 Summary:
- Total revenues for the second quarter 2021 were $69.8 million, compared to $65.7 million in the first quarter 2021.
- Compression and related services revenue increased sequentially
to $55.3 million in the second
quarter 2021 compared to $54.2
million in the first quarter 2021.
- Net loss was $12.1 million,
including $0.7 million in
non-recurring charges compared to a net loss of $14.5 million in the first quarter 2021 which
included $0.4 million in
non-recurring charges.
- Adjusted EBITDA was $23.1 million
compared to $21.1 million in the
first quarter 2021. The second quarter of 2021 Adjusted EBITDA
included a $0.1 million benefit from
the sale of used equipment compared to a $0.5 million benefit in the first quarter
2021.
- Distributable cash flow was $6.5
million compared to $4.3
million in the first quarter 2021.
- Distribution coverage ratio was 13.3x in the second quarter
2021 compared to 8.9x in the first quarter 2021.
- Second quarter of 2021 distribution of $0.01 per common unit will be paid on
August 13, 2021.
Second Quarter 2021
"In the second quarter of 2021, we saw business activity
starting to increase which is reflected in our results. Revenues,
Adjusted EBITDA and fleet utilization all improved sequentially
compared to the first quarter of 2021. We continue to see
this trend improve in actual signed contracts for additional
compression as well as additional forward looking quotes and
activity. While we cannot predict with certainty the rest of the
year's performance, the trends continue to give us optimism that
2021 will improve as the year progresses. Our customers appear more
confident in their projected activity for the rest of the year and
are starting to execute around those plans. We have received a
number of signed orders in the second quarter both in idle
equipment going back to work and some orders for new large
horsepower units. These contracted units will begin deploying in
the third quarter and continue through the first quarter of 2022.
The overall impact of this customer activity, if it continues, is
that in the second half of 2021 both the contract compression
business and the aftermarket services business should continue to
see improving utilization and margins" commented John Jackson, Chief Executive Officer of CSI
Compressco.
"We remain excited about the future of the Partnership and the
industry overall. While the improving market trends exist, we
recognize that risk around results may persist during 2021, but we
are optimistic about both the near-term activity levels and
long-term future of the compression industry. Capital efficiency,
cost management and customer service are areas we continue to
aggressively pursue as these are areas we can control. We expect to
deliver the highest levels of service and performance to our
customers as we have the people and assets in place that allow us
to execute efficiently in any environment. We believe the natural
gas business has a bright future and is a critical component of the
energy infrastructure both today and in the transition in the
energy markets in the years ahead."
Cash used in operating activities was $(9.7) million in the second quarter, compared to
cash provided by operating activities of $9.6 million in the first quarter. Distributable
cash flow in the second quarter was $6.5
million, resulting in a distribution coverage ratio of
13.3x.
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-E 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
June 30, 2021 compared to the prior
quarter and the corresponding prior year quarter are presented in
the table below.
|
Three Months
Ended
|
|
|
|
|
|
Jun 30,
2021
|
|
Mar 31,
2021
|
|
Jun 30,
2020
|
|
Q2-2021 v
Q1-2021
|
|
Q2-2021 v
Q2-2020
|
|
(In Thousands, except
percentage changes)
|
Net loss
|
$
|
(12,085)
|
|
|
$
|
(14,465)
|
|
|
$
|
(24,578)
|
|
|
16
|
%
|
|
51
|
%
|
Adjusted
EBITDA
|
$
|
23,085
|
|
|
$
|
21,085
|
|
|
$
|
27,047
|
|
|
9
|
%
|
|
(15)
|
%
|
Distributable cash
flow
|
$
|
6,486
|
|
|
$
|
4,321
|
|
|
$
|
8,405
|
|
|
50
|
%
|
|
(23)
|
%
|
Net cash provided by
(used in) operating activities
|
$
|
(9,686)
|
|
|
$
|
9,614
|
|
|
$
|
4,823
|
|
|
(101)
|
%
|
|
(101)
|
%
|
Free cash
flow
|
$
|
(15,056)
|
|
|
$
|
5,135
|
|
|
$
|
3,698
|
|
|
(393)
|
%
|
|
(507)
|
%
|
As of June 30, 2021, total compressor fleet horsepower was
1,181,485 and fleet horsepower in service was 908,614 for an
overall fleet utilization rate of 76.9% (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 second quarter was $8.3 million. No amounts were drawn nor
outstanding on the Partnership's asset-based loan at the end of the
second quarter. Our debt consists of $80.7
million of unsecured bonds due in August 2022, $400.0
million of first lien secured bonds due in 2025 and
$159.9 million of second lien secured
bonds due in 2026. Net leverage ratio at the end of the quarter was
6.5X.
Capital Expenditures - 2021 Expectations
We expect capital expenditures for 2021 to be between
$45.0 million and $50.0 million. The forecast includes between
$21.0 million and $23.0 million for capital growth. Maintenance
capital expenditures are expected to be between $20.0 million and $22.0
million. Investments in the Helix digitally enhanced
compression system and other technologies are expected to be
between $4.0 million and $5.0 million.
Second Quarter 2021 Cash Distribution on Common Units
On July 19, 2021, the board of
directors of our General Partner declared a cash distribution
attributable to the quarter ended June 30,
2021 of $0.01 per outstanding
common unit. This distribution equates to a distribution of
$0.04 per outstanding common unit on
an annualized basis. This distribution will be paid on August 13, 2021 to each of the holders of common
units of record as of the close of business on July 30, 2021. The distribution coverage ratio
for the second quarter of 2021 was 13.3x.
Conference Call
CSI Compressco will host a conference call to discuss second
quarter results today, July 30, 2021, at 11:00 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
website at www.csicompressco.com. An audio replay of the
conference call will be available at 1-877-344-7529, conference
number 10158212, 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's general partner is
owned 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, gain on extinguishment of debt, write-off of
unamortized financing costs, and excluding, 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
|
|
Six Months
Ended
|
|
Jun 30,
2021
|
|
Mar 31,
2021
|
|
Jun 30,
2020
|
|
Jun 30,
2021
|
|
Jun 30,
2020
|
|
(In Thousands, Except
per Unit Amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Compression and
related services
|
$
|
55,329
|
|
|
$
|
54,239
|
|
|
$
|
56,284
|
|
|
$
|
109,568
|
|
|
$
|
122,049
|
|
Aftermarket
services
|
14,289
|
|
|
11,001
|
|
|
15,737
|
|
|
25,290
|
|
|
33,707
|
|
Equipment
sales
|
140
|
|
|
470
|
|
|
749
|
|
|
610
|
|
|
2,449
|
|
Total
revenues
|
$
|
69,758
|
|
|
$
|
65,710
|
|
|
$
|
72,770
|
|
|
$
|
135,468
|
|
|
$
|
158,205
|
|
Cost of revenues
(excluding depreciation and amortization expense):
|
|
|
|
|
|
|
|
|
|
Cost of compression
and related services
|
$
|
26,597
|
|
|
$
|
26,426
|
|
|
$
|
25,395
|
|
|
$
|
53,023
|
|
|
$
|
57,003
|
|
Cost of aftermarket
services
|
11,959
|
|
|
9,517
|
|
|
13,433
|
|
|
21,476
|
|
|
29,678
|
|
Cost of equipment
sales
|
29
|
|
|
317
|
|
|
704
|
|
|
346
|
|
|
2,587
|
|
Total cost of
revenues
|
$
|
38,585
|
|
|
$
|
36,260
|
|
|
$
|
39,532
|
|
|
$
|
74,845
|
|
|
$
|
89,268
|
|
Depreciation and
amortization
|
18,997
|
|
|
18,530
|
|
|
19,880
|
|
|
37,527
|
|
|
39,550
|
|
Impairments of
long-lived assets
|
—
|
|
|
—
|
|
|
8,874
|
|
|
—
|
|
|
8,874
|
|
Insurance
recoveries
|
—
|
|
|
—
|
|
|
(517)
|
|
|
—
|
|
|
(517)
|
|
Selling, general, and
administrative expense
|
9,116
|
|
|
9,594
|
|
|
9,241
|
|
|
18,710
|
|
|
18,331
|
|
Interest expense,
net
|
13,932
|
|
|
13,898
|
|
|
13,580
|
|
|
27,830
|
|
|
26,749
|
|
Other (income)
expense, net
|
(97)
|
|
|
324
|
|
|
4,403
|
|
|
227
|
|
|
4,843
|
|
Loss before taxes and
discontinued operations
|
$
|
(10,775)
|
|
|
$
|
(12,896)
|
|
|
$
|
(22,223)
|
|
|
$
|
(23,671)
|
|
|
$
|
(28,893)
|
|
Provision for income
taxes
|
1,019
|
|
|
1,507
|
|
|
961
|
|
|
2,526
|
|
|
1,157
|
|
Loss from continuing
operations
|
$
|
(11,794)
|
|
|
$
|
(14,403)
|
|
|
$
|
(23,184)
|
|
|
$
|
(26,197)
|
|
|
$
|
(30,050)
|
|
Loss from
discontinued operations, net of taxes
|
$
|
(291)
|
|
|
(62)
|
|
|
(1,394)
|
|
|
(353)
|
|
|
(8,158)
|
|
Net loss
|
$
|
(12,085)
|
|
|
(14,465)
|
|
|
(24,578)
|
|
|
(26,550)
|
|
|
(38,208)
|
|
Net loss per basic
and diluted common unit
|
$
|
(0.25)
|
|
|
$
|
(0.30)
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.55)
|
|
|
$
|
(0.79)
|
|
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 and six month periods ended June 30,
2021, March 31, 2021 and
June 30, 2020:
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2021
|
|
Mar 31,
2021
|
|
Jun 30,
2020
|
|
Jun 30,
2021
|
|
Jun 30,
2020
|
|
(In Thousands, except
Ratios)
|
Net loss
|
$
|
(12,085)
|
|
|
$
|
(14,465)
|
|
|
$
|
(24,578)
|
|
|
$
|
(26,550)
|
|
|
$
|
(38,208)
|
|
Interest expense,
net
|
13,932
|
|
13,898
|
|
13,580
|
|
27,830
|
|
|
26,749
|
|
Provision for income
taxes
|
1,019
|
|
1,507
|
|
961
|
|
2,526
|
|
|
1,157
|
|
Depreciation and
amortization
|
18,997
|
|
18,530
|
|
19,880
|
|
37,527
|
|
|
39,550
|
|
Impairments of fixed
assets and inventory
|
—
|
|
—
|
|
8,874
|
|
—
|
|
|
8,874
|
|
Non-cash cost of
compressors sold
|
78
|
|
360
|
|
631
|
|
438
|
|
|
2,440
|
|
Equity
compensation
|
477
|
|
833
|
|
488
|
|
1,310
|
|
|
812
|
|
Bond exchange
expenses
|
—
|
|
—
|
|
4,755
|
|
—
|
|
|
4,755
|
|
Prior year sales tax
accrual adjustment
|
367
|
|
—
|
|
—
|
|
367
|
|
|
—
|
|
Manufacturing engine
order cancellation charge
|
300
|
|
—
|
|
—
|
|
300
|
|
|
—
|
|
Severance
|
—
|
|
114
|
|
1,084
|
|
114
|
|
|
1,356
|
|
Provision for income
taxes, depreciation, amortization and impairments attributed to
discontinued operations
|
—
|
|
—
|
|
395
|
|
—
|
|
|
6,020
|
|
Other
|
—
|
|
308
|
|
977
|
|
308
|
|
|
1,304
|
|
Adjusted
EBITDA
|
$
|
23,085
|
|
|
$
|
21,085
|
|
|
$
|
27,047
|
|
|
$
|
44,170
|
|
|
$
|
54,809
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Current income tax
expense
|
417
|
|
|
1,102
|
|
|
615
|
|
|
1,519
|
|
|
819
|
|
Maintenance capital
expenditures
|
3,685
|
|
|
3,440
|
|
|
3,951
|
|
|
7,125
|
|
|
10,441
|
|
Interest
expense
|
13,932
|
|
|
13,898
|
|
|
13,580
|
|
|
27,830
|
|
|
26,749
|
|
Severance and
other
|
667
|
|
|
422
|
|
|
2,061
|
|
|
1,089
|
|
|
2,660
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
Non-cash items
included in interest expense
|
2,102
|
|
|
2,098
|
|
|
1,565
|
|
|
4,200
|
|
|
2,994
|
|
Distributable cash
flow
|
$
|
6,486
|
|
|
$
|
4,321
|
|
|
$
|
8,405
|
|
|
$
|
10,807
|
|
|
$
|
17,134
|
|
|
|
|
|
|
|
|
|
|
|
Cash distribution
attributable to period
|
$
|
487
|
|
|
$
|
484
|
|
|
$
|
480
|
|
|
$
|
971
|
|
|
$
|
958
|
|
Distribution coverage
ratio
|
13.3x
|
|
8.9x
|
|
17.5
|
x
|
|
11.1x
|
|
17.9x
|
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 and six month periods
ended June 30, 2021, March 31, 2021 and June
30, 2020:
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2021
|
|
Mar 31,
2021
|
|
Jun 30,
2020
|
|
Jun 30,
2021
|
|
Jun 30,
2020
|
|
(In
Thousands)
|
Net cash provided by
(used in) operating activities
|
$
|
(9,686)
|
|
|
$
|
9,614
|
|
|
$
|
4,823
|
|
|
$
|
(72)
|
|
|
$
|
18,180
|
|
Capital expenditures,
net of sales proceeds
|
(5,370)
|
|
|
(4,479)
|
|
|
(1,125)
|
|
|
(9,849)
|
|
|
(7,608)
|
|
Free cash
flow
|
$
|
(15,056)
|
|
|
$
|
5,135
|
|
|
$
|
3,698
|
|
|
$
|
(9,921)
|
|
|
$
|
10,572
|
|
Schedule D – Reconciliation to Adjusted
EBITDA Margin (unaudited)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2021
|
|
Mar 31,
2021
|
|
Jun 30,
2020
|
|
Jun 30,
2021
|
|
Jun 30,
2020
|
Consolidated
|
(In Thousands, except
Margin %)
|
Revenue
|
$
|
69,758
|
|
|
$
|
65,710
|
|
|
$
|
72,770
|
|
|
$
|
135,468
|
|
|
$
|
158,205
|
|
Loss before taxes and
discontinued operations
|
$
|
(10,775)
|
|
|
$
|
(12,896)
|
|
|
$
|
(22,223)
|
|
|
$
|
(23,671)
|
|
|
$
|
(28,893)
|
|
Adjusted loss margin
before taxes and discontinued operations
|
(15.4)
|
%
|
|
(19.6)
|
%
|
|
(30.5)
|
%
|
|
(17.5)
|
%
|
|
(18.3)
|
%
|
Adjusted EBITDA
(Schedule B)
|
$
|
23,085
|
|
|
$
|
21,085
|
|
|
$
|
27,047
|
|
|
$
|
44,170
|
|
|
$
|
54,809
|
|
Adjusted EBITDA
Margin
|
33.1
|
%
|
|
32.1
|
%
|
|
37.2
|
%
|
|
32.6
|
%
|
|
34.6
|
%
|
Schedule E – Reconciliation of Net Loss to Adjusted
EBITDA for Net Leverage Ratio Calculation (unaudited)
(in thousands, except
ratios)
|
|
|
Twelve
Months
Ended
|
|
Jun 30,
2021
|
|
|
Net loss
|
$
|
(62,182)
|
|
Interest expense,
net
|
55,549
|
|
Provision for income
taxes
|
4,494
|
|
Depreciation and
amortization
|
78,035
|
|
Impairments and other
charges
|
6,493
|
|
Non-cash cost of
compressors sold
|
10,810
|
|
Equity
Compensation
|
1,887
|
|
Financing
Fees
|
137
|
|
Prior year sales tax
accrual adjustment
|
367
|
|
Manufacturing engine
order cancellation charge
|
300
|
|
Severance
|
792
|
|
Other
|
1,442
|
|
Adjusted
EBITDA
|
$
|
98,124
|
|
|
|
EBITDA adjustments to
comply with Credit Agreement
|
(598)
|
|
Adjusted EBITDA for
Net Leverage Calculation
|
$
|
97,526
|
|
|
Debt
Schedule
|
Jun 30,
2021
|
7.25% Senior
Notes
|
80,722
|
|
7.50% First Lien
Notes
|
400,000
|
|
10.00%/10.75% Second
Lien Notes
|
159,919
|
|
Asset Based
Loan
|
—
|
|
Letters of
Credit
|
2,114
|
|
Cash on
Hand
|
(8,305)
|
|
Net
Debt
|
$
|
634,450
|
|
|
|
Net Leverage Ratio
(Net Debt/Adjusted EBITDA for Net Leverage
Calculation)
|
6.5x
|
Schedule F – Balance Sheet
|
June 30,
2021
|
|
December 31,
2020
|
(in
thousands)
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
8,305
|
|
|
$
|
16,577
|
|
Trade accounts
receivable, net of allowances for doubtful accounts of $1,040 as of
June 30, 2021 and $1,333 as of December 31, 2020
|
52,173
|
|
|
43,837
|
|
Inventories
|
32,418
|
|
|
31,188
|
|
Prepaid expenses and
other current assets
|
7,556
|
|
|
5,184
|
|
Current assets
associated with discontinued operations
|
1
|
|
|
39
|
|
Total current
assets
|
100,453
|
|
|
96,825
|
|
Property, plant, and
equipment:
|
|
|
|
Land and
building
|
13,246
|
|
|
13,259
|
|
Compressors and
equipment
|
989,475
|
|
|
975,375
|
|
Vehicles
|
7,611
|
|
|
7,692
|
|
Construction in
progress
|
8,407
|
|
|
12,763
|
|
Total property, plant,
and equipment
|
1,018,739
|
|
|
1,009,089
|
|
Less accumulated
depreciation
|
(490,212)
|
|
|
(457,688)
|
|
Net property, plant,
and equipment
|
528,527
|
|
|
551,401
|
|
Other
assets:
|
|
|
|
Intangible assets, net
of accumulated amortization of $32,192 as of June 30, 2021 and
$30,711 as of December 31, 2020
|
23,576
|
|
|
25,057
|
|
Operating lease
right-of-use assets
|
28,730
|
|
|
32,637
|
|
Deferred tax
asset
|
10
|
|
|
10
|
|
Other assets
|
3,710
|
|
|
4,036
|
|
Total other
assets
|
56,026
|
|
|
61,740
|
|
Total
assets
|
$
|
685,006
|
|
|
$
|
709,966
|
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
20,382
|
|
|
$
|
19,766
|
|
Accrued liabilities and
other
|
36,705
|
|
|
36,070
|
|
Amounts payable to
affiliates
|
3,274
|
|
|
3,234
|
|
Current liabilities
associated with discontinued operations
|
164
|
|
|
345
|
|
Total current
liabilities
|
60,525
|
|
|
59,415
|
|
Other
liabilities:
|
|
|
|
Long-term debt,
net
|
641,471
|
|
|
638,631
|
|
Deferred tax
liabilities
|
2,535
|
|
|
1,478
|
|
Long-term affiliate
payable
|
11,296
|
|
|
—
|
|
Operating lease
liabilities
|
20,529
|
|
|
24,059
|
|
Other long-term
liabilities
|
558
|
|
|
11,716
|
|
Total other
liabilities
|
676,389
|
|
|
675,884
|
|
Commitments and
contingencies
|
|
|
|
Partners'
capital:
|
|
|
|
General partner
interest
|
(1,269)
|
|
|
(885)
|
|
Common units
(47,971,240 units issued and outstanding at June 30, 2021 and
47,352,291 units issued and outstanding at December 31,
2020)
|
(36,384)
|
|
|
(10,055)
|
|
Accumulated other
comprehensive income (loss)
|
(14,255)
|
|
|
(14,393)
|
|
Total partners'
capital
|
(51,908)
|
|
|
(25,333)
|
|
Total liabilities and
partners' capital
|
$
|
685,006
|
|
|
$
|
709,966
|
|
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SOURCE CSI Compressco LP