THE
WOODLANDS, Texas, Aug. 9, 2022
/PRNewswire/ -- CSI Compressco LP ("CSI," or the
"Partnership") (NASDAQ: CCLP) today announced second quarter 2022
results.
Second Quarter 2022 Results:
- Total revenues were $84.5 million
compared to $76.5 million in the
second quarter 2021.
- Contract services revenue increased to $64.3 million in the second quarter 2022 compared
to $58.4 million in the second
quarter 2021.
- Net loss was $6.8 million
compared to a net loss of $9.6
million in the second quarter 2021.
- Adjusted EBITDA was $26.4 million
compared to $26.5 million in the
second quarter 2021.
- Compression fleet utilization increased to 82.8% compared to
76.9% in the second quarter 2021.
- Operating horsepower increased to 992,597 compared to 908,614
in the second quarter 2021.
- Distributable cash flow was $10.3
million compared to $10.1
million in the second quarter 2021.
- Distribution coverage ratio was 7.3x in the second quarter 2022
compared to 20.8x in the second quarter 2021.
- Second quarter of 2022 distribution of $0.01 per common unit will be paid on
August 12, 2022.
The operating results presented throughout this document include
the operating results of Spartan Treating (as defined in our 10-K
filed March 14, 2022) due to the
previously reported acquisition on November
10, 2021. As the Partnership and Spartan Treating were under
common control at the time of Spartan's acquisition of the
Partnership's general partner, the results of operations have been
combined for the Partnership and Spartan Treating from the date of
common control, which was January 29,
2021. As a result, operating results and certain financial
metrics for the second quarter 2021 vary from what we previously
reported.
Management Commentary
"During the second quarter of 2022, our revenues continued to
grow. We continued deploying our idle fleet and implemented
additional price increases. This increase in revenue was offset by
a significant increase in costs during the quarter, largely
associated with inflation and ongoing supply chain issues. The
primary cost increases were from fluids (lube oil and gasoline),
parts and labor. These three cost categories increased ranging from
10% to 15% quarter over quarter. These cost increases were largely
offset by our improvement in utilization and as a result, our
EBITDA is essentially flat quarter over quarter" commented
John Jackson, Chief Executive
Officer of CSI Compressco LP.
"As we look forward, it has been and continues to be difficult
to predict the impact of inflation on our business and our costs.
We continue to see strong demand for our products and services and
have a significant amount of contracted horsepower that will be
deployed in the second half of 2022. A significant portion of our
compression fleet is under term contracts at any given time.
As a result, we are raising prices as these units come off term and
are subject to price changes. We have visibility into the balance
of 2022 being very active and expect utilization to continue to
improve through the remainder of 2022. We expect fleet revenue to
continue to grow as the combination of price increases and
utilization continues to work its way through the fleet."
"Our incremental capital expenditure focus for the near term
will be to deploy our available fleet as efficiently as possible,
which includes converting existing units to electric motor-drive.
Lead times for key components for new build units such as engines,
frames and electric drive motors continue to lengthen, therefore,
capital decisions related to new build projects we make with our
customers today will generally not be in place until the second
quarter of 2023 or later. Our customers recognize this long lead
time environment and are in discussions with us related to their
2023 needs. We have committed capital for 2023 related to first
quarter projects and anticipate allocating additional capital for
projects related to the balance of 2023".
"We remain upbeat about the industry as we have seen a
significant rebound in activity over the last 12 months at CSI and
across the entire compression industry. We look forward to the
challenges and opportunities that lie ahead as we believe we have a
great group of assets and people that will perform well over the
coming months and years."
Net cash used in operating activities was $10.2 million in the second quarter compared to
net cash used in operating activities of $5.8 million in the second quarter of 2021.
Distributable cash flow in the second quarter was $10.3 million, resulting in a distribution
coverage ratio of 7.3x.
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, 2022 compared to the prior
quarter and the corresponding prior year quarter are presented in
the table below.
|
Three Months
Ended
|
|
|
|
|
|
Jun 30,
2022
|
|
Mar 31,
2022
|
|
Jun 30,
2021
|
|
Q2-2022 v
Q1-2022
|
|
Q2-2022 v
Q2-2021
|
|
(In Thousands, except
percentage changes)
|
Net loss
|
$
(6,828)
|
|
$
(6,570)
|
|
$
(9,620)
|
|
(4) %
|
|
29 %
|
Adjusted
EBITDA
|
$
26,425
|
|
$
26,885
|
|
$
26,483
|
|
(2) %
|
|
— %
|
Distributable cash
flow
|
$
10,269
|
|
$
11,770
|
|
$
10,087
|
|
(13) %
|
|
2 %
|
Net cash provided by
(used in) operating activities
|
$
(10,201)
|
|
$
11,770
|
|
$
(5,810)
|
|
— %
|
|
(76) %
|
Free cash
flow
|
$
(22,031)
|
|
$
5,835
|
|
$
(11,390)
|
|
— %
|
|
(93) %
|
As of June 30, 2022, total compressor fleet horsepower was
1,198,356 and fleet horsepower in service was 992,597 for an
overall fleet utilization rate of 82.8% (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 $8.4 million. At the end of the second quarter,
$73.6 million was outstanding on the
Partnership's credit facilities. Our debt also includes
$400.0 million of first lien secured
bonds due in 2025 and $172.7 million
of second lien secured bonds due in 2026. Net leverage ratio at the
end of the quarter was 6.1x.
As of June 30, 2022, our borrowing base availability under
our credit facilities was $17.9
million. Total liquidity at quarter-end was $26.3 million. In July
2022, we had significant collections from an international
customer which improved our liquidity position and will positively
impact our third quarter 2022 cash provided by operations. As of
August 5, 2022, our borrowing base
availability under our credit facilities totaled $26.8 million and total liquidity was
approximately $35.0 million. This
compares to total liquidity of $32.7
million at year end 2021.
Effective June 30, 2022, the
termination date of our Credit Agreement was extended from
June 29, 2023 to June 29, 2025. In addition, the required
reserve on our Credit Agreement was reduced from $5 million to $3.5 million.
Capital Expenditures - 2022 Expectations
We expect capital expenditures for 2022 to be between
$55.0 million and $65.0 million. These capital expenditures include
approximately $18.0 million and
$22.0 million of maintenance capital
expenditures, approximately $29.0
million and $33.0 million of
capital expenditures primarily associated with the expansion of our
contract services fleet, and $8.0
million and $10.0 million of
capital expenditures related to investments in technology,
primarily software and systems.
Second Quarter 2022 Cash Distribution on Common Units
On July 19, 2022, the board of
directors of our General Partner declared a cash distribution
attributable to the quarter ended June 30,
2022 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 12, 2022 to each of the holders of common
units of record as of the close of business on July 29, 2022. The distribution coverage ratio
for the second quarter of 2022 was 7.3x.
Conference Call
CSI will host a conference call to discuss second quarter
results today, August 9, 2022, at 10:30 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's website
at www.csicompressco.com. An audio replay of the
conference call will be available at 1-877-344-7529, conference
number 10169664, replay code 1454494, for one week following the
conference call and the archived webcast will be available through
CSI's website for thirty days following the conference call.
CSI Overview
CSI provides services including natural gas compression and
treating services. Natural gas compression equipment is used for
natural gas and oil production, gathering, artificial lift,
production enhancement, transmission, processing, and storage. We
also provide a variety of natural gas treating services. Our
compression business includes a fleet of approximately 4,800
compressor packages providing approximately 1.2 million in
aggregate horsepower, utilizing a full spectrum of low-, medium-,
and high-horsepower engines. Our treating fleet includes amine
units, gas coolers, and related equipment. Our aftermarket business
provides compressor package overhaul, repair, engineering and
design, reconfiguration and maintenance services, as well as the
sale of compressor package parts and components manufactured by
third-party suppliers. Our customers operate throughout many of the
onshore producing regions of the United
States, as well as in a number of international locations
including Mexico, Canada, Argentina, Egypt and Chile. CSI'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's
equipment and services and other statements regarding CSI'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. 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 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,
2022
|
|
Mar 31,
2022
|
|
Jun 30,
2021
|
|
Jun 30,
2022
|
|
Jun 30,
2021
|
|
(In Thousands, Except
per Unit Amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Contract
services
|
$
64,348
|
|
$
62,807
|
|
$
58,394
|
|
$
127,155
|
|
$
114,631
|
Aftermarket
services
|
16,213
|
|
12,868
|
|
14,918
|
|
29,081
|
|
25,952
|
Equipment
rentals
|
3,618
|
|
3,500
|
|
3,079
|
|
7,118
|
|
5,104
|
Equipment
sales
|
343
|
|
837
|
|
140
|
|
1,180
|
|
610
|
Total
revenues
|
$
84,522
|
|
$
80,012
|
|
$
76,531
|
|
$
164,534
|
|
$
146,297
|
Cost of revenues
(excluding depreciation and amortization expense):
|
|
|
|
|
|
|
|
|
|
Cost of contract
services
|
$
33,585
|
|
$
31,040
|
|
$
28,244
|
|
$
64,625
|
|
$
55,684
|
Cost of aftermarket
services
|
13,362
|
|
10,633
|
|
12,221
|
|
23,995
|
|
21,766
|
Cost of equipment
rentals
|
451
|
|
516
|
|
209
|
|
967
|
|
362
|
Cost of equipment
sales
|
165
|
|
452
|
|
29
|
|
617
|
|
346
|
Total cost of
revenues
|
$
47,563
|
|
$
42,641
|
|
$
40,703
|
|
$
90,204
|
|
$
78,158
|
Depreciation and
amortization
|
19,346
|
|
19,359
|
|
19,901
|
|
38,705
|
|
39,035
|
Selling, general, and
administrative expense
|
10,911
|
|
10,841
|
|
10,502
|
|
21,752
|
|
20,803
|
Interest expense,
net
|
12,556
|
|
12,381
|
|
13,632
|
|
24,937
|
|
27,340
|
Other (income) expense,
net
|
325
|
|
544
|
|
(226)
|
|
869
|
|
69
|
Loss before taxes and
discontinued operations
|
$
(6,179)
|
|
$
(5,754)
|
|
$
(7,981)
|
|
$
(11,933)
|
|
$
(19,108)
|
Provision for income
taxes
|
741
|
|
816
|
|
1,348
|
|
1,557
|
|
3,053
|
Loss from continuing
operations
|
$
(6,920)
|
|
$
(6,570)
|
|
$
(9,329)
|
|
$
(13,490)
|
|
$
(22,161)
|
Loss from discontinued
operations, net of taxes
|
$
92
|
|
—
|
|
(291)
|
|
92
|
|
(353)
|
Net loss
|
$
(6,828)
|
|
(6,570)
|
|
(9,620)
|
|
(13,398)
|
|
(22,514)
|
Net loss per basic and
diluted common unit
|
$
(0.05)
|
|
$
(0.05)
|
|
$
(0.20)
|
|
$
(0.09)
|
|
$
(0.47)
|
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,
2022, March 31, 2022 and
June 30, 2021:
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2022
|
|
Mar 31,
2022
|
|
Jun 30,
2021
|
|
Jun 30,
2022
|
|
Jun 30,
2021
|
|
(In Thousands, except
Ratios)
|
Net loss
|
$
(6,828)
|
|
$
(6,570)
|
|
$
(9,620)
|
|
$
(13,398)
|
|
$
(22,514)
|
Interest expense,
net
|
12,556
|
|
12,381
|
|
13,632
|
|
24,937
|
|
27,340
|
Provision for income
taxes
|
741
|
|
816
|
|
1,348
|
|
1,557
|
|
3,053
|
Depreciation and
amortization
|
19,346
|
|
19,359
|
|
19,901
|
|
38,705
|
|
39,035
|
Non-cash cost of
compressors sold
|
165
|
|
452
|
|
78
|
|
617
|
|
438
|
Equity
compensation
|
432
|
|
342
|
|
477
|
|
774
|
|
1,310
|
Prior year sales tax
accrual adjustment
|
—
|
|
—
|
|
367
|
|
—
|
|
367
|
Manufacturing engine
order cancellation charge
|
—
|
|
—
|
|
300
|
|
—
|
|
300
|
Severance
|
—
|
|
—
|
|
—
|
|
—
|
|
114
|
Provision for income
taxes, depreciation, amortization and impairments attributed to
discontinued operations
|
(92)
|
|
—
|
|
—
|
|
(92)
|
|
—
|
Transaction
Costs
|
105
|
|
105
|
|
—
|
|
210
|
|
308
|
Adjusted
EBITDA
|
$
26,425
|
|
$
26,885
|
|
$
26,483
|
|
$
53,310
|
|
$
49,751
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Current income tax
expense
|
724
|
|
778
|
|
1,254
|
|
1,502
|
|
2,000
|
Maintenance capital
expenditures
|
4,821
|
|
3,781
|
|
3,685
|
|
8,602
|
|
7,125
|
Interest
expense
|
12,556
|
|
12,381
|
|
13,632
|
|
24,937
|
|
27,340
|
Severance and
other
|
105
|
|
105
|
|
—
|
|
210
|
|
422
|
Plus:
|
|
|
|
|
|
|
|
|
|
Non-cash items included
in interest expense
|
2,050
|
|
1,930
|
|
2,175
|
|
3,980
|
|
4,320
|
Distributable cash
flow
|
$
10,269
|
|
$
11,770
|
|
$
10,087
|
|
$
22,039
|
|
$
17,184
|
|
|
|
|
|
|
|
|
|
|
Cash distribution
attributable to period
|
$
1,412
|
|
$
1,412
|
|
$
484
|
|
$
2,824
|
|
$
968
|
Distribution coverage
ratio
|
7.3x
|
|
8.3x
|
|
20.8 x
|
|
7.8x
|
|
17.8x
|
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, 2022, March 31, 2022 and June
30, 2021:
Results of
Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun
30,
2022
|
|
Mar 31,
2022
|
|
Jun 30,
2021
|
|
Jun 30,
2022
|
|
Jun 30,
2021
|
|
(In
Thousands)
|
Net cash provided by
(used in) operating activities
|
$
(10,201)
|
|
$
11,770
|
|
$
(5,810)
|
|
$
1,569
|
|
$
5,734
|
Capital expenditures,
net of sales proceeds
|
(11,830)
|
|
(5,935)
|
|
(5,580)
|
|
(17,765)
|
|
(9,988)
|
Free cash
flow
|
$
(22,031)
|
|
$
5,835
|
|
$
(11,390)
|
|
$
(16,196)
|
|
$
(4,254)
|
Schedule D – Reconciliation to Adjusted
EBITDA Margin (unaudited)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2022
|
|
Mar 31,
2022
|
|
Jun 30,
2021
|
|
Jun 30,
2022
|
|
Jun 30,
2021
|
Consolidated
|
(In Thousands, except
Margin %)
|
Revenue
|
$ 84,522
|
|
$ 80,012
|
|
$ 76,531
|
|
$
164,534
|
|
$
146,297
|
Loss before taxes and
discontinued operations
|
$
(6,179)
|
|
$
(5,754)
|
|
$
(7,981)
|
|
$ (11,933)
|
|
$ (19,108)
|
Adjusted loss margin
before taxes and discontinued operations
|
(7.3) %
|
|
(7.2) %
|
|
(10.4) %
|
|
(7.3) %
|
|
(13.1) %
|
Adjusted EBITDA
(Schedule B)
|
$ 26,425
|
|
$ 26,885
|
|
$ 26,483
|
|
$ 53,310
|
|
$ 49,751
|
Adjusted EBITDA
Margin
|
31.3 %
|
|
33.6 %
|
|
34.6 %
|
|
32.4 %
|
|
34.0 %
|
Schedule E – Reconciliation of Net Loss to Adjusted
EBITDA for Net Leverage Ratio Calculation (unaudited)
(in thousands, except ratios)
|
Twelve Months
Ended
|
|
Jun 30,
2022
|
|
|
Net loss
|
$
(41,270)
|
Interest expense,
net
|
52,389
|
Provision for income
taxes
|
3,597
|
Depreciation and
amortization
|
77,904
|
Non-cash cost of
compressors sold
|
3,546
|
Equity
Compensation
|
1,750
|
ERP Write
off
|
4,635
|
Transaction
costs
|
2,048
|
Reorganization
cost
|
754
|
Provision for income
taxes, depreciation, amortization and impairments attributed to
discontinued operations
|
164
|
Other
|
(137)
|
Adjusted
EBITDA
|
$
105,380
|
|
Debt
Schedule
|
Jun 30,
2022
|
7.50% First Lien
Notes
|
$
400,000
|
10.00%/10.75% Second
Lien Notes
|
172,717
|
Asset Based
Loan
|
73,575
|
Finance
Lease
|
7,241
|
Letters of
Credit
|
1,889
|
Cash on Hand
|
(8,364)
|
Net
Debt
|
$
647,058
|
|
|
Net Leverage Ratio
(Net Debt/Adjusted EBITDA for Net Leverage
Calculation)
|
6.1x
|
Schedule F – Balance Sheet
|
June 30,
2022
|
|
December 31,
2021
|
(in
thousands)
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
8,364
|
|
$
6,598
|
Trade accounts
receivable, net of allowances for doubtful accounts of $1,274 as of
June 30, 2022 and $1,223 as of December 31, 2021
|
67,206
|
|
53,520
|
Trade receivable -
affiliate
|
3,283
|
|
—
|
Inventories
|
43,358
|
|
33,271
|
Prepaid expenses and
other current assets
|
12,382
|
|
7,390
|
Total current
assets
|
134,593
|
|
100,779
|
Property, plant, and
equipment:
|
|
|
|
Land and
building
|
9,103
|
|
13,409
|
Compressors and
equipment
|
1,098,878
|
|
1,072,927
|
Vehicles
|
8,597
|
|
8,469
|
Construction in
progress
|
17,587
|
|
31,968
|
Total property, plant,
and equipment
|
1,134,165
|
|
1,126,773
|
Less accumulated
depreciation
|
(584,887)
|
|
(556,311)
|
Net property, plant,
and equipment
|
549,278
|
|
570,462
|
Other
assets:
|
|
|
|
Intangible assets, net
of accumulated amortization of $35,150 as of June 30, 2022 and
$33,672 as of December 31, 2021
|
20,617
|
|
22,095
|
Operating lease
right-of-use assets
|
28,933
|
|
25,898
|
Deferred tax
asset
|
5
|
|
5
|
Other assets
|
2,892
|
|
3,122
|
Total other
assets
|
52,447
|
|
51,120
|
Total assets
|
$
736,318
|
|
$
722,361
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
38,250
|
|
$
28,958
|
Accrued liabilities and
other
|
41,998
|
|
42,075
|
Current liabilities
associated with discontinued operations
|
81
|
|
262
|
Total current
liabilities
|
80,329
|
|
71,295
|
Other
liabilities:
|
|
|
|
Long-term debt,
net
|
644,942
|
|
631,141
|
Deferred tax
liabilities
|
893
|
|
819
|
Operating lease
liabilities
|
19,657
|
|
17,648
|
Other long-term
liabilities
|
5,168
|
|
299
|
Total other
liabilities
|
670,660
|
|
649,907
|
Commitments and
contingencies
|
|
|
|
Partners'
capital:
|
|
|
|
General partner
interest
|
(1,563)
|
|
(1,486)
|
Common units
(141,213,944 units issued and outstanding at June 30, 2022 and
140,386,811 units issued and outstanding at December 31,
2021)
|
1,381
|
|
17,049
|
Accumulated other
comprehensive income (loss)
|
(14,489)
|
|
(14,404)
|
Total partners'
capital
|
(14,671)
|
|
1,159
|
Total liabilities and
partners' capital
|
$
736,318
|
|
$
722,361
|
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SOURCE CSI Compressco LP