Fort Worth, Texas
- November 6, 2018 - Emerge Energy Services LP ("Emerge
Energy") today announced third quarter 2018 financial and operating
results.
Highlights
· Total
volumes sold decreased 32% sequentially to 1,073 thousand tons in
the third quarter.
· Net
loss of $3.9 million and diluted earnings per unit of $(0.12) for
the third quarter.
·
Adjusted EBITDA decreased to $7.9 million for the third
quarter.
Overview
Emerge Energy reported a net loss
of $3.9 million, or $(0.12) per diluted unit, for the three months
ended September 30, 2018, compared to net income of $5.0 million,
or $0.16 per diluted unit for the three months ended September 30,
2017. For the three months ended June 30, 2018, net
income was $9.4 million, or $0.30 per diluted unit.
Net revenues were $63.0 million
for the three months ended September 30, 2018, compared to $103.2
million for the three months ended September 30, 2017,
and $101.8 million for the three months ended
June 30, 2018. Net revenues decreased due to lower
northern white volumes sold, shift in mix away from higher priced
terminal sales and a decline in northern white prices.
Volumes sold through our terminals totaled 23% of volume in the
third quarter of 2018, compared to 45% in the third quarter of
2017, and 26% in the second quarter of 2018.
Adjusted EBITDA was $7.9 million
for the three months ended September 30, 2018, compared to $18.7
million for the three months ended September 30, 2017,
and $23.4 million for the three months ended
June 30, 2018.
Emerge Energy generated
Distributable Cash Flow of $1.7 million for the three months ended
September 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 September 30, 2018, as the board of directors of its
general partner did not approve a cash distribution.
"We experienced disappointing
results in the third quarter driven by the short-term challenging
market conditions and a delay in ramping up our new San Antonio
plant," noted Ted W. Beneski, Chairman of the board of directors of
the general partner of Emerge Energy. "The slowdown in oil
and gas completion activity has been well documented by notable
industry participants. Leading oilfield services companies
were surprised by the speed in which many of their Exploration and
Production customers began to pull back completion programs
starting in August. As a result, the market conditions for
frac sand changed rapidly in the second half of the third
quarter. The market quickly turned from a state of short
supply in the first half of the year to oversupply in the last two
months as the demand pullback coincided with an increase in
production from new in-basin mines across West Texas, South Texas,
and the Mid-Continent regions. Consequently, the entire
industry has experienced pricing pressure, primarily on northern
white product. We are responding to these market conditions
by reducing costs and idling over 50% of our northern white
capacity."
"Despite the limited visibility
for fourth quarter activity, our customers are signaling that 2019
should be a high growth year as budgets are reset and the midstream
issues in West Texas are resolved. Customer sentiment for
next year is upbeat, giving us confidence that the current demand
softness is a temporary state."
"We remain excited about our two
new in-basin plants - San Antonio, Texas and Kingfisher,
Oklahoma. We made progress in the third quarter ramping up
San Antonio, as sequential frac sand production doubled in the
third quarter. However, weather and contractor delays
impacted the final portion of construction. We now expect the
plant to achieve the full four million tons per year run-rate at
the end of November. We also expect to significantly reduce
our production costs in the coming months when our new wet plant
phases out purchasing third party wet sand and our new permanent
utilities displace higher cost temporary electricity and natural
gas sources. We are over 60% contracted for the plant's full
capacity and are projecting to achieve 80% by year end. For
our Oklahoma project, we broke ground in September, and we expect
to be producing sand as early as January next year if the
permitting process goes smoothly. We have worked hard to
reposition Emerge Energy into a balanced producer of both northern
white and in-basin frac sand, and we are confident that we will
reap the benefits of this repositioning in 2019."
"Due to the short-term market
softness and lower in-basin production, we are lowering our full
year 2018 Adjusted EBITDA guidance to a range of $50 million to $65
million. We are currently engaged in negotiations with
several customers to resolve contracted volume shortfalls on our
take or pay contracts for northern white product. Enforcing
these minimum volume contracts will help to mitigate the
anticipated market weakness in the fourth quarter."
Conference Call
Emerge Energy will host its 2018
third quarter results conference call on Tuesday, November 6, 2018
at 3:00 p.m. CT. Callers may listen to the live presentation, which
will be followed by a question and answer segment, by dialing (855)
850-4275 or (720) 634-2898 and entering pass code 1475479. An
audio webcast of the call will be available at www.emergelp.com
within the Investor Relations portion of the website under the
Webcasts & Presentations section. A replay will be
available by audio webcast and teleconference for seven days
following the conclusion of the call. The replay teleconference
will be available by dialing (855) 859-2056 or (404) 537-3406 and
the reservation number 1475479.
Operating Results
The following table summarizes
Emerge Energy's operating results for the three and nine months
ended September 30, 2018, and 2017, and three months ended June 30,
2018:
|
Three Months
Ended |
|
Nine Months
Ended September 30, |
|
|
September 30, 2018 |
|
June 30, 2018 |
|
September 30, 2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
Frac
sand revenues |
$ |
61,597 |
|
|
$ |
100,788 |
|
|
$ |
101,795 |
|
|
$ |
268,356 |
|
|
$ |
258,055 |
|
|
Non-frac sand revenues |
1,364 |
|
|
1,054 |
|
|
1,420 |
|
|
3,197 |
|
|
3,106 |
|
|
Total
revenues |
62,961 |
|
|
101,842 |
|
|
103,215 |
|
|
271,553 |
|
|
261,161 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Cost
of goods sold (excluding depreciation, depletion and
amortization) |
52,337 |
|
|
72,650 |
|
|
80,239 |
|
|
205,229 |
|
|
223,978 |
|
|
Depreciation, depletion and amortization |
5,316 |
|
|
5,355 |
|
|
6,078 |
|
|
15,532 |
|
|
16,409 |
|
|
Selling, general and administrative expenses |
3,693 |
|
|
7,390 |
|
|
7,302 |
|
|
19,654 |
|
|
20,030 |
|
|
Contract and project terminations |
- |
|
|
- |
|
|
- |
|
|
1,689 |
|
|
- |
|
|
Total
operating expenses |
61,346 |
|
|
85,395 |
|
|
93,619 |
|
|
242,104 |
|
|
260,417 |
|
|
Operating income (loss) |
1,615 |
|
|
16,447 |
|
|
9,596 |
|
|
29,449 |
|
|
744 |
|
|
Other
expense (income): |
|
|
- |
|
|
- |
|
|
|
|
|
|
Interest expense, net |
6,907 |
|
|
6,736 |
|
|
5,073 |
|
|
24,135 |
|
|
13,353 |
|
|
Other |
(1,472 |
) |
|
230 |
|
|
(901 |
) |
|
(1,930 |
) |
|
(3,218 |
) |
|
Total
other expense |
5,435 |
|
|
6,966 |
|
|
4,172 |
|
|
22,205 |
|
|
10,135 |
|
|
Income
(loss) from continuing operations before provision for income
taxes |
(3,820 |
) |
|
9,481 |
|
|
5,424 |
|
|
7,244 |
|
|
(9,391 |
) |
|
Provision (benefit) for income taxes |
33 |
|
|
53 |
|
|
(58 |
) |
|
183 |
|
|
(58 |
) |
|
Net
income (loss) from continuing operations |
(3,853 |
) |
|
9,428 |
|
|
5,482 |
|
|
7,061 |
|
|
(9,333 |
) |
|
Income
(loss) from discontinued operations, net of taxes |
- |
|
|
- |
|
|
(468 |
) |
|
- |
|
|
(3,125 |
) |
|
Net
income (loss) |
$ |
(3,853 |
) |
|
$ |
9,428 |
|
|
$ |
5,014 |
|
|
$ |
7,061 |
|
|
$ |
(12,458 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a) |
$ |
7,927 |
|
|
$ |
23,362 |
|
|
$ |
18,743 |
|
|
$ |
48,675 |
|
|
$ |
26,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
of frac sand sold (tons in thousands) |
985 |
|
1,519 |
|
1,361 |
|
3,941 |
|
3,890 |
|
Volume
of non-frac sand sold (tons in thousands) |
88 |
|
70 |
|
119 |
|
224 |
|
233 |
|
Total
volume of sand sold (tons in thousands) |
1,073 |
|
1,589 |
|
1,480 |
|
4,165 |
|
4,123 |
|
|
|
|
|
|
|
|
|
|
|
|
Terminal sand sales (tons in thousands) |
247 |
|
415 |
|
671 |
|
1,249 |
|
1,803 |
|
|
|
|
|
|
|
|
|
|
|
|
Volume
of frac sand produced by plant (tons in thousands): |
|
|
|
|
|
|
|
|
|
|
Arland, Wisconsin facility |
161 |
|
493 |
|
463 |
|
1,061 |
|
1,339 |
|
Barron, Wisconsin facility |
353 |
|
509 |
|
497 |
|
1,360 |
|
1,547 |
|
New
Auburn, Wisconsin facility |
210 |
|
310 |
|
346 |
|
865 |
|
965 |
|
San
Antonio, Texas facility (b) |
223 |
|
109 |
|
16 |
|
|
391 |
|
16 |
|
|
Kosse,
Texas facility |
95 |
|
108 |
|
53 |
|
302 |
|
165 |
|
Total
volume of frac sand produced |
1,042 |
|
1,529 |
|
1,375 |
|
3,979 |
|
4,032 |
|
(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) decreased $13.3
million for the third quarter of 2018, compared to the second
quarter of 2018, mainly due to a 32% decrease in volumes sold and
lower prices for northern white sand. Volumes sold decreased
mainly due to a slow down in well completion activity along with an
increase in production from competitors' new in-basin mines, which
led to pricing pressures, primarily on northern white sand.
Volumes sold through our terminals totaled 23% of volume in the
third quarter of 2018, compared to 26% in the second quarter of
2018.
Adjusted EBITDA declined $15.4
million for the third quarter of 2018, compared to the second
quarter of 2018, mainly due to decreased volumes, lower sand prices
in the third quarter, and unabsorbed fixed costs for idled
railcars.
Net income (loss) decreased $8.9
million and Adjusted EBITDA declined $10.8 million for the third
quarter of 2018, compared to same quarter in 2017, mainly due to a
decrease in total volumes sold and a shift in mix between direct
FOB plant sales and terminal sand sales. Volumes sold through
our terminals totaled 23% of volume in the third quarter of 2018,
compared to 45% in the third quarter of 2017. This was offset
by lower selling, general and administrative expenses due to
reduced incentive compensation accruals.
Discontinued operations
During the three months ended
September 30, 2017, we recorded a non-cash charge of $0.5 million
related to the August 2016 sale of the Fuel business.
Capital Expenditures
For the three months ended
September 30, 2018, Emerge Energy's capital expenditures totaled
$8.3 million.
About Emerge Energy Services
LP
Emerge Energy Services LP (NYSE:
EMES) is a growth-oriented limited partnership engaged in the
businesses of mining, producing, and distributing silica sand, a
key input for the hydraulic fracturing of oil and natural gas
wells. Emerge Energy operates its Sand business through its
subsidiary Superior Silica Sands LLC. Emerge Energy also
processed transmix, distributed refined motor fuels, operated bulk
motor fuel storage terminals, and provided complementary fuel
services through its fuel division which was sold on August 31,
2016.
Forward-Looking
Statements
This release contains certain
statements that are "forward-looking statements." These statements
can be identified by the use of forward-looking terminology
including "may," "believe," "will," "expect," "anticipate," or
"estimate." These forward-looking statements involve risks and
uncertainties, and there can be no assurance that actual results
will not differ materially from those expected by management of
Emerge Energy Services LP. When considering these
forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in Emerge Energy's Annual
Report on Form 10-K filed with the SEC. The risk factors and
other factors noted in the Annual Report could cause actual results
to differ materially from those contained in any forward-looking
statement. Except as required by law, Emerge Energy Services
LP does not undertake any obligation to update or revise such
forward-looking statements to reflect events or circumstances that
occur after the date hereof.
PRESS CONTACT
Investor Relations
(817) 618-4020
EMERGE ENERGY
SERVICES LP
CONSOLIDATED STATEMENTS OF
OPERATIONS
($ in thousands except per unit data)
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenues |
$ |
62,961 |
|
|
$ |
103,215 |
|
|
$ |
271,553 |
|
|
$ |
261,161 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Cost
of goods sold (excluding depreciation, depletion and
amortization) |
52,337 |
|
|
80,239 |
|
|
205,229 |
|
|
223,978 |
|
|
Depreciation, depletion and amortization |
5,316 |
|
|
6,078 |
|
|
15,532 |
|
|
16,409 |
|
|
Selling, general and administrative expenses |
3,693 |
|
|
7,302 |
|
|
19,654 |
|
|
20,030 |
|
|
Contract and project terminations |
- |
|
|
- |
|
|
1,689 |
|
|
- |
|
|
Total
operating expenses |
61,346 |
|
|
93,619 |
|
|
242,104 |
|
|
260,417 |
|
|
Operating income (loss) |
1,615 |
|
|
9,596 |
|
|
29,449 |
|
|
744 |
|
|
Other
expense (income): |
|
|
|
|
|
|
|
|
Interest expense, net |
6,907 |
|
|
5,073 |
|
|
24,135 |
|
|
13,353 |
|
|
Other |
(1,472 |
) |
|
(901 |
) |
|
(1,930 |
) |
|
(3,218 |
) |
|
Total
other expense |
5,435 |
|
|
4,172 |
|
|
22,205 |
|
|
10,135 |
|
|
Income
(loss) from continuing operations before provision for income
taxes |
(3,820 |
) |
|
5,424 |
|
|
7,244 |
|
|
(9,391 |
) |
|
Provision (benefit) for income taxes |
33 |
|
|
(58 |
) |
|
183 |
|
|
(58 |
) |
|
Net
income (loss) from continuing operations |
(3,853 |
) |
|
5,482 |
|
|
7,061 |
|
|
(9,333 |
) |
|
Income
(loss) from discontinued operations, net of taxes |
- |
|
|
(468 |
) |
|
- |
|
|
(3,125 |
) |
|
Net
income (loss) |
$ |
(3,853 |
) |
|
$ |
5,014 |
|
|
$ |
7,061 |
|
|
$ |
(12,458 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common unit |
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
Earnings (loss) per common unit from continuing operations |
$ |
(0.12 |
) |
|
$ |
0.19 |
|
|
$ |
0.23 |
|
|
$ |
(0.31 |
) |
|
Earnings (loss) per common unit from discontinued operations |
- |
|
|
(0.02 |
) |
|
- |
|
|
(0.10 |
) |
|
Basic
earnings (loss) per common unit |
$ |
(0.12 |
) |
|
$ |
0.17 |
|
|
$ |
0.23 |
|
|
$ |
(0.41 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
Earnings (loss) per common unit from continuing operations |
$ |
(0.12 |
) |
|
$ |
0.18 |
|
|
$ |
0.23 |
|
|
$ |
(0.42 |
) |
|
Earnings (loss) per common unit from discontinued operations |
- |
|
|
(0.02 |
) |
|
- |
|
|
(0.10 |
) |
|
Diluted earnings (loss) per common unit |
$ |
(0.12 |
) |
|
$ |
0.16 |
|
|
$ |
0.23 |
|
|
$ |
(0.52 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common units outstanding - basic |
31,034,186 |
|
|
30,270,572 |
|
|
31,233,523 |
|
|
30,120,216 |
|
|
Weighted average number of common units outstanding - diluted |
31,034,186 |
|
|
30,400,584 |
|
|
31,371,152 |
|
|
30,183,091 |
|
|
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 September 30, 2018, June 30, 2018, and September 30,
2017:
|
Continuing |
|
Discontinued |
|
Consolidated |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30, |
|
June 30, 2018 |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
Net
income (loss) |
$ |
(3,853 |
) |
|
$ |
5,482 |
|
|
$ |
- |
|
|
$ |
(468 |
) |
|
$ |
(3,853 |
) |
|
$ |
5,014 |
|
|
$ |
9,428 |
|
|
Interest expense, net |
6,907 |
|
|
5,073 |
|
|
- |
|
|
- |
|
|
6,907 |
|
|
5,073 |
|
|
6,736 |
|
|
Depreciation, depletion and amortization |
5,316 |
|
|
6,078 |
|
|
- |
|
|
- |
|
|
5,316 |
|
|
6,078 |
|
|
5,355 |
|
|
Provision (benefit) for income taxes |
33 |
|
|
(58 |
) |
|
- |
|
|
- |
|
|
33 |
|
|
(58 |
) |
|
53 |
|
|
EBITDA |
8,403 |
|
|
16,575 |
|
|
- |
|
|
(468 |
) |
|
8,403 |
|
|
16,107 |
|
|
21,572 |
|
|
Equity-based compensation expense |
364 |
|
|
343 |
|
|
- |
|
|
- |
|
|
364 |
|
|
343 |
|
|
426 |
|
|
Reduction in escrow receivable |
- |
|
|
- |
|
|
- |
|
|
468 |
|
|
- |
|
|
468 |
|
|
- |
|
|
Provision for doubtful accounts |
287 |
|
|
- |
|
|
- |
|
|
- |
|
|
287 |
|
|
- |
|
|
20 |
|
|
Accretion expense |
30 |
|
|
25 |
|
|
- |
|
|
- |
|
|
30 |
|
|
25 |
|
|
31 |
|
|
Retirement of assets |
123 |
|
|
- |
|
|
- |
|
|
- |
|
|
123 |
|
|
- |
|
|
318 |
|
|
Other
state and local taxes |
395 |
|
|
477 |
|
|
- |
|
|
- |
|
|
395 |
|
|
477 |
|
|
395 |
|
|
Non-cash deferred lease expense |
(208 |
) |
|
2,223 |
|
|
- |
|
|
- |
|
|
(208 |
) |
|
2,223 |
|
|
355 |
|
|
Unrealized loss (gain) on fair value of warrant |
(1,467 |
) |
|
(900 |
) |
|
- |
|
|
- |
|
|
(1,467 |
) |
|
(900 |
) |
|
245 |
|
|
Adjusted EBITDA |
$ |
7,927 |
|
|
$ |
18,743 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,927 |
|
|
$ |
18,743 |
|
|
$ |
23,362 |
|
|
The following table present a reconciliation of
net income (loss) to Adjusted EBITDA for the nine months ended
September 30, 2018, and 2017:
|
Continuing |
|
Discontinued |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
Net
income (loss) |
$ |
7,061 |
|
|
$ |
(9,333 |
) |
|
$ |
- |
|
|
$ |
(3,125 |
) |
|
$ |
7,061 |
|
|
$ |
(12,458 |
) |
|
Interest expense, net |
24,135 |
|
|
13,353 |
|
|
- |
|
|
- |
|
|
24,135 |
|
|
13,353 |
|
|
Depreciation, depletion and amortization |
15,532 |
|
|
16,409 |
|
|
- |
|
|
- |
|
|
15,532 |
|
|
16,409 |
|
|
Provision (benefit) for income taxes |
183 |
|
|
(58 |
) |
|
- |
|
|
- |
|
|
183 |
|
|
(58 |
) |
|
EBITDA |
46,911 |
|
|
20,371 |
|
|
- |
|
|
(3,125 |
) |
|
46,911 |
|
|
17,246 |
|
|
Equity-based compensation expense |
1,224 |
|
|
1,020 |
|
|
- |
|
|
- |
|
|
1,224 |
|
|
1,020 |
|
|
Contract and project terminations |
1,689 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,689 |
|
|
- |
|
|
Reduction in escrow receivable |
- |
|
|
- |
|
|
- |
|
|
3,125 |
|
|
- |
|
|
3,125 |
|
|
Provision for doubtful accounts |
310 |
|
|
- |
|
|
- |
|
|
- |
|
|
310 |
|
|
- |
|
|
Accretion expense |
92 |
|
|
83 |
|
|
- |
|
|
- |
|
|
92 |
|
|
83 |
|
|
Retirement of assets |
443 |
|
|
60 |
|
|
- |
|
|
- |
|
|
443 |
|
|
60 |
|
|
Other
state and local taxes |
1,185 |
|
|
1,357 |
|
|
- |
|
|
- |
|
|
1,185 |
|
|
1,357 |
|
|
Non-cash deferred lease expense |
(2,429 |
) |
|
6,453 |
|
|
- |
|
|
- |
|
|
(2,429 |
) |
|
6,453 |
|
|
Unrealized (gain) loss on fair value of warrant |
(1,899 |
) |
|
(3,212 |
) |
|
- |
|
|
- |
|
|
(1,899 |
) |
|
(3,212 |
) |
|
Other
adjustments allowable under our Credit Agreement |
1,149 |
|
|
213 |
|
|
- |
|
|
- |
|
|
1,149 |
|
|
213 |
|
|
Adjusted EBITDA |
$ |
48,675 |
|
|
$ |
26,345 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
48,675 |
|
|
$ |
26,345 |
|
|
The following table reconciles
Consolidated Adjusted EBITDA to our operating cash flows for the
three and nine months ended September 30, 2018, and 2017, and June
30, 2018:
|
Three Months
Ended |
|
Nine Months
Ended September 30, |
|
|
September 30, 2018 |
|
June 30, 2018 |
|
September 30, 2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
Adjusted EBITDA |
$ |
7,927 |
|
|
$ |
23,362 |
|
|
$ |
18,743 |
|
|
$ |
48,675 |
|
|
$ |
26,345 |
|
|
Interest expense, net |
(5,852 |
) |
|
(5,722 |
) |
|
(4,169 |
) |
|
(17,538 |
) |
|
(10,828 |
) |
|
Income
tax expense |
(429 |
) |
|
(447 |
) |
|
(419 |
) |
|
(1,369 |
) |
|
(1,299 |
) |
|
Other
adjustments allowable under our Credit Agreement |
- |
|
|
- |
|
|
- |
|
|
(1,149 |
) |
|
(213 |
) |
|
Cost
to retire assets |
(19 |
) |
|
- |
|
|
- |
|
|
(19 |
) |
|
19 |
|
|
Non-cash deferred lease expense |
208 |
|
|
(355 |
) |
|
(2,223 |
) |
|
2,429 |
|
|
(6,453 |
) |
|
Change
in other operating assets and liabilities |
10,453 |
|
|
8,520 |
|
|
(18,646 |
) |
|
17,361 |
|
|
(21,458 |
) |
|
Cash
flows from operating activities: |
$ |
12,288 |
|
|
$ |
25,358 |
|
|
$ |
(6,714 |
) |
|
$ |
48,390 |
|
|
$ |
(13,887 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
$ |
(7,544 |
) |
|
$ |
(25,683 |
) |
|
$ |
(2,036 |
) |
|
$ |
(63,320 |
) |
|
$ |
(25,658 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities: |
$ |
(3,035 |
) |
|
$ |
(7,248 |
) |
|
$ |
9,110 |
|
|
$ |
12,026 |
|
|
$ |
40,090 |
|
|
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 September 30,
2018 |
|
|
|
|
|
Net
income (loss) |
|
$ |
(3,853 |
) |
|
|
|
|
|
Add
(less) reconciling items: |
|
|
|
Add
depreciation, depletion and amortization expense |
|
5,316 |
|
|
Add
amortization of deferred financing costs |
|
1,055 |
|
|
Add
equity-based compensation, net |
|
364 |
|
|
Add
allowance for doubtful accounts |
|
287 |
|
|
Add
loss on disposal of assets |
|
142 |
|
|
Add
income taxes accrued, net of payments |
|
63 |
|
|
Add
accretion expense |
|
30 |
|
|
Less
non-cash deferred lease expense |
|
(208 |
) |
|
Less
unrealized gain on fair value of warrants |
|
(1,467 |
) |
|
Distributable cash flow |
|
$ |
1,729 |
|
|
This
announcement is distributed by West Corporation on behalf of West
Corporation 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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