HOUSTON--(BUSINESS WIRE)--Oct. 31, 2016--
Archrock, Inc. (NYSE:AROC) today announced that its Board of Directors
has declared a dividend of $0.12 per share of common stock. The dividend
to be paid in November 2016 is approximately 25% higher than the
second-quarter 2016 dividend of $0.095 per share. The dividend will be
paid on November 17, 2016, to stockholders of record at the close of
business on November 10, 2016.
For the third quarter of 2016 net loss from continuing operations was
$10.0 million compared to $2.4 million in the second quarter of 2016 and
$17.9 million in the third quarter of 2015. Net loss was $10.0 million
in the third quarter of 2016 as compared to a net loss of $2.4 million
in the second quarter of 2016. EBITDA, as adjusted (as defined below),
was $80.4 million in the third quarter of 2016, as compared to $83.5
million in the second quarter of 2016. Other income was $2.5 million in
the third quarter of 2016 compared to $0.2 million in the second quarter
of 2016.
Contract operations revenue was $156.6 million in the third quarter of
2016, compared to $163.0 million in the second quarter of 2016 and
$191.7 million in the third quarter of 2015. Contract operations gross
margin was $96.8 million, or 62% of revenue, in the third quarter of
2016, compared to $104.1 million, or 64% of revenue, in the second
quarter of 2016 and $113.8 million, or 59% of revenue, in the third
quarter of 2015.
Aftermarket services revenue was $39.3 million in the third quarter of
2016 compared to $41.2 million in the second quarter of 2016 and $57.2
million in the third quarter of 2015. Aftermarket services gross margin
was $6.5 million, or 17% of revenue, in the third quarter of 2016
compared to $6.8 million, or 17% of revenue, in the second quarter of
2016 and $11.7 million, or 21% of revenue, in the third quarter of 2015.
Selling, general and administrative expenses were $25.9 million in the
third quarter of 2016 compared to $28.1 million in the second quarter of
2016.
“Compared to the first half of 2016, improved market conditions in the
third quarter contributed to increased stability in our business and
lower net operating horsepower returns,” said Brad Childers, Archrock’s
President and Chief Executive Officer. “Additionally, we delivered
strong cost management with solid contract operations gross margins,
further SG&A reductions, and lower capital expenditures. These actions,
combined with the proceeds we received from Exterran related to the sale
of Exterran’s previously nationalized Venezuelan assets, enabled us to
reduce consolidated debt by over $90 million in the third quarter.
Finally, third quarter 2016 results were impacted by approximately $21
million in impairment and restructuring charges as we continued to
modernize our fleet and reduce our cost structure.”
“Today we also announced an all equity financed drop-down of
approximately 150,000 horsepower to Archrock Partners for total
consideration of approximately $85 million to Archrock, which is
expected to close in the fourth quarter of 2016,” continued Childers.
“We are increasing the third quarter 2016 dividend payment by an amount
approximately equal to the incremental distributions Archrock expects to
receive, beginning with Archrock Partners fourth quarter 2016
distribution, from the limited and general partner units to be received
as consideration in the transaction.”
“Looking into 2017, we see indications of the market stabilizing. As a
result of the work we have done to lower our cost structure and enhance
our credit profile, we will be well positioned to capitalize on growth
opportunities as and when the predicted growth in U.S. natural gas
production occurs. We continue to expect to benefit from the increased
demand for natural gas from LNG and pipeline exports, petrochemical
feedstock and power generation,” concluded Childers.
Cash available for dividend was $16.8 million in the third quarter of
2016 compared to $17.2 million in the second quarter of 2016. Cash
available for dividend coverage was 1.98x in the third quarter of 2016
compared to 2.56x in the second quarter of 2016.
Total capital expenditures in the third-quarter of 2016 were $24.8
million, including $5.2 million of maintenance capital and $19.5 million
of growth capital.
The cash distribution to be received by Archrock based on its limited
partner and general partner interests in Archrock Partners, L.P. is $7.1
million for the third quarter of 2016, compared to $7.1 million for the
second quarter of 2016.
Archrock's management and the Audit Committee of its Board of Directors
are continuing the process of determining to what extent Archrock’s
pre-Spin-off historical financial statements may be impacted by the
previously disclosed identification by Exterran of errors relating to
the application of percentage-of-completion accounting principles to
specific engineering, procurement and construction projects in the
Middle East by its Belleli subsidiary. To date, based on the information
provided by Exterran, Archrock does not believe the matters identified
relate to Archrock’s ongoing operations. Exterran’s results of
operations have been reported as discontinued operations, net of tax, in
Archrock’s consolidated statement of operations for all periods
presented in Archrock's Annual Report on Form 10-K for the fiscal year
ended December 31, 2015. Because the process of determining the impact
to Archrock’s pre-Spin-off historical financial statements is ongoing,
Archrock is not providing full third-quarter earnings information at
this time.
Conference Call Details
Archrock, Inc. and Archrock Partners, L.P. will host a joint conference
call on Tuesday, November 1, 2016, to discuss their third-quarter 2016
operational 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 1-888-771-4371 in the United
States and Canada, or +1-847-585-4405 for international calls. Please
call approximately 15 minutes prior to the scheduled start time and
reference Archrock conference call number 43614259.
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 4361 4259#.
******
EBITDA, as adjusted, a non-GAAP measure, is defined as net income (loss)
excluding income (loss) from discontinued operations (net of tax),
cumulative effect of accounting changes (net of tax), income taxes,
interest expense (including debt extinguishment costs and gain or loss
on termination of interest rate swaps), depreciation and amortization
expense, impairment charges, restructuring charges, expensed acquisition
costs and other items. A reconciliation of EBITDA, as adjusted, 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 expense). Gross margin
percentage is defined as gross margin divided by revenue. A
reconciliation of gross margin to income (loss) from continuing
operations, the most directly comparable GAAP measure, appears below.
Cash available for dividend, a non-GAAP measure, is defined as
distributions received by us from Archrock Partners, L.P., plus our
deconsolidated gross margin, less the following deconsolidated items:
maintenance and other capital expenditures, cash selling, general and
administrative expense, cash interest expense associated with our debt,
cash tax and (gain) loss on sale of property, plant and equipment. Cash
available for dividend coverage is defined as cash available for
dividend divided by total dividends. A reconciliation of cash available
for dividend to income (loss) from continuing operations, the most
directly comparable GAAP measure, appears 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, Inc. holds interests in Archrock Partners, L.P.
(NASDAQ:APLP), a master limited partnership and the leading provider of
natural gas compression services to customers in the oil and natural gas
industry throughout 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, many of which are
outside Archrock’s control, which could cause actual results to differ
materially from such statements. Forward-looking information includes,
but is not limited to: statements about Archrock’s dividends;
expectations regarding Archrock Partners’ fourth quarter 2016
distribution; statements about the expected completion of the drop-down
transaction and the timing of the closing; the anticipated benefits of
the transaction to Archrock; Archrock’s financial and operational
strategies and ability to successfully effect those strategies;
Archrock’s expectations regarding the potential impact on Archrock’s
pre-Spin historical financial statements of the matters described in
Archrock’s April 26, 2016 and May 3, 2016 Form 8-Ks; Archrock’s
expectations regarding future economic and market conditions; demand for
Archrock’s services; Archrock’s cost reduction plans; statements about
the timing of filing of Forms 10-Q; and Archrock’s financial and
operational outlook and ability to fulfill that outlook.
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 its business. Among the factors that could
cause results to differ materially from those indicated by such
forward-looking statements are: any direct or indirect impact of the
matters described in Archrock’s April 26, 2016 and May 3, 2016 Form 8-Ks
on its operating results or financial condition, including the impact of
a restatement of historical financial statements, if this is determined
to be required; Archrock’s ability to come into compliance with its SEC
filing obligations; local, regional and national economic conditions and
the impact they may have on Archrock and its customers; changes in tax
laws that impact master limited partnerships; 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; the financial condition of Archrock’s customers; any
non-performance by customers of their contractual obligations; changes
in safety, health, environmental and other regulations; and 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
the Archrock Annual Report on Form 10-K for the year ended December 31,
2015, 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.
|
ARCHROCK, INC. SELECTED UNAUDITED CONSOLIDATED
OPERATING RESULTS (In thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2016
|
|
June 30, 2016
|
|
September 30, 2015
|
Revenues:
|
|
|
|
|
|
|
Contract operations
|
|
$
|
156,599
|
|
|
$
|
162,973
|
|
|
$
|
191,692
|
|
Aftermarket services
|
|
|
39,250
|
|
|
|
41,172
|
|
|
|
57,171
|
|
|
|
|
195,849
|
|
|
|
204,145
|
|
|
|
248,863
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization expense):
|
|
|
|
|
|
|
Contract operations
|
|
|
59,776
|
|
|
|
58,866
|
|
|
|
77,927
|
|
Aftermarket services
|
|
|
32,750
|
|
|
|
34,353
|
|
|
|
45,437
|
|
Selling, general and administrative
|
|
|
25,874
|
|
|
|
28,080
|
|
|
|
32,621
|
|
Depreciation and amortization
|
|
|
52,068
|
|
|
|
51,896
|
|
|
|
58,087
|
|
Long-lived asset impairment
|
|
|
16,713
|
|
|
|
13,808
|
|
|
|
19,933
|
|
Restructuring and other charges
|
|
|
4,689
|
|
|
|
3,004
|
|
|
|
289
|
|
Interest expense
|
|
|
21,365
|
|
|
|
21,177
|
|
|
|
27,996
|
|
Other (income) loss, net
|
|
|
(2,470
|
)
|
|
|
(181
|
)
|
|
|
2,155
|
|
|
|
|
210,765
|
|
|
|
211,003
|
|
|
|
264,445
|
|
Loss before income taxes
|
|
|
(14,916
|
)
|
|
|
(6,858
|
)
|
|
|
(15,582
|
)
|
Provision for (benefit from) income taxes
|
|
|
(4,878
|
)
|
|
|
(4,500
|
)
|
|
|
2,367
|
|
Loss from continuing operations
|
|
$
|
(10,038
|
)
|
|
$
|
(2,358
|
)
|
|
$
|
(17,949
|
)
|
|
ARCHROCK, INC. UNAUDITED SUPPLEMENTAL INFORMATION (In
thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2016
|
|
June 30, 2016
|
|
September 30, 2015
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Contract operations
|
|
$
|
156,599
|
|
|
$
|
162,973
|
|
|
$
|
191,692
|
|
Aftermarket services
|
|
|
39,250
|
|
|
|
41,172
|
|
|
|
57,171
|
|
|
|
$
|
195,849
|
|
|
$
|
204,145
|
|
|
$
|
248,863
|
|
|
|
|
|
|
|
|
Gross Margin (1):
|
|
|
|
|
|
|
Contract operations
|
|
$
|
96,823
|
|
|
$
|
104,107
|
|
|
$
|
113,765
|
|
Aftermarket services
|
|
|
6,500
|
|
|
|
6,819
|
|
|
|
11,734
|
|
Total
|
|
$
|
103,323
|
|
|
$
|
110,926
|
|
|
$
|
125,499
|
|
|
|
|
|
|
|
|
Selling, General and Administrative
|
|
$
|
25,874
|
|
|
$
|
28,080
|
|
|
$
|
32,621
|
|
% of revenue
|
|
|
13
|
%
|
|
|
14
|
%
|
|
|
13
|
%
|
|
|
|
|
|
|
|
Gross Margin Percentage:
|
|
|
|
|
|
|
Contract operations
|
|
|
62
|
%
|
|
|
64
|
%
|
|
|
59
|
%
|
Aftermarket services
|
|
|
17
|
%
|
|
|
17
|
%
|
|
|
21
|
%
|
Total
|
|
|
53
|
%
|
|
|
54
|
%
|
|
|
50
|
%
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
24,809
|
|
|
$
|
21,600
|
|
|
$
|
45,112
|
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end) (2) |
|
|
3,984
|
|
|
|
4,023
|
|
|
|
4,267
|
|
Total Operating Horsepower (at period end) (3) |
|
|
3,153
|
|
|
|
3,187
|
|
|
|
3,580
|
|
Average Operating Horsepower
|
|
|
3,151
|
|
|
|
3,239
|
|
|
|
3,600
|
|
Horsepower Utilization (at period end)
|
|
|
79
|
%
|
|
|
79
|
%
|
|
|
84
|
%
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
June 30, 2016
|
|
September 30, 2015
|
Long-term debt:
|
|
|
|
|
|
|
Debt - Parent level
|
|
$
|
101,000
|
|
|
$
|
152,500
|
|
|
$
|
676,982
|
|
Debt - Archrock Partners, L.P.
|
|
|
1,370,382
|
|
|
|
1,410,042
|
|
|
|
1,383,059
|
|
Total consolidated debt (4) |
|
$
|
1,471,382
|
|
|
$
|
1,562,542
|
|
|
$
|
2,060,041
|
|
(1) Management believes gross margin provides useful
information to investors because this non-GAAP measure, when viewed
with our GAAP results and accompanying reconciliation, 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 measure and performance measure for period to period
comparisons.
|
|
(2) Available horsepower is defined as idle and operating
horsepower. New units completed by a third party manufacturer that
have been delivered to us are included in the fleet.
|
|
(3) Operating horsepower is defined as horsepower that is
operating under contract and horsepower that is idle but under
contract and generating revenue such as standby revenue.
|
|
(4) Carrying values are shown net of unamortized debt
discounts and unamortized deferred financing costs.
|
|
ARCHROCK, INC. UNAUDITED SUPPLEMENTAL INFORMATION (In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2016
|
|
June 30, 2016
|
|
September 30, 2015
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(10,038
|
)
|
|
$
|
(2,358
|
)
|
|
$
|
(17,949
|
)
|
Depreciation and amortization
|
|
|
52,068
|
|
|
|
51,896
|
|
|
|
58,087
|
|
Long-lived asset impairment
|
|
|
16,713
|
|
|
|
13,808
|
|
|
|
19,933
|
|
Restructuring and other charges
|
|
|
4,689
|
|
|
|
3,004
|
|
|
|
289
|
|
Interest expense
|
|
|
21,365
|
|
|
|
21,177
|
|
|
|
27,996
|
|
Provision for (benefit from) income taxes
|
|
|
(4,878
|
)
|
|
|
(4,500
|
)
|
|
|
2,367
|
|
Selling, general and administrative
|
|
|
25,874
|
|
|
|
28,080
|
|
|
|
32,621
|
|
Other (income) loss, net
|
|
|
(2,470
|
)
|
|
|
(181
|
)
|
|
|
2,155
|
|
Gross Margin (1) |
|
$
|
103,323
|
|
|
$
|
110,926
|
|
|
$
|
125,499
|
|
(1) Management believes gross margin provides useful
information to investors because this non-GAAP measure, when viewed
with our GAAP results and accompanying reconciliation, 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 measure and performance measure for period to period
comparisons.
|
|
ARCHROCK, INC. UNAUDITED SUPPLEMENTAL INFORMATION (In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2016
|
|
June 30, 2016
|
Reconciliation of Archrock, Inc. Net Loss from Continuing
Operations to Cash Available for Dividend
|
|
|
|
|
Net loss from continuing operations
|
|
$
|
(10,038
|
)
|
|
$
|
(2,358
|
)
|
Less: Archrock Partners net income (loss)
|
|
|
(567
|
)
|
|
|
3,311
|
|
Deconsolidated net loss from continuing operations
|
|
|
(9,471
|
)
|
|
|
(5,669
|
)
|
Declared LP distributions to Archrock, Inc.
|
|
|
6,721
|
|
|
|
6,721
|
|
Declared GP and IDR distributions to Archrock, Inc.
|
|
|
346
|
|
|
|
346
|
|
Deconsolidated items:
|
|
|
|
|
Restructuring charges
|
|
|
2,743
|
|
|
|
1,796
|
|
Depreciation and amortization
|
|
|
13,981
|
|
|
|
13,269
|
|
Benefit from income taxes
|
|
|
(5,066
|
)
|
|
|
(4,687
|
)
|
Cash tax refund
|
|
|
—
|
|
|
|
3,805
|
|
Maintenance and other capital expenditures
|
|
|
(486
|
)
|
|
|
(6,385
|
)
|
Long-lived asset impairment
|
|
|
8,804
|
|
|
|
5,525
|
|
Non-cash selling, general and administrative expense
|
|
|
1,580
|
|
|
|
1,634
|
|
Non-cash interest expense
|
|
|
512
|
|
|
|
747
|
|
(Gain) loss on sale of property, plant and equipment
|
|
|
(1,267
|
)
|
|
|
317
|
|
Other income, net
|
|
|
(1,580
|
)
|
|
|
(253
|
)
|
Cash Available for Dividend (1) |
|
$
|
16,817
|
|
|
$
|
17,166
|
|
|
|
|
|
|
Dividend declared for the period per share
|
|
$
|
0.1200
|
|
|
$
|
0.0950
|
|
Dividend declared for the period to all shareholders
|
|
$
|
8,498
|
|
|
$
|
6,699
|
|
Cash available for dividend coverage (2) |
|
1.98x
|
|
2.56x
|
|
|
|
|
|
Archrock, Inc. Cash Available for Dividend
|
|
|
|
|
Declared LP distributions to Archrock, Inc.
|
|
$
|
6,721
|
|
|
$
|
6,721
|
|
Declared GP and IDR distributions to Archrock Inc.
|
|
|
346
|
|
|
|
346
|
|
Total distributions received
|
|
|
7,067
|
|
|
|
7,067
|
|
Deconsolidated items:
|
|
|
|
|
Contract operations gross margin (3) |
|
|
12,199
|
|
|
|
13,365
|
|
Aftermarket services gross margin (3) |
|
|
6,500
|
|
|
|
6,819
|
|
Selling, general and administrative
|
|
|
(7,957
|
)
|
|
|
(8,339
|
)
|
Non-cash selling, general and administrative
|
|
|
1,580
|
|
|
|
1,634
|
|
Maintenance and other capital expenditures
|
|
|
(486
|
)
|
|
|
(6,385
|
)
|
Cash interest expense
|
|
|
(819
|
)
|
|
|
(1,117
|
)
|
(Gain) loss on sale of property, plant and equipment
|
|
|
(1,267
|
)
|
|
|
317
|
|
Cash tax refund
|
|
|
—
|
|
|
|
3,805
|
|
Cash Available for Dividend (1) |
|
$
|
16,817
|
|
|
$
|
17,166
|
|
|
|
|
|
|
Dividend declared for the period per share
|
|
$
|
0.1200
|
|
|
$
|
0.0950
|
|
Dividend declared for the period to all shareholders
|
|
$
|
8,498
|
|
|
$
|
6,699
|
|
Cash available for dividend coverage (2) |
|
1.98x
|
|
2.56x
|
(1) Cash available for dividend, a non-GAAP measure, is defined as
distributions received by us from Archrock Partners, L.P., plus our
deconsolidated gross margin, less the following deconsolidated
items: maintenance and other capital expenditures, cash selling,
general and administrative expense, cash interest expense associated
with our debt, cash taxes and (gain) loss on sale of property, plant
and equipment.
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.
|
|
(2) Defined as cash available for dividend for the period
divided by dividend declared for the period to all shareholders.
|
|
(3) Management believes gross margin provides useful
information to investors because this non-GAAP measure, when viewed
with our GAAP results and accompanying reconciliation, provide 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 measure and performance measure for period to period
comparisons.
|
|
ARCHROCK, INC. SELECTED UNAUDITED CONSOLIDATED
OPERATING RESULTS (In thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2016
|
|
June 30, 2016
|
Revenues:
|
|
|
|
|
Contract operations
|
|
$
|
156,599
|
|
|
$
|
162,973
|
|
Aftermarket services
|
|
|
39,250
|
|
|
|
41,172
|
|
|
|
|
195,849
|
|
|
|
204,145
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
Cost of sales (excluding depreciation and amortization expense):
|
|
|
|
|
Contract operations
|
|
|
59,776
|
|
|
|
58,866
|
|
Aftermarket services
|
|
|
32,750
|
|
|
|
34,353
|
|
Selling, general and administrative
|
|
|
25,874
|
|
|
|
28,080
|
|
Depreciation and amortization
|
|
|
52,068
|
|
|
|
51,896
|
|
Long-lived asset impairment
|
|
|
16,713
|
|
|
|
13,808
|
|
Restructuring and other charges
|
|
|
4,689
|
|
|
|
3,004
|
|
Interest expense
|
|
|
21,365
|
|
|
|
21,177
|
|
Other income, net
|
|
|
(2,470
|
)
|
|
|
(181
|
)
|
|
|
|
210,765
|
|
|
|
211,003
|
|
Loss before income taxes
|
|
|
(14,916
|
)
|
|
|
(6,858
|
)
|
Benefit from income taxes
|
|
|
(4,878
|
)
|
|
|
(4,500
|
)
|
Loss from continuing operations
|
|
|
(10,038
|
)
|
|
|
(2,358
|
)
|
Loss from discontinued operations, net of tax
|
|
|
(16
|
)
|
|
|
(26
|
)
|
Net loss
|
|
|
(10,054
|
)
|
|
|
(2,384
|
)
|
Less: Net (income) loss attributable to the noncontrolling interest
|
|
|
406
|
|
|
|
(2,093
|
)
|
Net loss attributable to Archrock stockholders
|
|
|
(9,648
|
)
|
|
|
(4,477
|
)
|
|
ARCHROCK, INC. UNAUDITED SUPPLEMENTAL INFORMATION (In
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2016
|
|
June 30, 2016
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
Net loss
|
|
$
|
(10,054
|
)
|
|
$
|
(2,384
|
)
|
Less: Loss from discontinued operations, net of tax
|
|
|
(16
|
)
|
|
|
(26
|
)
|
Loss from continuing operations
|
|
$
|
(10,038
|
)
|
|
$
|
(2,358
|
)
|
Depreciation and amortization
|
|
|
52,068
|
|
|
|
51,896
|
|
Long-lived asset impairment
|
|
|
16,713
|
|
|
|
13,808
|
|
Restructuring and other charges
|
|
|
4,689
|
|
|
|
3,004
|
|
Interest expense
|
|
|
21,365
|
|
|
|
21,177
|
|
Tax indemnification expense
|
|
|
62
|
|
|
|
—
|
|
Other charges (1) |
|
|
426
|
|
|
|
434
|
|
Benefit from income taxes
|
|
|
(4,878
|
)
|
|
|
(4,500
|
)
|
EBITDA, as adjusted (2) |
|
|
80,407
|
|
|
|
83,461
|
|
Selling, general and administrative
|
|
|
25,874
|
|
|
|
28,080
|
|
Tax indemnification expense
|
|
|
(62
|
)
|
|
|
—
|
|
Other charges (1) |
|
|
(426
|
)
|
|
|
(434
|
)
|
Other income, net
|
|
|
(2,470
|
)
|
|
|
(181
|
)
|
Gross margin (2) |
|
$
|
103,323
|
|
|
$
|
110,926
|
|
(1) Consists primarily of legal and professional fees
associated with the investigation of the Exterran Corporation
restatement matter.
|
|
(2) Management believes EBITDA, as adjusted 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.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161031006358/en/
Source: Archrock, Inc.
Archrock, Inc.
David Skipper, 281-836-8155