Attached files
| file | filename |
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| 8-K - 8-K - Archrock, Inc. | a2015q48karoc.htm |
For information, contact:
Media - Lisa Walsh, 281-836-8602
Investors - David Miller, 281-836-8895
Archrock, Inc. Reports Fourth-Quarter and Full-Year 2015 Results
• | Full-year 2015 EBITDA, as adjusted, of $373.2 million, up from $330.1 million in 2014 |
• | Gross margin for contract operations remained steady at 59 percent for the fourth quarter and full year 2015 |
HOUSTON, Feb. 25, 2016 - Archrock, Inc. (NYSE: AROC) today reported EBITDA, as adjusted (as defined below), of $86.0 million for the fourth quarter 2015, as compared to $90.7 million for the third quarter 2015 and $92.4 million for the fourth quarter 2014.
Revenue was $241.3 million in the fourth quarter 2015, compared to $248.9 million in the third quarter 2015 and $262.8 million in the fourth quarter 2014.
EBITDA, as adjusted, was $373.2 million for 2015, compared to $330.1 million for 2014. Revenue was $998.1 million for 2015, compared to $959.2 million for 2014.
Archrock, Inc. declared a dividend of $0.1875 per share of common stock for the fourth quarter 2015, a rate of $0.75 per share on an annualized basis. The dividend was paid on February 16, 2016, to stockholders of record at the close of business on February 9, 2016.
“Archrock’s fourth-quarter and full-year 2015 operating performance was strong with solid operating gross margins throughout the year, despite the headwinds in the market and a decline of 87,000 net operating horsepower in the fourth quarter,” said Brad Childers, Archrock’s President and Chief Executive Officer. “With continued challenges in the market, we are taking aggressive action now to reduce costs to maximize our cash flow and take full advantage of the opportunity our new structure provides for us to continue to simplify and streamline our company.
“In the fourth quarter, Archrock incurred a non-cash, long-lived asset impairment charge of $87.4 million as we elected to write off certain compression units in our idle fleet that did not warrant reinvestment. Removing these compression units furthers our progress in standardizing our fleet, which is the largest in the industry.”
Net income from continuing operations attributable to Archrock stockholders, excluding certain items, for the fourth quarter 2015 was $7.8 million, or $0.08 per diluted common share. Excluded items include a non-cash valuation allowance for foreign tax credits of $86.0 million and pretax items totaling $103.6, comprised of a non-cash long-lived asset impairment charge of $87.4 million, a goodwill impairment of $3.7 million, restructuring charges of $3.3 million and debt extinguishment costs of $9.2 million related to our recently completed spin-off transaction. Net loss from continuing operations attributable to Archrock stockholders, excluding certain items, was $9.9 million, or a loss of $0.15 per diluted common share, for the third quarter 2015. Net loss from continuing operations attributable to Archrock stockholders, excluding certain items, for the fourth quarter 2014 was $9.4 million, or a loss of $0.13 per diluted common share.
Net income from continuing operations attributable to Archrock stockholders, excluding certain items, for 2015 was $0.08 million, or a loss of $0.01 per diluted common share. Excluded items include $86.0 million of income tax expense related to a foreign tax credit valuation allowance and pretax items totaling $142.9million, comprised
of non-cash long-lived asset impairment charges of $125.0 million, goodwill impairment of $3.7 million, debt extinguishment charges of $9.2 million, restructuring charges of $4.7 million, and expensed acquisition costs of $0.3 million. Net loss from continuing operations attributable to Archrock stockholders, excluding items, for 2014 was $12 million, or $0.19 per diluted common share. Net loss attributable to Archrock stockholders was $105.8 million, or $1.55 per diluted common share, for 2015, compared to net income of $98.2 million, or $1.47 per diluted common share, for 2014.
The cash distribution received by Archrock based on its limited partner and general partner interests in Archrock Partners, L.P. was $18.9 million for the fourth quarter 2015, compared to $18.9 million for the third quarter 2015 and $15.2 million for the fourth quarter 2014. The cash distribution received by Archrock for 2015 based on its limited partner and general partner interests in Archrock Partners, L.P. was $68.2 million, compared to $55.5 million for 2014.
Conference Call Details
Archrock, Inc. and Archrock Partners, L.P. will host a joint conference call on Thursday, Feb. 25, 2016, to discuss their fourth-quarter 2015 financial 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 1-800-446-1671 in the United States and Canada or +1-847-413-3362 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference Archrock conference call number 41861269.
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 41861269#.
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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.
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.
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 2,200 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: Archrock’s financial and operational strategies and ability to successfully effect those strategies; Archrock’s
expectations regarding future economic and market conditions; Archrock’s financial and operational outlook and ability to fulfill that outlook; demand for Archrock’s services; and Archrock's cost reduction plans.
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: 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 (formerly Exterran Holdings, Inc.) Annual Report on Form 10-K for the year ended December 31, 2014, 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.
SOURCE: Archrock, Inc.
ARCHROCK, INC. | ||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Contract operations | $ | 188,954 | $ | 191,692 | $ | 199,640 | $ | 781,166 | $ | 729,103 | ||||||||||
Aftermarket services | 52,356 | 57,171 | 63,169 | 216,942 | 230,050 | |||||||||||||||
241,310 | 248,863 | 262,809 | 998,108 | 959,153 | ||||||||||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of sales (excluding depreciation and amortization expense): | ||||||||||||||||||||
Contract operations | 77,574 | 77,927 | 85,094 | 319,401 | 316,142 | |||||||||||||||
Aftermarket services | 43,587 | 45,437 | 52,981 | 175,645 | 188,251 | |||||||||||||||
Selling, general and administrative | 35,373 | 32,621 | 34,943 | 131,919 | 132,651 | |||||||||||||||
Depreciation and amortization | 56,488 | 58,087 | 55,846 | 229,127 | 212,268 | |||||||||||||||
Long-lived asset impairment | 87,383 | 19,933 | 17,833 | 124,979 | 42,828 | |||||||||||||||
Restructuring and other charges | 3,263 | 289 | — | 4,745 | 5,394 | |||||||||||||||
Goodwill impairment | 3,738 | — | — | 3,738 | — | |||||||||||||||
Interest expense | 24,751 | 27,996 | 26,536 | 107,617 | 112,273 | |||||||||||||||
Debt extinguishment costs | 9,201 | — | — | 9,201 | — | |||||||||||||||
Other (income) expense, net | (1,202 | ) | 2,155 | (2,585 | ) | (2,079 | ) | (5,475 | ) | |||||||||||
340,156 | 264,445 | 270,648 | 1,104,293 | 1,004,332 | ||||||||||||||||
Loss before income taxes | (98,846 | ) | (15,582 | ) | (7,839 | ) | (106,185 | ) | (45,179 | ) | ||||||||||
Provision for (benefit from) income taxes | 53,091 | 2,367 | 9,300 | 53,189 | (28,066 | ) | ||||||||||||||
Loss from continuing operations | (151,937 | ) | (17,949 | ) | (17,139 | ) | (159,374 | ) | (17,113 | ) | ||||||||||
Income from discontinued operations, net of tax | 8,330 | 13,716 | 45,106 | 60,408 | 142,995 | |||||||||||||||
Net income (loss) | (143,607 | ) | (4,233 | ) | 27,967 | (98,966 | ) | 125,882 | ||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 13,340 | (2,071 | ) | (8,824 | ) | (6,852 | ) | (27,716 | ) | |||||||||||
Net income (loss) attributable to Archrock stockholders | $ | (130,267 | ) | $ | (6,304 | ) | $ | 19,143 | $ | (105,818 | ) | $ | 98,166 | |||||||
Basic income (loss) per common share (1): | ||||||||||||||||||||
Loss from continuing operations attributable to Archrock common stockholders | $ | (2.03 | ) | $ | (0.29 | ) | $ | (0.38 | ) | $ | (2.44 | ) | $ | (0.68 | ) | |||||
Income from discontinued operations attributable to Archrock common stockholders | 0.12 | 0.20 | 0.66 | 0.89 | 2.15 | |||||||||||||||
Net income (loss) attributable to Archrock common stockholders | $ | (1.91 | ) | $ | (0.09 | ) | $ | 0.28 | $ | (1.55 | ) | $ | 1.47 | |||||||
Diluted income (loss) per common share (1): | ||||||||||||||||||||
Loss from continuing operations attributable to Archrock common stockholders | $ | (2.03 | ) | $ | (0.29 | ) | $ | (0.38 | ) | $ | (2.44 | ) | $ | (0.68 | ) | |||||
Income from discontinued operations attributable to Archrock common stockholders | 0.12 | 0.20 | 0.66 | 0.89 | 2.15 | |||||||||||||||
Net income (loss) attributable to Archrock common stockholders | $ | (1.91 | ) | $ | (0.09 | ) | $ | 0.28 | $ | (1.55 | ) | $ | 1.47 | |||||||
Weighted average common shares outstanding used in income (loss) per common share: | ||||||||||||||||||||
Basic | 68,431 | 68,560 | 67,366 | 68,433 | 66,234 | |||||||||||||||
Diluted | 68,431 | 68,560 | 67,366 | 68,433 | 66,234 | |||||||||||||||
Dividends declared and paid per common share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.60 | $ | 0.60 | ||||||||||
(1) Basic and diluted net income (loss) attributable to Archrock common stockholders per common share was computed using the two-class method to determine the net income (loss) per share for each class of common stock and participating security (restricted stock and certain of our stock settled restricted stock units) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income (loss) attributable to participating securities from our calculation of basic and diluted net income (loss) attributable to Archrock common stockholders per common share. | ||||||||||||||||||||
ARCHROCK, INC. | ||||||||||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Contract operations | $ | 188,954 | $ | 191,692 | $ | 199,640 | $ | 781,166 | $ | 729,103 | ||||||||||
Aftermarket services | 52,356 | 57,171 | 63,169 | 216,942 | 230,050 | |||||||||||||||
$ | 241,310 | $ | 248,863 | $ | 262,809 | $ | 998,108 | $ | 959,153 | |||||||||||
Gross Margin (1): | ||||||||||||||||||||
Contract operations | $ | 111,380 | $ | 113,765 | $ | 114,546 | $ | 461,765 | $ | 412,961 | ||||||||||
Aftermarket services | 8,769 | 11,734 | 10,188 | 41,297 | 41,799 | |||||||||||||||
Total | $ | 120,149 | $ | 125,499 | $ | 124,734 | $ | 503,062 | $ | 454,760 | ||||||||||
Selling, General and Administrative | $ | 35,373 | $ | 32,621 | $ | 34,943 | $ | 131,919 | $ | 132,651 | ||||||||||
% of revenue | 15 | % | 13 | % | 13 | % | 13 | % | 14 | % | ||||||||||
EBITDA, as Adjusted (1) | $ | 85,978 | $ | 90,723 | $ | 92,437 | $ | 373,222 | $ | 330,055 | ||||||||||
% of revenue | 36 | % | 36 | % | 35 | % | 37 | % | 34 | % | ||||||||||
Gross Margin Percentage: | ||||||||||||||||||||
Contract operations | 59 | % | 59 | % | 57 | % | 59 | % | 57 | % | ||||||||||
Aftermarket services | 17 | % | 21 | % | 16 | % | 19 | % | 18 | % | ||||||||||
Total | 50 | % | 50 | % | 47 | % | 50 | % | 47 | % | ||||||||||
Total Available Horsepower (at period end) | 4,011 | 4,267 | 4,209 | 4,011 | 4,209 | |||||||||||||||
Total Operating Horsepower (at period end) | 3,493 | 3,580 | 3,700 | 3,493 | 3,700 | |||||||||||||||
Average Operating Horsepower | 3,535 | 3,600 | 3,638 | 3,620 | 3,346 | |||||||||||||||
Horsepower Utilization (at period end) | 87 | % | 84 | % | 88 | % | 87 | % | 88 | % | ||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Balance Sheet: | ||||||||||||||||||||
Debt - Parent level | $ | 166,500 | $ | 680,000 | $ | 725,500 | $ | 166,500 | $ | 725,500 | ||||||||||
Debt - Archrock Partners, L.P. | 1,421,965 | 1,395,166 | 1,300,295 | 1,421,965 | 1,300,295 | |||||||||||||||
Total consolidated debt | $ | 1,588,465 | $ | 2,075,166 | $ | 2,025,795 | $ | 1,588,465 | $ | 2,025,795 | ||||||||||
Archrock stockholders' equity | $ | 733,910 | $ | 1,816,737 | $ | 1,797,260 | $ | 733,910 | $ | 1,797,260 | ||||||||||
(1) 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. In addition, management uses EBITDA, as adjusted, as a valuation measure. | ||||||||||||||||||||
ARCHROCK, INC. | ||||||||||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information: | ||||||||||||||||||||
Net income (loss) | $ | (143,607 | ) | $ | (4,233 | ) | $ | 27,967 | $ | (98,966 | ) | $ | 125,882 | |||||||
Income from discontinued operations, net of tax | (8,330 | ) | (13,716 | ) | (45,106 | ) | (60,408 | ) | (142,995 | ) | ||||||||||
Income (loss) from continuing operations | (151,937 | ) | (17,949 | ) | (17,139 | ) | (159,374 | ) | (17,113 | ) | ||||||||||
Depreciation and amortization | 56,488 | 58,087 | 55,846 | 229,127 | 212,268 | |||||||||||||||
Long-lived asset impairment | 87,383 | 19,933 | 17,833 | 124,979 | 42,828 | |||||||||||||||
Restructuring and other charges | 3,263 | 289 | — | 4,745 | 5,394 | |||||||||||||||
Goodwill impairment | 3,738 | — | — | 3,738 | — | |||||||||||||||
Interest expense | 24,751 | 27,996 | 26,536 | 107,617 | 112,273 | |||||||||||||||
Debt extinguishment costs | 9,201 | — | — | 9,201 | — | |||||||||||||||
Expensed acquisitions costs | — | — | 61 | — | 2,471 | |||||||||||||||
Provision for (benefit from) income taxes | 53,091 | 2,367 | 9,300 | 53,189 | (28,066 | ) | ||||||||||||||
EBITDA, as adjusted (1) | 85,978 | 90,723 | 92,437 | 373,222 | 330,055 | |||||||||||||||
Selling, general and administrative | 35,373 | 32,621 | 34,943 | 131,919 | 132,651 | |||||||||||||||
Expensed acquisitions costs | — | — | (61 | ) | — | (2,471 | ) | |||||||||||||
Other (income) expense, net | (1,202 | ) | 2,155 | (2,585 | ) | (2,079 | ) | (5,475 | ) | |||||||||||
Gross Margin (1) | $ | 120,149 | $ | 125,499 | $ | 124,734 | $ | 503,062 | $ | 454,760 | ||||||||||
Net income (loss) attributable to Archrock stockholders | $ | (130,267 | ) | $ | (6,304 | ) | 19,143 | (105,818 | ) | 98,166 | ||||||||||
Income from discontinued operations, net of tax | (8,330 | ) | (13,716 | ) | (45,106 | ) | (60,408 | ) | (142,995 | ) | ||||||||||
Federal & state tax credit write-off and valuation allowance | 6,468 | — | — | 6,468 | — | |||||||||||||||
Foreign tax credit write-off and valuation allowance | 86,003 | — | 7,224 | 86,003 | 7,224 | |||||||||||||||
Items, after-tax: | ||||||||||||||||||||
Long-lived asset impairment (including the impact on noncontrolling interest) | 45,144 | 9,882 | 9,326 | 63,887 | 21,939 | |||||||||||||||
Restructuring and other charges (including the impact on noncontrolling interest) | 2,056 | 182 | — | 2,989 | 3,122 | |||||||||||||||
Goodwill impairment (including the impact on noncontrolling interest) | 958 | — | — | 931 | — | |||||||||||||||
Debt extinguishment costs | 5,796 | — | — | 5,796 | — | |||||||||||||||
Expensed acquisition costs (including the impact on noncontrolling interest) | — | — | 14 | 75 | 584 | |||||||||||||||
Net income (loss) from continuing operations attributable to Archrock stockholders, excluding items | $ | 7,828 | $ | (9,956 | ) | $ | (9,399 | ) | $ | (77 | ) | $ | (11,960 | ) | ||||||
Diluted income (loss) from continuing operations attributable to Archrock common stockholders | $ | (2.03 | ) | $ | (0.29 | ) | $ | (0.38 | ) | $ | (2.44 | ) | $ | (0.68 | ) | |||||
Adjustment for items, after-tax, per common share (2) | 2.11 | 0.14 | 0.25 | 2.43 | 0.49 | |||||||||||||||
Diluted net income (loss) from continuing operations attributable to Archrock common stockholders per common share, excluding items (1)(2) | $ | 0.08 | $ | (0.15 | ) | $ | (0.13 | ) | $ | (0.01 | ) | $ | (0.19 | ) | ||||||
(1) Management believes EBITDA, as adjusted, diluted net income (loss) from continuing operations attributable to Archrock common stockholders per common share, excluding items, 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. In addition, management uses EBITDA, as adjusted, as a valuation measure. | ||||||||||||||||||||
(2) Diluted net income (loss) from continuing operations attributable to Archrock common stockholders per common share, excluding items, was computed using the two-class method to determine the net income (loss) per share for each class of common stock and participating security (restricted stock and certain of our stock settled restricted stock units) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income (loss) from continuing operations attributable to participating securities, excluding items, of $2.1 million, $0.1 million, and $0.1million for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively, and $0.5 million and $0.5 million for the years ended December 31, 2015 and 2014, respectively, from our calculation of diluted net income (loss) from continuing operations attributable to Exterran common stockholders per common share, excluding items. | ||||||||||||||||||||
AROC Table 4
ARCHROCK, INC. | ||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||
(In thousands, except per share amounts) | ||||
Three Months Ended | ||||
December 31, | ||||
2015 | ||||
Archrock, Inc. Cash Available for Dividend | ||||
Declared LP distributions to Archrock Inc. | $ | 13,501 | ||
Declared GP and IDR distributions to Archrock Inc. | 5,445 | |||
Total distributions received | 18,946 | |||
Plus: deconsolidated items | ||||
Contract operations gross margin (1) | 13,466 | |||
Aftermarket services gross margin (1) | 8,769 | |||
SG&A | (12,406) | |||
Non-cash SG&A | 2,528 | |||
Maintenance and other capital expenditures (excludes split related) | (11,612) | |||
Cash interest expense | (5,038) | |||
Cash tax refund | 10 | |||
Cash Available for Dividend (2) | $ | 14,663 | ||
Dividend declared for the period per share | $ | 0.1875 | ||
Dividend declared for the period to all shareholders | $ | 12,869 | ||
Cash available for dividend coverage (3) | 1.14x | |||
Three Months Ended | ||||
December 31, | ||||
2015 | ||||
Reconciliation of Archrock, Inc. Net Income to Cash Available for Dividend | ||||
Net loss from continuing operations | $ | (151,937 | ) | |
Less: Archrock Partners net income, excluding goodwill impairment | (10,178 | ) | ||
Deconsolidated net loss | (141,759 | ) | ||
Declared LP distributions to Archrock Inc. | 13,501 | |||
Declared GP and IDR distributions to Archrock Inc. | 5,445 | |||
Goodwill impairment | 3,738 | |||
Restructuring charges | 3,263 | |||
Debt extinguishment costs | 9,201 | |||
Plus: deconsolidated items | ||||
Depreciation and amortization | 16,556 | |||
Provision for (benefit from) income taxes | 52,758 | |||
Cash tax refund | 10 | |||
Maintenance and other capital expenditures (excludes split related) | (11,612 | ) | ||
Long-lived asset impairment | 60,869 | |||
Non-cash SG&A expense | 2,528 | |||
Non-cash interest expense | 1,094 | |||
Other income | (929 | ) | ||
Cash Available for Dividend (2) | $ | 14,663 | ||
Dividend declared for the period per share | $ | 0.1875 | ||
Dividend declared for the period to all shareholders | $ | 12,869 | ||
Cash available for dividend coverage (3) | 1.14x | |||
(1) Management believes gross margin provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measures as a supplemental measure to review current period operating performance, comparability measures and performance measures for period to period comparisons. | ||||
(2) 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 and cash taxes. 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. | ||||
(3) Defined as cash available for dividend for the period divided by dividend declared for the period to all shareholders. | ||||