Archrock, Inc. (NYSE: AROC) (“Archrock”) today reported results for
the second quarter 2024.
Second Quarter 2024 and Recent
Highlights
- Revenue for the second quarter of
2024 was $270.5 million compared to $247.5 million in the second
quarter of 2023.
- Net income for the second quarter
of 2024 was $34.4 million compared to $24.7 million in
the second quarter of 2023.
- Adjusted EBITDA (a non-GAAP measure
defined below) for the second quarter of 2024 was $129.7 million
compared to $112.8 million in the second quarter of 2023.
- Leverage ratio at the end of the
second quarter of 2024 was 3.2x compared to 4.2x at the end of the
second quarter of 2023.
- Declared a quarterly dividend of
$0.165 per share of common stock for the second quarter of 2024, 6%
higher compared to the second quarter of 2023, supported by
dividend coverage of 2.6x.
- Announced acquisition of Total
Operations and Production Services, LLC (“TOPS”).
- Reaffirming Archrock 2024 Adjusted
EBITDA guidance range of $510 million to $540 million, and
2024 total capital expenditures guidance range of $290 million to
$300 million, excluding the impact of the acquisition of TOPS (the
“Transaction”).
Management Commentary and Outlook
“Archrock’s second quarter performance reflects the earnings
power from our investment in high-quality assets, exceptional
customer service, efficient execution and implementation of
enabling technology,” said Brad Childers, Archrock’s President and
Chief Executive Officer. “We grew our operating horsepower and our
fleet remained fully utilized, with utilization exiting the quarter
at a rate of 95 percent. In addition, we again achieved
record-setting average revenue per horsepower and both of our
segments delivered outstanding margin performance.
“Market conditions for compression remain highly constructive,
predominantly in oil plays with associated gas production like the
Permian Basin. This strength and durability are being driven by the
abundance of affordable U.S. natural gas that will support growth
in its demand, use and production as well as the continued capital
discipline being employed across the energy sector. We expect to
see sustained compression booking demand well into the future as
our customers plan for the call on natural gas production to
support LNG export capacity growth and incremental electric
generation demand from AI and data centers.
“In addition to our strong operational performance and organic
opportunity set, we are excited about the pending acquisition of
TOPS. In this transaction, we are acquiring highly utilized and
contracted horsepower that is expected to be immediately accretive
to earnings and cash available for dividend, at an attractive
price. We are expanding our business with existing and new
customers, further enhancing our position in the Permian Basin and
adding a talented management team and personnel with leading
expertise in electric motor drive compression. The transaction also
supports our ability to achieve our stated financial objectives,
including growing our shareholder returns and maintaining a
leverage ratio of between 3.0 to 3.5 times. We continue to expect
the transaction will close in the second half of 2024,” concluded
Childers.
Second Quarter 2024 Financial
Results
Archrock’s second quarter 2024 net income of
$34.4 million included a non-cash long-lived and other asset
impairment of $4.4 million, as well as transaction-related expenses
totaling $1.8 million. Archrock’s second quarter 2023 net income of
$24.7 million included a non-cash long-lived and other asset
impairment of $2.9 million and a non-cash unrealized change in the
fair value of our investment in an unconsolidated affiliate of $1.7
million.
Adjusted EBITDA for the second quarter of 2024
and 2023 included $576,000 and $1.2 million, respectively, in net
gains related to the sale of compression and other assets.
Contract Operations
For the second quarter of 2024, contract operations segment
revenue totaled $225.5 million, an increase of 12% compared to
$201.1 million in the second quarter of 2023. Adjusted gross margin
was $146.2 million for the second quarter of 2024, up 17% from
$125.1 million in the second quarter of 2023. Adjusted gross margin
percentage was 65% for the second quarter of 2024, compared to 62%
in the second quarter of 2023. At the end of the second quarter of
2024, total operating horsepower was 3.6 million and utilization
was 95%, both consistent with the end of the second quarter of
2023.
Aftermarket Services
For the second quarter of 2024, aftermarket
services segment revenue totaled $45.1 million, compared to $46.4
million in the second quarter of 2023. Adjusted gross margin of
$9.9 million for the second quarter of 2024 compared to $11.1
million in the second quarter of 2023. Adjusted gross margin
percentage was 22% for the second quarter of 2024, compared to 24%
for the second quarter of 2023.
Balance Sheet
Long-term debt was $1.6 billion at June 30, 2024
and our available liquidity totaled $435 million. Our leverage
ratio was 3.2x, compared to 4.2x as of June 30, 2023.
Shareholder Returns
Quarterly Dividend
Our Board of Directors recently declared a
quarterly dividend of $0.165 per share of common stock, or $0.66
per share on an annualized basis. Dividend coverage in the second
quarter of 2024 was 2.6x. The second quarter 2024 dividend will be
paid on August 13, 2024 to stockholders of record at the close of
business on August 6, 2024.
Share Repurchase Program
The Board of Directors approved an extension of
Archrock’s share repurchase program upon expiry of the previous
authorization on April 27, 2024, for an additional 24-month period.
In connection with the extension, the Board of Directors
replenished the amount of shares authorized for repurchase under
the share repurchase program, resulting in available capacity of
$50 million. During the quarter ended June 30, 2024, Archrock did
not repurchase any common stock.
Updated 2024 Annual Guidance (Excluding
Impact of TOPS Transaction)
Archrock is updating its standalone 2024 net
income guidance range to between $139 million and $167 million,
which includes transaction-related expenses related to the
Transaction totaling between $1.8 million and $4 million; this
range is an estimate of costs incurred to-date but excludes
additional costs to be incurred after close.
Archrock is updating its standalone 2024
selling, general, and administrative expense guidance range to
between $125 million and $129 million, primarily to reflect an
increase in performance-based short-term and long-term incentive
compensation expense.
Archrock continues to expect standalone 2024
Adjusted EBITDA between $510 million and $540 million.
Archrock continues to expect $290 million to
$300 million in standalone total capital expenditures during 2024,
primarily consisting of approximately $190 million for growth
capital expenditures and approximately $80 million to $85 million
for maintenance capital expenditures.
Summary Metrics
(in thousands, except percentages, per share
amounts and ratios)
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
June 30, |
|
March 31, |
|
|
June 30, |
| |
|
2024 |
|
2024 |
|
|
2023 |
|
Net income |
|
$ |
34,425 |
|
|
$ |
40,532 |
|
|
$ |
24,653 |
|
| Adjusted EBITDA |
|
$ |
129,712 |
|
|
$ |
131,024 |
|
|
$ |
112,775 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Contract operations
revenue |
|
$ |
225,468 |
|
|
$ |
223,051 |
|
|
$ |
201,120 |
|
| Contract operations adjusted
gross margin |
|
$ |
146,190 |
|
|
$ |
145,308 |
|
|
$ |
125,087 |
|
| Contract operations adjusted
gross margin percentage |
|
|
65 |
% |
|
|
65 |
% |
|
|
62 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Aftermarket services
revenue |
|
$ |
45,058 |
|
|
$ |
45,437 |
|
|
$ |
46,423 |
|
| Aftermarket services adjusted
gross margin |
|
$ |
9,900 |
|
|
$ |
10,437 |
|
|
$ |
11,080 |
|
| Aftermarket services adjusted
gross margin percentage |
|
|
22 |
% |
|
|
23 |
% |
|
|
24 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Selling, general, and
administrative |
|
$ |
31,163 |
|
|
$ |
31,665 |
|
|
$ |
28,649 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating
activities |
|
$ |
70,651 |
|
|
$ |
137,702 |
|
|
$ |
30,542 |
|
| Cash available for
dividend |
|
$ |
71,593 |
|
|
$ |
82,026 |
|
|
$ |
52,227 |
|
| Cash available for dividend
coverage |
|
|
2.6 |
x |
|
|
3.2 |
x |
|
|
2.1 |
x |
| |
|
|
|
|
|
|
|
|
|
|
| Adjusted free cash flow |
|
$ |
(16,914 |
) |
|
$ |
51,779 |
|
|
$ |
(62,738 |
) |
| Adjusted free cash flow after
dividend |
|
$ |
(42,733 |
) |
|
$ |
25,779 |
|
|
$ |
(86,242 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Total available horsepower (at
period end) |
|
|
3,806 |
|
|
|
3,780 |
|
|
|
3,770 |
|
| Total operating horsepower (at
period end) |
|
|
3,601 |
|
|
|
3,593 |
|
|
|
3,578 |
|
| Horsepower utilization spot
(at period end) |
|
|
95 |
% |
|
|
95 |
% |
|
|
95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Details
Archrock will host a conference call on
Wednesday, July 31, 2024, to discuss second quarter 2024 financial
results. The call will begin at 10:00 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) 715-9871 in the United States or 1
(646) 307-1963 for international calls. The access code is
4749623.
A replay of the webcast will be available on Archrock’s website
for 90 days following the event.
*****
Adjusted EBITDA, a non-GAAP measure, is defined as net income
(loss) excluding interest expense, income taxes, depreciation and
amortization, long-lived and other asset impairment, unrealized
change in fair value of investment in unconsolidated affiliate,
restructuring charges, transaction-related costs, non-cash
stock-based compensation expense, amortization of capitalized
implementation costs and other items. A reconciliation of Adjusted
EBITDA to net income, the most directly comparable GAAP measure,
and a reconciliation of our full year 2024 Adjusted EBITDA guidance
to net income appear below.
Adjusted gross margin, a non–GAAP measure, is defined as revenue
less cost of sales, exclusive of depreciation and amortization.
Adjusted gross margin percentage, a non-GAAP measure, is defined as
adjusted gross margin divided by revenue. A reconciliation of
adjusted gross margin to net income, the most directly comparable
GAAP measure, and a reconciliation of adjusted gross margin
percentage to gross margin, appear below.
Cash available for dividend, a non-GAAP measure, is defined
as net income (loss) excluding interest expense, income taxes,
depreciation and amortization, long-lived and other asset
impairment, unrealized change in fair value of investment in
unconsolidated affiliate, restructuring charges, non-cash
stock-based compensation expense, transaction-related expense,
amortization of capitalized implementation costs and other items,
less maintenance capital expenditures, other capital expenditures,
cash taxes and cash interest expense. Reconciliations of cash
available for dividend to net income and net cash provided by
operating activities, the most directly comparable GAAP measures,
and a reconciliation of our updated full year 2024 cash available
for dividend guidance to net income appear below.
Adjusted free cash flow, a non-GAAP measure, is defined as net
cash provided by operating activities plus net cash provided by
(used in) investing activities. A reconciliation of free cash flow
to net cash provided by operating activities, the most directly
comparable GAAP measure, appears below.
Adjusted free cash flow after dividend, a non-GAAP measure, is
defined as net cash provided by operating activities plus net cash
provided by (used in) investing activities less dividends paid to
stockholders. A reconciliation of adjusted free cash flow after
dividend to net cash provided by operating activities, the most
directly comparable GAAP measure, appears below.
About Archrock
Archrock is an energy infrastructure company with a primary
focus on midstream natural gas compression and a commitment to
helping its customers produce, compress and transport natural
gas in a safe and environmentally responsible way. Headquartered
in Houston, Texas, Archrock is a premier provider of
natural gas compression services to customers in the energy
industry throughout the U.S. and a leading supplier of
aftermarket services to customers that own compression equipment.
For more information on how Archrock embodies its purpose, WE POWER
A CLEANER AMERICA, 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 that could cause actual results to differ
materially from such statements, many of which are outside the
control of Archrock, Inc. Forward–looking information includes, but
is not limited to statements regarding: guidance or estimates
related to Archrock’s results of operations or of financial
condition; fundamentals of Archrock’s industry, including the
attractiveness of returns and valuation, stability of cash flows,
demand dynamics and overall outlook, and Archrock’s ability to
realize the benefits thereof; Archrock’s expectations regarding
future economic, geopolitical and market conditions and trends;
Archrock’s operational and financial strategies, including planned
growth, coverage and leverage reduction strategies, Archrock’s
ability to successfully effect those strategies, and the expected
results therefrom; Archrock’s financial and operational outlook;
demand and growth opportunities for Archrock’s services; structural
and process improvement initiatives, the expected timing thereof,
Archrock’s ability to successfully effect those initiatives and the
expected results therefrom; the operational and financial synergies
provided by Archrock’s size; statements regarding Archrock’s
dividend policy; the anticipated completion of the Transaction and
the timing thereof; the expected benefits of the Transaction,
including its expected accretion and the expected impact on
Archrock’s leverage ratio; and plans and objectives of management
for future operations.
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. The
factors that could cause results to differ materially from those
indicated by such forward-looking statements include, but are not
limited to: inability to consummate the Transaction; inability to
achieve the expected benefits of the Transaction and difficulties
in integrating TOPS; risks related to acquisitions, including the
Transaction, that can reduce our ability to make distributions to
our common stockholders; risks related to pandemics and other
public health crises; an increase in inflation; ongoing
international conflicts and tensions; risks related to our
operations; competitive pressures; inability to make acquisitions
on economically acceptable terms; uncertainty to pay dividends in
the future; risks related to a substantial amount of debt and our
debt agreements; inability to access the capital and credit markets
or borrow on affordable terms to obtain additional capital;
inability to fund purchases of additional compression equipment;
vulnerability to interest rate increases; uncertainty relating to
the phasing out of London Interbank Offered Rate; erosion of the
financial condition of our customers; risks related to the loss of
our most significant customers; uncertainty of the renewals for our
contract operations service agreements; risks related to losing
management or operational personnel; dependence on particular
suppliers and vulnerability to product shortages and price
increases; information technology and cybersecurity risks;
tax-related risks; legal and regulatory risks, including
climate-related and environmental, social and governance risks.
These forward-looking statements are also affected by the risk
factors, forward-looking statements and challenges and
uncertainties described in Archrock’s Annual Report on Form 10-K
for the year ended December 31, 2023, Archrock’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2024 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.
For information, contact:
|
Archrock, Inc. |
|
INVESTORSMegan RepineVP of Investor
Relations281-836-8360investor.relations@archrock.com |
|
MEDIAAndrew Siegel / Jed RepkoJoele Frank212-355-4449 |
Archrock, Inc.Unaudited
Condensed Consolidated Statements of Operations(in
thousands, except per share amounts)
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
| |
|
2024 |
|
2024 |
|
2023 |
| Revenue: |
|
|
|
|
|
|
|
|
|
|
Contract operations |
|
$ |
225,468 |
|
|
$ |
223,051 |
|
|
$ |
201,120 |
|
|
Aftermarket services |
|
|
45,058 |
|
|
|
45,437 |
|
|
|
46,423 |
|
|
Total revenue |
|
|
270,526 |
|
|
|
268,488 |
|
|
|
247,543 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales, exclusive of
depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
Contract operations |
|
|
79,278 |
|
|
|
77,743 |
|
|
|
76,033 |
|
|
Aftermarket services |
|
|
35,158 |
|
|
|
35,000 |
|
|
|
35,343 |
|
|
Total cost of sales, exclusive of depreciation and
amortization |
|
|
114,436 |
|
|
|
112,743 |
|
|
|
111,376 |
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, general and
administrative |
|
|
31,163 |
|
|
|
31,665 |
|
|
|
28,649 |
|
| Depreciation and
amortization |
|
|
43,853 |
|
|
|
42,835 |
|
|
|
41,210 |
|
| Long-lived and other asset
impairment |
|
|
4,401 |
|
|
|
2,568 |
|
|
|
2,892 |
|
| Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
(85 |
) |
| Interest expense |
|
|
27,859 |
|
|
|
27,334 |
|
|
|
28,630 |
|
| Transaction-related costs |
|
|
1,782 |
|
|
|
— |
|
|
|
— |
|
| Gain on sale of assets,
net |
|
|
(576 |
) |
|
|
(2,381 |
) |
|
|
(1,176 |
) |
| Other income, net |
|
|
128 |
|
|
|
139 |
|
|
|
1,463 |
|
| Income before income
taxes |
|
|
47,480 |
|
|
|
53,585 |
|
|
|
34,584 |
|
| Provision for income
taxes |
|
|
13,055 |
|
|
|
13,053 |
|
|
|
9,931 |
|
| Net income |
|
$ |
34,425 |
|
|
$ |
40,532 |
|
|
$ |
24,653 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic and diluted net income
per common share (1) |
|
$ |
0.22 |
|
|
$ |
0.26 |
|
|
$ |
0.16 |
|
| |
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
| Basic |
|
|
154,496 |
|
|
|
154,187 |
|
|
|
154,358 |
|
| Diluted |
|
|
154,785 |
|
|
|
154,501 |
|
|
|
154,412 |
|
|
|
|
|
| (1) |
Basic and diluted net income per common share is
computed using the two-class method to determine the net income per
share for each class of common stock and participating security
(restricted stock and stock-settled restricted stock units that
have non-forfeitable rights to receive dividends or dividend
equivalents) according to dividends declared and participation
rights in undistributed earnings. Accordingly, we have excluded net
income attributable to participating securities from our
calculation of basic and diluted net income per common share. |
| |
|
Archrock, Inc.Unaudited
Supplemental Information(in thousands, except percentages,
per share amounts and ratios)
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
| |
|
2024 |
|
2024 |
|
2023 |
| Revenue: |
|
|
|
|
|
|
|
|
|
|
Contract operations |
|
$ |
225,468 |
|
|
$ |
223,051 |
|
|
$ |
201,120 |
|
|
Aftermarket services |
|
|
45,058 |
|
|
|
45,437 |
|
|
|
46,423 |
|
|
Total revenue |
|
$ |
270,526 |
|
|
$ |
268,488 |
|
|
$ |
247,543 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted gross margin: |
|
|
|
|
|
|
|
|
|
|
Contract operations |
|
$ |
146,190 |
|
|
$ |
145,308 |
|
|
$ |
125,087 |
|
|
Aftermarket services |
|
|
9,900 |
|
|
|
10,437 |
|
|
|
11,080 |
|
|
Total adjusted gross margin (1) |
|
$ |
156,090 |
|
|
$ |
155,745 |
|
|
$ |
136,167 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted gross margin
percentage: |
|
|
|
|
|
|
|
|
|
|
Contract operations |
|
|
65 |
% |
|
|
65 |
% |
|
|
62 |
% |
|
Aftermarket services |
|
|
22 |
% |
|
|
23 |
% |
|
|
24 |
% |
|
Total adjusted gross margin percentage (1) |
|
|
58 |
% |
|
|
58 |
% |
|
|
55 |
% |
| |
|
|
|
|
|
|
|
|
|
| Selling, general and
administrative |
|
$ |
31,163 |
|
|
$ |
31,665 |
|
|
$ |
28,649 |
|
|
% of revenue |
|
|
12 |
% |
|
|
12 |
% |
|
|
12 |
% |
| |
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA (1) |
|
$ |
129,712 |
|
|
$ |
131,024 |
|
|
$ |
112,775 |
|
|
% of revenue |
|
|
48 |
% |
|
|
49 |
% |
|
|
46 |
% |
| |
|
|
|
|
|
|
|
|
|
| Capital expenditures |
|
$ |
91,271 |
|
|
$ |
99,755 |
|
|
$ |
103,084 |
|
| Proceeds from sale of
property, plant and equipment and other assets |
|
|
(3,706 |
) |
|
|
(13,844 |
) |
|
|
(9,367 |
) |
| Net capital expenditures |
|
$ |
87,565 |
|
|
$ |
85,911 |
|
|
$ |
93,717 |
|
| |
|
|
|
|
|
|
|
|
|
| Total available horsepower (at
period end) (2) |
|
|
3,806 |
|
|
|
3,780 |
|
|
|
3,770 |
|
| Total operating horsepower (at
period end) (3) |
|
|
3,601 |
|
|
|
3,593 |
|
|
|
3,578 |
|
| Average operating
horsepower |
|
|
3,607 |
|
|
|
3,606 |
|
|
|
3,549 |
|
| Horsepower utilization: |
|
|
|
|
|
|
|
|
|
|
Spot (at period end) |
|
|
95 |
% |
|
|
95 |
% |
|
|
95 |
% |
|
Average |
|
|
95 |
% |
|
|
96 |
% |
|
|
95 |
% |
| |
|
|
|
|
|
|
|
|
|
| Dividend declared for the
period per share |
|
$ |
0.165 |
|
|
$ |
0.165 |
|
|
$ |
0.155 |
|
| Dividend declared for the
period to all stockholders |
|
$ |
27,977 |
|
|
$ |
25,978 |
|
|
$ |
24,353 |
|
| Cash available for dividend
coverage (4) |
|
|
2.6 |
x |
|
|
3.2 |
x |
|
|
2.1 |
x |
| |
|
|
|
|
|
|
|
|
|
| Adjusted free cash flow
(1) |
|
$ |
(16,914 |
) |
|
$ |
51,779 |
|
|
$ |
(62,738 |
) |
| Adjusted free cash flow after
dividend (1) |
|
$ |
(42,733 |
) |
|
$ |
25,779 |
|
|
$ |
(86,242 |
) |
|
|
|
|
| (1) |
Management believes adjusted gross margin, Adjusted
EBITDA, adjusted free cash flow and adjusted free cash flow after
dividend 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. |
| (2) |
Defined as idle and operating horsepower and
includes new compressor units completed by a third party
manufacturer that have been delivered to us. |
| (3) |
Defined as horsepower that is operating under
contract and horsepower that is idle but under contract and
generating revenue such as standby revenue. |
| (4) |
Defined as cash available for dividend divided by
dividends declared for the period. |
| |
|
|
| |
|
June 30, |
|
March 31, |
|
June 30, |
| |
|
2024 |
|
2024 |
|
2023 |
|
Balance Sheet |
|
|
|
|
|
|
|
|
|
|
Long-term debt (1) |
|
$ |
1,608,956 |
|
$ |
1,566,566 |
|
$ |
1,639,239 |
|
Total equity |
|
|
894,496 |
|
|
882,080 |
|
|
855,533 |
|
|
|
|
| (1) |
Carrying values are shown net of unamortized
premium and deferred financing costs. |
| |
|
|
Archrock, Inc.Unaudited
Supplemental InformationReconciliation of Net
Income to Adjusted EBITDA and Adjusted Gross Margin(in
thousands)
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
| |
|
2024 |
|
2024 |
|
2023 |
|
Net income |
|
$ |
34,425 |
|
|
$ |
40,532 |
|
|
$ |
24,653 |
|
| Depreciation and
amortization |
|
|
43,853 |
|
|
|
42,835 |
|
|
|
41,210 |
|
| Long-lived and other asset
impairment |
|
|
4,401 |
|
|
|
2,568 |
|
|
|
2,892 |
|
| Unrealized change in fair
value of investment in unconsolidated affiliate |
|
|
— |
|
|
|
— |
|
|
|
1,742 |
|
| Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
(85 |
) |
| Interest expense |
|
|
27,859 |
|
|
|
27,334 |
|
|
|
28,630 |
|
| Transaction-related costs |
|
|
1,782 |
|
|
|
— |
|
|
|
— |
|
| Stock-based compensation
expense |
|
|
3,513 |
|
|
|
3,964 |
|
|
|
3,197 |
|
| Amortization of capitalized
implementation costs |
|
|
824 |
|
|
|
738 |
|
|
|
605 |
|
| Provision for income
taxes |
|
|
13,055 |
|
|
|
13,053 |
|
|
|
9,931 |
|
| Adjusted EBITDA (1) |
|
|
129,712 |
|
|
|
131,024 |
|
|
|
112,775 |
|
| Selling, general and
administrative |
|
|
31,163 |
|
|
|
31,665 |
|
|
|
28,649 |
|
| Stock-based compensation
expense |
|
|
(3,513 |
) |
|
|
(3,964 |
) |
|
|
(3,197 |
) |
| Amortization of capitalized
implementation costs |
|
|
(824 |
) |
|
|
(738 |
) |
|
|
(605 |
) |
| Unrealized change in fair
value of investment in unconsolidated affiliate |
|
|
— |
|
|
|
— |
|
|
|
(1,742 |
) |
| Gain on sale of assets,
net |
|
|
(576 |
) |
|
|
(2,381 |
) |
|
|
(1,176 |
) |
| Other income, net |
|
|
128 |
|
|
|
139 |
|
|
|
1,463 |
|
| Adjusted gross margin (1) |
|
$ |
156,090 |
|
|
$ |
155,745 |
|
|
$ |
136,167 |
|
|
|
|
|
| (1) |
Management believes Adjusted EBITDA and adjusted
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. |
| |
|
|
Archrock, Inc.Unaudited
Supplemental InformationReconciliation of Total
Revenue to Adjusted Gross Margin(in thousands)
| |
|
Three Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
| |
|
2024 |
|
2024 |
|
2023 |
|
Total revenues |
|
$ |
270,526 |
|
|
|
$ |
268,488 |
|
|
|
$ |
247,543 |
|
|
|
Cost of sales, exclusive of depreciation and amortization |
|
|
(114,436 |
) |
|
|
|
(112,743 |
) |
|
|
|
(111,376 |
) |
|
|
Depreciation and amortization |
|
|
(43,853 |
) |
|
|
|
(42,835 |
) |
|
|
|
(41,210 |
) |
|
| Gross margin |
|
|
112,237 |
|
41% |
|
|
112,910 |
|
42% |
|
|
94,957 |
|
38% |
|
Depreciation and amortization |
|
|
43,853 |
|
|
|
|
42,835 |
|
|
|
|
41,210 |
|
|
| Adjusted gross margin (1) |
|
$ |
156,090 |
|
58% |
|
$ |
155,745 |
|
58% |
|
$ |
136,167 |
|
55% |
|
|
|
|
| (1) |
Management believes adjusted gross margin provides
useful information to investors because this non-GAAP measure, when
viewed with our GAAP results and accompanying reconciliations,
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 measures and performance measures for
period-to-period comparisons. |
| |
|
|
Archrock, Inc.Unaudited
Supplemental InformationReconciliation of Net
Income to Adjusted EBITDA and Cash Available for
Dividend(in thousands)
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
| |
|
2024 |
|
2024 |
|
2023 |
|
Net income |
|
$ |
34,425 |
|
|
$ |
40,532 |
|
|
$ |
24,653 |
|
| Depreciation and
amortization |
|
|
43,853 |
|
|
|
42,835 |
|
|
|
41,210 |
|
| Long-lived and other asset
impairment |
|
|
4,401 |
|
|
|
2,568 |
|
|
|
2,892 |
|
| Unrealized change in fair
value of investment in unconsolidated affiliate |
|
|
— |
|
|
|
— |
|
|
|
1,742 |
|
| Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
(85 |
) |
| Interest expense |
|
|
27,859 |
|
|
|
27,334 |
|
|
|
28,630 |
|
| Transaction-related costs |
|
|
1,782 |
|
|
|
— |
|
|
|
— |
|
| Stock-based compensation
expense |
|
|
3,513 |
|
|
|
3,964 |
|
|
|
3,197 |
|
| Amortization of capitalized
implementation costs |
|
|
824 |
|
|
|
738 |
|
|
|
605 |
|
| Provision for income
taxes |
|
|
13,055 |
|
|
|
13,053 |
|
|
|
9,931 |
|
| Adjusted EBITDA (1) |
|
|
129,712 |
|
|
|
131,024 |
|
|
|
112,775 |
|
| Less: Maintenance capital
expenditures |
|
|
(25,415 |
) |
|
|
(19,525 |
) |
|
|
(27,347 |
) |
| Less: Other capital
expenditures |
|
|
(3,445 |
) |
|
|
(2,920 |
) |
|
|
(5,129 |
) |
| Less: Cash tax (payment)
refund |
|
|
(2,028 |
) |
|
|
89 |
|
|
|
(1,120 |
) |
| Less: Cash interest
expense |
|
|
(27,231 |
) |
|
|
(26,642 |
) |
|
|
(26,952 |
) |
| Cash available for dividend
(2) |
|
$ |
71,593 |
|
|
$ |
82,026 |
|
|
$ |
52,227 |
|
|
|
|
|
| (1) |
Management believes Adjusted EBITDA provides useful
information to investors because this non-GAAP measure, when viewed
with our GAAP results and accompanying reconciliations, 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) |
Management uses cash available for dividend as a
supplemental performance measure to compute the coverage ratio of
estimated cash flows to planned dividends. |
| |
|
|
Archrock, Inc.Unaudited
Supplemental InformationReconciliation of Net Cash
Flows Provided by Operating Activities to Cash Available for
Dividend(in thousands)
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
| |
|
2024 |
|
2024 |
|
2023 |
|
Net cash provided by operating activities |
|
$ |
70,651 |
|
|
$ |
137,702 |
|
|
$ |
30,542 |
|
| Inventory write-downs |
|
|
(318 |
) |
|
|
(199 |
) |
|
|
(143 |
) |
| Provision for (benefit from)
credit losses |
|
|
(80 |
) |
|
|
75 |
|
|
|
(200 |
) |
| Gain on sale of assets,
net |
|
|
576 |
|
|
|
2,381 |
|
|
|
1,176 |
|
| Current income tax
provision |
|
|
615 |
|
|
|
593 |
|
|
|
395 |
|
| Cash tax (payment) refund |
|
|
(2,028 |
) |
|
|
89 |
|
|
|
(1,120 |
) |
| Amortization of operating
lease ROU assets |
|
|
(880 |
) |
|
|
(947 |
) |
|
|
(826 |
) |
| Amortization of contract
costs |
|
|
(5,957 |
) |
|
|
(5,768 |
) |
|
|
(5,160 |
) |
| Deferred revenue recognized in
earnings |
|
|
2,747 |
|
|
|
2,859 |
|
|
|
4,278 |
|
| Cash restructuring
charges |
|
|
— |
|
|
|
— |
|
|
|
842 |
|
| Transaction-related costs |
|
|
1,782 |
|
|
|
— |
|
|
|
— |
|
| Changes in assets and
liabilities |
|
|
33,345 |
|
|
|
(32,314 |
) |
|
|
54,919 |
|
| Maintenance capital
expenditures |
|
|
(25,415 |
) |
|
|
(19,525 |
) |
|
|
(27,347 |
) |
| Other capital
expenditures |
|
|
(3,445 |
) |
|
|
(2,920 |
) |
|
|
(5,129 |
) |
| Cash available for dividend
(1) |
|
$ |
71,593 |
|
|
$ |
82,026 |
|
|
$ |
52,227 |
|
|
|
|
|
| (1) |
Management uses cash available for dividend as a
supplemental performance measure to compute the coverage ratio of
estimated cash flows to planned dividends. |
| |
|
|
Archrock, Inc.Unaudited
Supplemental InformationReconciliation of Net Cash
Flows Provided By Operating Activities to Adjusted Free Cash Flow
and Adjusted Free Cash Flow After Dividend(in
thousands)
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
June 30, |
|
March 31, |
|
June 30, |
| |
|
2024 |
|
2024 |
|
2023 |
|
Net cash provided by operating activities |
|
$ |
70,651 |
|
|
$ |
137,702 |
|
|
$ |
30,542 |
|
| Net cash used in investing
activities |
|
|
(87,565 |
) |
|
|
(85,923 |
) |
|
|
(93,280 |
) |
| Adjusted free cash flow
(1) |
|
|
(16,914 |
) |
|
|
51,779 |
|
|
|
(62,738 |
) |
| Dividends paid to
stockholders |
|
|
(25,819 |
) |
|
|
(26,000 |
) |
|
|
(23,504 |
) |
| Adjusted free cash flow after
dividend (1) |
|
$ |
(42,733 |
) |
|
$ |
25,779 |
|
|
$ |
(86,242 |
) |
|
|
|
|
| (1) |
Management believes adjusted free cash flow and
adjusted free cash flow after dividend 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. |
| |
|
|
Archrock, Inc.Unaudited
Supplemental InformationReconciliation of Net
Income to Adjusted EBITDA and Cash Available for Dividend
Guidance(in thousands)
| |
|
|
|
|
|
|
| |
|
Annual Guidance Range |
| |
|
2024 |
| |
|
Low |
|
High |
|
Net income (1) |
|
$ |
138,700 |
|
|
$ |
166,500 |
|
| Interest expense |
|
|
111,000 |
|
|
|
111,000 |
|
| Provision for income
taxes |
|
|
57,500 |
|
|
|
57,500 |
|
| Depreciation and
amortization |
|
|
176,000 |
|
|
|
176,000 |
|
| Stock-based compensation
expense |
|
|
14,000 |
|
|
|
14,000 |
|
| Long-lived and other asset
impairment |
|
|
7,000 |
|
|
|
7,000 |
|
| Transaction-related costs
(2) |
|
|
1,800 |
|
|
|
4,000 |
|
| Amortization of capitalized
implementation costs |
|
|
4,000 |
|
|
|
4,000 |
|
| Adjusted EBITDA (3) |
|
|
510,000 |
|
|
|
540,000 |
|
| Less: Maintenance capital
expenditures |
|
|
(80,000 |
) |
|
|
(85,000 |
) |
| Less: Other capital
expenditures |
|
|
(20,000 |
) |
|
|
(25,000 |
) |
| Less: Cash tax expense |
|
|
(2,000 |
) |
|
|
(2,000 |
) |
| Less: Cash interest
expense |
|
|
(108,000 |
) |
|
|
(108,000 |
) |
| Cash available for dividend
(4)(5) |
|
$ |
300,000 |
|
|
$ |
320,000 |
|
|
|
|
|
| (1) |
2024 annual guidance for net income includes $7.0
million of long-lived and other asset impairment as of June 30,
2024, but does not include the impact of any such future costs,
because due to its nature, it cannot be accurately forecasted.
Long-lived and other asset impairment does not impact Adjusted
EBITDA or cash available for dividend, however it is a reconciling
item between these measures and net income. Long-lived and other
asset impairment for the years 2023 and 2022 was $12.0 million and
$21.4 million, respectively. |
| (2) |
Reflects estimate of expenses incurred to date
related to the Transaction and excludes additional costs to be
incurred after close. |
| (3) |
Management believes Adjusted EBITDA provides useful
information to investors because this non-GAAP measure, when viewed
with our GAAP results and accompanying reconciliations, 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. |
| (4) |
Management uses cash available for dividend as a
supplemental performance measure to compute the coverage ratio of
estimated cash flows to planned dividends. |
| (5) |
A forward-looking estimate of cash provided by
operating activities is not provided because certain items
necessary to estimate cash provided by operating activities,
including changes in assets and liabilities, are not estimable at
this time. Changes in assets and liabilities were $(28.0) million
and $(24.5) million for the years 2023 and 2022, respectively. |
| |
|
Archrock (NYSE:AROC)
過去 株価チャート
から 7 2024 まで 7 2024
Archrock (NYSE:AROC)
過去 株価チャート
から 7 2023 まで 7 2024
