Delaware | 001-35912 | 90-0832937 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation or organization) | File Number) | Identification No.) |
Emerge Energy Services LP | |||
By: | Emerge Energy Services GP LLC, | ||
its general partner | |||
Dated: February 27, 2017 | By: | /s/ Deborah Deibert | |
Deborah Deibert | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Exhibit Number | Description | |
99.1 | Press release of Emerge Energy Services, LP dated February 27, 2017 |
• | Net loss of $(20.8) million and Adjusted EBITDA of $(10.6) million for the three months ended December 31, 2016. |
• | Full quarter sales of 825,699 tons of sand. |
• | Completed a public offering and received net proceeds of $36.9 million. |
Three months ended | Twelve Months Ended December 31, | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | 2016 | 2015 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
REVENUES | $ | 42,619 | $ | 31,285 | $ | 44,502 | $ | 128,399 | $ | 269,518 | ||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Cost of goods sold | 51,263 | 40,500 | 38,988 | 173,907 | 209,161 | |||||||||||||||
Depreciation, depletion and amortization | 4,662 | 4,687 | 4,478 | 19,126 | 17,897 | |||||||||||||||
Selling, general and administrative expenses | 5,020 | 4,697 | 6,410 | 20,951 | 27,551 | |||||||||||||||
Contract and project terminations | — | (25 | ) | 1,308 | 4,011 | 10,652 | ||||||||||||||
Total operating expenses | 60,945 | 49,859 | 51,184 | 217,995 | 265,261 | |||||||||||||||
Operating income (loss) | (18,326 | ) | (18,574 | ) | (6,682 | ) | (89,596 | ) | 4,257 | |||||||||||
OTHER EXPENSE (INCOME) | ||||||||||||||||||||
Interest expense, net | 3,448 | 8,014 | 3,126 | 21,339 | 11,216 | |||||||||||||||
Other expense (income) | (885 | ) | 3,359 | (1 | ) | 2,471 | (34 | ) | ||||||||||||
Total other expense | 2,563 | 11,373 | 3,125 | 23,810 | 11,182 | |||||||||||||||
Income (loss) before provision for income taxes | (20,889 | ) | (29,947 | ) | (9,807 | ) | (113,406 | ) | (6,925 | ) | ||||||||||
Provision (benefit) for income taxes | (220 | ) | 8 | (28 | ) | (191 | ) | 258 | ||||||||||||
Net income (loss) from continuing operations | (20,669 | ) | (29,955 | ) | (9,779 | ) | (113,215 | ) | (7,183 | ) | ||||||||||
Discontinued Operations | ||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (106 | ) | 3,373 | (109 | ) | 8,746 | (2,228 | ) | ||||||||||||
Gain on sale of discontinued operations | — | 31,699 | — | 31,699 | — | |||||||||||||||
Total income (loss) from discontinued operations, net of tax | (106 | ) | 35,072 | (109 | ) | 40,445 | (2,228 | ) | ||||||||||||
NET INCOME (LOSS) | $ | (20,775 | ) | $ | 5,117 | $ | (9,888 | ) | $ | (72,770 | ) | $ | (9,411 | ) | ||||||
ADJUSTED EBITDA (a) | $ | (10,648 | ) | $ | (8,113 | ) | $ | 3,853 | $ | (37,354 | ) | $ | 50,704 |
Three months ended | Twelve Months Ended December 31 | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | 2016 | 2015 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
REVENUES | $ | 42,619 | $ | 31,285 | $ | 44,502 | $ | 128,399 | $ | 269,518 | ||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Cost of goods sold | 51,263 | 40,500 | 38,988 | 173,907 | 209,161 | |||||||||||||||
Depreciation, depletion and amortization | 4,662 | 4,687 | 4,478 | 19,126 | 17,897 | |||||||||||||||
Selling, general and administrative expenses | 5,020 | 4,697 | 6,410 | 20,951 | 27,551 | |||||||||||||||
Contract and project terminations | — | (25 | ) | 1,308 | 4,011 | 10,652 | ||||||||||||||
Operating income (loss) | $ | (18,326 | ) | $ | (18,574 | ) | $ | (6,682 | ) | $ | (89,596 | ) | $ | 4,257 | ||||||
Net income (loss) from continuing operations | $ | (20,669 | ) | $ | (29,955 | ) | $ | (9,779 | ) | $ | (113,215 | ) | $ | (7,183 | ) | |||||
Adjusted EBITDA (a) | $ | (10,543 | ) | $ | (10,872 | ) | $ | 665 | $ | (50,425 | ) | $ | 39,717 | |||||||
Volume of sand sold (tons in thousands) | 826 | 493 | 581 | 2,157 | 3,392 | |||||||||||||||
Volume of sand produced (tons in thousands): | ||||||||||||||||||||
Arland, Wisconsin facility | 165 | 21 | 165 | 186 | 1,064 | |||||||||||||||
Barron, Wisconsin facility | 494 | 383 | 297 | 1,588 | 1,536 | |||||||||||||||
New Auburn, Wisconsin facility | 162 | 10 | 43 | 352 | 604 | |||||||||||||||
Kosse, Texas facility | 53 | 44 | 62 | 140 | 277 | |||||||||||||||
Total volume of sand produced | 874 | 458 | 567 | 2,266 | 3,481 |
Three months ended | Twelve Months Ended December 31 | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | 2016 | 2015 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Revenues | $ | — | $ | 67,095 | $ | 86,004 | $ | 249,558 | $ | 442,121 | ||||||||||
Cost of goods sold (excluding depreciation, depletion and amortization) | — | 63,481 | 81,809 | 233,025 | 426,664 | |||||||||||||||
Depreciation and amortization | — | — | 2,638 | 2,354 | 10,544 | |||||||||||||||
Selling, general and administrative expenses | 106 | (211 | ) | 1,234 | 3,687 | 5,568 | ||||||||||||||
Interest expense, net | — | 444 | 402 | 1,727 | 1,338 | |||||||||||||||
Other | — | — | (1 | ) | — | (11 | ) | |||||||||||||
Income (loss) from discontinued operations before provision for income taxes | (106 | ) | 3,381 | (78 | ) | 8,765 | (1,982 | ) | ||||||||||||
Provision for income taxes | — | 8 | 31 | 19 | 246 | |||||||||||||||
Income (loss) from discontinued operations, net of taxes | (106 | ) | 3,373 | (109 | ) | 8,746 | (2,228 | ) | ||||||||||||
Gain on sale of discontinued operations | — | 31,699 | — | 31,699 | — | |||||||||||||||
Total income (loss) from discontinued operations, net of taxes | $ | (106 | ) | $ | 35,072 | $ | (109 | ) | $ | 40,445 | $ | (2,228 | ) | |||||||
Adjusted EBITDA (a) | $ | (105 | ) | $ | 2,759 | $ | 3,188 | $ | 13,071 | $ | 10,987 | |||||||||
Volume of refined fuels sold (gallons in thousands) | — | 41,651 | 55,768 | 165,422 | 240,132 | |||||||||||||||
Volume of terminal throughput (gallons in thousands) | — | 24,963 | 16,038 | 82,387 | 123,180 | |||||||||||||||
Volume of transmix refined (gallons in thousands) | — | 18,942 | 22,021 | 68,326 | 93,128 | |||||||||||||||
Refined transmix as a percent of total refined fuels sold | — | 45.5 | % | 39.5 | % | 41.3 | % | 38.8 | % |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
REVENUES | $ | 42,619 | $ | 44,502 | $ | 128,399 | $ | 269,518 | ||||||||
OPERATING EXPENSES | ||||||||||||||||
Cost of goods sold | 51,263 | 38,988 | 173,907 | 209,161 | ||||||||||||
Depreciation, depletion and amortization | 4,662 | 4,478 | 19,126 | 17,897 | ||||||||||||
Selling, general and administrative expenses | 5,020 | 6,410 | 20,951 | 27,551 | ||||||||||||
Contract and project terminations | — | 1,308 | 4,011 | 10,652 | ||||||||||||
Total operating expenses | 60,945 | 51,184 | 217,995 | 265,261 | ||||||||||||
Operating income (loss) | (18,326 | ) | (6,682 | ) | (89,596 | ) | 4,257 | |||||||||
OTHER EXPENSE (INCOME) | ||||||||||||||||
Interest expense, net | 3,448 | 3,126 | 21,339 | 11,216 | ||||||||||||
Other expense (income) | (885 | ) | (1 | ) | 2,471 | (34 | ) | |||||||||
Total other expense | 2,563 | 3,125 | 23,810 | 11,182 | ||||||||||||
Income (loss) before provision for income taxes | (20,889 | ) | (9,807 | ) | (113,406 | ) | (6,925 | ) | ||||||||
Provision (benefit) for income taxes | (220 | ) | (28 | ) | (191 | ) | 258 | |||||||||
Net income (loss) from continuing operations | (20,669 | ) | (9,779 | ) | (113,215 | ) | (7,183 | ) | ||||||||
Discontinued Operations | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (106 | ) | (109 | ) | 8,746 | (2,228 | ) | |||||||||
Gain on sale of discontinued operations | — | — | 31,699 | — | ||||||||||||
Total income (loss) from discontinued operations, net of tax | (106 | ) | (109 | ) | 40,445 | (2,228 | ) | |||||||||
NET INCOME (LOSS) | $ | (20,775 | ) | $ | (9,888 | ) | $ | (72,770 | ) | $ | (9,411 | ) | ||||
Earnings (loss) per common unit | ||||||||||||||||
Basic: | ||||||||||||||||
Earnings (loss) per common unit from continuing operations | $ | (0.77 | ) | $ | (0.41 | ) | $ | (4.55 | ) | $ | (0.30 | ) | ||||
Earnings (loss) per common unit from discontinued operations | — | — | 1.63 | (0.09 | ) | |||||||||||
Basic earnings (loss) per common unit | $ | (0.77 | ) | $ | (0.41 | ) | $ | (2.92 | ) | $ | (0.39 | ) | ||||
Diluted: | ||||||||||||||||
Earnings (loss) per common unit from continuing operations | $ | (0.77 | ) | $ | (0.41 | ) | $ | (4.55 | ) | $ | (0.30 | ) | ||||
Earnings (loss) per common unit from discontinued operations | — | — | 1.63 | (0.09 | ) | |||||||||||
Diluted earnings (loss) per common unit | $ | (0.77 | ) | $ | (0.41 | ) | $ | (2.92 | ) | $ | (0.39 | ) | ||||
Weighted average number of common units outstanding including participating securities (basic) | 27,055,160 | 24,119,972 | 24,870,258 | 23,973,850 | ||||||||||||
Weighted average number of common units outstanding (diluted) | 27,055,160 | 24,119,972 | 24,870,258 | 23,973,850 |
Three Months Ended December 31, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2016 | 2016 | ||||||||||||||||||||||||||||
Continuing | Discontinued | Consolidated (a) | Continuing | Discontinued | Consolidated (a) | |||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (20,669 | ) | $ | (9,779 | ) | $ | (106 | ) | $ | (109 | ) | $ | (20,775 | ) | $ | (9,888 | ) | $ | (29,955 | ) | $ | 35,072 | $ | 5,117 | |||||||||||
Interest expense, net | 3,448 | 3,126 | — | 402 | 3,448 | 3,528 | 8,014 | 444 | 8,458 | |||||||||||||||||||||||||||
Depreciation, depletion and amortization | 4,662 | 4,478 | — | 2,638 | 4,662 | 7,116 | 4,687 | — | 4,687 | |||||||||||||||||||||||||||
Provision for income taxes | (220 | ) | (28 | ) | — | 31 | (220 | ) | 3 | 8 | 8 | 16 | ||||||||||||||||||||||||
EBITDA | (12,779 | ) | (2,203 | ) | (106 | ) | 2,962 | (12,885 | ) | 759 | (17,246 | ) | 35,524 | 18,278 | ||||||||||||||||||||||
Equity-based compensation expense | 251 | (167 | ) | — | 104 | 251 | (63 | ) | 235 | 97 | 332 | |||||||||||||||||||||||||
Contract and project terminations | — | 1,308 | — | — | — | 1,308 | (25 | ) | — | (25 | ) | |||||||||||||||||||||||||
Provision for doubtful accounts | 4 | 922 | — | 38 | 4 | 960 | 8 | (543 | ) | (535 | ) | |||||||||||||||||||||||||
Accretion expense | 30 | 30 | — | — | 30 | 30 | 30 | — | 30 | |||||||||||||||||||||||||||
Retirement of assets | 350 | 36 | — | — | 350 | 36 | 209 | — | 209 | |||||||||||||||||||||||||||
Reduction in workforce | — | 362 | — | — | — | 362 | — | (679 | ) | (679 | ) | |||||||||||||||||||||||||
Other state and local taxes | 389 | 377 | 1 | 84 | 390 | 461 | 483 | 59 | 542 | |||||||||||||||||||||||||||
Non-cash deferred lease expense | 2,079 | — | — | — | 2,079 | — | 2,072 | — | 2,072 | |||||||||||||||||||||||||||
Unrealized loss (gain) on fair value of warrants | (885 | ) | — | — | — | (885 | ) | — | 2,975 | — | 2,975 | |||||||||||||||||||||||||
Non-capitalized cost of private placement | 17 | — | — | — | 17 | — | 387 | — | 387 | |||||||||||||||||||||||||||
Gain on sale of discontinued operations, net of tax | — | — | — | — | — | — | — | (31,699 | ) | (31,699 | ) | |||||||||||||||||||||||||
Other adjustments allowable under our existing credit agreement | 1 | — | — | — | 1 | — | — | — | — | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | (10,543 | ) | $ | 665 | $ | (105 | ) | $ | 3,188 | $ | (10,648 | ) | $ | 3,853 | $ | (10,872 | ) | $ | 2,759 | $ | (8,113 | ) |
Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Continuing | Discontinued | Consolidated (a) | ||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Net income (loss) | $ | (113,215 | ) | $ | (7,183 | ) | $ | 40,445 | $ | (2,228 | ) | $ | (72,770 | ) | $ | (9,411 | ) | |||||||
Interest expense, net | 21,339 | 11,216 | 1,727 | 1,338 | 23,066 | 12,554 | ||||||||||||||||||
Depreciation, depletion and amortization | 19,126 | 17,897 | 2,354 | 10,544 | 21,480 | 28,441 | ||||||||||||||||||
Provision for income taxes | (191 | ) | 258 | 19 | 246 | (172 | ) | 504 | ||||||||||||||||
EBITDA | (72,941 | ) | 22,188 | 44,545 | 9,900 | (28,396 | ) | 32,088 | ||||||||||||||||
Equity-based compensation expense | 388 | 2,935 | 331 | 597 | 719 | 3,532 | ||||||||||||||||||
Write-down of sand inventory | 5,394 | — | — | 5,394 | — | |||||||||||||||||||
Contract and project terminations | 4,011 | 10,652 | — | — | 4,011 | 10,652 | ||||||||||||||||||
Provision for doubtful accounts | 1,684 | 1,391 | (469 | ) | 150 | 1,215 | 1,541 | |||||||||||||||||
Accretion expense | 119 | 110 | — | — | 119 | 110 | ||||||||||||||||||
Retirement of assets | 559 | 138 | 67 | 8 | 626 | 146 | ||||||||||||||||||
Reduction in force | 76 | 362 | — | — | 76 | 362 | ||||||||||||||||||
Other state and local taxes | 1,824 | 1,941 | 296 | 332 | 2,120 | 2,273 | ||||||||||||||||||
Non-cash deferred lease expense | 5,758 | — | — | — | 5,758 | — | ||||||||||||||||||
Unrealized loss on fair value of warrants | 2,090 | — | — | — | 2,090 | — | ||||||||||||||||||
Non-capitalized cost of private placement | 404 | — | — | — | 404 | — | ||||||||||||||||||
Gain on sale of discontinued operations, net of tax | — | — | (31,699 | ) | — | (31,699 | ) | — | ||||||||||||||||
Other adjustments allowable under our existing credit agreement | 209 | — | — | — | 209 | — | ||||||||||||||||||
Adjusted EBITDA | $ | (50,425 | ) | $ | 39,717 | $ | 13,071 | $ | 10,987 | $ | (37,354 | ) | $ | 50,704 |
Three Months Ended, | Year Ended December 31, | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | 2016 | 2015 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Adjusted EBITDA | $ | (10,648 | ) | $ | (8,113 | ) | $ | 3,853 | $ | (37,354 | ) | $ | 50,704 | |||||||
Non-cash interest expense, net | (3,001 | ) | (4,682 | ) | (4,094 | ) | (16,672 | ) | (11,729 | ) | ||||||||||
Non-cash income tax expense | (170 | ) | (558 | ) | (464 | ) | (1,948 | ) | (2,777 | ) | ||||||||||
Contract and project terminations - non-cash | (3 | ) | 25 | 353 | (3 | ) | (307 | ) | ||||||||||||
Reduction in workforce | — | — | (362 | ) | (76 | ) | (362 | ) | ||||||||||||
Write-down of sand inventory | — | — | — | (5,394 | ) | — | ||||||||||||||
Other adjustments allowable under our existing credit agreement | (1 | ) | — | — | (209 | ) | — | |||||||||||||
Fuel division selling expenses | — | 679 | — | — | — | |||||||||||||||
Cost to retire assets | — | — | — | 9 | — | |||||||||||||||
Non-cash deferred lease expense | (2,079 | ) | (2,072 | ) | — | (5,758 | ) | — | ||||||||||||
Change in other operating assets and liabilities | (3,589 | ) | (82 | ) | 5,476 | 20,079 | 11,796 | |||||||||||||
Cash flows from operating activities: | $ | (19,491 | ) | $ | (14,803 | ) | $ | 4,762 | $ | (47,326 | ) | $ | 47,325 | |||||||
Cash flows from investing activities: | $ | (1,263 | ) | $ | 152,816 | $ | (10,946 | ) | $ | 140,541 | $ | (33,674 | ) | |||||||
Cash flows from financing activities: | $ | (20,753 | ) | $ | (141,166 | ) | $ | 21,166 | $ | (114,081 | ) | $ | 343 |
Three months ended December 31, 2016 | |||||
Net income (loss) | $ | (20,775 | ) | ||
Add (less) reconciling items: | |||||
Add depreciation, depletion and amortization expense | 4,662 | ||||
Add non-cash deferred lease expense | 2,079 | ||||
Add amortization of deferred financing costs | 678 | ||||
Add loss on disposal of assets | 350 | ||||
Add equity-based compensation expense | 251 | ||||
Add accretion | 30 | ||||
Add provision for doubtful accounts | 4 | ||||
Less income taxes accrued, net of payments | (220 | ) | |||
Less unrealized gain on fair value of interest rate swaps | (232 | ) | |||
Less unrealized loss on fair value of warrants | (885 | ) | |||
Less maintenance capital expenditures | (1,174 | ) | |||
Distributable cash flow | $ | (15,232 | ) |