CSI pressco LP(CCLP) - 2021 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2021, were $71,294 thousand, a decrease of 1.3% compared to $72,258 thousand in the same period of 2020[11] - Net loss for the three months ended September 30, 2021, was $(14,362) thousand, compared to a net loss of $(12,607) thousand for the same period in 2020, representing an increase in loss of 13.9%[13] - Basic and diluted net loss per common unit for the three months ended September 30, 2021, was $(0.30), compared to $(0.25) for the same period in 2020, indicating a decline of 20%[11] - The company reported a comprehensive loss of $(14,514) thousand for the three months ended September 30, 2021, compared to $(12,503) thousand in the same period of 2020, an increase of 16.1%[13] - Net loss for the nine months ended September 30, 2021, was $40.912 million, compared to a loss of $50.815 million for the same period in 2020, representing a 19% improvement[28] - Total revenues for the nine months ended September 30, 2021, were $206.8 million, a decrease of $23.7 million or 10.3% compared to the same period in 2020[133] Assets and Liabilities - Total current assets increased to $109,833 thousand as of September 30, 2021, from $96,825 thousand as of December 31, 2020, reflecting a growth of 13.4%[17] - Total liabilities decreased to $683,723 thousand as of September 30, 2021, from $709,966 thousand as of December 31, 2020, a reduction of 3.7%[17] - Current liabilities increased to $155,785 thousand as of September 30, 2021, from $59,415 thousand as of December 31, 2020, a significant rise of 162.3%[17] - The total property, plant, and equipment net value was $520,485 thousand as of September 30, 2021, down from $551,401 thousand as of December 31, 2020, a decrease of 5.6%[17] - As of September 30, 2021, total long-term debt amounted to $641.2 million, with a net long-term debt of $560.9 million after accounting for the current portion[6] Revenue Breakdown - Compression and related services revenue in the United States for the three months ended September 30, 2021, was $47.320 million, compared to $46.012 million in 2020, reflecting a year-over-year increase of 2.83%[65] - Revenues from compression and related services increased by $3.0 million or 5.7% in Q3 2021 compared to Q3 2020, attributed to recovery from price concessions and improved activity levels in the energy sector[119] - Aftermarket services revenues increased by $0.1 million in Q3 2021 compared to Q3 2020, although demand continues to be affected by the COVID-19 pandemic[120] - Equipment sales revenues decreased by $4.1 million or 81.0% in Q3 2021 compared to Q3 2020 due to a decline in used unit sales[120] Expenses - The cost of revenues for the three months ended September 30, 2021, was $42,396 thousand, an increase of 1.5% from $41,768 thousand in the same period of 2020[11] - Selling, general, and administrative expenses for the three months ended September 30, 2021, were $9,433 thousand, up 18.3% from $7,973 thousand in the same period of 2020[11] - Selling, general, and administrative expenses increased by $3.6 million due to higher salaries and employee expenses, offset by decreases in professional expenses and bad debt expense[142] - Interest expense, net, increased by $1.1 million compared to the prior year period due to higher interest rates associated with Second Lien Notes[143] Cash Flow and Capital Expenditures - Cash provided by operating activities for the nine months ended September 30, 2021, was $22.812 million, an increase from $13.729 million in 2020[28] - Total cash and cash equivalents at the end of the period was $23.484 million, up from $16.699 million at the end of the previous year[28] - Capital expenditures in 2021 are expected to range from $50.0 million to $60.0 million, including $28.0 million to $35.0 million for expanding the large horsepower compression services fleet[163] - Capital expenditures during the nine months ended September 30, 2021, increased by $6.5 million compared to the same period in 2020, totaling $9.9 million in maintenance capital expenditures[169] Discontinued Operations - The company has exited the new unit sales business and reflected these operations as discontinued operations for all periods presented[31] - Total pretax loss from discontinued operations for the nine months ended September 30, 2021, was $623,000, compared to a loss of $1.143 million in the same period of 2020[61] Tax and Accounting - The effective tax rate for the nine-month period ended September 30, 2021, was negative 8.2%, primarily due to taxes in foreign jurisdictions and losses in entities without recorded tax benefits[97] - The effective tax rate for Q3 2021 was negative 3.8%, primarily due to losses in entities without related tax benefits[129] - The company adopted ASU 2019-12 on January 1, 2021, which simplified the accounting for income taxes, with no material impact on consolidated financial statements[55] Other Financial Activities - The company completed a private placement of 39 million common units at $1.35 per unit, raising approximately $53 million[103] - The company sold 25 compressor units to SES, generating approximately $24 million in cash proceeds to be used for redeeming Senior Notes[105] - The company anticipates a redemption of all Senior Notes on December 13, 2021, at a price equal to 100% of the principal amount plus accrued interest[106] - The company distributed $1.5 million of cash distributions to common unitholders and General Partner during the nine months ended September 30, 2021[171] Market Conditions - The average oil price reached $71 per barrel in Q3 2021, contributing to increased activity levels in compression services[112] - The company has secured orders for new high-horsepower compressors expected to generate revenues in Q4 2021 and the first half of 2022[112] - The company has reversed most cost-reduction actions taken in 2020 and increased capital allocated to growth in response to improved market conditions[114] Management and Governance - Management does not consider it reasonably possible that a loss from litigation could materially affect the company's financial condition or results of operations[181] - There have been no material changes in the evaluation of accounting estimates and underlying assumptions since the 2020 Annual Report[179]