Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Summit Midstream Partners, LP | a13-14380_18k.htm |
| EX-99.3 - EX-99.3 - Summit Midstream Partners, LP | a13-14380_1ex99d3.htm |
| EX-99.5 - EX-99.5 - Summit Midstream Partners, LP | a13-14380_1ex99d5.htm |
| EX-99.4 - EX-99.4 - Summit Midstream Partners, LP | a13-14380_1ex99d4.htm |
| EX-23.1 - EX-23.1 - Summit Midstream Partners, LP | a13-14380_1ex23d1.htm |
| EX-10.2 - EX-10.2 - Summit Midstream Partners, LP | a13-14380_1ex10d2.htm |
| EX-99.2 - EX-99.2 - Summit Midstream Partners, LP | a13-14380_1ex99d2.htm |
| EX-10.3 - EX-10.3 - Summit Midstream Partners, LP | a13-14380_1ex10d3.htm |
| EX-10.1 - EX-10.1 - Summit Midstream Partners, LP | a13-14380_1ex10d1.htm |
Exhibit 99.1
Reconciliation of Adjusted EBITDA
EBITDA and adjusted EBITDA are not financial measures presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures provides useful information to investors in assessing our financial condition and results of operations.
Net Income-Basis Non-GAAP Reconciliation
The following table presents a reconciliation of Summit Midstream Partners, LP’s net income to EBITDA and adjusted EBITDA for the periods indicated.
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Summit Midstream Partners, LP |
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Pro Forma |
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Three months ended |
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Year ended |
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Three |
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Year ended |
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2013 |
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2012 |
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2012 |
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2011 |
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2010 |
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2013 |
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2012 |
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(In thousands) |
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Reconciliation of Net Income to EBITDA(1) and Adjusted EBITDA(2) |
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Net income |
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$ |
12,480 |
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$ |
7,587 |
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$ |
41,726 |
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$ |
37,951 |
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$ |
8,172 |
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$ |
7,055 |
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$ |
22,826 |
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Add: |
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Interest expense |
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1,880 |
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4,177 |
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12,766 |
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3,054 |
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— |
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6,328 |
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30,733 |
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Income tax expense |
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181 |
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139 |
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682 |
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695 |
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124 |
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181 |
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682 |
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Depreciation and amortization expense |
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9,987 |
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8,290 |
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35,299 |
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11,367 |
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3,874 |
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15,882 |
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50,688 |
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Amortization of favorable and unfavorable contracts |
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280 |
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(134 |
) |
192 |
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308 |
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215 |
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280 |
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192 |
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Less: |
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Interest income |
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1 |
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4 |
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9 |
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12 |
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32 |
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1 |
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9 |
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EBITDA (3) |
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$ |
24,807 |
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$ |
20,055 |
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$ |
90,656 |
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$ |
53,363 |
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$ |
12,353 |
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$ |
29,725 |
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$ |
105,112 |
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Add: |
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Non-cash compensation expense |
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$ |
340 |
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$ |
460 |
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$ |
1,876 |
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$ |
3,440 |
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$ |
— |
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$ |
397 |
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$ |
1,972 |
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Adjustments related to MVC shortfall payments (4) |
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6,295 |
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4,366 |
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10,768 |
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— |
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— |
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6,562 |
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12,059 |
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Adjusted EBITDA (3) |
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$ |
31,442 |
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$ |
24,881 |
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$ |
103,300 |
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$ |
56,803 |
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$ |
12,353 |
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$ |
36,684 |
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$ |
119,143 |
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(1) We define EBITDA as net income plus (a) interest expense, (b) income tax expense; and (c) depreciation and amortization expense, less (x) interest income and (y) income tax benefit.
(2) We define adjusted EBITDA as EBITDA plus (i) non-cash compensation expense and (ii) adjustments related to MVC shortfall payments.
(3) EBITDA and adjusted EBITDA do not reflect adjustment for transaction costs. These unusual and non-recurring expenses are settled in cash.
(4) Adjustments related to MVC shortfall payments account for (i) the net increases or decreases in deferred revenue for MVC shortfall payments and (ii) our inclusion of expected annual MVC shortfall payments. We include or will include a proportional amount of these historical or expected minimum volume commitment shortfall payments in each quarter prior to the quarter in which we actually receive the shortfall payment.