NET LOSS PER LIMITED PARTNER UNIT AND DISTRIBUTIONS | NET LOSS PER LIMITED PARTNER UNIT AND DISTRIBUTIONS Net Loss Per Limited Partner Unit The following is a reconciliation of net loss attributable to limited partners and the limited partner units used in the basic and diluted earnings per unit calculations for the three and six months ended June 30, 2017 and 2016 (in thousands, except unit and per unit data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (15,870 ) $ (7,396 ) $ (31,253 ) $ (22,915 ) General partner unit in-kind distribution (22 ) (26 ) (30 ) (26 ) Net loss attributable to partners $ (15,892 ) $ (7,422 ) $ (31,283 ) $ (22,941 ) General partner's interest (1) $ (329 ) $ (156 ) $ (654 ) $ (465 ) Class B Convertible limited partner interest (1) (3,489 ) (1,890 ) (6,823 ) (6,081 ) Limited partners' interest (1) Common $ (9,648 ) $ (3,953 ) $ (19,020 ) $ (11,782 ) Subordinated (2,426 ) (1,423 ) (4,786 ) (4,613 ) (1) General Partner's and limited partners’ interests are calculated based on the allocation of net losses for the period, net of the General Partner unit in-kind distributions. The Class B Convertible Unit interest is calculated based on the allocation of only net losses for the period. Three Months Ended June 30, Six Months Ended June 30, Common Units 2017 2016 2017 2016 Interest in net loss $ (9,648 ) $ (3,953 ) $ (19,020 ) $ (11,782 ) Effect of dilutive units - numerator (1) — — — — Dilutive interest in net loss $ (9,648 ) $ (3,953 ) $ (19,020 ) $ (11,782 ) Weighted-average units - basic 48,538,451 33,920,732 48,530,028 31,183,306 Effect of dilutive units - denominator (1) — — — — Weighted-average units - dilutive 48,538,451 33,920,732 48,530,028 31,183,306 Basic and diluted net loss per common unit $ (0.20 ) $ (0.12 ) $ (0.39 ) $ (0.38 ) Three Months Ended June 30, Six Months Ended June 30, Subordinated Units 2017 2016 2017 2016 Interest in net loss $ (2,426 ) $ (1,423 ) $ (4,786 ) $ (4,613 ) Effect of dilutive units - numerator (1) — — — — Dilutive interest in net loss $ (2,426 ) $ (1,423 ) $ (4,786 ) $ (4,613 ) Weighted-average units - basic 12,213,713 12,213,713 12,213,713 12,213,713 Effect of dilutive units - denominator (1) — — — — Weighted-average units - dilutive 12,213,713 12,213,713 12,213,713 12,213,713 Basic and diluted net loss per subordinated unit $ (0.20 ) $ (0.12 ) $ (0.39 ) $ (0.38 ) (1) Because we had a net loss for all periods for common units and the subordinated units, the effect of the dilutive units would be anti-dilutive to the per unit calculation. Therefore, the weighted average units outstanding are the same for basic and dilutive net loss per unit for those periods. The weighted average units that were not included in the computation of diluted per unit amounts were 398,673 and 159,509 unvested awards granted under the LTIP for the three and six months ended June 30, 2017, respectively. The weighted average units that were not included in the computation of diluted per unit amounts were 55,202 and 7,074 for the three and six months ended June 30, 2016, respectively. Our calculation of the number of weighted-average units outstanding includes the common units that have been awarded to our directors that are deferred under our Non-Employee Director Deferred Compensation Plan. Cash Distributions Our agreement of limited partnership (as amended and restated, the “Partnership Agreement”), requires that within 45 days after the end of each quarter, we distribute all of our available cash to unitholders of record on the applicable record date, as determined by our General Partner. There is no guarantee that we will pay the minimum quarterly distribution on our units in any quarter. Beginning with the third quarter of 2014, until such time that we have a distributable cash flow divided by cash distributions ratio (“Distributable Cash Flow Ratio”) of at least 1.0 , Holdings, the indirect holder of all of our subordinated units, waived the right to receive distributions on any subordinated units that would cause the Distributable Cash Flow Ratio to be less than 1.0 . In addition, the First Amendment (as defined in Note 5) imposed additional restrictions on our ability to declare and pay quarterly cash distributions with respect to our subordinated units. Additionally, we are restricted under the Fifth Amendment from paying a distribution with respect to our common units until our Consolidated Total Leverage Ratio is below 5.0 . See Note 5. The board of directors of our General Partner suspended paying a quarterly distribution with respect to the fourth quarter of 2015, every quarter of 2016 and the first two quarters of 2017 to reserve any excess cash for the operation of our business. The board of directors of our General Partner and our management believe this suspension to be in the best interest of our unitholders and will continue to evaluate our ability to reinstate the distribution in future periods. Paid In-Kind Distributions Class B Convertible Units. As of June 30, 2017 , the Class B Convertible Units consisted of 17,709,865 of such units including the additional Class B Convertible Units issued in-kind as a distribution (“Class B PIK Units”). The Class B Convertible Units are not participating securities for purposes of the earnings per unit calculation. Commencing with the quarter ended September 30, 2014 and until converted, as long as certain requirements are met, the holders of the Class B Convertible Units will receive quarterly distributions in an amount equal to $0.3257 per unit. These distributions will be paid quarterly in Class B PIK Units within 45 days after the end of each quarter. Our General Partner was entitled, and has exercised its right, to retain its 2.0% general partner interest in us in connection with the original issuance of the Class B Convertible Units. In connection with future distributions of Class B PIK Units, the General Partner is entitled to a corresponding distribution to maintain its 2.0% general partner interest in us. The Class B Convertible Units have the same rights, preferences and privileges, and are subject to the same duties and obligations, as our common units, with certain exceptions. See Note 7. The following table presents the Class B PIK Units distributions issued on the Class B Convertible Units during 2017 (in thousands, except per unit and in-kind distribution units): Payment Date Attributable to the Quarter Ended Per Unit Distribution In-Kind Class B Convertible Unit In-Kind Class B Convertible Distributions (1) In-Kind Unit to General Partner In-Kind General Partner Distribution Value (1) 2017 August 11, 2017 June 30, 2017 $ 0.3257 309,946 $ 983 6,325 $ 20 May 11, 2017 March 31, 2017 $ 0.3257 304,615 $ 1,060 6,216 $ 22 2016 February 14, 2017 December 31, 2016 $ 0.3257 299,375 $ 404 6,109 $ 8 (1) The fair value was calculated as required, based on the common unit price at the quarter end date for the period attributable to the distribution, multiplied by the number of units distributed. |