Hi-Crush Inc (fka HCRSQ)

[Enterprising Investor]

The following is designed to be a very basic illustration to show results on a post-conversion basis.

Net income equals $0.30 basic and $0.29 diluted earnings per limited partner unit.

If you strip taxes out of the diluted net income of $.29 per limited partner unit at the 21% rate, the result is about $.23. I’m using the diluted number because it is highly likely that all units and equivalents get converted. This leaves very little wiggle room to earning the $.225 quarterly distribution. The dividend coverage ratio is 1.02. All of this may be intentional and previously mentioned as a targets. I haven't spent a great deal of time reading all of the past filings.

It should be noted that pro forma results for the period could be higher or lower due to the intricacies related to operating as a corporation versus through a pass-through entity.

Finally, HCLP’s results were impacted by a $6.2 million loss on extinguishment of debt this quarter. This equates to about $.07 per unit. Since this is non recurring, I would add this amount back in and remove the estimated taxes for my modeling purposes. The result is $.284 in earnings per unit. I’m now ready to get my hand slapped.

Trained professionals should understand my last sentence.