HOUSTON--(BUSINESS WIRE)--Feb. 28, 2008--Exterran Holdings, Inc.
(NYSE:EXH) and Exterran Partners, L.P. (NASDAQ:EXLP) today reported
financial results for the fourth quarter and full year 2007.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported net income for the fourth quarter 2007
of $58.5 million, or $0.87 per share, compared to a net loss for the
third quarter 2007 of $75.4 million, or a $1.55 loss per share.
Fourth quarter 2007 results include merger and integration pretax
charges of $9.3 million, or $0.08 per share, related to the merger of
Hanover Compressor Company and Universal Compression Holdings, Inc.
into Exterran Holdings. Fourth quarter results were also impacted by
certain international tax benefits that reduced the effective tax rate
during the period. Third quarter 2007 results included pretax charges
related to merger, integration and refinancing activities and asset
impairments that totaled $179.9 million, or $2.37 per share.
Revenue for the fourth quarter was $853.4 million and EBITDA, as
adjusted (as defined below), was $212.5 million. For the twelve months
ended December 31, 2007, revenue was $2,540.5 million, net income was
$34.6 million, or $0.75 per share, including pretax charges related to
merger, integration and refinancing activities that totaled $192.5
million, or $2.55 per share, and EBITDA, as adjusted, was $621.1
million.
The merger of Hanover and Universal was completed on August 20,
2007, and periods prior to the merger reflect only Hanover's results.
All share and per share amounts have been retroactively adjusted to
reflect the merger conversion ratio of 0.325 shares of Exterran
Holdings common stock for each share of Hanover common stock for all
periods discussed or presented.
Exterran Holdings repurchased 617,100 shares of its common stock
during the fourth quarter at an average price of $81.00 per share for
a total of approximately $50 million. Including the repurchases in the
fourth quarter, Exterran Holdings has now repurchased 1,258,400 shares
of its common stock at an average price of $79.44 for a total of $100
million from August 20, 2007 through December 31, 2007.
Stephen A. Snider, Exterran Holdings' President and CEO said, "I
am pleased with our strong financial results in fourth quarter 2007,
the first period to include a full contribution from both predecessor
companies. These results reflect the hard work and dedication of our
outstanding team of employees. The integration of Hanover and
Universal is going well and customer response to our enhanced
worldwide integrated product and service offering has been
outstanding. Despite certain market challenges in North America, I
expect 2008 to be an exciting year for our company due to continuing
overall demand for our core contract operations, substantial backlog
of new orders and ample growth opportunities, particularly in
international markets."
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $36.6 million and net income
of $7.3 million in the fourth quarter 2007, compared to revenue of
$34.7 million and net income of $7.5 million in the third quarter
2007. EBITDA, as further adjusted (as defined below), totaled $20.1
million in the fourth quarter 2007 compared to $19.1 million in the
third quarter 2007. Distributable cash flow (as defined below) totaled
$14.1 million in the fourth quarter 2007 compared to $13.5 million in
the third quarter 2007.
Exterran Partners reported revenue of $107.7 million and net
income of $19.4 million in the twelve months ended December 31, 2007.
EBITDA, as further adjusted, totaled $59.1 million in 2007 and
distributable cash flow was $40.5 million.
Earlier this month, Exterran Partners paid a cash distribution for
the fourth quarter of $0.425 per limited partner unit, an increase of
6.25 percent as compared to a cash distribution for the third quarter
of $0.40 per limited partner unit.
"Exterran Partners achieved outstanding financial results in its
first full year of operations, highlighted by strong activity levels,
an acquisition from Exterran Holdings in July, and two increases in
its cash distribution," said Mr. Snider, Chairman, President and CEO
of Exterran Partners' general partner. "Despite the challenges in the
North American market, our outlook for Exterran Partners is optimistic
due to continuing demand for compression services, implementation of
efficiency enhancements in our field operations, and significant
ongoing acquisition opportunities largely due to our relationship with
Exterran Holdings."
Conference Call Details
Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P.
(NASDAQ:EXLP) announce the following schedule and teleconference
information for its fourth quarter 2007 earnings release:
-- Teleconference: Thursday, February 28, 2008 at 11:00 a.m.
Eastern Time (10:00 a.m. Central Time). To access the call,
United States and Canadian participants should dial
866-454-4205. International participants should dial
913-312-1419 at least 10 minutes before the scheduled start
time. Please reference Exterran conference call number
5224782.
-- Live Webcast: The webcast will be available in listen-only
mode via the Company's website: www.exterran.com.
-- Webcast Replay: For those unable to participate, a replay will
be available from 1:30 p.m. Eastern Time on Thursday, February
28, until 1:30 p.m. Eastern Time Thursday, March 6, 2008. To
listen to the replay, please dial 888-203-1112 in the U.S. and
Canada, or 719-457-0820 internationally and enter access code
5829714.
With respect to Exterran Holdings, EBITDA, as adjusted, a non-GAAP
measure, is defined as income from continuing operations plus income
taxes, interest expense (including debt extinguishment costs and gain
or loss on termination of interest rate swaps), depreciation and
amortization expense, impairment charges, merger and integration
expenses, minority interest, excluding non-recurring items, and
extraordinary gains or losses.
With respect to Exterran Partners, distributable cash flow, a
non-GAAP measure, is defined as net income plus income taxes,
depreciation expense, non-cash selling, general and administrative
expenses, interest expense and any amounts by which cost of sales and
selling, general and administrative costs are reduced as a result of
caps on these costs contained in the omnibus agreement to which
Exterran Holdings and Exterran Partners are parties (the "Omnibus
Agreement"), which amounts are treated as capital contributions from
Exterran Holdings for accounting purposes, less cash interest expense
and maintenance capital expenditures, and excluding non-recurring
items.
With respect to Exterran Partners, EBITDA, as further adjusted, a
non-GAAP measure, is defined as net income plus income taxes, interest
expense, depreciation expense, non-cash selling, general and
administrative expenses and any amounts by which cost of sales and
selling, general and administrative costs are reduced as a result of
caps on these costs contained in the Omnibus Agreement, which amounts
are treated as capital contributions from Exterran Holdings for
accounting purposes, and excluding non-recurring items.
With respect to Exterran Holdings, Gross Margin, a non-GAAP
measure, is defined as total revenue less cost of sales (excluding
depreciation and amortization expense).
With respect to Exterran Partners, Gross Margin, as adjusted, a
non-GAAP measure, is defined as total revenue less cost of sales
(excluding depreciation expense) plus any amounts by which cost of
sales are reduced as a result of caps on these costs contained in the
Omnibus Agreement, which amounts are treated as capital contributions
from Exterran Holdings for accounting purposes.
About Exterran
Exterran Holdings, Inc. is a global market leader in full service
natural gas compression and a premier provider of operations,
maintenance, service and equipment for oil and gas production,
processing and transportation applications. Exterran Holdings serves
customers across the energy spectrum -- from producers to transporters
to processors to storage owners. Headquartered in Houston, Texas,
Exterran and its over 10,000 employees have operations in more than 30
countries worldwide.
Exterran Partners was formed by Exterran Holdings to provide
natural gas contract compression services to customers throughout the
United States. Exterran Holdings owns 51% of Exterran Partners.
For more information, visit www.exterran.com.
Forward Looking Statements
All statements in this release (and oral statements made regarding
the subjects of this release) other than historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of uncertainties and factors that could
cause actual results to differ materially from such statements, many
of which are outside the control of Exterran Holdings, Inc. and
Exterran Partners, L.P. (the "Companies"). Forward-looking information
includes, but is not limited to: the Companies' operational and
financial strategies, and the Companies' ability to successfully
effect those strategies; the Companies' financial and operational
outlook and ability to fulfill that outlook; demand for the companies'
products and services and growth opportunities for those products and
services; and the intent and ability of Exterran Holdings to drop-down
additional assets into Exterran Partners.
While the Companies believe that the assumptions concerning future
events are reasonable, they caution that there are inherent
difficulties in predicting certain important factors that could impact
the accuracy of the forward-looking information. Among the factors
that could cause results to differ materially from those indicated by
such forward-looking statements include: changes in Exterran Holdings'
credit rating and the factors that impact its credit rating; the
failure to realize anticipated synergies from the merger; changes in
master limited partnership equity markets and overall financial
markets that impact the effect of the drop-down of additional assets
from Exterran Holdings to Exterran Partners; changes in tax laws that
impact master limited partnerships, including drop-downs of additional
assets into Exterran Partners; conditions in the oil and gas industry,
including a sustained decrease in the level of supply or demand for
natural gas and the impact on the price of natural gas; Exterran
Holdings' ability to timely and cost-effectively obtain components
necessary to conduct the Companies' business; changes in political or
economic conditions in key operating markets, including international
markets; the Companies' ability to timely and cost-effectively
integrate their enterprise resource planning systems; changes in
safety and environmental regulations pertaining to the production and
transportation of natural gas; and as to each of the Companies, the
performance of the other entity.
These forward-looking statements are also affected by the risk
factors, forward-looking statements and challenges and uncertainties
described in Exterran Holdings' Quarterly Report on Form 10-Q for the
quarter ended September 30, 2007, Exterran Partners' Quarterly Report
on Form 10-Q for the quarter ended September 30, 2007 and Exterran
Holdings' Registration Statement on Form S-4 (File No. 333-141695),
and those set forth from time to time in Exterran Holdings' and
Exterran Partners' filings with the Securities and Exchange
Commission, which are currently available at www.exterran.com. Except
as required by law, the Companies expressly disclaim any intention or
obligation to revise or update any forward-looking statements whether
as a result of new information, future events or otherwise.
EXTERRAN HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Three Months Ended
---------------------------------------
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Revenues:
North America contract
operations $ 202,956 $ 148,986 $ 101,546
International contract
operations 111,414 88,457 69,410
Aftermarket services 102,307 75,045 50,463
Fabrication 436,698 432,114 240,024
------------ ------------- ------------
853,375 744,602 461,443
------------ ------------- ------------
Costs and expenses:
Cost of sales (excluding
depreciation and
amortization expense):
North America contract
operations 86,300 64,581 39,227
International contract
operations 40,441 35,439 26,080
Aftermarket services 82,633 58,049 38,889
Fabrication 362,425 364,749 202,065
Selling, general and
administrative 89,659 71,191 53,646
Merger and integration
expenses 9,326 34,008 -
Depreciation and
amortization 85,822 66,040 49,657
Fleet impairment - 61,945 -
Interest expense (1) 34,959 38,680 29,684
Debt extinguishment costs - 70,150 -
Equity in (income) loss of
non-consolidated
affiliates (2) (5,541) 5,005 (2,039)
Other (income) expense,
net (15,002) (13,578) (5,461)
------------ ------------- ------------
771,022 856,259 431,748
------------ ------------- ------------
Income (loss) from continuing
operations before income
taxes and minority interest 82,353 (111,657) 29,695
Provision (benefit) for income
taxes 19,979 (38,692) (427)
Minority interest, net of
taxes 3,880 2,426 -
------------ ------------- ------------
Income (loss) from continuing
operations 58,494 (75,391) 30,122
Income from discontinued
operations, net of tax - - -
Gain (loss) from sales of
discontinued operations, net
of tax - - -
------------ --------------------------
Income (loss) before
cumulative effect of
accounting charges 58,494 (75,391) 30,122
Cumulative effect of
accounting change, net of tax - - -
------------ ------------- ------------
Net income (loss) $ 58,494 $ (75,391) $ 30,122
============ ============= ============
Basic income (loss) per common
share (3):
Income (loss) from
continuing operations $ 0.90 $ (1.55) $ 0.91
Income from discontinued
operations, net of tax - - -
Cumulative effect of
accounting changes, net
of tax - - -
------------ ------------- ------------
Net income (loss) $ 0.90 $ (1.55) $ 0.91
============ ============= ============
Diluted income (loss) per
common share (3):
Income (loss) from
continuing operations (4) $ 0.87 $ (1.55) $ 0.84
Income from discontinued
operations, net of tax - - -
Cumulative effect of
accounting changes, net
of tax - - -
------------ ------------- ------------
Net income (loss) $ 0.87 $ (1.55) $ 0.84
============ ============= ============
Weighted average common and
equivalent shares outstanding
(3):
Basic 65,276 48,771 33,003
------------ ------------- ------------
Diluted 68,715 48,771 38,092
------------ ------------- ------------
Year Ended
--------------------------
December 31, December 31,
2007 2006
------------ -------------
Revenues:
North America contract
operations $ 551,140 $ 384,292
International contract
operations 336,807 263,228
Aftermarket services 274,489 179,043
Fabrication 1,378,049 766,758
------------ -------------
2,540,485 1,593,321
------------ -------------
Costs and expenses:
Cost of sales (excluding
depreciation and
amortization expense):
North America contract
operations 232,238 156,554
International contract
operations 126,861 96,631
Aftermarket services 214,497 139,633
Fabrication 1,144,580 653,719
Selling, general and
administrative 265,057 197,282
Merger and integration
expenses 46,723 -
Depreciation and
amortization 252,716 175,927
Fleet impairment 61,945 -
Interest expense (1) 130,092 123,496
Debt extinguishment costs 70,150 5,902
Equity in (income) loss of
non-consolidated
affiliates (2) (12,498) (19,430)
Other (income) expense,
net (44,646) (50,897)
------------ -------------
2,487,715 1,478,817
------------ -------------
Income (loss) from continuing
operations before income
taxes and minority interest 52,770 114,504
Provision (benefit) for income
taxes 11,894 28,782
Minority interest, net of
taxes 6,307 -
------------ -------------
Income (loss) from continuing
operations 34,569 85,722
Income from discontinued
operations, net of tax - 368
Gain (loss) from sales of
discontinued operations, net
of tax - 63
------------ -------------
Income (loss) before
cumulative effect of
accounting charges 34,569 86,153
Cumulative effect of
accounting change, net of tax - 370
------------ -------------
Net income (loss) $ 34,569 $ 86,523
============ =============
Basic income (loss) per common
share (3):
Income (loss) from
continuing operations $ 0.76 $ 2.61
Income from discontinued
operations, net of tax - 0.01
Cumulative effect of
accounting changes, net
of tax - 0.01
------------ -------------
Net income (loss) $ 0.76 $ 2.63
============ =============
Diluted income (loss) per
common share (3):
Income (loss) from
continuing operations (4) $ 0.75 $ 2.48
Income from discontinued
operations, net of tax - 0.02
Cumulative effect of
accounting changes, net
of tax - 0.01
------------ -------------
Net income (loss) $ 0.75 $ 2.51
============ =============
Weighted average common and
equivalent shares outstanding
(3):
Basic 45,580 32,883
------------ -------------
Diluted 46,300 36,411
------------ -------------
(1) Includes termination of interest rate swaps charges of $7.0
million in the third quarter of 2007 related to debt refinancing.
(2) Includes impairment of investment in non-consolidated affiliate of
$6.7 million in the third quarter of 2007.
(3) Adjusted for the Hanover common share conversion ratio in the
merger of Hanover and Universal for the periods ended December 31,
2006.
(4) Net income for the diluted earnings per share calculation for the
three-month periods ending December 31, 2007 and 2006 is adjusted to
add back interest expense and amortization of financing costs, net of
tax, relating to the Company's convertible senior notes totaling $1.2
million and $2.2 million, respectively. Net income for the diluted
earnings per share calculation for the years ending December 31, 2007
and 2006 is adjusted to add back interest expense and amortization of
financing costs, net of tax, relating to the Company's convertible
senior notes totaling $0.7 million and $4.7 million, respectively.
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
---------------------------------------
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Revenues:
North America contract
operations $ 202,956 $ 148,986 $ 101,546
International contract
operations 111,414 88,457 69,410
Aftermarket services 102,307 75,045 50,463
Fabrication 436,698 432,114 240,024
------------ ------------- ------------
Total $ 853,375 $ 744,602 $ 461,443
============ ============= ============
Gross Margin (1):
North America contract
operations $ 116,656 $ 84,405 $ 62,319
International contract
operations 70,973 53,018 43,330
Aftermarket services 19,674 16,996 11,574
Fabrication 74,273 67,365 37,959
------------ ------------- ------------
Total $ 281,576 $ 221,784 $ 155,182
============ ============= ============
Selling, General and
Administrative $ 89,659 $ 71,191 $ 53,646
% of Revenues 11% 10% 12%
EBITDA, as adjusted (1) $ 212,460 $ 165,909 $ 109,036
% of Revenues 25% 22% 24%
Capital Expenditures $ 119,279 $ 90,714 $ 73,411
Less: Proceeds from Sale of
PP&E (6,463) (8,591) (54,942)
------------ ------------- ------------
Net Capital Expenditures $ 112,816 $ 82,123 $ 18,469
============ ============= ============
Gross Margin Percentage:
North America contract
operations 57% 57% 61%
International contract
operations 64% 60% 62%
Aftermarket services 19% 23% 23%
Fabrication 17% 16% 16%
Total 33% 30% 34%
Reconciliation of GAAP to Non-
GAAP Financial Information:
Income from continuing
operations $ 58,494 $ (75,391) $ 30,122
Depreciation and
amortization 85,822 66,040 49,657
Fleet impairment - 61,945 -
Impairment of investment
in non-consolidated
affiliate - 6,743 -
Interest expense 34,959 38,680 29,684
Debt extinguishment costs - 70,150 -
Merger and integration
expenses 9,326 34,008 -
Minority interest 3,880 2,426 -
Provision (benefit) for
income taxes 19,979 (38,692) (427)
------------ ------------- ------------
EBITDA, as adjusted (1) 212,460 165,909 109,036
Selling, general and
administrative 89,659 71,191 53,646
Equity in (income) loss of
non-consolidated
affiliates (5,541) 5,005 (2,039)
Less: Impairment of
investment in non-
consolidated affiliate - (6,743) -
Other (income) expense (15,002) (13,578) (5,461)
------------ ------------- ------------
Gross Margin (1) $ 281,576 $ 221,784 $ 155,182
============ ============= ============
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Debt $ 2,333,924 $ 2,246,063 $ 1,369,931
Stockholders' Equity $ 3,162,260 $ 3,151,359 $ 1,014,282
Total Debt to Capitalization 42.5% 41.6% 57.5%
Year Ended
---------------------------
December 31, December 31,
2007 2006
-------------- ------------
Revenues:
North America contract
operations $ 551,140 $ 384,292
International contract
operations 336,807 263,228
Aftermarket services 274,489 179,043
Fabrication 1,378,049 766,758
-------------- ------------
Total $ 2,540,485 $ 1,593,321
============== ============
Gross Margin (1):
North America contract
operations $ 318,902 $ 227,738
International contract
operations 209,946 166,597
Aftermarket services 59,992 39,410
Fabrication 233,469 113,039
-------------- ------------
Total $ 822,309 $ 546,784
============== ============
Selling, General and
Administrative $ 265,057 $ 197,282
% of Revenues 10% 12%
EBITDA, as adjusted (1) $ 621,139 $ 419,829
% of Revenues 24% 26%
Capital Expenditures $ 352,190 $ 246,583
Less: Proceeds from Sale of
PP&E (36,277) (78,415)
-------------- ------------
Net Capital Expenditures $ 315,913 $ 168,168
============== ============
Gross Margin Percentage:
North America contract
operations 58% 59%
International contract
operations 62% 63%
Aftermarket services 22% 22%
Fabrication 17% 15%
Total 32% 34%
Reconciliation of GAAP to Non-
GAAP Financial Information:
Income from continuing
operations $ 34,569 $ 85,722
Depreciation and
amortization 252,716 175,927
Fleet impairment 61,945 -
Impairment of investment
in non-consolidated
affiliate 6,743 -
Interest expense 130,092 123,496
Debt extinguishment costs 70,150 5,902
Merger and integration
expenses 46,723 -
Minority interest 6,307 -
Provision (benefit) for
income taxes 11,894 28,782
-------------- ------------
EBITDA, as adjusted (1) 621,139 419,829
Selling, general and
administrative 265,057 197,282
Equity in (income) loss of
non-consolidated
affiliates (12,498) (19,430)
Less: Impairment of
investment in non-
consolidated affiliate (6,743) -
Other (income) expense (44,646) (50,897)
-------------- ------------
Gross Margin (1) $ 822,309 $ 546,784
============== ============
Debt
Stockholders' Equity
Total Debt to Capitalization
------------------------------------------------------------
(1) Management believes disclosure of EBITDA, as adjusted, and Gross
Margin, non-GAAP measures, provide useful information to investors
because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our
performance than GAAP results alone. Management uses EBITDA, as
adjusted, and Gross Margin as supplemental measures to review current
period operating performance, comparability measures and performance
measures for period to period comparisons. In addition, EBITDA, as
adjusted, is used by management as a valuation measure.
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands; dollars in millions)
December 31, September 30,
2007 2007
------------ -------------
Total Available Horsepower:
North America contract
operations 4,514 4,475
International contract
operations 1,447 1,442
------------ -------------
Total 5,961 5,917
============ =============
Total Operating Horsepower:
North America contract
operations 3,632 3,719
International contract
operations 1,306 1,290
------------ -------------
Total 4,938 5,009
============ =============
Horsepower Utilization:
North America contract
operations 80% 83%
International contract
operations 90% 89%
Total 83% 85%
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Fabrication Backlog:
Compression & accessory $ 322 $ 395 $ 325
Production & processing 788 720 483
------------ ------------- ------------
Total $ 1,110 $ 1,115 $ 808
============ ============= ============
EXTERRAN PARTNERS, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
Three Months Ended
---------------------------------------
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Revenue $ 36,575 $ 34,711 $ 13,465
Costs and expenses:
Cost of sales (excluding
depreciation) 15,511 14,986 5,271
Depreciation 5,660 5,160 2,108
Selling, general and
administrative 4,134 3,400 1,566
Interest expense 3,872 3,560 1,815
Other (income) expense,
net (4) (9) -
------------ ------------- ------------
Total costs and
expenses 29,173 27,097 10,760
------------ ------------- ------------
Income before income taxes 7,402 7,614 2,705
Income tax (benefit) expense 90 132 -
------------ ------------- ------------
Net income $ 7,312 $ 7,482 $ 2,705
============ ============= ============
General partner interest in
net income $ 205 $ 150 $ 54
------------ ------------- ------------
Limited partner interest in
net income $ 7,107 $ 7,332 $ 2,651
============ ============= ============
Weighted average limited
partners' units outstanding:
Basic 16,679 16,285 4,810
------------ ------------- ------------
Diluted 16,753 16,334 4,811
------------ ------------- ------------
Earnings per limited partner
unit:
Basic $ 0.43 $ 0.45 $ 0.55
============ ============= ============
Diluted $ 0.42 $ 0.45 $ 0.55
============ ============= ============
Year Ended
-------------------------
December 31, December 31,
2007 2006
------------ ------------
Revenue $ 107,675 $ 13,465
Costs and expenses:
Cost of sales (excluding
depreciation) 46,066 5,271
Depreciation 16,570 2,108
Selling, general and
administrative 13,730 1,566
Interest expense 11,658 1,815
Other (income) expense,
net (22) -
------------ ------------
Total costs and
expenses 88,002 10,760
------------ ------------
Income before income taxes 19,673 2,705
Income tax (benefit)
expense 272 -
------------ ------------
Net income $ 19,401 $ 2,705
============ ============
General partner interest in
net income $ 447 $ 54
------------ ------------
Limited partner interest in
net income $ 18,954 $ 2,651
============ ============
Weighted average limited
partners' units outstanding:
Basic 14,604 4,810
------------ ------------
Diluted 14,702 4,811
------------ ------------
Earnings per limited partner
unit:
Basic $ 1.30 $ 0.55
============ ============
Diluted $ 1.29 $ 0.55
============ ============
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands, except per unit amounts)
Three Months Ended
---------------------------------------
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Revenue $ 36,575 $ 34,711 $ 13,465
Gross Margin, as adjusted (1) $ 23,755 $ 22,581 $ 9,039
EBITDA, as further adjusted
(1) $ 20,122 $ 19,125 $ 7,277
% of Revenue 55% 55% 54%
Capital Expenditures $ 8,585 $ 7,627 $ 332
Proceeds from Sale of PP&E - - -
------------ ------------- ------------
Net Capital Expenditures $ 8,585 $ 7,627 $ 332
============ ============= ============
Gross Margin percentage, as
adjusted 65% 65% 67%
Distributable cash flow (2) $ 14,108 $ 13,505 $ 5,200
Distributions per Limited
Partner Unit $ 0.425 $ 0.40 $ 0.28
Distribution to All
Unitholders, including
Incentive Distributions $ 7,292 $ 6,808 $ 3,588
Distributable Cash Flow
Coverage 1.93x 1.98x 1.45x
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Debt $ 217,000 $ 220,000 $ 125,000
Total Partners' Capital $ 145,799 $ 147,769 $ 69,457
Total Debt to Capitalization 60% 60% 64%
Total Debt to Annualized
EBITDA, as further adjusted
(1) 2.7x 2.9x 4.3x
EBITDA, as further adjusted
(1) to Interest Expense 5.2x 5.4x 4.0x
------------------------------
Year Ended
--------------------------
December 31, December 31,
2007 2006
------------ -------------
Revenue $ 107,675 $ 13,465
Gross Margin, as adjusted (1) $ 70,249 $ 9,039
EBITDA, as further adjusted
(1) $ 59,138 $ 7,277
% of Revenue 55% 54%
Capital Expenditures $ 32,362 $ 332
Proceeds from Sale of PP&E - -
------------ -------------
Net Capital Expenditures $ 32,362 $ 332
============ =============
Gross Margin percentage, as
adjusted 65% 67%
Distributable cash flow (2) $ 40,529 $ 5,200
Distributions per Limited
Partner Unit $ 1.53 $ 0.28
Distribution to All
Unitholders, including
Incentive Distributions $ 24,574 $ 3,588
Distributable Cash Flow
Coverage 1.65x 1.45x
December 31, December 31,
2007 2006
------------ -------------
Debt $ 217,000 $ 125,000
Total Partners' Capital $ 145,799 $ 69,457
Total Debt to Capitalization 60% 64%
Total Debt to Annualized
EBITDA, as further adjusted
(1) 0.9x 4.3x
EBITDA, as further adjusted
(1) to Interest Expense 5.1x 4.0x
------------------------------
(1) Management believes disclosure of EBITDA, as further adjusted, and
Gross Margin, as adjusted, non-GAAP measures, provide useful
information to investors because, when viewed with our GAAP results
and accompanying reconciliations, they provide a more complete
understanding of our performance than GAAP results alone. Management
uses EBITDA, as further adjusted, and Gross Margin, as adjusted, as
supplemental measures to review current period operating performance,
comparability measures and performance measures for period to period
comparisons. In addition, EBITDA, as further adjusted, is used by
management as a valuation measure.
(2) Distributable cash flow, a non-GAAP measure, is a significant
liquidity metric used by management to compare basic cash flows
generated by us to the cash distributions we expect to pay our
partners. Using this metric, management can quickly compute the
coverage ratio of estimated cash flows to planned cash distributions.
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
---------------------------------------
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Reconciliation of GAAP to Non-
GAAP Financial Information:
Net income $ 7,312 $ 7,482 $ 2,705
Income tax (benefit)
expense 90 132 -
Depreciation 5,660 5,160 2,108
Cap on operating and
selling, general and
administrative costs
provided by Exterran
Holdings ("EXH") 2,687 2,847 526
Non-cash selling, general
and administrative costs 501 792 123
Non-recurring cash
selling, general and
administrative
reimbursement (1) - (848) -
Interest expense, net of
interest income 3,872 3,560 1,815
------------ ------------- ------------
EBITDA, as further
adjusted (2) 20,122 19,125 7,277
Cash selling, general and
administrative costs (see
note 1 below) 3,633 2,608 1,762
Less: cap on selling,
general and
administrative costs
provided by EXH - - -
Plus: Non-recurring cash
selling, general and
administrative
reimbursement (1) - 848 -
------------ ------------- ------------
Gross Margin, as adjusted
for operating cost caps
provided by EXH (2) $ 23,755 $ 22,581 $ 9,039
Less: Cash interest
expense (3,643) (3,501) (1,771)
Less: Cash selling,
general and
administrative, as
adjusted for cost caps
provided by EXH (3,633) (2,608) (1,762)
Less: Income tax
(expense) benefit (90) (132) -
Less: Maintenance capital
expenditures (2,281) (1,987) (306)
Less: Non-recurring cash
selling, general and
administrative
reimbursement (1) - (848) -
------------ ------------- ------------
Distributable cash flow
(3) $ 14,108 $ 13,505 $ 5,200
============ ============= ============
Cash flows from operating
activities $ 9,473 $ 11,305 $ 2,788
Amortization of debt
issuance cost (67) (59) (44)
Cap on operating and
selling, general and
administrative costs
provided by EXH 2,687 2,847 526
Interest expense, net of
interest income 3,872 3,560 1,815
Cash interest expense (3,643) (3,501) (1,771)
Maintenance capital
expenditures (2,281) (1,987) (306)
Change in current
assets/liabilities 4,067 2,314 2,192
Change in non-current
assets/liabilities - (126) -
Less: Non-recurring cash
selling, general and
administrative
reimbursement (1) - (848) -
------------ ------------- ------------
Distributable cash flow
(3) $ 14,108 $ 13,505 $ 5,200
============ ============= ============
Year Ended
-------------------------
December 31, December 31,
2007 2006
------------ ------------
Reconciliation of GAAP to Non-
GAAP Financial Information:
Net income $ 19,401 $ 2,705
Income tax (benefit)
expense 272 -
Depreciation 16,570 2,108
Cap on operating and
selling, general and
administrative costs
provided by Exterran
Holdings ("EXH") 8,901 526
Non-cash selling, general
and administrative costs 3,184 123
Non-recurring cash
selling, general and
administrative
reimbursement (1) (848) -
Interest expense, net of
interest income 11,658 1,815
------------ ------------
EBITDA, as further
adjusted (2) 59,138 7,277
Cash selling, general and
administrative costs (see
note 1 below) 10,546 1,762
Less: cap on selling,
general and
administrative costs
provided by EXH (283) -
Plus: Non-recurring cash
selling, general and
administrative
reimbursement (1) 848 -
------------ ------------
Gross Margin, as adjusted
for operating cost caps
provided by EXH (2) $ 70,249 $ 9,039
Less: Cash interest
expense (11,258) (1,771)
Less: Cash selling,
general and
administrative, as
adjusted for cost caps
provided by EXH (10,263) (1,762)
Less: Income tax
(expense) benefit (272) -
Less: Maintenance capital
expenditures (7,079) (306)
Less: Non-recurring cash
selling, general and
administrative
reimbursement (1) (848) -
------------ ------------
Distributable cash flow
(3) $ 40,529 $ 5,200
============ ============
Cash flows from operating
activities $ 34,358 $ 2,788
Amortization of debt
issuance cost (238) (44)
Cap on operating and
selling, general and
administrative costs
provided by EXH 8,901 526
Interest expense, net of
interest income 11,658 1,815
Cash interest expense (11,258) (1,771)
Maintenance capital
expenditures (7,079) (306)
Change in current
assets/liabilities 5,035 2,192
Change in non-current
assets/liabilities - -
Less: Non-recurring cash
selling, general and
administrative
reimbursement (1) (848) -
------------ ------------
Distributable cash flow
(3) $ 40,529 $ 5,200
============ ============
(1) Consists of a cash reimbursement from Exterran Holdings of non-
cash merger-related expenses incurred by Exterran Partners.
(2) Management believes disclosure of EBITDA, as further adjusted, and
Gross Margin, as adjusted, non-GAAP measures, provide useful
information to investors because, when viewed with our GAAP results
and accompanying reconciliations, they provide a more complete
understanding of our performance than GAAP results alone. Management
uses EBITDA, as further adjusted, and Gross Margin, as adjusted, as
supplemental measures to review current period operating performance,
comparability measures and performance measures for period to period
comparisons. In addition, EBITDA, as further adjusted, is used by
management as a valuation measure.
(3) Distributable cash flow, a non-GAAP measure, is a significant
liquidity metric used by management to compare basic cash flows
generated by us to the cash distributions we expect to pay our
partners. Using this metric, management can quickly compute the
coverage ratio of estimated cash flows to planned cash distributions.
EXTERRAN PARTNERS, L.P.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands)
Three Months Ended
---------------------------------------
December 31, September 30, December 31,
2007 2007 2006
------------ ------------- ------------
Total Available Horsepower (at
period end) 723 703 343
============ ============= ============
Average Operating Horsepower 667 632 330
============ ============= ============
Horsepower Utilization:
Spot (at period end) 95% 95% 97%
Average 94% 95% 99%
Combined U.S. Contract
Operations Horsepower of
Exterran Holdings and
Exterran Partners covered by
contracts converted to
service agreements (at
period end) (1) 1,294 1,201 1,114
Total Available U.S. Contract
Operations Horsepower of
Exterran Holdings and
Exterran Partners (at period
end) (1) 4,403 4,365 2,069
% of U.S. Contract Operations
Horsepower of Exterran
Holdings and Exterran
Partners under Converted
Contract Form (at period end)
(1) 29.4% 27.5% 53.8%
Year Ended
--------------------------
December 31, December 31,
2007 2006
------------ -------------
Total Available Horsepower (at
period end) 723 343
============ =============
Average Operating Horsepower 496 330
============ =============
Horsepower Utilization:
Spot (at period end) 93% 97%
Average 95% 99%
Combined U.S. Contract
Operations Horsepower of
Exterran Holdings and
Exterran Partners covered by
contracts converted to
service agreements (at
period end) (1) 1,294 1,114
Total Available U.S. Contract
Operations Horsepower of
Exterran Holdings and
Exterran Partners (at period
end) (1) 4,403 2,069
% of U.S. Contract Operations
Horsepower of Exterran
Holdings and Exterran
Partners under Converted
Contract Form (at period end)
(1) 29.4% 53.8%
(1) Includes only horsepower of Universal Compression, Inc. at
December 31, 2006.
CONTACT: Exterran
David Oatman, 713-335-7460 (Investors)
Pat (Patricia) Wente, 713-335-7011 (Media)
Rick Goins, 832-554-4918 (Media)
SOURCE: Exterran Holdings, Inc.