HOUSTON--(BUSINESS WIRE)--May. 7, 2009--
Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P.
(NASDAQ:EXLP) today reported financial results for the first quarter
2009.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported a net loss attributable to Exterran
stockholders for the first quarter 2009 of $59.4 million, or $0.97 per
diluted share, compared to a net loss attributable to Exterran
stockholders for the fourth quarter 2008 of $1,055.4 million, or $16.70
per diluted share, and net income attributable to Exterran stockholders
for the first quarter 2008 of $49.4 million, or $0.73 per diluted share.
As previously disclosed, first quarter 2009 results included pretax
charges that totaled $103.9 million, including a $96.6 million non-cash
charge related to our investments in non-consolidated affiliates in
Venezuela and a $7.3 million charge for manufacturing facility
consolidation and impairment related expenses. Excluding these charges,
net income attributable to Exterran stockholders for the first quarter
2009 was $33.4 million, or $0.53 per diluted share. The charge related
to our investments in non-consolidated affiliates did not impact our
cash flows, liquidity position, or compliance with debt covenants.
Net income attributable to Exterran stockholders, excluding charges was
$55.8 million, or $0.85 per diluted share for the fourth quarter 2008
and net income attributable to Exterran stockholders, excluding charges
was $53.1 million, or $0.79 per diluted share for the first quarter 2008.
Revenue was $737.9 million for the first quarter 2009 compared to $830.4
million for the fourth quarter 2008 and $740.1 million for the first
quarter 2008. EBITDA, as adjusted (as defined below), was $182.6 million
for the first quarter 2009 compared to $219.0 million for the fourth
quarter 2008 and $211.2 million for the first quarter 2008.
Commenting on the results, Stephen A. Snider, Exterran Holdings’ Chief
Executive Officer, said, “The global economic slowdown has resulted in a
reduced level of energy demand. Our customers have scaled back activity
levels, as reflected by reduced capital expenditure levels and lower
drilling rig counts, particularly in North America. We expect that
business conditions will continue to be challenging until natural gas
supply and demand are more in balance.”
Ernie L. Danner, Exterran Holdings’ President and Chief Operating
Officer, said, “As a result of our expectations for continued weakness
in the North America natural gas market over the remainder of 2009 and
our concern regarding our Venezuelan operations, we are working
diligently to ensure that our costs are in line with our business
activity levels. Earlier this year, we disclosed our plans to
consolidate our fabrication operations in North America, which include
the closure of one major facility and the discontinuation of compressor
fabrication activities at another. Today, we are announcing that we will
reduce operating and general and administrative costs, including
headcount reductions, in all facets of our business. We believe,
however, that the longer-term growth prospects for our company are
strong given our leading market positions in our focus areas, and we
intend to continue to execute our business strategies including the
expansion of our international contract operations business through the
successful execution of our backlog of new projects.”
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $48.2 million for the first
quarter 2009 compared to $49.1 million for the fourth quarter 2008 and
$35.3 million for the first quarter 2008. Net income was $6.7 million,
or $0.33 per diluted limited partner unit, for the first quarter 2009
compared to $7.8 million, or $0.39 per diluted limited partner unit, for
the fourth quarter 2008 and $6.5 million, or $0.38 per diluted limited
partner unit, for the first quarter 2008.
EBITDA, as further adjusted (as defined below), totaled $22.8 million
for the first quarter 2009 compared to $23.8 million for the fourth
quarter 2008 and $19.2 million for the first quarter 2008. Distributable
cash flow (as defined below) totaled $13.2 million for the first quarter
2009 compared to $14.1 million for the fourth quarter 2008 and $14.0
million for the first quarter 2008.
“Exterran Partners had another solid performance in the first quarter in
light of the significant decline in U.S. drilling activity, driven by
the relatively stable and recurring nature of our production-related
activities,” commented Mr. Danner, President and Chief Operating Officer
of Exterran Partners’ managing general partner.
On April 30, 2009, Exterran Partners announced a cash distribution of
$0.4625 per limited partner unit for the first quarter 2009, compared to
$0.4625 per limited partner unit for the fourth quarter 2008 and $0.425
per limited partner unit for the first quarter 2008.
Conference Call Details
Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P.
(NASDAQ:EXLP) announce the following schedule and teleconference
information for their first quarter 2009 earnings release:
-
Teleconference: Thursday, May 7, 2009 at 11:00 a.m. Eastern
Time, 10:00 a.m. Central Time. To access the call, United States and
Canadian participants should dial 888-599-8691. International
participants should dial 913-312-6684 at least 10 minutes before the
scheduled start time. Please reference Exterran conference call number
1083744.
-
Live Webcast: The webcast will be available in listen-only mode
via the companies’ website: www.exterran.com.
-
Webcast Replay: For those unable to participate, a replay will
be available from 2:00 p.m. Eastern Time on Thursday, May 7, 2009,
until 2:00 p.m. Eastern Time on Thursday, May 14, 2009. To listen to
the replay, please dial 888-203-1112 in the United States and Canada,
or 719-457-0820 internationally, and enter access code 1083744.
With respect to Exterran Holdings, EBITDA, as adjusted, a non-GAAP
measure, is defined as net income (loss) 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, excluding
non-recurring items, and extraordinary gains or losses.
With respect to Exterran Partners, EBITDA, as further adjusted, a
non-GAAP measure, is defined as net income plus income taxes, interest
expense, depreciation and amortization expense, non-cash selling,
general and administrative (“SG&A”) 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 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, and excluding non-recurring
items.
With respect to Exterran Partners, distributable cash flow, a non-GAAP
measure, is defined as net income plus depreciation and amortization
expense, non-cash SG&A 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, which amounts are treated as capital contributions from
Exterran Holdings for accounting purposes, less cash interest expense
and maintenance capital expenditures, and excluding gains/losses on
asset sales and 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 and amortization 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 Holdings and Exterran Partners
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 over 30 countries.
Exterran Partners, L.P. provides natural gas contract operations
services to customers throughout the United States. Exterran Holdings
indirectly owns a majority interest in 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, many of which are outside the
control of Exterran Holdings and Exterran Partners (the “Companies”),
which could cause actual results to differ materially from such
statements. Forward-looking information includes, but is not limited to:
Exterran Holdings’ expectations with respect to the impact of the global
economic slowdown and reduced level of energy demand, including their
impact on the political and economic conditions in the countries in
which we operate; the stable and recurring nature of Exterran Partners’
production-related activities; the Companies’ operational and financial
strategies and ability to successfully effect those strategies,
including Exterran Holdings’ ability to reduce costs and execute on its
backlog of international contract operations projects; and the
Companies’ financial and operational outlook and ability to fulfill that
outlook.
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 future
performance or results of their business. Among the factors that could
cause results to differ materially from those indicated by such
forward-looking statements are: local, regional, national and
international economic conditions and the impact they may have on the
Companies and their customers; changes in tax laws that impact master
limited partnerships; conditions in the oil and gas industry, including
a sustained decrease in the level of supply or demand for oil and
natural gas and the impact on the price of oil and 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; changes in safety and environmental regulations pertaining to
the production and transportation of oil and 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’ Annual Report on Form 10-K for the year ended
December 31, 2008, Exterran Partners’ Annual Report on Form 10-K for the
year ended December 31, 2008, and those set forth from time to time in
the Companies’ 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
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2009
|
|
2008
|
|
2008
|
Revenues:
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
194,393
|
|
|
$
|
198,964
|
|
|
$
|
199,076
|
|
|
International contract operations
|
|
|
123,012
|
|
|
|
135,992
|
|
|
|
119,892
|
|
|
Aftermarket services
|
|
|
77,879
|
|
|
|
101,464
|
|
|
|
84,172
|
|
|
Fabrication
|
|
|
342,609
|
|
|
|
393,971
|
|
|
|
336,949
|
|
|
|
|
|
737,893
|
|
|
|
830,391
|
|
|
|
740,089
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization expense):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
83,705
|
|
|
|
82,834
|
|
|
|
88,288
|
|
|
International contract operations
|
|
|
45,301
|
|
|
|
49,899
|
|
|
|
39,385
|
|
|
Aftermarket services
|
|
|
61,200
|
|
|
|
82,516
|
|
|
|
66,927
|
|
|
Fabrication
|
|
|
286,714
|
|
|
|
308,051
|
|
|
|
263,743
|
|
|
Selling, general and administrative
|
|
|
91,518
|
|
|
|
95,178
|
|
|
|
89,687
|
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
1,765
|
|
|
|
4,439
|
|
|
Depreciation and amortization
|
|
|
92,939
|
|
|
|
96,452
|
|
|
|
90,449
|
|
|
Fleet impairment
|
|
|
-
|
|
|
|
21,659
|
|
|
|
1,450
|
|
|
Manufacturing facility consolidation and impairment
|
|
|
7,304
|
|
|
|
-
|
|
|
|
-
|
|
|
Goodwill impairment
|
|
|
-
|
|
|
|
1,148,371
|
|
|
|
-
|
|
|
Interest expense
|
|
|
26,565
|
|
|
|
33,034
|
|
|
|
33,220
|
|
|
Equity in (income) loss of non-consolidated affiliates
|
|
|
91,117
|
|
|
|
(4,262
|
)
|
|
|
(6,093
|
)
|
|
Other (income) expense, net
|
|
|
(7,661
|
)
|
|
|
(2,838
|
)
|
|
|
(12,999
|
)
|
|
|
|
|
778,702
|
|
|
|
1,912,659
|
|
|
|
658,496
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(40,809
|
)
|
|
|
(1,082,268
|
)
|
|
|
81,593
|
|
Provision for (benefit from) income taxes
|
|
|
17,091
|
|
|
|
(30,214
|
)
|
|
|
29,977
|
|
Income (loss) from continuing operations
|
|
|
(57,900
|
)
|
|
|
(1,052,054
|
)
|
|
|
51,616
|
|
Income from discontinued operations, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
398
|
|
Net income (loss)
|
|
|
(57,900
|
)
|
|
|
(1,052,054
|
)
|
|
|
52,014
|
|
|
Less: net income attributable to the noncontrolling interest
|
|
|
(1,514
|
)
|
|
|
(3,359
|
)
|
|
|
(2,643
|
)
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(59,414
|
)
|
|
$
|
(1,055,413
|
)
|
|
$
|
49,371
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per common share:
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
(0.97
|
)
|
|
$
|
(16.70
|
)
|
|
$
|
0.75
|
|
|
Income from discontinued operations attributable to Exterran
stockholders
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(0.97
|
)
|
|
$
|
(16.70
|
)
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per common share(1):
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
(0.97
|
)
|
|
$
|
(16.70
|
)
|
|
$
|
0.73
|
|
|
Income from discontinued operations attributable to Exterran
stockholders
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(0.97
|
)
|
|
$
|
(16.70
|
)
|
|
$
|
0.73
|
|
|
|
|
|
|
|
|
|
Weighted average common and equivalent shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
61,209
|
|
|
|
63,191
|
|
|
|
65,065
|
|
|
Diluted
|
|
|
61,209
|
|
|
|
63,191
|
|
|
|
68,831
|
|
|
|
|
|
|
|
|
|
Income (loss) attributable to Exterran stockholders:
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
(59,414
|
)
|
|
$
|
(1,055,413
|
)
|
|
$
|
48,973
|
|
|
Gain from sales of discontinued operations, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
398
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(59,414
|
)
|
|
$
|
(1,055,413
|
)
|
|
$
|
49,371
|
|
|
|
|
|
|
|
|
|
(1) Net income (loss) for the diluted earnings (loss) per share
calculation for the three-month period ending March 31, 2008 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.
|
|
|
EXTERRAN HOLDINGS, INC.
|
UNAUDITED SUPPLEMENTAL INFORMATION
|
(In thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2009
|
|
2008
|
|
2008
|
Revenues:
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
194,393
|
|
|
$
|
198,964
|
|
|
$
|
199,076
|
|
|
International contract operations
|
|
|
123,012
|
|
|
|
135,992
|
|
|
|
119,892
|
|
|
Aftermarket services
|
|
|
77,879
|
|
|
|
101,464
|
|
|
|
84,172
|
|
|
Fabrication
|
|
|
342,609
|
|
|
|
393,971
|
|
|
|
336,949
|
|
|
Total
|
|
$
|
737,893
|
|
|
$
|
830,391
|
|
|
$
|
740,089
|
|
|
|
|
|
|
|
|
|
Gross Margin (1):
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
110,688
|
|
|
$
|
116,130
|
|
|
$
|
110,788
|
|
|
International contract operations
|
|
|
77,711
|
|
|
|
86,093
|
|
|
|
80,507
|
|
|
Aftermarket services
|
|
|
16,679
|
|
|
|
18,948
|
|
|
|
17,245
|
|
|
Fabrication
|
|
|
55,895
|
|
|
|
85,920
|
|
|
|
73,206
|
|
|
Total
|
|
$
|
260,973
|
|
|
$
|
307,091
|
|
|
$
|
281,746
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative
|
|
$
|
91,518
|
|
|
$
|
95,178
|
|
|
$
|
89,687
|
|
% of Revenues
|
|
|
12
|
%
|
|
|
11
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted (1)
|
|
$
|
182,555
|
|
|
$
|
219,013
|
|
|
$
|
211,151
|
|
% of Revenues
|
|
|
25
|
%
|
|
|
26
|
%
|
|
|
29
|
%
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
123,111
|
|
|
$
|
133,200
|
|
|
$
|
102,575
|
|
Less: Proceeds from Sale of PP&E
|
|
|
(3,194
|
)
|
|
|
(11,905
|
)
|
|
|
(2,527
|
)
|
Net Capital Expenditures
|
|
$
|
119,917
|
|
|
$
|
121,295
|
|
|
$
|
100,048
|
|
|
|
|
|
|
|
|
|
Gross Margin Percentage:
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
57
|
%
|
|
|
58
|
%
|
|
|
56
|
%
|
|
International contract operations
|
|
|
63
|
%
|
|
|
63
|
%
|
|
|
67
|
%
|
|
Aftermarket services
|
|
|
21
|
%
|
|
|
19
|
%
|
|
|
20
|
%
|
|
Fabrication
|
|
|
16
|
%
|
|
|
22
|
%
|
|
|
22
|
%
|
|
Total
|
|
|
35
|
%
|
|
|
37
|
%
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
4,576
|
|
|
|
4,570
|
|
|
|
4,476
|
|
|
International contract operations
|
|
|
1,508
|
|
|
|
1,504
|
|
|
|
1,461
|
|
|
Total
|
|
|
6,084
|
|
|
|
6,074
|
|
|
|
5,937
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
3,308
|
|
|
|
3,455
|
|
|
|
3,535
|
|
|
International contract operations
|
|
|
1,311
|
|
|
|
1,372
|
|
|
|
1,350
|
|
|
Total
|
|
|
4,619
|
|
|
|
4,827
|
|
|
|
4,885
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (average):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
3,389
|
|
|
|
3,454
|
|
|
|
3,585
|
|
|
International contract operations
|
|
|
1,345
|
|
|
|
1,368
|
|
|
|
1,317
|
|
|
Total
|
|
|
4,734
|
|
|
|
4,822
|
|
|
|
4,902
|
|
|
|
|
|
|
|
|
|
Horsepower Utilization (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
72
|
%
|
|
|
76
|
%
|
|
|
79
|
%
|
|
International contract operations
|
|
|
87
|
%
|
|
|
91
|
%
|
|
|
92
|
%
|
|
Total
|
|
|
76
|
%
|
|
|
79
|
%
|
|
|
82
|
%
|
|
|
|
|
|
|
|
|
Fabrication Backlog:
|
|
|
|
|
|
|
|
Compression & accessory
|
|
$
|
354,816
|
|
|
$
|
395,472
|
|
|
$
|
354,073
|
|
|
Production & processing equipment
|
|
|
695,792
|
|
|
|
732,715
|
|
|
|
919,173
|
|
|
Total
|
|
$
|
1,050,608
|
|
|
$
|
1,128,187
|
|
|
$
|
1,273,246
|
|
|
|
|
|
|
|
|
|
Debt to Capitalization:
|
|
|
|
|
|
|
|
Debt
|
|
$
|
2,553,908
|
|
|
$
|
2,512,429
|
|
|
$
|
2,326,104
|
|
|
Exterran stockholders' equity
|
|
|
1,980,704
|
|
|
|
2,043,786
|
|
|
|
3,186,342
|
|
|
Capitalization
|
|
$
|
4,534,612
|
|
|
$
|
4,556,215
|
|
|
$
|
5,512,446
|
|
|
Total Debt to Capitalization
|
|
|
56.3
|
%
|
|
|
55.1
|
%
|
|
|
42.2
|
%
|
|
|
|
|
|
|
|
|
(1) Management believes disclosure of EBITDA, as adjusted, and Gross
Margin, both non-GAAP measures, provides 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
|
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
(57,900
|
)
|
|
$
|
(1,052,054
|
)
|
|
$
|
51,616
|
|
|
Depreciation and amortization
|
|
|
92,939
|
|
|
|
96,452
|
|
|
|
90,449
|
|
|
Fleet impairment
|
|
|
-
|
|
|
|
21,659
|
|
|
|
1,450
|
|
|
Manufacturing facility consolidation and impairment
|
|
|
7,304
|
|
|
|
-
|
|
|
|
-
|
|
|
Investment in non-consolidated affiliates impairment
|
|
|
96,556
|
|
|
|
-
|
|
|
|
-
|
|
|
Goodwill impairment
|
|
|
-
|
|
|
|
1,148,371
|
|
|
|
-
|
|
|
Interest expense
|
|
|
26,565
|
|
|
|
33,034
|
|
|
|
33,220
|
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
1,765
|
|
|
|
4,439
|
|
|
Provision for (benefit from) income taxes
|
|
|
17,091
|
|
|
|
(30,214
|
)
|
|
|
29,977
|
|
|
EBITDA, as adjusted (1)
|
|
|
182,555
|
|
|
|
219,013
|
|
|
|
211,151
|
|
|
Selling, general and administrative
|
|
|
91,518
|
|
|
|
95,178
|
|
|
|
89,687
|
|
|
Equity in (income) loss of non-consolidated affiliates
|
|
|
91,117
|
|
|
|
(4,262
|
)
|
|
|
(6,093
|
)
|
|
Investment in non-consolidated affiliates impairment
|
|
|
(96,556
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Other (income) expense, net
|
|
|
(7,661
|
)
|
|
|
(2,838
|
)
|
|
|
(12,999
|
)
|
|
Gross Margin (1)
|
|
$
|
260,973
|
|
|
$
|
307,091
|
|
|
$
|
281,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(59,414
|
)
|
|
$
|
(1,055,413
|
)
|
|
$
|
49,371
|
|
|
Charges, after-tax:
|
|
|
|
|
|
|
|
Fleet impairment
|
|
|
-
|
|
|
|
14,728
|
|
|
|
914
|
|
|
Manufacturing facility consolidation and impairment
|
|
|
4,675
|
|
|
|
-
|
|
|
|
-
|
|
|
Investment in non-consolidated affiliates impairment
|
|
|
88,156
|
|
|
|
-
|
|
|
|
-
|
|
|
Goodwill impairment
|
|
|
-
|
|
|
|
1,095,428
|
|
|
|
-
|
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
1,094
|
|
|
|
2,796
|
|
|
Net income attributable to Exterran stockholders, excluding charges
|
|
$
|
33,417
|
|
|
$
|
55,837
|
|
|
$
|
53,081
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) attributable to Exterran stockholders per
common share
|
|
$
|
(0.97
|
)
|
|
$
|
(16.70
|
)
|
|
$
|
0.73
|
|
|
Adjustment for charges, after-tax, per common share
|
|
|
1.50
|
|
|
|
17.55
|
|
|
|
0.06
|
|
|
Diluted net income attributable to Exterran stockholders per common
share, excluding charges
|
|
$
|
0.53
|
|
|
$
|
0.85
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes disclosure of EBITDA, as adjusted, diluted
income (loss) attributable to Exterran stockholders per common share,
excluding charges, and Gross Margin, non-GAAP measures,
provides 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, diluted income per
common share from continuing operations, excluding charges, 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 PARTNERS, L.P.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
$
|
48,233
|
|
$
|
49,056
|
|
|
$
|
35,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization)
|
|
|
22,182
|
|
|
21,583
|
|
|
|
16,143
|
|
|
Depreciation and amortization
|
|
|
8,334
|
|
|
8,026
|
|
|
|
5,674
|
|
|
Selling, general and administrative
|
|
|
6,001
|
|
|
5,916
|
|
|
|
3,001
|
|
|
Interest expense
|
|
|
4,819
|
|
|
5,826
|
|
|
|
3,801
|
|
|
Other (income) expense, net
|
|
|
27
|
|
|
(291
|
)
|
|
|
(10
|
)
|
|
Total costs and expenses
|
|
|
41,363
|
|
|
41,060
|
|
|
|
28,609
|
|
Income before income taxes
|
|
|
6,870
|
|
|
7,996
|
|
|
|
6,658
|
|
Income tax expense
|
|
|
149
|
|
|
186
|
|
|
|
111
|
|
|
Net income
|
|
$
|
6,721
|
|
$
|
7,810
|
|
|
$
|
6,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner interest in net income
|
|
$
|
383
|
|
$
|
401
|
|
|
$
|
187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partner interest in net income
|
|
$
|
6,338
|
|
$
|
7,409
|
|
|
$
|
6,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average limited partners' units outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
19,101
|
|
|
19,092
|
|
|
|
16,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
19,103
|
|
|
19,097
|
|
|
|
16,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per limited partner unit:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.33
|
|
$
|
0.39
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.33
|
|
$
|
0.39
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXTERRAN PARTNERS, L.P.
|
UNAUDITED SUPPLEMENTAL INFORMATION
|
(In thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
48,233
|
|
|
$
|
49,056
|
|
|
$
|
35,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin, as adjusted (1)
|
|
$
|
28,704
|
|
|
$
|
29,307
|
|
|
$
|
22,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as further adjusted (1)
|
|
$
|
22,766
|
|
|
$
|
23,838
|
|
|
$
|
19,161
|
|
% of Revenue
|
|
|
47
|
%
|
|
|
49
|
%
|
|
|
54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
7,201
|
|
|
$
|
7,072
|
|
|
$
|
4,469
|
|
Proceeds from Sale of Compression Equipment
|
|
|
-
|
|
|
|
(3,284
|
)
|
|
|
-
|
|
Net Capital Expenditures
|
|
$
|
7,201
|
|
|
$
|
3,788
|
|
|
$
|
4,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin percentage, as adjusted
|
|
|
60
|
%
|
|
|
60
|
%
|
|
|
64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow (2)
|
|
$
|
13,226
|
|
|
$
|
14,140
|
|
|
$
|
14,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions per Limited Partner Unit
|
|
$
|
0.4625
|
|
|
$
|
0.4625
|
|
|
$
|
0.4250
|
|
Distribution to All Unitholders, including Incentive Distributions
|
|
$
|
9,271
|
|
|
$
|
9,264
|
|
|
$
|
7,290
|
|
Distributable Cash Flow Coverage
|
|
1.43
|
x
|
|
1.53
|
x
|
|
1.92
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
400,250
|
|
|
$
|
398,750
|
|
|
$
|
217,000
|
|
Total Partners' Capital
|
|
$
|
177,513
|
|
|
$
|
175,468
|
|
|
$
|
139,926
|
|
Total Debt to Capitalization
|
|
|
69
|
%
|
|
|
69
|
%
|
|
|
61
|
%
|
EBITDA, as further adjusted (1) to Interest Expense
|
|
4.7
|
x
|
|
4.1
|
x
|
|
5.0
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes disclosure of EBITDA, as further adjusted,
and Gross Margin, as adjusted, both non-GAAP measures, provides
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
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
6,721
|
|
|
$
|
7,810
|
|
|
$
|
6,547
|
|
|
Income tax expense
|
|
|
149
|
|
|
|
186
|
|
|
|
111
|
|
|
Depreciation and amortization
|
|
|
8,334
|
|
|
|
8,026
|
|
|
|
5,674
|
|
|
Cap on operating and selling, general and administrative costs
provided by Exterran Holdings ("EXH")
|
|
|
2,653
|
|
|
|
1,938
|
|
|
|
3,574
|
|
|
Non-cash selling, general and administrative costs
|
|
|
90
|
|
|
|
52
|
|
|
|
(546
|
)
|
|
Interest expense, net of interest income
|
|
|
4,819
|
|
|
|
5,826
|
|
|
|
3,801
|
|
|
EBITDA, as further adjusted (1)
|
|
|
22,766
|
|
|
|
23,838
|
|
|
|
19,161
|
|
|
Cash selling, general and administrative costs
|
|
|
5,911
|
|
|
|
5,864
|
|
|
|
3,547
|
|
|
Less: cap on selling, general and administrative costs provided by
EXH
|
|
|
-
|
|
|
|
(104
|
)
|
|
|
-
|
|
|
Less: other income, expense, net
|
|
|
27
|
|
|
|
(291
|
)
|
|
|
(10
|
)
|
|
Gross Margin, as adjusted for operating cost caps provided by EXH (1)
|
|
$
|
28,704
|
|
|
$
|
29,307
|
|
|
$
|
22,698
|
|
|
Other (income), expense, net
|
|
|
(27
|
)
|
|
|
291
|
|
|
|
10
|
|
|
Less: Gain on sale of compression equipment
|
|
|
-
|
|
|
|
(316
|
)
|
|
|
-
|
|
|
Less: Cash interest expense
|
|
|
(4,686
|
)
|
|
|
(5,750
|
)
|
|
|
(3,696
|
)
|
|
Less: Cash selling, general and administrative, as adjusted for
cost caps provided by EXH
|
|
|
(5,911
|
)
|
|
|
(5,760
|
)
|
|
|
(3,547
|
)
|
|
Less: Income tax expense
|
|
|
(149
|
)
|
|
|
(186
|
)
|
|
|
(111
|
)
|
|
Less: Maintenance capital expenditures
|
|
|
(4,705
|
)
|
|
|
(3,446
|
)
|
|
|
(1,334
|
)
|
|
Distributable cash flow (2)
|
|
$
|
13,226
|
|
|
$
|
14,140
|
|
|
$
|
14,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
11,222
|
|
|
$
|
17,142
|
|
|
$
|
3,991
|
|
|
Amortization of debt issuance cost
|
|
|
(95
|
)
|
|
|
(39
|
)
|
|
|
(64
|
)
|
|
Amortization of fair value of acquired interest rate swaps
|
|
|
(38
|
)
|
|
|
(37
|
)
|
|
|
(41
|
)
|
|
Cap on operating and selling, general and administrative costs
provided by EXH
|
|
|
2,653
|
|
|
|
1,938
|
|
|
|
3,574
|
|
|
Interest expense, net of interest income
|
|
|
4,819
|
|
|
|
5,826
|
|
|
|
3,801
|
|
|
Cash interest expense
|
|
|
(4,686
|
)
|
|
|
(5,750
|
)
|
|
|
(3,696
|
)
|
|
Maintenance capital expenditures
|
|
|
(4,705
|
)
|
|
|
(3,446
|
)
|
|
|
(1,334
|
)
|
|
Change in current assets/liabilities
|
|
|
4,056
|
|
|
|
(1,494
|
)
|
|
|
7,789
|
|
|
Distributable cash flow (2)
|
|
$
|
13,226
|
|
|
$
|
14,140
|
|
|
$
|
14,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes disclosure of EBITDA, as further adjusted,
and Gross Margin, as adjusted, both non-GAAP measures, provides
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
|
(In thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end)
|
|
1,041
|
|
|
1,026
|
|
|
720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end)
|
|
887
|
|
|
909
|
|
|
652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Operating Horsepower
|
|
900
|
|
|
908
|
|
|
659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Horsepower Utilization:
|
|
|
|
|
|
|
|
Spot (at period end)
|
|
85
|
%
|
|
89
|
%
|
|
91
|
%
|
|
Average
|
|
87
|
%
|
|
89
|
%
|
|
91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined U.S. Contract Operations Horsepower of Exterran Holdings
and Exterran Partners covered by contracts converted to service
agreements (at period end)
|
|
1,812
|
|
|
1,730
|
|
|
1,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Available U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
|
4,464
|
|
|
4,459
|
|
|
4,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of U.S. Contract Operations Available Horsepower of Exterran
Holdings and Exterran Partners covered by contracts converted to
service agreements (at period end)
|
|
41
|
%
|
|
39
|
%
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
|
3,247
|
|
|
3,390
|
|
|
3,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of U.S. Contract Operations Operating Horsepower of Exterran
Holdings and Exterran Partners covered by contracts converted to
service agreements (at period end)
|
|
56
|
%
|
|
51
|
%
|
|
37
|
%
|
Source: Exterran Holdings, Inc. and Exterran Partners, L.P.
Exterran
David Oatman, 281-836-7035 (Investors)
Susan
Nelson, 281-836-7297 (Media)