HOUSTON--(BUSINESS WIRE)--Aug. 6, 2009--
Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P.
(NASDAQ:EXLP) today reported financial results for the second quarter
2009.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported a net loss attributable to Exterran
stockholders for the second quarter 2009 of $530.8 million, or $8.66 per
diluted share, compared to a net loss attributable to Exterran
stockholders for the first quarter 2009 of $59.4 million, or $0.97 per
diluted share, and net income attributable to Exterran stockholders for
the second quarter 2008 of $21.7 million, or $0.33 per diluted share.
Net income from continuing operations attributable to Exterran
stockholders for the second quarter 2009 was $24.4 million, or $0.39 per
diluted share, excluding the following charges: a $343.3 million loss
from discontinued operations, net of tax, related to the previously
announced expropriation of our wholly-owned assets and operations in
Venezuela, and pretax charges that totaled $246.1 million, including a
$150.8 million non-cash goodwill impairment charge related to the loss
of our contract operations business in Venezuela, an $86.7 million
non-cash fleet impairment charge related primarily to our North America
contract operations, an $8.1 million restructuring charge and a $0.6
million charge related to our investments in non-consolidated affiliates
in Venezuela. Due to the expropriation in Venezuela, our Venezuelan
contract operations and aftermarket services businesses are reflected as
discontinued operations in our current and prior period financial
results.
Net income from continuing operations for the first quarter 2009
attributable to Exterran stockholders, excluding charges, was $31.6
million, or $0.51 per diluted share, and net income from continuing
operations for the second quarter 2008 attributable to Exterran
stockholders, excluding charges, was $13.8 million, or $0.21 per diluted
share.
Revenue was $678.0 million for the second quarter 2009, compared to
$703.2 million for the first quarter 2009 and $773.4 million for the
second quarter 2008. EBITDA, as adjusted (as defined below), was $151.4
million for the second quarter 2009, compared to $163.9 million for the
first quarter 2009 and $144.7 million for the second quarter 2008.
Ernie L. Danner, Exterran Holdings’ President and Chief Executive
Officer, said, “Our financial results reflected the expropriation of our
business in Venezuela and continuing difficult industry conditions,
particularly in North America, where relatively low prices for natural
gas and surplus levels of natural gas compression equipment have
resulted in reduced demand for our products and services. During the
second quarter, however, we reduced our operating and general and
administrative cost structure, which will help offset the negative
impact of weak market conditions expected to continue at least through
the remainder of 2009. We expect our capital spending levels will
moderate in 2010 as we focus on redeploying idle assets.
“We are optimistic about our strategy for building long-term value,
which continues to include the use of a large portion of the operating
cash flow from our North American operations and potential future
proceeds from possible sales of our U.S. contract operations business to
Exterran Partners to grow our business in our existing and new
international markets. We commenced new international contract
operations in Brazil and Mexico in the second quarter of 2009, and have
a significant backlog of new projects for both Latin America and the
Eastern Hemisphere scheduled to begin operations through early 2010.
“As previously reported, substantially all of our wholly-owned
operations in Venezuela were seized in June 2009 by Petroleos de
Venezuela S.A. The loss of our assets and investments in Venezuela,
including the first quarter 2009 impairment on our investments in
non-consolidated affiliates, has resulted in charges totaling
approximately $475 million recorded in the first and second quarters of
2009. We intend to vigorously pursue full compensation related to the
loss of our expropriated assets, investments and cash flows in
Venezuela.”
J. Michael Anderson, Exterran Holdings’ Senior Vice President and Chief
Financial Officer, added, “In June 2009 we enhanced our overall
financial position with the issuance of $355 million of 4.25%
convertible senior unsecured notes due June 15, 2014. We used $36.3
million of the net proceeds of this debt offering to pay the net cost of
hedge and warrant transactions to reduce the potential dilution to our
common stock upon conversion of the notes, and used the remaining net
proceeds to repay approximately $309 million of secured indebtedness.
Our available debt capacity, after taking into account letters of
credit, was $616 million at June 30, 2009. The loss from discontinued
operations and the goodwill and fleet impairment charges included in
second quarter 2009 results did not impact our compliance with debt
covenants.”
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $45.1 million for the second
quarter 2009, compared to $48.2 million for the first quarter 2009 and
$35.0 million for the second quarter 2008. Net income was $2.7 million,
or $0.13 per diluted limited partner unit, for the second quarter 2009,
compared to $6.7 million, or $0.33 per diluted limited partner unit, for
the first quarter 2009 and $6.1 million, or $0.35 per diluted limited
partner unit, for the second quarter 2008.
Net income for the second quarter 2009 was $5.7 million, or $0.28 per
diluted limited partner unit, excluding a $3.0 million non-cash fleet
impairment charge. The fleet impairment charge did not impact Exterran
Partners’ cash flows, liquidity position, or compliance with debt
covenants.
Exterran Partners’ EBITDA, as further adjusted (as defined below),
totaled $21.1 million for the second quarter 2009, compared to $22.8
million for the first quarter 2009 and $20.3 million for the second
quarter 2008. Distributable cash flow (as defined below) totaled $12.7
million for the second quarter 2009, compared to $13.2 million for the
first quarter 2009 and $14.0 million for the second quarter 2008.
“Exterran Partners’ cash flow generation remained relatively strong in
the second quarter of 2009 as the benefits of cost reduction activities
and its fee-based production-oriented business model helped to mitigate
the negative impact of difficult industry conditions,” commented Mr.
Danner, President and Chief Executive Officer of Exterran Partners’
managing general partner.
On July 30, 2009, Exterran Partners announced a cash distribution of
$0.4625 per limited partner unit for the second quarter 2009, compared
to $0.4625 per limited partner unit for the first quarter 2009 and
$0.4250 per limited partner unit for the second 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 second quarter 2009 earnings release:
-
Teleconference: Thursday, August 6, 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
2819045.
-
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, August 6, 2009,
until 2:00 p.m. Eastern Time on Thursday, August 13, 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 2819045.
With respect to Exterran Holdings, EBITDA, as adjusted, a non-GAAP
measure, is defined as income (loss) 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, restructuring charges, 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, impairment charges,
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, impairment charges, 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:
the Companies’ operational and financial strategies and ability to
successfully effect those strategies, including Exterran Holdings’
ability to reduce costs; the impact of cost reductions on the Companies’
future financial performance; the Companies’ expected future capital
expenditures; Exterran Holdings’ plans to sell portions of its U.S.
contract operations business to Exterran Partners; Exterran Holdings’
plans to use operating cashflow from its North American business and
proceeds from sales of its U.S. contract operations business to Exterran
Partners to grow in international markets; the future profitability of
international operations; Exterran Holdings’ ability to execute on its
backlog of international contract operations projects and the ability of
those projects to begin generating revenues through early 2010; Exterran
Holdings’ ability to obtain economic recovery for its seized assets,
operations and investments in Venezuela; the Companies’ expectations
regarding future economic and market conditions; 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
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
Revenues:
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
178,455
|
|
|
$
|
194,393
|
|
|
$
|
194,607
|
|
International contract operations
|
|
|
95,448
|
|
|
|
90,679
|
|
|
|
91,768
|
|
Aftermarket services
|
|
|
78,504
|
|
|
|
75,531
|
|
|
|
92,957
|
|
Fabrication
|
|
|
325,561
|
|
|
|
342,609
|
|
|
|
394,044
|
|
|
|
|
677,968
|
|
|
|
703,212
|
|
|
|
773,376
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization expense):
|
|
|
|
|
|
|
North America contract operations
|
|
|
74,420
|
|
|
|
83,705
|
|
|
|
86,303
|
|
International contract operations
|
|
|
37,897
|
|
|
|
32,805
|
|
|
|
36,467
|
|
Aftermarket services
|
|
|
61,778
|
|
|
|
59,754
|
|
|
|
73,695
|
|
Fabrication
|
|
|
275,561
|
|
|
|
286,714
|
|
|
|
355,284
|
|
Selling, general and administrative
|
|
|
86,380
|
|
|
|
85,111
|
|
|
|
89,582
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
1,458
|
|
Depreciation and amortization
|
|
|
85,903
|
|
|
|
82,073
|
|
|
|
81,671
|
|
Fleet impairment
|
|
|
86,684
|
|
|
|
-
|
|
|
|
-
|
|
Restructuring charges
|
|
|
8,076
|
|
|
|
7,304
|
|
|
|
-
|
|
Goodwill impairment
|
|
|
150,778
|
|
|
|
-
|
|
|
|
-
|
|
Interest expense
|
|
|
29,163
|
|
|
|
26,734
|
|
|
|
30,125
|
|
Equity in (income) loss of non-consolidated affiliates
|
|
|
567
|
|
|
|
91,117
|
|
|
|
(6,962
|
)
|
Other (income) expense, net
|
|
|
(9,433
|
)
|
|
|
(3,362
|
)
|
|
|
(5,705
|
)
|
|
|
|
887,774
|
|
|
|
751,955
|
|
|
|
741,918
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(209,806
|
)
|
|
|
(48,743
|
)
|
|
|
31,458
|
|
Provision for (benefit from) income taxes
|
|
|
(23,177
|
)
|
|
|
10,963
|
|
|
|
15,314
|
|
Income (loss) from continuing operations
|
|
|
(186,629
|
)
|
|
|
(59,706
|
)
|
|
|
16,144
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(343,323
|
)
|
|
|
1,806
|
|
|
|
8,759
|
|
Net income (loss)
|
|
|
(529,952
|
)
|
|
|
(57,900
|
)
|
|
|
24,903
|
|
Less: net income attributable to the noncontrolling interest
|
|
|
(818
|
)
|
|
|
(1,514
|
)
|
|
|
(3,243
|
)
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(530,770
|
)
|
|
$
|
(59,414
|
)
|
|
$
|
21,660
|
|
|
|
|
|
|
|
|
Basic income (loss) per common share:
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
(3.06
|
)
|
|
$
|
(1.00
|
)
|
|
$
|
0.20
|
|
Income (loss) from discontinued operations attributable to Exterran
stockholders
|
|
|
(5.60
|
)
|
|
|
0.03
|
|
|
|
0.13
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(8.66
|
)
|
|
$
|
(0.97
|
)
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
Diluted income (loss) per common share:
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
(3.06
|
)
|
|
$
|
(1.00
|
)
|
|
$
|
0.20
|
|
Income (loss) from discontinued operations attributable to Exterran
stockholders
|
|
|
(5.60
|
)
|
|
|
0.03
|
|
|
|
0.13
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(8.66
|
)
|
|
$
|
(0.97
|
)
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
Weighted average common and equivalent shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
61,277
|
|
|
|
61,209
|
|
|
|
65,217
|
|
Diluted
|
|
|
61,277
|
|
|
|
61,209
|
|
|
|
65,904
|
|
|
|
|
|
|
|
|
Income (loss) attributable to Exterran stockholders:
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
(187,447
|
)
|
|
$
|
(61,220
|
)
|
|
$
|
12,901
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(343,323
|
)
|
|
|
1,806
|
|
|
|
8,759
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(530,770
|
)
|
|
$
|
(59,414
|
)
|
|
$
|
21,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXTERRAN HOLDINGS, INC.
|
UNAUDITED SUPPLEMENTAL INFORMATION
|
(In thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
Revenues:
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
178,455
|
|
|
$
|
194,393
|
|
|
$
|
194,607
|
|
|
International contract operations
|
|
|
95,448
|
|
|
|
90,679
|
|
|
|
91,768
|
|
|
Aftermarket services
|
|
|
78,504
|
|
|
|
75,531
|
|
|
|
92,957
|
|
|
Fabrication
|
|
|
325,561
|
|
|
|
342,609
|
|
|
|
394,044
|
|
|
Total
|
|
$
|
677,968
|
|
|
$
|
703,212
|
|
|
$
|
773,376
|
|
|
|
|
|
|
|
|
|
Gross Margin (1):
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
104,035
|
|
|
$
|
110,688
|
|
|
$
|
108,304
|
|
|
International contract operations
|
|
|
57,551
|
|
|
|
57,874
|
|
|
|
55,301
|
|
|
Aftermarket services
|
|
|
16,726
|
|
|
|
15,777
|
|
|
|
19,262
|
|
|
Fabrication
|
|
|
50,000
|
|
|
|
55,895
|
|
|
|
38,760
|
|
|
Total
|
|
$
|
228,312
|
|
|
$
|
240,234
|
|
|
$
|
221,627
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative
|
|
$
|
86,380
|
|
|
$
|
85,111
|
|
|
$
|
89,582
|
|
% of Revenues
|
|
|
13
|
%
|
|
|
12
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted (1)
|
|
$
|
151,365
|
|
|
$
|
163,924
|
|
|
$
|
144,712
|
|
% of Revenues
|
|
|
22
|
%
|
|
|
23
|
%
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
106,075
|
|
|
$
|
122,502
|
|
|
$
|
119,333
|
|
Less: Proceeds from Sale of PP&E
|
|
|
(10,256
|
)
|
|
|
(3,194
|
)
|
|
|
(23,724
|
)
|
Net Capital Expenditures
|
|
$
|
95,819
|
|
|
$
|
119,308
|
|
|
$
|
95,609
|
|
|
|
|
|
|
|
|
|
Gross Margin Percentage:
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
58
|
%
|
|
|
57
|
%
|
|
|
56
|
%
|
|
International contract operations
|
|
|
60
|
%
|
|
|
64
|
%
|
|
|
60
|
%
|
|
Aftermarket services
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
21
|
%
|
|
Fabrication
|
|
|
15
|
%
|
|
|
16
|
%
|
|
|
10
|
%
|
|
Total
|
|
|
34
|
%
|
|
|
34
|
%
|
|
|
29
|
%
|
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
4,340
|
|
|
|
4,576
|
|
|
|
4,504
|
|
|
International contract operations
|
|
|
1,214
|
|
|
|
1,180
|
|
|
|
1,129
|
|
|
Total
|
|
|
5,554
|
|
|
|
5,756
|
|
|
|
5,633
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
3,125
|
|
|
|
3,308
|
|
|
|
3,472
|
|
|
International contract operations
|
|
|
1,037
|
|
|
|
1,018
|
|
|
|
1,053
|
|
|
Total
|
|
|
4,162
|
|
|
|
4,326
|
|
|
|
4,525
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (average):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
3,207
|
|
|
|
3,389
|
|
|
|
3,497
|
|
|
International contract operations
|
|
|
1,037
|
|
|
|
1,041
|
|
|
|
1,044
|
|
|
Total
|
|
|
4,244
|
|
|
|
4,430
|
|
|
|
4,541
|
|
|
|
|
|
|
|
|
|
Horsepower Utilization (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
72
|
%
|
|
|
72
|
%
|
|
|
77
|
%
|
|
International contract operations
|
|
|
85
|
%
|
|
|
86
|
%
|
|
|
93
|
%
|
|
Total
|
|
|
75
|
%
|
|
|
75
|
%
|
|
|
80
|
%
|
|
|
|
|
|
|
|
|
Fabrication Backlog:
|
|
|
|
|
|
|
|
Compression & accessory
|
|
$
|
291,633
|
|
|
$
|
354,816
|
|
|
$
|
327,288
|
|
|
Production & processing equipment
|
|
|
652,772
|
|
|
|
695,792
|
|
|
|
821,090
|
|
|
Total
|
|
$
|
944,405
|
|
|
$
|
1,050,608
|
|
|
$
|
1,148,378
|
|
|
|
|
|
|
|
|
|
Debt to Capitalization:
|
|
|
|
|
|
|
|
Debt
|
|
$
|
2,509,777
|
|
|
$
|
2,553,908
|
|
|
$
|
2,273,087
|
|
|
Exterran stockholders' equity
|
|
|
1,570,256
|
|
|
|
1,980,704
|
|
|
|
3,239,728
|
|
|
Capitalization
|
|
$
|
4,080,033
|
|
|
$
|
4,534,612
|
|
|
$
|
5,512,815
|
|
|
Total Debt to Capitalization
|
|
|
61.5
|
%
|
|
|
56.3
|
%
|
|
|
41.2
|
%
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
(186,629
|
)
|
|
$
|
(59,706
|
)
|
|
$
|
16,144
|
|
|
Depreciation and amortization
|
|
|
85,903
|
|
|
|
82,073
|
|
|
|
81,671
|
|
|
Fleet impairment
|
|
|
86,684
|
|
|
|
-
|
|
|
|
-
|
|
|
Restructuring charges
|
|
|
8,076
|
|
|
|
7,304
|
|
|
|
-
|
|
|
Investment in non-consolidated affiliates impairment
|
|
|
567
|
|
|
|
96,556
|
|
|
|
-
|
|
|
Goodwill impairment
|
|
|
150,778
|
|
|
|
-
|
|
|
|
-
|
|
|
Interest expense
|
|
|
29,163
|
|
|
|
26,734
|
|
|
|
30,125
|
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
1,458
|
|
|
Provision for (benefit from) income taxes
|
|
|
(23,177
|
)
|
|
|
10,963
|
|
|
|
15,314
|
|
|
EBITDA, as adjusted (1)
|
|
|
151,365
|
|
|
|
163,924
|
|
|
|
144,712
|
|
|
Selling, general and administrative
|
|
|
86,380
|
|
|
|
85,111
|
|
|
|
89,582
|
|
|
Equity in (income) loss of non-consolidated affiliates
|
|
|
567
|
|
|
|
91,117
|
|
|
|
(6,962
|
)
|
|
Investment in non-consolidated affiliates impairment
|
|
|
(567
|
)
|
|
|
(96,556
|
)
|
|
|
-
|
|
|
Other (income) expense, net
|
|
|
(9,433
|
)
|
|
|
(3,362
|
)
|
|
|
(5,705
|
)
|
|
Gross Margin (1)
|
|
$
|
228,312
|
|
|
$
|
240,234
|
|
|
$
|
221,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(530,770
|
)
|
|
$
|
(59,414
|
)
|
|
$
|
21,660
|
|
|
(Income) loss from discontinued operations
|
|
|
343,323
|
|
|
|
(1,806
|
)
|
|
|
(8,759
|
)
|
|
Charges, after-tax:
|
|
|
|
|
|
|
|
Fleet impairment
|
|
|
55,153
|
|
|
|
-
|
|
|
|
-
|
|
|
Restructuring charges
|
|
|
5,344
|
|
|
|
4,675
|
|
|
|
-
|
|
|
Investment in non-consolidated affiliates impairment
|
|
|
567
|
|
|
|
88,156
|
|
|
|
-
|
|
|
Goodwill impairment
|
|
|
150,778
|
|
|
|
-
|
|
|
|
-
|
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
948
|
|
|
Net income from continuing operations attributable to Exterran
stockholders, excluding charges
|
|
$
|
24,395
|
|
|
$
|
31,611
|
|
|
$
|
13,849
|
|
|
|
|
|
|
|
|
|
|
Diluted Income (loss) from continuing operations attributable to
Exterran stockholders
|
|
$
|
(3.06
|
)
|
|
$
|
(1.00
|
)
|
|
$
|
0.20
|
|
|
Adjustment for charges, after-tax, per common share
|
|
|
3.45
|
|
|
|
1.51
|
|
|
|
0.01
|
|
|
Diluted net income from continuing operations attributable to
Exterran stockholders per common share, excluding charges (1)
|
|
$
|
0.39
|
|
|
$
|
0.51
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
June 30,
|
|
|
|
|
|
|
|
2009
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
$
|
45,077
|
|
|
$
|
48,233
|
|
|
$
|
34,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization)
|
|
|
|
|
|
|
20,176
|
|
|
|
22,182
|
|
|
|
15,937
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
8,678
|
|
|
|
8,334
|
|
|
|
5,811
|
|
|
Fleet impairment
|
|
|
|
|
|
|
2,995
|
|
|
|
-
|
|
|
|
-
|
|
|
Selling, general and administrative
|
|
|
|
|
|
|
5,551
|
|
|
|
6,001
|
|
|
|
4,745
|
|
|
Interest expense
|
|
|
|
|
|
|
4,805
|
|
|
|
4,819
|
|
|
|
3,445
|
|
|
Other (income) expense, net
|
|
|
|
|
|
|
-
|
|
|
|
27
|
|
|
|
(1,129
|
)
|
|
Total costs and expenses
|
|
|
|
|
|
|
42,205
|
|
|
|
41,363
|
|
|
|
28,809
|
|
Income before income taxes
|
|
|
|
|
|
|
2,872
|
|
|
|
6,870
|
|
|
|
6,190
|
|
Income tax expense
|
|
|
|
|
|
|
134
|
|
|
|
149
|
|
|
|
111
|
|
|
Net income
|
|
|
|
|
|
$
|
2,738
|
|
|
$
|
6,721
|
|
|
$
|
6,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner interest in net income
|
|
|
|
|
|
$
|
304
|
|
|
$
|
383
|
|
|
$
|
186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partner interest in net income
|
|
|
|
|
|
$
|
2,434
|
|
|
$
|
6,338
|
|
|
$
|
5,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average limited partners' units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
19,107
|
|
|
|
19,101
|
|
|
|
16,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
19,113
|
|
|
|
19,103
|
|
|
|
16,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per limited partner unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
$
|
0.13
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
$
|
0.13
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXTERRAN PARTNERS, L.P.
|
UNAUDITED SUPPLEMENTAL INFORMATION
|
(In thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
45,077
|
|
|
$
|
48,233
|
|
|
$
|
34,999
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin, as adjusted (1)
|
|
$
|
26,353
|
|
|
$
|
28,704
|
|
|
$
|
22,561
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as further adjusted (1)
|
|
$
|
21,077
|
|
|
$
|
22,766
|
|
|
$
|
20,313
|
|
% of Revenue
|
|
|
47
|
%
|
|
|
47
|
%
|
|
|
58
|
%
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
4,152
|
|
|
$
|
7,201
|
|
|
$
|
7,503
|
|
Proceeds from Sale of Compression Equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
5,275
|
|
Net Capital Expenditures
|
|
$
|
4,152
|
|
|
$
|
7,201
|
|
|
$
|
2,228
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin percentage, as adjusted
|
|
|
58
|
%
|
|
|
60
|
%
|
|
|
64
|
%
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow (2)
|
|
$
|
12,714
|
|
|
$
|
13,226
|
|
|
$
|
14,039
|
|
|
|
|
|
|
|
|
|
|
|
Distributions per Limited Partner Unit
|
|
$
|
0.4625
|
|
|
$
|
0.4625
|
|
|
$
|
0.4250
|
|
Distribution to All Unitholders, including Incentive Distributions
|
|
$
|
9,277
|
|
|
$
|
9,271
|
|
|
$
|
8,346
|
|
Distributable Cash Flow Coverage
|
|
1.37x
|
|
|
1.43x
|
|
|
1.68x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
387,750
|
|
|
$
|
400,250
|
|
|
$
|
217,000
|
|
Total Partners' Capital
|
|
$
|
175,205
|
|
|
$
|
177,513
|
|
|
$
|
151,214
|
|
Total Debt to Capitalization
|
|
|
69
|
%
|
|
|
69
|
%
|
|
|
59
|
%
|
EBITDA, as further adjusted (1) to Interest Expense
|
|
4.4x
|
|
|
4.7x
|
|
|
5.9x
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,738
|
|
|
$
|
6,721
|
|
|
$
|
6,079
|
|
|
Income tax expense
|
|
|
134
|
|
|
|
149
|
|
|
|
111
|
|
|
Depreciation and amortization
|
|
|
8,678
|
|
|
|
8,334
|
|
|
|
5,811
|
|
|
Fleet impairment
|
|
|
2,995
|
|
|
|
-
|
|
|
|
-
|
|
|
Cap on operating and selling, general and administrative costs
provided by Exterran Holdings ("EXH")
|
|
|
1,452
|
|
|
|
2,653
|
|
|
|
3,499
|
|
|
Non-cash selling, general and administrative costs
|
|
|
275
|
|
|
|
90
|
|
|
|
1,368
|
|
|
Interest expense, net of interest income
|
|
|
4,805
|
|
|
|
4,819
|
|
|
|
3,445
|
|
|
EBITDA, as further adjusted (1)
|
|
|
21,077
|
|
|
|
22,766
|
|
|
|
20,313
|
|
|
Cash selling, general and administrative costs
|
|
|
5,276
|
|
|
|
5,911
|
|
|
|
3,377
|
|
|
Less: cap on selling, general and administrative costs provided by
EXH
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Less: other income, expense, net
|
|
|
-
|
|
|
|
27
|
|
|
|
(1,129
|
)
|
|
Gross Margin, as adjusted for operating cost caps provided by EXH (1)
|
|
$
|
26,353
|
|
|
$
|
28,704
|
|
|
$
|
22,561
|
|
|
Other (income), expense, net
|
|
|
-
|
|
|
|
(27
|
)
|
|
|
1,129
|
|
|
Less: Gain on sale of compression equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,119
|
)
|
|
Less: Cash interest expense
|
|
|
(4,677
|
)
|
|
|
(4,686
|
)
|
|
|
(3,286
|
)
|
|
Less: Cash selling, general and administrative, as adjusted for
cost caps provided by EXH
|
|
|
(5,276
|
)
|
|
|
(5,911
|
)
|
|
|
(3,377
|
)
|
|
Less: Income tax expense
|
|
|
(134
|
)
|
|
|
(149
|
)
|
|
|
(111
|
)
|
|
Less: Maintenance capital expenditures
|
|
|
(3,552
|
)
|
|
|
(4,705
|
)
|
|
|
(1,758
|
)
|
|
Distributable cash flow (2)
|
|
$
|
12,714
|
|
|
$
|
13,226
|
|
|
$
|
14,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
22,773
|
|
|
$
|
11,222
|
|
|
$
|
11,824
|
|
|
Amortization of debt issuance cost
|
|
|
(91
|
)
|
|
|
(95
|
)
|
|
|
(88
|
)
|
|
Amortization of fair value of acquired interest rate swaps
|
|
|
(37
|
)
|
|
|
(38
|
)
|
|
|
(71
|
)
|
|
Cap on operating and selling, general and administrative costs
provided by EXH
|
|
|
1,452
|
|
|
|
2,653
|
|
|
|
3,499
|
|
|
Interest expense, net of interest income
|
|
|
4,805
|
|
|
|
4,819
|
|
|
|
3,445
|
|
|
Cash interest expense
|
|
|
(4,677
|
)
|
|
|
(4,686
|
)
|
|
|
(3,286
|
)
|
|
Maintenance capital expenditures
|
|
|
(3,552
|
)
|
|
|
(4,705
|
)
|
|
|
(1,758
|
)
|
|
Change in current assets/liabilities
|
|
|
(7,959
|
)
|
|
|
4,056
|
|
|
|
474
|
|
|
Distributable cash flow (2)
|
|
$
|
12,714
|
|
|
$
|
13,226
|
|
|
$
|
14,039
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,738
|
|
|
$
|
6,721
|
|
|
$
|
6,079
|
|
|
Fleet impairment
|
|
|
2,995
|
|
|
|
-
|
|
|
|
-
|
|
|
Net income, excluding charge
|
|
$
|
5,733
|
|
|
$
|
6,721
|
|
|
$
|
6,079
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per limited partner unit
|
|
$
|
0.13
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
Adjustment for charge per limited partner unit
|
|
|
0.15
|
|
|
|
-
|
|
|
|
-
|
|
|
Diluted earnings per limited partner unit, excluding charge (1)
|
|
$
|
0.28
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
(1) Management believes disclosure of EBITDA, as further adjusted,
diluted earnings per limited partner unit, excluding charge, and
Gross Margin, as adjusted, 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, diluted earnings per limited
partner unit, excluding charge, 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
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
|
2009
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end)
|
|
1,034
|
|
|
1,041
|
|
|
742
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end)
|
|
840
|
|
|
887
|
|
|
651
|
|
|
|
|
|
|
|
|
|
Average Operating Horsepower
|
|
859
|
|
|
900
|
|
|
652
|
|
|
|
|
|
|
|
|
|
Horsepower Utilization:
|
|
|
|
|
|
|
|
Spot (at period end)
|
|
81
|
%
|
|
85
|
%
|
|
88
|
%
|
|
Average
|
|
83
|
%
|
|
87
|
%
|
|
89
|
%
|
|
|
|
|
|
|
|
|
Combined U.S. Contract Operations Horsepower of Exterran Holdings
and Exterran Partners covered by contracts converted to service
agreements (at period end)
|
|
1,917
|
|
|
1,812
|
|
|
1,624
|
|
|
|
|
|
|
|
|
|
Available Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Available U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
|
4,234
|
|
|
4,464
|
|
|
4,393
|
|
|
|
|
|
|
|
|
|
|
% of U.S. Contract Operations Available Horsepower of Exterran
Holdings and Exterran Partners covered by contracts converted to
service agreements (at period end)
|
|
45
|
%
|
|
41
|
%
|
|
37.0
|
%
|
|
|
|
|
|
|
|
|
Operating Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
|
3,066
|
|
|
3,247
|
|
|
3,401
|
|
|
|
|
|
|
|
|
|
|
% of U.S. Contract Operations Operating Horsepower of Exterran
Holdings and Exterran Partners covered by contracts converted to
service agreements (at period end)
|
|
63
|
%
|
|
56
|
%
|
|
48
|
%
|
Source: Exterran Holdings, Inc. and Exterran Partners, L.P.
Exterran
David Oatman, 281-836-7035 (Investors)
Susan
Nelson, 281-836-7297 (Media)