HOUSTON--(BUSINESS WIRE)--Nov. 5, 2009--
Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P.
(NASDAQ:EXLP) today reported financial results for the third quarter
2009.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported net income attributable to Exterran
stockholders for the third quarter 2009 of $18.2 million, or $0.30 per
diluted share, compared to a net loss attributable to Exterran
stockholders for the second quarter 2009 of $530.8 million, or $8.66 per
diluted share, and net income attributable to Exterran stockholders for
the third quarter 2008 of $37.0 million, or $0.57 per diluted share.
Net income from continuing operations attributable to Exterran
stockholders for the third quarter 2009 was $24.8 million, or $0.38 per
diluted share, excluding pretax charges that totaled $3.6 million,
including a $2.6 million restructuring charge related to the
consolidation of our fabrication facilities in North America and a $1.0
million charge related to our investments in non-consolidated affiliates
in Venezuela. Due to the expropriation of our assets and operations 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 second quarter 2009
attributable to Exterran stockholders, excluding charges, was $24.4
million, or $0.39 per diluted share, and net income from continuing
operations for the third quarter 2008 attributable to Exterran
stockholders, excluding charges, was $24.0 million, or $0.37 per diluted
share.
Revenue was $679.7 million for the third quarter 2009, compared to
$678.0 million for the second quarter 2009 and $756.3 million for the
third quarter 2008. EBITDA, as adjusted (as defined below), was $161.1
million for the third quarter 2009, compared to $151.4 million for the
second quarter 2009 and $172.4 million for the third quarter 2008.
Ernie L. Danner, Exterran Holdings’ President and Chief Executive
Officer, said, “I am pleased with our overall performance in the third
quarter despite challenging industry conditions. With solid execution by
our operating and support groups, we generated a strong level of cash
flow and reduced our debt balances by $124 million. We also commenced
the operation of two new contract operations projects in the Eastern
Hemisphere in early October, and have a significant backlog of
international contract operations projects scheduled to begin operations
through mid-2010.
“Although we are encouraged by the recent increase in North American
natural gas prices, we expect continuing overall weak market conditions
and, in particular, declining activity levels for our North America
contract operations business into 2010. We expect our net capital
expenditures to be $200 million to $300 million in 2010, down from
approximately $375 million to $400 million in 2009. Building on our
third quarter success, we expect to generate positive cash flow after
capital expenditures in the fourth quarter of 2009 and in 2010.”
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $41.3 million for the third
quarter 2009, compared to $45.1 million for the second quarter 2009 and
$44.4 million for the third quarter 2008. Net income was $2.0 million,
or $0.09 per diluted limited partner unit, for the third quarter 2009,
compared to $2.7 million, or $0.13 per diluted limited partner unit, for
the second quarter 2009 and $9.4 million, or $0.49 per diluted limited
partner unit, for the third 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.
Exterran Partners’ EBITDA, as further adjusted (as defined below),
totaled $18.4 million for the third quarter 2009, compared to $21.1
million for the second quarter 2009 and $22.7 million for the third
quarter 2008. Distributable cash flow (as defined below) totaled $10.6
million for the third quarter 2009, compared to $12.7 million for the
second quarter 2009 and $14.8 million for the third quarter 2008.
“In October, Exterran Partners agreed to acquire contracts and equipment
representing approximately 273,000 horsepower of compression from
Exterran Holdings for approximately $143 million, excluding transaction
costs, to be financed with approximately $57 million of borrowings under
its new $150 million asset-backed securitization facility and existing
revolving credit facility and the issuance of approximately 4.7 million
common units and approximately 97,000 general partner units to Exterran
Holdings. The acquisition, anticipated to close in mid-November, is
expected to strengthen Exterran Partners’ market position in the United
States and enhance its distributable cash flow,” commented Mr. Danner,
President and Chief Executive Officer of Exterran Partners’ managing
general partner.
On October 30, 2009, Exterran Partners announced a cash distribution of
$0.4625 per limited partner unit for the third quarter 2009, the same
level as in the second quarter 2009 and the third 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 third quarter 2009 earnings release:
-
Teleconference: Thursday, November 5, 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 888-895-5271.
International participants should dial 847-619-6547 at least 10
minutes before the scheduled start time. Please reference Exterran
conference call number 25723798.
-
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, November 5,
2009, until 2:00 p.m. Eastern Time on Thursday, November 12, 2009. To
listen to the replay, please dial 888-843-8996 in the United States
and Canada, or 630-652-3044 internationally, and enter access code
25723798.
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 (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, non-cash selling, general and
administrative (“SG&A”) expenses and any amounts by which cost of sales
and SG&A 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 SG&A 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; the Companies’ expected future
capital expenditures; the ability of the Companies to complete their
proposed transaction and the expected timing of the closing of the
transaction; the expected benefits of the transaction to Exterran
Partners; Exterran Holdings’ ability to execute on its backlog of
international contract operations projects and the ability of those
projects to begin generating revenues through mid-2010; the Companies’
expectations regarding future economic and market conditions; and the
Companies’ financial and operational outlook, including expected levels
of cash flows, 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
|
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
Revenues:
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
167,567
|
|
|
$
|
178,455
|
|
|
$
|
197,926
|
|
|
International contract operations
|
|
|
96,420
|
|
|
|
95,448
|
|
|
|
99,680
|
|
|
Aftermarket services
|
|
|
75,526
|
|
|
|
78,504
|
|
|
|
94,044
|
|
|
Fabrication
|
|
|
340,193
|
|
|
|
325,561
|
|
|
|
364,608
|
|
|
|
|
|
679,706
|
|
|
|
677,968
|
|
|
|
756,258
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization expense):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
74,556
|
|
|
|
74,420
|
|
|
|
84,440
|
|
|
International contract operations
|
|
|
37,850
|
|
|
|
37,897
|
|
|
|
40,504
|
|
|
Aftermarket services
|
|
|
59,360
|
|
|
|
61,778
|
|
|
|
75,193
|
|
|
Fabrication
|
|
|
278,036
|
|
|
|
275,561
|
|
|
|
292,978
|
|
|
Selling, general and administrative
|
|
|
81,600
|
|
|
|
86,380
|
|
|
|
89,564
|
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
3,728
|
|
|
Depreciation and amortization
|
|
|
87,781
|
|
|
|
85,903
|
|
|
|
83,029
|
|
|
Fleet impairment
|
|
|
-
|
|
|
|
86,684
|
|
|
|
1,000
|
|
|
Restructuring charges
|
|
|
2,616
|
|
|
|
8,076
|
|
|
|
-
|
|
|
Goodwill impairment
|
|
|
-
|
|
|
|
150,778
|
|
|
|
-
|
|
|
Interest expense
|
|
|
33,371
|
|
|
|
29,163
|
|
|
|
33,401
|
|
|
Equity in (income) loss of non-consolidated affiliates
|
|
|
1,011
|
|
|
|
567
|
|
|
|
(6,657
|
)
|
|
Other (income) expense, net
|
|
|
(12,768
|
)
|
|
|
(9,433
|
)
|
|
|
7,835
|
|
|
|
|
|
643,413
|
|
|
|
887,774
|
|
|
|
705,015
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
36,293
|
|
|
|
(209,806
|
)
|
|
|
51,243
|
|
Provision for (benefit from) income taxes
|
|
|
13,691
|
|
|
|
(23,177
|
)
|
|
|
27,252
|
|
Income (loss) from continuing operations
|
|
|
22,602
|
|
|
|
(186,629
|
)
|
|
|
23,991
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(3,834
|
)
|
|
|
(343,323
|
)
|
|
|
16,070
|
|
Net income (loss)
|
|
|
18,768
|
|
|
|
(529,952
|
)
|
|
|
40,061
|
|
|
Less: net income attributable to the noncontrolling interest
|
|
|
(576
|
)
|
|
|
(818
|
)
|
|
|
(3,028
|
)
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
18,192
|
|
|
$
|
(530,770
|
)
|
|
$
|
37,033
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per common share:
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
0.36
|
|
|
$
|
(3.06
|
)
|
|
$
|
0.32
|
|
|
Income (loss) from discontinued operations attributable to Exterran
stockholders
|
|
|
(0.06
|
)
|
|
|
(5.60
|
)
|
|
|
0.25
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
0.30
|
|
|
$
|
(8.66
|
)
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per common share:
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
0.35
|
|
|
$
|
(3.06
|
)
|
|
$
|
0.32
|
|
|
Income (loss) from discontinued operations attributable to Exterran
stockholders
|
|
|
(0.05
|
)
|
|
|
(5.60
|
)
|
|
|
0.25
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
0.30
|
|
|
$
|
(8.66
|
)
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
Weighted average common and equivalent shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
61,579
|
|
|
|
61,277
|
|
|
|
64,940
|
|
|
Diluted
|
|
|
77,509
|
|
|
|
61,277
|
|
|
|
65,423
|
|
|
|
|
|
|
|
|
|
Income (loss) attributable to Exterran stockholders:
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
22,026
|
|
|
$
|
(187,447
|
)
|
|
$
|
20,963
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(3,834
|
)
|
|
|
(343,323
|
)
|
|
|
16,070
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
18,192
|
|
|
$
|
(530,770
|
)
|
|
$
|
37,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXTERRAN HOLDINGS, INC.
|
UNAUDITED SUPPLEMENTAL INFORMATION
|
(In thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
|
2009
|
|
2009
|
|
2008
|
Revenues:
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
167,567
|
|
|
$
|
178,455
|
|
|
$
|
197,926
|
|
|
International contract operations
|
|
|
96,420
|
|
|
|
95,448
|
|
|
|
99,680
|
|
|
Aftermarket services
|
|
|
75,526
|
|
|
|
78,504
|
|
|
|
94,044
|
|
|
Fabrication
|
|
|
340,193
|
|
|
|
325,561
|
|
|
|
364,608
|
|
|
Total
|
|
$
|
679,706
|
|
|
$
|
677,968
|
|
|
$
|
756,258
|
|
|
|
|
|
|
|
|
|
Gross Margin (1):
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
93,011
|
|
|
$
|
104,035
|
|
|
$
|
113,486
|
|
|
International contract operations
|
|
|
58,570
|
|
|
|
57,551
|
|
|
|
59,176
|
|
|
Aftermarket services
|
|
|
16,166
|
|
|
|
16,726
|
|
|
|
18,851
|
|
|
Fabrication
|
|
|
62,157
|
|
|
|
50,000
|
|
|
|
71,630
|
|
|
Total
|
|
$
|
229,904
|
|
|
$
|
228,312
|
|
|
$
|
263,143
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative
|
|
$
|
81,600
|
|
|
$
|
86,380
|
|
|
$
|
89,564
|
|
% of Revenues
|
|
|
12
|
%
|
|
|
13
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted (1)
|
|
$
|
161,072
|
|
|
$
|
151,365
|
|
|
$
|
172,401
|
|
% of Revenues
|
|
|
24
|
%
|
|
|
22
|
%
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
74,983
|
|
|
$
|
106,075
|
|
|
$
|
112,831
|
|
Less: Proceeds from Sale of PP&E
|
|
|
(4,060
|
)
|
|
|
(10,256
|
)
|
|
|
(18,418
|
)
|
Net Capital Expenditures
|
|
$
|
70,923
|
|
|
$
|
95,819
|
|
|
$
|
94,413
|
|
|
|
|
|
|
|
|
|
Gross Margin Percentage:
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
56
|
%
|
|
|
58
|
%
|
|
|
57
|
%
|
|
International contract operations
|
|
|
61
|
%
|
|
|
60
|
%
|
|
|
59
|
%
|
|
Aftermarket services
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
20
|
%
|
|
Fabrication
|
|
|
18
|
%
|
|
|
15
|
%
|
|
|
20
|
%
|
|
Total
|
|
|
34
|
%
|
|
|
34
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
4,339
|
|
|
|
4,340
|
|
|
|
4,540
|
|
|
International contract operations
|
|
|
1,220
|
|
|
|
1,214
|
|
|
|
1,151
|
|
|
Total
|
|
|
5,559
|
|
|
|
5,554
|
|
|
|
5,691
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
2,983
|
|
|
|
3,125
|
|
|
|
3,452
|
|
|
International contract operations
|
|
|
1,015
|
|
|
|
1,037
|
|
|
|
1,046
|
|
|
Total
|
|
|
3,998
|
|
|
|
4,162
|
|
|
|
4,498
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (average):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
3,052
|
|
|
|
3,207
|
|
|
|
3,456
|
|
|
International contract operations
|
|
|
1,025
|
|
|
|
1,037
|
|
|
|
1,049
|
|
|
Total
|
|
|
4,077
|
|
|
|
4,244
|
|
|
|
4,505
|
|
|
|
|
|
|
|
|
|
Horsepower Utilization (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
69
|
%
|
|
|
72
|
%
|
|
|
76
|
%
|
|
International contract operations
|
|
|
83
|
%
|
|
|
85
|
%
|
|
|
91
|
%
|
|
Total
|
|
|
72
|
%
|
|
|
75
|
%
|
|
|
79
|
%
|
|
|
|
|
|
|
|
|
Fabrication Backlog:
|
|
|
|
|
|
|
|
Compression & accessory
|
|
$
|
211,012
|
|
|
$
|
291,633
|
|
|
$
|
359,392
|
|
|
Production & processing equipment
|
|
|
570,751
|
|
|
|
652,772
|
|
|
|
731,874
|
|
|
Total
|
|
$
|
781,763
|
|
|
$
|
944,405
|
|
|
$
|
1,091,266
|
|
|
|
|
|
|
|
|
|
Debt to Capitalization:
|
|
|
|
|
|
|
|
Debt
|
|
$
|
2,385,748
|
|
|
$
|
2,509,777
|
|
|
$
|
2,467,773
|
|
|
Exterran stockholders' equity
|
|
|
1,606,444
|
|
|
|
1,570,256
|
|
|
|
3,239,237
|
|
|
Capitalization
|
|
$
|
3,992,192
|
|
|
$
|
4,080,033
|
|
|
$
|
5,707,010
|
|
|
Total Debt to Capitalization
|
|
|
59.8
|
%
|
|
|
61.5
|
%
|
|
|
43.2
|
%
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
22,602
|
|
|
$
|
(186,629
|
)
|
|
$
|
23,991
|
|
|
Depreciation and amortization
|
|
|
87,781
|
|
|
|
85,903
|
|
|
|
83,029
|
|
|
Fleet impairment
|
|
|
-
|
|
|
|
86,684
|
|
|
|
1,000
|
|
|
Restructuring charges
|
|
|
2,616
|
|
|
|
8,076
|
|
|
|
-
|
|
|
Investment in non-consolidated affiliates impairment
|
|
|
1,011
|
|
|
|
567
|
|
|
|
-
|
|
|
Goodwill impairment
|
|
|
-
|
|
|
|
150,778
|
|
|
|
-
|
|
|
Interest expense
|
|
|
33,371
|
|
|
|
29,163
|
|
|
|
33,401
|
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
3,728
|
|
|
Provision for (benefit from) income taxes
|
|
|
13,691
|
|
|
|
(23,177
|
)
|
|
|
27,252
|
|
|
EBITDA, as adjusted (1)
|
|
|
161,072
|
|
|
|
151,365
|
|
|
|
172,401
|
|
|
Selling, general and administrative
|
|
|
81,600
|
|
|
|
86,380
|
|
|
|
89,564
|
|
|
Equity in (income) loss of non-consolidated affiliates
|
|
|
1,011
|
|
|
|
567
|
|
|
|
(6,657
|
)
|
|
Investment in non-consolidated affiliates impairment
|
|
|
(1,011
|
)
|
|
|
(567
|
)
|
|
|
-
|
|
|
Other (income) expense, net
|
|
|
(12,768
|
)
|
|
|
(9,433
|
)
|
|
|
7,835
|
|
|
Gross Margin (1)
|
|
$
|
229,904
|
|
|
$
|
228,312
|
|
|
$
|
263,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
18,192
|
|
|
$
|
(530,770
|
)
|
|
$
|
37,033
|
|
|
(Income) loss from discontinued operations
|
|
|
3,834
|
|
|
|
343,323
|
|
|
|
(16,070
|
)
|
|
Charges, after-tax:
|
|
|
|
|
|
|
|
Fleet impairment
|
|
|
-
|
|
|
|
55,153
|
|
|
|
640
|
|
|
Restructuring charges
|
|
|
1,731
|
|
|
|
5,344
|
|
|
|
-
|
|
|
Investment in non-consolidated affiliates impairment
|
|
|
1,011
|
|
|
|
567
|
|
|
|
-
|
|
|
Goodwill impairment
|
|
|
-
|
|
|
|
150,778
|
|
|
|
-
|
|
|
Merger and integration expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
2,349
|
|
|
Net income from continuing operations attributable to Exterran
stockholders, excluding charges
|
|
$
|
24,768
|
|
|
$
|
24,395
|
|
|
$
|
23,952
|
|
|
|
|
|
|
|
|
|
|
Diluted Income (loss) from continuing operations attributable to
Exterran stockholders
|
|
$
|
0.35
|
|
|
$
|
(3.06
|
)
|
|
$
|
0.32
|
|
|
Adjustment for charges, after-tax, per common share
|
|
|
0.03
|
|
|
|
3.45
|
|
|
|
0.05
|
|
|
Diluted net income from continuing operations attributable to
Exterran stockholders per common share, excluding charges (1)
|
|
$
|
0.38
|
|
|
$
|
0.39
|
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
|
|
|
|
|
2009
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
$
|
41,317
|
|
$
|
45,077
|
|
$
|
44,390
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization)
|
|
|
19,802
|
|
|
20,176
|
|
|
19,900
|
|
Depreciation and amortization
|
|
|
9,042
|
|
|
8,678
|
|
|
7,542
|
|
Fleet impairment
|
|
|
-
|
|
|
2,995
|
|
|
-
|
|
Selling, general and administrative
|
|
|
4,961
|
|
|
5,551
|
|
|
2,423
|
|
Interest expense
|
|
|
5,039
|
|
|
4,805
|
|
|
4,967
|
|
Other (income) expense, net
|
|
|
324
|
|
|
-
|
|
|
-
|
|
Total costs and expenses
|
|
|
39,168
|
|
|
42,205
|
|
|
34,832
|
Income before income taxes
|
|
|
2,149
|
|
|
2,872
|
|
|
9,558
|
Income tax expense
|
|
|
141
|
|
|
134
|
|
|
147
|
|
Net income
|
|
$
|
2,008
|
|
$
|
2,738
|
|
$
|
9,411
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner interest in net income
|
|
$
|
289
|
|
$
|
304
|
|
$
|
432
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partner interest in net income
|
|
$
|
1,719
|
|
$
|
2,434
|
|
$
|
8,979
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average limited partners' units outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
19,125
|
|
|
19,107
|
|
|
18,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
19,148
|
|
|
19,113
|
|
|
18,320
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per limited partner unit:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
$
|
0.13
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.09
|
|
$
|
0.13
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
EXTERRAN PARTNERS, L.P.
|
|
UNAUDITED SUPPLEMENTAL INFORMATION
|
|
(In thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
|
|
|
|
2009
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
41,317
|
|
|
$
|
45,077
|
|
|
$
|
44,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin, as adjusted (1)
|
|
$
|
23,500
|
|
|
$
|
26,353
|
|
|
$
|
28,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as further adjusted (1)
|
|
$
|
18,405
|
|
|
$
|
21,077
|
|
|
$
|
22,694
|
|
% of Revenue
|
|
|
45
|
%
|
|
|
47
|
%
|
|
|
51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
3,341
|
|
|
$
|
4,152
|
|
|
$
|
4,390
|
|
Proceeds from Sale of Compression Equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net Capital Expenditures
|
|
$
|
3,341
|
|
|
$
|
4,152
|
|
|
$
|
4,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin percentage, as adjusted
|
|
|
57
|
%
|
|
|
58
|
%
|
|
|
63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow (2)
|
|
$
|
10,633
|
|
|
$
|
12,714
|
|
|
$
|
14,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions per Limited Partner Unit
|
|
$
|
0.4625
|
|
|
$
|
0.4625
|
|
|
$
|
0.4625
|
|
Distribution to All Unitholders, including Incentive Distributions
|
|
$
|
9,277
|
|
|
$
|
9,277
|
|
|
$
|
9,264
|
|
Distributable Cash Flow Coverage
|
|
1.15
|
x
|
|
1.37
|
x
|
|
1.60
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
|
|
|
|
2009
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
384,500
|
|
|
$
|
387,750
|
|
|
$
|
399,750
|
|
Total Partners' Capital
|
|
$
|
173,809
|
|
|
$
|
175,205
|
|
|
$
|
175,151
|
|
Total Debt to Capitalization
|
|
|
69
|
%
|
|
|
69
|
%
|
|
|
70
|
%
|
EBITDA, as further adjusted (1) to Interest Expense
|
|
3.7
|
x
|
|
4.4
|
x
|
|
4.6
|
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
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,008
|
|
|
$
|
2,738
|
|
|
$
|
9,411
|
|
|
Income tax expense
|
|
|
141
|
|
|
|
134
|
|
|
|
147
|
|
|
Depreciation and amortization
|
|
|
9,042
|
|
|
|
8,678
|
|
|
|
7,542
|
|
|
Fleet impairment
|
|
|
-
|
|
|
|
2,995
|
|
|
|
-
|
|
|
Cap on operating and selling, general and administrative costs
provided by Exterran Holdings ("EXH")
|
|
|
1,985
|
|
|
|
1,452
|
|
|
|
3,589
|
|
|
Non-cash selling, general and administrative costs
|
|
|
190
|
|
|
|
275
|
|
|
|
(2,962
|
)
|
|
Interest expense, net of interest income
|
|
|
5,039
|
|
|
|
4,805
|
|
|
|
4,967
|
|
|
EBITDA, as further adjusted (1)
|
|
|
18,405
|
|
|
|
21,077
|
|
|
|
22,694
|
|
|
Cash selling, general and administrative costs
|
|
|
4,771
|
|
|
|
5,276
|
|
|
|
5,385
|
|
|
Less: cap on selling, general and administrative costs provided by
EXH
|
|
|
-
|
|
|
|
-
|
|
|
|
(16
|
)
|
|
Less: other (income) expense, net
|
|
|
324
|
|
|
|
-
|
|
|
|
-
|
|
|
Gross Margin, as adjusted for operating cost caps provided by EXH (1)
|
|
$
|
23,500
|
|
|
$
|
26,353
|
|
|
$
|
28,063
|
|
|
Other income (expense), net
|
|
|
(324
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Expensed acquisition costs
|
|
|
324
|
|
|
|
-
|
|
|
|
-
|
|
|
Less: Cash interest expense
|
|
|
(4,915
|
)
|
|
|
(4,677
|
)
|
|
|
(4,835
|
)
|
|
Less: Cash selling, general and administrative, as adjusted for
cost caps provided by EXH
|
|
|
(4,771
|
)
|
|
|
(5,276
|
)
|
|
|
(5,369
|
)
|
|
Less: Income tax expense
|
|
|
(141
|
)
|
|
|
(134
|
)
|
|
|
(147
|
)
|
|
Less: Maintenance capital expenditures
|
|
|
(3,040
|
)
|
|
|
(3,552
|
)
|
|
|
(2,914
|
)
|
|
Distributable cash flow (2)
|
|
$
|
10,633
|
|
|
$
|
12,714
|
|
|
$
|
14,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
16,182
|
|
|
$
|
22,773
|
|
|
$
|
10,311
|
|
|
Amortization of debt issuance cost
|
|
|
(87
|
)
|
|
|
(91
|
)
|
|
|
(94
|
)
|
|
Amortization of fair value of acquired interest rate swaps
|
|
|
(37
|
)
|
|
|
(37
|
)
|
|
|
(38
|
)
|
|
Cap on operating and selling, general and administrative costs
provided by EXH
|
|
|
1,985
|
|
|
|
1,452
|
|
|
|
3,589
|
|
|
Interest expense, net of interest income
|
|
|
5,039
|
|
|
|
4,805
|
|
|
|
4,967
|
|
|
Expensed acquisition costs
|
|
|
324
|
|
|
|
-
|
|
|
|
-
|
|
|
Cash interest expense
|
|
|
(4,915
|
)
|
|
|
(4,677
|
)
|
|
|
(4,835
|
)
|
|
Maintenance capital expenditures
|
|
|
(3,040
|
)
|
|
|
(3,552
|
)
|
|
|
(2,914
|
)
|
|
Change in current assets/liabilities
|
|
|
(4,818
|
)
|
|
|
(7,959
|
)
|
|
|
3,812
|
|
|
Distributable cash flow (2)
|
|
$
|
10,633
|
|
|
$
|
12,714
|
|
|
$
|
14,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,008
|
|
|
$
|
2,738
|
|
|
$
|
9,411
|
|
|
Fleet impairment
|
|
|
-
|
|
|
|
2,995
|
|
|
|
-
|
|
|
Net income, excluding charge
|
|
$
|
2,008
|
|
|
$
|
5,733
|
|
|
$
|
9,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per limited partner unit
|
|
$
|
0.09
|
|
|
$
|
0.13
|
|
|
$
|
0.49
|
|
|
Adjustment for charge per limited partner unit
|
|
|
-
|
|
|
|
0.15
|
|
|
|
-
|
|
|
Diluted earnings per limited partner unit, excluding charge (1)
|
|
$
|
0.09
|
|
|
$
|
0.28
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
2009
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end)
|
|
1,039
|
|
|
1,034
|
|
|
1,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end)
|
|
808
|
|
|
840
|
|
|
909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Operating Horsepower
|
|
819
|
|
|
859
|
|
|
829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Horsepower Utilization:
|
|
|
|
|
|
|
|
Spot (at period end)
|
|
78
|
%
|
|
81
|
%
|
|
89
|
%
|
|
Average
|
|
79
|
%
|
|
83
|
%
|
|
89
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined U.S. Contract Operations Horsepower of Exterran Holdings
and Exterran Partners covered by contracts converted to service
agreements (at period end)
|
|
1,861
|
|
|
1,917
|
|
|
1,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Available U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
|
4,233
|
|
|
4,234
|
|
|
4,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of U.S. Contract Operations Available Horsepower of Exterran
Holdings and Exterran Partners covered by contracts converted to
service agreements (at period end)
|
|
45
|
%
|
|
45
|
%
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
|
2,927
|
|
|
3,066
|
|
|
3,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of U.S. Contract Operations Operating Horsepower of Exterran
Holdings and Exterran Partners covered by contracts converted to
service agreements (at period end)
|
|
65
|
%
|
|
63
|
%
|
|
51
|
%
|
Source: Exterran Holdings, Inc. and Exterran Partners, L.P.
Exterran
Investors:
David Oatman, 281-836-7035
Media:
Susan
Nelson, 281-836-7297