HOUSTON, May 06, 2010 (BUSINESS WIRE) --Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P.
(NASDAQ:EXLP) today reported financial results for the first quarter
2010.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported net income attributable to Exterran
stockholders for the first quarter 2010 of $16.7 million, or $0.27 per
diluted share, compared to net income attributable to Exterran
stockholders for the fourth quarter 2009 of $22.6 million, or $0.37 per
diluted share, and a net loss attributable to Exterran stockholders for
the first quarter 2009 of $59.4 million, or $0.97 per diluted share.
Net loss from continuing operations attributable to Exterran
stockholders for the first quarter 2010 was $1.5 million, or $0.02 per
diluted share, excluding an after-tax gain of $8.8 million on the sale
of assets related to our former Cawthorne Channel project and a non-cash
after-tax asset impairment charge of $1.1 million. Net loss from
continuing operations for the fourth quarter 2009 attributable to
Exterran stockholders, excluding charges, was $16.9 million, or $0.27
per diluted share, and 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.
Revenue was $576.3 million for the first quarter 2010, compared to
$654.7 million for the fourth quarter 2009 and $703.2 million for the
first quarter 2009. EBITDA, as adjusted (as defined below), was $123.9
million for the first quarter 2010, compared to $139.6 million for the
fourth quarter 2009 and $163.9 million for the first quarter 2009.
Ernie L. Danner, Exterran Holdings' President and Chief Executive
Officer, said, "With a continued focus on controlling operating and
capital costs throughout the company, we generated significant cash flow
and reduced our outstanding debt balance by $117 million in the first
quarter. While we are encouraged by the continuing stabilization of our
North America contract operations compression fleet utilization, we
believe weak natural gas prices may limit our near-term growth
opportunities. We are pleased about our recently announced agreement to
build, own and operate two gas processing plants under long-term
contracts in the Appalachian Basin in the northeast United States, an
example of our strategy to meet customers' needs by delivering
Exterran's unique combination of capital, engineering, manufacturing and
service expertise.
"We are optimistic about the longer-term outlook for our business. This
outlook is driven by an improvement in the overall level of new business
inquiry and bid activity for our worldwide products and services. We
also believe the growth opportunities associated with industry
development of emerging shale gas plays in North America and energy
infrastructure projects in Latin America and the Eastern Hemisphere will
be beneficial to us over the long-term. We continue to anticipate net
capital expenditures of $250 million to $300 million in 2010 to meet
some of these opportunities, and believe we will continue to generate
positive operating cash flow after capital expenditures for the
remainder of the year and the foreseeable future."
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $52.7 million for the first
quarter 2010, compared to $47.1 million for the fourth quarter 2009 and
$48.2 million for the first quarter 2009. Net income was $1.4 million,
or $0.05 per diluted limited partner unit, for the first quarter 2010,
compared to $3.3 million, or $0.13 per diluted limited partner unit, for
the fourth quarter 2009 and $6.7 million, or $0.33 per diluted limited
partner unit, for the first quarter 2009.
Exterran Partners' EBITDA, as further adjusted (as defined below),
totaled $22.4 million for the first quarter 2010, compared to $21.6
million for the fourth quarter 2009 and $22.8 million for the first
quarter 2009. Distributable cash flow (as defined below) totaled $14.4
million for the first quarter 2010, compared to $13.2 million for the
fourth quarter 2009 and $13.2 million for the first quarter 2009.
"First quarter performance was enhanced by continuing cost controls and
a full quarter contribution from the acquisition of an additional
270,000 horsepower from Exterran Holdings completed in November 2009,"
commented Mr. Danner, Chairman, President and Chief Executive Officer of
Exterran Partners' managing general partner. "While we are encouraged by
the financial and operating performance, solid distributable cash flow
coverage and increased operating horsepower during the quarter, the weak
natural gas price environment is a near-term concern."
On April 30, 2010, Exterran Partners announced a cash distribution of
$0.4625 per limited partner unit for the first quarter 2010, the same
level as in the fourth quarter 2009 and the first quarter 2009. This
distribution will be paid on May 14, 2010 to unitholders of record as of
the close of business on May 11, 2010.
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 2010 earnings release:
- Teleconference: Thursday, May 6, 2010 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
26940619.
- 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 6, 2010,
until 2:00 p.m. Eastern Time on Thursday, May 13, 2010. 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 26940619.
*****
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 Section 21E of the
Securities Exchange Act of 1934, as amended. 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 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, 2009, Exterran Partners' Annual Report on Form 10-K for the
year ended December 31, 2009, 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, 2010
|
|
December 31, 2009
|
|
March 31, 2009
|
Revenues:
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
152,627
|
|
|
$
|
154,900
|
|
|
$
|
194,393
|
|
International contract operations
|
|
|
109,740
|
|
|
|
109,448
|
|
|
|
90,679
|
|
Aftermarket services
|
|
|
70,323
|
|
|
|
79,312
|
|
|
|
75,531
|
|
Fabrication
|
|
|
243,618
|
|
|
|
311,055
|
|
|
|
342,609
|
|
|
|
|
576,308
|
|
|
|
654,715
|
|
|
|
703,212
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization expense):
|
|
|
|
|
|
|
North America contract operations
|
|
|
71,375
|
|
|
|
66,033
|
|
|
|
83,705
|
|
International contract operations
|
|
|
40,855
|
|
|
|
40,701
|
|
|
|
32,805
|
|
Aftermarket services
|
|
|
56,612
|
|
|
|
64,994
|
|
|
|
59,754
|
|
Fabrication
|
|
|
196,873
|
|
|
|
265,855
|
|
|
|
286,714
|
|
Selling, general and administrative
|
|
|
84,051
|
|
|
|
84,529
|
|
|
|
85,111
|
|
Depreciation and amortization
|
|
|
91,775
|
|
|
|
97,028
|
|
|
|
82,073
|
|
Long-lived asset impairment
|
|
|
1,707
|
|
|
|
4,704
|
|
|
|
5,600
|
|
Restructuring charges
|
|
|
-
|
|
|
|
1,933
|
|
|
|
1,704
|
|
Interest expense
|
|
|
32,934
|
|
|
|
33,577
|
|
|
|
26,734
|
|
Equity in (income) loss of non-consolidated affiliates
|
|
|
-
|
|
|
|
(1,541
|
)
|
|
|
91,117
|
|
Other (income) expense, net
|
|
|
(2,183
|
)
|
|
|
(27,797
|
)
|
|
|
(3,362
|
)
|
|
|
|
573,999
|
|
|
|
630,016
|
|
|
|
751,955
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
2,309
|
|
|
|
24,699
|
|
|
|
(48,743
|
)
|
Provision for (benefit from) income taxes
|
|
|
(3,999
|
)
|
|
|
50,190
|
|
|
|
10,963
|
|
Income (loss) from continuing operations
|
|
|
6,308
|
|
|
|
(25,491
|
)
|
|
|
(59,706
|
)
|
Income from discontinued operations, net of tax
|
|
|
10,425
|
|
|
|
49,112
|
|
|
|
1,806
|
|
Net income (loss)
|
|
|
16,733
|
|
|
|
23,621
|
|
|
|
(57,900
|
)
|
Less: net income attributable to the noncontrolling interest
|
|
|
(71
|
)
|
|
|
(1,036
|
)
|
|
|
(1,514
|
)
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
16,662
|
|
|
$
|
22,585
|
|
|
$
|
(59,414
|
)
|
|
|
|
|
|
|
|
Basic income (loss) per common share:
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
0.10
|
|
|
$
|
(0.43
|
)
|
|
$
|
(1.00
|
)
|
Income from discontinued operations attributable to Exterran
stockholders
|
|
|
0.17
|
|
|
|
0.80
|
|
|
|
0.03
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
0.27
|
|
|
$
|
0.37
|
|
|
$
|
(0.97
|
)
|
|
|
|
|
|
|
|
Diluted income (loss) per common share:
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
0.10
|
|
|
$
|
(0.43
|
)
|
|
$
|
(1.00
|
)
|
Income from discontinued operations attributable to Exterran
stockholders
|
|
$
|
0.17
|
|
|
|
0.80
|
|
|
|
0.03
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
0.27
|
|
|
$
|
0.37
|
|
|
$
|
(0.97
|
)
|
|
|
|
|
|
|
|
Weighted average common and equivalent shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
61,836
|
|
|
|
61,651
|
|
|
|
61,209
|
|
Diluted
|
|
|
62,546
|
|
|
|
61,651
|
|
|
|
61,209
|
|
|
|
|
|
|
|
|
Income (loss) attributable to Exterran stockholders:
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
6,237
|
|
|
$
|
(26,527
|
)
|
|
$
|
(61,220
|
)
|
Income from discontinued operations, net of tax
|
|
|
10,425
|
|
|
|
49,112
|
|
|
|
1,806
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
16,662
|
|
|
$
|
22,585
|
|
|
$
|
(59,414
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXTERRAN HOLDINGS, INC. UNAUDITED SUPPLEMENTAL
INFORMATION (In thousands, except percentages) |
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2010
|
|
December 31, 2009
|
|
March 31, 2009
|
Revenues:
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
152,627
|
|
|
$
|
154,900
|
|
|
$
|
194,393
|
|
International contract operations
|
|
|
109,740
|
|
|
|
109,448
|
|
|
|
90,679
|
|
Aftermarket services
|
|
|
70,323
|
|
|
|
79,312
|
|
|
|
75,531
|
|
Fabrication
|
|
|
243,618
|
|
|
|
311,055
|
|
|
|
342,609
|
|
Total
|
|
$
|
576,308
|
|
|
$
|
654,715
|
|
|
$
|
703,212
|
|
|
|
|
|
|
|
|
Gross Margin (1):
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
81,252
|
|
|
$
|
88,867
|
|
|
$
|
110,688
|
|
International contract operations
|
|
|
68,885
|
|
|
|
68,747
|
|
|
|
57,874
|
|
Aftermarket services
|
|
|
13,711
|
|
|
|
14,318
|
|
|
|
15,777
|
|
Fabrication
|
|
|
46,745
|
|
|
|
45,200
|
|
|
|
55,895
|
|
Total
|
|
$
|
210,593
|
|
|
$
|
217,132
|
|
|
$
|
240,234
|
|
|
|
|
|
|
|
|
Selling, General and Administrative
|
|
$
|
84,051
|
|
|
$
|
84,529
|
|
|
$
|
85,111
|
|
% of Revenues
|
|
|
15
|
%
|
|
|
13
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
EBITDA, as adjusted (1)
|
|
$
|
123,862
|
|
|
$
|
139,594
|
|
|
$
|
163,924
|
|
% of Revenues
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
23
|
%
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
47,861
|
|
|
$
|
65,341
|
|
|
$
|
122,502
|
|
Less: Proceeds from Sale of PP&E
|
|
|
(5,386
|
)
|
|
|
(51,587
|
)
|
|
|
(3,194
|
)
|
Net Capital Expenditures
|
|
$
|
42,475
|
|
|
$
|
13,754
|
|
|
$
|
119,308
|
|
|
|
|
|
|
|
|
Gross Margin Percentage:
|
|
|
|
|
|
|
North America contract operations
|
|
|
53
|
%
|
|
|
57
|
%
|
|
|
57
|
%
|
International contract operations
|
|
|
63
|
%
|
|
|
63
|
%
|
|
|
64
|
%
|
Aftermarket services
|
|
|
19
|
%
|
|
|
18
|
%
|
|
|
21
|
%
|
Fabrication
|
|
|
19
|
%
|
|
|
15
|
%
|
|
|
16
|
%
|
Total
|
|
|
37
|
%
|
|
|
33
|
%
|
|
|
34
|
%
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end):
|
|
|
|
|
|
|
North America contract operations
|
|
|
4,293
|
|
|
|
4,321
|
|
|
|
4,576
|
|
International contract operations
|
|
|
1,232
|
|
|
|
1,234
|
|
|
|
1,180
|
|
Total
|
|
|
5,525
|
|
|
|
5,555
|
|
|
|
5,756
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end):
|
|
|
|
|
|
|
North America contract operations
|
|
|
2,838
|
|
|
|
2,867
|
|
|
|
3,308
|
|
International contract operations
|
|
|
1,022
|
|
|
|
1,032
|
|
|
|
1,018
|
|
Total
|
|
|
3,860
|
|
|
|
3,899
|
|
|
|
4,326
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (average):
|
|
|
|
|
|
|
North America contract operations
|
|
|
2,855
|
|
|
|
2,920
|
|
|
|
3,389
|
|
International contract operations
|
|
|
1,026
|
|
|
|
1,022
|
|
|
|
1,041
|
|
Total
|
|
|
3,881
|
|
|
|
3,942
|
|
|
|
4,430
|
|
|
|
|
|
|
|
|
Horsepower Utilization (at period end):
|
|
|
|
|
|
|
North America contract operations
|
|
|
66
|
%
|
|
|
66
|
%
|
|
|
72
|
%
|
International contract operations
|
|
|
83
|
%
|
|
|
84
|
%
|
|
|
86
|
%
|
Total
|
|
|
70
|
%
|
|
|
70
|
%
|
|
|
75
|
%
|
|
|
|
|
|
|
|
Fabrication Backlog:
|
|
|
|
|
|
|
Compression & accessory
|
|
$
|
276,966
|
|
|
$
|
296,850
|
|
|
$
|
354,816
|
|
Production & processing equipment
|
|
|
488,204
|
|
|
|
515,607
|
|
|
|
695,792
|
|
Total
|
|
$
|
765,170
|
|
|
$
|
812,457
|
|
|
$
|
1,050,608
|
|
|
|
|
|
|
|
|
Debt to Capitalization:
|
|
|
|
|
|
|
Debt
|
|
$
|
2,143,945
|
|
|
$
|
2,260,936
|
|
|
$
|
2,553,908
|
|
Exterran stockholders' equity
|
|
|
1,654,724
|
|
|
|
1,639,997
|
|
|
|
1,980,704
|
|
Capitalization
|
|
$
|
3,798,669
|
|
|
$
|
3,900,933
|
|
|
$
|
4,534,612
|
|
Total Debt to Capitalization
|
|
|
56.4
|
%
|
|
|
58.0
|
%
|
|
|
56.3
|
%
|
|
|
|
|
|
|
|
(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, 2010
|
|
December 31, 2009
|
|
March 31, 2009
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
6,308
|
|
|
$
|
(25,491
|
)
|
|
$
|
(59,706
|
)
|
Depreciation and amortization
|
|
|
91,775
|
|
|
|
97,028
|
|
|
|
82,073
|
|
Long-lived asset impairment
|
|
|
1,707
|
|
|
|
4,704
|
|
|
|
5,600
|
|
Restructuring charges
|
|
|
-
|
|
|
|
1,933
|
|
|
|
1,704
|
|
Investment in non-consolidated affiliates (income) impairment
|
|
|
-
|
|
|
|
(1,541
|
)
|
|
|
96,556
|
|
Interest expense
|
|
|
32,934
|
|
|
|
33,577
|
|
|
|
26,734
|
|
Gain on sale of our investment in the subsidiary that owns the
barge mounted processing plant and other related assets used on
the Cawthorne Channel Project
|
|
|
-
|
|
|
|
(20,806
|
)
|
|
|
-
|
|
Gain on sale of a loan and our interest in an entity related to the
Cawthorne Channel Project
|
|
|
(4,863
|
)
|
|
|
-
|
|
|
|
-
|
|
Provision for (benefit from) income taxes
|
|
|
(3,999
|
)
|
|
|
50,190
|
|
|
|
10,963
|
|
EBITDA, as adjusted (1)
|
|
|
123,862
|
|
|
|
139,594
|
|
|
|
163,924
|
|
Selling, general and administrative
|
|
|
84,051
|
|
|
|
84,529
|
|
|
|
85,111
|
|
Equity in (income) loss of non-consolidated affiliates
|
|
|
-
|
|
|
|
(1,541
|
)
|
|
|
91,117
|
|
Investment in non-consolidated affiliates impairment
|
|
|
-
|
|
|
|
1,541
|
|
|
|
(96,556
|
)
|
Gain on sale of our investment in the subsidiary that owns the
barge mounted processing plant and other related assets used on
the Cawthorne Channel Project
|
|
|
-
|
|
|
|
20,806
|
|
|
|
-
|
|
Gain on sale of a loan and our interest in an entity related to the
Cawthorne Channel Project
|
|
|
4,863
|
|
|
|
-
|
|
|
|
-
|
|
Other (income) expense, net
|
|
|
(2,183
|
)
|
|
|
(27,797
|
)
|
|
|
(3,362
|
)
|
Gross Margin (1)
|
|
$
|
210,593
|
|
|
$
|
217,132
|
|
|
$
|
240,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
16,662
|
|
|
$
|
22,585
|
|
|
$
|
(59,414
|
)
|
Income from discontinued operations
|
|
|
(10,425
|
)
|
|
|
(49,112
|
)
|
|
|
(1,806
|
)
|
Charges, after-tax:
|
|
|
|
|
|
|
Long-lived asset impairment
|
|
|
1,075
|
|
|
|
2,975
|
|
|
|
3,584
|
|
Restructuring charges
|
|
|
-
|
|
|
|
1,276
|
|
|
|
1,091
|
|
Investment in non-consolidated affiliates impairment
|
|
|
-
|
|
|
|
(1,541
|
)
|
|
|
88,156
|
|
Gain on sale of our investment in the subsidiary that owns the
barge mounted processing plant and other related assets used on
the Cawthorne Channel Project
|
|
|
-
|
|
|
|
(12,067
|
)
|
|
|
-
|
|
Gain on sale of a loan and our interest in an entity related to the
Cawthorne Channel Project
|
|
|
(8,807
|
)
|
|
|
-
|
|
|
|
-
|
|
Tax provision related to legal entity restructuring and foreign tax
assessment for prior period
|
|
|
-
|
|
|
|
18,959
|
|
|
|
-
|
|
Net income (loss) from continuing operations attributable to
Exterran stockholders, excluding charges
|
|
$
|
(1,495
|
)
|
|
$
|
(16,925
|
)
|
|
$
|
31,611
|
|
|
|
|
|
|
|
|
Diluted Income (loss) from continuing operations attributable to
Exterran stockholders
|
|
$
|
0.10
|
|
|
$
|
(0.43
|
)
|
|
$
|
(1.00
|
)
|
Adjustment for charges, after-tax, per common share
|
|
|
(0.12
|
)
|
|
|
0.16
|
|
|
|
1.51
|
|
Diluted net income (loss) from continuing operations attributable
to Exterran stockholders per common share, excluding charges (1)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
(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, 2010
|
|
December 31, 2009
|
|
March 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
52,710
|
|
|
$
|
47,102
|
|
|
$
|
48,233
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization)
|
|
|
25,851
|
|
|
|
21,320
|
|
|
|
22,182
|
Depreciation and amortization
|
|
|
11,878
|
|
|
|
10,398
|
|
|
|
8,334
|
Long-lived asset impairment
|
|
|
231
|
|
|
|
156
|
|
|
|
-
|
Selling, general and administrative
|
|
|
7,695
|
|
|
|
7,713
|
|
|
|
6,001
|
Interest expense
|
|
|
5,692
|
|
|
|
5,640
|
|
|
|
4,819
|
Other (income) expense, net
|
|
|
(236
|
)
|
|
|
(1,559
|
)
|
|
|
27
|
Total costs and expenses
|
|
|
51,111
|
|
|
|
43,668
|
|
|
|
41,363
|
Income before income taxes
|
|
|
1,599
|
|
|
|
3,434
|
|
|
|
6,870
|
Income tax expense
|
|
|
173
|
|
|
|
117
|
|
|
|
149
|
Net income
|
|
$
|
1,426
|
|
|
$
|
3,317
|
|
|
$
|
6,721
|
|
|
|
|
|
|
|
General partner interest in net income
|
|
$
|
340
|
|
|
$
|
377
|
|
|
$
|
383
|
|
|
|
|
|
|
|
Limited partner interest in net income
|
|
$
|
1,086
|
|
|
$
|
2,940
|
|
|
$
|
6,338
|
|
|
|
|
|
|
|
Weighted average limited partners' units outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
23,871
|
|
|
|
21,798
|
|
|
|
19,101
|
|
|
|
|
|
|
|
Diluted
|
|
|
23,876
|
|
|
|
21,830
|
|
|
|
19,103
|
|
|
|
|
|
|
|
Earnings per limited partner unit:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.05
|
|
|
$
|
0.13
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.05
|
|
|
$
|
0.13
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
EXTERRAN PARTNERS, L.P. UNAUDITED SUPPLEMENTAL
INFORMATION (In thousands, except per unit amounts and
percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2010
|
|
December 31, 2009
|
|
March 31, 2009
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
52,710
|
|
|
$
|
47,102
|
|
|
$
|
48,233
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin, as adjusted (1)
|
|
$
|
29,653
|
|
|
$
|
26,938
|
|
|
$
|
28,704
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as further adjusted (1)
|
|
$
|
22,384
|
|
|
$
|
21,592
|
|
|
$
|
22,766
|
|
% of Revenue
|
|
|
42
|
%
|
|
|
46
|
%
|
|
|
47
|
%
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
2,570
|
|
|
$
|
3,199
|
|
|
$
|
7,201
|
|
Proceeds from Sale of Compression Equipment
|
|
|
-
|
|
|
|
(4,457
|
)
|
|
|
-
|
|
Net Capital Expenditures
|
|
$
|
2,570
|
|
|
$
|
(1,258
|
)
|
|
$
|
7,201
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin percentage, as adjusted
|
|
|
56
|
%
|
|
|
57
|
%
|
|
|
60
|
%
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow (2)
|
|
$
|
14,397
|
|
|
$
|
13,207
|
|
|
$
|
13,226
|
|
|
|
|
|
|
|
|
|
|
|
Distributions per Limited Partner Unit
|
|
$
|
0.4625
|
|
|
$
|
0.4625
|
|
|
$
|
0.4625
|
|
Distribution to All Unitholders, including Incentive Distributions
|
|
$
|
11,589
|
|
|
$
|
11,580
|
|
|
$
|
9,271
|
|
Distributable Cash Flow Coverage
|
|
1.24
|
x
|
|
1.14
|
x
|
|
1.43
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2010
|
|
December 31, 2009
|
|
March 31, 2009
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
430,500
|
|
|
$
|
432,500
|
|
|
$
|
400,250
|
|
Total Partners' Capital
|
|
$
|
253,057
|
|
|
$
|
258,308
|
|
|
$
|
177,513
|
|
Total Debt to Capitalization
|
|
|
63
|
%
|
|
|
63
|
%
|
|
|
69
|
%
|
EBITDA, as further adjusted (1) to Interest Expense
|
|
3.9
|
x
|
|
3.8
|
x
|
|
4.7
|
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, except per unit amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2010
|
|
December 31, 2009
|
|
March 31, 2009
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,426
|
|
|
$
|
3,317
|
|
|
$
|
6,721
|
|
Income tax expense
|
|
|
173
|
|
|
|
117
|
|
|
|
149
|
|
Depreciation and amortization
|
|
|
11,878
|
|
|
|
10,398
|
|
|
|
8,334
|
|
Long-lived asset impairment
|
|
|
231
|
|
|
|
156
|
|
|
|
-
|
|
Cap on operating and selling, general and administrative costs
provided by Exterran Holdings ("EXH")
|
|
|
2,794
|
|
|
|
1,708
|
|
|
|
2,653
|
|
Non-cash selling, general and administrative costs
|
|
|
190
|
|
|
|
256
|
|
|
|
90
|
|
Interest expense, net of interest income
|
|
|
5,692
|
|
|
|
5,640
|
|
|
|
4,819
|
|
EBITDA, as further adjusted (1)
|
|
|
22,384
|
|
|
|
21,592
|
|
|
|
22,766
|
|
Cash selling, general and administrative costs
|
|
|
7,505
|
|
|
|
7,457
|
|
|
|
5,911
|
|
Less: cap on selling, general and administrative costs provided by
EXH
|
|
|
-
|
|
|
|
(552
|
)
|
|
|
-
|
|
Less: other income, expense, net
|
|
|
(236
|
)
|
|
|
(1,559
|
)
|
|
|
27
|
|
Gross Margin, as adjusted for operating cost caps provided by EXH (1)
|
|
$
|
29,653
|
|
|
$
|
26,938
|
|
|
$
|
28,704
|
|
Other (income), expense, net
|
|
|
236
|
|
|
|
1,559
|
|
|
|
(27
|
)
|
Expensed acquisition costs
|
|
|
-
|
|
|
|
452
|
|
|
|
-
|
|
Less: Gain on sale of compression equipment
|
|
|
(247
|
)
|
|
|
(2,011
|
)
|
|
|
-
|
|
Less: Cash interest expense
|
|
|
(5,420
|
)
|
|
|
(5,420
|
)
|
|
|
(4,686
|
)
|
Less: Cash selling, general and administrative, as adjusted for
cost caps provided by EXH
|
|
|
(7,505
|
)
|
|
|
(6,905
|
)
|
|
|
(5,911
|
)
|
Less: Income tax expense
|
|
|
(173
|
)
|
|
|
(117
|
)
|
|
|
(149
|
)
|
Less: Maintenance capital expenditures
|
|
|
(2,147
|
)
|
|
|
(1,289
|
)
|
|
|
(4,705
|
)
|
Distributable cash flow (2)
|
|
$
|
14,397
|
|
|
$
|
13,207
|
|
|
$
|
13,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
15,773
|
|
|
$
|
5,759
|
|
|
$
|
11,222
|
|
Amortization of debt issuance cost
|
|
|
(235
|
)
|
|
|
(184
|
)
|
|
|
(95
|
)
|
Amortization of fair value of acquired interest rate swaps
|
|
|
(37
|
)
|
|
|
(37
|
)
|
|
|
(38
|
)
|
Provision for doubtful accounts
|
|
|
-
|
|
|
|
(401
|
)
|
|
|
(150
|
)
|
Cap on operating and selling, general and administrative costs
provided by EXH
|
|
|
2,794
|
|
|
|
1,708
|
|
|
|
2,653
|
|
Interest expense, net of interest income
|
|
|
5,692
|
|
|
|
5,640
|
|
|
|
4,819
|
|
Expensed acquisition costs
|
|
|
-
|
|
|
|
452
|
|
|
|
-
|
|
Cash interest expense
|
|
|
(5,420
|
)
|
|
|
(5,420
|
)
|
|
|
(4,686
|
)
|
Maintenance capital expenditures
|
|
|
(2,147
|
)
|
|
|
(1,289
|
)
|
|
|
(4,705
|
)
|
Change in current assets/liabilities
|
|
|
(2,023
|
)
|
|
|
6,979
|
|
|
|
4,206
|
|
Distributable cash flow (2)
|
|
$
|
14,397
|
|
|
$
|
13,207
|
|
|
$
|
13,226
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,426
|
|
|
$
|
3,317
|
|
|
$
|
6,721
|
|
Long-lived asset impairment
|
|
|
231
|
|
|
|
156
|
|
|
|
-
|
|
Net income, excluding charge
|
|
$
|
1,657
|
|
|
$
|
3,473
|
|
|
$
|
6,721
|
|
|
|
|
|
|
|
|
Diluted earnings per limited partner unit
|
|
$
|
0.05
|
|
|
$
|
0.13
|
|
|
$
|
0.33
|
|
Adjustment for charge per limited partner unit
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
Diluted earnings per limited partner unit, excluding charge (1)
|
|
$
|
0.05
|
|
|
$
|
0.14
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
(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
|
|
|
March 31, 2010
|
|
December 31, 2009
|
|
March 31, 2009
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end)
|
|
1,318
|
|
|
1,304
|
|
|
1,041
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end)
|
|
1,060
|
|
|
1,050
|
|
|
887
|
|
|
|
|
|
|
|
|
Average Operating Horsepower
|
|
1,060
|
|
|
908
|
|
|
900
|
|
|
|
|
|
|
|
|
Horsepower Utilization:
|
|
|
|
|
|
|
Spot (at period end)
|
|
80
|
%
|
|
81
|
%
|
|
85
|
%
|
Average
|
|
81
|
%
|
|
79
|
%
|
|
87
|
%
|
|
|
|
|
|
|
|
Combined U.S. Contract Operations Horsepower of Exterran Holdings
|
|
|
|
|
|
|
and Exterran Partners covered by contracts converted to service
|
|
|
|
|
|
|
agreements (at period end)
|
|
1,805
|
|
|
1,764
|
|
|
1,812
|
|
|
|
|
|
|
|
|
Available Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Available U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
|
4,185
|
|
|
4,213
|
|
|
4,464
|
|
|
|
|
|
|
|
|
% of U.S. Contract Operations Available Horsepower of Exterran
Holdings and Exterran Partners covered by contracts converted to
service agreements (at period end)
|
|
43
|
%
|
|
42
|
%
|
|
41
|
%
|
|
|
|
|
|
|
|
Operating Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
|
2,785
|
|
|
2,813
|
|
|
3,247
|
|
|
|
|
|
|
|
|
% 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
|
%
|
|
56
|
%
|
SOURCE: Exterran Holdings, Inc. and Exterran Partners, L.P.
Exterran
David Oatman, 281-836-7035 (Investors)
Susan Nelson, 281-836-7297 (Media)