HOUSTON, Nov 04, 2010 (BUSINESS WIRE) --
Exterran Holdings, Inc. (NYSE:EXH) and Exterran Partners, L.P.
(NASDAQ:EXLP) today reported financial results for the third quarter
2010.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported a net loss attributable to Exterran
stockholders for the third quarter 2010 of $18.0 million, or $0.29 per
diluted share, compared to net income attributable to Exterran
stockholders for the second quarter 2010 of $17.5 million, or $0.28 per
diluted share, and net income attributable to Exterran stockholders for
the third quarter 2009 of $18.2 million, or $0.30 per diluted share.
Net loss from continuing operations attributable to Exterran
stockholders for the third quarter 2010 was $15.2 million, or $0.25 per
diluted share, excluding after-tax impairment charges of $1.4 million.
Net loss from continuing operations for the second quarter 2010
attributable to Exterran stockholders, excluding charges, was $20.6
million, or $0.33 per diluted share, and net income from continuing
operations for the third quarter 2009 attributable to Exterran
stockholders, excluding charges, was $24.8 million, or $0.38 per diluted
share.
Revenue was $625.6 million for the third quarter 2010, compared to
$643.8 million for the second quarter 2010 and $679.7 million for the
third quarter 2009. EBITDA, as adjusted (as defined below), was $109.7
million for the third quarter 2010, compared to $117.8 million for the
second quarter 2010 and $161.1 million for the third quarter 2009.
Ernie L. Danner, Exterran Holdings' President and Chief Executive
Officer, said, "Third quarter highlights include increased operating
horsepower levels in our North America contract operations business and
improved operating results in our fabrication segment. As expected,
operating results of our international contract operations business
declined sequentially primarily due to the previously announced early
termination of a project in Brazil in the second quarter 2010.
New business development activity was mixed during the quarter, as an
improved level of compression and production and processing fabrication
bookings in North America contrasted with a muted overall level of
contract awards in international markets. With a leading market position
in our compression and production and processing business lines, we
believe that we are well-positioned to capture growth opportunities
particularly related to North America shale plays and international
energy infrastructure development in 2011 and beyond.
Our capital position was enhanced during the quarter as Exterran
Holdings sold 5.3 million common units representing limited partner
interests in Exterran Partners in September 2010 for net proceeds to
Exterran Holdings of approximately $109 million. We expect net capital
expenditures in 2010 of $200 million to $220 million, as compared to
previous guidance of $225 million to $250 million."
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $62.7 million for the third
quarter 2010, compared to $53.8 million for the second quarter 2010 and
$41.3 million for the third quarter 2009. Net income was $0.1 million
for the third quarter 2010, or a loss of $0.01 per diluted limited
partner unit, compared to a net loss of $1.3 million, or $0.07 per
diluted limited partner unit, for the second quarter 2010, and net
income of $2.0 million, or $0.09 per diluted limited partner unit, for
the third quarter 2009.
Exterran Partners' EBITDA, as further adjusted (as defined below),
totaled $28.0 million for the third quarter 2010, compared to $22.9
million for the second quarter 2010 and $18.4 million for the third
quarter 2009. Distributable cash flow (as defined below) totaled $19.3
million for the third quarter 2010, compared to $12.8 million for the
second quarter 2010 and $10.6 million for the third quarter 2009.
"Our distributable cash flow and credit profile were enhanced by the
acquisition of assets representing approximately 255,000 horsepower of
compression capacity from Exterran Holdings in August 2010. Further,
Exterran Partners increased operating horsepower during the quarter as a
result of improved customer activity," commented Mr. Danner, Chairman,
President and Chief Executive Officer of Exterran Partners' managing
general partner. "We are pleased with Exterran Holdings' sale of
Exterran Partners common units in September 2010, which has led to
increased daily trading volumes and enhanced overall liquidity of the
market for Exterran Partners units. Looking ahead, we remain committed
to growing the partnership through acquisitions and organic growth, and
increasing distributions to unitholders over time."
On October 29, 2010, Exterran Partners announced a third quarter 2010
cash distribution of $0.4675 per limited partner unit, or $1.87 per
limited partner unit on an annualized basis. This distribution will be
paid on November 12, 2010 to unitholders of record as of the close of
business on November 9, 2010.
The distribution to be paid in November 2010 is $0.005 higher than the
second quarter 2010 and third quarter 2009 distributions of $0.4625 per
limited partner unit.
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 2010 earnings release:
- Teleconference: Thursday, November 4, 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 888-895-5479.
International participants should dial 847-619-6250 at least 10
minutes before the scheduled start time. Please reference Exterran
conference call number 28272946.
- 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 4,
2010, until 2:00 p.m. Eastern Time on Thursday, November 11, 2010. To
listen to the replay, please dial 888-843-7419 in the United States
and Canada, or 630-652-3042 internationally, and enter access code
28272946.
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") costs 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 (loss) plus depreciation and
amortization expense, impairment charges, non-cash SG&A costs, 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
has over 10,000 employees and operates in approximately 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; the Companies' financial and
operational outlook and ability to fulfill that outlook; Exterran
Partners' commitment to growing the partnership and increasing
distributions; and the expected benefits of the August 2010 and
September 2010 transactions to Exterran Partners.
While the Companies believe that the assumptions concerning future
events are reasonable, they caution that there are inherent difficulties
in predicting certain important factors that could impact the 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.
(Tables Follow)
EXTERRAN HOLDINGS, INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30, 2010
|
|
June 30, 2010
|
|
September 30, 2009
|
Revenues:
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
152,007
|
|
|
$
|
152,048
|
|
|
$
|
167,567
|
|
International contract operations
|
|
|
111,879
|
|
|
|
131,087
|
|
|
|
96,420
|
|
Aftermarket services
|
|
|
82,348
|
|
|
|
83,363
|
|
|
|
75,526
|
|
Fabrication
|
|
|
279,389
|
|
|
|
277,324
|
|
|
|
340,193
|
|
|
|
|
625,623
|
|
|
|
643,822
|
|
|
|
679,706
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization expense):
|
|
|
|
|
|
|
North America contract operations
|
|
|
78,281
|
|
|
|
74,811
|
|
|
|
74,556
|
|
International contract operations
|
|
|
46,936
|
|
|
|
42,873
|
|
|
|
37,850
|
|
Aftermarket services
|
|
|
73,717
|
|
|
|
70,290
|
|
|
|
59,360
|
|
Fabrication
|
|
|
231,716
|
|
|
|
246,398
|
|
|
|
278,036
|
|
Selling, general and administrative
|
|
|
88,229
|
|
|
|
94,166
|
|
|
|
81,600
|
|
Depreciation and amortization
|
|
|
98,503
|
|
|
|
106,188
|
|
|
|
87,781
|
|
Long-lived asset impairment
|
|
|
2,246
|
|
|
|
745
|
|
|
|
-
|
|
Restructuring charges
|
|
|
-
|
|
|
|
-
|
|
|
|
2,616
|
|
Interest expense
|
|
|
33,050
|
|
|
|
32,608
|
|
|
|
33,371
|
|
Equity in loss of non-consolidated affiliates
|
|
|
-
|
|
|
|
348
|
|
|
|
1,011
|
|
Other (income) expense, net
|
|
|
(2,941
|
)
|
|
|
(2,485
|
)
|
|
|
(12,768
|
)
|
|
|
|
649,737
|
|
|
|
665,942
|
|
|
|
643,413
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(24,114
|
)
|
|
|
(22,120
|
)
|
|
|
36,293
|
|
Provision for (benefit from) income taxes
|
|
|
(7,083
|
)
|
|
|
184
|
|
|
|
13,691
|
|
Income (loss) from continuing operations
|
|
|
(17,031
|
)
|
|
|
(22,304
|
)
|
|
|
22,602
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(1,325
|
)
|
|
|
38,957
|
|
|
|
(3,834
|
)
|
Net income (loss)
|
|
|
(18,356
|
)
|
|
|
16,653
|
|
|
|
18,768
|
|
Less: net (income) loss attributable to the noncontrolling interest
|
|
|
371
|
|
|
|
873
|
|
|
|
(576
|
)
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(17,985
|
)
|
|
$
|
17,526
|
|
|
$
|
18,192
|
|
|
|
|
|
|
|
|
Basic income (loss) per common share:
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
(0.27
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
0.36
|
|
Income (loss) from discontinued operations attributable to Exterran
stockholders
|
|
|
(0.02
|
)
|
|
|
0.63
|
|
|
|
(0.06
|
)
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(0.29
|
)
|
|
$
|
0.28
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
Diluted income (loss) per common share:
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to Exterran
stockholders
|
|
$
|
(0.27
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
0.35
|
|
Income (loss) from discontinued operations attributable to Exterran
stockholders
|
|
|
(0.02
|
)
|
|
|
0.63
|
|
|
|
(0.05
|
)
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(0.29
|
)
|
|
$
|
0.28
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
Weighted average common and equivalent shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
62,111
|
|
|
|
62,044
|
|
|
|
61,579
|
|
Diluted
|
|
|
62,111
|
|
|
|
62,044
|
|
|
|
77,509
|
|
|
|
|
|
|
|
|
Income (loss) attributable to Exterran stockholders:
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
(16,660
|
)
|
|
$
|
(21,431
|
)
|
|
$
|
22,026
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
(1,325
|
)
|
|
|
38,957
|
|
|
|
(3,834
|
)
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(17,985
|
)
|
|
$
|
17,526
|
|
|
$
|
18,192
|
|
EXTERRAN HOLDINGS, INC. |
UNAUDITED SUPPLEMENTAL INFORMATION |
(In thousands, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
|
2010
|
|
2010
|
|
2009
|
Revenues:
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
152,007
|
|
|
$
|
152,048
|
|
|
$
|
167,567
|
|
International contract operations
|
|
|
111,879
|
|
|
|
131,087
|
|
|
|
96,420
|
|
Aftermarket services
|
|
|
82,348
|
|
|
|
83,363
|
|
|
|
75,526
|
|
Fabrication
|
|
|
279,389
|
|
|
|
277,324
|
|
|
|
340,193
|
|
Total
|
|
$
|
625,623
|
|
|
$
|
643,822
|
|
|
$
|
679,706
|
|
|
|
|
|
|
|
|
Gross Margin (1):
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
73,726
|
|
|
$
|
77,237
|
|
|
$
|
93,011
|
|
International contract operations
|
|
|
64,943
|
|
|
|
88,214
|
|
|
|
58,570
|
|
Aftermarket services
|
|
|
8,631
|
|
|
|
13,073
|
|
|
|
16,166
|
|
Fabrication
|
|
|
47,673
|
|
|
|
30,926
|
|
|
|
62,157
|
|
Total
|
|
$
|
194,973
|
|
|
$
|
209,450
|
|
|
$
|
229,904
|
|
|
|
|
|
|
|
|
Selling, General and Administrative
|
|
$
|
88,229
|
|
|
$
|
94,166
|
|
|
$
|
81,600
|
|
% of Revenues
|
|
|
14
|
%
|
|
|
15
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
EBITDA, as adjusted (1)
|
|
$
|
109,685
|
|
|
$
|
117,769
|
|
|
$
|
161,072
|
|
% of Revenues
|
|
|
18
|
%
|
|
|
18
|
%
|
|
|
24
|
%
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
59,063
|
|
|
$
|
61,538
|
|
|
$
|
74,983
|
|
Less: Proceeds from Sale of PP&E
|
|
|
(7,096
|
)
|
|
|
(13,018
|
)
|
|
|
(4,060
|
)
|
Net Capital Expenditures
|
|
$
|
51,967
|
|
|
$
|
48,520
|
|
|
$
|
70,923
|
|
|
|
|
|
|
|
|
Gross Margin Percentage:
|
|
|
|
|
|
|
North America contract operations
|
|
|
49
|
%
|
|
|
51
|
%
|
|
|
56
|
%
|
International contract operations
|
|
|
58
|
%
|
|
|
67
|
%
|
|
|
61
|
%
|
Aftermarket services
|
|
|
10
|
%
|
|
|
16
|
%
|
|
|
21
|
%
|
Fabrication
|
|
|
17
|
%
|
|
|
11
|
%
|
|
|
18
|
%
|
Total
|
|
|
31
|
%
|
|
|
33
|
%
|
|
|
34
|
%
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end):
|
|
|
|
|
|
|
North America contract operations
|
|
|
4,272
|
|
|
|
4,306
|
|
|
|
4,339
|
|
International contract operations
|
|
|
1,281
|
|
|
|
1,263
|
|
|
|
1,220
|
|
Total
|
|
|
5,553
|
|
|
|
5,569
|
|
|
|
5,559
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end):
|
|
|
|
|
|
|
North America contract operations
|
|
|
2,827
|
|
|
|
2,816
|
|
|
|
2,983
|
|
International contract operations
|
|
|
1,020
|
|
|
|
1,060
|
|
|
|
1,015
|
|
Total
|
|
|
3,847
|
|
|
|
3,876
|
|
|
|
3,998
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (average):
|
|
|
|
|
|
|
North America contract operations
|
|
|
2,822
|
|
|
|
2,819
|
|
|
|
3,052
|
|
International contract operations
|
|
|
1,032
|
|
|
|
1,041
|
|
|
|
1,025
|
|
Total
|
|
|
3,854
|
|
|
|
3,860
|
|
|
|
4,077
|
|
|
|
|
|
|
|
|
Horsepower Utilization (at period end):
|
|
|
|
|
|
|
North America contract operations
|
|
|
66
|
%
|
|
|
65
|
%
|
|
|
69
|
%
|
International contract operations
|
|
|
80
|
%
|
|
|
84
|
%
|
|
|
83
|
%
|
Total
|
|
|
69
|
%
|
|
|
70
|
%
|
|
|
72
|
%
|
|
|
|
|
|
|
|
Fabrication Backlog:
|
|
|
|
|
|
|
Compression & accessory
|
|
$
|
229,483
|
|
|
$
|
222,303
|
|
|
$
|
211,012
|
|
Production & processing equipment
|
|
|
461,433
|
|
|
|
527,363
|
|
|
|
570,751
|
|
Total
|
|
$
|
690,916
|
|
|
$
|
749,666
|
|
|
$
|
781,763
|
|
|
|
|
|
|
|
|
Debt to Capitalization:
|
|
|
|
|
|
|
Debt
|
|
$
|
1,971,309
|
|
|
$
|
2,081,333
|
|
|
$
|
2,385,748
|
|
Exterran stockholders' equity
|
|
|
1,713,583
|
|
|
|
1,665,379
|
|
|
|
1,606,444
|
|
Capitalization
|
|
$
|
3,684,892
|
|
|
$
|
3,746,712
|
|
|
$
|
3,992,192
|
|
Total Debt to Capitalization
|
|
|
53.5
|
%
|
|
|
55.6
|
%
|
|
|
59.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
2010
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
(17,031
|
)
|
|
$
|
(22,304
|
)
|
|
$
|
22,602
|
|
Depreciation and amortization
|
|
|
98,503
|
|
|
|
106,188
|
|
|
|
87,781
|
|
Long-lived asset impairment
|
|
|
2,246
|
|
|
|
745
|
|
|
|
-
|
|
Restructuring charges
|
|
|
-
|
|
|
|
-
|
|
|
|
2,616
|
|
Investment in non-consolidated affiliates impairment
|
|
|
-
|
|
|
|
348
|
|
|
|
1,011
|
|
Interest expense
|
|
|
33,050
|
|
|
|
32,608
|
|
|
|
33,371
|
|
Provision for (benefit from) income taxes
|
|
|
(7,083
|
)
|
|
|
184
|
|
|
|
13,691
|
|
EBITDA, as adjusted (1)
|
|
|
109,685
|
|
|
|
117,769
|
|
|
|
161,072
|
|
Selling, general and administrative
|
|
|
88,229
|
|
|
|
94,166
|
|
|
|
81,600
|
|
Equity in loss of non-consolidated affiliates
|
|
|
-
|
|
|
|
348
|
|
|
|
1,011
|
|
Investment in non-consolidated affiliates impairment
|
|
|
-
|
|
|
|
(348
|
)
|
|
|
(1,011
|
)
|
Other (income) expense, net
|
|
|
(2,941
|
)
|
|
|
(2,485
|
)
|
|
|
(12,768
|
)
|
Gross Margin (1)
|
|
$
|
194,973
|
|
|
$
|
209,450
|
|
|
$
|
229,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Exterran stockholders
|
|
$
|
(17,985
|
)
|
|
$
|
17,526
|
|
|
$
|
18,192
|
|
(Income) loss from discontinued operations
|
|
|
1,325
|
|
|
|
(38,957
|
)
|
|
|
3,834
|
|
Charges, after-tax:
|
|
|
|
|
|
|
Long-lived asset impairment
|
|
|
1,415
|
|
|
|
469
|
|
|
|
-
|
|
Restructuring charges
|
|
|
-
|
|
|
|
-
|
|
|
|
1,731
|
|
Investment in non-consolidated affiliates impairment
|
|
|
-
|
|
|
|
348
|
|
|
|
1,011
|
|
Net income (loss) from continuing operations attributable to
Exterran stockholders, excluding charges
|
|
$
|
(15,245
|
)
|
|
$
|
(20,614
|
)
|
|
$
|
24,768
|
|
|
|
|
|
|
|
|
Diluted Income (loss) from continuing operations attributable to
Exterran stockholders per common share
|
|
$
|
(0.27
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
0.35
|
|
Adjustment for charges, after-tax, per common share
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.03
|
|
Diluted net income (loss) from continuing operations attributable
to Exterran stockholders per common share, excluding charges (1)
|
|
$
|
(0.25
|
)
|
|
$
|
(0.33
|
)
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes disclosure of EBITDA, as adjusted, diluted
net income (loss) from continuing operations 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 net income (loss)
from continuing operations attributable to Exterran stockholders
per common share, 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,
|
|
2010
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
62,721
|
|
|
$
|
53,790
|
|
|
$
|
41,317
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization)
|
|
33,819
|
|
|
|
29,126
|
|
|
|
19,802
|
Depreciation and amortization
|
|
13,697
|
|
|
|
11,763
|
|
|
|
9,042
|
Long-lived asset impairment
|
|
93
|
|
|
|
-
|
|
|
|
-
|
Selling, general and administrative
|
|
8,504
|
|
|
|
8,519
|
|
|
|
4,961
|
Interest expense
|
|
6,020
|
|
|
|
5,724
|
|
|
|
5,039
|
Other (income) expense, net
|
|
333
|
|
|
|
(170
|
)
|
|
|
324
|
Total costs and expenses
|
|
62,466
|
|
|
|
54,962
|
|
|
|
39,168
|
Income (loss) before income taxes
|
|
255
|
|
|
|
(1,172
|
)
|
|
|
2,149
|
Income tax expense
|
|
172
|
|
|
|
173
|
|
|
|
141
|
Net income (loss)
|
$
|
83
|
|
|
$
|
(1,345
|
)
|
|
$
|
2,008
|
|
|
|
|
|
|
General partner interest in net income (loss)
|
$
|
420
|
|
|
$
|
285
|
|
|
$
|
289
|
|
|
|
|
|
|
Limited partner interest in net income (loss)
|
$
|
(337
|
)
|
|
$
|
(1,630
|
)
|
|
$
|
1,719
|
|
|
|
|
|
|
Weighted average limited partners' units outstanding:
|
|
|
|
|
|
Basic
|
|
28,434
|
|
|
|
23,885
|
|
|
|
19,125
|
|
|
|
|
|
|
Diluted
|
|
28,434
|
|
|
|
23,885
|
|
|
|
19,148
|
|
|
|
|
|
|
Earnings (loss) per limited partner unit:
|
|
|
|
|
|
Basic
|
$
|
(0.01
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
0.09
|
|
|
|
|
|
|
Diluted
|
$
|
(0.01
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
0.09
|
EXTERRAN PARTNERS, L.P. |
UNAUDITED SUPPLEMENTAL INFORMATION |
(In thousands, except per unit amounts and percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
2010
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
62,721
|
|
|
$
|
53,790
|
|
|
$
|
41,317
|
|
|
|
|
|
|
|
|
|
|
Gross Margin, as adjusted (1)
|
$
|
35,980
|
|
|
$
|
30,379
|
|
|
$
|
23,500
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as further adjusted (1)
|
$
|
28,047
|
|
|
$
|
22,949
|
|
|
$
|
18,405
|
|
% of Revenue
|
|
45
|
%
|
|
|
43
|
%
|
|
|
45
|
%
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
$
|
4,037
|
|
|
$
|
14,971
|
|
|
$
|
3,341
|
|
Less: Proceeds from Sale of Compression Equipment
|
|
(30
|
)
|
|
|
(263
|
)
|
|
|
-
|
|
Net Capital Expenditures
|
$
|
4,007
|
|
|
$
|
14,708
|
|
|
$
|
3,341
|
|
|
|
|
|
|
|
|
|
|
Gross Margin percentage, as adjusted
|
|
57
|
%
|
|
|
56
|
%
|
|
|
57
|
%
|
|
|
|
|
|
|
|
|
|
Distributable cash flow (2)
|
$
|
19,272
|
|
|
$
|
12,790
|
|
|
$
|
10,633
|
|
|
|
|
|
|
|
|
|
|
Distributions per Limited Partner Unit
|
$
|
0.4675
|
|
|
$
|
0.4625
|
|
|
$
|
0.4625
|
|
Distribution to All Unitholders, including Incentive Distributions
|
$
|
15,732
|
|
|
$
|
11,589
|
|
|
$
|
9,277
|
|
Distributable Cash Flow Coverage
|
1.23x
|
|
|
1.10x
|
|
|
1.15x
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
2010
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
Debt
|
$
|
435,500
|
|
|
$
|
430,500
|
|
|
$
|
384,500
|
|
Total Partners' Capital
|
$
|
375,941
|
|
|
$
|
247,404
|
|
|
$
|
173,809
|
|
Total Debt to Capitalization
|
|
54
|
%
|
|
|
64
|
%
|
|
|
69
|
%
|
EBITDA, as further adjusted (1) to Interest Expense
|
4.7x
|
|
|
4.0x
|
|
|
3.7x
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
2010
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
83
|
|
|
$
|
(1,345
|
)
|
|
$
|
2,008
|
|
Income tax expense
|
|
172
|
|
|
|
173
|
|
|
|
141
|
|
Depreciation and amortization
|
|
13,697
|
|
|
|
11,763
|
|
|
|
9,042
|
|
Long-lived asset impairment
|
|
93
|
|
|
|
-
|
|
|
|
-
|
|
Cap on operating and selling, general and administrative
|
|
|
|
|
|
costs provided by Exterran Holdings ("EXH")
|
|
7,770
|
|
|
|
6,376
|
|
|
|
1,985
|
|
Non-cash selling, general and administrative costs
|
|
212
|
|
|
|
258
|
|
|
|
190
|
|
Interest expense, net of interest income
|
|
6,020
|
|
|
|
5,724
|
|
|
|
5,039
|
|
EBITDA, as further adjusted (1)
|
|
28,047
|
|
|
|
22,949
|
|
|
|
18,405
|
|
Cash selling, general and administrative costs
|
|
8,292
|
|
|
|
8,261
|
|
|
|
4,771
|
|
Less: cap on selling, general and administrative costs provided by
EXH
|
|
(692
|
)
|
|
|
(661
|
)
|
|
|
-
|
|
Less: other (income) expense, net
|
|
333
|
|
|
|
(170
|
)
|
|
|
324
|
|
Gross Margin, as adjusted (1)
|
$
|
35,980
|
|
|
$
|
30,379
|
|
|
$
|
23,500
|
|
Other income (expense), net
|
|
(333
|
)
|
|
|
170
|
|
|
|
(324
|
)
|
Expensed acquisition costs (in Other (income) expense, net)
|
|
356
|
|
|
|
-
|
|
|
|
324
|
|
Less: Gain on sale of compression equipment (in Other (income)
expense, net)
|
|
(8
|
)
|
|
|
(170
|
)
|
|
|
-
|
|
Less: Cash interest expense
|
|
(5,747
|
)
|
|
|
(5,451
|
)
|
|
|
(4,915
|
)
|
Less: Cash selling, general and administrative, as adjusted for
cost caps provided by EXH
|
|
(7,600
|
)
|
|
|
(7,600
|
)
|
|
|
(4,771
|
)
|
Less: Income tax expense
|
|
(172
|
)
|
|
|
(173
|
)
|
|
|
(141
|
)
|
Less: Maintenance capital expenditures
|
|
(3,204
|
)
|
|
|
(4,365
|
)
|
|
|
(3,040
|
)
|
Distributable cash flow (2)
|
$
|
19,272
|
|
|
$
|
12,790
|
|
|
$
|
10,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
$
|
11,075
|
|
|
$
|
10,249
|
|
|
$
|
16,182
|
|
(Provision for) benefit from doubtful accounts
|
|
(560
|
)
|
|
|
(32
|
)
|
|
|
150
|
|
Cap on operating and selling, general and administrative costs
provided by EXH
|
|
7,770
|
|
|
|
6,376
|
|
|
|
1,985
|
|
Expensed acquisition costs (in Other (income) expense, net)
|
|
356
|
|
|
|
-
|
|
|
|
324
|
|
Maintenance capital expenditures
|
|
(3,204
|
)
|
|
|
(4,365
|
)
|
|
|
(3,040
|
)
|
Change in current assets/liabilities
|
|
3,835
|
|
|
|
562
|
|
|
|
(4,968
|
)
|
Distributable cash flow (2)
|
$
|
19,272
|
|
|
$
|
12,790
|
|
|
$
|
10,633
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
83
|
|
|
$
|
(1,345
|
)
|
|
$
|
2,008
|
|
Charge, after-tax:
|
|
|
|
|
|
Long-lived asset impairment
|
|
93
|
|
|
|
-
|
|
|
|
-
|
|
Net income (loss), excluding charge
|
$
|
176
|
|
|
$
|
(1,345
|
)
|
|
$
|
2,008
|
|
|
|
|
|
|
|
Diluted earnings (loss) per limited partner unit
|
$
|
(0.01
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
0.09
|
|
Adjustment for charge per limited partner unit
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Diluted earnings (loss) per limited partner unit, excluding charge
(1)
|
$
|
(0.01
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management believes disclosure of EBITDA, as further adjusted,
diluted earnings (loss) 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 (loss) 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
September 30, 2010
|
|
June 30, 2010
|
|
September 30, 2009
|
|
|
|
|
|
|
Total Available Horsepower (at period end)
|
1,655
|
|
1,366
|
|
1,039
|
|
|
|
|
|
|
Total Operating Horsepower (at period end)
|
1,362
|
|
1,092
|
|
808
|
|
|
|
|
|
|
Average Operating Horsepower
|
1,208
|
|
1,076
|
|
819
|
|
|
|
|
|
|
Horsepower Utilization:
|
|
|
|
|
|
Spot (at period end)
|
82%
|
|
80%
|
|
78%
|
Average
|
81%
|
|
80%
|
|
79%
|
|
|
|
|
|
|
Combined U.S. Contract Operations Horsepower of Exterran Holdings
and Exterran Partners covered by contracts converted to service
agreements (at period end)
|
1,894
|
|
1,869
|
|
1,822
|
|
|
|
|
|
|
Available Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
Total Available U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
4,167
|
|
4,198
|
|
4,233
|
|
|
|
|
|
|
% 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%
|
|
43%
|
|
|
|
|
|
|
Operating Horsepower:
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating U.S. Contract Operations Horsepower of Exterran
Holdings and Exterran Partners (at period end)
|
2,773
|
|
2,761
|
|
2,927
|
|
|
|
|
|
|
% of U.S. Contract Operations Operating Horsepower of Exterran
Holdings and Exterran Partners covered by contracts converted to
service agreements (at period end)
|
68%
|
|
68%
|
|
62%
|
SOURCE: Exterran Holdings, Inc. and Exterran Partners, L.P.
Exterran
Investors:
David Oatman, 281-836-7035
or
Media:
Susan Nelson, 281-836-7297