-
Achieved EBITDA, as adjusted, of $155.9 million for the quarter,
up 23 percent over year-ago levels
-
Reported net income from continuing operations attributable to
Exterran stockholders of $0.34 per diluted share, excluding charges,
for the quarter
HOUSTON--(BUSINESS WIRE)--Nov. 5, 2013--
Exterran Holdings, Inc. (NYSE: EXH) today reported EBITDA, as adjusted
(as defined below), of $155.9 million for the third quarter 2013.
EBITDA, as adjusted, was $176.8 million for the second quarter 2013,
which included an $18.2 million benefit from purchase option exercises
in our North America and International contract operations businesses,
and $126.4 million for the third quarter 2012.
Revenue was $776.0 million for the third quarter 2013, compared to
$837.3 million for the second quarter 2013 and $718.7 million for the
third quarter 2012.
Fabrication backlog was $619.4 million at September 30, 2013, compared
to $746.5 million at June 30, 2013 and $1,239.5 million at September 30,
2012. Fabrication bookings were $276.2 million for the third quarter
2013, compared to $209.0 million for the second quarter 2013 and $313.9
million for the third quarter 2012.
“We achieved a solid overall operating performance in the third quarter
2013, including the second highest quarterly level of EBITDA, as
adjusted, in four years, although we also experienced sequential
declines in fabrication backlog and North America operating horsepower
levels,” said Brad Childers, Exterran Holdings’ President and Chief
Executive Officer. “With our increased fabrication bookings on a
sequential basis and industry growth trends, we are optimistic about the
prospects for continuing to improve our bookings levels in the fourth
quarter 2013. With regard to our horsepower trends, we expect flat to
slightly higher operating horsepower levels in our North America
contract operations business in the fourth quarter 2013 based on
customer demand in shale and liquids rich plays, which we believe will
offset the customer stop activity that continues in conventional fields
given relatively low natural gas prices.”
“Debt balances at the Exterran parent level (excluding Exterran
Partners) declined by $84 million from June 30, 2013 to September 30,
2013. Exterran Holdings’ debt to adjusted EBITDA level under our credit
agreement declined to 1.8x at September 30, 2013 from 3.0x at September
30, 2012. Our improved capital position provides increased financial
flexibility to pursue our growth strategies,” said Bill Austin, Exterran
Holdings’ Executive Vice President and Chief Financial Officer.
Net income from continuing operations attributable to Exterran
stockholders, excluding charges, for the third quarter 2013 was $22.8
million, or $0.34 per diluted share, excluding non-cash pretax
long-lived asset impairment charges of $6.9 million related to our North
America contract operations business. Net income from continuing
operations attributable to Exterran stockholders, excluding charges, for
the second quarter 2013 was $20.7 million, or $0.31 per diluted share,
and net income from continuing operations attributable to Exterran
stockholders, excluding charges, for the third quarter 2012 was $1.4
million, or $0.02 per diluted share. Net income (loss) from continuing
operations attributable to Exterran stockholders, excluding charges,
also excludes the benefit of proceeds from the two previously announced
sales of Exterran Holdings’ Venezuelan assets.
Net income attributable to Exterran stockholders for the third quarter
2013 was $41.0 million, or $0.62 per diluted share, compared to net
income attributable to Exterran stockholders for the second quarter 2013
of $9.3 million, or $0.14 per diluted share, and net income attributable
to Exterran stockholders for the third quarter 2012 of $113.4 million,
or $1.74 per diluted share.
The cash distribution to be received by Exterran Holdings based upon its
limited partner and general partner interests in Exterran Partners, L.P.
is $12.6 million for the third quarter 2013, compared to $12.4 million
for the second quarter 2013 and $7.9 million for the third quarter 2012.
The distribution level for the third quarter 2013 results in a payment
to the general partner, which is indirectly owned by Exterran Holdings,
at the highest-tier incentive distribution level.
Conference Call Details
Exterran Holdings and Exterran Partners, L.P. will host a joint
conference call on Tuesday, Nov. 5, 2013, to discuss their third-quarter
2013 financial results. The call will begin at 11:00 a.m. Eastern Time.
To listen to the call via a live webcast, please visit Exterran’s
website at www.exterran.com.
The call will also be available by dialing 800-446-2782 in the United
States and Canada, or +1-847-413-3235 for international calls. Please
call approximately 15 minutes prior to the scheduled start time and
reference Exterran conference call number 35883513.
A replay of the conference call will be available on Exterran’s website
for approximately seven days. Also, a replay may be accessed by dialing
888-843-7419 in the United States and Canada, or +1-630-652-3042 for
international calls. The access code is 35883513#.
EBITDA, as adjusted, a non-GAAP measure, is defined as net income (loss)
excluding income (loss) from discontinued operations (net of tax),
cumulative effect of accounting changes (net of tax), 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, non-cash gains or losses from foreign currency
exchange rate changes recorded on intercompany obligations and other
charges. EBITDA, as adjusted, excludes the benefit of the two previously
announced sales of Exterran Holdings’ Venezuelan assets.
Gross Margin, a non-GAAP measure, is defined as total revenue less cost
of sales (excluding depreciation and amortization expense). Gross margin
percentage is defined as gross margin divided by revenue.
About Exterran Holdings
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 approximately 10,000 employees and operates in approximately 30
countries. Exterran Holdings owns an equity interest, including all of
the general partner interest, in Exterran Partners, L.P. (NASDAQ: EXLP),
the leading provider of natural gas contract operations services to
customers throughout the United States. 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 Exterran Holdings’ control, which could cause actual results to
differ materially from such statements. Forward-looking information
includes, but is not limited to: Exterran Holdings’ financial and
operational strategies and ability to successfully effect those
strategies; Exterran Holdings’ expectations regarding future economic
and market conditions; Exterran Holdings’ financial and operational
outlook and ability to fulfill that outlook; and demand for Exterran
Holdings’ products and services and growth opportunities for those
products and services.
While Exterran Holdings believes that the assumptions concerning future
events are reasonable, it cautions that there are inherent difficulties
in predicting certain important factors that could impact the future
performance or results of its 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
Exterran Holdings and its 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
or natural gas or a sustained decrease in the price of oil or natural
gas; Exterran Holdings’ ability to timely and cost-effectively execute
larger projects; changes in political or economic conditions in key
operating markets, including international markets; any non-performance
by third parties of their contractual obligations; changes in safety,
health, environmental and other regulations; and the performance of
Exterran Partners.
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, 2012, and those set forth from time to time in Exterran
Holdings’ filings with the Securities and Exchange Commission, which are
available at www.exterran.com.
Except as required by law, Exterran Holdings expressly disclaims 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,
2013
|
|
June 30,
2013
|
|
September 30,
2012
|
|
Revenues:
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
153,046
|
|
|
$
|
163,645
|
|
|
$
|
151,532
|
|
|
International contract operations
|
|
|
117,545
|
|
|
|
117,872
|
|
|
|
110,632
|
|
|
Aftermarket services
|
|
|
102,157
|
|
|
|
99,368
|
|
|
|
95,854
|
|
|
Fabrication
|
|
|
403,255
|
|
|
|
456,459
|
|
|
|
360,686
|
|
|
|
|
|
776,003
|
|
|
|
837,344
|
|
|
|
718,704
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses:
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization expense):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
71,446
|
|
|
|
71,161
|
|
|
|
75,217
|
|
|
International contract operations
|
|
|
50,598
|
|
|
|
50,015
|
|
|
|
46,260
|
|
|
Aftermarket services
|
|
|
80,788
|
|
|
|
77,936
|
|
|
|
75,793
|
|
|
Fabrication
|
|
|
328,390
|
|
|
|
381,573
|
|
|
|
310,754
|
|
|
Selling, general and administrative
|
|
|
93,723
|
|
|
|
91,117
|
|
|
|
85,536
|
|
|
Depreciation and amortization
|
|
|
81,305
|
|
|
|
80,751
|
|
|
|
85,248
|
|
|
Long-lived asset impairment
|
|
|
6,925
|
|
|
|
16,574
|
|
|
|
3,204
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
-
|
|
|
|
1,515
|
|
|
Interest expense
|
|
|
28,882
|
|
|
|
30,250
|
|
|
|
31,723
|
|
|
Equity in income of non-consolidated affiliates
|
|
|
(4,778
|
)
|
|
|
(4,722
|
)
|
|
|
(4,793
|
)
|
|
Other (income) expense, net
|
|
|
(4,447
|
)
|
|
|
(7,239
|
)
|
|
|
(1,450
|
)
|
|
|
|
|
732,832
|
|
|
|
787,416
|
|
|
|
709,007
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
43,171
|
|
|
|
49,928
|
|
|
|
9,697
|
|
|
Provision for income taxes
|
|
|
15,421
|
|
|
|
23,849
|
|
|
|
1,267
|
|
|
Income from continuing operations
|
|
|
27,750
|
|
|
|
26,079
|
|
|
|
8,430
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
17,511
|
|
|
|
(1,575
|
)
|
|
|
110,916
|
|
|
Net income
|
|
|
45,261
|
|
|
|
24,504
|
|
|
|
119,346
|
|
|
Less: net income attributable to the noncontrolling interest
|
|
|
(4,284
|
)
|
|
|
(15,169
|
)
|
|
|
(5,980
|
)
|
|
Net income attributable to Exterran stockholders
|
|
$
|
40,977
|
|
|
$
|
9,335
|
|
|
$
|
113,366
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per common share:
|
|
|
|
|
|
|
|
Income from continuing operations attributable to Exterran
stockholders
|
|
$
|
0.36
|
|
|
$
|
0.17
|
|
|
$
|
0.04
|
|
|
Income (loss) from discontinued operations attributable to Exterran
stockholders
|
|
|
0.26
|
|
|
|
(0.03
|
)
|
|
|
1.71
|
|
|
Net income attributable to Exterran stockholders
|
|
$
|
0.62
|
|
|
$
|
0.14
|
|
|
$
|
1.75
|
|
|
Diluted income (loss) per common share:
|
|
|
|
|
|
|
|
Income from continuing operations attributable to Exterran
stockholders
|
|
$
|
0.36
|
|
|
$
|
0.16
|
|
|
$
|
0.04
|
|
|
Income (loss) from discontinued operations attributable to Exterran
stockholders
|
|
|
0.26
|
|
|
|
(0.02
|
)
|
|
|
1.70
|
|
|
Net income attributable to Exterran stockholders
|
|
$
|
0.62
|
|
|
$
|
0.14
|
|
|
$
|
1.74
|
|
|
Weighted average common and equivalent shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
65,780
|
|
|
|
65,716
|
|
|
|
64,847
|
|
|
Diluted
|
|
|
66,347
|
|
|
|
66,248
|
|
|
|
65,094
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Exterran stockholders:
|
|
|
|
|
|
|
|
Income from continuing operations attributable to Exterran
stockholders
|
|
$
|
23,466
|
|
|
$
|
10,910
|
|
|
$
|
2,450
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
17,511
|
|
|
|
(1,575
|
)
|
|
|
110,916
|
|
|
Net income attributable to Exterran stockholders
|
|
$
|
40,977
|
|
|
$
|
9,335
|
|
|
$
|
113,366
|
|
|
|
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL
INFORMATION
(In thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
September 30,
2013
|
|
June 30,
2013
|
|
September 30,
2012
|
|
Revenues:
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
153,046
|
|
|
$
|
163,645
|
|
|
$
|
151,532
|
|
|
International contract operations
|
|
|
117,545
|
|
|
|
117,872
|
|
|
|
110,632
|
|
|
Aftermarket services
|
|
|
102,157
|
|
|
|
99,368
|
|
|
|
95,854
|
|
|
Fabrication
|
|
|
403,255
|
|
|
|
456,459
|
|
|
|
360,686
|
|
|
Total
|
|
$
|
776,003
|
|
|
$
|
837,344
|
|
|
$
|
718,704
|
|
|
|
|
|
|
|
|
|
|
Gross Margin (1):
|
|
|
|
|
|
|
|
North America contract operations
|
|
$
|
81,600
|
|
|
$
|
92,484
|
|
|
$
|
76,315
|
|
|
International contract operations
|
|
|
66,947
|
|
|
|
67,857
|
|
|
|
64,372
|
|
|
Aftermarket services
|
|
|
21,369
|
|
|
|
21,432
|
|
|
|
20,061
|
|
|
Fabrication
|
|
|
74,865
|
|
|
|
74,886
|
|
|
|
49,932
|
|
|
Total
|
|
$
|
244,781
|
|
|
$
|
256,659
|
|
|
$
|
210,680
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative
|
|
$
|
93,723
|
|
|
$
|
91,117
|
|
|
$
|
85,536
|
|
|
% of revenue
|
|
|
12
|
%
|
|
|
11
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
EBITDA, as Adjusted (1)
|
|
$
|
155,931
|
|
|
$
|
176,825
|
|
|
$
|
126,431
|
|
|
% of revenue
|
|
|
20
|
%
|
|
|
21
|
%
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
$
|
92,929
|
|
|
$
|
107,944
|
|
|
$
|
100,871
|
|
|
Less: Proceeds from sale of PP&E
|
|
|
(12,987
|
)
|
|
|
(56,166
|
)
|
|
|
(1,963
|
)
|
|
Net Capital expenditures
|
|
$
|
79,942
|
|
|
$
|
51,778
|
|
|
$
|
98,908
|
|
|
|
|
|
|
|
|
|
|
Gross Margin Percentage:
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
53
|
%
|
|
|
57
|
%
|
|
|
50
|
%
|
|
International contract operations
|
|
|
57
|
%
|
|
|
58
|
%
|
|
|
58
|
%
|
|
Aftermarket services
|
|
|
21
|
%
|
|
|
22
|
%
|
|
|
21
|
%
|
|
Fabrication
|
|
|
19
|
%
|
|
|
16
|
%
|
|
|
14
|
%
|
|
Total
|
|
|
32
|
%
|
|
|
31
|
%
|
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
Total Available Horsepower (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
3,423
|
|
|
|
3,401
|
|
|
|
3,341
|
|
|
International contract operations
|
|
|
1,257
|
|
|
|
1,268
|
|
|
|
1,254
|
|
|
Total
|
|
|
4,680
|
|
|
|
4,669
|
|
|
|
4,595
|
|
|
|
|
|
|
|
|
|
|
Total Operating Horsepower (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
2,840
|
|
|
|
2,867
|
|
|
|
2,849
|
|
|
International contract operations
|
|
|
977
|
|
|
|
998
|
|
|
|
1,001
|
|
|
Total
|
|
|
3,817
|
|
|
|
3,865
|
|
|
|
3,850
|
|
|
|
|
|
|
|
|
|
|
Average Operating Horsepower:
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
2,845
|
|
|
|
2,884
|
|
|
|
2,830
|
|
|
International contract operations
|
|
|
992
|
|
|
|
1,000
|
|
|
|
1,003
|
|
|
Total
|
|
|
3,837
|
|
|
|
3,884
|
|
|
|
3,833
|
|
|
|
|
|
|
|
|
|
|
Horsepower Utilization (at period end):
|
|
|
|
|
|
|
|
North America contract operations
|
|
|
83
|
%
|
|
|
84
|
%
|
|
|
85
|
%
|
|
International contract operations
|
|
|
78
|
%
|
|
|
79
|
%
|
|
|
80
|
%
|
|
Total
|
|
|
82
|
%
|
|
|
83
|
%
|
|
|
84
|
%
|
|
|
|
|
|
|
|
|
|
Fabrication Backlog:
|
|
September 30,
2013
|
|
June 30,
2013
|
|
September 30,
2012
|
|
Compression & accessory
|
|
$
|
177,302
|
|
|
$
|
193,546
|
|
|
$
|
231,027
|
|
|
Production & processing equipment
|
|
|
357,528
|
|
|
|
424,152
|
|
|
|
687,174
|
|
|
Installation
|
|
|
84,605
|
|
|
|
128,818
|
|
|
|
321,345
|
|
|
Total
|
|
$
|
619,435
|
|
|
$
|
746,516
|
|
|
$
|
1,239,546
|
|
|
|
|
|
|
|
|
|
|
Debt to Capitalization:
|
|
|
|
|
|
|
|
Debt
|
|
$
|
1,564,308
|
|
|
$
|
1,642,847
|
|
|
$
|
1,705,638
|
|
|
Exterran stockholders' equity
|
|
|
1,631,507
|
|
|
|
1,578,980
|
|
|
|
1,476,314
|
|
|
Capitalization
|
|
$
|
3,195,815
|
|
|
$
|
3,221,827
|
|
|
$
|
3,181,952
|
|
|
Total Debt to Capitalization
|
|
|
49
|
%
|
|
|
51
|
%
|
|
|
54
|
%
|
|
(1) Management believes EBITDA, as adjusted, and gross margin
provide useful information to investors because these non-GAAP
measures, when viewed with our GAAP results and accompanying
reconciliations, provide a more complete understanding of our
performance than GAAP results alone. Management uses these non-GAAP
measures as supplemental measures to review current period operating
performance, comparability measures and performance measures for
period to period comparisons. In addition, management uses EBITDA,
as adjusted, as a valuation measure.
|
|
|
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL
INFORMATION
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
September 30,
2013
|
|
June 30,
2013
|
|
September 30,
2012
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 45,261
|
|
$ 24,504
|
|
$ 119,346
|
|
(Income) loss from discontinued operations, net of tax
|
|
(17,511)
|
|
1,575
|
|
(110,916)
|
|
Income from continuing operations
|
|
27,750
|
|
26,079
|
|
8,430
|
|
Depreciation and amortization
|
|
81,305
|
|
80,751
|
|
85,248
|
|
Long-lived asset impairment
|
|
6,925
|
|
16,574
|
|
3,204
|
|
Restructuring charges
|
|
-
|
|
-
|
|
1,515
|
|
Proceeds from sale of joint venture assets
|
|
(4,778)
|
|
(4,722)
|
|
(4,793)
|
|
Interest expense
|
|
28,882
|
|
30,250
|
|
31,723
|
|
(Gain) loss on currency exchange rate remeasurement of intercompany
balances
|
|
426
|
|
4,044
|
|
(163)
|
|
Provision for income taxes
|
|
15,421
|
|
23,849
|
|
1,267
|
|
EBITDA, as adjusted (1)
|
|
155,931
|
|
176,825
|
|
126,431
|
|
Selling, general and administrative
|
|
93,723
|
|
91,117
|
|
85,536
|
|
Equity in income of non-consolidated affiliates
|
|
(4,778)
|
|
(4,722)
|
|
(4,793)
|
|
Proceeds from sale of joint venture assets
|
|
4,778
|
|
4,722
|
|
4,793
|
|
Gain (loss) on currency exchange rate remeasurement of intercompany
balances
|
|
(426)
|
|
(4,044)
|
|
163
|
|
Other (income) expense, net
|
|
(4,447)
|
|
(7,239)
|
|
(1,450)
|
|
Gross Margin (1)
|
|
$ 244,781
|
|
$ 256,659
|
|
$ 210,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Exterran stockholders
|
|
$ 40,977
|
|
$ 9,335
|
|
$ 113,366
|
|
(Income) loss from discontinued operations
|
|
(17,511)
|
|
1,575
|
|
(110,916)
|
|
Charges, after-tax:
|
|
|
|
|
|
|
|
Long-lived asset impairment (including the impact on noncontrolling
interest)
|
|
4,071
|
|
14,500
|
|
2,535
|
|
Restructuring charges
|
|
-
|
|
-
|
|
1,203
|
|
Proceeds from sale of joint venture assets
|
|
(4,778)
|
|
(4,722)
|
|
(4,793)
|
|
Net income from continuing operations attributable to Exterran
stockholders, excluding charges
|
|
$ 22,759
|
|
$ 20,688
|
|
$ 1,395
|
|
|
|
|
|
|
|
|
|
Diluted income from continuing operations attributable to Exterran
stockholders
|
|
$ 0.36
|
|
$ 0.16
|
|
$ 0.04
|
|
Adjustment for charges, after-tax, per common share
|
|
(0.02)
|
|
0.15
|
|
(0.02)
|
|
Diluted net income from continuing operations attributable to
Exterran stockholders per common share, excluding charges (1)
|
|
$ 0.34
|
|
$ 0.31
|
|
$ 0.02
|
|
(1) Management believes EBITDA, as adjusted, diluted net income
(loss) from continuing operations attributable to Exterran
stockholders per common share, excluding charges, and gross margin
provide useful information to investors because these non-GAAP
measures, when viewed with our GAAP results and accompanying
reconciliations, provide a more complete understanding of our
performance than GAAP results alone. Management uses these non-GAAP
measures as supplemental measures to review current period operating
performance, comparability measures and performance measures for
period to period comparisons. In addition, management uses EBITDA,
as adjusted, as a valuation measure.
|
Source: Exterran Holdings, Inc.
Exterran Holdings, Inc.
Susan Moore, 281-836-7398 (Media)
David
Oatman, 281-836-7035 (Investors)