- EBITDA, as adjusted, of $182 million
for the quarter
- Net income from continuing
operations attributable to Exterran common stockholders of $0.27
per diluted share, excluding items, for the quarter
Exterran Holdings, Inc. (NYSE:EXH) today reported EBITDA, as
adjusted (as defined below), of $182.0 million for the first
quarter 2015, compared to $182.3 million for the fourth quarter
2014 and $144.8 million for the first quarter 2014.
Revenue was $729.1 million for the first quarter 2015, compared
to $793.6 million for the fourth quarter 2014 and $643.0 million
for the first quarter 2014.
Fabrication backlog was $730.4 million at March 31, 2015,
compared to $953.2 million at December 31, 2014 and $669.1 million
at March 31, 2014. Fabrication bookings were $96.4 million for the
first quarter 2015, compared to $474.9 million for the fourth
quarter 2014 and $276.6 million for the first quarter 2014.
Exterran Holdings declared a dividend of $0.15 per share of
common stock, a rate of $0.60 per share on an annualized basis,
which will be paid on May 18, 2015 to stockholders of record at the
close of business on May 11, 2015.
“In the first quarter 2015, we achieved solid operating
performance across all our businesses. We benefitted from the
relative stability and cost improvement activities in our
production-related services businesses as well as solid execution
of the significant backlog with which we entered the year in our
fabrication business,” said Brad Childers, Exterran Holdings’
President and Chief Executive Officer. “As expected, fabrication
bookings declined in this period of reduced capital spending and
activity levels in the oil and gas industry. With this development
in our fabrication business, we have taken steps to reduce our
costs and are working aggressively to right size our businesses
until this environment improves.”
“We continue to make progress toward the planned separation of
our international services and global fabrication businesses into a
new publicly traded company, and we now expect the transaction to
close in the third quarter of this year. We expect this strategic
transaction will create two strong businesses, the U.S. services
business and the international services and global fabrication
business, that will be better positioned to capture more profit and
growth, as well as generate more value for our investors,” added
Childers.
Net income (loss) from continuing operations attributable to
Exterran stockholders, excluding items, for all periods excludes
the benefit of proceeds from the two previously announced sales of
Exterran Holdings’ previously-nationalized Venezuelan assets, the
benefit of which was $23.7 million for the first quarter 2015,
compared to $18.5 million for the fourth quarter 2014 and $22.7
million for the first quarter 2014. At March 31, 2015, Exterran was
still due approximately $121 million of principal payments from the
sales of these assets.
Net income from continuing operations attributable to Exterran
stockholders, excluding items, for the first quarter 2015 was $18.6
million, or $0.27 per diluted common share. In addition to
excluding the benefit related to our nationalized Venezuelan assets
discussed above, these amounts also exclude non-cash long-lived
asset impairment charges of $12.7 million primarily related to our
contract operations businesses and restructuring charges of $4.8
million related to costs associated with the planned spin-off that
primarily consisted of legal, consulting, audit and professional
fees. Net income from continuing operations attributable to
Exterran stockholders, excluding items, for the first quarter 2015
included charges of $7.5 million for currency losses related to the
functional currency remeasurement of our foreign subsidiaries’ U.S.
dollar denominated intercompany obligations. Net income from
continuing operations attributable to Exterran stockholders,
excluding items, was $21.4 million, or $0.31 per diluted common
share, for the fourth quarter 2014, and $13.9 million, or $0.20 per
diluted common share, for the first quarter 2014.
Net income attributable to Exterran stockholders was $32.1
million, or $0.46 per diluted common share, for the first quarter
2015, compared to $19.1 million, or $0.27 per diluted common share,
for the fourth quarter 2014, and $32.6 million, or $0.47 per
diluted common share, for the first quarter 2014.
The cash distribution to be received by Exterran Holdings based
upon its limited partner and general partner interests in Exterran
Partners, L.P. is $15.6 million for the first quarter 2015,
compared to $15.2 million for the fourth quarter 2014 and $13.7
million for the first quarter 2014.
Conference Call Details
Exterran Holdings and Exterran Partners, L.P. will host a joint
conference call on Tuesday, May 5, 2015, to discuss their
first-quarter 2015 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 39431196.
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
39431196#.
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,
restructuring charges, non-cash gains or losses from foreign
currency exchange rate changes recorded on intercompany
obligations, expensed acquisition costs and other items. 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), a master limited
partnership, the leading provider of natural gas contract
compression 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’ plan to conduct a separation of
certain of its businesses, the possibility that the proposed
transaction will be consummated, the timing of its consummation and
the expected benefits from the proposed transaction; Exterran
Holdings’ expectations regarding future economic and market
conditions; Exterran Holdings’ financial and operational outlook
and ability to fulfill that outlook; demand for Exterran Holdings’
products and services and growth opportunities for those products
and services; and statements regarding amounts due from the sales
of Exterran Holdings’ nationalized Venezuelan assets.
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; delays, costs and difficulties
that could impact the completion and expected results of the
proposed separation transaction; 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, 2014, 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.
(Tables Follow)
EXTERRAN HOLDINGS, INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except
per share amounts) Three Months Ended March 31,
December 31, March 31, 2015 2014 2014 Revenues: North America
contract operations $ 202,261 $ 199,640 $ 156,523 International
contract operations 120,691 124,066 111,040 Aftermarket services
86,856 108,362 88,048 Fabrication 319,274
361,560 287,397 729,082
793,628 643,008 Costs and Expenses:
Cost of sales (excluding depreciation and amortization expense):
North America contract operations 82,679 85,094 71,081
International contract operations 44,339 49,891 41,032 Aftermarket
services 65,934 85,804 67,821 Fabrication 267,118 297,490 229,588
Selling, general and administrative 86,686 94,658 92,578
Depreciation and amortization 95,808 90,337 85,522 Long-lived asset
impairment 12,732 20,640 3,807 Restructuring charges 4,790 2,159
4,822 Interest expense 27,298 27,411 28,308 Equity in income of
non-consolidated affiliates (5,006 ) - (4,693 ) Other (income)
expense, net 7,841 3,189 (2,434
) 690,219 756,673 617,432
Income before income taxes 38,863 36,955 25,576 Provision
for income taxes 16,491 27,163
9,409 Income from continuing operations 22,372 9,792 16,167
Income from discontinued operations, net of tax 18,713
18,175 18,727 Net income 41,085
27,967 34,894 Less: net income attributable to the noncontrolling
interest (8,943 ) (8,824 ) (2,298 ) Net income
attributable to Exterran stockholders $ 32,142 $ 19,143
$ 32,596 Basic income per common share(1):
Income from continuing operations attributable to Exterran common
stockholders $ 0.19 $ 0.01 $ 0.21 Income from discontinued
operations attributable to Exterran common stockholders 0.27
0.27 0.28 Net income
attributable to Exterran common stockholders $ 0.46 $ 0.28
$ 0.49 Diluted income per common share(1): Income
from continuing operations attributable to Exterran common
stockholders $ 0.19 $ 0.01 $ 0.20 Income from discontinued
operations attributable to Exterran common stockholders 0.27
0.26 0.27 Net income
attributable to Exterran common stockholders $ 0.46 $ 0.27
$ 0.47 Weighted average common shares
outstanding used in computing income per common share: Basic
68,252 67,366 65,390 Diluted
68,534 68,422 67,792
Dividends declared and paid per common share $ 0.15 $
0.15 $ 0.15 (1) Basic and diluted net income
attributable to Exterran common stockholders per common share was
computed using the two-class method to determine the net income per
share for each class of common stock and participating security
(restricted stock and certain of our stock settled restricted stock
units) according to dividends declared and participation rights in
undistributed earnings. Accordingly, we have excluded net income
attributable to participating securities from our calculation of
basic and diluted net income attributable to Exterran common
stockholders per common share.
EXTERRAN HOLDINGS, INC. UNAUDITED SUPPLEMENTAL
INFORMATION (In thousands, except percentages)
Three Months Ended March 31, December 31, March 31, 2015
2014 2014 Revenues: North America contract operations $ 202,261 $
199,640 $ 156,523 International contract operations 120,691 124,066
111,040 Aftermarket services 86,856 108,362 88,048 Fabrication
319,274 361,560 287,397
Total $ 729,082 $ 793,628 $ 643,008
Gross Margin (1): North America contract operations $ 119,582 $
114,546 $ 85,442 International contract operations 76,352 74,175
70,008 Aftermarket services 20,922 22,558 20,227 Fabrication
52,156 64,070 57,809 Total $
269,012 $ 275,349 $ 233,486 Selling,
General and Administrative $ 86,686 $ 94,658 $ 92,578 % of revenue
12 % 12 % 14 % EBITDA, as Adjusted (1) $ 181,993 $ 182,254 $
144,805 % of revenue 25 % 23 % 23 % Capital expenditures $
139,783 $ 155,956 $ 99,214 Less: Proceeds from sale of PP&E
(8,910 ) (4,637 ) (10,863 ) Net Capital
expenditures $ 130,873 $ 151,319 $ 88,351
Gross Margin Percentage: North America contract operations
59 % 57 % 55 % International contract operations 63 % 60 % 63 %
Aftermarket services 24 % 21 % 23 % Fabrication 16 % 18 % 20 %
Total 37 % 35 % 36 % Total Available Horsepower (at period
end): North America contract operations 4,246 4,209 3,476
International contract operations 1,239 1,236
1,254 Total 5,485 5,445
4,730 Total Operating Horsepower (at
period end): North America contract operations 3,689 3,700 2,901
International contract operations 960 976
984 Total 4,649 4,676
3,885 Average Operating Horsepower:
North America contract operations 3,695 3,638 2,894 International
contract operations 971 975 982
Total 4,666 4,613 3,876
Horsepower Utilization (at period end): North America
contract operations 87 % 88 % 83 % International contract
operations 77 % 79 % 78 % Total 85 % 86 % 82 % March 31,
December 31, March 31, Fabrication Backlog: 2015 2014 2014
Compression & accessory $ 185,640 $ 270,297 $ 176,708
Production & processing equipment 458,143 561,153 433,842
Installation 86,590 121,751
58,513 Total $ 730,373 $ 953,201 $ 669,063
Balance Sheet: Debt - Parent level $ 704,994 $
726,607 $ 783,828 Debt - Exterran Partners, L.P. 1,342,581
1,300,295 801,595 Total
consolidated debt $ 2,047,575 $ 2,026,902 $ 1,585,423
Exterran stockholders' equity $ 1,809,730 $ 1,797,260
$ 1,702,787 (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 March 31, December
31, March 31, 2015 2014 2014 Reconciliation of GAAP to
Non-GAAP Financial Information: Net income $ 41,085 $ 27,967
$ 34,894 Income from discontinued operations, net of tax
(18,713 ) (18,175 ) (18,727 ) Income from continuing
operations 22,372 9,792 16,167 Depreciation and amortization 95,808
90,337 85,522 Long-lived asset impairment 12,732 20,640 3,807
Restructuring charges 4,790 2,159 4,822 Investment in
non-consolidated affiliates impairment - - 197 Proceeds from sale
of joint venture assets (5,006 ) - (4,890 ) Interest expense 27,298
27,411 28,308 (Gain) loss on currency exchange rate remeasurement
of intercompany balances 7,508 3,730 (81 ) Loss on sale of
businesses - 961 - Expensed acquisition costs - 61 1,544 Provision
for income taxes 16,491 27,163
9,409 EBITDA, as adjusted (1) 181,993 182,254 144,805
Selling, general and administrative 86,686 94,658 92,578 Equity in
income of non-consolidated affiliates (5,006 ) - (4,693 )
Investment in non-consolidated affiliates impairment - - (197 )
Proceeds from sale of joint venture assets 5,006 - 4,890 Gain
(loss) on currency exchange rate remeasurement of intercompany
balances (7,508 ) (3,730 ) 81 Loss on sale of businesses - (961 ) -
Expensed acquisition costs - (61 ) (1,544 ) Other (income) expense,
net 7,841 3,189 (2,434 ) Gross
Margin (1) $ 269,012 $ 275,349 $ 233,486
Net Income attributable to Exterran stockholders $
32,142 $ 19,143 $ 32,596 Income from discontinued operations
(18,713 ) (18,175 ) (18,727 ) Foreign tax credit valuation
allowance - 7,224 - Items, after-tax: Long-lived asset impairment
(including the impact on noncontrolling interest) 7,146 11,094
1,472 Restructuring charges (including the impact on noncontrolling
interest) 3,017 1,360 2,897 Investment in non-consolidated
affiliates impairment - - 197 Proceeds from sale of joint venture
assets (5,006 ) - (4,890 ) Loss on sale of businesses - 718 -
Expensed acquisition costs (including the impact on noncontrolling
interest) - 14 398 Net
income from continuing operations attributable to Exterran
stockholders, excluding items $ 18,586 $ 21,378 $
13,943 Diluted income from continuing operations
attributable to Exterran common stockholders $ 0.19 $ 0.01 $ 0.20
Adjustment for items, after-tax, per common share (2) 0.08
0.30 - Diluted net income from
continuing operations attributable to Exterran common stockholders
per common share, excluding items (1)(2) $ 0.27 $ 0.31
$ 0.20 (1) Management believes EBITDA, as adjusted,
diluted net income from continuing operations attributable to
Exterran common stockholders per common share, excluding items, 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. (2) Diluted net
income from continuing operations attributable to Exterran common
stockholders per common share, excluding items, was computed using
the two-class method to determine the net income per share for each
class of common stock and participating security (restricted stock
and certain of our stock settled restricted stock units) according
to dividends declared and participation rights in undistributed
earnings. Accordingly, we have excluded net income from continuing
operations attributable to participating securities, excluding
items, of $0.2 million, $0.4 million and $0.2 million for the three
months ended March 31, 2015, December 31, 2014 and March 31, 2014,
respectively, from our calculation of diluted net income from
continuing operations attributable to Exterran common stockholders
per common share, excluding items.
Exterran Holdings, Inc.MediaSusan Moore,
281-836-7398orInvestorsDavid Oatman, 281-836-7035
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