- EBITDA, as adjusted, of $162 million
for the quarter, compared to $161 million for the second quarter
2014
- Net income from continuing
operations attributable to Exterran common stockholders of $0.22
per diluted share, excluding items, for the quarter
Exterran Holdings, Inc. (NYSE:EXH) today reported EBITDA, as
adjusted (as defined below), of $162.5 million for the second
quarter 2015, compared to $182.0 million for the first quarter 2015
and $161.1 million for the second quarter 2014.
Revenue was $683.8 million for the second quarter 2015, compared
to $729.1 million for the first quarter 2015 and $739.3 million for
the second quarter 2014.
Fabrication backlog was $600.5 million at June 30, 2015,
compared to $730.4 million at March 31, 2015 and $818.1 million at
June 30, 2014. Fabrication bookings were $149.6 million for the
second quarter 2015, compared to $96.4 million for the first
quarter 2015 and $471.6 million for the second 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 August 17, 2015 to stockholders of record at
the close of business on August 10, 2015.
“In the second quarter 2015, we achieved solid operating
performance across our businesses. Due to their production-oriented
focus, our contract operations and aftermarket services businesses
in the United States and international markets demonstrated
stability compared to businesses that are more closely tied to
drilling and completion activity. In our fabrication business,
revenues and gross margins held up well given industry conditions
while bookings improved over first quarter levels,” said Brad
Childers, Exterran Holdings’ President and Chief Executive
Officer.
“We remain committed to enhancing shareholder value through the
planned separation of our international services and global
fabrication businesses and expect to complete this transaction as
soon as we secure reasonable financing,” added Childers. “In the
meantime, our financial position is solid and we have ample
liquidity, including availability under our credit facilities of
approximately $450 million at Exterran Holdings and approximately
$360 million at Exterran Partners, at June 30, 2015.”
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 $5.1 million for the second quarter 2015,
compared to $23.7 million for the first quarter 2015 and $23.0
million for the second quarter 2014. At June 30, 2015, Exterran was
still due to receive $116 million of principal payments from the
sales of these assets. In July 2015, Exterran received an
installment payment of $18.9 million related to the sale of its
Venezuelan wholly-owned assets. As a result, this income will be
recognized in the third quarter 2015 when the proceeds were
received.
Net income from continuing operations attributable to Exterran
stockholders, excluding items, for the second quarter 2015 was
$15.6 million, or $0.22 per diluted common share. In addition to
excluding the benefit related to our nationalized Venezuelan assets
discussed above, these amounts also exclude restructuring and other
charges of $19.6 million, including costs associated with the
planned spin-off, that primarily consisted of legal, consulting,
audit and professional fees and non-cash write-down of inventory,
and non-cash long-lived asset impairment charges of $15.4 million
related to our contract operations businesses. Net income from
continuing operations attributable to Exterran stockholders,
excluding items, was $18.6 million, or $0.27 per diluted common
share, for the first quarter 2015, and net loss from continuing
operations attributable to Exterran stockholders, excluding items,
was $4.7 million, or $0.07 per diluted common share, for the second
quarter 2014.
Net loss attributable to Exterran stockholders was $1.4 million,
or $0.02 per diluted common share, for the second quarter 2015. Net
income attributable to Exterran stockholders was $32.1 million, or
$0.46 per diluted common share, for the first quarter 2015, and
$12.4 million, or $0.19 per diluted common share, for the second
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 $18.5 million for the second quarter 2015,
compared to $15.6 million for the first quarter 2015 and $14.0
million for the second quarter 2014.
Conference Call Details
Exterran Holdings and Exterran Partners, L.P. will host a joint
conference call on Tuesday, August 4, 2015, to discuss their
second-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 40327110.
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
40327110#.
*****
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 and other 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,
the availability of financing to consummate the proposed
transaction 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;
availability under Exterran Holdings’ and Exterran Partners’ credit
facilities; 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.
EXTERRAN HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share
amounts)
Three Months Ended June 30, March 31,
June 30, 2015 2015 2014
Revenues:
North America contract operations $ 198,259 $ 202,261 $ 181,940
International contract operations 115,250 120,691 134,392
Aftermarket services 90,834 86,856 100,359 Fabrication
279,489 319,274 322,579
683,832 729,082 739,270
Costs and Expenses:
Cost of sales (excluding depreciation and amortization expense):
North America contract operations 81,221 82,679 77,514
International contract operations 44,745 44,339 46,502 Aftermarket
services 70,171 65,934 79,297 Fabrication 240,854 267,118 279,983
Selling, general and administrative 83,874 86,686 95,712
Depreciation and amortization 94,325 95,808 111,956 Long-lived
asset impairment 15,420 12,732 9,847 Restructuring and other
charges 19,604 4,790 353 Interest expense 28,398 27,298 32,722
Equity in income of non-consolidated affiliates (5,062 ) (5,006 )
(4,909 ) Other (income) expense, net 1,005
7,841 (3,671 ) 674,555 690,219
725,306
Income before income taxes
9,277 38,863 13,964
Provision for income taxes
1,742 16,491 10,870
Income from continuing operations
7,535 22,372 3,094
Income from discontinued operations, net
of tax
254 18,713 17,769
Net income
7,789 41,085 20,863 Less: Net income attributable to the
noncontrolling interest (9,178 ) (8,943 )
(8,486 )
Net income (loss) attributable to Exterran
stockholders
$ (1,389 ) $ 32,142 $ 12,377
Basic income (loss) per common
share(1):
Income (loss) from continuing operations attributable to Exterran
common stockholders $ (0.03 ) $ 0.19 $ (0.08 ) Income from
discontinued operations attributable to Exterran common
stockholders 0.01 0.27 0.27
Net income (loss) attributable to Exterran common
stockholders $ (0.02 ) $ 0.46 $ 0.19
Diluted income (loss) per common
share(1):
Income (loss) from continuing operations attributable to Exterran
common stockholders $ (0.03 ) $ 0.19 $ (0.08 ) Income from
discontinued operations attributable to Exterran common
stockholders 0.01 0.27 0.27
Net income (loss) attributable to Exterran common
stockholders $ (0.02 ) $ 0.46 $ 0.19
Weighted average common shares outstanding
used in computing income (loss) per common share:
Basic 68,514 68,252 65,890
Diluted 68,514 68,534
65,890
Dividends declared and paid per common
share
$ 0.15 $ 0.15 $ 0.15
(1) Basic and diluted net income (loss)
attributable to Exterran common stockholders per common share was
computed using the two-class method to determine the net income
(loss) 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 (loss)
attributable to Exterran common stockholders per common share.
EXTERRAN HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands, except percentages)
Three Months Ended June 30, March 31,
June 30, 2015 2015 2014
Revenues:
North America contract operations $ 198,259 $ 202,261 $ 181,940
International contract operations 115,250 120,691 134,392
Aftermarket services 90,834 86,856 100,359 Fabrication
279,489 319,274 322,579 Total $
683,832 $ 729,082 $ 739,270
Gross Margin (1):
North America contract operations $ 117,038 $ 119,582 $ 104,426
International contract operations 70,505 76,352 87,890 Aftermarket
services 20,663 20,922 21,062 Fabrication 38,635
52,156 42,596 Total $ 246,841 $
269,012 $ 255,974
Selling, General and Administrative
$ 83,874 $ 86,686 $ 95,712
% of revenue
12 % 12 % 13 %
EBITDA, as Adjusted (1)
$ 162,453 $ 181,993 $ 161,132
% of revenue
24 % 25 % 22 %
Capital expenditures
$ 114,397 $ 139,783 $ 138,996
Less: Proceeds from sale of PP&E
(10,438 ) (8,910 ) (2,536 )
Net Capital expenditures
$ 103,959 $ 130,873 $ 136,460
Gross Margin Percentage:
North America contract operations 59 % 59 % 57 % International
contract operations 61 % 63 % 65 % Aftermarket services 23 % 24 %
21 % Fabrication 14 % 16 % 13 % Total 36 % 37 % 35 %
Total Available Horsepower (at period
end):
North America contract operations 4,246 4,246 3,976 International
contract operations 1,216 1,239
1,248 Total 5,462 5,485
5,224
Total Operating Horsepower (at period
end):
North America contract operations 3,618 3,689 3,422 International
contract operations 938 960 959
Total 4,556 4,649 4,381
Average Operating Horsepower:
North America contract operations 3,652 3,695 3,340 International
contract operations 948 971 968
Total 4,600 4,666 4,308
Horsepower Utilization (at period
end):
North America contract operations 85 % 87 % 86 % International
contract operations 77 % 77 % 77 % Total 83 % 85 % 84 % June
30, March 31, June 30,
Fabrication Backlog:
2015 2015 2014 Compression & accessory $ 150,981 $ 185,640 $
192,692 Production & processing equipment 389,037 458,143
532,117 Installation 60,479 86,590
93,305 Total $ 600,497 $ 730,373 $
818,114
Balance Sheet:
Debt - Parent level $ 707,391 $ 704,994 $ 810,832 Debt - Exterran
Partners, L.P. 1,382,371 1,342,581
1,041,736 Total consolidated debt $ 2,089,762
$ 2,047,575 $ 1,852,568 Exterran stockholders' equity
$ 1,826,533 $ 1,809,730 $ 1,770,231
(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 June 30, March 31, June 30,
2015 2015 2014
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income $ 7,789 $ 41,085 $ 20,863 Income from
discontinued operations, net of tax (254 ) (18,713 )
(17,769 ) Income from continuing operations 7,535 22,372
3,094 Depreciation and amortization 94,325 95,808 111,956
Long-lived asset impairment 15,420 12,732 9,847 Restructuring and
other charges 19,604 4,790 353 Proceeds from sale of joint venture
assets (5,062 ) (5,006 ) (4,909 ) Interest expense 28,398 27,298
32,722 (Gain) loss on currency exchange rate remeasurement of
intercompany balances 491 7,508 (2,801 ) Provision for income taxes
1,742 16,491 10,870
EBITDA, as adjusted (1) 162,453 181,993 161,132 Selling, general
and administrative 83,874 86,686 95,712 Equity in income of
non-consolidated affiliates (5,062 ) (5,006 ) (4,909 ) Proceeds
from sale of joint venture assets 5,062 5,006 4,909 Gain (loss) on
currency exchange rate remeasurement of intercompany balances (491
) (7,508 ) 2,801 Other (income) expense, net 1,005
7,841 (3,671 ) Gross Margin (1) $ 246,841
$ 269,012 $ 255,974 Net Income
(loss) attributable to Exterran stockholders $ (1,389 ) $ 32,142 $
12,377 Income from discontinued operations (254 ) (18,713 ) (17,769
) Items, after-tax: Long-lived asset impairment (including the
impact on noncontrolling interest) 9,025 7,146 5,409 Restructuring
and other charges (including the impact on noncontrolling interest)
13,278 3,017 143 Proceeds from sale of joint venture assets
(5,062 ) (5,006 ) (4,909 ) Net income (loss) from
continuing operations attributable to Exterran stockholders,
excluding items $ 15,598 $ 18,586 $ (4,749 )
Diluted income (loss) from continuing operations attributable to
Exterran common stockholders $ (0.03 ) $ 0.19 $ (0.08 ) Adjustment
for items, after-tax, per common share (2) 0.25
0.08 0.01
Diluted net income (loss) from continuing
operations attributable to Exterran common stockholders per common
share, excluding items (1)(2)
$ 0.22 $ 0.27 $ (0.07 )
(1) Management believes EBITDA, as
adjusted, diluted net income (loss) 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 (loss) 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 (loss) 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 $0.4 million, $0.2 million and $0.1 million for the three
months ended June 30, 2015, March 31, 2015 and June 30, 2014,
respectively, from our calculation of diluted net income (loss)
from continuing operations attributable to Exterran common
stockholders per common share, excluding items.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150804005581/en/
Exterran Holdings, Inc.Susan Moore, 281-836-7398 (Media)David
Oatman, 281-836-7035 (Investors)
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