Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Archrock, Inc. | form8_k.htm |
Exterran
Holdings and Exterran Partners Report
Third
Quarter 2009 Results
HOUSTON,
November 5, 2009 – Exterran Holdings, Inc. (NYSE: EXH) and Exterran Partners,
L.P. (NASDAQ: EXLP) today reported financial results for the third quarter
2009.
Exterran
Holdings, Inc. Financial Results
Exterran
Holdings reported net income attributable to Exterran stockholders for the third
quarter 2009 of $18.2 million, or $0.30 per diluted share, compared to a net
loss attributable to Exterran stockholders for the second quarter 2009 of $530.8
million, or $8.66 per diluted share, and net income attributable to Exterran
stockholders for the third quarter 2008 of $37.0 million, or $0.57 per diluted
share.
Net
income from continuing operations attributable to Exterran stockholders for the
third quarter 2009 was $24.8 million, or $0.38 per diluted share, excluding
pretax charges that totaled $3.6 million, including a $2.6 million restructuring
charge related to the consolidation of our fabrication facilities in North
America and a $1.0 million charge related to our investments in non-consolidated
affiliates in Venezuela. Due to the expropriation of our assets and
operations in Venezuela, our Venezuelan contract operations and aftermarket
services businesses are reflected as discontinued operations in our current and
prior period financial results.
Net
income from continuing operations for the second quarter 2009 attributable to
Exterran stockholders, excluding charges, was $24.4 million, or $0.39 per
diluted share, and net income from continuing operations for the third quarter
2008 attributable to Exterran stockholders, excluding charges, was $24.0
million, or $0.37 per diluted share.
Revenue
was $679.7 million for the third quarter 2009, compared to $678.0 million for
the second quarter 2009 and $756.3 million for the third quarter
2008. EBITDA, as adjusted (as defined below), was $161.1 million for
the third quarter 2009, compared to $151.4 million for the second quarter 2009
and $172.4 million for the third quarter 2008.
Ernie L.
Danner, Exterran Holdings’ President and Chief Executive Officer, said, “I am
pleased with our overall performance in the third quarter despite challenging
industry conditions. With solid execution by our operating and
support groups, we generated a strong level of cash flow and reduced our debt
balances by $124 million. We also commenced the operation of two new
contract operations projects in the Eastern Hemisphere in early October, and
have a significant backlog of international contract operations projects
scheduled to begin operations through mid-2010.
“Although
we are encouraged by the recent increase in North American natural gas prices,
we expect continuing overall weak market conditions and, in particular,
declining activity levels for our North America contract operations business
into 2010. We expect our net capital expenditures to be $200 million
to $300 million in 2010, down from approximately $375 million to $400 million in
2009. Building on our third quarter success, we expect to generate
positive cash flow after capital expenditures in the fourth quarter of 2009 and
in 2010.”
1
Exterran
Partners, L.P. Financial Results
Exterran
Partners reported revenue of $41.3 million for the third quarter 2009, compared
to $45.1 million for the second quarter 2009 and $44.4 million for the third
quarter 2008. Net income was $2.0 million, or $0.09 per diluted
limited partner unit, for the third quarter 2009, compared to $2.7 million, or
$0.13 per diluted limited partner unit, for the second quarter 2009 and $9.4
million, or $0.49 per diluted limited partner unit, for the third quarter
2008. Net income for the second quarter 2009 was $5.7 million, or
$0.28 per diluted limited partner unit, excluding a $3.0 million non-cash fleet
impairment charge.
Exterran
Partners’ EBITDA, as further adjusted (as defined below), totaled $18.4 million
for the third quarter 2009, compared to $21.1 million for the second quarter
2009 and $22.7 million for the third quarter 2008. Distributable cash
flow (as defined below) totaled $10.6 million for the third quarter 2009,
compared to $12.7 million for the second quarter 2009 and $14.8 million for the
third quarter 2008.
“In
October, Exterran Partners agreed to acquire contracts and equipment
representing approximately 273,000 horsepower of compression from Exterran
Holdings for approximately $143 million, excluding transaction costs, to be
financed with approximately $57 million of borrowings under its new $150 million
asset-backed securitization facility and existing revolving credit facility and
the issuance of approximately 4.7 million common units and approximately 97,000
general partner units to Exterran Holdings. The acquisition,
anticipated to close in mid-November, is expected to strengthen Exterran
Partners’ market position in the United States and enhance its distributable
cash flow,” commented Mr. Danner, President and Chief Executive Officer of
Exterran Partners’ managing general partner.
On
October 30, 2009, Exterran Partners announced a cash distribution of $0.4625 per
limited partner unit for the third quarter 2009, the same level as in the second
quarter 2009 and the third quarter 2008.
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
2009 earnings release:
|
·
|
Teleconference:
Thursday, November 5, 2009 at 11:00 a.m. Eastern Time, 10:00 a.m. Central
Time. To access the call, United States and Canadian
participants should dial 888-895-5271. International participants should
dial 847-619-6547 at least 10 minutes before the scheduled start time.
Please reference Exterran conference call number
25723798.
|
|
·
|
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 5, 2009, until 2:00 p.m. Eastern Time
on Thursday, November 12, 2009. To listen to the replay, please dial
888-843-8996 in the United States and Canada, or 630-652-3044
internationally, and enter access code
25723798.
|
*****
2
With
respect to Exterran Holdings, EBITDA, as adjusted, a non-GAAP measure, is
defined as income (loss) from continuing operations plus income taxes, interest
expense (including debt extinguishment costs and gain or loss on termination of
interest rate swaps), depreciation and amortization expense, impairment charges,
merger and integration expenses, restructuring charges, excluding non-recurring
items, and extraordinary gains or losses.
With
respect to Exterran Partners, EBITDA, as further adjusted, a non-GAAP measure,
is defined as net income (loss) plus income taxes, interest expense (including
debt extinguishment costs and gain or loss on termination of interest rate
swaps), depreciation and amortization expense, impairment charges, non-cash
selling, general and administrative (“SG&A”) expenses and any amounts by
which cost of sales and SG&A costs are reduced as a result of caps on these
costs contained in the omnibus agreement to which Exterran Holdings and Exterran
Partners are parties (the “Omnibus Agreement”), which amounts are treated as
capital contributions from Exterran Holdings for accounting purposes, and
excluding non-recurring items.
With
respect to Exterran Partners, distributable cash flow, a non-GAAP measure, is
defined as net income plus depreciation and amortization expense, impairment
charges, non-cash SG&A expenses, interest expense and any amounts by which
cost of sales and SG&A costs are reduced as a result of caps on these costs
contained in the Omnibus Agreement, which amounts are treated as capital
contributions from Exterran Holdings for accounting purposes, less cash interest
expense and maintenance capital expenditures, and excluding gains/losses on
asset sales and non-recurring items.
With
respect to Exterran Holdings, Gross Margin, a non-GAAP measure, is defined as
total revenue less cost of sales (excluding depreciation and amortization
expense).
With
respect to Exterran Partners, Gross Margin, as adjusted, a non-GAAP measure, is
defined as total revenue less cost of sales (excluding depreciation and
amortization expense) plus any amounts by which cost of sales are reduced as a
result of caps on these costs contained in the Omnibus Agreement, which amounts
are treated as capital contributions from Exterran Holdings for accounting
purposes.
About
Exterran Holdings and Exterran Partners
Exterran
Holdings, Inc. is a global market leader in full service natural gas compression
and a premier provider of operations, maintenance, service and equipment for oil
and gas production, processing and transportation
applications. Exterran Holdings serves customers across the energy
spectrum—from producers to transporters to processors to storage
owners. Headquartered in Houston, Texas, Exterran and its over 10,000
employees have operations in over 30 countries.
Exterran
Partners, L.P. provides natural gas contract operations services to customers
throughout the United States. Exterran Holdings indirectly owns a
majority interest in Exterran Partners.
For more
information, visit www.exterran.com.
3
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 the Private Securities Litigation Reform Act of 1995. 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 ability of the Companies to complete their proposed transaction and the
expected timing of the closing of the transaction; the expected benefits of the
transaction to Exterran Partners; Exterran Holdings’ ability to execute on its
backlog of international contract operations projects and the ability of those
projects to begin generating revenues through mid-2010; the Companies’
expectations regarding future economic and market conditions; and the Companies’
financial and operational outlook, including expected levels of cash flows, and
ability to fulfill that outlook.
While the
Companies believe that the assumptions concerning future events are reasonable,
they caution that there are inherent difficulties in predicting certain
important factors that could impact the future performance or results of their
business. Among the factors that could cause results to differ
materially from those indicated by such forward-looking statements are: local,
regional, national and international economic conditions and the impact they may
have on the Companies and their customers; changes in tax laws that impact
master limited partnerships; conditions in the oil and gas industry, including a
sustained decrease in the level of supply or demand for oil and natural gas and
the impact on the price of oil and natural gas; Exterran Holdings’ ability to
timely and cost-effectively obtain components necessary to conduct the
Companies’ business; changes in political or economic conditions in key
operating markets, including international markets; changes in safety and
environmental regulations pertaining to the production and transportation of oil
and natural gas; and, as to each of the Companies, the performance of the other
entity.
These
forward-looking statements are also affected by the risk factors,
forward-looking statements and challenges and uncertainties described in
Exterran Holdings’ Annual Report on Form 10-K for the year ended December 31,
2008, Exterran Partners’ Annual Report on Form 10-K for the year ended December
31, 2008, and those set forth from time to time in the Companies’ filings with
the Securities and Exchange Commission, which are currently available at
www.exterran.com. Except as required by law, the Companies expressly
disclaim any intention or obligation to revise or update any forward-looking
statements whether as a result of new information, future events or
otherwise.
Exterran
Contact Information:
Investors:
David Oatman (281) 836-7035
Media:
Susan Nelson (281) 836-7297
SOURCE:
Exterran Holdings, Inc. and Exterran Partners, L.P.
(Tables
Follow)
4
|
EXTERRAN
HOLDINGS, INC.
|
||||||||||||
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||
|
(in
thousands, except per share amounts)
|
||||||||||||
| Three Months Ended | ||||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||||
|
2009
|
2009
|
2008
|
||||||||||
|
Revenues:
|
||||||||||||
|
North
America contract operations
|
$ | 167,567 | $ | 178,455 | $ | 197,926 | ||||||
|
International
contract operations
|
96,420 | 95,448 | 99,680 | |||||||||
|
Aftermarket
services
|
75,526 | 78,504 | 94,044 | |||||||||
|
Fabrication
|
340,193 | 325,561 | 364,608 | |||||||||
| 679,706 | 677,968 | 756,258 | ||||||||||
|
Costs
and expenses:
|
||||||||||||
|
Cost
of sales (excluding depreciation and amortization
expense):
|
||||||||||||
|
North America contract operations
|
74,556 | 74,420 | 84,440 | |||||||||
|
International contract operations
|
37,850 | 37,897 | 40,504 | |||||||||
|
Aftermarket services
|
59,360 | 61,778 | 75,193 | |||||||||
|
Fabrication
|
278,036 | 275,561 | 292,978 | |||||||||
|
Selling,
general and administrative
|
81,600 | 86,380 | 89,564 | |||||||||
|
Merger
and integration expenses
|
- | - | 3,728 | |||||||||
|
Depreciation
and amortization
|
87,781 | 85,903 | 83,029 | |||||||||
|
Fleet
impairment
|
- | 86,684 | 1,000 | |||||||||
|
Restructuring
charges
|
2,616 | 8,076 | - | |||||||||
|
Goodwill
impairment
|
- | 150,778 | - | |||||||||
|
Interest
expense
|
33,371 | 29,163 | 33,401 | |||||||||
|
Equity
in (income) loss of non-consolidated affiliates
|
1,011 | 567 | (6,657 | ) | ||||||||
|
Other
(income) expense, net
|
(12,768 | ) | (9,433 | ) | 7,835 | |||||||
| 643,413 | 887,774 | 705,015 | ||||||||||
|
Income
(loss) before income taxes
|
36,293 | (209,806 | ) | 51,243 | ||||||||
|
Provision
for (benefit from) income taxes
|
13,691 | (23,177 | ) | 27,252 | ||||||||
|
Income
(loss) from continuing operations
|
22,602 | (186,629 | ) | 23,991 | ||||||||
|
Income
(loss) from discontinued operations, net of tax
|
(3,834 | ) | (343,323 | ) | 16,070 | |||||||
|
Net
income (loss)
|
18,768 | (529,952 | ) | 40,061 | ||||||||
|
Less:
net income attributable to the noncontrolling interest
|
(576 | ) | (818 | ) | (3,028 | ) | ||||||
|
Net
income (loss) attributable to Exterran stockholders
|
$ | 18,192 | $ | (530,770 | ) | $ | 37,033 | |||||
|
Basic
income (loss) per common share:
|
||||||||||||
|
Income
(loss) from continuing operations attributable to Exterran
stockholders
|
$ | 0.36 | $ | (3.06 | ) | $ | 0.32 | |||||
|
Income
(loss) from discontinued operations attributable to Exterran
stockholders
|
(0.06 | ) | (5.60 | ) | 0.25 | |||||||
|
Net
income (loss) attributable to Exterran stockholders
|
$ | 0.30 | $ | (8.66 | ) | $ | 0.57 | |||||
|
Diluted
income (loss) per common share:
|
||||||||||||
|
Income
(loss) from continuing operations attributable to Exterran
stockholders
|
$ | 0.35 | $ | (3.06 | ) | $ | 0.32 | |||||
|
Income
(loss) from discontinued operations attributable to Exterran
stockholders
|
(0.05 | ) | (5.60 | ) | 0.25 | |||||||
|
Net
income (loss) attributable to Exterran stockholders
|
$ | 0.30 | $ | (8.66 | ) | $ | 0.57 | |||||
|
Weighted
average common and equivalent shares outstanding:
|
||||||||||||
|
Basic
|
61,579 | 61,277 | 64,940 | |||||||||
|
Diluted
|
77,509 | 61,277 | 65,423 | |||||||||
|
Income
(loss) attributable to Exterran stockholders:
|
||||||||||||
|
Income
(loss) from continuing operations
|
$ | 22,026 | $ | (187,447 | ) | $ | 20,963 | |||||
|
Income
(loss) from discontinued operations, net of tax
|
(3,834 | ) | (343,323 | ) | 16,070 | |||||||
|
Net
income (loss) attributable to Exterran stockholders
|
$ | 18,192 | $ | (530,770 | ) | $ | 37,033 | |||||
5
|
EXTERRAN
HOLDINGS, INC.
|
||||||||||||
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
||||||||||||
|
(In
thousands, except percentages)
|
||||||||||||
| Three Months Ended | ||||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||||
|
2009
|
2009
|
2008
|
||||||||||
|
Revenues:
|
||||||||||||
|
North
America contract operations
|
$ | 167,567 | $ | 178,455 | $ | 197,926 | ||||||
|
International
contract operations
|
96,420 | 95,448 | 99,680 | |||||||||
|
Aftermarket
services
|
75,526 | 78,504 | 94,044 | |||||||||
|
Fabrication
|
340,193 | 325,561 | 364,608 | |||||||||
|
Total
|
$ | 679,706 | $ | 677,968 | $ | 756,258 | ||||||
|
Gross
Margin (1):
|
||||||||||||
|
North
America contract operations
|
$ | 93,011 | $ | 104,035 | $ | 113,486 | ||||||
|
International
contract operations
|
58,570 | 57,551 | 59,176 | |||||||||
|
Aftermarket
services
|
16,166 | 16,726 | 18,851 | |||||||||
|
Fabrication
|
62,157 | 50,000 | 71,630 | |||||||||
|
Total
|
$ | 229,904 | $ | 228,312 | $ | 263,143 | ||||||
|
Selling,
General and Administrative
|
$ | 81,600 | $ | 86,380 | $ | 89,564 | ||||||
|
%
of Revenues
|
12 | % | 13 | % | 12 | % | ||||||
|
EBITDA,
as adjusted (1)
|
$ | 161,072 | $ | 151,365 | $ | 172,401 | ||||||
|
%
of Revenues
|
24 | % | 22 | % | 23 | % | ||||||
|
Capital
Expenditures
|
$ | 74,983 | $ | 106,075 | $ | 112,831 | ||||||
|
Less:
Proceeds from Sale of PP&E
|
(4,060 | ) | (10,256 | ) | (18,418 | ) | ||||||
|
Net
Capital Expenditures
|
$ | 70,923 | $ | 95,819 | $ | 94,413 | ||||||
|
Gross
Margin Percentage:
|
||||||||||||
|
North
America contract operations
|
56 | % | 58 | % | 57 | % | ||||||
|
International
contract operations
|
61 | % | 60 | % | 59 | % | ||||||
|
Aftermarket
services
|
21 | % | 21 | % | 20 | % | ||||||
|
Fabrication
|
18 | % | 15 | % | 20 | % | ||||||
|
Total
|
34 | % | 34 | % | 35 | % | ||||||
|
Total
Available Horsepower (at period end):
|
||||||||||||
|
North
America contract operations
|
4,339 | 4,340 | 4,540 | |||||||||
|
International
contract operations
|
1,220 | 1,214 | 1,151 | |||||||||
|
Total
|
5,559 | 5,554 | 5,691 | |||||||||
|
Total
Operating Horsepower (at period end):
|
||||||||||||
|
North
America contract operations
|
2,983 | 3,125 | 3,452 | |||||||||
|
International
contract operations
|
1,015 | 1,037 | 1,046 | |||||||||
|
Total
|
3,998 | 4,162 | 4,498 | |||||||||
|
Total
Operating Horsepower (average):
|
||||||||||||
|
North
America contract operations
|
3,052 | 3,207 | 3,456 | |||||||||
|
International
contract operations
|
1,025 | 1,037 | 1,049 | |||||||||
|
Total
|
4,077 | 4,244 | 4,505 | |||||||||
|
Horsepower
Utilization (at period end):
|
||||||||||||
|
North
America contract operations
|
69 | % | 72 | % | 76 | % | ||||||
|
International
contract operations
|
83 | % | 85 | % | 91 | % | ||||||
|
Total
|
72 | % | 75 | % | 79 | % | ||||||
|
Fabrication
Backlog:
|
||||||||||||
|
Compression
& accessory
|
$ | 211,012 | $ | 291,633 | $ | 359,392 | ||||||
|
Production
& processing equipment
|
570,751 | 652,772 | 731,874 | |||||||||
|
Total
|
$ | 781,763 | $ | 944,405 | $ | 1,091,266 | ||||||
|
Debt
to Capitalization:
|
||||||||||||
|
Debt
|
$ | 2,385,748 | $ | 2,509,777 | $ | 2,467,773 | ||||||
|
Exterran
stockholders' equity
|
1,606,444 | 1,570,256 | 3,239,237 | |||||||||
|
Capitalization
|
$ | 3,992,192 | $ | 4,080,033 | $ | 5,707,010 | ||||||
|
Total
Debt to Capitalization
|
59.8 | % | 61.5 | % | 43.2 | % | ||||||
|
(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.
|
||||||||||||
6
|
EXTERRAN
HOLDINGS, INC.
|
||||||||||||
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
||||||||||||
|
(In
thousands, except per share amounts)
|
||||||||||||
| Three Months Ended | ||||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||||
|
2009
|
2009
|
2008
|
||||||||||
|
Reconciliation
of GAAP to Non-GAAP Financial Information:
|
||||||||||||
|
Income
(loss) from continuing operations
|
$ | 22,602 | $ | (186,629 | ) | $ | 23,991 | |||||
|
Depreciation
and amortization
|
87,781 | 85,903 | 83,029 | |||||||||
|
Fleet
impairment
|
- | 86,684 | 1,000 | |||||||||
|
Restructuring
charges
|
2,616 | 8,076 | - | |||||||||
|
Investment
in non-consolidated affiliates impairment
|
1,011 | 567 | - | |||||||||
|
Goodwill
impairment
|
- | 150,778 | - | |||||||||
|
Interest
expense
|
33,371 | 29,163 | 33,401 | |||||||||
|
Merger
and integration expenses
|
- | - | 3,728 | |||||||||
|
Provision
for (benefit from) income taxes
|
13,691 | (23,177 | ) | 27,252 | ||||||||
|
EBITDA,
as adjusted (1)
|
161,072 | 151,365 | 172,401 | |||||||||
|
Selling,
general and administrative
|
81,600 | 86,380 | 89,564 | |||||||||
|
Equity
in (income) loss of non-consolidated affiliates
|
1,011 | 567 | (6,657 | ) | ||||||||
|
Investment
in non-consolidated affiliates impairment
|
(1,011 | ) | (567 | ) | - | |||||||
|
Other
(income) expense, net
|
(12,768 | ) | (9,433 | ) | 7,835 | |||||||
|
Gross
Margin (1)
|
$ | 229,904 | $ | 228,312 | $ | 263,143 | ||||||
|
Net
income (loss) attributable to Exterran stockholders
|
$ | 18,192 | $ | (530,770 | ) | $ | 37,033 | |||||
|
(Income)
loss from discontinued operations
|
3,834 | 343,323 | (16,070 | ) | ||||||||
|
Charges,
after-tax:
|
||||||||||||
|
Fleet
impairment
|
- | 55,153 | 640 | |||||||||
|
Restructuring
charges
|
1,731 | 5,344 | - | |||||||||
|
Investment
in non-consolidated affiliates impairment
|
1,011 | 567 | - | |||||||||
|
Goodwill
impairment
|
- | 150,778 | - | |||||||||
|
Merger
and integration expenses
|
- | - | 2,349 | |||||||||
|
Net
income from continuing operations attributable to Exterran stockholders,
excluding charges
|
$ | 24,768 | $ | 24,395 | $ | 23,952 | ||||||
|
Diluted
Income (loss) from continuing operations attributable to Exterran
stockholders
|
$ | 0.35 | $ | (3.06 | ) | $ | 0.32 | |||||
|
Adjustment
for charges, after-tax, per common share
|
0.03 | 3.45 | 0.05 | |||||||||
|
Diluted
net income from continuing operations attributable to Exterran
stockholders per common share,
|
||||||||||||
|
excluding
charges (1)
|
$ | 0.38 | $ | 0.39 | $ | 0.37 | ||||||
|
(1)
Management believes disclosure of EBITDA, as adjusted, diluted income
(loss) attributable to Exterran stockholders per common share, excluding
charges, and Gross Margin, non-GAAP measures, provides useful information
to investors because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our
performance than GAAP results alone. Management uses EBITDA, as
adjusted, diluted income per common share from continuing operations,
excluding charges, and Gross Margin as supplemental measures to review
current period operating performance, comparability measures and
performance measures for period to period comparisons. In addition,
EBITDA, as adjusted, is used by management as a valuation
measure.
|
||||||||||||
7
|
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,
|
||||||||||
|
2009
|
2009
|
2008
|
||||||||||
|
Revenue
|
$ | 41,317 | $ | 45,077 | $ | 44,390 | ||||||
|
Costs
and expenses:
|
||||||||||||
|
Cost
of sales (excluding depreciation and amortization)
|
19,802 | 20,176 | 19,900 | |||||||||
|
Depreciation
and amortization
|
9,042 | 8,678 | 7,542 | |||||||||
| Fleet impairment | - | 2,995 | - | |||||||||
|
Selling,
general and administrative
|
4,961 | 5,551 | 2,423 | |||||||||
| Interest expense | 5,039 | 4,805 | 4,967 | |||||||||
| Other (income) expense, net | 324 | - | - | |||||||||
|
Total costs and expenses
|
39,168 | 42,205 | 34,832 | |||||||||
|
Income
before income taxes
|
2,149 | 2,872 | 9,558 | |||||||||
|
Income
tax expense
|
141 | 134 | 147 | |||||||||
|
Net
income
|
$ | 2,008 | $ | 2,738 | $ | 9,411 | ||||||
|
General
partner interest in net income
|
$ | 289 | $ | 304 | $ | 432 | ||||||
|
Limited
partner interest in net income
|
$ | 1,719 | $ | 2,434 | $ | 8,979 | ||||||
|
Weighted
average limited partners' units outstanding:
|
||||||||||||
| Basic | 19,125 | 19,107 | 18,305 | |||||||||
| Diluted | 19,148 | 19,113 | 18,320 | |||||||||
|
Earnings
per limited partner unit:
|
||||||||||||
| Basic | $ | 0.09 | $ | 0.13 | $ | 0.49 | ||||||
| Diluted | $ | 0.09 | $ | 0.13 | $ | 0.49 | ||||||
8
| EXTERRAN PARTNERS, L.P | ||||||||||||
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
||||||||||||
|
(In
thousands, except per unit amounts)
|
||||||||||||
|
Three
Months Ended
|
||||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||||
|
2009
|
2009
|
2008
|
||||||||||
|
Revenue
|
$ | 41,317 | $ | 45,077 | $ | 44,390 | ||||||
|
Gross
Margin, as adjusted (1)
|
$ | 23,500 | $ | 26,353 | $ | 28,063 | ||||||
|
EBITDA,
as further adjusted (1)
|
$ | 18,405 | $ | 21,077 | $ | 22,694 | ||||||
|
%
of Revenue
|
45 | % | 47 | % | 51 | % | ||||||
|
Capital
Expenditures
|
$ | 3,341 | $ | 4,152 | $ | 4,390 | ||||||
|
Proceeds
from Sale of Compression Equipment
|
- | - | - | |||||||||
|
Net
Capital Expenditures
|
$ | 3,341 | $ | 4,152 | $ | 4,390 | ||||||
|
Gross
Margin percentage, as adjusted
|
57 | % | 58 | % | 63 | % | ||||||
|
Distributable
cash flow (2)
|
$ | 10,633 | $ | 12,714 | $ | 14,798 | ||||||
|
Distributions
per Limited Partner Unit
|
$ | 0.4625 | $ | 0.4625 | $ | 0.4625 | ||||||
|
Distribution
to All Unitholders, including Incentive Distributions
|
$ | 9,277 | $ | 9,277 | $ | 9,264 | ||||||
|
Distributable
Cash Flow Coverage
|
1.15 | x | 1.37 | x | 1.60 | x | ||||||
|
September 30,
|
June 30,
|
September 30,
|
||||||||||
| 2009 | 2009 | 2008 | ||||||||||
|
Debt
|
$ | 384,500 | $ | 387,750 | $ | 399,750 | ||||||
|
Total
Partners' Capital
|
$ | 173,809 | $ | 175,205 | $ | 175,151 | ||||||
|
Total
Debt to Capitalization
|
69 | % | 69 | % | 70 | % | ||||||
|
EBITDA,
as further adjusted (1) to Interest Expense
|
3.7 | x | 4.4 | x | 4.6 | x | ||||||
|
(1)
Management believes disclosure of EBITDA, as further adjusted, and Gross
Margin, as adjusted, both non-GAAP measures, provides useful information
to investors because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our
performance than GAAP results alone. Management uses EBITDA, as
further adjusted, and Gross Margin, as adjusted, as supplemental measures
to review current period operating performance, comparability measures and
performance measures for period to period comparisons. In addition,
EBITDA, as further adjusted, is used by management as a valuation
measure.
|
||||||||||||
|
(2)
Distributable cash flow, a non-GAAP measure, is a significant liquidity
metric used by management to compare basic cash flows generated by us to
the cash distributions we expect to pay our partners. Using this metric,
management can quickly compute the coverage ratio of estimated cash flows
to planned cash distributions.
|
||||||||||||
9
|
EXTERRAN
PARTNERS, L.P.
|
||||||||||||
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
||||||||||||
|
(In
thousands)
|
||||||||||||
|
Three
Months Ended
|
||||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||||
|
2009
|
2009
|
2008
|
||||||||||
|
Reconciliation
of GAAP to Non-GAAP Financial Information:
|
||||||||||||
|
Net
income
|
$ | 2,008 | $ | 2,738 | $ | 9,411 | ||||||
|
Income
tax expense
|
141 | 134 | 147 | |||||||||
|
Depreciation
and amortization
|
9,042 | 8,678 | 7,542 | |||||||||
|
Fleet
impairment
|
- | 2,995 | - | |||||||||
|
Cap
on operating and selling, general and administrative
|
||||||||||||
|
costs provided by Exterran Holdings ("EXH")
|
1,985 | 1,452 | 3,589 | |||||||||
|
Non-cash
selling, general and administrative costs
|
190 | 275 | (2,962 | ) | ||||||||
|
Interest
expense, net of interest income
|
5,039 | 4,805 | 4,967 | |||||||||
|
EBITDA,
as further adjusted (1)
|
18,405 | 21,077 | 22,694 | |||||||||
|
Cash
selling, general and administrative costs
|
4,771 | 5,276 | 5,385 | |||||||||
|
Less:
cap on selling, general and administrative costs provided by
EXH
|
- | - | (16 | ) | ||||||||
|
Less:
other (income) expense, net
|
324 | - | - | |||||||||
|
Gross
Margin, as adjusted for operating cost caps provided by EXH
(1)
|
$ | 23,500 | $ | 26,353 | $ | 28,063 | ||||||
|
Other
income (expense), net
|
(324 | ) | - | - | ||||||||
| Expensed acquisition costs | 324 | - | - | |||||||||
|
Less:
Cash interest expense
|
(4,915 | ) | (4,677 | ) | (4,835 | ) | ||||||
|
Less: Cash
selling, general and administrative, as adjusted for
|
||||||||||||
|
cost caps provided by EXH
|
(4,771 | ) | (5,276 | ) | (5,369 | ) | ||||||
|
Less:
Income tax expense
|
(141 | ) | (134 | ) | (147 | ) | ||||||
|
Less:
Maintenance capital expenditures
|
(3,040 | ) | (3,552 | ) | (2,914 | ) | ||||||
|
Distributable
cash flow (2)
|
$ | 10,633 | $ | 12,714 | $ | 14,798 | ||||||
|
Cash
flows from operating activities
|
$ | 16,182 | $ | 22,773 | $ | 10,311 | ||||||
|
Amortization
of debt issuance cost
|
(87 | ) | (91 | ) | (94 | ) | ||||||
|
Amortization
of fair value of acquired interest rate swaps
|
(37 | ) | (37 | ) | (38 | ) | ||||||
|
Cap
on operating and selling, general and administrative costs provided by
EXH
|
1,985 | 1,452 | 3,589 | |||||||||
|
Interest
expense, net of interest income
|
5,039 | 4,805 | 4,967 | |||||||||
| Expensed acquisition costs | 324 | - | - | |||||||||
|
Cash
interest expense
|
(4,915 | ) | (4,677 | ) | (4,835 | ) | ||||||
|
Maintenance
capital expenditures
|
(3,040 | ) | (3,552 | ) | (2,914 | ) | ||||||
|
Change
in current assets/liabilities
|
(4,818 | ) | (7,959 | ) | 3,812 | |||||||
|
Distributable
cash flow (2)
|
$ | 10,633 | $ | 12,714 | $ | 14,798 | ||||||
|
Net
income
|
$ | 2,008 | $ | 2,738 | $ | 9,411 | ||||||
|
Fleet
impairment
|
- | 2,995 | - | |||||||||
|
Net
income, excluding charge
|
$ | 2,008 | $ | 5,733 | $ | 9,411 | ||||||
|
Diluted
earnings per limited partner unit
|
$ | 0.09 | $ | 0.13 | $ | 0.49 | ||||||
|
Adjustment
for charge per limited partner unit
|
- | 0.15 | - | |||||||||
|
Diluted
earnings per limited partner unit, excluding charge (1)
|
$ | 0.09 | $ | 0.28 | $ | 0.49 | ||||||
|
(1)
Management believes disclosure of EBITDA, as further adjusted, diluted
earnings per limited partner unit, excluding charge, and Gross Margin, as
adjusted, non-GAAP measures, provides useful information to investors
because, when viewed with our GAAP results and accompanying
reconciliations, they provide a more complete understanding of our
performance than GAAP results alone. Management uses EBITDA, as
further adjusted, diluted earnings per limited partner unit, excluding
charge, and Gross Margin, as adjusted, as supplemental measures to review
current period operating performance, comparability measures and
performance measures for period to period comparisons. In addition,
EBITDA, as further adjusted, is used by management as a valuation
measure.
|
||||||||||||
|
(2)
Distributable cash flow, a non-GAAP measure, is a significant liquidity
metric used by management to compare basic cash flows generated by us to
the cash distributions we expect to pay our partners. Using this metric,
management can quickly compute the coverage ratio of estimated cash flows
to planned cash distributions.
|
||||||||||||
10
|
EXTERRAN
PARTNERS, L.P.
|
||||||||||||
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
||||||||||||
|
(In
thousands, except percentages)
|
||||||||||||
|
Three
Months Ended
|
||||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||||
|
2009
|
2009
|
2008
|
||||||||||
|
Total
Available Horsepower (at period end)
|
1,039 | 1,034 | 1,017 | |||||||||
|
Total
Operating Horsepower (at period end)
|
808 | 840 | 909 | |||||||||
|
Average
Operating Horsepower
|
819 | 859 | 829 | |||||||||
|
Horsepower
Utilization:
|
||||||||||||
|
Spot
(at period end)
|
78 | % | 81 | % | 89 | % | ||||||
| Average | 79 | % | 83 | % | 89 | % | ||||||
|
Combined
U.S. Contract Operations Horsepower of Exterran Holdings
|
||||||||||||
|
and Exterran Partners covered by contracts converted to
service
|
||||||||||||
|
agreements
(at period end)
|
1,861 | 1,917 | 1,716 | |||||||||
|
Available
Horsepower:
|
||||||||||||
|
Total Available U.S. Contract Operations Horsepower of Exterran
Holdings
|
||||||||||||
|
and
Exterran Partners (at period end)
|
4,233 | 4,234 | 4,428 | |||||||||
|
% 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 | % | 39 | % | ||||||
|
Operating
Horsepower:
|
||||||||||||
|
Total Operating U.S. Contract Operations Horsepower of Exterran
Holdings
|
||||||||||||
|
and
Exterran Partners (at period end)
|
2,927 | 3,066 | 3,384 | |||||||||
|
% of U.S. Contract Operations Operating Horsepower of
Exterran
|
||||||||||||
|
Holdings and Exterran Partners covered by contracts
converted
|
||||||||||||
|
to service agreements (at period end)
|
65 | % | 63 | % | 51 | % | ||||||
11