Delaware | 001-36875 | 47-3282259 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
4444 Brittmoore Road Houston, Texas 77041 | ||
(Address of Principal Executive Offices) (Zip Code) | ||
(281) 854-3000 Registrant’s telephone number, including area code Not Applicable (Former name or former address, if changed since last report) |
EXTERRAN CORPORATION | |||
/s/ Jon C. Biro | |||
Jon C. Biro | |||
Senior Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press release dated November 3, 2015, announcing Exterran Holdings, Inc.’s results of operations for the quarter ended September 30, 2015. |
• | Spin-off of international services and global fabrication businesses expected to close today |
• | EBITDA, as adjusted, of $155 million for the quarter, compared to $171 million for the third quarter 2014 |
EXTERRAN HOLDINGS, INC. | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Revenues: | ||||||||||||
North America contract operations | $ | 191,692 | $ | 198,259 | $ | 191,000 | ||||||
International contract operations | 114,104 | 115,250 | 124,355 | |||||||||
Aftermarket services | 82,443 | 90,834 | 96,005 | |||||||||
Fabrication | 261,262 | 279,489 | 312,472 | |||||||||
649,501 | 683,832 | 723,832 | ||||||||||
Costs and expenses: | ||||||||||||
Cost of sales (excluding depreciation and amortization expense): | ||||||||||||
North America contract operations | 77,927 | 81,221 | 82,453 | |||||||||
International contract operations | 41,114 | 44,745 | 47,983 | |||||||||
Aftermarket services | 63,773 | 70,171 | 75,510 | |||||||||
Fabrication | 226,925 | 240,854 | 251,401 | |||||||||
Selling, general and administrative | 82,124 | 83,874 | 94,806 | |||||||||
Depreciation and amortization | 94,924 | 94,325 | 98,256 | |||||||||
Long-lived asset impairment | 23,708 | 15,420 | 12,385 | |||||||||
Restructuring and other charges | 11,998 | 19,604 | 219 | |||||||||
Interest expense | 28,577 | 28,398 | 25,737 | |||||||||
Equity in income of non-consolidated affiliates | (5,084 | ) | (5,062 | ) | (4,951 | ) | ||||||
Other (income) expense, net | 30,129 | 1,005 | 4,663 | |||||||||
676,115 | 674,555 | 688,462 | ||||||||||
Income (loss) before income taxes | (26,614 | ) | 9,277 | 35,370 | ||||||||
Provision for (benefit from) income taxes | (3,605 | ) | 1,742 | 11,215 | ||||||||
Income (loss) from continuing operations | (23,009 | ) | 7,535 | 24,155 | ||||||||
Income from discontinued operations, net of tax | 18,776 | 254 | 18,003 | |||||||||
Net income (loss) | (4,233 | ) | 7,789 | 42,158 | ||||||||
Less: Net income attributable to the noncontrolling interest | (2,071 | ) | (9,178 | ) | (8,108 | ) | ||||||
Net income (loss) attributable to Exterran stockholders | $ | (6,304 | ) | $ | (1,389 | ) | $ | 34,050 | ||||
Basic income (loss) per common share(1): | ||||||||||||
Income (loss) from continuing operations attributable to Exterran common stockholders | $ | (0.37 | ) | $ | (0.03 | ) | $ | 0.24 | ||||
Income from discontinued operations attributable to Exterran common stockholders | 0.28 | 0.01 | 0.27 | |||||||||
Net income (loss) attributable to Exterran common stockholders | $ | (0.09 | ) | $ | (0.02 | ) | $ | 0.51 | ||||
Diluted income (loss) per common share(1): | ||||||||||||
Income (loss) from continuing operations attributable to Exterran common stockholders | $ | (0.37 | ) | $ | (0.03 | ) | $ | 0.23 | ||||
Income from discontinued operations attributable to Exterran common stockholders | 0.28 | 0.01 | 0.25 | |||||||||
Net income (loss) attributable to Exterran common stockholders | $ | (0.09 | ) | $ | (0.02 | ) | $ | 0.48 | ||||
Weighted average common shares outstanding used in income (loss) per common share: | ||||||||||||
Basic | 68,560 | 68,514 | 66,432 | |||||||||
Diluted | 68,560 | 68,514 | 70,406 | |||||||||
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 | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Revenues: | ||||||||||||
North America contract operations | $ | 191,692 | $ | 198,259 | $ | 191,000 | ||||||
International contract operations | 114,104 | 115,250 | 124,355 | |||||||||
Aftermarket services | 82,443 | 90,834 | 96,005 | |||||||||
Fabrication | 261,262 | 279,489 | 312,472 | |||||||||
$ | 649,501 | $ | 683,832 | $ | 723,832 | |||||||
Gross Margin (1): | ||||||||||||
North America contract operations | $ | 113,765 | $ | 117,038 | $ | 108,547 | ||||||
International contract operations | 72,990 | 70,505 | 76,372 | |||||||||
Aftermarket services | 18,670 | 20,663 | 20,495 | |||||||||
Fabrication | 34,337 | 38,635 | 61,071 | |||||||||
Total | $ | 239,762 | $ | 246,841 | $ | 266,485 | ||||||
Selling, General and Administrative | $ | 82,124 | $ | 83,874 | $ | 94,806 | ||||||
% of revenue | 13 | % | 12 | % | 13 | % | ||||||
EBITDA, as Adjusted (1) | $ | 155,060 | $ | 162,453 | $ | 170,648 | ||||||
% of revenue | 24 | % | 24 | % | 24 | % | ||||||
Capital expenditures | $ | 96,073 | $ | 114,397 | $ | 147,529 | ||||||
Less: Proceeds from sale of PP&E | (2,508 | ) | (10,438 | ) | (6,337 | ) | ||||||
Net Capital expenditures | $ | 93,565 | $ | 103,959 | $ | 141,192 | ||||||
Gross Margin Percentage: | ||||||||||||
North America contract operations | 59 | % | 59 | % | 57 | % | ||||||
International contract operations | 64 | % | 61 | % | 61 | % | ||||||
Aftermarket services | 23 | % | 23 | % | 21 | % | ||||||
Fabrication | 13 | % | 14 | % | 20 | % | ||||||
Total | 37 | % | 36 | % | 37 | % | ||||||
Total Available Horsepower (at period end): | ||||||||||||
North America contract operations | 4,267 | 4,246 | 4,125 | |||||||||
International contract operations | 1,209 | 1,216 | 1,268 | |||||||||
Total | 5,476 | 5,462 | 5,393 | |||||||||
Total Operating Horsepower (at period end): | ||||||||||||
North America contract operations | 3,580 | 3,618 | 3,588 | |||||||||
International contract operations | 961 | 938 | 952 | |||||||||
Total | 4,541 | 4,556 | 4,540 | |||||||||
Average Operating Horsepower: | ||||||||||||
North America contract operations | 3,600 | 3,652 | 3,514 | |||||||||
International contract operations | 952 | 948 | 952 | |||||||||
Total | 4,552 | 4,600 | 4,466 | |||||||||
Horsepower Utilization (at period end): | ||||||||||||
North America contract operations | 84 | % | 85 | % | 87 | % | ||||||
International contract operations | 79 | % | 77 | % | 75 | % | ||||||
Total | 83 | % | 83 | % | 84 | % | ||||||
September 30, | June 30, | September 30, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Fabrication Backlog: | ||||||||||||
Compression & accessory | $ | 110,586 | $ | 150,981 | $ | 174,540 | ||||||
Production & processing equipment | 379,187 | 389,037 | 549,961 | |||||||||
Installation | 26,419 | 60,479 | 115,374 | |||||||||
Total | $ | 516,192 | $ | 600,497 | $ | 839,875 | ||||||
Balance Sheet: | ||||||||||||
Debt - Parent level | $ | 680,738 | $ | 707,391 | $ | 737,720 | ||||||
Debt - Exterran Partners, L.P. | 1,395,166 | 1,382,371 | 1,220,013 | |||||||||
Total consolidated debt | $ | 2,075,904 | $ | 2,089,762 | $ | 1,957,733 | ||||||
Exterran stockholders' equity | $ | 1,816,737 | $ | 1,826,533 | $ | 1,793,778 | ||||||
(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, | June 30, | September 30, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information: | ||||||||||||
Net income (loss) | $ | (4,233 | ) | $ | 7,789 | $ | 42,158 | |||||
Income from discontinued operations, net of tax | (18,776 | ) | (254 | ) | (18,003 | ) | ||||||
Income (loss) from continuing operations | (23,009 | ) | 7,535 | 24,155 | ||||||||
Depreciation and amortization | 94,924 | 94,325 | 98,256 | |||||||||
Long-lived asset impairment | 23,708 | 15,420 | 12,385 | |||||||||
Restructuring and other charges | 11,998 | 19,604 | 219 | |||||||||
Investment in non-consolidated affiliates impairment | 33 | — | — | |||||||||
Proceeds from sale of joint venture assets | (5,117 | ) | (5,062 | ) | (4,951 | ) | ||||||
Interest expense | 28,577 | 28,398 | 25,737 | |||||||||
Loss on currency exchange rate remeasurement of intercompany balances | 27,551 | 491 | 2,766 | |||||||||
Expensed acquisitions costs | — | — | 866 | |||||||||
Provision for (benefit from) income taxes | (3,605 | ) | 1,742 | 11,215 | ||||||||
EBITDA, as adjusted (1) | 155,060 | 162,453 | 170,648 | |||||||||
Selling, general and administrative | 82,124 | 83,874 | 94,806 | |||||||||
Equity in income of non-consolidated affiliates | (5,084 | ) | (5,062 | ) | (4,951 | ) | ||||||
Investment in non-consolidated affiliates impairment | (33 | ) | — | — | ||||||||
Proceeds from sale of joint venture assets | 5,117 | 5,062 | 4,951 | |||||||||
Loss on currency exchange rate remeasurement of intercompany balances | (27,551 | ) | (491 | ) | (2,766 | ) | ||||||
Expensed acquisitions costs | — | — | (866 | ) | ||||||||
Other (income) expense, net | 30,129 | 1,005 | 4,663 | |||||||||
Gross Margin (1) | $ | 239,762 | $ | 246,841 | $ | 266,485 | ||||||
Net income (loss) attributable to Exterran stockholders | $ | (6,304 | ) | $ | (1,389 | ) | $ | 34,050 | ||||
Income from discontinued operations, net of tax | (18,776 | ) | (254 | ) | (18,003 | ) | ||||||
Research and Development Tax Credit | (20,677 | ) | — | — | ||||||||
Items, after-tax: | ||||||||||||
Long-lived asset impairment (including the impact on noncontrolling interest) | 12,281 | 9,025 | 6,379 | |||||||||
Restructuring and other charges (including the impact on noncontrolling interest) | 8,039 | 13,278 | 88 | |||||||||
Investment in non-consolidated affiliates impairment | 33 | — | — | |||||||||
Proceeds from sale of joint venture assets | (5,117 | ) | (5,062 | ) | (4,951 | ) | ||||||
Expensed acquisition costs (including the impact on noncontrolling interest) | — | — | 199 | |||||||||
Net income (loss) from continuing operations attributable to Exterran stockholders, excluding items | $ | (30,521 | ) | $ | 15,598 | $ | 17,762 | |||||
Diluted income (loss) from continuing operations attributable to Exterran common stockholders | $ | (0.37 | ) | $ | (0.03 | ) | $ | 0.23 | ||||
Adjustment for items, after-tax, per common share (2) | (0.08 | ) | 0.25 | 0.02 | ||||||||
Diluted net income (loss) from continuing operations attributable to Exterran common stockholders per common share, excluding items (1)(2) | $ | (0.45 | ) | $ | 0.22 | $ | 0.25 | |||||
(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 $0.1 million, $0.4 million and $0.2 million for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively, from our calculation of diluted net income (loss) from continuing operations attributable to Exterran common stockholders per common share, excluding items. |