-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AfTxm4rcMMLJ66gSCC7lXJFFw3/hRB1WLjd+vjO0I1/9Ttm2jdM9A0QOMUfhau7C QZBobLw+org3ui/Q+4GyFA== 0000899243-99-001100.txt : 19990518 0000899243-99-001100.hdr.sgml : 19990518 ACCESSION NUMBER: 0000899243-99-001100 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANOVER COMPRESSOR CO CENTRAL INDEX KEY: 0000909413 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 752344249 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-13071 FILM NUMBER: 99625053 BUSINESS ADDRESS: STREET 1: 12001 NORTH HOUSTON ROSSLYN CITY: HOUSTON STATE: TX ZIP: 77086 BUSINESS PHONE: 2814478787 MAIL ADDRESS: STREET 1: 12001 NORTH HOUSTON ROSSLYN CITY: HOUSTON STATE: TX ZIP: 77086 10-Q 1 1ST QUARTER FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO __________ Commission File Number 1-13071 HANOVER COMPRESSOR COMPANY (Exact name of registrant as specified in its charter) Delaware 75-2344249 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 12001 North Houston Rosslyn Houston, Texas 77086 (Address of principal executive offices) (281) 447-8787 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No As of May 10, 1999 there were 28,639,557 shares of the Company's common stock, $0.001 par value, outstanding. HANOVER COMPRESSOR COMPANY CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) (in thousands of dollars, except for par value and share amounts)
March 31, December 31, 1999 1998 ---- ---- ASSETS Current assets: Cash and cash equivalents $ 7,694 $ 11,503 Accounts receivable: Trade, net 64,407 70,205 Other 13,626 - Inventory 65,547 63,044 Costs and estimated earnings in excess of billings on uncompleted contracts 6,171 7,871 Prepaid taxes 9,239 9,466 Other current assets 4,397 2,967 ------------------- ------------------ Total current assets 171,081 165,056 ------------------- ------------------ Property, plant and equipment: Compression equipment and facilities 463,586 422,896 Land and buildings 16,705 15,044 Transportation and shop equipment 22,642 21,667 Other 14,689 11,119 ------------------- ------------------ 517,622 470,726 Accumulated depreciation (83,773) (78,228) ------------------- ------------------ Net property, plant and equipment 433,849 392,498 ------------------- ------------------ Intangible and other assets 56,339 57,036 ------------------- ------------------ $ 661,269 $ 614,590 =================== ================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 445 $ 444 Accounts payable, trade 24,070 23,361 Accrued liabilities 16,358 17,599 Advance billings 9,093 9,694 Billings on uncompleted contracts in excess of costs and estimated earnings 756 694 ------------------- ------------------ Total current liabilities 50,722 51,792 Long-term debt 193,063 156,943 Other liabilities 42,854 42,858 Deferred income taxes 49,502 46,284 ------------------- ------------------ Total liabilities 336,141 297,877 ------------------- ------------------ Common stockholders' equity: Common stock, $.001 par value; 100 million shares authorized; 28,639,557 and 28,590,472 shares issued and outstanding, respectively 29 29 Additional paid-in capital 269,809 269,005 Notes receivable - employee stockholders (10,865) (10,146) Accumulated other comprehensive income (loss) (157) 152 Retained earnings 69,637 60,998 Treasury stock - 175,547 common shares, at cost (3,325) (3,325) ------------------- ------------------ Total common stockholders' equity 325,128 316,713 ------------------- ------------------ $ 661,269 $ 614,590 =================== ==================
The accompanying notes are an integral part of these condensed consolidated financial statements. HANOVER COMPRESSOR COMPANY CONDENSED CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (unaudited) (in thousands of dollars, except per share amounts)
Three months ended March 31, ------------------- 1999 1998 ---- ---- Revenues: Rentals $ 42,434 $ 31,928 Parts and service 4,631 3,244 Compressor fabrication 7,241 16,284 Production equipment fabrication 5,886 8,958 Gain on sale of assets 3,467 747 Other 785 288 ------------- ------------ 64,444 61,449 ------------- ------------ Expenses: Rentals 13,974 11,186 Parts and service 3,424 2,098 Compressor fabrication 5,657 13,733 Production equipment fabrication 4,442 6,021 Selling, general and administrative 7,397 6,048 Depreciation and amortization 9,213 9,114 Leasing expense 3,510 - Interest expense 3,114 3,085 ------------- ------------ 50,731 51,285 ------------- ------------ Income before income taxes 13,713 10,164 Provision for income taxes 5,074 3,913 ------------- ------------ Net income $ 8,639 $ 6,251 ------------- ------------ Other comprehensive income (loss), net of tax: Foreign currency translation adjustment (309) - ------------- ------------ Comprehensive income $ 8,330 $ 6,251 ============= ============ Net income available to common stockholders $ 8,639 $ 6,251 ============= ============ Weighted average common and common equivalent shares outstanding: Basic 28,436 28,462 ------------- ------------ Diluted 30,197 30,003 ------------- ------------ Earnings per common share: Basic $ 0.30 $ 0.22 ------------- ------------ Diluted $ 0.29 $ 0.21 ------------- ------------
The accompanying notes are an integral part of these condensed consolidated financial statements. HANOVER COMPRESSOR COMPANY CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) (in thousands of dollars)
Three Months ended March 31, --------------- 1999 1998 ---- ---- Cash flows from operating activities: Net income $ 8,639 $ 6,251 Adjustments: Depreciation and amortization 9,213 9,114 Amortization of debt issuance costs and debt discount 181 182 Bad debt expense 154 93 Gain on sale of assets (3,467) (747) Equity in income of nonconsolidated affiliates (475) (17) Deferred income taxes 3,218 3,513 Changes in assets and liabilities: Accounts receivable (7,982) (5,660) Inventory (2,503) (3,632) Costs and estimated earnings in excess of billings on uncompleted contracts 1,762 1,370 Accounts payable and other liabilities (536) 3,933 Advance billings (601) 601 Other (885) (4,541) -------------- -------------- Net cash provided by operating activities 6,718 10,460 -------------- -------------- Cash flows from investing activities: Capital expenditures (62,905) (33,598) Proceeds from sale of fixed assets 16,294 1,830 -------------- -------------- Net cash used in investing activities (46,611) (31,768) -------------- -------------- Cash flows from financing activities: Net borrowings on revolving credit facility 36,120 32,000 Repayments of shareholder notes 34 13 Equity issuance costs - (161) Proceeds from warrant conversions and stock option exercises 51 5 Debt issuance costs - (27) Repayment of long-term debt (105) (530) -------------- -------------- Net cash provided by financing activities 36,100 31,300 -------------- -------------- Effect of exchange rate changes on cash and equivalents (16) - -------------- -------------- Net increase(decrease) in cash and cash equivalents (3,809) 9,992 Cash and cash equivalents at beginning of period 11,503 4,561 -------------- -------------- Cash and cash equivalents at end of period $ 7,694 $ 14,553 ============== ============== Supplemental disclosure of cash flow information: Common stock issued in exchange for note receivable $ 753 Property sold in exchange for note receivable $ 765
The accompanying notes are an integral part of these condensed consolidated financial statements. HANOVER COMPRESSOR COMPANY Notes to Condensed Consolidated Financial Statements 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Hanover Compressor Company (the "Company") included herein have been prepared in accordance with generally accepted accounting principles for interim financial information and the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is the opinion of management that the information furnished includes all adjustments, consisting only of normal recurring adjustments, which are necessary to present fairly the financial position, results of operations, and cash flows of the Company for the periods indicated. The financial statement information included herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K/A for the year ended December 31, 1998. These interim results are not necessarily indicative of results for a full year. EARNINGS PER COMMON SHARE Basic earnings per common share is computed using the weighted average number of shares outstanding for the period. Diluted earnings per common share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to outstanding options and warrants to purchase common stock. Included in diluted shares are common stock equivalents relating to options of 1,390,000 and 1,098,000 and warrants of 370,000 and 443,000 for the three months ended March 31, 1999 and 1998, respectively. 2. INVENTORIES Inventory consisted of the following amounts (in thousands): March 31, December 31, 1999 1998 ---- ---- Parts and supplies $34,775 $32,808 Work in progress 21,226 19,962 Finished goods 9,546 10,274 ------- ------- $65,547 $63,044 ======= ======= 3. SALES AND LEASE BACK OF EQUIPMENT In July, 1998, the Company completed a $200 million sale and lease back of certain compression equipment. The lease back of the equipment is recorded as an operating lease. Under the agreement, the equipment was sold and leased back by the Company for a 5 year period and will continue to be deployed by the Company under its normal operating procedures. At any time, the Company has the option to repurchase the equipment at fair market value. The lease agreement calls for variable quarterly rental payments that vary with the London Interbank Borrowing Rate. The following provides future minimum lease payments under the leasing arrangement exclusive of any guarantee payments (in thousands): 1999 -- $10,500; 2000 -- $14,000; 2001 -- $14,000; 2002 -- $14,000; 2003 -- $7,900. In July, 1998 and in connection with the leasing transaction, the Company entered into two-year swap transactions to manage lease rental exposure with notional amounts of $75,000,000 and $125,000,000 and strike rates of 5.51% and 5.56%, respectively. The differential paid or received on the swap transactions is recognized as an adjustment to leasing expense. The counterparty to this contractual arrangement is a major financial institution with which the Company also has other financial relationships. The Company is exposed to credit loss in the event of nonperformance by this counterparty. However, the Company does not anticipate nonperformance by this party and no material loss would be expected from their nonperformance. The fair market value of these interest rate swaps is based on market quotes and is approximately $2.4 million at March 31, 1999. 4. COMMITMENTS AND CONTINGENCIES In the ordinary course of business the Company is involved in various pending or threatened legal actions. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from these actions will not have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. 5. INDUSTRY SEGMENTS The Company manages its business segments primarily on the type of product or service provided. The Company has four principal industry segments: Rentals - Domestic, Rentals - International, Compressor Fabrication and Production Equipment Fabrication. The Rental segments provide natural gas compression rental and maintenance services to meet specific customer requirements. The Compressor Fabrication segment involves the design, fabrication and sale of natural gas compression units to meet unique customer specifications. The Production Equipment Fabrication segment designs, fabricates and sells equipment utilized in the production of crude oil and natural gas. The Company evaluates the performance of its segments based on segment gross profit. Segment gross profit for each segment includes direct operating expenses. Costs excluded from segment gross profit include selling, general and administrative, depreciation and amortization, leasing, interest and income taxes. Amounts defined as "Other" include sales of assets, results of other insignificant operations, corporate related items primarily related to cash management activities and parts and service operations which are not separately managed. Revenues include sales to external customers and intersegment sales. Intersegment sales are accounted for at cost and are eliminated in consolidation. Identifiable assets are tangible and intangible assets that are identified with the operations of a particular industry segment or which are allocated when used jointly. The following table presents sales and other financial information by industry segment for the quarter ended March 31, 1999 and 1998 (in thousands).
PRODUCTION DOMESTIC INTERNATIONAL COMPRESSOR EQUIPMENT RENTALS RENTALS FABRICATION FABRICATION OTHER ELIMINATIONS CONSOLIDATED -------- ------------- ----------- ----------- ----- ------------ ------------ March 31,1999: Revenues from external customers $ 30,200 $ 12,234 $ 7,241 $ 5,886 $ 8,883 $ 64,444 Intersegment sales 300 18,919 598 6,641 $(26,458) -------- -------- ------- ------- ------- -------- -------- Total revenues 30,200 12,534 26,160 6,484 15,524 (26,458) 64,444 Gross Profit 20,477 7,983 1,584 1,444 5,459 36,947 Identifiable assets 470,751 127,904 35,295 19,625 7,694 661,269 March 31,1998: Revenues from external customers $ 24,409 $ 7,519 $16,284 $ 8,958 $ 4,279 $ 61,449 Intersegment sales 300 13,602 1,415 1,495 $(16,812) -------- -------- ------- ------- ------- -------- -------- Total revenues 24,409 7,819 29,886 10,373 5,774 (16,812) 61,449 Gross Profit 15,696 5,046 2,551 2,937 2,181 28,411
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Special note regarding forward-looking statements Certain matters discussed in this document are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "believes", "anticipates", "expects", "estimates" or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward- looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those anticipated as of the date of this report. The risks and uncertainties include (1) the loss of market share through competition, (2) the introduction of competing technologies by other companies, (3) a prolonged substantial reduction in natural gas prices which would cause a decline in the demand for the Company's compression and oil and gas production equipment, (4) new governmental safety, health and environmental regulations which could require significant capital expenditures by the Company and (5) changes in economic or political conditions in the countries in which the Company operates. The forward-looking statements included herein are only made as of the date of this report and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. GENERAL The Company is the market leader in full service natural gas compression and a leading provider of service, financing, fabrication and equipment for contract natural gas handling applications. Hanover provides this equipment on a rental, contract compression, maintenance and acquisition leaseback basis. Founded in 1990 and publicly held since 1997, the Company's customers include premier independent and major natural gas production, processing and transportation companies thoughout the Western Hemisphere. As of March 31, 1999, the Company operated a fleet of 2,999 compression rental units with an aggregate capacity of approximately 1,146,000 horsepower. RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THREE MONTHS ENDED MARCH 31, 1998 REVENUES The Company's total revenues increased by $3.0 million, or 5%, to $64.4 million during the three months ended March 31, 1999 from $61.4 million during the three months ended March 31, 1998. The increase resulted primarily from growth of the Company's natural gas compressor rental fleet but was offset by decreases in compressor fabrication and production equipment fabrication revenues. Revenues from rentals increased by $10.5 million, or 33%, to $42.4 million during the three months ended March 31, 1999 from $31.9 million during the three months ended March 31, 1998. Domestic revenues from rentals increased by $5.8 million, or 24%, to $30.2 million during the three months ended March 31, 1999 from $24.4 million during the three months ended March 31, 1998. International rental revenues increased by $4.7 million, or 63%, to $12.2 million during the three months ended March 31, 1999 from $7.5 million during the three months ended March 31, 1998. The increase in both domestic and international rental revenue resulted from expansion of the Company's rental fleet. Domestic horsepower in the rental fleet increased by 43% from approximately 676,000 horsepower at March 31, 1998 to approximately 970,000 horsepower at March 31, 1999. In addition, international horsepower increased by 20% from approximately 147,000 horsepower at March 31, 1998 to approximately 176,000 horsepower at March 31, 1999. Revenue from parts and service increased by $1.4 million, or 43% to $4.6 million during the three months ended March 31, 1999 from $3.2 million during the three months ended March 31, 1998 as a result of increased marketing focus on parts and service. Revenues from the fabrication and sale of compressor equipment to third parties decreased by $9.1 million, or 56%, to $7.2 million during the three months ended March 31, 1999 from $16.3 million during the three months ended March 31, 1998. During the three months ended March 31, 1999, an aggregate of approximately 54,000 horsepower of compression equipment was fabricated, 58% of which was placed in the rental fleet and 42% of which was sold to third party customers. During the three months ended March 31, 1998, approximately 55,000 horsepower was fabricated, 43% of which was placed in the Company's rental fleet and 57% of which was sold to third party customers. The Company believes the revenue decrease is reflective of lower energy prices in the energy industry. Revenues from the fabrication and sale of production equipment decreased by $3.1 million, or 34%, to $5.9 million during the three months ended March 31, 1999 from $9.0 million during the three months ended March 31, 1998 primarily due to the decline in well completions resulting from lower energy prices. The Company recognized gains on sales of assets of $3.5 million during the three months ended March 31, 1999 compared to $0.7 million during the three months ended March 31, 1998. The increase is primarily due to the increase in horsepower sold from the rental fleet to a major international customer which exercised its option to purchase equipment it previously rented. During the quarter, the Company sold approximately 17,000 horsepower compared to 3,000 horsepower for the first quarter of 1998. EXPENSES Rentals operating expenses increased by $2.8 million, or 25%, to $14.0 million during the three months ended March 31, 1999 from $11.2 million during the three months ended March 31, 1998. The increase resulted primarily from the corresponding 33% increase in revenues from rentals over the corresponding period in 1998. Operating expense of parts and service increased by $1.3 million, or 63% to $3.4 million due to the corresponding increase in parts and service revenue. Operating expenses of compressor fabrication decreased by $8.1 million, or 59%, to $5.7 million during the three months ended March 31, 1999 from $13.8 million during the three months ended March 31, 1998 commensurate with the corresponding decrease in compressor fabrication revenue. The operating expenses attributable to production equipment fabrication decreased by $1.6 million, or 26%, to $4.4 million during the three months ended March 31, 1999 from $6.0 million during the three months ended March 31, 1998, resulting from the decrease in revenue from the production equipment fabrication as previously discussed. Selling, general and administrative expenses increased $1.4 million, or 22%, to $7.4 million during the three months ended March 31, 1999 from $6.0 million during the three months ended March 31, 1998. The increase resulted from the increased activity in the Company's rentals and parts and service business segments as described above. The Company believes that earnings before interest, leasing expense, taxes, depreciation and amortization (EBITDA) is a standard measure of financial performance used for valuing companies in the compression rental industry. EBITDA is a useful common yardstick as it measures the capacity of companies to generate cash without reference to how they are capitalized, how they account for significant non-cash charges for depreciation and amortization associated with assets used in the business (the bulk of which are long-lived assets in the compression industry), or what their tax attributes may be. Additionally, since EBITDA is a basic source of funds not only for growth but to service indebtedness, lenders use EBITDA as a primary determinant of borrowing capacity. EBITDA for the three months ended March 31, 1999 increased 32% to $29.6 million from $22.4 million for the three months ended March 31, 1998. Depreciation and amortization increased by $0.1 million to $9.2 million during the three months ended March 31, 1999 compared to $9.1 million during the three months ended March 31, 1998. Interest expense was $3.1 million during the three months ended March 31, 1999 and 1998. The Company incurred leasing expense of $ 3.5 million during the three months ended March 31, 1999, resulting from the Equipment Lease entered into July, 1998. INCOME TAXES The provision for income taxes increased by $1.2 million, or 30%, to $5.1 million during the three months ended March 31, 1999 from $3.9 million during the three months ended March 31, 1998. The increase resulted primarily from the corresponding increase in income before taxes. The average effective income tax rates during the three months ended March 31, 1999 and 1998 were 37% and 38%, respectively. NET INCOME Net income increased $2.3 million, or 38%, to $8.6 million during the three months ended March 31, 1999 from $6.3 million during the three months ended March 31, 1998 for the reasons discussed above. LIQUIDITY AND CAPITAL RESOURCES The Company has historically utilized internally generated funds and equity and debt financing to finance the growth of its compressor fleet and maintain sufficient compression and production equipment inventory. Capital expenditures for property, plant and equipment were $62.9 million for the three months ended March 31, 1999 as compared to $33.6 million for the three-month period ended March 31, 1998. Bank borrowings were $36.1 million for the three months ended March 31, 1999 as compared to $32.0 million for the three months ended March 31, 1998, and were used to finance rental fleet expansion. In 1996, the Company issued Subordinated Notes in the aggregate principal amount of $23.5 million in 1996, bearing interest at 7%, payable semi-annually, with principal due on December 31, 2000. As of March 31, 1999 the Company had approximately $37 million of credit capacity remaining on its $200 million Bank Credit Agreement. The Company anticipates arranging additional sources of debt financing during 1999 to fund the anticipated level of capital expenditures. Impact of the Year 2000 Many computer systems, software products and other equipment utilize microprocessors in which the year is represented by only two digit entries, as "19" is inferred to be the century. Date sensitive software may interpret a date using "00" as the year 1900 rather than the year 2000, which could disrupt operations due to systems failures or software miscalculations. These date fields need to accept four digit entries to distinguish dates beginning in the year 2000. Issues related to this situation are commonly referred to as "Year 2000 issues". Primarily to accommodate its growth, the Company has installed or plans to install various modifications or upgrade existing computer software and hardware which include, among others things, an accommodation of Year 2000 issues. The costs associated with the software modifications are being incurred in the ordinary course of business and are not expected to be material in relation to either future operating results, cash flows or financial condition. The Company expects that all hardware and software upgrades will be completed in mid-1999. The Company has reviewed its machinery and equipment operation and believes that none of its significant machinery and equipment is dependent on microprocessors which may be materially affected by Year 2000 issues. The Company has initiated communications with all of its significant customers, suppliers and vendors to ensure that those parties have appropriate plans to address Year 2000 issues where they may otherwise impact the operations of the Company. There is inherent uncertainty related to Year 2000 issues due to the possibility of failures by third party customers, suppliers and vendors, which cannot be anticipated. The Company cannot guarantee the systems of other companies on which it relies will be converted timely and will not have a material adverse effect on the Company's operations, cash flows or financial position. The Company has not developed contingency plans to address any possible operation disruptions resulting from third party failures but will do so by the end of 1999. PART II. OTHER INFORMATION Item 6: Exhibits and reports on Form 8-K (a) Exhibits 27 Financial Data Schedule (b) Reports submitted on Form 8-K; none. All other items specified by Part II of this report are inapplicable and have been omitted. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HANOVER COMPRESSOR COMPANY Date: May 14, 1999 By: /s/ Michael J. McGhan - ------------------------- Michael J. McGhan President and Chief Executive Officer Date: May 14, 1999 By: /s/ Curtis A. Bedrich - ------------------------- Curtis A. Bedrich Chief Financial Officer EX-27 2 FINANCIAL DATA SCHEDULE
5 THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE HANOVER COMPRESSOR COMPANY FINANCIAL STATEMENTS AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1999 MAR-31-1999 7,694 0 79,393 1,360 65,547 171,081 517,622 83,773 661,269 50,722 0 0 0 269,838 55,290 661,269 13,127 64,444 10,099 47,617 0 0 3,114 13,713 5,074 8,639 0 0 0 8,639 0.30 0.29
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