Exhibit 99.1
Exterran Holdings and Exterran Partners Report
First Quarter 2011 Results
HOUSTON, May 5, 2011 – Exterran Holdings, Inc. (NYSE: EXH) and Exterran Partners, L.P. (NASDAQ: EXLP) today reported financial results for the first quarter 2011.
Exterran Holdings, Inc. Financial Results
Exterran Holdings reported a net loss attributable to Exterran stockholders for the first quarter 2011 of $30.0 million, or $0.48 per diluted share, compared to net loss attributable to Exterran stockholders for the fourth quarter 2010 of $118.0 million, or $1.90 per diluted share, and net income attributable to Exterran stockholders for the first quarter 2010 of $16.7 million, or $0.27 per diluted share.
Net loss from continuing operations attributable to Exterran stockholders for the first quarter 2011 was $27.9 million, or $0.45 per diluted share. Net loss from continuing operations attributable to Exterran stockholders, excluding charges, was $32.0 million, or $0.51 per diluted share, for the fourth quarter 2010 and $1.5 million, or $0.02 per diluted share, for the first quarter 2010.
Revenue was $618.5 million for the first quarter 2011, compared to $615.8 million for the fourth quarter 2010 and $576.3 million for the first quarter 2010. EBITDA, as adjusted (as defined below), was $94.3 million for the first quarter 2011, compared to $103.8 million for the fourth quarter 2010 and $123.9 million for the first quarter 2010.
Ernie L. Danner, Exterran Holdings’ President and Chief Executive Officer, said, “Revenue increased on a sequential and year-over-year basis driven by strong industry activity in North America, particularly around shale play development. We expect North America activity to remain strong through 2011 and international demand for our products and services to increase, but the timing of that increase is difficult to predict. Overall, we believe we are well positioned to benefit from infrastructure development opportunities around the world with our comprehensive, diversified product and service set and geographic footprint. We were also able to enhance our capital position during the first quarter as Exterran Holdings sold 5.9 million common units representing limited partner interests in Exterran Partners in March 2011 for net proceeds to Exterran Holdings of approximately $162 million.”
Exterran Partners, L.P. Financial Results
Exterran Partners reported revenue of $68.7 million for the first quarter 2011, compared to $68.4 million for the fourth quarter 2010 and $52.7 million for the first quarter 2010. Net income was $0.2 million for the first quarter 2011, or a loss of $0.01 per diluted limited partner unit, compared to a net loss of $23.5 million, or a loss of $0.73 per diluted limited partner unit, for the fourth quarter 2010, and net income of $1.4 million, or net earnings of $0.05 per diluted limited partner unit, for the first quarter 2010. Net income for the fourth quarter 2010 was $1.2 million, or $0.02 per diluted limited partner unit, excluding a $24.7 million non-cash fleet impairment charge.
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Exterran Partners’ EBITDA, as further adjusted (as defined below), totaled $31.2 million for the first quarter 2011, compared to $31.4 million for the fourth quarter 2010 and $22.4 million for the first quarter 2010. Distributable cash flow (as defined below) totaled $21.1 million for the first quarter 2011, compared to $20.4 million for the fourth quarter 2010 and $14.4 million for the first quarter 2010.
“First quarter highlights for Exterran Partners included a solid operating performance and 1.30 times distributable cash flow coverage,” commented Mr. Danner, Chairman, President and Chief Executive Officer of Exterran Partners’ managing general partner. “In March 2011, we obtained an increase in the total commitment under Exterran Partners’ credit facility of $150 million to $700 million, which we believe will enhance our ability to execute our growth strategy and deliver long-term value to our unitholders.”
For the first quarter of 2011, Exterran Partners’ quarterly cash distribution is $0.4775 per limited partner unit, or $1.91 per limited partner unit on an annualized basis. The first quarter 2011 distribution was $0.005 higher than the fourth quarter 2010 distribution of $0.4725 per limited partner unit and $0.015 higher than the first quarter 2010 distribution of $0.4625 per limited partner unit.
The cash distribution to be received by Exterran Holdings based upon its unit ownership and general partner interest in Exterran Partners is approximately $6.9 million for the first quarter 2011.
Conference Call Details
Exterran Holdings, Inc. (NYSE: EXH) and Exterran Partners, L.P. (NASDAQ: EXLP) announce the following schedule and teleconference information for their first quarter 2011 earnings release:
· | Teleconference: Thursday, May 5, 2011 at 11:00 a.m. Eastern Time, 10:00 a.m. Central Time. To access the call, United States and Canadian participants should dial 800-446-1671. International participants should dial 847-413-3362 at least 10 minutes before the scheduled start time. Please reference Exterran conference call number 29659589. |
· | 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, May 5, 2011, until 2:00 p.m. Eastern Time on Thursday, May 12, 2011. To listen to the replay, please dial 888-843-7419 in the United States and Canada, or 630-652-3042 internationally, and enter access code 29659589. |
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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 and other charges.
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, other charges, and non-cash selling, general and administrative (“SG&A”) costs 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.
With respect to Exterran Partners, distributable cash flow, a non-GAAP measure, is defined as net income (loss) plus depreciation and amortization expense, impairment charges, non-cash SG&A costs, 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 (excluding amortization of deferred financing fees and costs incurred to early terminate interest rate swaps) and maintenance capital expenditures, and excluding gains/losses on asset sales and other charges.
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 has over 10,000 employees and operates in approximately 30 countries.
Exterran Partners, L.P. provides natural gas contract operations services to customers throughout the United States. Exterran Holdings owns an equity interest in Exterran Partners.
For more information, visit www.exterran.com.
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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 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 Companies’ expectations regarding future economic and market conditions; the Companies’ financial and operational outlook and ability to fulfill that outlook; Exterran Holdings’ intention to continue to offer the balance of its U.S. contract operations business to Exterran Partners; and Exterran Partners’ commitment to growing and increasing distributions.
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 execute larger projects; changes in political or economic conditions in key operating markets, including international markets; changes in safety, health, environmental and other regulations; 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, 2010, Exterran Partners’ Annual Report on Form 10-K for the year ended December 31, 2010, 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.
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EXTERRAN HOLDINGS, INC. | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Revenues: | ||||||||||||
North America contract operations | $ | 151,054 | $ | 151,383 | $ | 152,627 | ||||||
International contract operations | 105,681 | 112,438 | 109,740 | |||||||||
Aftermarket services | 81,698 | 86,063 | 70,323 | |||||||||
Fabrication | 280,046 | 265,896 | 243,618 | |||||||||
618,479 | 615,780 | 576,308 | ||||||||||
Costs and expenses: | ||||||||||||
Cost of sales (excluding depreciation and amortization expense): | ||||||||||||
North America contract operations | 80,509 | 76,219 | 71,375 | |||||||||
International contract operations | 40,966 | 44,693 | 40,855 | |||||||||
Aftermarket services | 72,538 | 75,688 | 56,612 | |||||||||
Fabrication | 239,291 | 229,735 | 196,873 | |||||||||
Selling, general and administrative | 91,281 | 91,809 | 84,051 | |||||||||
Depreciation and amortization | 90,478 | 105,012 | 91,775 | |||||||||
Long-lived asset impairment | - | 142,205 | 1,707 | |||||||||
Interest expense | 37,170 | 37,557 | 32,934 | |||||||||
Equity in loss of non-consolidated affiliates | - | 261 | - | |||||||||
Other (income) expense, net | (414 | ) | (6,154 | ) | (2,183 | ) | ||||||
651,819 | 797,025 | 573,999 | ||||||||||
Income (loss) before income taxes | (33,340 | ) | (181,245 | ) | 2,309 | |||||||
Benefit from income taxes | (5,014 | ) | (55,708 | ) | (3,999 | ) | ||||||
Income (loss) from continuing operations | (28,326 | ) | (125,537 | ) | 6,308 | |||||||
Income (loss) from discontinued operations, net of tax | (2,138 | ) | (2,734 | ) | 10,425 | |||||||
Net income (loss) | (30,464 | ) | (128,271 | ) | 16,733 | |||||||
Less: net (income) loss attributable to the noncontrolling interest | 434 | 10,243 | (71 | ) | ||||||||
Net income (loss) attributable to Exterran stockholders | $ | (30,030 | ) | $ | (118,028 | ) | $ | 16,662 | ||||
Basic income (loss) per common share: | ||||||||||||
Income (loss) from continuing operations attributable to Exterran stockholders | $ | (0.45 | ) | $ | (1.85 | ) | $ | 0.10 | ||||
Income (loss) from discontinued operations attributable to Exterran stockholders | (0.03 | ) | (0.05 | ) | 0.17 | |||||||
Net income (loss) attributable to Exterran stockholders | $ | (0.48 | ) | $ | (1.90 | ) | $ | 0.27 | ||||
Diluted income (loss) per common share: | ||||||||||||
Income (loss) from continuing operations attributable to Exterran stockholders | $ | (0.45 | ) | $ | (1.85 | ) | $ | 0.10 | ||||
Income (loss) from discontinued operations attributable to Exterran stockholders | (0.03 | ) | (0.05 | ) | 0.17 | |||||||
Net income (loss) attributable to Exterran stockholders | $ | (0.48 | ) | $ | (1.90 | ) | $ | 0.27 | ||||
Weighted average common and equivalent shares outstanding: | ||||||||||||
Basic | 62,418 | 62,164 | 61,836 | |||||||||
Diluted | 62,418 | 62,164 | 62,546 | |||||||||
Income (loss) attributable to Exterran stockholders: | ||||||||||||
Income (loss) from continuing operations | $ | (27,892 | ) | $ | (115,294 | ) | $ | 6,237 | ||||
Income (loss) from discontinued operations, net of tax | (2,138 | ) | (2,734 | ) | 10,425 | |||||||
Net income (loss) attributable to Exterran stockholders | $ | (30,030 | ) | $ | (118,028 | ) | $ | 16,662 |
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EXTERRAN HOLDINGS, INC. | ||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||||||||||
(In thousands, except percentages) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Revenues: | ||||||||||||
North America contract operations | $ | 151,054 | $ | 151,383 | $ | 152,627 | ||||||
International contract operations | 105,681 | 112,438 | 109,740 | |||||||||
Aftermarket services | 81,698 | 86,063 | 70,323 | |||||||||
Fabrication | 280,046 | 265,896 | 243,618 | |||||||||
Total | $ | 618,479 | $ | 615,780 | $ | 576,308 | ||||||
Gross Margin (1): | ||||||||||||
North America contract operations | $ | 70,545 | $ | 75,164 | $ | 81,252 | ||||||
International contract operations | 64,715 | 67,745 | 68,885 | |||||||||
Aftermarket services | 9,160 | 10,375 | 13,711 | |||||||||
Fabrication | 40,755 | 36,161 | 46,745 | |||||||||
Total | $ | 185,175 | $ | 189,445 | $ | 210,593 | ||||||
Selling, General and Administrative | $ | 91,281 | $ | 91,809 | $ | 84,051 | ||||||
% of Revenues | 15 | % | 15 | % | 15 | % | ||||||
EBITDA, as adjusted (1) | $ | 94,308 | $ | 103,790 | $ | 123,862 | ||||||
% of Revenues | 15 | % | 17 | % | 21 | % | ||||||
Capital Expenditures | $ | 51,412 | $ | 67,528 | $ | 47,861 | ||||||
Less: Proceeds from Sale of PP&E | (27,499 | ) | (5,695 | ) | (5,386 | ) | ||||||
Net Capital Expenditures | $ | 23,913 | $ | 61,833 | $ | 42,475 | ||||||
Gross Margin Percentage: | ||||||||||||
North America contract operations | 47 | % | 50 | % | 53 | % | ||||||
International contract operations | 61 | % | 60 | % | 63 | % | ||||||
Aftermarket services | 11 | % | 12 | % | 19 | % | ||||||
Fabrication | 15 | % | 14 | % | 19 | % | ||||||
Total | 30 | % | 31 | % | 37 | % | ||||||
Total Available Horsepower (at period end): | ||||||||||||
North America contract operations | 3,704 | 3,701 | 4,293 | |||||||||
International contract operations | 1,197 | 1,200 | 1,232 | |||||||||
Total | 4,901 | 4,901 | 5,525 | |||||||||
Total Operating Horsepower (at period end): | ||||||||||||
North America contract operations | 2,844 | 2,837 | 2,838 | |||||||||
International contract operations | 980 | 981 | 1,022 | |||||||||
Total | 3,824 | 3,818 | 3,860 | |||||||||
Total Operating Horsepower (average): | ||||||||||||
North America contract operations | 2,841 | 2,826 | 2,855 | |||||||||
International contract operations | 979 | 1,007 | 1,026 | |||||||||
Total | 3,820 | 3,833 | 3,881 | |||||||||
Horsepower Utilization (at period end): | ||||||||||||
North America contract operations | 77 | % | 77 | % | 66 | % | ||||||
International contract operations | 82 | % | 82 | % | 83 | % | ||||||
Total | 78 | % | 78 | % | 70 | % | ||||||
Fabrication Backlog: | ||||||||||||
Compression & accessory | $ | 250,123 | $ | 220,254 | $ | 276,966 | ||||||
Production & processing equipment | 500,844 | 483,275 | 488,204 | |||||||||
Total | $ | 750,967 | $ | 703,529 | $ | 765,170 | ||||||
Debt to Capitalization: | ||||||||||||
Debt | $ | 1,739,583 | $ | 1,897,147 | $ | 2,143,945 | ||||||
Exterran stockholders' equity | 1,679,860 | 1,609,448 | 1,654,724 | |||||||||
Capitalization | $ | 3,419,443 | $ | 3,506,595 | $ | 3,798,669 | ||||||
Total Debt to Capitalization | 50.9 | % | 54.1 | % | 56.4 | % | ||||||
(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. |
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EXTERRAN HOLDINGS, INC. | ||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information: | ||||||||||||
Net income (loss) | $ | (30,464 | ) | $ | (128,271 | ) | $ | 16,733 | ||||
Income (loss) from discontinued operations, net of tax | (2,138 | ) | (2,734 | ) | 10,425 | |||||||
Income (loss) from continuing operations | (28,326 | ) | (125,537 | ) | 6,308 | |||||||
Depreciation and amortization | 90,478 | 105,012 | 91,775 | |||||||||
Long-lived asset impairment | - | 142,205 | 1,707 | |||||||||
Investment in non-consolidated affiliates impairment | - | 261 | - | |||||||||
Interest expense | 37,170 | 37,557 | 32,934 | |||||||||
Gain on sale of our investment in the subsidiary that owns the barge mounted processing plant and | ||||||||||||
other related assets used on the Cawthorne Channel Project | - | - | (4,863 | ) | ||||||||
Benefit from income taxes | (5,014 | ) | (55,708 | ) | (3,999 | ) | ||||||
EBITDA, as adjusted (1) | 94,308 | 103,790 | 123,862 | |||||||||
Selling, general and administrative | 91,281 | 91,809 | 84,051 | |||||||||
Equity in loss of non-consolidated affiliates | - | 261 | - | |||||||||
Investment in non-consolidated affiliates impairment | - | (261 | ) | - | ||||||||
Gain on sale of a loan and our interest in an entity related to the Cawthorne Channel Project | - | - | 4,863 | |||||||||
Other (income) expense, net | (414 | ) | (6,154 | ) | (2,183 | ) | ||||||
Gross Margin (1) | $ | 185,175 | $ | 189,445 | $ | 210,593 | ||||||
Net income (loss) attributable to Exterran stockholders | $ | (30,030 | ) | $ | (118,028 | ) | $ | 16,662 | ||||
(Income) loss from discontinued operations | 2,138 | 2,734 | (10,425 | ) | ||||||||
Charges, after-tax: | ||||||||||||
Long-lived asset impairment (including the impact on minority interest) | - | 83,080 | 1,075 | |||||||||
Investment in non-consolidated affiliates impairment | - | 261 | - | |||||||||
Gain on sale of a loan and our interest in an entity related to the Cawthorne Channel Project | - | - | (8,807 | ) | ||||||||
Net loss from continuing operations attributable to Exterran stockholders, excluding charges | $ | (27,892 | ) | $ | (31,953 | ) | $ | (1,495 | ) | |||
Diluted Income (loss) from continuing operations attributable to Exterran stockholders per common share | $ | (0.45 | ) | $ | (1.85 | ) | $ | 0.10 | ||||
Adjustment for charges, after-tax, per common share | - | 1.34 | (0.12 | ) | ||||||||
Diluted net loss from continuing operations attributable to Exterran stockholders per common share, | ||||||||||||
excluding charges (1) | $ | (0.45 | ) | $ | (0.51 | ) | $ | (0.02 | ) | |||
(1) Management believes disclosure of EBITDA, as adjusted, diluted net income (loss) from continuing operations 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 net income (loss) from continuing operations attributable to Exterran stockholders per common share, 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. |
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EXTERRAN PARTNERS, L.P. | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(In thousands, except per unit amounts) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Revenue | $ | 68,729 | $ | 68,415 | $ | 52,710 | ||||||
Costs and expenses: | ||||||||||||
Cost of sales (excluding depreciation and amortization) | 37,052 | 35,446 | 25,851 | |||||||||
Depreciation and amortization | 14,149 | 15,180 | 11,878 | |||||||||
Long-lived asset impairment | - | 24,652 | 231 | |||||||||
Selling, general and administrative | 10,216 | 10,112 | 7,695 | |||||||||
Interest expense | 7,075 | 6,601 | 5,692 | |||||||||
Other (income) expense, net | (221 | ) | (241 | ) | (236 | ) | ||||||
Total costs and expenses | 68,271 | 91,750 | 51,111 | |||||||||
Income (loss) before income taxes | 458 | (23,335 | ) | 1,599 | ||||||||
Income tax expense | 235 | 162 | 173 | |||||||||
Net income (loss) | $ | 223 | $ | (23,497 | ) | $ | 1,426 | |||||
General partner interest in net income (loss) | $ | 572 | $ | 49 | $ | 340 | ||||||
Limited partner interest in net income (loss) | $ | (349 | ) | $ | (23,546 | ) | $ | 1,086 | ||||
Weighted average limited partners' units outstanding: | ||||||||||||
Basic | 32,107 | 32,091 | 23,871 | |||||||||
Diluted | 32,107 | 32,091 | 23,876 | |||||||||
Earnings (loss) per limited partner unit: | ||||||||||||
Basic | $ | (0.01 | ) | $ | (0.73 | ) | $ | 0.05 | ||||
Diluted | $ | (0.01 | ) | $ | (0.73 | ) | $ | 0.05 |
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EXTERRAN PARTNERS, L.P. | ||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||||||||||
(In thousands, except per unit amounts and percentages) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Revenue | $ | 68,729 | $ | 68,415 | $ | 52,710 | ||||||
Gross Margin, as adjusted (1) | $ | 38,554 | $ | 38,786 | $ | 29,653 | ||||||
EBITDA, as further adjusted (1) | $ | 31,175 | $ | 31,427 | $ | 22,384 | ||||||
% of Revenue | 45 | % | 46 | % | 42 | % | ||||||
Capital Expenditures | $ | 6,891 | $ | 6,535 | $ | 2,570 | ||||||
Less: Proceeds from Sale of Compression Equipment | (1,036 | ) | (547 | ) | (530 | ) | ||||||
Net Capital Expenditures | $ | 5,855 | $ | 5,988 | $ | 2,040 | ||||||
Gross Margin percentage, as adjusted | 56 | % | 57 | % | 56 | % | ||||||
Distributable cash flow (2) | $ | 21,064 | $ | 20,372 | $ | 14,397 | ||||||
Distributions per Limited Partner Unit | $ | 0.4775 | $ | 0.4725 | $ | 0.4625 | ||||||
Distribution to All Unitholders, including Incentive Distributions | $ | 16,243 | $ | 16,003 | $ | 11,589 | ||||||
Distributable Cash Flow Coverage | 1.30 | x | 1.27 | x | 1.24 | x | ||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Debt | $ | 450,000 | $ | 449,000 | $ | 430,500 | ||||||
Total Partners' Capital | $ | 348,692 | $ | 350,737 | $ | 253,057 | ||||||
Total Debt to Capitalization | 56 | % | 56 | % | 63 | % | ||||||
�� | ||||||||||||
(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. |
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EXTERRAN PARTNERS, L.P. | ||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||||||||||
(In thousands, except per unit amounts) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information: | ||||||||||||
Net income (loss) | $ | 223 | $ | (23,497 | ) | $ | 1,426 | |||||
Income tax expense | 235 | 162 | 173 | |||||||||
Depreciation and amortization | 14,149 | 15,180 | 11,878 | |||||||||
Long-lived asset impairment | - | 24,652 | 231 | |||||||||
Cap on operating and selling, general and administrative | ||||||||||||
costs provided by Exterran Holdings ("EXH") | 9,129 | 7,780 | 2,794 | |||||||||
Non-cash selling, general and administrative costs | 364 | 549 | 190 | |||||||||
Interest expense, net of interest income | 7,075 | 6,601 | 5,692 | |||||||||
EBITDA, as further adjusted (1) | 31,175 | 31,427 | 22,384 | |||||||||
Cash selling, general and administrative costs | 9,852 | 9,563 | 7,505 | |||||||||
Less: cap on selling, general and administrative costs provided by EXH | (2,252 | ) | (1,963 | ) | - | |||||||
Less: other (income) expense, net | (221 | ) | (241 | ) | (236 | ) | ||||||
Gross Margin, as adjusted (1) | $ | 38,554 | $ | 38,786 | $ | 29,653 | ||||||
Other income (expense), net | 221 | 241 | 236 | |||||||||
Less: Gain on sale of compression equipment (in Other (income) expense, net) | (212 | ) | (242 | ) | (247 | ) | ||||||
Less: Cash interest expense | (4,207 | ) | (4,469 | ) | (5,420 | ) | ||||||
Less: Cash selling, general and administrative, as adjusted for | ||||||||||||
cost caps provided by EXH | (7,600 | ) | (7,600 | ) | (7,505 | ) | ||||||
Less: Income tax expense | (235 | ) | (162 | ) | (173 | ) | ||||||
Less: Maintenance capital expenditures | (5,457 | ) | (6,182 | ) | (2,147 | ) | ||||||
Distributable cash flow (2) | $ | 21,064 | $ | 20,372 | $ | 14,397 | ||||||
Cash flows from operating activities | $ | 15,887 | $ | 6,585 | $ | 15,773 | ||||||
Provision for doubtful accounts | (33 | ) | (700 | ) | - | |||||||
Cap on operating and selling, general and administrative costs provided by EXH | 9,129 | 7,780 | 2,794 | |||||||||
Maintenance capital expenditures | (5,457 | ) | (6,182 | ) | (2,147 | ) | ||||||
Change in current assets/liabilities | 1,538 | 12,889 | (2,023 | ) | ||||||||
Distributable cash flow (2) | $ | 21,064 | $ | 20,372 | $ | 14,397 | ||||||
Net income (loss) | $ | 223 | $ | (23,497 | ) | $ | 1,426 | |||||
Long-lived asset impairment | - | 24,652 | 231 | |||||||||
Net income, excluding charge | $ | 223 | $ | 1,155 | $ | 1,657 | ||||||
Diluted earnings (loss) per limited partner unit | $ | (0.01 | ) | $ | (0.73 | ) | $ | 0.05 | ||||
Adjustment for charge per limited partner unit | - | 0.75 | - | |||||||||
Diluted earnings (loss) per limited partner unit, excluding charge (1) | $ | (0.01 | ) | $ | 0.02 | $ | 0.05 | |||||
(1) Management believes disclosure of EBITDA, as further adjusted, diluted earnings (loss) 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 (loss) 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) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Total Available Horsepower (at period end) (1) | 1,590 | 1,572 | 1,318 | |||||||||
Total Operating Horsepower (at period end) (1) | 1,384 | 1,384 | 1,060 | |||||||||
Average Operating Horsepower | 1,387 | 1,364 | 1,060 | |||||||||
Horsepower Utilization: | ||||||||||||
Spot (at period end) | 87 | % | 88 | % | 80 | % | ||||||
Average | 88 | % | 82 | % | 81 | % | ||||||
Combined U.S. Contract Operations Horsepower of Exterran Holdings | ||||||||||||
and Exterran Partners covered by contracts converted to service | ||||||||||||
agreements (at period end) | 1,999 | 1,944 | 1,805 | |||||||||
Available Horsepower: | ||||||||||||
Total Available U.S. Contract Operations Horsepower of Exterran Holdings | ||||||||||||
and Exterran Partners (at period end) | 3,611 | 3,607 | 4,185 | |||||||||
% of U.S. Contract Operations Available Horsepower of Exterran | ||||||||||||
Holdings and Exterran Partners covered by contracts converted | ||||||||||||
to service agreements (at period end) | 55 | % | 54 | % | 43 | % | ||||||
Operating Horsepower: | ||||||||||||
Total Operating U.S. Contract Operations Horsepower of Exterran Holdings | ||||||||||||
and Exterran Partners (at period end) | 2,786 | 2,779 | 2,785 | |||||||||
% of U.S. Contract Operations Operating Horsepower of Exterran | ||||||||||||
Holdings and Exterran Partners covered by contracts converted | ||||||||||||
to service agreements (at period end) | 72 | % | 70 | % | 65 | % | ||||||
(1) Includes compressor units leased from Exterran Holdings with an aggregate horsepower (in thousands) of 304, 278 and 183 at March 31, 2011, December 31, 2010 and March 31, 2010, respectively. Excludes compressor units leased to Exterran Holdings with an aggregate horsepower (in thousands) of 27, 18 and 17 at March 31, 2011, December 31, 2010 and March 31, 2010, respectively. |