Exterran: Q2 Results – EBITDA $162m

Exterran Holdings, Inc. today reported EBITDA, as adjusted (as defined below), of $162.5 million for the second quarter 2015, compared to $182.0 million for the first quarter 2015 and $161.1 million for the second quarter 2014.

– EBITDA, as adjusted, of $162 million for the quarter, compared to $161 million for the second quarter 2014

– Net income from continuing operations attributable to Exterran common stockholders of $0.22 per diluted share, excluding items, for the quarter

Revenue was $683.8 million for the second quarter 2015, compared to $729.1 million for the first quarter 2015 and $739.3 million for the second quarter 2014.

Fabrication backlog was $600.5 million at June 30, 2015, compared to $730.4 million at March 31, 2015 and $818.1 million at June 30, 2014. Fabrication bookings were $149.6 million for the second quarter 2015, compared to $96.4 million for the first quarter 2015 and $471.6 million for the second quarter 2014.

Exterran Holdings declared a dividend of $0.15 per share of common stock, a rate of $0.60 per share on an annualized basis, which will be paid on August 17, 2015 to stockholders of record at the close of business on August 10, 2015.

“In the second quarter 2015, we achieved solid operating performance across our businesses. Due to their production-oriented focus, our contract operations and aftermarket services businesses in the United States and international markets demonstrated stability compared to businesses that are more closely tied to drilling and completion activity. In our fabrication business, revenues and gross margins held up well given industry conditions while bookings improved over first quarter levels,” said Brad Childers, Exterran Holdings’ President and Chief Executive Officer.

“We remain committed to enhancing shareholder value through the planned separation of our international services and global fabrication businesses and expect to complete this transaction as soon as we secure reasonable financing,” added Childers. “In the meantime, our financial position is solid and we have ample liquidity, including availability under our credit facilities of approximately $450 million at Exterran Holdings and approximately $360 million at Exterran Partners, at June 30, 2015.”

Net income (loss) from continuing operations attributable to Exterran stockholders, excluding items, for all periods excludes the benefit of proceeds from the two previously announced sales of Exterran Holdings’ previously-nationalized Venezuelan assets, the benefit of which was $5.1 million for the second quarter 2015, compared to $23.7 million for the first quarter 2015 and $23.0 million for the second quarter 2014. At June 30, 2015, Exterran was still due to receive $116 million of principal payments from the sales of these assets. In July 2015, Exterran received an installment payment of $18.9 million related to the sale of its Venezuelan wholly-owned assets. As a result, this income will be recognized in the third quarter 2015 when the proceeds were received.

Net income from continuing operations attributable to Exterran stockholders, excluding items, for the second quarter 2015 was $15.6 million, or $0.22 per diluted common share. In addition to excluding the benefit related to our nationalized Venezuelan assets discussed above, these amounts also exclude restructuring and other charges of $19.6 million, including costs associated with the planned spin-off, that primarily consisted of legal, consulting, audit and professional fees and non-cash write-down of inventory, and non-cash long-lived asset impairment charges of $15.4 million related to our contract operations businesses. Net income from continuing operations attributable to Exterran stockholders, excluding items, was $18.6 million, or $0.27 per diluted common share, for the first quarter 2015, and net loss from continuing operations attributable to Exterran stockholders, excluding items, was $4.7 million, or $0.07 per diluted common share, for the second quarter 2014.

Net loss attributable to Exterran stockholders was $1.4 million, or $0.02 per diluted common share, for the second quarter 2015. Net income attributable to Exterran stockholders was $32.1 million, or $0.46 per diluted common share, for the first quarter 2015, and $12.4 million, or $0.19 per diluted common share, for the second quarter 2014.

The cash distribution to be received by Exterran Holdings based upon its limited partner and general partner interests in Exterran Partners, L.P. is $18.5 million for the second quarter 2015, compared to $15.6 million for the first quarter 2015 and $14.0 million for the second quarter 2014.