- EBITDA, as further adjusted, of $83
million for the quarter
- Distribution coverage of 1.24x for
the quarter
Exterran Partners, L.P. (NASDAQ:EXLP) today reported EBITDA, as
further adjusted (without the benefit of cost caps) (as defined
below), of $83.2 million for the second quarter 2015, compared to
$78.7 million for the first quarter 2015 and $67.2 million for the
second quarter 2014. Distributable cash flow (without the benefit
of cost caps) (as defined below) was $48.3 million for the second
quarter 2015, compared to $51.0 million for the first quarter 2015
and $41.0 million for the second quarter 2014. Cost cap payments
from Exterran Holdings, Inc. terminated effective December 31,
2014.
Revenue was $167.8 million for the second quarter 2015, compared
to $164.3 million for the first quarter 2015 and $145.7 million for
the second quarter 2014.
Net income was $22.3 million, or $0.30 per diluted limited
partner unit, for the second quarter 2015, compared to $20.1
million, or $0.28 per diluted limited partner unit, for the first
quarter 2015, and $17.8 million, or $0.26 per diluted limited
partner unit, for the second quarter 2014.
Net income, excluding items, for the second quarter 2015 was
$24.5 million, or $0.33 per diluted limited partner unit, excluding
pretax charges of $2.1 million due primarily to non-cash long-lived
asset impairment charges related to our fleet. Net income,
excluding items, was $23.6 million, or $0.35 per diluted limited
partner unit, for the first quarter 2015, and $19.9 million, or
$0.30 per diluted limited partner unit, for the second quarter
2014.
“Exterran Partners’ natural gas contract compression business
delivered another quarter of strong operating results and
distribution coverage,” said Brad Childers, Chairman, President and
Chief Executive Officer of Exterran Partners’ managing general
partner. “Our results, which benefitted from the compression assets
we acquired from Exterran Holdings in April 2015, demonstrated the
relative stability of our business model and reflected the cost
management we have undertaken in the current market
environment.”
For the second quarter 2015, Exterran Partners’ quarterly cash
distribution was $0.5675 per limited partner unit, or $2.27 per
limited partner unit on an annualized basis. The second-quarter
2015 distribution is $0.005 higher than the first-quarter 2015
distribution of $0.5625 per limited partner unit and $0.025 higher
than the second-quarter 2014 distribution of $0.5425 per limited
partner unit.
Conference Call Details
Exterran Partners and Exterran Holdings, Inc. will host a joint
conference call on Tuesday, August 4, 2015, to discuss their
second-quarter 2015 financial results. The call will begin at 11:00
a.m. Eastern Time.
To listen to the call via a live webcast, please visit
Exterran’s website at www.exterran.com. The call will also be
available by dialing 800-446-2782 in the United States and Canada,
or +1-847-413-3235 for international calls. Please call
approximately 15 minutes prior to the scheduled start time and
reference Exterran conference call number 40327110.
A replay of the conference call will be available on Exterran’s
website for approximately seven days. Also, a replay may be
accessed by dialing 888-843-7419 in the United States and Canada,
or +1-630-652-3042 for international calls. The access code is
40327110#.
*****
EBITDA, as further adjusted, a non-GAAP measure, is defined as
net income (loss) (a) excluding income taxes, interest expense
(including debt extinguishment costs and gain or loss on
termination of interest rate swaps), depreciation and amortization
expense, impairment charges, restructuring charges, expensed
acquisition costs, other items and non-cash selling, general and
administrative (“SG&A”) costs (b) plus the amounts reimbursed
to us by Exterran Holdings as a result of caps on cost of sales and
SG&A costs provided 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.
EBITDA, as further adjusted (without the benefit of the cost
caps), a non-GAAP measure, is defined as EBITDA, as further
adjusted, less the amounts reimbursed to us by Exterran Holdings as
a result of caps on cost of sales and SG&A costs provided in
the Omnibus Agreement.
Distributable cash flow, a non-GAAP measure, is defined as net
income (loss) (a) plus depreciation and amortization expense,
impairment charges, restructuring charges, expensed acquisition
costs, non-cash SG&A costs, interest expense and any amounts
reimbursed to us by Exterran Holdings as a result of the caps on
cost of sales and SG&A costs provided in the Omnibus Agreement,
which amounts are treated as capital contributions from Exterran
Holdings for accounting purposes, (b) less cash interest expense
(excluding amortization of deferred financing fees, amortization of
debt discount and non-cash transactions related to interest rate
swaps) and maintenance capital expenditures, and (c) excluding
gains or losses on asset sales and other items.
Distributable cash flow (without the benefit of cost caps), a
non-GAAP measure, is defined as distributable cash flow less the
amounts reimbursed to us by Exterran Holdings as a result of caps
on cost of sales and SG&A costs provided in the Omnibus
Agreement.
Gross margin, a non-GAAP measure, is defined as total revenue
less cost of sales (excluding depreciation and amortization
expense). Gross margin percentage is defined as gross margin
divided by revenue.
About Exterran Partners
Exterran Partners, L.P., a master limited partnership, is the
leading provider of natural gas contract compression services to
customers throughout the United States. Exterran Holdings, Inc.
(NYSE: EXH) owns an equity interest in Exterran Partners, including
all of the general partner interest. For more information, visit
www.exterran.com.
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 Exterran
Partners’ control, which could cause actual results to differ
materially from such statements. Forward-looking information
includes, but is not limited to: Exterran Partners’ financial and
operational strategies and ability to successfully effect those
strategies; Exterran Partners’ expectations regarding future
economic and market conditions; Exterran Partners’ financial and
operational outlook and ability to fulfill that outlook; and demand
for Exterran Partners’ services and growth opportunities for those
services.
While Exterran Partners believes that the assumptions concerning
future events are reasonable, it cautions that there are inherent
difficulties in predicting certain important factors that could
impact the future performance or results of its business. Among the
factors that could cause results to differ materially from those
indicated by such forward-looking statements are: local, regional
and national economic conditions and the impact they may have on
Exterran Partners and its 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 or natural gas or a sustained decrease in the price
of oil or natural gas; changes in economic conditions in key
operating markets; changes in safety, health, environmental and
other regulations; the failure of any third party to perform its
contractual obligations; and the performance of Exterran
Holdings.
These forward-looking statements are also affected by the risk
factors, forward-looking statements and challenges and
uncertainties described in Exterran Partners’ Annual Report on Form
10-K for the year ended December 31, 2014 and those set forth from
time to time in Exterran Partners’ filings with the Securities and
Exchange Commission, which are available at www.exterran.com.
Except as required by law, Exterran Partners expressly disclaims
any intention or obligation to revise or update any forward-looking
statements whether as a result of new information, future events or
otherwise.
EXTERRAN PARTNERS, L.P.UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
thousands, except per unit amounts) Three Months Ended
June 30,2015 March 31,2015 June 30,2014 Revenue $ 167,801 $
164,295 $ 145,694 Costs and expenses: Cost of sales
(excluding depreciation and amortization) 65,942 65,168 59,835
Depreciation and amortization 39,487 36,105 31,708 Long-lived asset
impairment 1,826 3,484 1,991 Restructuring charges - - 198 Selling,
general and administrative 20,721 21,169 19,047 Interest expense
19,082 17,832 14,756 Other (income) expense, net (1,512 )
(191 ) (134 ) Total costs and expenses 145,546
143,567 127,401 Income before
income taxes 22,255 20,728 18,293 Provision for (benefit from)
income taxes (72 ) 643 541 Net
income $ 22,327 $ 20,085 $ 17,752
General partner interest in net income $ 4,814 $ 4,209
$ 3,088 Limited partner interest in net income
$ 17,513 $ 15,876 $ 14,664 Weighted
average common units outstanding used in earnings per limited
partner unit (1): Basic 58,987 55,678
55,592 Diluted 58,987
55,678 55,594 Earnings per limited
partner unit (1): Basic $ 0.30 $ 0.28 $ 0.26
Diluted $ 0.30 $ 0.28 $ 0.26 (1)
Basic and diluted earnings per limited partner unit is computed
using the two-class method. Under the two-class method, basic and
diluted earnings per limited partner unit is determined by dividing
earnings allocated to the limited partner units after deducting the
amounts allocated to our general partner (including distributions
to our general partner on its incentive distribution rights) and
participating securities (phantom units with nonforfeitable tandem
distribution equivalent rights to receive cash distributions), by
the weighted average number of outstanding limited partner units
excluding the weighted average number of outstanding participating
securities during the period.
EXTERRAN PARTNERS,
L.P.UNAUDITED SUPPLEMENTAL INFORMATION(In thousands,
except per unit amounts, percentages and ratios)
Three Months Ended June 30,2015 March 31,2015 June 30,2014
Revenue $ 167,801 $ 164,295 $ 145,694 Gross margin
(1) $ 101,859 $ 99,127 $ 85,859 Gross margin percentage 61 % 60 %
59 % EBITDA, as further adjusted (1) $ 83,199 $ 78,741 $
68,563 % of revenue 50 % 48 % 47 % EBITDA, as further
adjusted (1) $ 83,199 $ 78,741 $ 68,563 Less: Cap on operating and
selling, general and administrative costs provided by Exterran
Holdings ("EXH") - - (1,399 )
EBITDA, as further adjusted (without the benefit of the cost caps)
(2) $ 83,199 $ 78,741 $ 67,164 % of revenue 50
% 48 % 46 % Capital expenditures $ 70,679 $ 68,239 $ 78,971
Less: Proceeds from sale of property, plant and equipment
(6,524 ) (4,624 ) (552 ) Net capital expenditures $
64,155 $ 63,615 $ 78,419 Distributable
cash flow (3) $ 48,302 $ 50,971 $ 42,393 Less: Cap on operating and
selling, general and administrative costs provided by EXH -
- (1,399 ) Distributable cash flow
(without the benefit of the cost caps) (2) $ 48,302 $ 50,971
$ 40,994 Distributions declared for the
period per limited partner unit $ 0.5675 $ 0.5625 $ 0.5425
Distributions declared to all unitholders
for the period, including incentive distribution rights
$ 39,084 $ 35,903 $ 33,649 Distributable cash flow coverage (4)
1.24x 1.42x 1.26x Distributable cash flow coverage (without the
benefit of the cost caps) (5) 1.24x 1.42x 1.22x June 30,2015
March 31,2015 June 30,2014 Debt $ 1,382,371 $ 1,342,581 $
1,041,736 Total partners' capital 753,883 656,035 718,966
(1) Management believes EBITDA, as further 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 further adjusted, as a valuation measure.
(2) Provisions in the Omnibus Agreement that provided caps on our
obligation to reimburse Exterran Holdings for operating and
SG&A expenses terminated on December 31, 2014. The benefits
received by us from the caps on operating and SG&A costs
provided by Exterran Holdings were $1.4 million during the three
months ended June 30, 2014. Excluding the benefit of the cost caps
from our previously defined non-GAAP measures of EBITDA, as further
adjusted, and distributable cash flow provides external users of
our consolidated financial statements comparable measures to assess
operating performance in the current year period with operating
performance in the prior year periods. (3) Management uses
distributable cash flow, a non-GAAP measure, as a supplemental
performance and liquidity measure. Using this metric, management
can quickly compute the coverage ratio of estimated cash flows to
planned cash distributions. (4) Defined as distributable
cash flow for the period divided by distributions declared to all
unitholders for the period, including incentive distribution
rights. (5) Defined as distributable cash flow excluding the
benefit of the cost caps for the period divided by distributions
declared to all unitholders for the period, including incentive
distribution rights.
EXTERRAN PARTNERS,
L.P.UNAUDITED SUPPLEMENTAL INFORMATION(In thousands,
except per unit amounts) Three Months
Ended June 30,2015 March 31,2015 June 30,2014 Reconciliation
of GAAP to Non-GAAP Financial Information: Net income $
22,327 $ 20,085 $ 17,752 Depreciation and amortization 39,487
36,105 31,708 Long-lived asset impairment 1,826 3,484 1,991
Restructuring charges - - 198 Selling, general and administrative
20,721 21,169 19,047 Interest expense 19,082 17,832 14,756 Other
(income) expense, net (1,512 ) (191 ) (134 ) Provision for (benefit
from) income taxes (72 ) 643 541
Gross margin (1) 101,859 99,127 85,859 Cap on operating costs
provided by Exterran Holdings ("EXH") - - - Cap on selling, general
and administrative costs provided by EXH - - 1,399 Expensed
acquisition costs (in Other (income) expense, net) 302 - - Non-cash
selling, general and administrative costs 247 592 218 Less:
Selling, general and administrative (20,721 ) (21,169 ) (19,047 )
Less: Other income (expense), net 1,512 191
134 EBITDA, as further adjusted (1) 83,199
78,741 68,563 Less: (Provision for) benefit from income taxes 72
(643 ) (541 ) Less: Gain on sale of property, plant and equipment
(in Other (income) expense, net) (1,782 ) (280 ) (170 ) Less: Cash
interest expense (17,893 ) (16,768 ) (13,563 ) Less: Maintenance
capital expenditures (15,294 ) (10,079 )
(11,896 ) Distributable cash flow (2) $ 48,302 $ 50,971
$ 42,393 Cash flows from operating
activities $ 42,027 $ 78,068 $ 38,782 Provision for doubtful
accounts (79 ) (390 ) (59 ) Cap on operating costs provided by EXH
- - - Cap on selling, general and administrative costs provided by
EXH - - 1,399 Expensed acquisition costs 302 - - Restructuring
charges - - 198 Payments for settlement of interest rate swaps that
include financing elements (935 ) (942 ) (981 ) Maintenance capital
expenditures (15,294 ) (10,079 ) (11,896 ) Change in assets and
liabilities 22,281 (15,686 ) 14,950
Distributable cash flow (2) $ 48,302 $ 50,971
$ 42,393 Net income $ 22,327 $ 20,085 $ 17,752 Items:
Long-lived asset impairment 1,826 3,484 1,991 Restructuring charges
- - 198 Expensed acquisition costs 302 -
- Net income, excluding items $ 24,455
$ 23,569 $ 19,941 Diluted earnings per limited
partner unit $ 0.30 $ 0.28 $ 0.26 Adjustment for items per limited
partner unit 0.03 0.07 0.04
Diluted earnings per limited partner unit, excluding items
(1) $ 0.33 $ 0.35 $ 0.30 (1) Management
believes EBITDA, as further adjusted, diluted earnings per limited
partner unit, 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 further adjusted, as a valuation measure. (2) Management
uses distributable cash flow, a non-GAAP measure, as a supplemental
performance and liquidity measure. Using this metric, management
can quickly compute the coverage ratio of estimated cash flows to
planned cash distributions.
EXTERRAN PARTNERS,
L.P.UNAUDITED SUPPLEMENTAL INFORMATION(In thousands,
except percentages) Three Months Ended
June 30,2015 March 31,2015 June 30,2014 Total available
horsepower (at period end) (1) 3,352 3,177 2,966
Total operating horsepower (at period end) (1) 3,130
3,032 2,790 Average operating
horsepower 3,128 3,034 2,708 Horsepower
Utilization: Spot (at period end) 93 % 95 % 94 % Average 94 % 96 %
94 %
Total available U.S. contract operations
horsepower of Exterran Holdings and Exterran Partners (at period
end)
4,246 4,246 3,976
Total operating U.S. contract operations
horsepower of Exterran Holdings and Exterran Partners (at period
end)
3,618 3,689 3,422 (1) Includes compressor units leased from
Exterran Holdings with an aggregate horsepower of approximately
1,000, 70,000 and 73,000 at June 30, 2015, March 31, 2015 and June
30, 2014, respectively. Excludes compressor units leased to
Exterran Holdings with an aggregate horsepower of approximately
1,000 and 1,000 at March 31, 2015 and June 30, 2014, respectively.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150804005625/en/
Exterran Partners, L.P.Media:Susan Moore,
281-836-7398orInvestors:David Oatman, 281-836-7035David Miller,
281-836-7895
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