Exterran Corporation (NYSE: EXTN) (“Exterran” or the “Company”)
today provided an operational update and its first quarter 2020
earnings release and conference call schedule.
Andrew Way, Exterran’s President and Chief Executive Officer
commented, “We are in unprecedented times, not only managing the
COVID-19 uncertainties but responding to the weakened commodity
price environment. First and foremost, we continue to monitor the
impact of COVID-19 and are focused on the health and well-being of
our employees and the communities where we work and serve. At
Exterran, our tie to natural gas, solid contracted backlog, and
strong balance sheet with no near-term maturities differentiates us
relative to many within the energy industry, and solidifies our
long-term confidence in our business. This was exemplified by our
first quarter results coming in-line with our guidance. We also had
a strong commercial start to the year with over $450 million of
product sales bookings, with products backlog around $640
million and over $200 million in ECO wins largely driven by
contract operations extensions that won’t require incremental
capital. Contract operations backlog at the end of the first
quarter was $1.35 billion.”
(in millions) |
Preliminary 1Q20 Results |
Revenue |
$208-212 |
Gross Margin |
$70-75 |
SG&A |
$37-39 |
Cash |
$19 |
Total Debt |
$453-457 |
*All numbers above include U.S. compression fabrication
business
The Company is continuously driving global productivity across
all functions. While the Company has significant backlog, it is
adjusting its structural costs to match current activity levels.
The Company continues to collaborate with its customers as they
navigate these challenging markets through a variety of short-term
solutions. The Company expects to provide updated guidance
incorporating additional cost reductions and reflecting current
market conditions as part of its first quarter earnings conference
call.
First Quarter 2020 Earnings Release and Conference Call
Schedule
The Company will release its first quarter 2020 results on
Monday, May 11th, 2020 before the market opens. The Company has
scheduled a conference call for Monday, May 11th, 2020 at 10 a.m.
Central Time to discuss the results. The call will be broadcast
live over the Internet. Investors may participate either by phone
or audio webcast.
By Phone: |
Dial 877-524-8416 at least 10 minutes before the call. A replay
will be available through Monday, May 18, 2020 by dialing
877-660-6853 and using the passcode 13701979. |
|
|
By Webcast: |
Connect to the webcast via the Investor Relations section of
Exterran’s website at www.exterran.com. Please log in at least
10 minutes in advance to register and download any necessary
software. A replay will be available shortly after the
call. |
About Exterran CorporationExterran
Corporation (NYSE: EXTN) is a global systems and process
company offering solutions in the oil, gas, water and power
markets. We are a leader in natural gas processing and treatment
and compression products and services, providing critical midstream
infrastructure solutions to customers throughout the
world. Exterran Corporation is headquartered
in Houston, Texas and operates in approximately 25
countries.
For more information, contact:Blake Hancock,
Vice President of Investor Relations, at 281-854-3043Or visit
www.exterran.com
Non-GAAP and Other Financial InformationGross
margin is defined as revenue less cost of sales (excluding
depreciation and amortization expense). Gross margin percentage is
defined as gross margin divided by revenue. The Company evaluates
the performance of its segments based on gross margin for each
segment.
EBITDA, as adjusted, a non-GAAP measure, is defined as net
income (loss) excluding income (loss) from discontinued operations
(net of tax), cumulative effect of accounting changes (net of tax),
income taxes, interest expense (including debt extinguishment
costs), depreciation and amortization expense, impairment charges,
restructuring and other charges, non-cash gains or losses from
foreign currency exchange rate changes recorded on intercompany
obligations, expensed acquisition costs and other items. EBITDA, as
adjusted, excludes the benefit of the two previously announced
sales of our Venezuelan assets.
Management believes EBITDA, as adjusted, is an important measure
of operating performance because it allows management, investors
and others to evaluate and compare our core operating results from
period to period by removing the impact of our capital structure
(interest expense from outstanding debt), asset base (depreciation
and amortization), our subsidiaries’ capital structure (non-cash
gains or losses from foreign currency exchange rate changes on
intercompany obligations), tax consequences, impairment charges,
restatement related charges (recoveries), restructuring and other
charges, expensed acquisition costs and other items. Management
uses EBITDA, as adjusted, as supplemental measures to review
current period operating performance, comparability measures and
performance measures for period to period comparisons. In addition,
the Company's compensation committee has used EBITDA, as adjusted,
in evaluating the performance of the Company and management and in
evaluating certain components of executive compensation, including
performance-based annual incentive programs.
Non-GAAP financial information supplements should be read
together with, and are not an alternative or substitute for, the
Company’s financial results reported in accordance with GAAP.
Because non-GAAP financial information is not standardized, it may
not be possible to compare these financial measures with other
companies’ non-GAAP financial measures having the same or similar
names.
Forward-Looking StatementsAll 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 statements may include
words such as “guidance,” “anticipate,” “estimate,” “expect,”
“preliminary,” “forecast,” “project,” “plan,” “intend,” “believe,”
“confident,” “may,” “should,” “can have,” “likely,” “future” and
other words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial
performance or other events. Examples of forward-looking
information in this release include, but are not limited to the
preliminary financial information regarding Exterran’s finalized
first quarter results and charges. 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’s control, which could cause actual results to
differ materially from such statements. As a result, any such
forward-looking statements are not guarantees of future performance
or results. While Exterran 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: adjustments made
during the finalization of Exterran’s financial close and reporting
processes for the first quarter; developments in the COVID-19
pandemic and the resulting impact on our business and operations;
local, regional, national and international economic and political
conditions and the impact they may have on Exterran and its
customers; Exterran’s reduced profit margins or loss of market
share resulting from competition or the introduction of competing
technologies by other companies; Exterran’s ability to win
profitable new business; changes in international trade
relationships including the imposition of trade restrictions or
tariffs related to any materials or products used in the operation
of our business; conditions in the oil and gas industry, including
a sustained imbalance in the level of supply or demand for oil or
natural gas or a sustained low price of oil or natural gas;
Exterran’s ability to timely and cost-effectively execute projects;
Exterran enhancing or maintaining its asset utilization,
particularly with respect to its fleet of compressors and other
assets; Exterran’s ability to integrate acquired businesses;
employment and workforce factors, including the ability to hire,
train and retain key employees; Exterran’s ability to accurately
estimate costs and time required under Exterran’s fixed price
contracts; liability related to the use of Exterran’s products and
services; changes in political or economic conditions in key
operating markets, including international markets; changes in
current exchange rates, including the risk of currency devaluations
by foreign governments, and restrictions on currency repatriation;
risks associated with Exterran’s operations, such as equipment
defects, equipment malfunctions, environmental discharges, extreme
weather and natural disasters; risks associated with cyber-based
attacks or network security breaches; any non-performance by third
parties of their contractual obligations, including the financial
condition of our customers; changes in safety, health,
environmental and other regulations, including those related to
climate change or water scarcity; and Exterran’s indebtedness and
its ability to generate sufficient cash flow, access financial
markets at an acceptable cost, fund its operations, capital
commitments and other contractual cash obligations, including our
debt obligations.
These forward-looking statements are also affected by the risk
factors, forward-looking statements and challenges and
uncertainties described in Exterran’s Annual Report on Form 10-K
for the year ended December 31, 2019, and other filings with the
Securities and Exchange Commission available on the Securities and
Exchange Commission’s website www.sec.gov. A discussion of these
risks is expressly incorporated by reference into this release.
Except as required by law, Exterran 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.
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