HOUSTON–(BUSINESS WIRE)–Exterran Corporation (NYSE:EXTN) today reported revenue of $418.1 million for the fourth quarter 2015, compared to $437.2 million for the third quarter 2015 and $611.2 million for the fourth quarter 2014. EBITDA, as adjusted (as defined below), was $51.3 million for the fourth quarter 2015, compared to $61.8 million for the third quarter 2015 and $89.2 million for the fourth quarter 2014.

Product sales backlog was $452.4 million at December 31, 2015, compared to $516.2 million at September 30, 2015 and $953.2 million at December 31, 2014. Third party bookings were $194.1 million during the fourth quarter 2015 resulting in a book-to-bill ratio of 75%, compared to $177.0 million for the third quarter 2015 and $474.9 million for the fourth quarter 2014.

Net loss from continuing operations, excluding items, for the fourth quarter 2015 was $14.2 million, or $0.42 per diluted common share. These amounts exclude the benefit of proceeds from the two previously announced sales of our previously-nationalized Venezuelan assets, the benefit of which was $19.1 million, restructuring and other charges of $14.4 million, which included costs associated with our spin-off from Archrock, Inc. (named Exterran Holdings, Inc. prior to November 3, 2015) (“Archrock”) and our cost reduction plan driven by market conditions, and non-cash long-lived asset impairment charges of $6.5 million related to our contract operations business. In accordance with the Separation and Distribution Agreement, we will pay to Archrock an amount based on a notional amount corresponding to payments we receive after November 3, 2015 from PDVSA Gas in respect of the sale of our and our joint ventures’ previously nationalized assets. Net loss from continuing operations, excluding items, was $24.7 million, or $0.72 per diluted common share, for the third quarter 2015 and net income from continuing operations, excluding items, was $38.5 million, or $1.12 per diluted common share, for the fourth quarter 2014. See table for reconciliation of GAAP to non-GAAP financial information.

Net loss was $12.0 million, or $0.35 per diluted common share, for the fourth quarter 2015, compared to net income of $12.3 million, or $0.36 per diluted common share, for the third quarter 2015 and net income of $47.1 million, or $1.37 per diluted common share, for the fourth quarter 2014.

For the full year 2015, revenue was $1.9 billion, a decrease of 14% from 2014. EBITDA, as adjusted, was $262.1 million and net loss from continuing operations, excluding items, was $7.1 million, or $0.21 per diluted common share. Net income was $46.2 million, or $1.35 per diluted common share. See table for reconciliation of GAAP to non-GAAP financial information.

On November 3, 2015, our spin-off from Archrock was completed. Following the spin-off, our businesses include international contract operations and international aftermarket services businesses, which combined are referred to as our international service businesses, and our global product sales business.

Andrew Way, Exterran Corporation’s President and Chief Executive Officer, said “Though market conditions continue to be very challenging as a result of low commodity prices and industry activity levels, we performed generally in line with our expectations during the fourth quarter. In our service businesses, gross margin was relatively stable and benefitted from greater focus on operating efficiencies.”

Way continued, “We continue to feel the impact of further deterioration of industry fundamentals and our revenues are expected to be under pressure throughout 2016 across all of our business segments. Capital projects continue to be delayed or cancelled and pricing pressures have intensified as customers navigate an uncertain near-term outlook. In this environment, we will continue to focus on what we can control, including resetting our cost structure in line with changing demand and generating free cash flow through efficient execution and working capital reductions. My expectation is that we will emerge from this downturn with a strong balance sheet and a lean cost structure, which will enable us to take advantage of our business’ operating leverage as growth returns.”

Jon Biro, Exterran Corporation’s Senior Vice President and Chief Financial Officer, said “After payment of $28 million of spin-off related transaction expenses in the fourth quarter, total debt was $526 million at December 31, 2015, with undrawn and available capacity of $279 million under our revolving credit facility. Furthermore, we reduced debt levels in January and ended the month with total debt of $494 million. As a result of our relatively stable business model, stringent controls over operating expenses and capital expenditures and our focus on driving working capital reductions, we expect to continue to reduce debt levels in 2016.”

Conference Call Details

Exterran Corporation will host a conference call on Thursday, Feb. 25, 2016, to discuss its fourth quarter 2015 financial results. The call will begin at 10:00 a.m. Eastern Time.

To listen to the call via a live webcast, please visit Exterran Corporation’s website at www.exterran.com. The call also will be available by dialing 800-447-0521 in the United States and Canada or +1-847-413-3238 for international calls. Please call approximately 15 minutes prior to the scheduled start time and reference Exterran conference call number 41695677.

A replay of the conference call will be available on Exterran Corporation’s website for approximately seven days. Also, a replay may be accessed by dialing 888-843-8996 in the United States and Canada or +1-630-652-3044 for international calls. The access code is 41695677#.

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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.

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 Corporation

Exterran Corporation (NYSE:EXTN) is a market leader in compression, production and processing products and services, serving customers throughout the world engaged in all aspects of the oil and natural gas industry. Its global product lines include natural gas compression, process & treating and production equipment and water treatment solutions. Outside the United States, Exterran Corporation is a leading provider of full-service natural gas contract compression and a supplier of new, used, OEM and aftermarket parts and services. Exterran Corporation is headquartered in Houston, Texas, and operates in approximately 30 countries with approximately 7,000 employees. 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 statements may include words such as “guidance,” “anticipate,” “estimate,” “expect,” “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. 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 Corporation’s control, which could cause actual results to differ materially from such statements. Examples of forward-looking information in this release include, but are not limited to: Exterran Corporation’s financial and operational strategies and ability to successfully effect those strategies; Exterran Corporation’s expectations regarding future economic and market conditions; Exterran Corporation’s financial and operational outlook and ability to fulfill that outlook; demand for Exterran Corporation’s products and services and growth opportunities for those products and services; and statements regarding amounts due from the sales of Exterran Corporation’s nationalized Venezuelan assets.

Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond our control) and assumptions. While Exterran Corporation 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, national and international economic conditions and the impact they may have on Exterran Corporation and its customers; Exterran Corporation’s reduced profit margins or loss of market share resulting from competition or the introduction of competing technologies by other companies; Exterran Corporation’s reliance on Archrock and Archrock Partners, L.P. (named Exterran Partners, L.P. prior to November 3, 2015) for a significant amount of its product sales revenues and its ability to secure new product sales customers; 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; Exterran Corporation’s ability to timely and cost-effectively execute larger projects; 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; the inherent risks associated with Exterran Corporation’s operations, such as equipment defects, malfunctions and natural disasters; any non-performance by third parties of their contractual obligations; and changes in safety, health, environmental and other regulations.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Exterran Corporation’s Registration Statement on Form 10, as amended, initially filed with the Securities and Exchange Commission on March 13, 2015, declared effective on October 21, 2015, and those set forth from time to time in Exterran Corporation’s filings with the Securities and Exchange Commission, including our Quarterly Reports on Form 10-Q, which are 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 Corporation 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.