 Strong Operational Performance despite Challenging Environment Company to Exit the U.S. Compression Fabrication Business in the Fourth QuarterHOUSTON, Aug. 10, 2020 GLOBE NEWSWIRE -- Exterran Corporation NYSE: EXTN Exterran or the Company today reported second quarter financial results.Andrew Way, Exterrans President and Chief Executive Officer commented, The second quarter proved to be a challenging quarter as we had to manage the COVID-19 impacts coupled with the effects of the commodity price declines. Despite those significant challenges, the company performed extremely well to deliver results in-line with our expectations while continuing to execute on our projects in backlog. We are beginning to see some global improvements in our ability to move people and equipment around more efficiently than we had in the previous several months. The overall COVID-19 situation remains a challenge and we continue to monitor the situation and are focused on continuing to serve our customers, keep our employees safe and delivering on our financial commitments.With regard to the U.S. compression fabrication business, we expect to exit the business in the fourth quarter and are in the process of liquidating inventory, assets and the facility. It is possible that a strategic buyer will purchase a significant portion of the business assets. I want to thank all of the employees for their patience, hard work and dedication throughout this process.Net loss from continuing operations was 31.8 million, or 0.97 per share, on revenue of 171.6 million for the second quarter of 2020. This compares to net loss from continuing operations of 18.2 million, or 0.56 per share, on revenue of 210.4 million for the first quarter of 2020 and net loss from continuing operations of 14.8 million, or 0.42 per share, on revenue of 390.9 million for the second quarter of 2019. Net loss was 31.9 million for the second quarter of 2020, as compared to net loss of 18.3 million for the first quarter of 2020 and net loss of 7.3 million for the second quarter of 2019. EBITDA, as adjusted, was 24.2 million for the second quarter of 2020, as compared to 33.8 million for the first quarter of 2020 and 53.2 million for the second quarter of 2019. Loss before taxes was 27.9 million as compared to loss before taxes of 8.8 million for the first quarter of 2020 and loss before taxes of 4.2 million for the second quarter of 2019.Selling, general and administrative expenses were 34.4 million in the second quarter of 2020, as compared with 38.1 million in the first quarter of 2020 and 45.6 million in the second quarter of 2019. The year over year reduction was driven primarily by aggressive cost reductions and improved efficiencies. The Company also recorded additional restructuring charges of 7.7 million.Contract Operations Segment Contract operations revenue in the second quarter of 2020 was 77.9 million, an 18 decrease from first quarter of 2020 revenue of 94.8 million and a 13 decrease from second quarter of 2019 revenue of 89.7 million.Contract operations gross margin in the second quarter of 2020 was 54.2 million, a 14 decrease from the first quarter of 2020 gross margin of 63.3 million and a 9 decrease from the second quarter of 2019 gross margin of 59.3 million. Gross margin percentage in the second quarter of 2020 was 70, as compared with 67 in the first quarter of 2020 and 66 in the second quarter of 2019.Revenue declined sequentially primarily due to the impacts of the previously discussed asset sales of contracted equipment during the first quarter, unfavorable FX and COVID-19. Gross margin percentage increased due to continued focus on driving efficiencies through our operations. Aftermarket Services Segment Aftermarket services revenue in the second quarter of 2020 was 25.0 million, a 10 decrease from first quarter of 2020 revenue of 27.9 million and a 17 decrease from second quarter of 2019 revenue of 30.1 million.Aftermarket services gross margin in the second quarter of 2020 was 6.0 million, an 11 decrease from the first quarter of 2020 gross margin of 6.7 million and a 34 decrease from the second quarter of 2019 gross margin of 9.1 million. Gross margin percentage in the second quarter of 2020 was 24, as compared with 24 in the first quarter of 2020 and 30 in the second quarter of 2019.The revenue decline was driven largely by COVID-19 impacts, limiting the companys ability to move people and equipment around countries and to sites and reduced customer maintenance activities.Product Sales Segment Product sales revenue in the second quarter of 2020 was 68.7 million, a 22 decrease from first quarter of 2020 revenue of 87.7 million, and a 75 decrease from second quarter of 2019 revenue of 271.1 million.Product sales gross margin in the second quarter of 2020 was 2.1 million, a decrease from the first quarter of 2020 gross margin of 3.2 million and a decrease as compared to the second quarter of 2019 gross margin of 30.5 million. Gross margin percentage in the second quarter of 2020 was 3, as compared with 4 in the first quarter of 2020 and 11 in the second quarter of 2019.Revenue declined sequentially driven by the expected low conversion of revenue from backlog during the quarter and by COVID-19 impacts at some facilities. Margin declined due to fixed cost under absorption at our manufacturing facilities, mix and customer negotiations resulting in scope changes and associated costs. Product sales backlog was 576.3 million at June 30, 2020, as compared to 648.3 million at March 31, 2019 and 361.7 million at June 30, 2019. Product sales bookings for the second quarter of 2020 were 3.3 million, resulting in a book-to-bill ratio of 5. This compares to bookings of 458.0 million for the first quarter of 2020 and bookings of 79.3 million for the second quarter of 2019. New orders for the second quarter were 5.6 million, but were offset by a canceled U.S. compression order and negative change orders. Conference Call Information The Company will host a conference call at 10:00 a.m. Central Time on Monday, August 10, 2020. The call can be accessed from the Companys website at or by telephone at 877-524-8416. For those who cannot listen to the live call, a telephonic replay will be available through August 17, 2020 and may be accessed by calling 877-660-6853 and using the pass code 13707192. A presentation will also be posted on the Companys website prior to the conference call.About Exterran Corporation Exterran 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 281-854-3043 Or visit and Other Financial Information Gross 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, gain on extinguishment of debt and other items.Adjusted net income loss from continuing operations and diluted adjusted net income loss from continuing operations per common share, non-GAAP measures, are defined as net income loss and earnings per share, excluding the impact of income loss from discontinued operations net of tax, cumulative effect of accounting changes net of tax, impairment charges net of tax, restructuring and other charges net of tax, gain on extinguishment of debt, the effect of income tax adjustments that are outside of the Companys anticipated effective tax rates and other items.See tables below for additional information concerning non-GAAP financial information, including a reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP financial information supplements should be read together with, and are not an alternative or substitute for, the Companys 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 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. 