HOUSTON, Nov. 02, 2020 (GLOBE NEWSWIRE) -- Exterran Corporation (NYSE: EXTN) today reported third quarter financial results.
Andrew Way, Exterran’s President and Chief Executive Officer commented, “The third quarter came in better than we had originally expected as we continue to focus on what we can control and on executing well on our strong backlog. While COVID-19 remains a challenge, we were able to move employees around more efficiently than in the first half of the year, which drove the rebound in aftermarket services segment revenue. Despite the challenges posed by the pandemic, we were able to renew another contract operations contract, for six years, with a total value of around $80 million, and there is no requirement for any incremental CAPEX. This success puts total renewals for Latin America at over $200 million so far this year, with no additional CAPEX needs. Our focus continues to be on securing additional commercial opportunities while simultaneously driving improved cash flow and returns over the long-term.”
Net loss from continuing operations was $16.7 million, or $0.51 per share, on revenue of $169.5 million for the third quarter of 2020. This compares to net loss from continuing operations of $19.3 million, or $0.59 per share, on revenue of $131.1 million for the second quarter of 2020 and net loss from continuing operations of $13.0 million, or $0.38 per share, on revenue of $186.0 million for the third quarter of 2019. Net loss was $17.7 million for the third quarter of 2020, as compared to net loss of $31.9 million for the second quarter of 2020 and net loss of $9.8 million for the third quarter of 2019. EBITDA, as adjusted, was $35.8 million for the third quarter of 2020, as compared to $24.9 million for the second quarter of 2020 and $43.8 million for the third quarter of 2019. Loss before taxes was $11.0 million as compared to loss before taxes of $15.4 million for the second quarter of 2020 and loss before taxes of $12.5 million for the third quarter of 2019.
Selling, general and administrative expenses were $30.0 million in the third quarter of 2020, as compared with $31.5 million in the second quarter of 2020 and $32.3 million in the third quarter of 2019.
Contract Operations Segment
Contract operations revenue in the third quarter of 2020 was $81.7 million, a 5% increase from second quarter of 2020 revenue of $77.9 million and a 15% decrease from third quarter of 2019 revenue of $96.3 million.
Contract operations gross margin in the third quarter of 2020 was $57.1 million, a 5% increase from the second quarter of 2020 gross margin of $54.2 million and an 8% decrease from the third quarter of 2019 gross margin of $61.9 million. Gross margin percentage in the third quarter of 2020 was 70%, as compared with 70% in the second quarter of 2020 and 64% in the third quarter of 2019.
Revenue increased sequentially given contract adjustments and an increase in activity.
Aftermarket Services Segment
Aftermarket services revenue in the third quarter of 2020 was $30.4 million, a 22% increase from second quarter of 2020 revenue of $25.0 million and a 13% decrease from third quarter of 2019 revenue of $34.9 million.
Aftermarket services gross margin in the third quarter of 2020 was $7.3 million, a 22% increase from the second quarter of 2020 gross margin of $6.0 million and a 17% decrease from the third quarter of 2019 gross margin of $8.8 million. Gross margin percentage in the third quarter of 2020 was 24%, as compared with 24% in the second quarter of 2020 and 25% in the third quarter of 2019.
The revenue increase was driven by an increase in activity in Latin America and Asia Pacific.
Product Sales Segment
Product sales revenue in the third quarter of 2020 was $57.4 million, a 104% increase from second quarter of 2020 revenue of $28.1 million, and a 5% increase from third quarter of 2019 revenue of $54.8 million.
Product sales gross margin in the third quarter of 2020 was $3.1 million, an increase from the second quarter of 2020 gross margin of $(4.3) million and a decrease as compared to the third quarter of 2019 gross margin of $6.6 million. Gross margin percentage in the third quarter of 2020 was 5%, as compared with (15)% in the second quarter of 2020 and 12% in the third quarter of 2019.
Revenue increased sequentially driven by incremental activity in our international locations. Margin increased for the quarter due to improved absorption of fixed costs because of higher plant activity. We have moved our U.S. compression fabrication business into discontinued operations.
Product sales backlog was $496.7 million at September 30, 2020, as compared to $547.2 million at June 30, 2020 and $153.2 million at September 30, 2019. Product sales bookings for the third quarter of 2020 were $8.7 million, resulting in a book-to-bill ratio of 15%. This compares to negative bookings of $2.9 million for the second quarter of 2020 and bookings of $71.5 million for the third quarter of 2019.
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.
