Exterran Corporation (NYSE:EXTN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 11:00 am ET


Exterran Corporation (NYSE:EXTN) Q2 2020 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Greetings, and welcome to the Exterran Second Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Blake Hancock, the Vice President of Investor Relations. Thank you. You may begin.

Blake Hancock

Good morning, and welcome to Exterran Corporation's second quarter 2020 conference call. With me today are Exterran's President and Chief Executive Officer, Andrew Way; David Barta, Exterran's Chief Financial Officer; and Girish Saligram, Exterran's Chief Operating Officer.

During this conference call, we may make statements regarding future expectations about the Company's business, management's plans for the future, operations or similar matters. These statements are considered forward-looking statements within the meaning of the U.S. securities laws, and speak only as the date of this call. The Company's actual results could differ materially due to several important factors, including the risk factors and other trends and uncertainties described in the Company's filings with the Securities and Exchange Commission.

Management may refer to non-GAAP financial measures during this call. In accordance with Regulation G, the Company provides a reconciliation of these measures in its earnings press release issued earlier today and a presentation located in the Investor Relations portion of the Company's website.

With that, I will now turn the call over to Andrew.

Andrew J. Way

Thanks, Blake, and good morning, everyone, and thanks for joining the call today. First, I will discuss COVID-19 development since we last checked in, and then discuss the second quarter along with how we're progressing on our long-term strategy. COVID-19 continues to challenge in many part of our customers', vendors' and employees' lives. But I'm extremely appreciative of all the collaboration and dedication of our employees have shown during these trying times as we continue to work to support our customers.

On our last earnings call, we had really only seen the impact of COVID towards the end of the quarter, especially related to closing of offices, global travel restrictions and mostly parts impacting our AMS business. At the time of the call, most of our office staff were working remotely. Today, we're starting to see our Middle East and Asia offices opening back up and a degree of normalcy is beginning to appear. North America and Latin America, however, continues to see elevated COVID levels making travel and returning to work more challenging, and we continue to monitor local situations very closely. Our global crisis management team continues its daily operating rhythm to ensure the safety of our employees, contractors and customers.

The second quarter came in largely as we had expected from an EBITDA perspective, as we had guided to the low to mid-$20 million range. During the quarter, COVID had an impact across all of our business lines, with the largest impacts coming from ECO and AMS, where we had to manage challenging customer logistics, specifically the inability to move people around, parts and equipment all around the globe.

We also saw the impact on new bookings with customers' delay in decisions making as