Business Context and Reporting Period
This Form 8-K was filed by Exterran Holdings, Inc. (noting the metadata reference to Archrock, Inc. appears to be a discrepancy as the filing text identifies Exterran) on August 24, 2007. The report details the entry into a material definitive agreement regarding the company's new worldwide headquarters.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial data disclosed relates to the specific terms of the new Office Lease Agreement:
- Lease Term: 10 years, with payments commencing March 1, 2008.
- Base Rent (Months 1-60): $229,855.46 per month.
- Base Rent (Months 61-120): $243,548.98 per month.
- Additional Costs: Tenant is responsible for maintenance fees, property taxes, insurance, utilities, and other operating expenses.
- Extension Option: Right to extend for up to 10 additional years.
Material Changes
The primary material change is the execution of a lease for approximately 235,000 square feet of rentable space across two buildings. This location will serve as the company's worldwide headquarters. The lease term officially commenced on August 24, 2007, though financial obligations for rent begin on March 1, 2008.
Guidance, Outlook, and Risks
The filing contains no management guidance, outlook, or discussion of general business risks. The document is strictly a disclosure of the lease agreement. The summary of the agreement is qualified by reference to the full text of the Office Lease Agreement filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the total square footage (235,000 sq. ft.) aligns with the company's operational needs for a worldwide headquarters.
- Confirm the start date of financial liability (March 1, 2008) versus the lease commencement date (August 24, 2007).
- Review the full text of Exhibit 10.1 to understand the specific "additional rent" obligations (taxes, insurance, utilities) which are not quantified in this summary.
- Assess the impact of the 10-year commitment and the potential 10-year extension on long-term fixed costs.