Chart Industries, Inc. (NASDAQ: GTLS), a leading diversified global
manufacturer of highly engineered equipment for the industrial gas
and energy industries, today reported results for the third quarter
ended September 30, 2020. Further details can be found in the
supplemental presentation included with this release. All figures
in this release and supplemental presentation represent our
continuing operations. Highlights include:
- Third quarter 2020 orders of $262.7 million, a
sequential increase of 7.4% over the second quarter 2020 (and flat
to the third quarter of 2019), including record orders in
Distribution & Storage hydrogen equipment, water treatment, LNG
regas, ISO Containers and repair, service &
leasing
- Backlog of $684.9 million, includes record backlog in
both the Distribution & Storage Eastern Hemisphere (“D&S
East”) and Distribution & Storage Western Hemisphere (“D&S
West”)
- Booked orders with 147 new customers in the third
quarter 2020; total new customers year-to-date of 407 includes 115
specialty market customers
- Signed ten new long-term agreements (“LTAs”) with major
customers including repair and service, hydrogen, LNG fueling
stations
- In October 2020, completed the divestiture of the
cryobiological business for $320 million in cash; proceeds used to
pay down debt, close the $10 million acquisition of Worthington’s
cryogenic trailer and hydrogen trailer business, and invest in
McPhy for expanded commercial hydrogen opportunities
- Reported earnings per diluted share of $0.43 includes
restructuring, deal costs and other one-time items resulting in
adjusted earnings per diluted share of $0.63 supported by gross
margin improvement of 130 bps over the third quarter 2019 and
all-time low SG&A as a percent of sales of 15.9% (14.8%
normalized) on a year-to-date basis
- Full year 2020 guidance of revenue of $1.18 billion and
associated diluted adjusted EPS of $2.25
- Full year 2021 outlook of revenue of $1.25 billion to
$1.325 billion and associated diluted adjusted EPS of $3.00 to
$3.40, an increase from previous estimate of $2.90 to $3.25 per
share
On October 1, 2020, we completed the divestiture
of our non-core cryobiological product line for $320 million in
cash and the transfer of certain pre-closing liabilities. This step
is considerable in our strategic plan to take advantage of the
fundamentals of the global clean energy transition with our broad
set of products as well as leverage our high growth, high margin
specialty products and repair, service and leasing business. The
$320 million was used to pay down debt and will in part be utilized
to drive further organic and inorganic investment.
As we have said on numerous occasions, we
consider ourselves the provider of cryogenic equipment regardless
of molecule and we believe that there will be a hybrid of renewable
energy sources as the clean energy transition continues. Hydrogen
will be significant in this transition, and with our 50 plus years
of hydrogen equipment experience, we will play a key part in the
full hydrogen value chain, enhanced by our recent inorganic
investments.
On October 13, 2020, we completed the
acquisition of Worthington Industries, Inc. (NYSE: WOR) cryogenic
trailer and hydrogen trailer business for a purchase price of $10
million. This acquisition includes ownership of the Theodore,
Alabama manufacturing site (fondly referred to internally as “Teddy
Trailers”), all trailer-related intellectual property,
manufacturing capabilities, equipment and repair backlog. The
addition of the trailer business to Chart’s hydrogen equipment and
solution offering expands our mobile equipment to larger sized
transports and brings another location already certified by
significant hydrogen customers. Within our first week of ownership,
we have received order commitments of $6.4 million and $2.4 million
for hydrogen trailers from two different customers. Additionally,
we have received a $2.0 million order for gaseous hydrogen trailers
from our Germany facility. Month-to-date October 21, 2020 hydrogen
related order commitments have ballooned to over $10.8 million (pun
intended)! This already exceeds our prior record which was this
past quarter – third quarter 2020 D&S hydrogen orders were $9.3
million.
On October 14, 2020, we completed our
subscription to the share capital increase of McPhy (Euronext
Paris: MCPHY – ISIN: FR0011742329) for 30 million euros, which
resulted in our owning 4.6% of the capital of McPhy, post
completion of their 180 million euros capital offering. McPhy
specializes in zero-carbon hydrogen production and distribution
equipment. In conjunction with our strategic investment, Chart and
McPhy also executed a commercial Memorandum of Understanding
(“MOU”). The MOU between McPhy and Chart is intended to set the
pace of commercial collaboration to stimulate new hydrogen demand
for the parties’ respective equipment and solutions globally.
We are also excited to announce that we will
participate in a U.S. Department of Energy project, Demonstration
and Framework for H2@Scale in Texas and Beyond. The project is
supported by DOE’s Hydrogen and Fuel Cell Technologies Office
within the Office of Energy Efficiency and Renewable Energy.
H2@Scale in Texas and Beyond intends to show that renewable
hydrogen can be a cost-effective fuel for multiple end-use
applications, including fuel cell electric vehicles, when coupled
with large, baseload consumers that use hydrogen for clean,
reliable stationary power. Chart is partnering with Frontier
Energy, GTI, University of Texas at Austin, OneH2, Texas Gas
Service, SoCalGas, Toyota Motor North America, Shell, Mitsubishi
Heavy Industries, and Air Liquide to conduct two related projects:
(1) UT-Austin will host a first-of-its-kind integration of
commercial hydrogen production, distribution, storage, and use. The
project partners will generate zero-carbon hydrogen onsite via
electrolysis with solar and wind power and reformation of renewable
natural gas from a Texas landfill. It is the first time that both
sources of renewable hydrogen will be used in the same project. The
hydrogen will power a stationary fuel cell to provide clean,
reliable power for the Texas Advanced Computing Center and supply a
hydrogen station with zero-emission fuel to fill a fleet of Toyota
Mirai fuel cell electric vehicles and (2) At the Port of Houston,
the project team will conduct a feasibility study for scaling up
hydrogen production and use. The team will assess available
resources, prospective hydrogen users, and delivery infrastructure,
such as existing pipelines that supply hydrogen to refineries.
Through these strategic activities, in
particular the divestiture, we have been able to prioritize debt
pay down but also continue to invest in the business. As of
September 30, 2020, our net leverage ratio was 2.92. After the
completion of the divestiture, debt paydown, and the two hydrogen
inorganic investments, September 30, 2020 pro forma net leverage
ratio was 1.98, and we have $120.7 million cash on hand.
We continue to see strengthening demand across
the business with the exception of our Energy & Chemicals
FinFans (“E&C FinFans”) segment where third quarter 2020 orders
were down $28.9 million when compared to the third quarter of 2019.
Chart orders of $262.7 million were down slightly from the third
quarter of 2019, which included a $6.6 million air cooled heat
exchanger order for Calcasieu Pass. D&S West and D&S East
orders increased 38% and 13.9% respectively over the third quarter
of 2019. Orders continued to be very strong for LNG infrastructure
related equipment, including the highest trailer order quarter
since the third quarter of 2018, continued record levels for
fueling stations, and record order levels for ISO containers.
Orders in the third quarter of 2020 for ISO containers totaled $17
million, compared to 2019 and 2018 full year orders for this
product of $17.3 million and $18.3 million. We received orders for
20 fueling stations in the quarter, contributing to our
year-to-date 56 stations, a 36.6% increase over year-to-date 2019
fueling station orders.
Backlog of $638.5 million excluding Big LNG
(Venture Global Calcasieu Pass) is the highest quarter since the
third quarter of 2014. Both D&S East and D&S West had
record backlog quarters. D&S West backlog of $179.7 million was
supported by a record order quarter ($126 million). Records were
set in: (a.) repair, service & leasing orders, reflecting our
first full quarter of our expanded leasing assets as we booked 8
new sales leases and 18 new operating leases in the third quarter
of 2020; (b.) ISO Containers; (c.) LNG regas; (d.) D&S hydrogen
equipment and (e.) water treatment, another of our specialty
markets. Year-to-date through September 30, 2020, water treatment
orders were $10.3 million, compared to $6 million for the full year
of 2019. This increase is being driven by a focus on ESG and
increased regulations for water quality. Additionally, in locations
such as the Middle East and Africa, facing water scarcity,
desalination is a solution, and can use our equipment partnered
with large CO2 dissolution systems. In the third quarter
2020, we booked orders for 6 facilities. One of them in
collaboration with Air Supply Group in Egypt is an order for
equipment (12 tanks and 4 vaporizers) for the Bahr Albaqar
wastewater treatment plant with a capacity of 5,000,000 m3/day
being constructed in Egypt by Orascom Construction & Arab
Contractors Joint Venture. This facility is being described as the
world’s largest for water treatment.
Water treatment contributed to our third quarter
2020 D&S specialty product orders of $55.7 million, an increase
of 30.5% over the third quarter of 2019. In addition to our record
water treatment orders, we also had a 64% increase in hydrogen
orders and a 38% increase in HLNG vehicle tanks orders.
Sequentially, D&S specialty products orders increased 17.9%,
even including the second quarter 2020 HLNG vehicle tank “catch up”
order following COVID-19 shutdowns of our key customers.
Year-to-date through September 30, 2020, D&S
hydrogen equipment, water treatment, LNG vehicle tank and cannabis
orders are higher than the full year of 2019 respective orders.
Supporting this activity was our second quarter record HLNG vehicle
tank orders, which were above $25 million. The third quarter 2020
HLNG vehicle tank orders were over $20 million, the second highest
quarter in history. This has been driven by high demand from our
customers on long-term agreements, demand for LNG over-the-road
vehicles in geographies outside of Europe including South America,
Russia, and Japan, and expanded applications for these tanks such
as LNG buses. For example, we received an order for HLNG vehicle
tanks from a prominent Japanese automotive company for their
on-road trials. It is worth noting that many of these same
customers are also working with us on HLH2 (horizontal liquid
hydrogen) onboard vehicle tanks for future applications. As you can
see, LNG infrastructure and small-scale applications are continuing
to expand, and we expect that to continue over the next several
years. And while big LNG projects remain on the horizon, Final
Investment Decisions (“FID”) have been delayed. Yet even with those
delays, in the third quarter 2020, we received an early engineering
release for a big LNG terminal for brazed aluminum heat exchangers
and cold boxes to be used on the natural gas pre-treatment
train.
One area of focus has been to expand our
long-term agreements to a broader set of customers, longer
durations, and to include repair, service and refurbishment. In the
third quarter of 2020, we executed ten new agreements, two LOIs and
one MOU (in addition to the McPhy MOU):
- Signed a MOU with an industrial gas major for a significant new
hydrogen project in Asia.
- Received a LOI and associated $800,000 order with Cimco for
Molson Breweries. We are fabricating and designing all of the CO2
equipment used for Molson’s new production line.
- Executed a LOI for LNG Fueling stations and multiple
semi-trailers for Renergen, who is positioned as the first
commercial supplier of LNG in South Africa, targeting domestic
consumers in the transport industry.
- Executed an exclusive three-year design and supply agreement
with Increment Power for liquefaction, storage, truck loading and
pipe for their proprietary ISTOR™ liquid air energy storage
system. We expect liquid air to be a preferred solution for
long-duration energy storage.
- Completed our first LTA with one of the industrial gas majors
in the United States inclusive of bulk original equipment and
repair and service capabilities.
- Signed five new LTAs in Europe, including 2 for multi-year LNG
fueling station buildouts and repair and service.
- Executed an agreement for air-cooled heat exchanger global
supply.
- Completed a Master Service Agreement with Stratolaunch for
engineering solutions of a liquid oxygen tank for use on a carrier
plane as part of their hypersonic aerospace vehicle program.
“The strength of our order activity in the third
quarter 2020 including multiple records as well as the very strong
start to October orders, even without all industrial gas customers
fully back in the field due to continued COVID-19 restrictions,
reflects the broad and diverse end markets that our unique product
offering serves,” stated Jill Evanko, Chart’s CEO and President.
“Coupling that with our recent steps to expand our hydrogen product
offering, additional capacity to be as close to our customers as
possible, and expanded long-term agreements sets the stage for
strong 2021 results.”
Third quarter 2020 sales of $273.2 million were
down 19.2% when compared to the third quarter of 2019, entirely
driven by E&C FinFans. Excluding FinFans, the rest of the
business’ sales were up 11.1% year over year, with D&S East up
20.9%. Year-to-date 2020 sales are down only 3.3% from 2019
year-to-date, or down 4.9% organically, reflecting the
diversification and strength of our business even through this
pandemic. Third quarter 2020 sales were impacted by order flow
within the quarter for short lead time packaged gas products, in
particular related to restaurant and beverage orders very strong
recovery in late August and September, which had minimal sales
impact to the third quarter 2020 but will have considerable
positive sales impact in the fourth quarter. Additionally, certain
timing of project deliveries from our backlog impacted the third
quarter of 2020 sales but will benefit the fourth quarter 2020 and
2021.
- E&C Cryo had a large Canadian petrochemical project delayed
by project owner execution, thereby increasing the full year 2021
by $12 million, with approximately $4 million per quarter of
revenue, beginning in the second quarter.
- E&C FinFans had a $3.8 million West African E&P project
moved to either the fourth quarter of 2020 or first quarter of
2021.
- D&S East (China) $4.1 million COVID-related delays on
deliveries for Singapore and Taiwan, which we expect to be shipped
in the first half of 2021.
- D&S East (EMEA) $2.5 million related to customer delays in
building permits, civil work or timing of ability to receive goods.
We expect this to be recognized in the first half of 2021.
Typically, our first and fourth quarter are our
lowest sales and order quarters of the year. 2020 will be different
in that the second quarter is expected to be our lowest order
quarter of the year, and the third quarter is expected to be our
lowest sales quarter of 2020.
Finally, we are very pleased with our earnings
in the third quarter 2020. Even with certain timing shifts of
shipments, we were able to deliver reported gross margin as a
percent of sales of 28.8%, and when normalized for restructuring
costs was 29.7%, bringing our year-to-date normalized gross margin
as a percent of sales to 29.2%. We expect the fourth quarter gross
margin as a percent of sales to be the highest of the year.
SG&A of $41.1 million in the third quarter of 2020 ($38.4
million when normalized for one-time expenses) contributed to our
record low SG&A as a percent of sales this year-to-date. Gross
margin combined with our continued cost improvements in SG&A
resulted in reported diluted earnings per share of $0.43 and
adjusted diluted earnings per share of $0.63, both of which were
the highest of 2020.
OUTLOOK 2020
Full year 2020 sales are expected to be
approximately $1.18 billion, inclusive of $23 million of Venture
Global’s Calcasieu Pass revenue in the fourth quarter of 2021. We
anticipate full year diluted adjusted earnings per share to be
approximately $2.25 on 35.3 million weighted average shares
outstanding. Our assumed effective tax rate is 19% for the full
year 2020. We continue to anticipate capex spend will be in the $30
million to $35 million range. Year-to-date capital expenditures
through September 30, 2020 are $26.9 million.
OUTLOOK 2021
Full year 2021 sales are expected to be
approximately $1.25 billion to $1.325 billion, inclusive of $23
million of Venture Global’s Calcasieu Pass revenue in the first
quarter of 2021. There is no additional Big LNG revenue included in
our outlook. As we have indicated previously, there are many moving
pieces that contribute to a range, and in an effort to avoid simply
taking the midpoint, our approximate revenue outlook for 2021 is
$1.28 billion. We anticipate full year diluted adjusted earnings
per share to be approximately $3.00 to $3.40 on 35.3 million
weighted average shares outstanding, up from our previous estimate
of $2.90 to $3.25 per share. Our assumed effective tax rate is 18%
for the full year 2021. We expect capital expenditure spend to be
in the $30 million to $35 million range.
FORWARD-LOOKING STATEMENTS
Certain statements made in this presentation are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements concerning the Company’s business
plans, including statements regarding completed acquisitions and
divestitures, cost synergies and efficiency savings, objectives,
future orders, revenues, margins, earnings or performance,
liquidity and cash flow, capital expenditures, business trends,
governmental initiatives, including executive orders and other
information that is not historical in nature. Forward-looking
statements may be identified by terminology such as "may," "will,"
"should," "could," "expects," "anticipates," "believes,"
"projects," "forecasts," “outlook,” “guidance,” "continue,"
“target,” or the negative of such terms or comparable
terminology.
Forward-looking statements contained in this
presentation or in other statements made by the Company are made
based on management's expectations and beliefs concerning future
events impacting the Company and are subject to uncertainties and
factors relating to the Company's operations and business
environment, all of which are difficult to predict and many of
which are beyond the Company's control, that could cause the
Company's actual results to differ materially from those matters
expressed or implied by forward-looking statements. Factors
that could cause the Company’s actual results to differ materially
from those described in the forward-looking statements
include: the Company’s ability to successfully integrate
recent acquisitions and achieve the anticipated revenue, earnings,
accretion and other benefits from these acquisitions; risks
relating to the recent outbreak and continued uncertainty
associated with the coronavirus (COVID-19) and the other factors
discussed in Item 1A (Risk Factors) in the Company’s most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed
with the SEC, which should be reviewed carefully. The Company
undertakes no obligation to update or revise any forward-looking
statement.
Chart Industries, Inc. is a leading independent
global manufacturer of highly engineered equipment servicing
multiple applications in the Energy and Industrial Gas markets. Our
unique product portfolio is used in every phase of the liquid gas
supply chain, including upfront engineering, service and repair.
Being at the forefront of the clean energy transition, Chart is a
leading provider of technology, equipment and services related to
liquefied natural gas, hydrogen, biogas and CO2 Capture amongst
other applications. We are committed to excellence in
environmental, social and corporate governance (ESG) issues both
for our company as well as our customers. With over 25 global
locations from the United States to Asia, Australia, India, Europe
and South America, we maintain accountability and transparency to
our team members, suppliers, customers and communities. To learn
more, visit www.Chartindustries.com.
USE OF NON-GAAP FINANCIAL INFORMATION
This presentation contains non-GAAP financial
information, including adjusted earnings per diluted share, net
income attributable to Chart Industries, Inc. adjusted, and free
cash flow. For additional information regarding the Company's
use of non-GAAP financial information, as well as reconciliations
of non-GAAP financial measures to the most directly comparable
financial measures calculated and presented in accordance with
accounting principles generally accepted in the United States
("GAAP"), please see the reconciliation pages at the end of this
news release and the slides titled "Q3 and YTD 2020 EPS" and “Q3
and YTD 2020 Free Cash Flow” included in the supplemental slides
accompanying this release.
The Company believes these non-GAAP measures are
of interest to investors and facilitate useful period-to-period
comparisons of the Company’s financial results, and this
information is used by the Company in evaluating internal
performance. With respect to the Company’s 2020 and 2021 full
year earnings outlook, the Company is not able to provide a
reconciliation of the adjusted earnings per diluted share because
certain items may have not yet occurred or are out of the Company’s
control and/or cannot be reasonably predicted.
CONFERENCE CALL
As previously announced, the Company will
discuss its third quarter 2020 results on a conference call on
Thursday, October 22, 2020 at 9:30 a.m. ET. Participants may
join the conference call by dialing (877) 312-9395 in the U.S. or
(970) 315-0456 from outside the U.S., entering conference ID
7878627. Please log-in or dial-in at least five minutes prior
to the start time.
A taped replay of the conference call will be
archived on the Company’s website, www.chartindustries.com.
You may also listen to a recorded replay of the conference call by
dialing (855) 859-2056 in the U.S. or (404) 537-3406 outside the
U.S. and entering Conference ID 7878627. The replay will be
available beginning 12:30 p.m. ET, Thursday, October 22, 2020 until
12:30 p.m. ET, Thursday, October 29, 2020.
For more information, click here:
http://ir.chartindustries.com/
See URL below for a link to our Supplemental
Information for our 2020 Third Quarter Results:
http://ml.globenewswire.com/Resource/Download/53706147-584f-4bb8-aab8-e3e85baaa598
Investor Relations Contact:
Wade Suki,
CFA |
Director of
Investor Relations |
832-524-7489 |
wade.suki@chartindustries.com |
CHART INDUSTRIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (UNAUDITED) (Dollars and shares in
millions, except per share amounts)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
|
September 30, 2020 |
|
September 30, 2019 |
Sales (1) |
$ |
273.2 |
|
|
$ |
338.0 |
|
|
$ |
289.6 |
|
|
$ |
864.7 |
|
|
$ |
894.1 |
|
Cost of
sales |
194.6 |
|
|
245.1 |
|
|
206.3 |
|
|
620.5 |
|
|
671.9 |
|
Gross
profit |
78.6 |
|
|
92.9 |
|
|
83.3 |
|
|
244.2 |
|
|
222.2 |
|
Selling,
general, and administrative expenses |
41.1 |
|
|
55.7 |
|
|
43.6 |
|
|
137.2 |
|
|
157.4 |
|
Amortization
expense |
9.4 |
|
|
13.7 |
|
|
14.0 |
|
|
37.3 |
|
|
28.2 |
|
Operating expenses |
50.5 |
|
|
69.4 |
|
|
57.6 |
|
|
174.5 |
|
|
185.6 |
|
Operating
income (1) (2) (3) (4) (5) (6) |
28.1 |
|
|
23.5 |
|
|
25.7 |
|
|
69.7 |
|
|
36.6 |
|
Interest expense, net |
6.5 |
|
|
7.8 |
|
|
7.5 |
|
|
21.2 |
|
|
18.5 |
|
Unrealized (gain) loss on investment in equity securities |
(0.7 |
) |
|
(2.6 |
) |
|
(0.7 |
) |
|
3.2 |
|
|
(2.6 |
) |
Financing costs amortization |
1.1 |
|
|
1.0 |
|
|
1.1 |
|
|
3.2 |
|
|
2.0 |
|
Foreign currency (gain) loss |
(0.8 |
) |
|
(1.7 |
) |
|
0.9 |
|
|
0.8 |
|
|
(1.9 |
) |
Income from
continuing operations before income taxes |
22.0 |
|
|
19.0 |
|
|
16.9 |
|
|
41.3 |
|
|
20.6 |
|
Income tax
expense |
6.2 |
|
|
5.2 |
|
|
2.3 |
|
|
8.9 |
|
|
5.3 |
|
Net income
from continuing operations |
15.8 |
|
|
13.8 |
|
|
14.6 |
|
|
32.4 |
|
|
15.3 |
|
Income from
discontinued operations, net of tax |
6.1 |
|
|
5.0 |
|
|
6.4 |
|
|
18.9 |
|
|
19.0 |
|
Net
income |
21.9 |
|
|
18.8 |
|
|
21.0 |
|
|
51.3 |
|
|
34.3 |
|
Less: Income
attributable to noncontrolling interests of continuing operations,
net of taxes |
0.2 |
|
|
— |
|
|
0.8 |
|
|
1.0 |
|
|
0.3 |
|
Net income
attributable to Chart Industries, Inc. |
$ |
21.7 |
|
|
$ |
18.8 |
|
|
$ |
20.2 |
|
|
$ |
50.3 |
|
|
$ |
34.0 |
|
Net income
attributable to Chart Industries, Inc. |
|
|
|
|
|
|
|
|
|
Income from
continuing operations |
15.6 |
|
|
13.8 |
|
|
13.8 |
|
|
31.4 |
|
|
15.0 |
|
Income from
discontinued operations, net of tax |
6.1 |
|
|
5.0 |
|
|
6.4 |
|
|
18.9 |
|
|
19.0 |
|
Net income
attributable to Chart Industries, Inc. |
$ |
21.7 |
|
|
$ |
18.8 |
|
|
$ |
20.2 |
|
|
$ |
50.3 |
|
|
$ |
34.0 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share attributable to Chart
Industries, Inc.: |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.44 |
|
|
$ |
0.39 |
|
|
$ |
0.39 |
|
|
$ |
0.89 |
|
|
$ |
0.45 |
|
Income from discontinued operations |
0.18 |
|
|
0.14 |
|
|
0.18 |
|
|
0.53 |
|
|
0.57 |
|
Net income
attributable to Chart Industries, Inc. |
$ |
0.62 |
|
|
$ |
0.53 |
|
|
$ |
0.57 |
|
|
$ |
1.42 |
|
|
$ |
1.02 |
|
Diluted earnings per common share attributable to Chart
Industries, Inc. |
|
|
|
|
|
|
|
|
|
Income from continuing operations (7) |
$ |
0.43 |
|
|
$ |
0.38 |
|
|
$ |
0.39 |
|
|
$ |
0.88 |
|
|
$ |
0.43 |
|
Income from discontinued operations |
0.17 |
|
|
0.13 |
|
|
0.18 |
|
|
0.53 |
|
|
0.54 |
|
Net income
attributable to Chart Industries, Inc. |
$ |
0.60 |
|
|
$ |
0.51 |
|
|
$ |
0.57 |
|
|
$ |
1.41 |
|
|
$ |
0.97 |
|
Weighted-average number of common shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
35.23 |
|
|
35.76 |
|
|
35.18 |
|
|
35.40 |
|
|
33.28 |
|
Diluted |
35.94 |
|
|
36.73 |
|
|
35.31 |
|
|
35.61 |
|
|
35.05 |
|
_______________
(1) Sales and operating income (loss) for AXC,
included in E&C FinFans segment, are as follows:
- Sales and operating loss were were $71.3 and $17.3, for the
nine months ended September 30, 2020, respectively.
- Sales and operating income were $60.1 and $2.6 for both the
three and nine months ended September 30, 2019, respectively.
(2) Includes depreciation expense of:
- $9.9, $10.0 and $9.3 for the three months ended September 30,
2020, September 30, 2019 and June 30, 2020, respectively,
and
- $28.8 and $27.0 for the nine months ended September 30, 2020
and 2019, respectively.
(3) Includes restructuring costs of:
- $1.9, $1.5, and $5.6 for the three months ended September 30,
2020, September 30, 2019 and June 30, 2020, respectively,
and
- $12.7 and $13.3 for the nine months ended September 30, 2020
and 2019, respectively.
(4) Includes a $2.6 gain on sale of a facility in China for the
second quarter of 2020.(5) Includes transaction-related costs of
$4.3 and $7.0 for the three and nine months ended September 30,
2019, respectively.(6) Includes transaction-related costs of $1.4
and $1.8 related to integration activities for previous
acquisitions for the three and nine months ended September 30,
2019, respectively.(7) Includes an additional 0.43 and 0.59 shares
related to the convertible notes due 2024 in our diluted earnings
per share calculation for the three months ended September 30, 2020
and 2019, respectively. The associated hedge, which helps offset
this dilution, cannot be taken into account under U.S. GAAP. If the
hedge could have been considered, it would have reduced the
additional shares by 0.43 and 0.59 for the three months ended
September 30, 2020 and 2019, respectively.
CHART INDUSTRIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED) (Dollars in
millions)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
|
September 30, 2020 |
|
September 30, 2019 |
Net Cash Provided By Operating Activities |
$ |
26.5 |
|
|
$ |
48.3 |
|
|
$ |
48.5 |
|
|
$ |
94.2 |
|
|
$ |
35.8 |
|
Investing Activities |
|
|
|
|
|
|
|
|
|
Acquisition of businesses, net of cash acquired |
— |
|
|
(599.7 |
) |
|
— |
|
|
— |
|
|
(603.9 |
) |
Capital expenditures |
(6.1 |
) |
|
(11.4 |
) |
|
(10.6 |
) |
|
(26.9 |
) |
|
(26.0 |
) |
Investments (1) |
— |
|
|
(3.3 |
) |
|
— |
|
|
— |
|
|
(3.3 |
) |
Proceeds from sale of assets |
7.1 |
|
|
— |
|
|
0.8 |
|
|
7.9 |
|
|
— |
|
Government grants |
— |
|
|
0.7 |
|
|
(0.1 |
) |
|
— |
|
|
0.5 |
|
Net Cash Provided By (Used In) Investing
Activities |
1.0 |
|
|
(613.7 |
) |
|
(9.9 |
) |
|
(19.0 |
) |
|
(632.7 |
) |
Financing Activities |
|
|
|
|
|
|
|
|
|
Borrowings on revolving credit facilities |
1.0 |
|
|
150.6 |
|
|
29.0 |
|
|
94.5 |
|
|
202.6 |
|
Repayments on revolving credit facilities |
(45.7 |
) |
|
(92.9 |
) |
|
(36.7 |
) |
|
(167.1 |
) |
|
(384.2 |
) |
Borrowings on term loan |
— |
|
|
450.0 |
|
|
— |
|
|
— |
|
|
450.0 |
|
Repayments on term loan |
(2.8 |
) |
|
— |
|
|
(2.8 |
) |
|
(8.4 |
) |
|
— |
|
Payments for debt issuance costs |
0.9 |
|
|
(10.9 |
) |
|
(1.9 |
) |
|
(1.0 |
) |
|
(13.6 |
) |
Issuance of shares |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
295.8 |
|
Payments for equity issuance costs |
— |
|
|
(0.6 |
) |
|
— |
|
|
— |
|
|
(9.5 |
) |
Proceeds from exercise of stock options |
1.6 |
|
|
0.2 |
|
|
0.6 |
|
|
4.2 |
|
|
9.4 |
|
Common stock repurchases from share-based compensation plans |
— |
|
|
— |
|
|
— |
|
|
(1.7 |
) |
|
(2.8 |
) |
Common stock repurchases (2) |
— |
|
|
— |
|
|
— |
|
|
(19.3 |
) |
|
— |
|
Dividend distribution to noncontrolling interest |
— |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
— |
|
Other financing activities |
— |
|
|
(0.5 |
) |
|
— |
|
|
— |
|
|
(0.5 |
) |
Net Cash (Used In) Provided By Financing
Activities |
(45.0 |
) |
|
496.3 |
|
|
(11.8 |
) |
|
(98.8 |
) |
|
547.2 |
|
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
|
Cash Provided by Operating Activities (3) |
5.7 |
|
|
7.4 |
|
|
6.4 |
|
|
18.3 |
|
|
19.5 |
|
Cash Used in Investing Activities (4) |
(0.2 |
) |
|
(0.2 |
) |
|
(0.2 |
) |
|
(0.4 |
) |
|
(0.7 |
) |
Cash Provided by Discontinued Operations |
5.5 |
|
|
7.2 |
|
|
6.2 |
|
|
17.9 |
|
|
18.8 |
|
Effect of
exchange rate changes on cash |
10.2 |
|
|
(5.9 |
) |
|
0.2 |
|
|
7.4 |
|
|
(6.5 |
) |
Net increase
(decrease) in cash, cash equivalents, restricted cash, and
restricted cash equivalents |
(1.8 |
) |
|
(67.8 |
) |
|
33.2 |
|
|
1.7 |
|
|
(37.4 |
) |
Cash, cash
equivalents, restricted cash, and restricted cash equivalents at
beginning of period (5) |
123.5 |
|
|
149.5 |
|
|
90.3 |
|
|
120.0 |
|
|
119.1 |
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED
CASH EQUIVALENTS AT END OF PERIOD (5) |
$ |
121.7 |
|
|
$ |
81.7 |
|
|
$ |
123.5 |
|
|
$ |
121.7 |
|
|
$ |
81.7 |
|
_______________
(1) Non-cash investing activities of $7.0
related to the conversion of a note receivable into an investment
in equity securities during the nine months ended September 30,
2019.(2) Includes $19.3 in shares repurchased through our share
repurchase program.(3) Includes depreciation expense of $0.2 and
$0.3 for the three months ended September 30, 2020 and 2019,
respectively, and $0.3 for the three months ended June 30, 2020.
Includes depreciation expense of $0.8 for both the nine months
ended September 30, 2020 and 2019, respectively.(4) Includes
capital expenditures of $0.4 and $0.7 for the nine months ended
September 30, 2020 and 2019, respectively, and $0.2 for all the
quarter-to-date periods presented.(5) Includes restricted cash and
restricted cash equivalents of $1.0 in other assets for each of the
periods presented.
CHART INDUSTRIES, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (Dollars in millions)
|
September 30, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
120.7 |
|
|
$ |
119.0 |
|
Accounts
receivable, net |
163.6 |
|
|
191.6 |
|
Inventories,
net |
237.6 |
|
|
210.0 |
|
Other
current assets |
137.2 |
|
|
131.4 |
|
Property,
plant, and equipment, net |
396.0 |
|
|
397.8 |
|
Goodwill |
817.6 |
|
|
811.4 |
|
Identifiable
intangible assets, net |
488.7 |
|
|
522.4 |
|
Investments |
9.7 |
|
|
13.4 |
|
Other
assets |
12.4 |
|
|
15.8 |
|
Total assets
of discontinued operations |
69.4 |
|
|
68.6 |
|
TOTAL ASSETS |
$ |
2,452.9 |
|
|
$ |
2,481.4 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current
liabilities |
$ |
347.0 |
|
|
$ |
372.4 |
|
Long-term
debt |
695.4 |
|
|
761.0 |
|
Other
long-term liabilities |
112.5 |
|
|
109.5 |
|
Total
liabilities of discontinued operations |
5.9 |
|
|
6.1 |
|
Equity |
1,292.1 |
|
|
1,232.4 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
2,452.9 |
|
|
$ |
2,481.4 |
|
CHART INDUSTRIES, INC. AND
SUBSIDIARIES OPERATING SEGMENTS
(UNAUDITED) (Dollars in millions)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
|
September 30, 2020 |
|
September 30, 2019 |
Sales |
|
|
|
|
|
|
|
|
|
D&S East |
$ |
85.1 |
|
|
|
$ |
70.4 |
|
|
|
$ |
79.7 |
|
|
|
$ |
234.8 |
|
|
|
$ |
216.8 |
|
|
D&S
West |
91.1 |
|
|
|
93.3 |
|
|
|
86.0 |
|
|
|
269.5 |
|
|
|
280.0 |
|
|
E&C
Cryogenics |
64.8 |
|
|
|
48.9 |
|
|
|
63.7 |
|
|
|
190.7 |
|
|
|
131.3 |
|
|
E&C
FinFans (1) |
40.5 |
|
|
|
128.6 |
|
|
|
64.1 |
|
|
|
185.3 |
|
|
|
272.0 |
|
|
Intersegment
eliminations |
(8.3 |
) |
|
|
(3.2 |
) |
|
|
(3.9 |
) |
|
|
(15.6 |
) |
|
|
(6.0 |
) |
|
Consolidated |
$ |
273.2 |
|
|
|
$ |
338.0 |
|
|
|
$ |
289.6 |
|
|
|
$ |
864.7 |
|
|
|
$ |
894.1 |
|
|
Gross Profit |
|
|
|
|
|
|
|
|
|
D&S
East |
$ |
19.6 |
|
|
|
$ |
16.3 |
|
|
|
$ |
15.0 |
|
|
|
$ |
51.7 |
|
|
|
$ |
36.7 |
|
|
D&S
West |
28.5 |
|
|
|
29.2 |
|
|
|
29.7 |
|
|
|
87.8 |
|
|
|
88.8 |
|
|
E&C
Cryogenics |
21.3 |
|
|
|
7.9 |
|
|
|
21.4 |
|
|
|
58.8 |
|
|
|
18.3 |
|
|
E&C
FinFans |
9.2 |
|
|
|
39.8 |
|
|
|
17.2 |
|
|
|
45.9 |
|
|
|
79.4 |
|
|
Intersegment
eliminations |
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
Consolidated |
$ |
78.6 |
|
|
|
$ |
92.9 |
|
|
|
$ |
83.3 |
|
|
|
$ |
244.2 |
|
|
|
$ |
222.2 |
|
|
Gross Profit Margin |
|
|
|
|
|
|
|
|
|
D&S
East |
23.0 |
|
% |
|
23.2 |
|
% |
|
18.8 |
|
% |
|
22.0 |
|
% |
|
16.9 |
|
% |
D&S
West |
31.3 |
|
% |
|
31.3 |
|
% |
|
34.5 |
|
% |
|
32.6 |
|
% |
|
31.7 |
|
% |
E&C
Cryogenics |
32.9 |
|
% |
|
16.2 |
|
% |
|
33.6 |
|
% |
|
30.8 |
|
% |
|
13.9 |
|
% |
E&C
FinFans |
22.7 |
|
% |
|
30.9 |
|
% |
|
26.8 |
|
% |
|
24.8 |
|
% |
|
29.2 |
|
% |
Consolidated |
28.8 |
|
% |
|
27.5 |
|
% |
|
28.8 |
|
% |
|
28.2 |
|
% |
|
24.9 |
|
% |
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
D&S
East |
$ |
9.9 |
|
|
|
$ |
7.1 |
|
|
|
$ |
8.1 |
|
|
|
$ |
24.9 |
|
|
|
$ |
7.1 |
|
|
D&S
West |
19.7 |
|
|
|
17.8 |
|
|
|
20.1 |
|
|
|
58.7 |
|
|
|
52.9 |
|
|
E&C
Cryogenics |
15.6 |
|
|
|
3.6 |
|
|
|
14.3 |
|
|
|
38.6 |
|
|
|
(7.1 |
) |
|
E&C
FinFans |
(1.7 |
) |
|
|
16.2 |
|
|
|
(0.2 |
) |
|
|
(0.8 |
) |
|
|
36.0 |
|
|
Corporate |
(15.4 |
) |
|
|
(21.0 |
) |
|
|
(16.6 |
) |
|
|
(51.7 |
) |
|
|
(51.4 |
) |
|
Intersegment eliminations |
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.9 |
) |
|
Consolidated (1) (2) (3) (4) (5) |
$ |
28.1 |
|
|
|
$ |
23.5 |
|
|
|
$ |
25.7 |
|
|
|
$ |
69.7 |
|
|
|
$ |
36.6 |
|
|
Operating Margin (Loss) |
|
|
|
|
|
|
|
|
|
D&S
East |
11.6 |
|
% |
|
10.1 |
|
% |
|
10.2 |
|
% |
|
10.6 |
|
% |
|
3.3 |
|
% |
D&S
West |
21.6 |
|
% |
|
19.1 |
|
% |
|
23.4 |
|
% |
|
21.8 |
|
% |
|
18.9 |
|
% |
E&C
Cryogenics |
24.1 |
|
% |
|
7.4 |
|
% |
|
22.4 |
|
% |
|
20.2 |
|
% |
|
(5.4 |
) |
% |
E&C
FinFans |
(4.2 |
) |
% |
|
12.6 |
|
% |
|
(0.3 |
) |
% |
|
(0.4 |
) |
% |
|
13.2 |
|
% |
Consolidated |
10.3 |
|
% |
|
7.0 |
|
% |
|
8.9 |
|
% |
|
8.1 |
|
% |
|
4.1 |
|
% |
_______________
(1) Sales and operating income (loss) for AXC,
included in E&C FinFans segment, are as follows:
- Sales and operating loss were were $71.3 and $17.3, for the
nine months ended September 30, 2020, respectively.
- Sales and operating income were $60.1 and $2.6 for both the
three and nine months ended September 30, 2019, respectively.
(2) Restructuring costs for the three months ended:
- September 30, 2020 were $1.9 ($0.1 - D&S East, $0.2 -
D&S West, $1.1 - E&C FinFans, and $0.5 - Corporate).
- September 30, 2019 were $1.5 ($0.3 - D&S East, $0.4 -
D&S West, $0.2 - E&C Cryogenics, and $0.6 - E&C
FinFans).
- June 30, 2020 were $5.6 ($0.9 - D&S East, $0.2 -
D&S West, $0.4 - E&C Cryogenics, $2.5 E&C FinFans, and
$1.6 - Corporate).
(3) Restructuring costs for the nine months ended:
- September 30, 2020 were $12.7 ($2.0 - D&S East, $1.2 -
D&S West, $0.8 - E&C Cryogenics, $6.0 - E&C FinFans,
and $2.7 - Corporate).
- September 30, 2019 were $13.3 ($8.1 - D&S East, $0.8 -
D&S West, $2.4 - E&C Cryogenics, and $1.8 - E&C
FinFans, and $0.2 - Corporate).
(4) Includes a $2.6 gain on sale of a facility in China for the
second quarter of 2020 recorded within our D&S East segment.(5)
Includes transaction-related costs of $4.3 and $7.0 for the three
and nine months ended September 30, 2019, respectively, recorded
within Corporate.(6) Includes transaction-related costs of $1.4
($0.2 - D&S East, $0.7 - E&C FinFans, and $0.5 - Corporate)
and $1.8 ($0.2 - D&S East and $1.6 - Corporate) related to
integration activities for previous acquisitions for the three and
nine months ended September 30, 2019, respectively.
CHART INDUSTRIES, INC. AND
SUBSIDIARIES ORDERS AND BACKLOG
(UNAUDITED) (Dollars in millions)
|
Three Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
Orders |
|
|
|
|
|
D&S East |
$ |
87.1 |
|
|
|
$ |
76.5 |
|
|
$ |
67.9 |
|
D&S
West |
126.0 |
|
|
|
91.3 |
|
|
91.7 |
|
E&C
Cryogenics (1) |
34.5 |
|
|
|
35.1 |
|
|
47.2 |
|
E&C
FinFans (2) |
34.1 |
|
|
|
63.0 |
|
|
37.6 |
|
Intersegment
eliminations |
(19.0 |
) |
|
|
— |
|
|
0.3 |
|
Consolidated |
$ |
262.7 |
|
|
|
$ |
265.9 |
|
|
$ |
244.7 |
|
|
As of |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
Backlog |
|
|
|
|
|
D&S East |
$ |
229.0 |
|
|
|
$ |
203.8 |
|
|
$ |
218.2 |
|
|
D&S
West |
179.7 |
|
|
|
116.7 |
|
|
145.8 |
|
|
E&C
Cryogenics (1) (2) |
228.8 |
|
|
|
288.3 |
|
|
257.3 |
|
|
E&C
FinFans |
62.0 |
|
|
|
136.4 |
|
|
68.3 |
|
|
Intersegment
eliminations |
(14.6 |
) |
|
|
— |
|
|
(3.8 |
) |
|
Consolidated |
$ |
684.9 |
|
|
|
$ |
745.2 |
|
|
$ |
685.8 |
|
|
_______________
(1) E&C Cryogenics orders and backlog for the three months
ended June 30, 2019 include a $135 million order for the cold box
and brazed aluminum heat exchanger equipment content on Venture
Global’s Calcasieu Pass liquefied natural gas (LNG) export terminal
project (“Calcasieu Pass”). As of the end of the third quarter of
2020, there was $46.4 million of Calcasieu Pass backlog
remaining.(2) Included in the E&C Cryogenics backlog for all
periods presented is approximately $40 million related to the
previously announced Magnolia LNG order.
CHART INDUSTRIES, INC. AND
SUBSIDIARIES RECONCILIATION OF EARNINGS PER
DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
(UNAUDITED) (Dollars in millions, except per share
amounts)
|
Three Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
Earnings per diluted share as reported (U.S. GAAP) – Continuing
Operations |
$ |
0.43 |
|
|
$ |
0.38 |
|
|
$ |
0.39 |
|
Restructuring, transaction-related and other costs (1) |
0.17 |
|
|
0.25 |
|
|
0.18 |
|
Gain on sale
of a facility in China (2) |
— |
|
|
— |
|
|
(0.07 |
) |
Other
one-time costs (3) |
0.04 |
|
|
0.06 |
|
|
(0.02 |
) |
Dilution
impact of convertible notes (4) |
0.01 |
|
|
0.01 |
|
|
— |
|
Tax
effects |
(0.02 |
) |
|
(0.06 |
) |
|
(0.03 |
) |
Adjusted earnings per diluted share (non-GAAP) – Continuing
Operations |
$ |
0.63 |
|
|
$ |
0.64 |
|
|
$ |
0.45 |
|
|
Three Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
Earnings per diluted share as reported (U.S. GAAP) – Discontinued
Operations |
$ |
0.17 |
|
|
$ |
0.13 |
|
|
$ |
0.18 |
|
Adjusted earnings per diluted share (non-GAAP) –
Discontinued Operations |
$ |
0.17 |
|
|
$ |
0.13 |
|
|
$ |
0.18 |
|
|
Three Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
Earnings per diluted share as reported (U.S. GAAP) –
Consolidated |
$ |
0.60 |
|
|
$ |
0.51 |
|
|
$ |
0.57 |
|
Restructuring, transaction-related and other costs (1) |
0.17 |
|
|
0.25 |
|
|
0.18 |
|
Gain on sale
of a facility in China (2) |
— |
|
|
— |
|
|
(0.07 |
) |
Other
one-time costs (3) |
0.04 |
|
|
0.06 |
|
|
(0.02 |
) |
Dilution
impact of convertible notes (4) |
0.01 |
|
|
0.01 |
|
|
— |
|
Tax
effects |
(0.02 |
) |
|
(0.06 |
) |
|
(0.03 |
) |
Adjusted earnings per diluted share (non-GAAP) –
Consolidated |
$ |
0.80 |
|
|
$ |
0.77 |
|
|
$ |
0.63 |
|
______________
(1) Restructuring, transaction-related and other costs were as
follows:
- During the third quarter of 2020, we recorded $1.9 of
restructuring costs that primarily related to facility
consolidation in our E&C FinFans segment, as well as
departmental restructuring, including headcount reductions.
- During the third quarter of 2019, we recorded $1.5 of
restructuring costs that primarily related to facility
consolidation in our E&C FinFans segment, as well as
departmental restructuring, including headcount reductions. During
the third quarter of 2019, we also incurred $4.3 in
transaction-related costs, $1.6 in other one-time costs that
related to the departure and election of certain officers of the
Company and transaction-related costs of $1.4 related to
integration activities for previous acquisitions.
- During the second quarter of 2020, we recorded $5.6 in
restructuring costs primarily related to headcount reductions, in
order to manage through a downturn in our E&C FinFans segment
and smaller reductions in our other segments and corporate in order
to reduce redundant work.
(2) Includes a $2.6 gain on sale of a facility in China for the
three months ended June 30, 2020 recorded within our D&S East
segment.(3) Other one-time costs include Stabilis investment
mark-to-market adjustments, commercial and legal settlements, and
COVID-19 related costs, which include freight, sourcing and safety
costs directly related to manufacture and fulfillment of critical
care products.(4) Includes an additional 0.43 and 0.59 shares
related to the convertible notes due 2024 in our diluted earnings
per share calculation for the three months ended September 30, 2020
and 2019, respectively. The associated hedge, which helps offset
this dilution, cannot be taken into account under U.S. GAAP. If the
hedge could have been considered, it would have reduced the
additional shares by 0.43 and 0.59 for the three months ended
September 30, 2020 and 2019, respectively.
Adjusted earnings per diluted share is not a
measure of financial performance under U.S. GAAP and should not be
considered as an alternative to earnings per share in accordance
with U.S. GAAP. Management believes that adjusted earnings per
share facilitates useful period-to-period comparisons of our
financial results and this information is used by us in evaluating
internal performance. Our calculation of this non-GAAP measure may
not be comparable to the calculations of similarly titled measures
reported by other companies.
CHART INDUSTRIES, INC. AND
SUBSIDIARIES RECONCILIATION OF NET INCOME
ATTRIBUTABLE TO CHART INDUSTRIES, INC. TO NET INCOME ATTRIBUTABLE
TO CHART INDUSTRIES, INC., ADJUSTED (UNAUDITED)
(Dollars in millions)
|
Three Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
Income from continuing operations attributable to Chart Industries,
Inc., as reported (U.S. GAAP) |
$ |
15.6 |
|
|
$ |
13.8 |
|
|
$ |
13.8 |
|
Interest accretion of convertible notes discount |
2.0 |
|
|
2.0 |
|
|
2.0 |
|
Employee share-based compensation expense |
2.2 |
|
|
2.1 |
|
|
2.0 |
|
Financing costs amortization |
1.1 |
|
|
1.0 |
|
|
1.1 |
|
Unrealized foreign currency transaction (gain) loss |
(2.0 |
) |
|
2.7 |
|
|
(1.0 |
) |
Unrealized gain on investment in equity securities |
(0.7 |
) |
|
(2.6 |
) |
|
(1.0 |
) |
Other non-cash operating activities |
(6.4 |
) |
|
(4.8 |
) |
|
0.4 |
|
Income from continuing operations attributable to Chart
Industries, Inc., adjusted (non-GAAP) |
$ |
11.8 |
|
|
$ |
14.2 |
|
|
$ |
17.3 |
|
_______________
Income from continuing operations attributable
to Chart Industries, Inc., adjusted is not a measure of financial
performance under U.S. GAAP and should not be considered as an
alternative to net income in accordance with U.S. GAAP. Management
believes that Income from continuing operations attributable to
Chart Industries, Inc., adjusted, facilitates useful
period-to-period comparisons of our financial results and this
information is used by us in evaluating internal performance. Our
calculation of this non-GAAP measure may not be comparable to the
calculations of similarly titled measures reported by other
companies.
RECONCILIATION OF NET CASH PROVIDED BY
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO FREE CASH FLOW
(UNAUDITED) (Dollars in millions)
|
Three Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
June 30, 2020 |
Net cash
provided by operating activities from continuing operations |
$ |
26.5 |
|
|
$ |
48.3 |
|
|
48.5 |
|
Capital expenditures |
(6.1 |
) |
|
(11.4 |
) |
|
(10.6 |
) |
Free cash flow (non-GAAP) |
$ |
20.4 |
|
|
$ |
36.9 |
|
|
$ |
37.9 |
|
_______________
Free cash flow is not a measure of financial
performance under U.S. GAAP and should not be considered as an
alternative to net cash provided by operating activities from
continuing operations in accordance with U.S. GAAP. Management
believes that free cash flow facilitates useful period-to-period
comparisons of our financial results and this information is used
by us in evaluating internal performance. Our calculation of this
non-GAAP measure may not be comparable to the calculations of
similarly titled measures reported by other companies.
CHART INDUSTRIES, INC. AND
SUBSIDIARIES RECONCILIATION OF GROSS PROFIT TO
ADJUSTED GROSS PROFIT AND SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES TO ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
(UNAUDITED) (CONTINUED) (Dollars in
millions)
|
Three Months Ended September 30, 2020 |
|
D&S East |
|
D&S West |
|
E&C Cryogenics |
|
E&C FinFans |
|
Intersegment Eliminations |
|
Corporate |
|
Consolidated |
Sales |
$ |
85.1 |
|
|
|
$ |
91.1 |
|
|
|
$ |
64.8 |
|
|
$ |
40.5 |
|
|
$ |
(8.3 |
) |
|
|
$ |
— |
|
|
|
$ |
273.2 |
|
|
Gross profit
as reported (U.S. GAAP) |
19.6 |
|
|
|
28.5 |
|
|
|
21.3 |
|
|
9.2 |
|
|
— |
|
|
|
— |
|
|
|
78.6 |
|
|
Restructuring, transaction-related and other one-time costs |
0.2 |
|
|
|
0.8 |
|
|
|
0.2 |
|
|
1.4 |
|
|
— |
|
|
|
— |
|
|
|
2.6 |
|
|
Adjusted gross profit (non-GAAP) |
$ |
19.8 |
|
|
|
$ |
29.3 |
|
|
|
$ |
21.5 |
|
|
$ |
10.6 |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
81.2 |
|
|
Adjusted gross profit margin (non-GAAP) |
23.3 |
% |
|
|
32.2 |
% |
|
|
33.2 |
% |
|
26.2 |
% |
|
— |
|
|
|
— |
|
% |
|
29.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses as reported (U.S. GAAP) |
$ |
8.8 |
|
|
|
$ |
7.7 |
|
|
|
$ |
4.8 |
|
|
$ |
4.4 |
|
|
$ |
— |
|
|
|
$ |
15.4 |
|
|
|
$ |
41.1 |
|
|
Restructuring, transaction-related and other one-time costs |
(0.1 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(2.4 |
) |
|
|
(2.7 |
) |
|
Adjusted selling, general and administrative expenses
(non-GAAP) |
$ |
8.7 |
|
|
|
$ |
7.5 |
|
|
|
$ |
4.8 |
|
|
$ |
4.4 |
|
|
$ |
— |
|
|
|
$ |
13.0 |
|
|
|
$ |
38.4 |
|
|
CHART INDUSTRIES, INC. AND
SUBSIDIARIES RECONCILIATION OF GROSS PROFIT TO
ADJUSTED GROSS PROFIT AND SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES TO ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
(UNAUDITED) (CONTINUED) (Dollars in
millions)
|
Three Months Ended September 30, 2019 |
|
D&S East |
|
D&S West |
|
E&C Cryogenics |
|
E&C FinFans |
|
Intersegment Eliminations |
|
Corporate |
|
Consolidated |
Sales |
$ |
70.4 |
|
|
|
$ |
93.3 |
|
|
|
$ |
48.9 |
|
|
|
$ |
128.6 |
|
|
|
$ |
(3.2 |
) |
|
|
$ |
— |
|
|
|
$ |
338.0 |
|
|
Gross profit
as reported (U.S. GAAP) |
16.3 |
|
|
|
29.2 |
|
|
|
7.9 |
|
|
|
39.8 |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
92.9 |
|
|
Restructuring, transaction-related and other one-time costs |
0.2 |
|
|
|
1.3 |
|
|
|
1.0 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
|
3.1 |
|
|
Adjusted gross profit (non-GAAP) |
$ |
16.5 |
|
|
|
$ |
30.5 |
|
|
|
$ |
8.9 |
|
|
|
$ |
40.4 |
|
|
|
$ |
(0.3 |
) |
|
|
$ |
— |
|
|
|
$ |
96.0 |
|
|
Adjusted gross profit margin (non-GAAP) |
23.4 |
% |
|
|
32.7 |
% |
|
|
18.2 |
% |
|
|
31.4 |
% |
|
|
9.4 |
% |
|
|
— |
% |
|
|
28.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses as reported (U.S. GAAP) |
$ |
8.8 |
|
|
|
$ |
10.2 |
|
|
|
$ |
5.1 |
|
|
|
$ |
10.7 |
|
|
|
$ |
— |
|
|
|
$ |
20.9 |
|
|
|
$ |
55.7 |
|
|
Restructuring, transaction-related and other one-time costs |
(0.2 |
) |
|
|
(0.6 |
) |
|
|
(0.1 |
) |
|
|
(0.7 |
) |
|
|
— |
|
|
|
(6.1 |
) |
|
|
(7.7 |
) |
|
Adjusted selling, general and administrative expenses
(non-GAAP) |
$ |
8.6 |
|
|
|
$ |
9.6 |
|
|
|
$ |
5.0 |
|
|
|
$ |
10.0 |
|
|
|
$ |
— |
|
|
|
$ |
14.8 |
|
|
|
$ |
48.0 |
|
|
CHART INDUSTRIES, INC. AND
SUBSIDIARIES RECONCILIATION OF GROSS PROFIT TO
ADJUSTED GROSS PROFIT AND SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES TO ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
(UNAUDITED) (CONTINUED) (Dollars in
millions)
|
Three Months Ended June 30, 2020 |
|
D&S East |
|
D&S West |
|
E&C Cryogenics |
|
E&C FinFans |
|
Intersegment Eliminations |
|
Corporate |
|
Consolidated |
Sales |
$ |
79.7 |
|
|
|
$ |
86.0 |
|
|
|
$ |
63.7 |
|
|
|
$ |
64.1 |
|
|
|
$ |
(3.9 |
) |
|
|
$ |
— |
|
|
|
$ |
289.6 |
|
|
Gross profit
as reported (U.S. GAAP) |
15.0 |
|
|
|
29.7 |
|
|
|
21.4 |
|
|
|
17.2 |
|
|
|
— |
|
|
|
— |
|
|
|
83.3 |
|
|
Restructuring, transaction-related and other one-time costs |
0.7 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
2.0 |
|
|
|
— |
|
|
|
— |
|
|
|
3.9 |
|
|
Adjusted gross profit (non-GAAP) |
$ |
15.7 |
|
|
|
$ |
30.3 |
|
|
|
$ |
22.0 |
|
|
|
$ |
19.2 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
87.2 |
|
|
Adjusted gross profit margin (non-GAAP) |
19.7 |
% |
|
|
35.2 |
% |
|
|
34.5 |
% |
|
|
30.0 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
30.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses as reported (U.S. GAAP) |
$ |
6.1 |
|
|
|
$ |
8.3 |
|
|
|
$ |
6.3 |
|
|
|
$ |
6.2 |
|
|
|
$ |
— |
|
|
|
$ |
16.6 |
|
|
|
$ |
43.5 |
|
|
Restructuring, transaction-related and other one-time costs |
(1.1 |
) |
|
|
(0.8 |
) |
|
|
(0.3 |
) |
|
|
(1.1 |
) |
|
|
— |
|
|
|
(1.4 |
) |
|
|
(4.7 |
) |
|
Adjusted selling, general and administrative expenses
(non-GAAP) |
$ |
5.0 |
|
|
|
$ |
7.5 |
|
|
|
$ |
6.0 |
|
|
|
$ |
5.1 |
|
|
|
$ |
— |
|
|
|
$ |
15.2 |
|
|
|
$ |
38.8 |
|
|
_______________
Adjusted gross profit, adjusted gross profit
margin and adjusted selling, general and administrative expenses
are not measures of financial performance under U.S. GAAP and
should not be considered as an alternative to gross profit, gross
profit margin and selling, general and administrative expenses in
accordance with U.S. GAAP. Management believes that adjusted gross
profit, adjusted gross profit margin and adjusted selling, general
and administrative expenses facilitate useful period-to-period
comparisons of our financial results and this information is used
by us in evaluating internal performance. Our calculations of these
non-GAAP measures may not be comparable to the calculations of
similarly titled measures reported by other companies.
Grafico Azioni Chart Industries (NASDAQ:GTLS)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Chart Industries (NASDAQ:GTLS)
Storico
Da Set 2023 a Set 2024