- 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
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
On
We are also excited to announce that we will participate in a
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
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
Backlog of
Water treatment contributed to our third quarter 2020 D&S specialty product orders of
Year-to-date through
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
Third quarter 2020 sales of
- 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 forSingapore andTaiwan , 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
OUTLOOK 2020
Full year 2020 sales are expected to be approximately
OUTLOOK 2021
Full year 2021 sales are expected to be approximately
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
USE OF NON-GAAP FINANCIAL INFORMATION
This presentation contains non-GAAP financial information, including adjusted earnings per diluted share, net income attributable to
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
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
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:
Director of Investor Relations |
832-524-7489 |
wade.suki@chartindustries.com |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars and shares in millions, except per share amounts)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
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 | $ | 21.7 | $ | 18.8 | $ | 20.2 | $ | 50.3 | $ | 34.0 | |||||||||
Net income attributable to | |||||||||||||||||||
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 | $ | 21.7 | $ | 18.8 | $ | 20.2 | $ | 50.3 | $ | 34.0 | |||||||||
Basic earnings per common share attributable to | |||||||||||||||||||
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 | $ | 0.62 | $ | 0.53 | $ | 0.57 | $ | 1.42 | $ | 1.02 | |||||||||
Diluted earnings per common share attributable to | |||||||||||||||||||
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 | $ | 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 endedSeptember 30, 2020 , respectively. - Sales and operating income were
$60.1 and$2.6 for both the three and nine months endedSeptember 30, 2019 , respectively.
(2) Includes depreciation expense of:
$9.9 ,$10.0 and$9.3 for the three months endedSeptember 30, 2020 ,September 30, 2019 andJune 30, 2020 , respectively, and$28.8 and$27.0 for the nine months endedSeptember 30, 2020 and 2019, respectively.
(3) Includes restructuring costs of:
$1.9 ,$1.5 , and$5.6 for the three months endedSeptember 30, 2020 ,September 30, 2019 andJune 30, 2020 , respectively, and$12.7 and$13.3 for the nine months endedSeptember 30, 2020 and 2019, respectively.
(4) Includes a
(5) Includes transaction-related costs of
(6) Includes transaction-related costs of
(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
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in millions)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
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 | ) | ||||||||||||
(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
(2) Includes
(3) Includes depreciation expense of
(4) Includes capital expenditures of
(5) Includes restricted cash and restricted cash equivalents of
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in millions)
2020 | 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 | |||||
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 |
OPERATING SEGMENTS (UNAUDITED)
(Dollars in millions)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
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 endedSeptember 30, 2020 , respectively. - Sales and operating income were
$60.1 and$2.6 for both the three and nine months endedSeptember 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
(5) Includes transaction-related costs of
(6) Includes transaction-related costs of
ORDERS AND BACKLOG (UNAUDITED)
(Dollars in millions)
Three Months Ended | ||||||||||||
2020 | 2019 | 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 | |||||||||||||
2020 | 2019 | 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
(2) Included in the E&C Cryogenics backlog for all periods presented is approximately
RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED)
(Dollars in millions, except per share amounts)
Three Months Ended | |||||||||||
Earnings per diluted share as reported ( | $ | 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 | — | — | (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 | |||||||||||
Earnings per diluted share as reported ( | $ | 0.17 | $ | 0.13 | $ | 0.18 | |||||
Adjusted earnings per diluted share (non-GAAP) – Discontinued Operations | $ | 0.17 | $ | 0.13 | $ | 0.18 |
Three Months Ended | |||||||||||
Earnings per diluted share as reported ( | $ | 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 | — | — | (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
(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
Adjusted earnings per diluted share is not a measure of financial performance under
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 | |||||||||||
Income from continuing operations attributable to | $ | 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 | $ | 11.8 | $ | 14.2 | $ | 17.3 |
_______________
Income from continuing operations attributable to
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO FREE CASH FLOW (UNAUDITED)
(Dollars in millions)
Three Months Ended | |||||||||||
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
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 | ||||||||||||||||||||||||||||||||
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 ( | 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 ( | $ | 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 |
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 | ||||||||||||||||||||||||||||||||||
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 ( | 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 ( | $ | 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 |
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 | ||||||||||||||||||||||||||||||||||
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 ( | 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 ( | $ | 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
Source:
2020 GlobeNewswire, Inc., source