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Business Wire 20-Feb-2019 4:15 PM
Regulatory News:
TechnipFMC plc (NYSE:FTI) (Paris: FTI) (ISIN:GB00BDSFG982) today reported fourth quarter 2018 results.
Total Company revenue was $3,323 million. The Company reported a net loss of $2,259.3 million, or $5.00 per diluted share. These results included total after-tax charges and credits of $2,220.3 million, or $4.91 per diluted share. Adjusted net loss was $39 million, or $0.09 per diluted share.
Total after-tax charges and credits in the quarter of $2,220.3 million were as follows:
1) After-tax charges and credits impacting operating results of $2,006.1 million, which included the following (Exhibit 8):
2) Charges and credits impacting the tax provision of $214.2 million, which included the following (Exhibit 8):
Adjusted EBITDA, which excludes pre-tax charges and credits, was $342.4 million; adjusted EBITDA margin was 10.3 percent (Exhibit 9).
Other significant pre-tax items impacting the quarter, for which we do not provide guidance, included the following:
Summary Financial Statements – Fourth Quarter 2018Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Three Months Ended
(In millions, except per share amounts) |
December 31,2018 |
December 31,2017 |
Change | ||||
Revenue | $3,323.0 | $3,683.0 | (9.8%) | ||||
Net income (loss) | $(2,259.3) | $(153.9) | n/m | ||||
Diluted earnings (loss) per share | $(5.00) | $(0.33) | n/m | ||||
Adjusted EBITDA | $342.4 | $525.0 | (34.8%) | ||||
Adjusted EBITDA margin | 10.3% | 14.3% | (395 bps) | ||||
Adjusted net income (loss) | $(39.0) | $90.9 | n/m | ||||
Adjusted diluted earnings (loss) per share | $(0.09) | $0.20 | n/m | ||||
Inbound orders | $2,925.1 | $2,991.9 | (2.2%) | ||||
Backlog | $14,560.0 | $12,982.8 | 12.1% | ||||
As previously disclosed, we are cooperating with the U.S., Brazilian, and French authorities in their investigations of potential violations of anticorruption laws relating to historical projects in Brazil, Equatorial Guinea, and Ghana, and Unaoil contracts. We have been informed that these authorities have been coordinating their investigations, which could result in a global resolution.
These matters have progressed to a point where a probable estimate of the aggregate settlement amount with all authorities is $280 million for which we have taken a provision in the fourth quarter and year ended December 31, 2018. These matters involve negotiations with law enforcement authorities in three separate jurisdictions, and there is no certainty that a global settlement will be reached or that settlement will not exceed the provision.
Full Year 2018 Results
Total Company revenue was $12,552.9 million. The Company reported a net loss of $1,921.6 million, or $4.20 per diluted share. These results included total after-tax charges and credits of $2,298.7 million, or $5.02 per diluted share. Adjusted net income was $377.1 million, or $0.82 per diluted share.
Total after-tax charges and credits for the full year of $2,298.7 million were as follows:
1) After-tax charges and credits impacting the operating results of $2,073.1 million, which included the following (Exhibit 8):
2) Charges and credits impacting the tax provision of $225.6 million, which included the following (Exhibit 8):
Adjusted EBITDA, which excludes charges and credits, was $1,536.8 million; adjusted EBITDA margin was 12.2 percent (Exhibit 10).
Other significant pre-tax items impacting the year, for which we do not provide guidance, included the following:
Summary Financial Statements – Full Year 2018Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Twelve Months Ended
(In millions, except per share amounts) |
December 31,2018 |
December 31,2017 |
Change | ||||
Revenue | $12,552.9 | $15,056.9 | (16.6%) | ||||
Net income (loss) | $(1,921.6) | $113.3 | n/m | ||||
Diluted earnings (loss) per share | $(4.20) | $0.24 | n/m | ||||
Adjusted EBITDA | $1,536.8 | $1,983.0 | (22.5%) | ||||
Adjusted EBITDA margin | 12.2% | 13.2% | (93 bps) | ||||
Adjusted net income (loss) | $377.1 | $603.5 | (37.5%) | ||||
Adjusted diluted earnings (loss) per share | $0.82 | $1.29 | (36.4%) | ||||
Inbound orders | $14,291.0 | $10,196.3 | 40.2% | ||||
Backlog | $14,560.0 | $12,982.8 | 12.1% | ||||
Doug Pferdehirt, CEO of TechnipFMC, stated, "Many significant achievements contributed to our success in 2018. We exceeded total Company financial objectives for a second consecutive year, largely driven by continued strength in Onshore/Offshore execution as evidenced by early start-up of Trains 2 and 3 for Yamal LNG. We also achieved notable milestones in Subsea, including the successful delivery of the industry's first full-cycle iEPCI™ projects and commercialization of our new Subsea 2.0™ product platform."
"Total Company orders were $14.3 billion for the full year, a 40 percent increase compared to the prior year. Orders exceeded revenues in all segments, with Onshore/Offshore securing several key awards in the downstream and petrochemical sectors, driving a 95 percent increase in orders year-over-year. In Surface Technologies, strength outside the Americas drove orders 36 percent higher than the previous year."
"During the quarter, we progressed on outstanding investigations of historical projects and took a $280 million provision as a probable estimate for the aggregate settlement. We continue to cooperate with all authorities in order to conclude this matter."
Pferdehirt continued, "In Subsea, the market is rapidly embracing greater project integration. Already in 2019, we have secured new iEPCI™ projects with BP and Lundin – both first-time iEPCI™ customers. We are confident that our unique offering and experience will lead to further growth in our iEPCI™ backlog in the coming year. We also anticipate an acceleration in subsea services growth, driven by both internal investment and increased market activity."
"The resurgence in LNG activity is confirmed with a new wave of significant LNG project opportunities. Selectivity remains at the core of our project success. With our global footprint, we are tracking greenfield and brownfield projects across four continents, representing a substantial portfolio of opportunities. We will leverage our most successful reference projects, incumbent positions, and client relationships toward those projects that are most strategic to TechnipFMC and offer the highest probability of successful execution."
"In Surface Technologies, strong order and backlog growth in the second half of 2018 further strengthens our conviction in increased activity outside of the Americas, particularly in the Middle East. Activity in North America continues to moderate. However, we anticipate growth in the second half of 2019, driven in part by additional pipeline capacity in the Permian region."
"Disciplined capital allocation remains a priority. Capital expenditures are focused on the best opportunities for growth and returns across the markets we serve. In 2018, we also returned $681 million to shareholders through dividend and share repurchase activity."
Pferdehirt concluded, "Through the hard work and dedication of the more than 37,000 women and men of TechnipFMC, we have done more than simply navigate the industry downturn. We have successfully pioneered a completely new integrated subsea model and restored growth in total Company backlog, positioning us well for further success in 2019 and beyond."
Operational and Financial Highlights – Fourth Quarter 2018
Subsea |
Financial HighlightsReconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Three Months Ended
(In millions) |
December 31,2018 |
December 31,2017 |
Change | ||||
Revenue | $1,233.3 | $1,292.2 | (4.6%) | ||||
Operating profit (loss) | $(1,739.5) | $67.4 | n/m | ||||
Adjusted EBITDA | $148.5 | $244.1 | (39.2%) | ||||
Adjusted EBITDA margin | 12.0% | 18.9% | (685 bps) | ||||
Inbound orders | $880.6 | $1,724.8 | (48.9%) | ||||
Backlog | $5,999.6 | $6,203.9 | (3.3%) | ||||
Subsea reported fourth quarter revenue of $1,233.3 million. Revenue was down 4.6 percent from the prior year as projects in Africa were completed or progressed further towards completion, largely offset by increased activity in North America, Asia Pacific, and South America.
In the quarter, the Company recorded pre-tax asset impairment charges totaling $1,775.6 million in Subsea. These non-cash charges resulted from our annual fair value assessment of our business and assets; these include impairments to goodwill and fixed assets, including a reduction in the carrying values of certain vessels within our fleet.
Subsea reported an operating loss of $1,739.5 million; included in the operating results are total pre-tax charges of $1,803.1 million. Adjusted EBITDA was $148.5 million with a margin of 12 percent. Adjusted EBITDA declined versus the prior-year quarter primarily due to the execution of more competitively priced backlog, partially offset by merger synergies and other cost reduction activities.
Vessel utilization rate for the fourth quarter was 62 percent, down from 69 percent in the third quarter and 65 percent in the prior-year quarter.
Fourth Quarter Subsea Highlights
Subsea inbound orders for the quarter were $880.6 million, reflecting the continued strength in small project activity and subsea services. Full-year inbound orders were $5,178.5 million, resulting in a book-to-bill of 1.1.
Subsea
Estimated Backlog Scheduling as of December 31, 2018 (In millions) |
Consolidatedbacklog* |
Non-consolidatedbacklog** |
|||
2019 | $3,379.2 | $184.7 | |||
2020 | $1,382.1 | $135.7 | |||
2021 and beyond | $1,238.3 | $653.6 | |||
Total | $5,999.6 | $974.0 | |||
* Backlog does not capture all revenue potential for subsea services. | |||||
** Non-consolidated backlog reflects the proportional share of backlog related to joint venturesthat is not consolidated due to our minority ownership position. |
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Onshore/Offshore |
Financial HighlightsReconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Three Months Ended
(In millions) |
December 31,2018 |
December 31,2017 |
Change | ||||
Revenue | $1,672.4 | $2,019.5 | (17.2%) | ||||
Operating profit | $206.4 | $257.2 | (19.8%) | ||||
Adjusted EBITDA | $217.2 | $294.5 | (26.2%) | ||||
Adjusted EBITDA margin | 13.0% | 14.6% | (160 bps) | ||||
Inbound orders | $1,609.4 | $874.2 | 84.1% | ||||
Backlog | $8,090.5 | $6,369.1 | 27.0% | ||||
Onshore/Offshore reported fourth quarter revenue of $1,672.4 million. Revenue declined 17.2 percent from the prior-year quarter as we moved closer to completion on major projects, primarily Yamal LNG.
Onshore/Offshore reported operating profit of $206.4 million; adjusted EBITDA was $217.2 million with a margin of 13 percent. Operating profit declined 19.8 percent versus the prior-year quarter, primarily due to the revenue decline and a shift in revenue mix to lower margin project work. Strong project execution continued on Yamal LNG, with all three trains now handed over to the customer; operating results in the period also benefitted from a bonus for completion of further milestones on the project, including Train 3. These same factors drove the year-over-year decline in adjusted EBITDA.
Fourth Quarter Onshore/Offshore Highlights
Onshore/Offshore inbound orders for the quarter were $1,609.4 million. Full-year inbound orders were $7,425.9 million, resulting in a book-to-bill of 1.2. The following announced award was included in the period:
The following award was announced during the period and will be included in the first quarter 2019 inbound orders:
Onshore/Offshore
Estimated Backlog Scheduling as of December 31, 2018 (In millions) |
Consolidatedbacklog |
Non-consolidatedbacklog* |
|||
2019 | $5,335.1 | $676.1 | |||
2020 | $1,732.9 | $587.7 | |||
2021 and beyond | $1,022.5 | $484.7 | |||
Total | $8,090.5 | $1,748.5 | |||
* Non-consolidated backlog reflects the proportional share of backlog related to joint venturesthat is not consolidated due to our minority ownership position. |
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Surface Technologies |
Financial HighlightsReconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Three Months Ended
(In millions) |
December 31,2018 |
December 31,2017 |
Change | ||||
Revenue | $417.3 | $372.3 | 12.1% | ||||
Operating profit | $38.8 | $53.3 | (27.2%) | ||||
Adjusted EBITDA | $64.9 | $75.8 | (14.4%) | ||||
Adjusted EBITDA margin | 15.6% | 20.4% | (481 bps) | ||||
Inbound orders | $435.1 | $392.9 | 10.7% | ||||
Backlog | $469.9 | $409.8 | 14.7% | ||||
Surface Technologies reported fourth quarter revenue of $417.3 million. Revenue increased 12.1 percent from the prior-year quarter. Increased drilling activity in North America as well as market share gains drove wellhead product sales higher; sales of hydraulic fracturing rental equipment also moved higher as market share gains more than offset the market decline in completions activity. International revenue growth was driven by pressure control sales and aftermarket services.
Surface Technologies reported operating profit of $38.8 million; adjusted EBITDA was $64.9 million with a margin of 15.6 percent. Operating profit decreased versus the prior-year quarter primarily due to the rapid decline in flowline product sales, which resulted in an unfavorable product mix. The same factor drove the year-over-year decrease in adjusted EBITDA.
Fourth Quarter Surface Technologies Highlights
Inbound orders for the quarter were $435.1 million. Full-year inbound orders were $1,686.6 million, resulting in a book-to-bill of 1.1.
Backlog was $469.9 million. Given the short-cycle nature of the business, most orders are quickly converted into sales revenue; longer contracts are typically converted within twelve months.
Corporate and Other Items
Corporate expense in the fourth quarter was $393.6 million. This includes a provision of $280 million as a probable estimate for the aggregate settlement of investigations regarding historical projects, and charges and credits totaling $23.3 million relating to merger and integration costs, restructuring and other severance charges, and purchase price accounting adjustments. Excluding charges and credits, corporate expense was $90.3 million; this included $38.7 million of foreign exchange losses.
Net interest expense was $116.6 million in the quarter, which included an increase in the liability payable to joint venture partners of $108.8 million.
The Company recorded a tax provision during the quarter of $242 million. The provision was impacted by a true-up for U.S. tax reform of $11.8 million and a valuation allowance of $202.4 million.
Total depreciation and amortization for the quarter was $137.9 million, including depreciation and amortization related to purchase price accounting for the merger of $24 million.
Capital expenditures were $112.9 million during the quarter; expenditures were $368.1 million for the full year.
The Company repurchased 2.5 million shares during the quarter for total consideration of $58.4 million. During the quarter, the Company completed the $500 million share repurchase program that was implemented in October 2017. The Board of Directors approved an additional $300 million share repurchase program in December 2018.
Cash flow from operations in the quarter was $159.3 million. The Company ended the period with cash and cash equivalents of $5,540 million; net cash was $1,348.3 million.
2019 Financial Guidance1
The Company's full-year guidance for 2019 can be found in the table below. The following update is reflected in the outlook:
2019 Guidance *Updated February 20, 2019 | ||||
Subsea | Onshore/Offshore | Surface Technologies | ||
Revenue in a range of$5.4 – 5.7 billion |
Revenue in a range of$5.7 – 6.0 billion |
Revenue in a range of$1.7 – 1.8 billion |
||
EBITDA margin at least11% (excludingamortization relatedimpact of purchaseprice accounting, andother charges andcredits) |
EBITDA margin at least12% (excludingamortization relatedimpact of purchaseprice accounting, andother charges andcredits) |
EBITDA margin at least17% (excludingamortization relatedimpact of purchaseprice accounting, andother charges andcredits) |
||
|
||||
TechnipFMC | ||||
Corporate expense, net $160 – 170 million for the full year (excluding the impact of foreign currency fluctuations) | ||||
Net interest expense $40 – 60 million for the full year (excluding the impact of revaluation of partners' redeemable financial liability) | ||||
Tax rate 28 – 32% for the full year (excluding the impact of discrete items) | ||||
Capital expenditures* approximately $350 million for the full year | ||||
Cash flow from operating activities positive for the full year | ||||
Merger integration and restructuring costs approximately $50 million for the full year | ||||
Cost synergies $450 million total savings ($220m exit run-rate 12/31/17, $400m exit run-rate 12/31/18, $450m exit run-rate 12/31/19) |
_______________1 Our guidance measures adjusted EBITDA margin, corporate expense, net (excluding the impact of foreign currency fluctuations), net interest expense excluding the impact of revaluation of partners' redeemable financial liability, and tax rate (excluding the impact of discrete items) are non-GAAP financial measures. We are unable to provide a reconciliation to comparable GAAP financial measures on a forward-looking basis without unreasonable effort because of the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from each such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.
Teleconference
The Company will host a teleconference on Thursday, February 21, 2019 to discuss the fourth quarter 2018 financial results. The call will begin at 1 p.m. London time (8 a.m. New York time). Dial-in information and an accompanying presentation can be found at www.technipfmc.com.
Webcast access will also be available on our website prior to the start of the call. An archived audio replay will be available after the event at the same website address. In the event of a disruption of service or technical difficulty during the call, information will be posted on our website.
###
About TechnipFMC
TechnipFMC is a global leader in subsea, onshore/offshore, and surface projects. With our proprietary technologies and production systems, integrated expertise, and comprehensive solutions, we are transforming our clients' project economics.
We are uniquely positioned to deliver greater efficiency across project lifecycles from concept to project delivery and beyond. Through innovative technologies and improved efficiencies, our offering unlocks new possibilities for our clients in developing their oil and gas resources.
Each of our more than 37,000 employees is driven by a steady commitment to clients and a culture of purposeful innovation, challenging industry conventions, and rethinking how the best results are achieved.
To learn more about us and how we are enhancing the performance of the world's energy industry, go to TechnipFMC.com and follow us on Twitter @TechnipFMC.
This communication contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Words such as "guidance," "confident," "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," "may," "will," "likely," "predicated," "estimate," "outlook" and similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections, including the following known material factors:
We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.
TECHNIPFMC plc AND CONSOLIDATED SUBSIDIARIESGAAP FINANCIAL STATEMENTS
The U.S. GAAP financial statements for TechnipFMC plc and consolidated subsidiaries are provided on the following pages. The financial results reflect the following information:
Therefore, the results for the twelve months ended December 31, 2017:
1. Include the results of Technip for the full period;2. Include the results of FMC Technologies for the period January 17 to December 31, 2017; revenue of $112.9 million during the period from January 1 to January 16, 2017 were excluded, of which approximately 70 percent was reported in Subsea and the remainder in Surface Technologies.
When referencing these financial statements, adjusted EBITDA is also used to describe EBITDA excluding amortization related to the impact of purchase price accounting and other charges and credits.
Exhibit 1 |
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TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) |
||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue | $ | 3,323.0 | $ | 3,683.0 | $ | 12,552.9 | $ | 15,056.9 | ||||||||
Costs and expenses | 4,943.3 | 3,387.1 | 13,470.5 | 14,091.7 | ||||||||||||
(1,620.3 | ) | 295.9 | (917.6 | ) | 965.2 | |||||||||||
Other (expense) income, net | (267.6 | ) | (52.9 | ) | (209.6 | ) | 29.7 | |||||||||
Income (loss) before net interest expense and income taxes | (1,887.9 | ) | 243.0 | (1,127.2 | ) | 994.9 | ||||||||||
Net interest expense | (116.6 | ) | (74.7 | ) | (360.9 | ) | (315.2 | ) | ||||||||
Income (loss) before income taxes | (2,004.5 | ) | 168.3 | (1,488.1 | ) | 679.7 | ||||||||||
Provision for income taxes | 242.0 | 295.8 | 422.7 | 545.5 | ||||||||||||
Net income (loss) | (2,246.5 | ) | (127.5 | ) | (1,910.8 | ) | 134.2 | |||||||||
Net loss (income) attributable to noncontrolling interests | (12.8 | ) | (26.4 | ) | (10.8 | ) | (20.9 | ) | ||||||||
Net income (loss) attributable to TechnipFMC plc | $ | (2,259.3 | ) | $ | (153.9 | ) | $ | (1,921.6 | ) | $ | 113.3 | |||||
Earnings (loss) per share attributable to TechnipFMC plc: | ||||||||||||||||
Basic | $ | (5.00 | ) | $ | (0.33 | ) | $ | (4.20 | ) | $ | 0.24 | |||||
Diluted | $ | (5.00 | ) | $ | (0.33 | ) | $ | (4.20 | ) | $ | 0.24 | |||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 452.0 | 466.2 | 458.0 | 466.7 | ||||||||||||
Diluted | 452.0 | 466.2 | 458.0 | 468.3 | ||||||||||||
Cash dividends declared per share | $ | 0.13 | $ | 0.13 | $ | 0.52 | $ | 0.13 | ||||||||
Exhibit 2 |
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TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES BUSINESS SEGMENT DATA (In millions) |
||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue |
||||||||||||||||
Subsea | $ | 1,233.3 | $ | 1,292.2 | $ | 4,840.0 | $ | 5,877.4 | ||||||||
Onshore/Offshore | 1,672.4 | 2,019.5 | 6,120.7 | 7,904.5 | ||||||||||||
Surface Technologies | 417.3 | 372.3 | 1,592.2 | 1,274.6 | ||||||||||||
Other revenue | — | (1.0 | ) | — | 0.4 | |||||||||||
$ | 3,323.0 | $ | 3,683.0 | $ | 12,552.9 | $ | 15,056.9 | |||||||||
Income before income taxes |
||||||||||||||||
Segment operating profit (loss) |
||||||||||||||||
Subsea | $ | (1,739.5 | ) | $ | 67.4 | $ | (1,529.5 | ) | $ | 460.5 | ||||||
Onshore/Offshore | 206.4 | 257.2 | 824.0 | 810.9 | ||||||||||||
Surface Technologies | 38.8 | 53.3 | 172.8 | 82.7 | ||||||||||||
Total segment operating profit (loss) | (1,494.3 | ) | 377.9 | (532.7 | ) | 1,354.1 | ||||||||||
Corporate items |
||||||||||||||||
Corporate expense, net (1) | (393.6 | ) | (134.9 | ) | (594.5 | ) | (359.2 | ) | ||||||||
Net interest expense | (116.6 | ) | (74.7 | ) | (360.9 | ) | (315.2 | ) | ||||||||
Total corporate items | (510.2 | ) | (209.6 | ) | (955.4 | ) | (674.4 | ) | ||||||||
Net income (loss) before income taxes (2) | $ | (2,004.5 | ) | $ | 168.3 | $ | (1,488.1 | ) | $ | 679.7 | ||||||
(1) Corporate expense, net primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses.(2) Includes amounts attributable to noncontrolling interests.
Exhibit 3 |
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TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES BUSINESS SEGMENT DATA (In millions, unaudited) |
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Three Months Ended | Year Ended | |||||||||||||||||||
Inbound Orders (1) |
December 31, | December 31, | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Subsea | $ | 880.6 | $ | 1,724.8 | $ | 5,178.5 | $ | 5,143.6 | ||||||||||||
Onshore/Offshore | 1,609.4 | 874.2 | 7,425.9 | 3,812.9 | ||||||||||||||||
Surface Technologies | 435.1 | 392.9 | 1,686.6 | 1,239.8 | ||||||||||||||||
Total inbound orders | $ | 2,925.1 | $ | 2,991.9 | $ | 14,291.0 | $ | 10,196.3 | ||||||||||||
Order Backlog (2) |
December 31, | |||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
Subsea | $ | 5,999.6 | $ | 6,203.9 | ||||||||||||||||
Onshore/Offshore | 8,090.5 | 6,369.1 | ||||||||||||||||||
Surface Technologies | 469.9 | 409.8 | ||||||||||||||||||
Total order backlog | $ | 14,560.0 | $ | 12,982.8 | ||||||||||||||||
(1) Inbound orders represent the estimated sales value of confirmed customer orders received during the reporting period.(2) Order backlog is calculated as the estimated sales value of unfilled, confirmed customer orders at the reporting date.
Exhibit 4 |
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TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions) |
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(Unaudited) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 5,540.0 | $ | 6,737.4 | |||
Trade receivables, net | 2,644.7 | 1,484.4 | |||||
Contract assets | 1,295.0 | 1,755.5 | |||||
Inventories, net | 1,251.2 | 987.0 | |||||
Other current assets | 1,270.1 | 2,012.8 | |||||
Total current assets | 12,001.0 | 12,977.1 | |||||
Property, plant and equipment, net | 3,259.8 | 3,871.5 | |||||
Goodwill | 7,607.6 | 8,929.8 | |||||
Intangible assets, net | 1,176.7 | 1,333.8 | |||||
Other assets | 959.2 | 1,151.5 | |||||
Total assets | $ | 25,004.3 | $ | 28,263.7 | |||
Short-term debt and current portion of long-term debt | $ | 67.4 | $ | 77.1 | |||
Accounts payable, trade | 2,600.3 | 3,958.7 | |||||
Contract liabilities | 4,260.1 | 3,314.2 | |||||
Other current liabilities | 2,426.4 | 2,479.4 | |||||
Total current liabilities | 9,354.2 | 9,829.4 | |||||
Long-term debt, less current portion | 4,124.3 | 3,777.9 | |||||
Other liabilities | 1,056.4 | 1,247.0 | |||||
Redeemable noncontrolling interest | 38.5 | — | |||||
TechnipFMC plc stockholders' equity | 10,399.6 | 13,387.9 | |||||
Noncontrolling interests | 31.3 | 21.5 | |||||
Total liabilities and equity | $ | 25,004.3 | $ | 28,263.7 | |||
Exhibit 5 |
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TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) |
||||||||
(Unaudited) | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2018 | 2017 | |||||||
Cash provided (required) by operating activities | ||||||||
Net income (loss) | $ | (1,910.8 | ) | $ | 134.2 | |||
Adjustments to reconcile net income (loss) to cash provided (required) by operating activities | ||||||||
Depreciation | 367.8 | 370.2 | ||||||
Amortization | 182.6 | 244.5 | ||||||
Employee benefit plan and share-based compensation costs | 22.4 | 18.7 | ||||||
Deferred income tax provision (benefit), net | 48.8 | 141.6 | ||||||
Unrealized loss (gain) on derivative instruments and foreign exchange | 102.7 | (73.5 | ) | |||||
Impairments | 1,792.6 | 34.3 | ||||||
Income from equity affiliates, net of dividends received | (110.7 | ) | (37.9 | ) | ||||
Other | 571.8 | 4.7 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions | ||||||||
Trade receivables, net and contract assets | (839.1 | ) | 286.8 | |||||
Inventories, net | (339.4 | ) | 130.9 | |||||
Accounts payable, trade | (1,248.7 | ) | (525.8 | ) | ||||
Contract liabilities | 937.7 | (1,111.4 | ) | |||||
Income taxes payable (receivable), net | (190.7 | ) | (152.2 | ) | ||||
Other current assets and liabilities, net | 641.2 | 646.5 | ||||||
Other noncurrent assets and liabilities, net | (213.6 | ) | 99.1 | |||||
Cash provided (required) by operating activities | (185.4 | ) | 210.7 | |||||
Cash provided (required) by investing activities | ||||||||
Capital expenditures | (368.1 | ) | (255.7 | ) | ||||
Cash acquired in merger of FMC Technologies, Inc. and Technip S.A. | — | 1,479.2 | ||||||
Acquisitions, net of cash acquired | (104.9 | ) | — | |||||
Cash divested from deconsolidation | (6.7 | ) | — | |||||
Proceeds from sale of assets | 19.5 | 14.4 | ||||||
Other | — | 12.1 | ||||||
Cash provided (required) by investing activities | (460.2 | ) | 1,250.0 | |||||
Cash required by financing activities | ||||||||
Net decrease in short-term debt | (31.3 | ) | (106.4 | ) | ||||
Net increase in commercial paper | 496.6 | 234.9 | ||||||
Proceeds from issuance of long-term debt | (3.6 | ) | 25.7 | |||||
Repayments of long-term debt | — | (888.0 | ) | |||||
Payments related to taxes withheld on share-based compensation | — | (46.6 | ) | |||||
Purchase of ordinary shares | (442.6 | ) | (58.5 | ) | ||||
Dividends paid | (238.1 | ) | (60.6 | ) | ||||
Settlements of mandatorily redeemable financial liability | (225.8 | ) | (156.5 | ) | ||||
Other | — | 1.2 | ||||||
Cash required by financing activities | (444.8 | ) | (1,054.8 | ) | ||||
Effect of changes in foreign exchange rates on cash and cash equivalents | (107.0 | ) | 62.2 | |||||
Increase (decrease) in cash and cash equivalents | (1,197.4 | ) | 468.1 | |||||
Cash and cash equivalents, beginning of period | 6,737.4 | 6,269.3 | ||||||
Cash and cash equivalents, end of period | $ | 5,540.0 | $ | 6,737.4 | ||||
TECHNIPFMC plc AND CONSOLIDATED SUBSIDIARIESNON-GAAP FINANCIAL MEASURES
The Reconciliation of U.S. GAAP to non-GAAP financial measures for TechnipFMC plc and consolidated subsidiaries are provided on the following pages. The financial results reflect the following information:
The Non-GAAP results for the twelve months ended December 31, 2017:
1. Include the results of Technip for the full period;2. Include the results of FMC Technologies for the period January 17 to December 31, 2017; revenue of $112.9 million during the period from January 1 to January 16, 2017 were excluded, of which approximately 70 percent was reported in Subsea and the remainder in Surface Technologies.
When referencing these financial statements, adjusted EBITDA is also used to describe EBITDA excluding amortization related to the impact of purchase price accounting and other charges and credits.
Exhibit 6
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, unaudited)Charges and Credits
In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the fourth quarter 2018 Earnings Release also includes non-GAAP financial measures (as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended) and describes performance on a year-over-year basis against 2017 results and measures. Net income, excluding charges and credits, as well as measures derived from it (including Diluted EPS, excluding charges and credits; Income before net interest expense and taxes, excluding charges and credits ("Adjusted Operating profit"); Depreciation and amortization, excluding charges and credits; Earnings before net interest expense, income taxes, depreciation and amortization, excluding charges and credits ("Adjusted EBITDA"); and net cash) are non-GAAP financial measures. Management believes that the exclusion of charges and credits from these financial measures enables investors and management to more effectively evaluate TechnipFMC's operations and consolidated results of operations period-over-period, and to identify operating trends that could otherwise be masked or misleading to both investors and management by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered by investors in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of the most comparable financial measures under GAAP to the non-GAAP financial measures.
Three Months Ended | ||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||
Net income(loss)attributable toTechnipFMCplc |
Net loss(income)attributable tononcontrollinginterests |
Provision forincome taxes |
Net interestexpense |
Income (loss)before netinterestexpense andincome taxes(Operatingprofit) |
Depreciationandamortization |
Earnings(loss) beforenet interestexpense,income taxes,depreciationandamortization(EBITDA) |
||||||||||||||||||||||
TechnipFMC plc, as reported | $ | (2,259.3 | ) | $ | (12.8 | ) | $ | 242.0 | $ | (116.6 | ) | $ | (1,887.9 | ) | $ | 137.9 | $ | (1,750.0 | ) | |||||||||
Charges and (credits): | ||||||||||||||||||||||||||||
Impairment and other charges | 1,688.8 | — | 89.7 | — | 1,778.5 | — | 1,778.5 | |||||||||||||||||||||
Restructuring and other severance charges | 11.6 | — | 8.5 | — | 20.1 | — | 20.1 | |||||||||||||||||||||
Business combination transaction andintegration costs |
8.7 | — | 6.9 | — | 15.6 | — | 15.6 | |||||||||||||||||||||
Legal provision | 280.0 | — | — | — | 280.0 | — | 280.0 | |||||||||||||||||||||
Purchase price accounting adjustment | 17.0 | — | 5.2 | — | 22.2 | (24.0 | ) | (1.8 | ) | |||||||||||||||||||
Tax reform | 11.8 | — | (11.8 | ) | — | — | — | — | ||||||||||||||||||||
Valuation allowance | 202.4 | — | (202.4 | ) | — | — | — | — | ||||||||||||||||||||
Adjusted financial measures | $ | (39.0 | ) | $ | (12.8 | ) | $ | 138.1 | $ | (116.6 | ) | $ | 228.5 | $ | 113.9 | $ | 342.4 | |||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||
Net income(loss)attributable toTechnipFMCplc |
Net loss(income)attributable tononcontrollinginterests |
Provision forincome taxes |
Net interestexpense |
Income beforenet interestexpense andincome taxes(Operatingprofit) |
Depreciationandamortization |
Earningsbefore netinterestexpense,income taxes,depreciationandamortization(EBITDA) |
||||||||||||||||||||||
TechnipFMC plc, as reported | $ | (153.9 | ) | $ | (26.4 | ) | $ | 295.8 | $ | (74.7 | ) | $ | 243.0 | $ | 153.0 | $ | 396.0 | |||||||||||
Charges and (credits): | ||||||||||||||||||||||||||||
Impairment and other charges | 11.7 | — | 6.8 | — | 18.5 | — | 18.5 | |||||||||||||||||||||
Restructuring and other severance charges | 73.5 | — | 42.7 | — | 116.2 | — | 116.2 | |||||||||||||||||||||
Business combination transaction andintegration costs |
10.6 | — | 4.0 | — | 14.6 | — | 14.6 | |||||||||||||||||||||
Purchase price accounting adjustment | 10.8 | — | 4.0 | — | 14.8 | (35.1 | ) | (20.3 | ) | |||||||||||||||||||
Tax reform | 138.2 | — | (138.2 | ) | — | — | — | — | ||||||||||||||||||||
Adjusted financial measures | $ | 90.9 | $ | (26.4 | ) | $ | 215.1 | $ | (74.7 | ) | $ | 407.1 | $ | 117.9 | $ | 525.0 | ||||||||||||
Exhibit 7
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, unaudited)Charges and Credits
In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the fourth quarter 2018 Earnings Release also includes non-GAAP financial measures (as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended) and describes performance on a year-over-year basis against 2017 results and measures. Net income, excluding charges and credits, as well as measures derived from it (including Diluted EPS, excluding charges and credits; Income before net interest expense and taxes, excluding charges and credits ("Adjusted Operating profit"); Depreciation and amortization, excluding charges and credits; Earnings before net interest expense, income taxes, depreciation and amortization, excluding charges and credits ("Adjusted EBITDA"); and net cash) are non-GAAP financial measures. Management believes that the exclusion of charges and credits from these financial measures enables investors and management to more effectively evaluate TechnipFMC's operations and consolidated results of operations period-over-period, and to identify operating trends that could otherwise be masked or misleading to both investors and management by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered by investors in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of the most comparable financial measures under GAAP to the non-GAAP financial measures.
Year Ended | ||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||
Net income(loss)attributable toTechnipFMCplc |
Net loss(income)attributable tononcontrollinginterests |
Provision forincome taxes |
Net interestexpense |
Income (loss)before netinterestexpense andincome taxes(Operatingprofit) |
Depreciationandamortization |
Earnings(loss) beforenet interestexpense,income taxes,depreciationandamortization(EBITDA) |
||||||||||||||||||||||
TechnipFMC plc, as reported | $ | (1,921.6 | ) | $ | (10.8 | ) | $ | 422.7 | $ | (360.9 | ) | $ | (1,127.2 | ) | $ | 550.4 | $ | (576.8 | ) | |||||||||
Charges and (credits): | ||||||||||||||||||||||||||||
Impairment and other charges | 1,698.2 | — | 94.4 | — | 1,792.6 | — | 1,792.6 | |||||||||||||||||||||
Restructuring and other severance charges | 23.9 | — | 14.7 | — | 38.6 | — | 38.6 | |||||||||||||||||||||
Business combination transaction andintegration costs |
22.6 | — | 13.9 | — | 36.5 | — | 36.5 | |||||||||||||||||||||
Legal provision | 280.0 | — | — | — | 280.0 | — | 280.0 | |||||||||||||||||||||
Gain on divestitures | (19.5 | ) | — | (12.1 | ) | — | (31.6 | ) | — | (31.6 | ) | |||||||||||||||||
Purchase price accounting adjustment | 67.9 | — | 20.9 | — | 88.8 | (91.3 | ) | (2.5 | ) | |||||||||||||||||||
Tax reform | 11.8 | — | (11.8 | ) | — | — | — | — | ||||||||||||||||||||
Valuation allowance | 213.8 | — | (213.8 | ) | — | — | — | — | ||||||||||||||||||||
Adjusted financial measures | $ | 377.1 | $ | (10.8 | ) | $ | 328.9 | $ | (360.9 | ) | $ | 1,077.7 | $ | 459.1 | $ | 1,536.8 | ||||||||||||
Year Ended | |||||||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||
Net incomeattributable toTechnipFMCplc |
Net loss(income)attributable tononcontrollinginterests |
Provision forincome taxes |
Net interestexpense |
Income beforenet interestexpense andincome taxes(Operatingprofit) |
Depreciationandamortization |
Earningsbefore netinterestexpense,income taxes,depreciationandamortization(EBITDA) |
|||||||||||||||||||||
TechnipFMC plc, as reported | $ | 113.3 | $ | (20.9 | ) | $ | 545.5 | $ | (315.2 | ) | $ | 994.9 | $ | 614.7 | $ | 1,609.6 | |||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 17.2 | — | 10.3 | — | 27.5 | — | 27.5 | ||||||||||||||||||||
Restructuring and other severance charges | 102.6 | — | 61.4 | — | 164.0 | — | 164.0 | ||||||||||||||||||||
Business combination transaction andintegration costs |
63.7 | — | 38.1 | — | 101.8 | — | 101.8 | ||||||||||||||||||||
Change in accounting estimate | 16.0 | — | 5.9 | — | 21.9 | — | 21.9 | ||||||||||||||||||||
Purchase price accounting adjustment | 152.5 | — | 56.4 | 0.3 | 208.6 | (150.4 | ) | 58.2 | |||||||||||||||||||
Tax reform | 138.2 | — | (138.2 | ) | — | — | — | — | |||||||||||||||||||
Adjusted financial measures | $ | 603.5 | $ | (20.9 | ) | $ | 579.4 | $ | (314.9 | ) | $ | 1,518.7 | $ | 464.3 | $ | 1,983.0 | |||||||||||
Exhibit 8 |
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TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share amounts) |
|||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(after-tax) | |||||||||||||||
Net income (loss) attributable to TechnipFMC plc, as reported | $ | (2,259 | ) | $ | (154 | ) | $ | (1,922 | ) | $ | 113 | ||||
Charges and (credits): |
|||||||||||||||
Impairment and other charges (1) | 1,689 | 11 | 1,698 | 17 | |||||||||||
Restructuring and other severance charges (2) | 11 | 74 | 24 | 103 | |||||||||||
Business combination transaction and integration costs (3) | 9 | 11 | 23 | 64 | |||||||||||
Legal provision (4) | 280 | — | 280 | — | |||||||||||
Gain on divestitures (5) | — | — | (20 | ) | — | ||||||||||
Change in accounting estimate (6) | — | — | — | 16 | |||||||||||
Purchase price accounting adjustments (7) | 17 | 11 | 68 | 153 | |||||||||||
Tax reform (8) | 12 | 138 | 12 | 138 | |||||||||||
Valuation allowance (9) | 202 | — | 214 | — | |||||||||||
Total | 2,220 | 245 | 2,299 | 491 | |||||||||||
Adjusted net income (loss) attributable to TechnipFMC plc | $ | (39 | ) | $ | 91 | $ | 377 | $ | 604 | ||||||
Diluted earnings (loss) per share attributable to TechnipFMC plc, asreported |
$ | (5.00 | ) | $ | (0.33 | ) | $ | (4.20 | ) | $ | 0.24 | ||||
Adjusted diluted earnings (loss) per share attributable to TechnipFMCplc |
$ | (0.09 | ) | $ | 0.20 | $ | 0.82 | $ | 1.29 | ||||||
(1) Tax effect of $90 million and $7 million during the three months ended December 31, 2018 and 2017, respectively, and $94 million and $10 million during the twelve months ended December 31, 2018 and 2017, respectively.
(2) Tax effect of $9 million and $43 million during the three months ended December 31, 2018 and 2017, respectively, and $15 million and $61 million during the twelve months ended December 31, 2018 and 2017, respectively.
(3) Tax effect of $7 million and $4 million during the three months ended December 31, 2018 and 2017, respectively, and $14 million and $38 million during the twelve months ended December 31, 2018 and 2017, respectively.
(4) There was no tax effect during the three and twelve months ended December 31, 2018 and 2017, respectively.
(5) Tax effect of nil and nil during the three months ended December 31, 2018 and 2017, respectively, and $(12) million and nil during the twelve months ended December 31, 2018 and 2017, respectively.
(6) Tax effect of nil and nil during the three months ended December 31, 2018 and 2017, respectively, and nil and $6 million during the twelve months ended December 31, 2018 and 2017, respectively.
(7) Tax effect of $5 million and $4 million during the three months ended December 31, 2018 and 2017, respectively, and $21 million and $56 million during the twelve months ended December 31, 2018 and 2017, respectively.
(8) Tax effect of $12 million and $138 million during the three months ended and $12 million and $138 million during the twelve months ended December 31, 2018 and 2017, respectively.
(9) Tax effect of $202 million and nil during the three months ended and $214 million and nil during the twelve months ended December 31, 2018 and 2017, respectively.
Exhibit 9 |
||||||||||||||||||||
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) |
||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Subsea |
Onshore/Offshore |
SurfaceTechnologies |
Corporateand Other |
Total | ||||||||||||||||
Revenue | $ | 1,233.3 | $ | 1,672.4 | $ | 417.3 | $ | — | $ | 3,323.0 | ||||||||||
Operating profit (loss), as reported (pre-tax) | $ | (1,739.5 | ) | $ | 206.4 | $ | 38.8 | $ | (393.6 | ) | $ | (1,887.9 | ) | |||||||
Charges and (credits): | ||||||||||||||||||||
Impairment and other charges | 1,775.6 | — | 2.9 | — | 1,778.5 | |||||||||||||||
Restructuring and other severance charges | 7.2 | 2.4 | 2.9 | 7.6 | 20.1 | |||||||||||||||
Business combination transaction and integration costs | — | — | — | 15.6 | 15.6 | |||||||||||||||
Legal provision | — | — | — | 280.0 | 280.0 | |||||||||||||||
Purchase price accounting adjustments - non-amortization related | (3.3 | ) | — | 1.4 | 0.1 | (1.8 | ) | |||||||||||||
Purchase price accounting adjustments - amortization related |
23.6 | — | 0.4 | — | 24.0 | |||||||||||||||
Subtotal | 1,803.1 | 2.4 | 7.6 | 303.3 | 2,116.4 | |||||||||||||||
Adjusted Operating profit (loss) | 63.6 | 208.8 | 46.4 | (90.3 | ) | 228.5 | ||||||||||||||
Adjusted Depreciation and amortization | 84.9 | 8.4 | 18.5 | 2.1 | 113.9 | |||||||||||||||
Adjusted EBITDA | $ | 148.5 | $ | 217.2 | $ | 64.9 | $ | (88.2 | ) | $ | 342.4 | |||||||||
Operating profit margin, as reported | -141.0 | % | 12.3 | % | 9.3 | % | -56.8 | % | ||||||||||||
Adjusted Operating profit margin | 5.2 | % | 12.5 | % | 11.1 | % | 6.9 | % | ||||||||||||
Adjusted EBITDA margin | 12.0 | % | 13.0 | % | 15.6 | % | 10.3 | % | ||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Subsea |
Onshore/Offshore |
SurfaceTechnologies |
Corporateand Other |
Total | ||||||||||||||||
Revenue | $ | 1,292.2 | $ | 2,019.5 | $ | 372.3 | $ | (1.0 | ) | $ | 3,683.0 | |||||||||
Operating profit, as reported (pre-tax) | $ | 67.4 | $ | 257.2 | $ | 53.3 | $ | (134.9 | ) | $ | 243.0 | |||||||||
Charges and (credits): | ||||||||||||||||||||
Impairment and other charges | 9.3 | — | 3.2 | 6.0 | 18.5 | |||||||||||||||
Restructuring and other severance charges | 55.0 | 26.1 | 4.1 | 31.0 | 116.2 | |||||||||||||||
Business combination transaction and integration costs | — | — | — | 14.6 | 14.6 | |||||||||||||||
Purchase price accounting adjustments - non-amortization related | (14.8 | ) | — | 1.0 | (6.5 | ) | (20.3 | ) | ||||||||||||
Purchase price accounting adjustments - amortization related | 34.5 | — | 0.9 | (0.3 | ) | 35.1 | ||||||||||||||
Subtotal | 84.0 | 26.1 | 9.2 | 44.8 | 164.1 | |||||||||||||||
Adjusted Operating profit (loss) | 151.4 | 283.3 | 62.5 | (90.1 | ) | 407.1 | ||||||||||||||
Adjusted Depreciation and amortization | 92.7 | 11.2 | 13.3 | 0.7 | 117.9 | |||||||||||||||
Adjusted EBITDA | $ | 244.1 | $ | 294.5 | $ | 75.8 | $ | (89.4 | ) | $ | 525.0 | |||||||||
Operating profit margin, as reported | 5.2 | % | 12.7 | % | 14.3 | % | 6.6 | % | ||||||||||||
Adjusted Operating profit margin | 11.7 | % | 14.0 | % | 16.8 | % | 11.1 | % | ||||||||||||
Adjusted EBITDA margin | 18.9 | % | 14.6 | % | 20.4 | % | 14.3 | % | ||||||||||||
Exhibit 10 |
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TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) |
||||||||||||||||||||
Year Ended | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Subsea |
Onshore/Offshore |
SurfaceTechnologies |
Corporateand Other |
Total | ||||||||||||||||
Revenue | $ | 4,840.0 | $ | 6,120.7 | $ | 1,592.2 | $ | — | $ | 12,552.9 | ||||||||||
Operating profit (loss), as reported (pre-tax) | $ | (1,529.5 | ) | $ | 824.0 | $ | 172.8 | $ | (594.5 | ) | $ | (1,127.2 | ) | |||||||
Charges and (credits): | ||||||||||||||||||||
Impairment and other charges | 1,784.2 | — | 4.5 | 3.9 | 1,792.6 | |||||||||||||||
Restructuring and other severance charges | 17.7 | (3.4 | ) | 9.3 | 15.0 | 38.6 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 36.5 | 36.5 | |||||||||||||||
Legal provision | — | — | — | 280.0 | 280.0 | |||||||||||||||
Gain on divestitures | (3.3 | ) | (28.3 | ) | — | — | (31.6 | ) | ||||||||||||
Purchase price accounting adjustments - non-amortization related | (9.4 | ) | — | 7.1 | (0.2 | ) | (2.5 | ) | ||||||||||||
Purchase price accounting adjustments - amortization related | 91.3 | — | — | — | 91.3 | |||||||||||||||
Subtotal | 1,880.5 | (31.7 | ) | 20.9 | 335.2 | 2,204.9 | ||||||||||||||
Adjusted Operating profit (loss) | 351.0 | 792.3 | 193.7 | (259.3 | ) | 1,077.7 | ||||||||||||||
Adjusted Depreciation and amortization | 349.2 | 38.1 | 66.6 | 5.2 | 459.1 | |||||||||||||||
Adjusted EBITDA | $ | 700.2 | $ | 830.4 | $ | 260.3 | $ | (254.1 | ) | $ | 1,536.8 | |||||||||
Operating profit margin, as reported | -31.6 | % | 13.5 | % | 10.9 | % | -9.0 | % | ||||||||||||
Adjusted Operating profit margin | 7.3 | % | 12.9 | % | 12.2 | % | 8.6 | % | ||||||||||||
Adjusted EBITDA margin | 14.5 | % | 13.6 | % | 16.3 | % | 12.2 | % | ||||||||||||
Year Ended | ||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Subsea |
Onshore/Offshore |
SurfaceTechnologies |
Corporateand Other |
Total | ||||||||||||||||
Revenue | $ | 5,877.4 | $ | 7,904.5 | $ | 1,274.6 | $ | 0.4 | $ | 15,056.9 | ||||||||||
Operating profit, as reported (pre-tax) | $ | 460.5 | $ | 810.9 | $ | 82.7 | $ | (359.2 | ) | $ | 994.9 | |||||||||
Charges and (credits): | ||||||||||||||||||||
Impairment and other charges | 11.3 | — | 10.2 | 6.0 | 27.5 | |||||||||||||||
Restructuring and other severance charges | 88.5 | 27.0 | 9.1 | 39.4 | 164.0 | |||||||||||||||
Business combination transaction and integration costs | — | — | — | 101.8 | 101.8 | |||||||||||||||
Change in accounting estimate | 11.8 | — | 10.1 | — | 21.9 | |||||||||||||||
Purchase price accounting adjustments - non-amortization related | 40.5 | — | 43.3 | (25.6 | ) | 58.2 | ||||||||||||||
Purchase price accounting adjustments - amortization related | 139.2 | — | 12.4 | (1.2 | ) | 150.4 | ||||||||||||||
Subtotal | 291.3 | 27.0 | 85.1 | 120.4 | 523.8 | |||||||||||||||
Adjusted Operating profit (loss) | 751.8 | 837.9 | 167.8 | (238.8 | ) | 1,518.7 | ||||||||||||||
Adjusted Depreciation and amortization | 368.0 | 41.1 | 51.1 | 4.1 | 464.3 | |||||||||||||||
Adjusted EBITDA | $ | 1,119.8 | $ | 879.0 | $ | 218.9 | $ | (234.7 | ) | $ | 1,983.0 | |||||||||
Operating profit margin, as reported | 7.8 | % | 10.3 | % | 6.5 | % | 6.6 | % | ||||||||||||
Adjusted Operating profit margin | 12.8 | % | 10.6 | % | 13.2 | % | 10.1 | % | ||||||||||||
Adjusted EBITDA margin | 19.1 | % | 11.1 | % | 17.2 | % | 13.2 | % | ||||||||||||
Exhibit 11 |
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TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) |
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December 31, 2018 | December 31, 2017 | ||||||||||||
Cash and cash equivalents | $ | 5,540.0 | $ | 6,737.4 | |||||||||
Short-term debt and current portion of long-term debt | (67.4 | ) | (77.1 | ) | |||||||||
Long-term debt, less current portion | (4,124.3 | ) | (3,777.9 | ) | |||||||||
Net cash | $ | 1,348.3 | $ | 2,882.4 | |||||||||
Net cash (debt) is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate TechnipFMC's capital structure and financial leverage. Management believes net cash (debt) is a meaningful financial measure that may also assist investors in understanding TechnipFMC's financial condition and underlying trends in its capital structure.
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