Get Cash Back and $0 Commissions
+ The Power of TradeStation
Business Wire 25-Apr-2019 4:15 PM
Regulatory News:
TechnipFMC plc (NYSE:FTI) (Paris: FTI) today reported first quarter 2019 results.
Total Company revenue was $2,913 million. Net income was $20.9 million, or $0.05 per diluted share. These results included after-tax charges and credits totaling $6.4 million of expense, or $0.01 per diluted share; adjusted diluted earnings per share were $0.06.
Adjusted EBITDA, which excludes pre-tax charges and credits, was $295.8 million; adjusted EBITDA margin was 10.2 percent (Exhibit 7).
Other significant pre-tax items impacting the quarter, for which we do not provide guidance, included the following:
Summary Financial Statements – First Quarter 2019
Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Three Months Ended
(In millions, except per share amounts) |
March 31,
2019 |
March 31, 2018 |
Change | ||||
Revenue | $2,913.0 | $3,125.2 | (6.8%) | ||||
Net income | $20.9 | $95.1 | (78.0%) | ||||
Diluted earnings per share | $0.05 | $0.20 | (75.0%) | ||||
Adjusted EBITDA | $295.8 | $386.6 | (23.5%) | ||||
Adjusted EBITDA margin | 10.2% | 12.4% | (222 bps) | ||||
Adjusted net income | $27.3 | $131.5 | (79.2%) | ||||
Adjusted diluted earnings per share | $0.06 | $0.28 | (78.6%) | ||||
Inbound orders | $6,184.5 | $3,487.0 | 77.4% | ||||
Backlog | $17,777.6 | $14,012.0 | 26.9% | ||||
Doug Pferdehirt, CEO of TechnipFMC, stated, "Quarterly orders of $6.2 billion were our highest since the fourth quarter of 2014. This reflects the strength of our integrated subsea model, our demonstrated capabilities in downstream and gas monetization, and continued growth in international surface markets. With total Company book-to-bill of 2.1 in the quarter, backlog grew 22 percent sequentially to $17.8 billion."
"In Onshore/Offshore, we continue to execute well and achieved notable project milestones during the period. Orders of $3.1 billion were more than double our revenues in the quarter, driven by major downstream and offshore projects. Additionally, we are prioritizing five LNG projects that are most strategic to TechnipFMC and offer the highest probability of successful execution. "
"In Surface Technologies, weaker-than-expected activity in North America significantly impacted our quarterly results and has led to a change in the market outlook. We no longer anticipate the recovery in North America as originally forecasted. Outside of the Americas, our expectations remain unchanged at high-single digit to low-double digit activity growth."
Pferdehirt continued, "Strong Subsea orders of $2.7 billion resulted in a book-to-bill of 2.3, driven by an increased contribution from integrated EPCI (iEPCI™). Our integrated FEED (iFEED™) capabilities serve as a key differentiator and have been instrumental in securing new iEPCI™ awards. The number of new iFEED™ studies nearly doubled in 2018. Many of these are proprietary, providing an exclusive opportunity set to TechnipFMC."
"In the first four months of 2019, we have secured seven new integrated projects, representing an aggregate contract value of $1.4 billion. This expansion of our integrated portfolio includes projects from BP, Lundin, ENI and ConocoPhillips – all first-time iEPCI™ adopters. Given this early success and our expanding opportunity set, we are confident that iEPCI™ project awards will exceed 25 percent of our Subsea order inbound in 2019."
Pferdehirt concluded, "Our Company has returned to growth, and we are well-positioned to benefit from the recovery underway in many of our key end-markets. Our strong balance sheet ensures that we have sufficient capital to grow the business, while supporting our commitment to return excess capital to shareholders. When these actions are combined with strong operational execution, we can drive our capital returns higher over time. This focus on shareholder capital has been a part of management compensation since the formation of TechnipFMC, and it reflects how we will continue to manage our balance sheet and our business going forward."
Operational and Financial Highlights – First Quarter 2019
Subsea |
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Three Months Ended
(In millions) |
March 31,
2019 |
March 31,
2018 |
Change | ||||
Revenue | $1,185.3 | $1,180.2 | 0.4% | ||||
Operating profit | $49.9 | $54.4 | (8.3%) | ||||
Adjusted EBITDA | $139.7 | $172.0 | (18.8%) | ||||
Adjusted EBITDA margin | 11.8% | 14.6% | (279 bps) | ||||
Inbound orders | $2,677.6 | $1,227.8 | 118.1% | ||||
Backlog | $7,477.3 | $6,110.9 | 22.4% | ||||
Subsea reported first quarter revenue of $1,185.3 million, largely unchanged from the prior year. Modest growth in services offset the decline in project revenues reflected in the lower level of vessel utilization.
Subsea reported operating profit of $49.9 million; adjusted EBITDA was $139.7 million with a margin of 11.8 percent. Operating profit declined versus the prior-year quarter primarily due to more competitively priced backlog and lower vessel utilization, offset in part by cost reduction activities. These same factors drove the year-over-year decline in adjusted EBITDA.
Vessel utilization rate for the first quarter was 55 percent, down from 62 percent in the fourth quarter and 60 percent in the prior-year quarter.
First Quarter Subsea Highlights
Subsea inbound orders for the quarter were $2,677.6 million, resulting in a book-to-bill of 2.3. The following announced awards were included in the period:
Subsea
Estimated Backlog Scheduling as of March 31, 2019 (In millions) |
Consolidated backlog* |
Non- consolidated backlog** |
|||
2019 (9 months) | $3,387.1 | $140.3 | |||
2020 | $2,480.3 | $136.7 | |||
2021 and beyond | $1,609.9 | $659.6 | |||
Total | $7,477.3 | $936.6 |
* Backlog does not capture all revenue potential for subsea services.
** Non-consolidated backlog reflects the proportional share of backlog related to joint ventures that is not consolidated due to our minority ownership position.
Onshore/Offshore |
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Three Months Ended
(In millions) |
March 31,
2019 |
March 31,
2018 |
Change | ||||
Revenue | $1,335.1 | $1,573.4 | (15.1%) | ||||
Operating profit | $155.7 | $202.9 | (23.3%) | ||||
Adjusted EBITDA | $194.8 | $215.0 | (9.4%) | ||||
Adjusted EBITDA margin | 14.6% | 13.7% | 93 bps | ||||
Inbound orders | $3,138.9 | $1,849.6 | 69.7% | ||||
Backlog | $9,862.7 | $7,491.6 | 31.7% | ||||
Onshore/Offshore reported first quarter revenue of $1,335.1 million. Revenue decreased 15.1 percent from the prior-year quarter as we moved closer to completion on major projects, primarily Yamal LNG. Projects awarded in recent quarters are in early stages of completion and will contribute more significantly in subsequent quarters as the projects progress.
Onshore/Offshore reported operating profit of $155.7 million; adjusted EBITDA was $194.8 million with a margin of 14.6 percent. Operating profit decreased 23.3 percent versus the prior-year quarter primarily due to the revenue decline and a change in revenue mix. These same factors drove the year-over-year decrease in adjusted EBITDA; adjusted EBITDA margin increased 93 basis points from the prior-year results.
First Quarter Onshore/Offshore Highlights
Onshore/Offshore inbound orders for the quarter were $3,138.9 million, resulting in a book-to-bill of 2.4. The following announced awards were included in the period:
In addition to these announced awards in the period, we continue to strengthen our Process Technology business unit with important new partnerships, including:
Onshore/Offshore
Estimated Backlog Scheduling as of March 31, 2019 (In millions) |
Consolidated backlog |
Non- consolidated backlog* |
||
2019 (9 months) | $4,299.4 | $564.8 | ||
2020 | $3,252.3 | $642.6 | ||
2021 and beyond | $2,311.0 | $558.3 | ||
Total | $9,862.7 | $1,765.7 |
* Non-consolidated backlog reflects the proportional share of backlog related to joint ventures that is not consolidated due to our minority ownership position.
Surface Technologies |
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.
Three Months Ended
(In millions) |
March 31,
2019 |
March 31, 2018 |
Change | ||||
Revenue | $392.6 | $371.6 | 5.7% | ||||
Operating profit | $10.5 | $30.6 | (65.7%) | ||||
Adjusted EBITDA | $30.1 | $50.3 | (40.2%) | ||||
Adjusted EBITDA margin | 7.7% | 13.5% | (587 bps) | ||||
Inbound orders | $368.0 | $409.6 | (10.2%) | ||||
Backlog | $437.6 | $409.5 | 6.9% | ||||
Surface Technologies reported first quarter revenue of $392.6 million, an increase of 5.7 percent from the prior-year quarter. The revenue growth was primarily driven by higher demand for pressure control equipment outside the Americas. North American revenue declined in the period as a result of lower activity.
Surface Technologies reported operating profit of $10.5 million; adjusted EBITDA was $30.1 million with a margin of 7.7 percent. Operating profit decreased versus the prior-year quarter primarily due to the continued decline in completions-related activity, one-time charges related to new product introduction and unfavorable product line mix in North America. Operating profit outside the Americas was negatively impacted by delays in shipments of backlog orders now expected to be delivered throughout 2019. These same factors drove the year-over-year decrease in adjusted EBITDA.
North American activity has declined further since the fourth quarter of 2018. Completions-related revenue declined mid-single digits in the quarter, below levels anticipated when 2019 financial guidance was provided in December. The Company now expects North American activity for the remainder of the year to remain largely unchanged from current levels. Reduced operator spending in North America has also negatively impacted pricing as the market adjusts to the excess product and service supply created by the lower activity.
Outside the Americas, the Company continues to anticipate high-single digit to low-double digit activity growth, supported by the Middle East market. We expect limited benefit from pricing in 2019.
Inbound orders for the quarter were $368 million. Backlog was $437.6 million. Given the short-cycle nature of the business, orders are generally converted into revenue within twelve months.
Corporate and Other Items
Corporate expense in the first quarter was $93.6 million. This includes charges and credits totaling $21 million of expense associated with the merger as well as restructuring and other severance charges. Excluding charges and credits, corporate expense was $72.6 million which included $11.6 million of foreign exchange losses.
Net interest expense was $88.2 million in the quarter, which included an increase in the liability payable to joint venture partners of $84.7 million.
The Company recorded a tax provision during the quarter of $14.5 million. Adjusted net income was negatively impacted by the reversal of a $40.3 million non-cash valuation allowance which will benefit tax expense in future periods.
Total depreciation and amortization for the quarter was $119.4 million, including depreciation and amortization related to purchase price accounting for the merger of $8.5 million.
The Company repurchased 2.2 million shares during the quarter. Total consideration was $50.1 million; cash impact in the quarter was $33 million due to the timing of settlement.
Cash flow from operations in the quarter was $121.4 million. The Company ended the period with cash and cash equivalents of $4,965.3 million; net cash was $1,031.4 million.
Other Accounting Items
On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842), using a modified retrospective transition method and applying the new standard to all leases.
Adoption of the new lease accounting guidance had a material impact on our consolidated balance sheet but did not have a material impact on our consolidated income statement. As of March 31, 2019, the balances of our operating lease liability and operating lease right-of-use asset were as follows:
The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, was recorded as an adjustment to reduce retained earnings by approximately $1.8 million ($2.3 million prior to tax effect).
Details regarding the adoption of IFRS 16 will be provided in the Half-Year Financial Report for the half year ending June 30, 2019.
2019 Financial Guidance1
Updates to the Company's full-year guidance for 2019 are included in the revised table below and detailed on the following page:
2019 Guidance *Updated April 25, 2019 | ||||
Subsea | Onshore/Offshore | Surface Technologies | ||
Revenue in a range of $5.4 – 5.7 billion | Revenue in a range of $6.0 – 6.3 billion* | Revenue in a range of $1.6 – 1.7 billion* | ||
EBITDA margin at least 11% (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin at least 14%* (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin at least 12%* (excluding amortization related impact of purchase price accounting, and other charges and credits) | ||
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.
Updates to the Company's full-year guidance for 2019 are detailed below:
Teleconference
The Company will host a teleconference on Friday, April 26, 2019 to discuss the first quarter 2019 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.
Exhibit 1
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) |
||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Revenue | $ | 2,913.0 | $ | 3,125.2 | ||||
Costs and expenses | 2,778.2 | 2,885.9 | ||||||
134.8 | 239.3 | |||||||
Other (expense) income, net | (12.3 | ) | (11.2 | ) | ||||
Income before net interest expense and income taxes | 122.5 | 228.1 | ||||||
Net interest expense | (88.2 | ) | (87.4 | ) | ||||
Income before income taxes | 34.3 | 140.7 | ||||||
Provision for income taxes | 14.5 | 49.3 | ||||||
Net income | 19.8 | 91.4 | ||||||
Net loss attributable to noncontrolling interests | 1.1 | 3.7 | ||||||
Net income attributable to TechnipFMC plc | $ | 20.9 | $ | 95.1 | ||||
Earnings per share attributable to TechnipFMC plc: | ||||||||
Basic | $ | 0.05 | $ | 0.20 | ||||
Diluted | $ | 0.05 | $ | 0.20 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 450.1 | 464.3 | ||||||
Diluted | 453.3 | 465.7 | ||||||
Cash dividends declared per share | $ | 0.13 | $ | 0.13 | ||||
Exhibit 2
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES BUSINESS SEGMENT DATA (In millions) |
||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Revenue |
||||||||
Subsea | $ | 1,185.3 | $ | 1,180.2 | ||||
Onshore/Offshore | 1,335.1 | 1,573.4 | ||||||
Surface Technologies | 392.6 | 371.6 | ||||||
$ | 2,913.0 | $ | 3,125.2 | |||||
Income before income taxes |
||||||||
Segment operating profit (loss) |
||||||||
Subsea | $ | 49.9 | $ | 54.4 | ||||
Onshore/Offshore | 155.7 | 202.9 | ||||||
Surface Technologies | 10.5 | 30.6 | ||||||
Total segment operating profit | 216.1 | 287.9 | ||||||
Corporate items |
||||||||
Corporate expense (1) | (93.6 | ) | (59.8 | ) | ||||
Net interest expense | (88.2 | ) | (87.4 | ) | ||||
Total corporate items | (181.8 | ) | (147.2 | ) | ||||
Net income before income taxes (2) | $ | 34.3 | $ | 140.7 | ||||
(1) Corporate expense primarily includes corporate staff expenses, share-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger transaction and integration expenses.
(2) Includes amounts attributable to noncontrolling interests.
Exhibit 3
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES BUSINESS SEGMENT DATA (In millions, unaudited) |
|||||||
Three Months Ended | |||||||
Inbound Orders (1) |
March 31, | ||||||
2019 | 2018 | ||||||
Subsea | $ | 2,677.6 | $ | 1,227.8 | |||
Onshore/Offshore | 3,138.9 | 1,849.6 | |||||
Surface Technologies | 368.0 | 409.6 | |||||
Total inbound orders | $ | 6,184.5 | $ | 3,487.0 | |||
Order Backlog (2) |
March 31, | ||||||
2019 | 2018 | ||||||
Subsea | $ | 7,477.3 | $ | 6,110.9 | |||
Onshore/Offshore | 9,862.7 | 7,491.6 | |||||
Surface Technologies | 437.6 | 409.5 | |||||
Total order backlog | $ | 17,777.6 | $ | 14,012.0 | |||
(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
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) |
|||||||
(Unaudited) | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Cash and cash equivalents | $ | 4,965.3 | $ | 5,540.0 | |||
Trade receivables, net | 2,250.3 | 2,469.7 | |||||
Contract assets | 1,383.7 | 1,295.0 | |||||
Inventories, net | 1,315.2 | 1,251.2 | |||||
Other current assets | 1,337.6 | 1,225.3 | |||||
Total current assets | 11,252.1 | 11,781.2 | |||||
Property, plant and equipment, net | 3,381.9 | 3,259.8 | |||||
Goodwill | 7,603.4 | 7,607.6 | |||||
Intangible assets, net | 1,156.9 | 1,176.7 | |||||
Other assets | 2,277.6 | 959.2 | |||||
Total assets | $ | 25,671.9 | $ | 24,784.5 | |||
Short-term debt and current portion of long-term debt | $ | 208.9 | $ | 67.4 | |||
Accounts payable, trade | 2,464.5 | 2,600.3 | |||||
Contract liabilities | 4,252.2 | 4,085.1 | |||||
Other current liabilities | 2,702.9 | 2,381.6 | |||||
Total current liabilities | 9,628.5 | 9,134.4 | |||||
Long-term debt, less current portion | 3,725.0 | 4,124.3 | |||||
Other liabilities | 1,864.3 | 1,056.4 | |||||
Redeemable noncontrolling interest | 38.5 | 38.5 | |||||
TechnipFMC plc stockholders' equity | 10,384.7 | 10,399.6 | |||||
Noncontrolling interests | 30.9 | 31.3 | |||||
Total liabilities and equity | $ | 25,671.9 | $ | 24,784.5 | |||
Exhibit 5
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) |
||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Cash provided (required) by operating activities | ||||||||
Net income | $ | 19.8 | $ | 91.4 | ||||
Adjustments to reconcile net income (loss) to cash provided (required) by operating activities | ||||||||
Depreciation | 88.9 | 86.4 | ||||||
Amortization | 30.5 | 45.4 | ||||||
Impairments | 0.9 | 0.4 | ||||||
Employee benefit plan and share-based compensation costs | 20.9 | 7.4 | ||||||
Deferred income tax provision (benefit), net | (90.8 | ) | (59.9 | ) | ||||
Unrealized loss on derivative instruments and foreign exchange | 29.2 | 7.3 | ||||||
Income from equity affiliates, net of dividends received | (9.9 | ) | (13.2 | ) | ||||
Other | 72.7 | 136.0 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions | ||||||||
Trade receivables, net and contract assets | 131.8 | (522.7 | ) | |||||
Inventories, net | (61.5 | ) | (59.7 | ) | ||||
Accounts payable, trade | (148.6 | ) | (332.2 | ) | ||||
Contract liabilities | 186.1 | 462.0 | ||||||
Income taxes payable (receivable), net | 20.8 | 15.9 | ||||||
Other current assets and liabilities, net | (126.3 | ) | 39.7 | |||||
Other noncurrent assets and liabilities, net | (43.1 | ) | (105.8 | ) | ||||
Cash provided (required) by operating activities | 121.4 | (201.6 | ) | |||||
Cash provided (required) by investing activities | ||||||||
Capital expenditures | (178.2 | ) | (53.2 | ) | ||||
Payment to acquire debt securities | (59.7 | ) | — | |||||
Acquisitions, net of cash acquired | — | (62.0 | ) | |||||
Proceeds from sale of assets | 0.9 | 1.8 | ||||||
Other | — | (0.2 | ) | |||||
Cash provided (required) by investing activities | (237.0 | ) | (113.6 | ) | ||||
Cash required by financing activities | ||||||||
Net increase in short-term debt | 114.5 | 2.4 | ||||||
Net decrease in commercial paper | (450.4 | ) | (117.6 | ) | ||||
Proceeds from issuance of long-term debt | 96.2 | 0.5 | ||||||
Repayments of long-term debt | — | (5.3 | ) | |||||
Purchase of ordinary shares | (33.0 | ) | (92.6 | ) | ||||
Settlements of mandatorily redeemable financial liability | (174.9 | ) | — | |||||
Other | — | 1.4 | ||||||
Cash required by financing activities | (447.6 | ) | (211.2 | ) | ||||
Effect of changes in foreign exchange rates on cash and cash equivalents | (11.5 | ) | 9.6 | |||||
Increase (decrease) in cash and cash equivalents | (574.7 | ) | (516.8 | ) | ||||
Cash and cash equivalents, beginning of period | 5,540.0 | 6,737.4 | ||||||
Cash and cash equivalents, end of period | $ | 4,965.3 | $ | 6,220.6 | ||||
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 first quarter 2019 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 2018 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 | |||||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||
Net income (loss) attributable to TechnipFMC plc | Net income (loss) attributable to noncontrolling interests | Provision for income taxes | Net interest expense | Income (loss) before net interest expense and income taxes (Operating profit) | Depreciation and amortization | Earnings (loss) before net interest expense, income taxes, depreciation and amortization (EBITDA) | |||||||||||||||||||||
TechnipFMC plc, as reported | $ | 20.9 | $ | (1.1 | ) | $ | 14.5 | $ | 88.2 | $ | 122.5 | $ | 119.4 | $ | 241.9 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 0.5 | — | 0.2 | — | 0.7 | — | 0.7 | ||||||||||||||||||||
Restructuring and other severance charges | 11.6 | — | 4.2 | — | 15.8 | — | 15.8 | ||||||||||||||||||||
Business combination transaction and integration costs | 8.9 | — | 3.2 | — | 12.1 | — | 12.1 | ||||||||||||||||||||
Reorganization | 19.2 | — | 6.1 | — | 25.3 | — | 25.3 | ||||||||||||||||||||
Purchase price accounting adjustment | 6.5 | — | 2.0 | — | 8.5 | (8.5 | ) | — | |||||||||||||||||||
Valuation allowance | (40.3 | ) | — | 40.3 | — | — | — | — | |||||||||||||||||||
Adjusted financial measures | $ | 27.3 | $ | (1.1 | ) | $ | 70.5 | $ | 88.2 | $ | 184.9 | $ | 110.9 | $ | 295.8 | ||||||||||||
Diluted earnings (loss) per share attributable to TechnipFMC plc, as reported | $ | 0.05 | |||||||||||||||||||||||||
Adjusted diluted earnings (loss) per share attributable to TechnipFMC plc | $ | 0.06 | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||||||||
Net income attributable to TechnipFMC plc | Net income (loss) attributable to noncontrolling interests | Provision for income taxes | Net interest expense | Income before net interest expense and income taxes (Operating profit) | Depreciation and amortization | Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) | |||||||||||||||||||||
TechnipFMC plc, as reported | $ | 95.1 | $ | (3.7 | ) | $ | 49.3 | $ | 87.4 | $ | 228.1 | $ | 131.8 | $ | 359.9 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 2.2 | — | 0.8 | — | 3.0 | — | 3.0 | ||||||||||||||||||||
Restructuring and other severance charges | 6.2 | — | 2.3 | — | 8.5 | — | 8.5 | ||||||||||||||||||||
Business combination transaction and integration costs | 4.1 | — | 1.5 | — | 5.6 | — | 5.6 | ||||||||||||||||||||
Purchase price accounting adjustment | 23.9 | — | 7.4 | — | 31.3 | (21.7 | ) | 9.6 | |||||||||||||||||||
Adjusted financial measures | $ | 131.5 | $ | (3.7 | ) | $ | 61.3 | $ | 87.4 | $ | 276.5 | $ | 110.1 | $ | 386.6 | ||||||||||||
Diluted earnings (loss) per share attributable to TechnipFMC plc, as reported | $ | 0.20 | |||||||||||||||||||||||||
Adjusted diluted earnings (loss) per share attributable to TechnipFMC plc | $ | 0.28 | |||||||||||||||||||||||||
Exhibit 7
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) |
||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||
Subsea | Onshore/Offshore |
Surface Technologies |
Corporate and Other |
Total | ||||||||||||||||
Revenue | $ | 1,185.3 | $ | 1,335.1 | $ | 392.6 | $ | — | $ | 2,913.0 | ||||||||||
Operating profit (loss), as reported (pre-tax) | $ | 49.9 | $ | 155.7 | $ | 10.5 | $ | (93.6 | ) | $ | 122.5 | |||||||||
Charges and (credits): | ||||||||||||||||||||
Impairment and other charges | 0.7 | — | — | — | 0.7 | |||||||||||||||
Restructuring and other severance charges | 1.6 | 3.8 | 1.5 | 8.9 | 15.8 | |||||||||||||||
Business combination transaction and integration costs | — | — | — | 12.1 | 12.1 | |||||||||||||||
Reorganization | — | 25.3 | — | — | 25.3 | |||||||||||||||
Purchase price accounting adjustments - amortization related | 8.5 | — | — | — | 8.5 | |||||||||||||||
Subtotal | 10.8 | 29.1 | 1.5 | 21.0 | 62.4 | |||||||||||||||
Adjusted Operating profit (loss) | 60.7 | 184.8 | 12.0 | (72.6 | ) | 184.9 | ||||||||||||||
Adjusted Depreciation and amortization | 79.0 | 10.0 | 18.1 | 3.8 | 110.9 | |||||||||||||||
Adjusted EBITDA | $ | 139.7 | $ | 194.8 | $ | 30.1 | $ | (68.8 | ) | $ | 295.8 | |||||||||
Operating profit margin, as reported | 4.2 | % | 11.7 | % | 2.7 | % | 4.2 | % | ||||||||||||
Adjusted Operating profit margin | 5.1 | % | 13.8 | % | 3.1 | % | 6.3 | % | ||||||||||||
Adjusted EBITDA margin | 11.8 | % | 14.6 | % | 7.7 | % | 10.2 | % | ||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, 2018 | ||||||||||||||||||||
Subsea | Onshore/Offshore |
Surface Technologies |
Corporate and Other |
Total | ||||||||||||||||
Revenue | $ | 1,180.2 | $ | 1,573.4 | $ | 371.6 | $ | — | $ | 3,125.2 | ||||||||||
Operating profit (loss), as reported (pre-tax) | $ | 54.4 | $ | 202.9 | $ | 30.6 | $ | (59.8 | ) | $ | 228.1 | |||||||||
Charges and (credits): | ||||||||||||||||||||
Impairment and other charges | 0.4 | 2.6 | — | — | 3.0 | |||||||||||||||
Restructuring and other severance charges | 2.7 | 0.9 | 2.4 | 2.5 | 8.5 | |||||||||||||||
Business combination transaction and integration costs | — | — | — | 5.6 | 5.6 | |||||||||||||||
Purchase price accounting adjustments - non-amortization related | 6.0 | — | 3.6 | — | 9.6 | |||||||||||||||
Purchase price accounting adjustments - amortization related | 21.9 | — | (0.1 | ) | (0.1 | ) | 21.7 | |||||||||||||
Subtotal | 31.0 | 3.5 | 5.9 | 8.0 | 48.4 | |||||||||||||||
Adjusted Operating profit (loss) | 85.4 | 206.4 | 36.5 | (51.8 | ) | 276.5 | ||||||||||||||
Adjusted Depreciation and amortization | 86.6 | 8.6 | 13.8 | 1.1 | 110.1 | |||||||||||||||
Adjusted EBITDA | $ | 172.0 | $ | 215.0 | $ | 50.3 | $ | (50.7 | ) | $ | 386.6 | |||||||||
Operating profit margin, as reported | 4.6 | % | 12.9 | % | 8.2 | % | 7.3 | % | ||||||||||||
Adjusted Operating profit margin | 7.2 | % | 13.1 | % | 9.8 | % | 8.8 | % | ||||||||||||
Adjusted EBITDA margin | 14.6 | % | 13.7 | % | 13.5 | % | 12.4 | % | ||||||||||||
Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, unaudited) |
||||||||
March 31, 2019 | December 31, 2018 | |||||||
Cash and cash equivalents | $ | 4,965.3 | $ | 5,540.0 | ||||
Short-term debt and current portion of long-term debt | (208.9 | ) | (67.4 | ) | ||||
Long-term debt, less current portion | (3,725.0 | ) | (4,124.3 | ) | ||||
Net cash | $ | 1,031.4 | $ | 1,348.3 | ||||
Net (debt) cash, is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net debt, or net cash, is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net (debt) cash should not be considered an alternative to, or more meaningful than, cash and cash equivalents as determined in accordance with U.S. GAAP or as an indicator of our operating performance or liquidity.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190425005895/en/