HOUSTON, April 24, 2014 /PRNewswire/ -- Cameron (NYSE:
CAM) reported earnings per share for the first quarter of 2014 of
$0.75 excluding charges and
discontinued operations. This compares to earnings per share for
the first quarter of 2013 of $0.69
excluding charges. After-tax charges for the first quarter of 2014
were $0.21 per share primarily
related to the write-off of non-tax deductible goodwill associated
with the planned sale of the reciprocating compression business.
Discontinued operations were a $0.03
loss.
The Company reported GAAP earnings per diluted share from
continuing operations of $0.54 for
the first quarter of 2014, compared to $0.59 for the first quarter of 2013.
Year-over-year revenues increase
Revenues were a first quarter record of $2.4 billion, up 18 percent from $2.1 billion a year ago. Cameron Chairman,
President and Chief Executive Officer Jack
B. Moore said that the year-over-year revenue increase was
due to gains in the Drilling and Production Systems group. Further,
Moore commented, "Year over year revenue gains were reflected in
our Drilling Systems, Surface Systems and OneSubsea businesses, a
result of record backlogs established in 2013. We were pleased with
our overall DPS and Valves & Measurement margins for the
quarter and we continue to make progress in improving execution in
our drilling business."
Orders and backlog strong
Total orders for the quarter were $2.5
billion. While orders were down sequentially and
year-over-year, they represented the second best first quarter
results in the Company's history. "Orders for the first quarter
were driven by our drilling, surface and V&M businesses", Moore
said, "With a more robust outlook for North America and several deepwater projects
expected to move forward, we believe our orders could exceed 2013's
record level."
Cameron's backlog at the end of the first quarter was
$11.3 billion, down slightly from its
historical high of $11.4 billion at
the end of 2013. The ending first quarter backlog reflects the
cancellation of the STX deep-water rig order during the quarter.
First quarter backlog is up 13% from prior year levels.
Share repurchase activity continued; repurchase authorization
increased; additional borrowing
The Company continued to actively repurchase its shares during
the quarter. Following a record year in 2013, when 27 million
shares were repurchased for $1.5
billion, an additional 15.2 million shares were repurchased
during the first quarter for $926
million. Cameron increased its borrowing by $330 million during the quarter to help support
its share repurchase activities. Also, during the quarter an
additional $500 million of share
repurchases were authorized by the Board of Directors. The quarter
ended with an outstanding authorization of $420 million.
Continued disciplined capital investments
The Company recorded $105 million
in capital expenditures in the first quarter, primarily in Surface
Systems and OneSubsea. Full year capital expenditures are expected
to be between $450 and $500 million,
focused on Surface Systems, OneSubsea and Drilling Systems
infrastructure. The Company continues to see capital investment
opportunities in its core businesses.
Full year earnings guidance revised
Beginning in the first quarter of 2014, the Company's
Reciprocating Compression business is being reported as
discontinued operations. With this exclusion noted, Cameron
currently expects second quarter earnings from continuing
operations to be in the range of $0.84 to
$0.89 per diluted share excluding charges, and expects
full-year 2014 earnings from continuing operations to be in the
range of $3.80 to $4.10 per share
excluding charges.
Cameron (NYSE: CAM) is a leading provider of flow equipment
products, systems and services to worldwide oil, gas and process
industries.
Website: www.c-a-m.com
In addition to the historical data contained herein, this
document includes forward-looking statements regarding anticipated
earnings of the Company, including those of OneSubsea, for the
second quarter and full year 2014, as well as expectations
regarding improved execution in its drilling business, orders and
capital spending, made in reliance upon the safe harbor provisions
of the Private Securities Litigation Reform Act of
1995.
The Company's actual results may differ materially from those
described in forward-looking statements. Such statements are
based on current expectations of the Company's performance and are
subject to a variety of factors, some of which are not under the
control of the Company, which can affect the Company's results of
operations, liquidity or financial condition. Such factors
may include overall demand for, and pricing of, the Company's
products, particularly as affected by North American activity; the
size and timing of orders; the Company's ability to successfully
execute the large subsea and drilling systems projects it has been
awarded; the possibility of cancellations of orders; the Company's
ability to convert backlog into revenues on a timely and profitable
basis; the impact of acquisitions the Company has made or may make;
changes in the price of (and demand for) oil and gas in both
domestic and international markets; raw material costs and
availability; political and social issues affecting the countries
in which the Company does business; fluctuations in currency
markets worldwide; and variations in global economic
activity. In particular, current and projected oil and gas
prices historically have generally directly affected customers'
spending levels and their related purchases of the Company's
products and services. Additionally, changes in oil and gas
price expectations may impact the Company's financial results due
to changes it may make in its cost structure, staffing or spending
levels.
Because the information herein is based solely on data currently
available, it is subject to change as a result of changes in
conditions over which the Company has no control or influence, and
should not therefore be viewed as assurance regarding the Company's
future performance. Additionally, the Company is not
obligated to make public indication of such changes unless required
under applicable disclosure rules and regulations.
|
Cameron
Unaudited
Consolidated Condensed Results of Operations
($ and shares in
millions except per share data)
|
|
|
Three Months
Ended
March
31,
|
|
2014
|
2013
|
|
Revenues:
|
|
|
|
Drilling &
Production Systems
|
$
1,705.1
|
$
1,269.0
|
|
Valves &
Measurement
|
492.3
|
521.5
|
|
Process &
Compression Systems
|
234.1
|
270.4
|
|
Total
revenues
|
2,431.5
|
2,060.9
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
Cost of sales
(exclusive of depreciation and amortization shown separately
below)
|
1,765.1
|
1,453.0
|
|
Selling and
administrative expenses
|
328.3
|
303.3
|
|
Depreciation and
amortization
|
86.8
|
67.3
|
|
Interest,
net
|
32.1
|
25.8
|
|
Other
costs
|
49.0
|
31.0
|
|
Total costs and
expenses
|
2,261.3
|
1,880.4
|
|
|
|
|
Income from
continuing operations before income taxes
|
170.2
|
180.5
|
|
Income tax
provision
|
(48.5)
|
(34.1)
|
|
Income from
continuing operations
|
121.7
|
146.4
|
|
Income (loss) from
discontinued operations, net of income taxes
|
(5.6)
|
1.9
|
|
Net income
|
116.1
|
148.3
|
|
Net income
attributable to noncontrolling interests
|
5.0
|
–
|
|
Net income
attributable to Cameron stockholders
|
$
111.1
|
$
148.3
|
|
|
|
|
Amounts attributable
to Cameron stockholders:
|
|
|
|
Income from continuing operations
|
$
116.7
|
$
146.4
|
|
Income (loss) from discontinued operations
|
(5.6)
|
1.9
|
|
Net income
attributable to Cameron stockholders
|
$
111.1
|
$
148.3
|
|
|
|
|
Earnings (loss) per
common share attributable to Cameron stockholders:
|
|
|
|
Basic
|
|
|
|
Continuing
operations
|
$
0.54
|
$
0.59
|
|
Discontinued operations
|
(0.03)
|
0.01
|
|
Earnings per share attributable to Cameron stockholders
|
$
0.51
|
$
0.60
|
|
|
|
|
Diluted
|
|
|
|
Continuing
operations
|
$
0.54
|
$
0.59
|
|
Discontinued operations
|
(0.03)
|
0.01
|
|
Earnings per share attributable to Cameron stockholders
|
$
0.51
|
$
0.60
|
|
|
|
|
Shares used in
computing earnings per common share:
|
|
|
|
Basic
|
214.9
|
247.5
|
|
Diluted
|
216.2
|
249.0
|
|
|
|
|
EBITDA, excluding
other costs:
|
|
|
|
Drilling &
Production Systems
|
$
249.3
|
$
198.1
|
|
Valves &
Measurement
|
106.0
|
123.3
|
|
Process &
Compression Systems(1)
|
22.9
|
25.7
|
|
Corporate and
other(2)
|
(40.1)
|
(42.5)
|
|
Total
|
$
338.1
|
$
304.6
|
|
|
|
1
|
Excludes discontinued
operations.
|
|
2
|
Corporate EBITDA
amounts exclude $49.0 million and $31.0 million of other costs
during the three months ended March 31, 2014 and 2013,
respectively.
|
|
Cameron
Consolidated
Condensed Balance Sheets
($
millions)
|
|
|
March
31,
2014
|
December
31,
2013
|
|
(unaudited)
|
|
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
972.1
|
$
1,812.9
|
|
Short-term
investments
|
41.0
|
41.0
|
|
Receivables,
net
|
2,668.5
|
2,719.1
|
|
Inventories,
net
|
3,193.0
|
3,132.4
|
|
Other
|
448.1
|
463.2
|
|
Assets of
discontinued operations
|
483.0
|
–
|
|
Total current
assets
|
7,805.7
|
8,168.6
|
|
Plant and equipment,
net
|
1,995.3
|
2,036.9
|
|
Goodwill
|
2,693.2
|
2,924.8
|
|
Intangibles,
net
|
892.0
|
903.7
|
|
Other
assets
|
254.3
|
214.5
|
|
Total
Assets
|
$
13,640.5
|
$
14,248.5
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
Short-term
debt
|
$
626.7
|
$
297.0
|
|
Accounts
payable and accrued liabilities
|
3,633.9
|
3,883.4
|
|
Accrued income
taxes
|
87.8
|
80.1
|
|
Liabilities of
discontinued operations
|
60.7
|
–
|
|
Total current
liabilities
|
4,409.1
|
4,260.5
|
|
|
|
|
Long-term
debt
|
2,563.1
|
2,562.8
|
|
Deferred income
taxes
|
273.5
|
276.8
|
|
Other long-term
liabilities
|
239.0
|
233.0
|
|
Total
liabilities
|
7,484.7
|
7,333.1
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Common stock, par
value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at March
31, 2014 and December 31, 2013
|
2.6
|
2.6
|
|
Capital in excess of
par value
|
3,207.5
|
3,206.9
|
|
Retained
earnings
|
4,931.0
|
4,819.9
|
|
Accumulated other
elements of comprehensive income (loss)
|
(69.1)
|
(79.5)
|
|
Less: Treasury
stock 56,109,636 shares at March 31, 2014 (41,683,164 shares at December 31, 2013)
|
(2,999.5)
|
(2,098.0)
|
|
Total Cameron
stockholders' equity
|
5,072.5
|
5,851.9
|
|
Noncontrolling
interests
|
1,083.3
|
1,063.5
|
|
Total equity
|
6,155.8
|
6,915.4
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
13,640.5
|
$
14,248.5
|
|
Cameron
Unaudited
Consolidated Condensed Statements of Cash Flows
($
millions)
|
|
|
Three Months
Ended
March
31,
|
|
2014
|
2013
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
116.1
|
$
148.3
|
|
Adjustments to
reconcile net income to net cash used for operating
activities:
|
|
|
|
Depreciation
|
67.8
|
56.1
|
|
Amortization
|
19.0
|
13.9
|
|
Non-cash stock
compensation expense
|
14.0
|
13.4
|
|
Deferred income taxes
and tax benefit of stock compensation plan transactions
|
(16.5)
|
14.0
|
|
Changes in assets and
liabilities, net of translation and non-cash items:
|
|
|
|
Receivables
|
(60.3)
|
165.2
|
|
Inventories
|
(174.7)
|
(215.5)
|
|
Accounts payable and
accrued liabilities
|
(213.3)
|
(204.5)
|
|
Other assets and
liabilities, net
|
73.4
|
(13.6)
|
|
Net cash used for
operating activities
|
(174.5)
|
(22.7)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Proceeds from sales
and maturities of short-term investments
|
5.0
|
275.2
|
|
Purchases of
short-term investments
|
(5.0)
|
(286.9)
|
|
Capital
expenditures
|
(104.8)
|
(83.7)
|
|
Proceeds from sales
of plant and equipment
|
6.3
|
3.0
|
|
Net cash used for
investing activities
|
(98.5)
|
(92.4)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Short-term loan
borrowings (repayments), net
|
330.1
|
36.9
|
|
Purchase of treasury
stock
|
(902.0)
|
(32.1)
|
|
Proceeds from stock
option exercises, net of tax payments from stock compensation plan
transactions
|
9.0
|
22.2
|
|
Excess tax benefits
from stock compensation plan transactions
|
2.0
|
5.6
|
|
Principal payments on
capital leases
|
(2.8)
|
(2.7)
|
|
Net cash provided by
(used for) financing activities
|
(563.7)
|
29.9
|
|
|
|
|
Effect of translation
on cash
|
(4.1)
|
(18.2)
|
|
|
|
|
Decrease in cash and
cash equivalents
|
(840.8)
|
(103.4)
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
1,812.9
|
1,185.8
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
972.1
|
$
1,082.4
|
|
Cameron
Orders and
Backlog
($
millions)
|
|
|
Three Months
Ended
March
31,
|
|
Orders(1)
|
2014
|
2013
|
|
|
|
|
Drilling &
Production Systems
|
$
1,758.9
|
$
2,743.0
|
|
Valves &
Measurement
|
536.4
|
538.5
|
|
Process &
Compression Systems
|
186.6
|
268.0
|
|
Total
|
$
2,481.9
|
$
3,549.5
|
|
|
|
|
|
|
|
|
|
Backlog(1)
|
March
31,
2014
|
December 31,
2013
|
March
31,
2013
|
|
|
|
|
|
Drilling &
Production Systems
|
$
9,321.2
|
$
9,451.4
|
$
7,970.7
|
|
Valves &
Measurement
|
1,057.2
|
1,017.4
|
1,083.5
|
|
Process &
Compression Systems
|
890.7
|
941.5
|
864.6
|
|
Total
|
$
11,269.1
|
$
11,410.3
|
$
9,918.8
|
|
|
|
(1)
|
Excludes discontinued
operations
|
|
Cameron
Reconciliation of
GAAP to Non-GAAP Financial Information
($
millions)
|
|
|
Three Months Ended
March 31, 2014
|
|
Drilling
&
Production
Systems
|
Valves &
Measurement
|
Process
&
Compression
Systems(1)
|
Corporate
|
Total
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
$
183.0
|
$
94.1
|
$
15.5
|
$
(122.4)
|
$
170.2
|
|
Depreciation &
amortization
|
66.3
|
11.9
|
7.4
|
1.2
|
86.8
|
|
Interest,
net
|
–
|
–
|
–
|
32.1
|
32.1
|
|
Other
costs
|
–
|
–
|
–
|
49.0
|
49.0
|
|
|
|
|
|
|
|
EBITDA, excluding
other costs
|
$
249.3
|
$
106.0
|
$
22.9
|
$
(40.1)
|
$
338.1
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2013
|
|
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process
&
Compression
Systems(1)
|
Corporate
|
Total
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
$
154.4
|
$
113.4
|
$
19.6
|
$
(106.9)
|
$
180.5
|
|
Depreciation &
amortization
|
43.7
|
9.9
|
6.1
|
7.6
|
67.3
|
|
Interest,
net
|
–
|
–
|
–
|
25.8
|
25.8
|
|
Other
costs
|
–
|
–
|
–
|
31.0
|
31.0
|
|
|
|
|
|
|
|
EBITDA, excluding
other costs
|
$
198.1
|
$
123.3
|
$
25.7
|
$ (42.5)
|
$
304.6
|
|
|
|
(1)
|
Excludes discontinued
operations
|
|
Cameron
Reconciliation of
GAAP to Non-GAAP Financial Information
($ millions,
except per share amounts)
|
|
|
Three Months Ended
March 31, 2014
|
|
After
Tax
|
Diluted
EPS(4)
|
|
|
|
|
Income from
continuing operations
|
$
121.7
|
|
|
Less: Net
income attributable to noncontrolling interests
|
(5.0)
|
|
|
Net income
attributable to Cameron from continuing operations
|
116.7
|
$
0.54
|
|
Adjustments:
|
|
|
|
Impairment of goodwill(1)
|
39.9
|
|
|
Acquisition and other integration costs(2)
|
0.6
|
|
|
Severance, restructuring and other costs(3)
|
5.3
|
|
|
Net income
attributable to Cameron excluding charges
|
$
162.5
|
$
0.75
|
|
|
|
(1) Adjustment is
non-deductible for tax purposes
|
|
(2) Individual
adjustment assumes a 22.5% effective tax rate
|
|
(3) Individual
adjustment assumes a 23.0% effective tax rate
|
|
(4) Based on 216.2
million diluted shares
|
|
|
|
|
|
Three Months Ended
March 31, 2013
|
|
After
Tax(1)
|
Diluted
EPS(2)
|
|
|
|
|
Income from
continuing operations
|
$
146.4
|
$
0.59
|
|
Adjustments:
|
|
|
|
Acquisition and other
integration costs
|
14.9
|
|
|
Devaluation of
Venezuelan bolivar
|
6.0
|
|
|
Mark-to-market impact
on currency derivatives not designated as accounting
hedges
|
2.2
|
|
|
Severance,
litigation, and other restructuring costs
|
1.9
|
|
|
Net income excluding
charges
|
$
171.4
|
$
0.69
|
|
|
|
|
(1) Individual
adjustments assume an 18.9% effective tax rate
|
|
(2) Based on 249.0
million diluted shares
|
|
|
|
SOURCE Cameron