Total Company inbound orders of$6.2 billion ; book-to-bill of 2.1- Net income of
$20.9 million and adjusted EBITDA of$295.8 million - Updated 2019 financial guidance reflects strong orders and execution in Onshore/Offshore and lower North American activity in Surface Technologies
Adjusted EBITDA, which excludes pre-tax charges and credits, was
Other significant pre-tax items impacting the quarter, for which we do not provide guidance, included the following:
$11.6 million of foreign exchange losses included in corporate expense, or$0.02 per diluted share on an after-tax basis; and$84.7 million of increased liability payable to joint venture partners included in interest expense, or$0.19 per diluted share on an after-tax basis.
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% | ||||
“In Onshore/Offshore, we continue to execute well and achieved notable project milestones during the period. Orders of
“In Surface Technologies, weaker-than-expected activity in
Pferdehirt continued, “Strong Subsea orders of
“In the first four months of 2019, we have secured seven new integrated projects, representing an aggregate contract value of
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
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
Subsea reported operating profit of
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
- Total Egina (
Nigeria )
Delivered final subsea tree for one of the largest subsea projects inWest Africa .
- Total Kaombo (
Angola )
Completed hookup campaign for the South floating production, storage and offloading unit.
- Skandi Olinda PLSV (
Brazil )
Commenced eight-year charter contract with Petrobras.
Subsea inbound orders for the quarter were
BP Atlantis Phase 3 iEPCI™ Project (Gulf ofMexico )
Significant* iEPCI™ contract by BP for the Atlantis Phase 3 project. Following final investment decisions from all partners,TechnipFMC will manufacture, deliver and install subsea equipment. The contract also includes provisional services for tooling and personnel required to install the hardware.
* A “significant” award ranges between$75 million and $250 million .
Lundin Solveig (Luno II) and Rolvsnes iEPCI™ Projects (North Sea )
Substantial* iEPCI™ contract fromLundin Norway for the Solveig (Luno II) and Rolvsnes development. The contract covers the delivery and installation of subsea equipment including umbilicals, rigid flowlines, flexible jumpers and subsea production systems.
* A “substantial” award ranges between$250 million and $500 million .
Petrobras Mero I Pre-Salt Project (Brazil )
Large* engineering, procurement, construction and installation contract by Petrobras, on behalf of theLibra Consortium , for the Mero 1 pre-salt field. The contract covers engineering, procurement, construction of all rigid lines, as well as the installation and pre-commissioning of all the infield riser and flowline system. It also includes the installation of rigid pipelines, flexible risers and flowlines, steel tube umbilicals and other required subsea equipment.
* A “large” award ranges between$500 million and $1 billion .
- Equinor Johan Sverdrup Phase 2 Project (
North Sea )
Significant* contract fromEquinor for the Johan Sverdrup Phase 2 development. The contract covers the delivery and installation of the subsea production system including integrated template structures, manifolds, tie-in and controls equipment.
* A “significant” award ranges between$75 million and $250 million .
- Eni Merakes iEPCI™ Project (
Indonesia )
Large* iEPCI™ contract by Eni for the Merakes project. This contract covers five deepwater wells, and their 50-kilometer tie back to the existing Jangkrik Floating Production Unit inIndonesia . The project scope includes engineering, procurement, installation and pre-commissioning of subsea equipment.
* A “large” award ranges between$500 million and $1 billion .
Total Lapa Pre-Salt Project (Brazil )
Significant* contract for the Lapa field by Total. The contract covers the supply of flexible pipes for oil production, gas lift and gas injection as well as associated accessories. The field will be connected to the floating production storage and offloading unit (FPSO) Cidade de Caraguatatuba, already in operation.
* A “significant” award ranges between$75 million and $250 million .
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
Onshore/Offshore reported operating profit of
First Quarter Onshore/Offshore Highlights
- MIDOR refinery (
Egypt )
Detailed design and procurement activities as well as site preparation ongoing. BP Tortue Ahmeyim gas FPSO (Mauritania andSenegal )
Engineering, Procurement, and Construction (EPC) phase launched following successful delivery of FEED.
Sasol petrochemical complex (United States )TechnipFMC and partners completed construction scope of work onSasol Project inLouisiana .
- Shell Prelude FLNG (
Australia )
Performed first condensate export at the end of March.
Onshore/Offshore inbound orders for the quarter were
- ExxonMobil Refinery Expansion (
United States )
Large* reimbursable contract fromExxonMobil for detailed engineering, procurement, and construction for the recently announced crude expansion project inBeaumont, Texas . The awarded scope covers the addition of four new units – atmospheric pipe still, kerosene hydrotreater, diesel hydrotreater and benzene recovery at ExxonMobil’s Refinery.
* A “large” award ranges between$500 million and $1 billion .
BP Greater Tortue Ahmeyim Development FPSO (Mauritania andSenegal )
Large* contract by BP for the engineering, procurement, construction, installation and commissioning (EPCIC) of the FPSO unit to be deployed offshore on the maritime border ofMauritania andSenegal . This award is a continuation to the FEED contract awarded inApril 2018 .
* A “large” award ranges between$500 million and $1 billion .
- MIDOR Refinery Expansion and Modernization (
Egypt )
Major* EPC contract byMiddle East Oil Refinery (MIDOR) for the modernization and expansion of their existing complex nearAlexandria, Egypt . This EPC contract covers the debottlenecking of existing units as well as the delivery of new units including a Crude Distillation Unit, a Vacuum Distillation Unit, a hydrogen production facility based on our steam reforming technology, as well as various process units, interconnecting, offsites and utilities.
* A “major” award is over$1 billion .
In addition to these announced awards in the period, we continue to strengthen our Process Technology business unit with important new partnerships, including:
- Mid-scale, modular LNG solutions offering
We have developed a number of standardized, modular mid-scale LNG train designs with capacities ranging from 1 to 3 Mtpa (million metric tons per annum) using Air Products’ AP-SMR™ and AP-DMR™ processes. Delivered by Engineering Procurement and Fabrication models, these designs offer more certainty around cost and schedule. We have received contracts inChina andNorth America .
- ExxonMobil Chemicals Master License and Engineering Agreement (MLEA) for Ethylene technology
Long-term MLEA for our proprietary ethylene technology and process design package starting with a proposed 1.2 million tons plant inHuizhou, China .
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
Surface Technologies reported operating profit of
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
Outside the
Inbound orders for the quarter were
Corporate and Other Items
Corporate expense in the first quarter was
Net interest expense was
The Company recorded a tax provision during the quarter of
Total depreciation and amortization for the quarter was
The Company repurchased 2.2 million shares during the quarter. Total consideration was
Cash flow from operations in the quarter was
Other Accounting Items
On
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
- an operating lease liability of approximately
$1,133.9 million which represents the present value of the remaining lease payments discounted using the Company’s applicable weighted average incremental borrowing rates; and - an operating lease right-of-use asset of approximately
$1,105.9 million which represents the lease liability of$1,133.9 million adjusted for lease incentives, prepaid rent, and other balances.
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
Details regarding the adoption of IFRS 16 will be provided in the Half-Year Financial Report for the half year ending
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:
- Onshore/Offshore revenue in a range of
$6.0 – 6.3 billion; revenue has been increased from the previous guidance range of$5.7 – 6.0 billion. - Onshore/Offshore EBITDA margin of at least 14% (excluding amortization related impact of purchase price accounting, and other charges and credits); EBITDA margin guidance has been increased from the previous guidance of at least 12%.
- Surface Technologies revenue in a range of
$1.6 – 1.7 billion; revenue has been decreased from the previous guidance range of$1.7 – 1.8 billion. - Surface Technologies EBITDA margin of at least 12% (excluding amortization related impact of purchase price accounting, and other charges and credits); EBITDA margin guidance has been decreased from the previous guidance of at least 17%.
Teleconference
The Company will host a teleconference on
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
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 @
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:
- unanticipated changes relating to competitive factors in our industry;
- demand for our products and services, which is affected by changes in the price of, and demand for, crude oil and natural gas in domestic and international markets;
- our ability to develop and implement new technologies and services, as well as our ability to protect and maintain critical intellectual property assets;
- potential liabilities arising out of the installation or use of our products;
- cost overruns related to our fixed price contracts or capital asset construction projects that may affect revenues;
- our ability to timely deliver our backlog and its effect on our future sales, profitability, and our relationships with our customers;
- our reliance on subcontractors, suppliers and joint venture partners in the performance of our contracts;
- our ability to hire and retain key personnel;
- piracy risks for our maritime employees and assets;
- the potential impacts of seasonal and weather conditions;
- the cumulative loss of major contracts or alliances;
- U.S. and international laws and regulations, including existing or future environmental regulations, that may increase our costs, limit the demand for our products and services or restrict our operations;
- disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business;
- risks associated with
The Depository Trust Company andEuroclear for clearance services for shares traded on theNYSE andEuronext Paris , respectively; - the United Kingdom’s proposed withdrawal from the
European Union ; risks associated with being an English public limited company, including the need for “distributable profits”, shareholder approval of certain capital structure decisions, and the risk that we may not be able to pay dividends or repurchase shares in accordance with our announced capital allocation plan; - compliance with covenants under our debt instruments and conditions in the credit markets;
- downgrade in the ratings of our debt could restrict our ability to access the debt capital markets;
- the outcome of uninsured claims and litigation against us;
- the risks of currency exchange rate fluctuations associated with our international operations;
- significant merger-related costs;
- risks related to our acquisition and divestiture activities;
- failure of our information technology infrastructure or any significant breach of security, including related to cyber attacks, and actual or perceived failure to comply with data security and privacy obligations;
- risks that the legacy businesses of
FMC Technologies, Inc. andTechnip S.A. will not be integrated successfully or that the combined company will not realize estimated cost savings, value of certain tax assets, synergies and growth or that such benefits may take longer to realize than expected; - risks associated with tax liabilities, changes in U.S. federal or international tax laws or interpretations to which they are subject;
- the remedial measures to address our material weaknesses could be insufficient or additional issues relating to disclosure controls and procedures or internal control over financial reporting could be identified; and
- such other risk factors set forth in our filings with the
United States Securities and Exchange Commission and in our filings with the Autorité des marchés financiers or theU.K. Financial Conduct Authority .
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 SUBSIDIARIES
RECONCILIATION 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
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) |
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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.
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Source:
Investor relations
Matt Seinsheimer
Vice President Investor Relations
Tel: +1 281 260 3665
Email: Matt Seinsheimer
Phillip Lindsay
Director Investor Relations (Europe)
Tel: +44 (0) 20 3429 3929
Email: Phillip Lindsay
Media relations
Christophe Bélorgeot
Senior Vice President Corporate Engagement
Tel: +33 1 47 78 39 92
Email: Christophe Belorgeot
Delphine Nayral
Director Public Relations
Tel: +33 1 47 78 34 83
Email: Delphine Nayral