Cooper Cameron Fourth Quarter Earnings Total $0.54 Per Share *
Quarter's earnings per share total $0.54 versus $0.07 a year ago
HOUSTON, Feb. 9 /PRNewswire-FirstCall/ -- Cooper Cameron
Corporation (NYSE:CAM) reported net income of $28.9 million, or
$0.54 per diluted share, for the quarter ended December 31, 2004,
compared with net income in the prior year's fourth quarter of $4.1
million, or $0.07 per diluted share. Revenues for the fourth
quarter of 2004 were $547.2 million, up slightly from the third
quarter of this year, and more than 23 percent above fourth quarter
2003's $443.2 million, with all three business segments
contributing to the revenue increase. Revenues for the year were
$2.09 billion, up approximately 28 percent from 2003's $1.63
billion, with increases in all three segments. Net income for the
year ended December 31, 2004 was $94.4 million, or $1.75 per
diluted share, including a non-cash after-tax write-off of debt
issuance costs of $4.6 million, or $0.09 per diluted share and $2.7
million, or $0.05 per diluted share, for the write-down of a
technology investment. This compares with 2003 net income of $69.4
million, or $1.25 per diluted share, which included after-tax
income of $12.2 million, or $0.21 per diluted share, related to the
cumulative effect of adopting a newly issued accounting standard.
Cameron shows favorable comparisons to year-ago results Cooper
Cameron Chairman, President and Chief Executive Officer Sheldon R.
Erikson said that Cameron's higher revenues in the quarter,
compared with the fourth quarter of 2003, primarily reflect the
early 2004 acquisition of Petreco and increased activity in
Cameron's surface and subsea businesses. "Better performance in
subsea, the addition of Petreco and solid results in our surface
product lines all contributed to the division's improved revenues
and profits," Erikson said. He also noted that Cameron's sequential
revenues were down slightly from the third quarter due to declines
in subsea deliveries and in Petreco's revenues. Cooper Cameron
Valves (CCV) posts higher revenues CCV's revenues were up strongly
from a year ago and sequentially, but profitability declined
somewhat from the third quarter as a result of higher manufacturing
costs (principally higher raw material costs) and severance
charges. "Revenues in all product lines increased from year-ago
levels as continued strength in the rig count and pipeline markets
have positively impacted CCV's business," Erikson said. Cooper
Compression helped by strong international air compression market
Cooper Compression's profits were also higher on both a
year-over-year and sequential basis, as revenues for new
compression equipment posted solid gains as a result of strong
international demand. Orders were up for the quarter and full year
compared with 2003. Orders, year-end backlog reach record levels
Orders booked during the fourth quarter of 2004 totaled $639
million, up more than 58 percent from a year ago, as orders for
each of the Company's three divisions were higher than in the
fourth quarter of 2003. The fourth quarter orders, aided by the
booking of a significant subsea systems project in the Gulf of
Mexico, were the highest for a single quarter in the Company's
history. Total orders for the year 2004 were $2.01 billion, up 15
percent from 2003's $1.75 billion. Erikson noted that Cameron's
$1.27 billion and CCV's $366 million were records for total orders
in those divisions, and helped drive year-end backlog to a new
high. At year-end 2004, total backlog was $1.00 billion, up nearly
six percent from the $947 million of a year ago. Both Cameron and
CCV backlogs, as well as the Company's consolidated backlog, are at
the highest year-end levels in their history. Financial condition
remains solid, stock repurchased during quarter "Our debt, net of
cash and short-term investments, at year-end was $239 million, and
the ratio of this net debt to capitalization increased from 12.0
percent at year-end 2003 to 16.3 percent at year-end 2004," Erikson
said. He noted that the increase was due primarily to $171 million
used for acquisitions made during the year. Erikson also said that
capital expenditures during the year totaled $54 million, down from
$65 million in 2003, excluding acquisitions. Capital expenditures
during 2005 are expected to be approximately $70 to $80 million,
including capital related to expansion efforts at Cameron's
Berwick, Louisiana facility to support expected increases in subsea
activity and additional investment in several recently acquired
valve manufacturing facilities. Erikson also noted that Cooper
Cameron repurchased approximately 250,000 shares of its common
stock during the quarter at an average price of approximately
$50.47, bringing total share repurchases for the year to 1.96
million shares for a total of $95.3 million. Earnings expectations
for 2005 subject to various factors Erikson said the Company
currently expects 2005 earnings to be approximately $2.20 to $2.35
per diluted share, including charges of approximately $0.13 per
share for equity- and option-based compensation. "Our 2005 results
will depend on a variety of factors, including global rig count,
successful integration of our recent acquisitions and the size and
timing of short-cycle business in both the surface and subsea
segments of Cameron," Erikson said. Erikson also noted that Cooper
Cameron's first quarter results are expected to be down
sequentially from the fourth quarter, as has historically been the
case. "We expect first quarter earnings per share to be
approximately $0.35 to $0.40," he said. "The actual results will be
dependent to some extent on our progress in integrating the
manufacturing facilities acquired in late 2004 into both CCV and
Cameron's operations." Cooper Cameron Corporation is a leading
international manufacturer of oil and gas pressure control
equipment, including valves, wellheads, controls, chokes, blowout
preventers and assembled systems for oil and gas drilling,
production and transmission used in onshore, offshore and subsea
applications, and provides oil and gas separation equipment. Cooper
Cameron is also a leading manufacturer of centrifugal air
compressors, integral and separable gas compressors and
turbochargers. Website: http://www.coopercameron.com/ In addition
to the historical data contained herein, this document includes
forward-looking statements regarding the future revenues and
earnings of the Company (including first quarter and full year 2005
earnings per share estimates), as well as assumptions regarding
global rig activity, customer spending levels, pricing levels,
severance costs for the Cameron division and capital expenditures,
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; the size and
timing of orders; the Company's ability to successfully execute the
large subsea systems projects it has been awarded; changes in the
price of (and demand for) oil and gas in both domestic and
international markets; raw material costs; 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 in 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. Cooper Cameron
Corporation Unaudited Consolidated Results of Operations ($ and
shares in millions except per share data) Three Months Ended Twelve
Months Ended December 31, December 31, 2004 2003 2004 2003
Revenues: Cameron $350.3 $ 280.2 $1,402.8 $ 1,018.5 Cooper Cameron
Valves 98.6 79.3 350.1 307.0 Cooper Compression 98.3 83.7 339.9
308.8 Total revenues 547.2 443.2 2,092.8 1,634.3 Costs and
Expenses: Cost of sales (exclusive of depreciation and
amortization) 402.8 335.8 1,560.3 1,181.6 Selling and
administrative expenses 81.0 79.5 300.1 288.6 Depreciation and
amortization 22.6 21.5 82.8 83.6 Non-cash write-down of technology
investment --- --- 3.8 -- Interest income (1.6) (1.2) (4.9) (5.2)
Interest expense 3.0 1.9 17.8 8.1 Total costs and expenses 507.8
437.5 1,959.9 1,556.7 Income before income taxes and cumulative
effect of accounting change 39.4 5.7 132.9 77.6 Income tax
provision (10.5) (1.6) (38.5) (20.4) Income before cumulative
effect of accounting change 28.9 4.1 94.4 57.2 Cumulative effect of
accounting change --- --- --- 12.2 Net income $ 28.9 $ 4.1 $ 94.4 $
69.4 Basic earnings per common share: Before cumulative effect of
accounting change $ 0.54 $ 0.08 $ 1.77 $ 1.05 Cumulative effect of
accounting change --- --- --- 0.23 Net income per common share $
0.54 $ 0.08 $ 1.77 $ 1.28 Diluted earnings per common share: Before
cumulative effect of accounting change $ 0.54 $ 0.07 $ 1.75 $ 1.04
Cumulative effect of accounting change --- --- --- 0.21 Net income
per common share $ 0.54 $ 0.07 $ 1.75 $ 1.25 Average common shares
outstanding 53.1 53.9 53.3 54.4 Average shares utilized in diluted
calculation 53.9 54.4 55.7 59.8 EBITDA: Cameron $ 48.6 $ 12.8
$170.1 $ 114.6 Cooper Cameron Valves 11.7 10.2 50.0 46.4 Cooper
Compression 12.4 9.1 41.5 27.5 Other (9.3) (4.2) (33.0) (24.4)
Total $ 63.4 $ 27.9 $228.6 $ 164.1 Cooper Cameron Corporation
Consolidated Balance Sheets ($ millions, except shares and per
share data) December 31, December 31, 2004 2003 (unaudited) Current
Assets: Cash and cash equivalents $ 227.0 $ 292.1 Short-term
investments -- 22.0 Receivables, net 424.8 316.2 Inventories, net
454.7 473.2 Other 98.8 44.2 Total current assets 1,205.3 1,147.7
Plant and equipment, net 478.6 471.3 Goodwill, net 415.1 316.1
Other assets 257.4 205.6 Total Assets $ 2,356.4 $2,140.7 Current
Liabilities: Current portion of long-term debt $ 7.3 $ 265.0
Accounts payable and accrued liabilities 516.9 397.3 Accrued income
taxes 4.0 17.6 Total current liabilities 528.2 679.9 Long-term debt
458.4 204.1 Postretirement benefits other than pensions 42.6 43.4
Deferred income taxes 40.4 46.1 Other long-term liabilities 58.6
30.5 Total liabilities 1,128.2 1,004.0 Stockholders' Equity: Common
stock, par value $.01 per share, 150,000,000 shares authorized,
54,933,658 shares issued (54,933,658 at December 31, 2003) 0.5 0.5
Capital in excess of par value 948.7 957.9 Retained earnings 272.0
177.6 Accumulated other elements of comprehensive income 95.0 55.3
Less: Treasury stock, 1,795,843 shares (1,130,600 shares at
December 31, 2003) (88.0) (54.6) Total stockholders' equity 1,228.2
1,136.7 Total Liabilities and Stockholders' Equity $ 2,356.4
$2,140.7 Cooper Cameron Corporation Unaudited Consolidated
Statements Of Cash Flows ($ millions) Three Months Twelve Months
Ended Ended December 31, December 31, 2004 2003 2004 2003 Cash
flows from operating activities: Net income $28.9 $ 4.1 $94.4 $
69.4 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation 19.0 18.0 70.1 68.3 Amortization
(primarily capitalized software) 3.6 3.5 12.7 15.3 Write-off of
unamortized debt issuance costs associated with retired debt ---
--- 6.8 --- Non-cash write-down of technology investment --- ---
3.8 --- Non-cash cumulative effect of accounting change --- --- ---
(12.2) Deferred income taxes and other (20.6) (4.3) (14.7) (1.0)
Changes in assets and liabilities, net of translation, acquisitions
and non-cash items: Receivables (6.4) 1.5 (44.3) 3.2 Inventories
13.9 4.6 76.2 (59.8) Accounts payable and accrued liabilities 17.5
7.9 (9.1) 44.6 Other assets and liabilities, net 12.6 (19.9) (0.7)
(26.2) Net cash provided by operating activities 68.5 15.4 195.2
101.6 Cash flows from investing activities: Capital expenditures
(19.3) (21.9) (53.5) (64.7) Acquisitions, net of cash acquired
(78.2) --- (171.0) --- Sales of short-term investments --- 68.9
22.0 157.9 Purchases of short-term investments --- (11.8) ---
(154.5) Other --- 2.8 10.2 9.2 Net cash provided by (used for)
investing activities (97.5) 38.0 (192.3) (52.1) Cash flows from
financing activities: Loan borrowings (repayments), net (4.4) 0.3
(5.0) (0.5) Issuance of long-term senior and convertible debt ---
--- 437.9 --- Redemption of convertible debt --- --- (443.9) ---
Debt issuance costs --- --- (6.5) --- Purchase of treasury stock
(12.6) (10.7) (95.3) (48.7) Activity under stock option plans and
other 9.8 0.2 42.0 1.3 Net cash used for financing activities (7.2)
(10.2) (70.8) (47.9) Effect of translation on cash 5.4 11.4 2.8
16.7 Increase (decrease) in cash and cash equivalents (30.8) 54.6
(65.1) 18.3 Cash and cash equivalents, beginning of period 257.8
237.5 292.1 273.8 Cash and cash equivalents, end of period $227.0
$292.1 $227.0 $ 292.1 Cooper Cameron Corporation Unaudited Orders
and Backlog ($ millions) Orders Three Months Ended Twelve Months
Ended December 31, December 31, 2004 2003 2004 2003 Cameron $ 452.9
$ 233.6 $1,274.4 $1,082.4 Cooper Cameron Valves 97.0 91.2 365.7
324.0 Cooper Compression 89.1 77.9 369.3 340.2 Total $ 639.0 $
402.7 $2,009.4 $1,746.6 Backlog December 31, December 31, 2004 2003
Cameron $ 752.9 $ 771.8 Cooper Cameron Valves 122.9 72.4 Cooper
Compression 124.2 102.4 Total $ 1,000.0 $ 946.6 Cooper Cameron
Corporation Reconciliation of GAAP to Non-GAAP Financial
Information ($ millions) Three Months Ended December 31, 2004
Cooper Cameron Cooper Cameron Valves Compression Corporate Total
Income (loss) before income taxes $ 34.5 $ 8.0 $ 8.3 $ (11.4) $
39.4 Depreciation & amortization 14.1 3.7 4.1 0.7 22.6 Interest
income --- --- --- (1.6) (1.6) Interest expense --- --- --- 3.0 3.0
EBITDA $ 48.6 $ 11.7 $ 12.4 $ (9.3) $ 63.4 Three Months Ended
December 31, 2003 Cooper Cameron Cooper Cameron Valves Compression
Corporate Total Income (loss) before income taxes and cumulative
effect of accounting change $ (0.7 ) $ 7.2 $ 4.7 $ (5.5) $ 5.7
Depreciation & amortization 13.5 3.0 4.4 0.6 21.5 Interest
income --- --- --- (1.2) (1.2) Interest expense --- --- --- 1.9 1.9
EBITDA $ 12.8 $ 10.2 $ 9.1 $ (4.2) $ 27.9 Cooper Cameron
Corporation Reconciliation of GAAP to Non-GAAP Financial
Information ($ millions) Twelve Months Ended December 31, 2004
Cooper Cameron Cooper Cameron Valves Compression Corporate Total
Income (loss) before income taxes $ 118.8 $ 37.8 $ 24.6 $ (48.3) $
132.9 Depreciation & amortization 51.3 12.2 16.9 2.4 82.8
Interest income --- --- --- (4.9) (4.9) Interest expense --- ---
--- 17.8 17.8 EBITDA $ 170.1 $ 50.0 $ 41.5 $ (33.0) $ 228.6 Twelve
Months Ended December 31, 2003 Cooper Cameron Cooper Cameron Valves
Compression Corporate Total Income (loss) before income taxes and
cumulative effect of accounting change $ 63.4 $ 33.7 $ 10.3 $
(29.8) $ 77.6 Depreciation & amortization 51.2 12.7 17.2 2.5
83.6 Interest income --- --- --- (5.2) (5.2) Interest expense ---
--- --- 8.1 8.1 EBITDA $ 114.6 $ 46.4 $ 27.5 $ (24.4) $ 164.1
DATASOURCE: Cooper Cameron Corporation CONTACT: R. Scott Amann,
Vice President, Investor Relations of Cooper Cameron Corporation,
+1-713-513-3344 Web site: http://www.coopercameron.com/
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