Cooper Cameron Second Quarter Earnings Per Share $0.70 * Earnings
per share total $0.70 versus $0.35 a year ago * 2005 full-year
earnings expectations raised to $2.75 to $2.85 per share * Orders
exceed $1.1 billion in quarter; backlog at record $1.6 billion
HOUSTON, July 21 /PRNewswire-FirstCall/ -- Cooper Cameron
Corporation (NYSE:CAM) reported net income of $38.6 million, or
$0.70 per diluted share, for the quarter ended June 30, 2005. This
compares with net income of $18.7 million, or $0.35 per diluted
share, for the second quarter of 2004, which included a non-cash
after-tax write-off of debt issuance costs of $4.6 million, or
$0.09 per diluted share. Total revenues were $594.7 million for the
quarter, up nine percent from 2004's $544.6 million, while income
before income taxes was $57.5 million, up nearly 107 percent from
$27.8 million a year ago. Year-over-year revenue increase fueled by
CCV, Compression Cooper Cameron Chairman, President and Chief
Executive Officer Sheldon R. Erikson said that strong revenue gains
in Cooper Cameron's shorter-cycle businesses -- Cooper Cameron
Valves (CCV), Cooper Compression and Cameron's surface equipment --
drove the year-over-year and sequential increase in revenues.
"Increased shipments at CCV and Compression allowed us to record
the Company's highest consolidated quarterly revenues in our
history," Erikson said. Free cash flow generation ahead of year-ago
pace Erikson said that the Company has generated nearly $156
million of free cash flow (net cash provided by operating
activities less capital expenditures) during the first half of
2005, compared with approximately $45 million in the first half of
2004. "Our capital spending programs provide for significant
reinvestment in, and upgrades to, our existing facilities," he
said. "Our challenge is to effectively redeploy the cash we
generate above and beyond those needs toward profitable
acquisitions or additional repurchases of our common stock."
Cameron revenues up sequentially, expected to increase in second
half Erikson noted that Cameron's revenues were up sequentially,
but were down from the second quarter of 2004, when Cameron's
results included a significant amount of subsea systems shipments
with substantial pass-through revenues. "While revenues were lower
than a year ago," Erikson said, "Cameron's product mix and the
impact of price increases generated higher margins and more
operating profit on a year-over-year basis. We do expect that
Cameron's second-half revenues will exceed those of the second half
of 2004, and that margins will continue to improve in comparison
with year-ago levels." CCV revenue gains reflect acquisitions,
market activity CCV's revenues, aided by recent acquisitions, were
up both sequentially and year-over-year, reaching the highest
quarterly total in its history. Erikson said the integration of the
late 2004 acquisition is essentially complete, and the recent
acquisition of NuFlo Technologies is contributing to revenues and
profitability as expected. "Strength in the North American rig
count and international pipeline markets should allow CCV to
continue its solid revenues and earnings performance," he said.
Cooper Compression benefiting from recent strong bookings Cooper
Compression's revenues were up significantly on both a sequential
and year-over-year basis as a recent upswing in orders is being
converted into deliveries. "Compression's first quarter revenues
and earnings were relatively soft," Erikson said, "but we expect
their recent record backlog to generate increased revenues and
profitability in the next couple of quarters." Major subsea systems
project, overall market activity generate record orders Orders
received during the second quarter of 2005 totaled $1.1 billion, up
125 percent from year-ago levels. Erikson noted that the second
quarter increase reflected $350 million of the $415 million order
from Total for the Akpo project in Nigeria. "Excluding the Akpo
award, orders for the quarter increased 54 percent from a year ago
and 11 percent sequentially," Erikson said. "During the second
quarter, we received more than $1 billion in orders for the first
time in our history, on top of posting record orders in the first
quarter of 2005. The combination of the Akpo project booking and
continuing strength across our product lines brings our
year-to-date orders for all of Cooper Cameron to approximately $1.8
billion, up more than 96 percent from a year ago." At June 30,
2005, total backlog was $1.62 billion, up from the prior quarter's
record of $1.13 billion and the June 30, 2004 level of $955
million. Balance sheet remains solid At June 30, 2005, Cooper
Cameron's total debt was $449.4 million, and cash and cash
equivalents were $308.5 million, resulting in net debt of $140.9
million and a net debt-to-capitalization ratio of approximately
nine percent. Earnings expectations raised Erikson said that Cooper
Cameron's third quarter earnings are expected to increase to
approximately $0.75 to $0.80 per share. He also noted that full-
year earnings are expected to be approximately $2.75 to $2.85 per
share, up from the Company's earlier guidance of $2.45 to $2.60.
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, metering and flow measurement 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 third quarter and full year 2005
earnings per share estimates), as well as expectations regarding
margins and profitability, 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 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 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 Six Months Ended June 30, Ended June 30, 2005
2004 2005 2004 Revenues: Cameron $350.2 $376.5 $691.8 $687.0 Cooper
Cameron Valves 145.6 85.4 269.0 162.6 Cooper Compression 98.9 82.7
181.9 157.5 Total revenues 594.7 544.6 1,142.7 1,007.1 Costs and
Expenses: Cost of sales (exclusive of depreciation and
amortization) 422.9 416.4 830.2 762.2 Selling and administrative
expenses 96.0 71.2 174.2 142.1 Depreciation and amortization 18.9
19.7 38.7 40.2 Interest income (3.3) (0.9) (5.2) (2.2) Interest
expense 2.7 10.4 5.2 12.8 Total costs and expenses 537.2 516.8
1,043.1 955.1 Income before income taxes 57.5 27.8 99.6 52.0 Income
tax provision (18.9) (9.1) (32.4) (16.1) Net income $38.6 $18.7
$67.2 $35.9 Earnings per common share: Basic $0.71 $0.35 $1.24
$0.67 Diluted $0.70 $0.35 $1.23 $0.66 Shares used in computing
earnings per common share: Basic 54.5 53.2 54.2 53.5 Diluted 55.2
53.7 54.8 54.0 EBITDA: Cameron $49.4 $41.9 $91.1 $73.4 Cooper
Cameron Valves 29.5 11.9 49.5 23.3 Cooper Compression 11.0 9.4 19.0
17.6 Corporate and other (14.1) (6.2) (21.3) (11.5) Total $75.8
$57.0 $138.3 $102.8 Cooper Cameron Corporation Consolidated Balance
Sheets ($ millions, except shares and per share data) June 30, Dec.
31, 2005 2004 (unaudited) Assets: Cash and cash equivalents $308.5
$227.0 Receivables, net 435.4 424.8 Inventories, net 489.8 454.7
Other 86.0 98.8 Total current assets 1,319.7 1,205.3 Plant and
equipment, net 463.3 478.6 Goodwill, net 492.0 415.1 Other assets
260.0 257.4 Total Assets $2,535.0 $2,356.4 Liabilities and
Stockholders' Equity: Current portion of long-term debt $6.3 $7.3
Accounts payable and accrued liabilities 599.3 516.9 Accrued income
taxes 8.1 4.0 Total current liabilities 613.7 528.2 Long-term debt
443.1 458.4 Postretirement benefits other than pensions 41.3 42.6
Deferred income taxes 37.7 40.4 Other long-term liabilities 52.8
58.6 Total liabilities 1,188.6 1,128.2 Stockholders' Equity: Common
stock, par value $.01 per share, 150,000,000 shares authorized,
55,194,604 shares issued at June 30, 2005 and 54,933,658 at
December 31, 2004 0.6 0.5 Capital in excess of par value 959.8
948.7 Retained earnings 339.2 272.0 Accumulated other elements of
comprehensive income 47.4 95.0 Less: Treasury stock, 9,500 shares
at June 30, 2005 (1,795,843 shares at December 31, 2004) (0.6)
(88.0) Total stockholders' equity 1,346.4 1,228.2 Total Liabilities
and Stockholders' Equity $2,535.0 $2,356.4 Cooper Cameron
Corporation Unaudited Consolidated Statements Of Cash Flows ($
millions) Three Months Six Months Ended June 30, Ended June 30,
2005 2004 2005 2004 Cash flows from operating activities: Net
income $38.6 $18.7 $67.2 $35.9 Adjustments to reconcile net income
to net cash provided by operating activities: Depreciation 15.6
16.8 33.1 34.0 Amortization (primarily capitalized software) 3.3
2.9 5.6 6.2 Write-off of unamortized debt issuance costs associated
with retired debt --- 6.8 --- 6.8 Deferred income taxes and other
8.7 2.0 13.5 (1.6) Changes in assets and liabilities, net of
translation, acquisitions and non-cash items: Receivables (16.0)
(32.0) (8.4) (29.2) Inventories (28.9) 61.8 (30.8) 46.7 Accounts
payable and accrued liabilities 97.4 16.3 79.7 (5.6) Other assets
and liabilities, net 9.8 (29.1) 21.9 (24.0) Net cash provided by
operating activities 128.5 64.2 181.8 69.2 Cash flows from
investing activities: Capital expenditures (14.2) (14.3) (26.0)
(24.2) Acquisitions, net of cash acquired (120.1) (0.2) (121.9)
(85.6) Sales of short-term investments --- 5.0 --- 36.5 Purchases
of short-term investments --- 0.2 --- (14.5) Other 0.6 1.9 0.6 3.6
Net cash used for investing activities (133.7) (7.4) (147.3) (84.2)
Cash flows from financing activities: Loan repayments, net (0.9)
(0.3) (2.1) (0.3) Issuance of long-term senior and convertible debt
--- 238.0 437.9 Redemption of convertible debt --- (443.9) (14.8)
(443.9) Debt issuance costs --- (5.5) (6.4) Purchase of treasury
stock (0.6) (46.0) (6.9) (56.9) Activity under stock option plans
and other 38.6 3.0 90.4 6.8 Net cash provided by (used for)
financing activities 37.1 (254.7) 66.6 (62.8) Effect of translation
on cash (15.6) (4.6) (19.6) (5.7) Increase (decrease) in cash and
cash equivalents 16.3 (202.5) 81.5 (83.5) Cash and cash
equivalents, beginning of period 292.2 411.1 227.0 292.1 Cash and
cash equivalents, end of period $308.5 $208.6 $308.5 $208.6 Cooper
Cameron Corporation Orders and Backlog ($ millions) Orders Three
Months Six Months Ended June 30, Ended June 30, 2005 2004 2005 2004
Cameron $843.0 $315.3 $1,245.2 $547.9 Cooper Cameron Valves 155.5
87.5 306.2 177.0 Cooper Compression 108.8 89.6 235.5 187.8 Total
$1,107.3 $492.4 $1,786.9 $912.7 Backlog June 30, Dec. 31, June 30,
2005 2004 2004 Cameron $1,286.8 $752.9 $742.3 Cooper Cameron Valves
161.4 122.9 83.5 Cooper Compression 172.4 124.2 129.2 Total
$1,620.6 $1,000.0 $955.0 Cooper Cameron Corporation Reconciliation
of GAAP to Non-GAAP Financial Information ($ millions) EBITDA Three
Months Ended June 30, 2005 Cooper Cameron Cooper Cameron Valves
Compression Corporate Total Income (loss) before income taxes $38.4
$25.9 $7.2 $(14.0) $57.5 Depreciation & amortization 11.0 3.6
3.8 0.5 18.9 Interest income --- --- --- (3.3) (3.3) Interest
expense --- --- --- 2.7 2.7 EBITDA $49.4 $29.5 $11.0 $(14.1) $75.8
EBITDA Three Months Ended June 30, 2004 Cooper Cameron Cooper
Cameron Valves Compression Corporate Total Income (loss) before
income taxes $29.6 $9.2 $5.3 $(16.3) $27.8 Depreciation &
amortization 12.3 2.7 4.1 0.6 19.7 Interest income --- --- ---
(0.9) (0.9) Interest expense --- --- --- 10.4 10.4 EBITDA $41.9
$11.9 $9.4 $(6.2) $57.0 Cooper Cameron Corporation Reconciliation
of GAAP to Non-GAAP Financial Information ($ millions) EBITDA Six
Months Ended June 30, 2005 Cooper Cameron Cooper Cameron Valves
Compression Corporate Total Income (loss) before income taxes $69.3
$43.0 $9.7 $(22.4) $99.6 Depreciation & amortization 21.8 6.5
9.3 1.1 38.7 Interest income --- --- --- (5.2) (5.2) Interest
expense --- --- --- 5.2 5.2 EBITDA $91.1 $49.5 $19.0 $(21.3) $138.3
EBITDA Six Months Ended June 30, 2004 Cooper Cameron Cooper Cameron
Valves Compression Corporate Total Income (loss) before income
taxes $48.5 $17.9 $8.9 $(23.3) $52.0 Depreciation &
amortization 24.9 5.4 8.7 1.2 40.2 Interest income --- --- ---
(2.2) (2.2) Interest expense --- --- --- 12.8 12.8 EBITDA $73.4
$23.3 $17.6 $(11.5) $102.8 Free Cash Flow Three Months Ended Six
Months Ended June 30, June 30, 2005 2004 2005 2004 Net cash
provided by operating activities $128.5 $64.2 $181.8 $69.2 Capital
expenditures (14.2) (14.3) (26.0) (24.2) Free cash flow $114.3
$49.9 $155.8 $45.0 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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