HOUSTON, July 28, 2011 /PRNewswire/ -- Cameron (NYSE: CAM) reported net income of
$148.0 million, or $0.59 per diluted share, for the quarter ended
June 30, 2011, compared with net
income of $129.2 million, or
$0.52 per diluted share, for the
second quarter of 2010. The second quarter 2011 results
include pre-tax charges of $20.1
million, or $0.07 per share,
primarily related to litigation and restructuring costs. The
second quarter 2010 results included pre-tax charges of
$18.4 million, or $0.06 per diluted share, related to the continued
integration of the NATCO Group Inc. acquisition, as well as
litigation and severance costs.
Year-over-year revenues increase in every segment
Revenues were $1.74 billion for
the quarter, up 19.9 percent from $1.45
billion a year ago, and income before income taxes was
$187.4 million. Cameron Chairman and
Chief Executive Officer Jack B.
Moore said that the year-over-year revenue increase was due
to gains in all three of the Company's segments, with the Drilling
& Production Systems (DPS) and Valves & Measurement
(V&M) segments seeing double digit revenue gains. He
noted that EBITDA margins were in line with the Company's
expectations for the quarter. "DPS margins sequentially
reflected a higher level of subsea revenues which moderated the
segment's overall margins; V&M margins showed a solid recovery
year-over-year and sequentially; and margins in the PCS business
are up from the first quarter," Moore said.
Orders increase 72%– quarterly records set for several
businesses
Total orders were $2.39 billion
for the quarter, up from $1.39
billion in the second quarter of 2010, for an increase of
72%. Moore noted that this was the second highest orders
quarter in Cameron's history.
Record bookings were established for the drilling, engineered
and process valves and the process businesses. Notable were
nine deepwater stack and five jackup awards for the drilling
business. Drilling and surface also saw their largest quarterly
aftermarket orders in Cameron's
history. Subsea saw its second highest quarterly orders since 2009.
The process business also received two large awards for MEG
reclamation units to support deepwater developments.
Cameron's backlog at the end of
the second quarter was $5.52 billion,
up from the first quarter level of $4.89
billion and up from $4.92
billion a year ago. Moore noted that V&M and PCS
increased backlog over the past year with V&M gaining more than
61 percent from year-ago levels, and PCS up 24 percent.
Capital investment continues, balance sheet strong
Cameron's operations generated
cash of $101.4 million during the
second quarter. Moore said cash flow from operations should
accelerate in the back half of the year as Cameron's working capital needs moderate.
Moore also noted that Cameron
spent approximately $134.3 million in
capital expenditures in the first half. "We now expect capital
spending to approximate $300 million
for 2011", Moore said, "as we focus on investments in our
aftermarket and unconventional resource related businesses, as well
as our Brazilian capacity expansion". Moore noted that the Company
called its 2.5% convertible debentures during the second quarter
and the cash repurchase should be completed during the third
quarter. He said that this would result in a 5.2 million share
reduction from the first quarter of 2011.
Moore said that as of June 30,
2011, Cameron's
$2.04 billion of cash and cash
equivalents exceeded its total debt by approximately $89 million.
Full-year earnings guidance raised
Moore said Cameron's third
quarter earnings are expected to be in the range of $0.70 to $0.75 per share, and the Company
anticipates full-year 2011 earnings, excluding charges, will be in
the range of $2.55 to $2.65 per
share, compared with the previous expectation of $2.50 to
$2.60.
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 future cash
flows, costs, margins, free cash flow and earnings of the Company
(including third quarter and full-year 2011 earnings per share
estimates), as well as expectations regarding cash and capital
needs, acquisitions and stock repurchases, 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 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 June 30,
|
Six
Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Drilling & Production
Systems(1)
|
$ 1,002.7
|
$ 836.4
|
$ 1,868.3
|
$ 1,656.1
|
|
|
Valves &
Measurement
|
426.5
|
325.3
|
766.4
|
624.4
|
|
|
Process & Compression
Systems(1)
|
311.9
|
291.0
|
607.6
|
518.9
|
|
|
Total revenues
|
1,741.1
|
1,452.7
|
3,242.3
|
2,799.4
|
|
|
|
|
|
|
|
|
Costs and Expenses:
|
|
|
|
|
|
|
Cost of sales (exclusive
of depreciation and amortization shown separately below)
|
1,213.4
|
984.7
|
2,271.2
|
1,898.8
|
|
|
Selling and administrative
expenses
|
250.5
|
205.0
|
480.3
|
401.7
|
|
|
Depreciation and
amortization
|
47.6
|
52.9
|
92.4
|
101.0
|
|
|
Interest, net
|
22.1
|
19.4
|
42.2
|
36.4
|
|
|
Other costs
|
20.1
|
18.4
|
29.0
|
28.7
|
|
|
Total costs and
expenses
|
1,553.7
|
1,280.4
|
2,915.1
|
2,466.6
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
187.4
|
172.3
|
327.2
|
332.8
|
|
|
Income tax provision
|
(39.4)
|
(43.1)
|
(69.6)
|
(83.2)
|
|
|
Net income
|
$
148.0
|
$
129.2
|
$
257.6
|
$
249.6
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
Basic
|
$
0.60
|
$
0.53
|
$
1.05
|
$
1.02
|
|
|
Diluted
|
$
0.59
|
$
0.52
|
$
1.03
|
$
1.01
|
|
|
|
|
|
|
|
|
Shares used in computing
earnings per common share:
|
|
|
|
|
|
|
Basic
|
245.0
|
242.9
|
244.8
|
243.6
|
|
|
Diluted
|
249.9
|
246.4
|
251.1
|
247.7
|
|
|
|
|
|
|
|
|
EBITDA:
|
|
|
|
|
|
|
Drilling & Production
Systems(1)
|
$ 187.3
|
$ 168.1
|
$ 327.8
|
$ 347.1
|
|
|
Valves &
Measurement
|
85.6
|
56.2
|
150.8
|
115.4
|
|
|
Process & Compression
Systems (1)
|
43.3
|
56.1
|
82.1
|
84.3
|
|
|
Corporate and
other(2)
|
(59.1)
|
(35.8)
|
(98.9)
|
(76.6)
|
|
|
Total
|
$
257.1
|
$
244.6
|
$
461.8
|
$
470.2
|
|
|
|
|
|
|
|
|
|
(1) Prior period segment data
has been retrospectively revised to reflect the change in segments
during the third quarter of 2010.
|
|
|
|
|
(2) Corporate EBITDA amounts
include $20.1 million and $29.0 million of other costs for the
three- and six-month periods ended June 30, 2011; and $18.4 million
and $28.7 million for the three- and six-month periods ended June
30, 2010.
|
|
|
|
Cameron
|
|
|
Consolidated Condensed Balance
Sheets
|
|
|
($ millions)
|
|
|
|
|
June
30,
2011
|
December
31,
2010
|
|
|
(unaudited)
|
|
|
|
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
2,043.1
|
$ 1,832.5
|
|
|
Receivables, net
|
1,287.8
|
1,056.1
|
|
|
Inventories, net
|
2,108.0
|
1,779.3
|
|
|
Other
|
268.5
|
265.0
|
|
|
Total current
assets
|
5,707.4
|
4,932.9
|
|
|
|
|
|
|
Plant and equipment,
net
|
1,342.4
|
1,247.8
|
|
|
Goodwill
|
1,531.3
|
1,475.8
|
|
|
Other assets
|
345.9
|
348.6
|
|
|
Total Assets
|
$
8,927.0
|
$
8,005.1
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity:
|
|
|
|
|
Current portion of long-term
debt
|
$ 431.0
|
$ 519.9
|
|
|
Accounts payable and accrued
liabilities
|
1,928.4
|
2,016.0
|
|
|
Accrued income taxes
|
23.8
|
38.0
|
|
|
Total current
liabilities
|
2,383.2
|
2,573.9
|
|
|
|
|
|
|
Long-term debt
|
1,523.6
|
772.9
|
|
|
Deferred income taxes
|
85.5
|
95.7
|
|
|
Other long-term
liabilities
|
193.2
|
170.2
|
|
|
Total
liabilities
|
4,185.5
|
3,612.7
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
Common stock, par value
$.01 per share, 400,000,000 shares
authorized,
263,111,472 shares issued at June 30, 2011 and
December 31,
2010
|
2.6
|
2.6
|
|
|
Capital in excess of par
value
|
2,215.2
|
2,259.3
|
|
|
Retained
earnings
|
3,105.9
|
2,848.3
|
|
|
Accumulated other elements
of comprehensive income (loss)
|
77.9
|
(27.1)
|
|
|
Less: Treasury
stock, 18,045,968 shares at June 30, 2011
(19,197,642
shares at December 31, 2010)
|
(660.1)
|
(690.7)
|
|
|
Total stockholders'
equity
|
4,741.5
|
4,392.4
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
8,927.0
|
$
8,005.1
|
|
|
|
|
|
|
|
Cameron
|
|
|
Unaudited Consolidated Condensed
Statements of Cash Flows
|
|
|
($ millions)
|
|
|
|
|
Three
Months
Ended June 30,
|
Six
Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
Net income
|
$ 148.0
|
$ 129.2
|
$ 257.6
|
$ 249.6
|
|
|
Adjustments to reconcile net
income to net cash provided by (used for) operating
activities:
|
|
|
|
|
|
|
Depreciation
|
37.6
|
37.6
|
72.2
|
71.4
|
|
|
Amortization
|
10.0
|
15.3
|
20.2
|
29.6
|
|
|
Non-cash stock compensation
expense
|
9.4
|
6.4
|
17.5
|
18.5
|
|
|
Deferred income taxes and
tax benefit of employee stock
compensation
plan transactions
|
(31.8)
|
12.9
|
(13.0)
|
7.5
|
|
|
Changes in assets and
liabilities, net of translation, acquisitions and non-cash
items:
|
|
|
|
|
|
|
Receivables
|
(169.5)
|
(39.8)
|
(201.2)
|
20.1
|
|
|
Inventories
|
(111.5)
|
(21.9)
|
(285.0)
|
(65.9)
|
|
|
Accounts payable and accrued
liabilities
|
115.9
|
(139.8)
|
(133.4)
|
(367.5)
|
|
|
Other assets and liabilities,
net
|
93.3
|
(39.6)
|
39.8
|
(118.7)
|
|
|
Net cash provided by (used for)
operating activities
|
101.4
|
(39.7)
|
(225.3)
|
(155.4)
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
Capital expenditures
|
(72.4)
|
(38.2)
|
(134.3)
|
(68.1)
|
|
|
Acquisitions, net of cash
acquired
|
(14.9)
|
(13.0)
|
(42.5)
|
(40.9)
|
|
|
Proceeds from sale of plant and
equipment
|
3.2
|
4.7
|
9.9
|
7.6
|
|
|
Net cash used for investing
activities
|
(84.1)
|
(46.5)
|
(166.9)
|
(101.4)
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
Short-term loan borrowings
(repayments), net
|
33.5
|
(2.1)
|
31.5
|
(18.7)
|
|
|
Issuance of senior
debt
|
747.8
|
–
|
747.8
|
–
|
|
|
Debt issuance costs
|
(4.7)
|
–
|
(4.7)
|
–
|
|
|
Redemption of convertible
debentures
|
(181.2)
|
–
|
(181.2)
|
–
|
|
|
Premium for purchased call
options
|
(21.9)
|
–
|
(21.9)
|
–
|
|
|
Purchase of treasury
stock
|
–
|
(84.1)
|
–
|
(123.9)
|
|
|
Proceeds from stock option
exercises, net of tax payments from stock compensation
plan transactions
|
0.9
|
(5.7)
|
16.6
|
(12.2)
|
|
|
Excess tax benefits from
employee stock compensation plan
transactions
|
0.1
|
1.5
|
4.8
|
5.4
|
|
|
Principal payments on capital
leases
|
(2.0)
|
(1.7)
|
(3.8)
|
(3.3)
|
|
|
Net cash provided by (used for)
financing activities
|
572.5
|
(92.1)
|
589.1
|
(152.7)
|
|
|
|
|
|
|
|
|
Effect of translation on
cash
|
3.7
|
(12.2)
|
13.7
|
(23.0)
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and
cash equivalents
|
593.5
|
(190.5)
|
210.6
|
(432.5)
|
|
|
|
|
|
|
|
|
Cash and cash equivalents,
beginning of period
|
1,449.6
|
1,619.0
|
1,832.5
|
1,861.0
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$
2,043.1
|
$
1,428.5
|
$
2,043.1
|
$
1,428.5
|
|
|
|
|
|
|
|
|
|
Cameron
|
|
|
Orders and
Backlog
|
|
|
($ millions)
|
|
|
|
|
Orders
|
|
|
|
|
Three
Months
Ended June 30,
|
Six
Months
Ended June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
|
Drilling & Production
Systems(1)
|
$ 1,442.7
|
$ 782.6
|
$ 2,261.0
|
$ 1,316.5
|
|
|
Valves &
Measurement
|
526.5
|
339.1
|
953.9
|
740.2
|
|
|
Process & Compression
Systems(1)
|
418.1
|
267.4
|
694.8
|
543.3
|
|
|
Total
|
$
2,387.3
|
$
1,389.1
|
$
3,909.7
|
$
2,600.0
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
|
|
|
June
30,
2011
|
December
31,
2010
|
June
30,
2010
|
|
|
|
|
|
|
|
Drilling & Production
Systems(1)
|
$ 3,628.3
|
$ 3,195.9
|
$ 3,583.8
|
|
|
Valves &
Measurement
|
1,016.2
|
833.8
|
630.8
|
|
|
Process & Compression
Systems(1)
|
875.1
|
787.4
|
707.0
|
|
|
Total
|
$
5,519.6
|
$
4,817.1
|
$
4,921.6
|
|
|
|
|
|
|
|
|
(1) Prior period segment data
has been retrospectively revised to reflect the change in segments
during the third quarter of 2010.
|
|
|
|
Cameron
|
|
|
Reconciliation of GAAP to
Non-GAAP Financial Information
|
|
|
($ millions)
|
|
|
|
|
Three Months
Ended June 30, 2011
|
|
|
Drilling
&
Production
Systems
|
Valves
&
Measurement
|
Process
&
Compression
Systems
|
Corporate
|
Total
|
|
|
Income (loss) before
income taxes
|
$ 161.4
|
$ 75.5
|
$ 34.0
|
$ (83.5)
(1)
|
$ 187.4
|
|
|
Depreciation &
amortization
|
25.9
|
10.1
|
9.3
|
2.3
|
47.6
|
|
|
Interest, net
|
–
|
–
|
–
|
22.1
|
22.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
187.3
|
$
85.6
|
$
43.3
|
$
(59.1) (1)
|
$
257.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Corporate loss before income
taxes and EBITDA amounts include $20.1 million of other
costs.
|
|
|
|
Three Months
Ended June 30, 2010
|
|
|
Drilling
&
Production
Systems(2)
|
Valves
&
Measurement
|
Process
&
Compression
Systems(2)
|
Corporate
|
Total
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ 145.4
|
$ 45.3
|
$ 39.5
|
$ (57.9)
(3)
|
$ 172.3
|
|
|
Depreciation &
amortization
|
22.7
|
10.9
|
16.6
|
2.7
|
52.9
|
|
|
Interest, net
|
–
|
–
|
–
|
19.4
|
19.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
168.1
|
$
56.2
|
$
56.1
|
$
(35.8) (3)
|
$
244.6
|
|
|
|
|
|
|
|
|
|
|
(2) Prior period segment data
has been retrospectively revised to reflect the change in segments
during the third quarter of 2010.
|
|
|
|
|
(3) Corporate loss before income
taxes and EBITDA amounts include $18.4 million of other
costs.
|
|
|
|
Cameron
|
|
|
Reconciliation of GAAP to
Non-GAAP Financial Information
|
|
|
($ millions)
|
|
|
|
|
Six Months
Ended June 30, 2011
|
|
|
Drilling
&
Production
Systems
|
Valves
&
Measurement
|
Process
&
Compression
Systems
|
Corporate
|
Total
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ 277.6
|
$ 130.7
|
$ 64.5
|
$ (145.6)
(1)
|
$ 327.2
|
|
|
Depreciation &
amortization
|
50.2
|
20.1
|
17.6
|
4.5
|
92.4
|
|
|
Interest, net
|
–
|
–
|
–
|
42.2
|
42.2
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
327.8
|
$
150.8
|
$
82.1
|
$
(98.9) (1)
|
$
461.8
|
|
|
|
|
|
|
|
|
|
|
(1) Corporate loss before income
taxes and EBITDA amounts include $29.0 million of other
costs.
|
|
|
|
Six Months
Ended June 30, 2010
|
|
|
Drilling
&
Production
Systems(2)
|
Valves
& Measurement
|
Process
& Compression
Systems(2)
|
Corporate
|
Total
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ 302.0
|
$ 94.3
|
$ 54.9
|
$ (118.4)
(3)
|
$ 332.8
|
|
|
Depreciation &
amortization
|
45.1
|
21.1
|
29.4
|
5.4
|
101.0
|
|
|
Interest, net
|
–
|
–
|
–
|
36.4
|
36.4
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
347.1
|
$
115.4
|
$
84.3
|
$
(76.6) (3)
|
$
470.2
|
|
|
|
|
|
|
|
|
|
|
(2) Prior period segment data
has been retrospectively revised to reflect the change in segments
during the third quarter of 2010.
|
|
|
|
|
(3) Corporate loss before income
taxes and EBITDA amounts include $28.7 million of other
costs.
|
|
|
SOURCE Cameron