HOUSTON, Feb. 2, 2012 /PRNewswire/ -- Cameron (NYSE: CAM) reported net income of
$99.9 million, or $0.40 per diluted share, for the quarter ended
December 31, 2011, compared with net
income in the prior year's fourth quarter of $164.6 million, or $0.66 per diluted share. The fourth quarter 2011
results include after-tax charges of $90.5
million, or $0.37 per share,
primarily related to the Deepwater Horizon matter. The fourth
quarter 2010 results included after-tax charges of $6.2 million, or $0.03 per share, primarily related to costs
associated with Deepwater Horizon and the continued integration of
the NATCO Group Inc. Excluding the above items, the Company's
earnings per diluted share were $0.77
for the fourth quarter of 2011, compared with $0.69 for the fourth quarter of 2010.
Revenues up 12 percent for quarter, 13 percent for year; both
represent new highs
Revenues for the fourth quarter of 2011 were a record
$2.03 billion, up more than 12
percent from the prior year, and revenues for the year were
$6.96 billion, up more than 13
percent from 2010's $6.13 billion,
also a new record. Excluding charges, earnings per diluted share
for 2011 were $2.67, compared to
$2.42 for 2010. Including charges,
earnings per diluted share were $2.09
for 2011 and $2.27 for 2010.
Cameron Chairman, President and Chief Executive Officer
Jack B. Moore commented that each
segment saw record revenues in 2011 reflecting the investments
Cameron has made in each of its
businesses over the last three years.
Record orders; backlog nearly $6.0
billion at year-end
Orders booked in the fourth quarter of 2011 totaled $1.91 billion, up from $1.71 billion a year ago. Year-over-year orders
were higher in all three of the Company's operating segments.
Full-year orders totaled $7.83
billion, up 35 percent from 2010, and represented the
highest order year in the Company's history.
Moore noted that record annual orders in Drilling and Surface
Systems drove the year-over-year improvement in Drilling &
Production Systems (DPS), while each of Valves & Measurement's
(V&M) businesses saw record annual orders. Moore said, "The
Process & Compression (PCS) segment saw record orders in the
fourth quarter, as well as on an annual level," and added, "We
continue to be pleased with the balance in our business lines and
the opportunities that our diverse product offerings provide."
Cash flow to improve, capital spending to increase in
2012
Cameron's cash flow from
operations totaled $329 million in
the fourth quarter. Moore said, "Cameron invested over $600 million in working capital in 2011 to help
support the record sales and orders we experienced in 2011, but we
expect this build to moderate significantly in 2012."
"We spent $388 million in capital
expenditures during the year," Moore said, "with an emphasis on
enhancing our aftermarket reach and capability and meeting demands
in unconventional drilling." Moore added that he expects
Cameron's capital spending to
increase to approximately $500
million during 2012, saying, "We see a mix of needs and
opportunities for our businesses during the year that could push
our capital expenditures to a new record. The majority will be
targeted at expanding our infrastructure in Brazil, growing our aftermarket support bases
for Drilling in the North Sea and Far East and adding to
Cameron's global fleet of
equipment and services in the unconventional shale markets."
2012 earnings expected to reach $3.20
to $3.30 per share
Moore said Cameron currently
expects its 2012 earnings to be in the range of $3.20 to $3.30 per diluted share, excluding
charges, and first quarter 2012 earnings, excluding charges, are
expected to be approximately $0.50 to
$0.55 per diluted share.
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 order
levels, working capital needs, revenues and earnings of the Company
(including first quarter and full year 2012 earnings per share
estimates), as well as expectations regarding facility expansion,
the Company's ability to control raw material, overhead and
operating costs, capital spending and cash flow, 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 deliveries,
particularly with respect to the large subsea and drilling systems
projects it has been awarded; the possibility of cancellation of
orders in backlog; 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,
including the ability of companies to obtain drilling permits
following the lifting of a temporary moratorium imposed by
the United States government on
drilling activities in deepwater areas of the Gulf of Mexico; 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.
|
Cameron
Unaudited Consolidated Condensed
Results of Operations
($ and shares in millions except
per share data)
|
|
|
Three
Months
Ended December
31,
|
Twelve
Months
Ended December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Revenues:
|
|
|
|
|
|
|
Drilling & Production
Systems
|
$ 1,216.0
|
$ 1,118.2
|
$ 4,061.5
|
$ 3,718.3
|
|
|
Valves &
Measurement
|
462.2
|
336.2
|
1,663.0
|
1,273.3
|
|
|
Process & Compression
Systems
|
352.5
|
353.9
|
1,234.5
|
1,143.2
|
|
|
Total revenues
|
2,030.7
|
1,808.3
|
6,959.0
|
6,134.8
|
|
|
|
|
|
|
|
|
Costs and Expenses:
|
|
|
|
|
|
|
Cost of sales (exclusive
of depreciation and amortization shown separately below)
|
1,430.5
|
1,264.9
|
4,838.4
|
4,212.4
|
|
|
Selling and administrative
expenses
|
277.7
|
250.4
|
1,001.5
|
862.3
|
|
|
Depreciation and
amortization
|
61.2
|
47.9
|
206.6
|
201.6
|
|
|
Interest, net
|
21.2
|
21.7
|
84.0
|
78.0
|
|
|
Other costs
|
114.2
|
8.1
|
177.4
|
47.2
|
|
|
Total costs and
expenses
|
1,904.8
|
1,593.0
|
6,307.9
|
5,401.5
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
125.9
|
215.3
|
651.1
|
733.3
|
|
|
Income tax provision
|
(26.0)
|
(50.7)
|
(129.2)
|
(170.4)
|
|
|
Net income
|
$
99.9
|
$
164.6
|
$
521.9
|
$
562.9
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
Basic
|
$
0.41
|
$
0.68
|
$
2.13
|
$
2.32
|
|
|
Diluted
|
$
0.40
|
$
0.66
|
$
2.09
|
$
2.27
|
|
|
|
|
|
|
|
|
Shares used in computing
earnings per common share:
|
|
|
|
|
|
|
Basic
|
245.3
|
243.1
|
245.0
|
243.1
|
|
|
Diluted
|
247.4
|
249.0
|
249.2
|
247.5
|
|
|
|
|
|
|
|
|
EBITDA:
|
|
|
|
|
|
|
Drilling & Production
Systems
|
$ 246.0
|
$ 227.0
|
$ 797.0
|
$ 759.7
|
|
|
Valves & Measurement
|
92.3
|
61.0
|
334.4
|
230.4
|
|
|
Process & Compression
Systems
|
38.0
|
45.9
|
153.9
|
186.8
|
|
|
Corporate and other(1)
|
(168.0)
|
(49.0)
|
(343.6)
|
(164.0)
|
|
|
Total
|
$
208.3
|
$
284.9
|
$
941.7
|
$
1,012.9
|
|
|
|
|
(1) Corporate EBITDA amounts
include $114.2 and $8.1 million of other costs for the three-month
periods ended December 31, 2011 and 2010 respectively; and $177.4
and $47.2 million for the years ended December 31, 2011 and 2010,
respectively.
|
|
|
|
|
|
|
|
Cameron
Consolidated Condensed Balance
Sheets
($ millions)
|
|
|
December 31,
2011
|
December 31,
2010
|
|
|
(unaudited)
|
|
|
|
Assets:
|
|
|
|
|
Cash and cash equivalents
|
$ 898.9
|
$ 1,832.5
|
|
|
Short-term investments
|
423.5
|
–
|
|
|
Receivables, net
|
1,757.3
|
1,056.1
|
|
|
Inventories, net
|
2,399.9
|
1,779.3
|
|
|
Other
|
349.0
|
265.0
|
|
|
Total current assets
|
5,828.6
|
4,932.9
|
|
|
|
|
|
|
Plant and equipment, net
|
1,500.1
|
1,247.8
|
|
|
Goodwill
|
1,615.3
|
1,475.8
|
|
|
Other assets
|
473.8
|
348.6
|
|
|
Total Assets
|
$
9,417.8
|
$
8,005.1
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity:
|
|
|
|
|
Current portion of long-term
debt
|
$ 10.6
|
$ 519.9
|
|
|
Accounts payable and accrued
liabilities
|
2,725.8
|
2,016.0
|
|
|
Accrued income taxes
|
–
|
38.0
|
|
|
Total current liabilities
|
2,736.4
|
2,573.9
|
|
|
|
|
|
|
Long-term debt
|
1,574.2
|
772.9
|
|
|
Deferred income taxes
|
184.5
|
95.7
|
|
|
Other long-term
liabilities
|
215.3
|
170.2
|
|
|
Total liabilities
|
4,710.4
|
3,612.7
|
|
|
|
|
|
|
Commitments and
contingencies
|
–
|
–
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock, par value
$.01 per share, 400,000,000 shares authorized, 263,111,472 shares
issued at December 31, 2011 and 2010…….
|
2.6
|
2.6
|
|
|
Preferred stock, par value
$.01 per share, 10,000,000 shares authorized, no shares issued or
outstanding
|
–
|
–
|
|
|
Capital in excess of par
value
|
2,072.4
|
2,259.3
|
|
|
Retained earnings
|
3,370.2
|
2,848.3
|
|
|
Accumulated other elements
of comprehensive income (loss)
|
(90.8)
|
(27.1)
|
|
|
Less: Treasury stock
at cost, 17,579,397 shares at December 31, 2011 and 19,197,642
shares at December 31, 2010
|
(647.0)
|
(690.7)
|
|
|
Total
stockholders' equity
|
4,707.4
|
4,392.4
|
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity
|
$
9,417.8
|
$
8,005.1
|
|
|
|
|
|
Cameron
Unaudited Consolidated Condensed
Statements Of Cash Flows
($ millions)
|
|
|
Three
Months
Ended December
31,
|
Twelve
Months
Ended December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
Net income
|
$ 99.9
|
$ 164.6
|
$ 521.9
|
$ 562.9
|
|
|
Adjustments to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation
|
45.2
|
34.8
|
160.2
|
142.6
|
|
|
Amortization
|
16.0
|
13.1
|
46.4
|
59.0
|
|
|
Non-cash stock
compensation expense
|
10.0
|
9.3
|
36.7
|
34.5
|
|
|
Deferred income taxes and
tax benefit of employee stock compensation plan
transactions
|
(34.6)
|
(13.7)
|
(22.0)
|
(19.1)
|
|
|
Changes in assets and
liabilities, net of translation, acquisitions and non-cash
items:
|
|
|
|
|
|
|
Receivables
|
(100.7)
|
(34.4)
|
(461.1)
|
(81.4)
|
|
|
Inventories
|
34.3
|
87.2
|
(397.1)
|
(3.8)
|
|
|
Accounts payable and
accrued liabilities
|
177.7
|
107.1
|
202.4
|
(291.7)
|
|
|
Other assets and
liabilities, net
|
81.2
|
(13.2)
|
121.1
|
(108.8)
|
|
|
Net cash provided by
operating activities
|
329.0
|
354.8
|
208.5
|
294.2
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
Increase in short-term
investments, net
|
(422.8)
|
–
|
(422.8)
|
–
|
|
|
Capital
expenditures
|
(159.6)
|
(85.7)
|
(388.1)
|
(200.7)
|
|
|
Acquisitions, net of cash
acquired
|
(378.8)
|
–
|
(421.3)
|
(40.9)
|
|
|
Proceeds
from sale of plant and equipment
|
2.0
|
3.5
|
19.6
|
12.4
|
|
|
Net cash used for
investing activities
|
(959.2)
|
(82.2)
|
(1,212.6)
|
(229.2)
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
Short-term loan borrowings
(repayments), net
|
(4.0)
|
(1.8)
|
45.7
|
(8.4)
|
|
|
Issuance of senior
debt
|
–
|
–
|
747.8
|
–
|
|
|
Debt issuance costs
|
–
|
–
|
(4.7)
|
–
|
|
|
Redemption of convertible
debentures
|
–
|
–
|
(705.7)
|
–
|
|
|
Sale (purchase) of equity
call options, net
|
–
|
–
|
(12.2)
|
–
|
|
|
Purchase of treasury
stock
|
(2.4)
|
–
|
(2.4)
|
(124.0)
|
|
|
Proceeds
from stock option exercises, net of tax payments from stock
compensation plan transactions
|
1.5
|
45.9
|
21.5
|
36.3
|
|
|
Excess tax
benefits from employee stock compensation plan
transactions
|
3.7
|
10.1
|
9.0
|
16.4
|
|
|
Principal payments on
capital leases
|
(2.2)
|
(1.7)
|
(8.2)
|
(6.6)
|
|
|
Net cash provided by (used
for) financing activities
|
(3.4)
|
52.5
|
90.8
|
(86.3)
|
|
|
|
|
|
|
|
|
Effect of translation on
cash
|
(4.0)
|
(4.4)
|
(20.3)
|
(7.2)
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and
cash equivalents
|
(637.6)
|
320.7
|
(933.6)
|
(28.5)
|
|
|
Cash and cash equivalents,
beginning of period
|
1,536.5
|
1,511.8
|
1,832.5
|
1,861.0
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$
898.9
|
$
1,832.5
|
$
898.9
|
$
1,832.5
|
|
|
|
|
|
|
|
Cameron
Orders and
Backlog
($ millions)
Orders
|
|
|
Three
Months
Ended December
31,
|
Twelve
Months
Ended December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
|
Drilling & Production
Systems
|
$ 933.4
|
$ 932.6
|
$ 4,343.4
|
$ 2,967.2
|
|
|
Valves & Measurement
|
538.2
|
442.2
|
2,000.7
|
1,579.2
|
|
|
Process & Compression
Systems
|
443.2
|
335.8
|
1,483.5
|
1,244.1
|
|
|
Total
|
$
1,914.8
|
$
1,710.6
|
$
7,827.6
|
$
5,790.5
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
|
December
31,
2011
|
December
31,
2010
|
|
|
|
|
|
|
Drilling & Production
Systems
|
$ 3,811.1
|
$ 3,195.9
|
|
|
Valves & Measurement
|
1,144.9
|
833.8
|
|
|
Process & Compression
Systems
|
1,013.1
|
787.4
|
|
|
Total
|
$
5,969.1
|
$
4,817.1
|
|
|
|
|
|
Cameron
Reconciliation of GAAP to
Non-GAAP Financial Information
($ millions)
|
|
|
Three Months
Ended December 31, 2011
|
|
|
Drilling
&
Production
Systems
|
Valves
&
Measurement
|
Process
&
Compression
Systems
|
Corporate
|
Total
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ 211.3
|
$ 81.9
|
$ 27.4
|
$ (194.7)
|
$ 125.9
|
|
|
Depreciation &
amortization
|
34.7
|
10.4
|
10.6
|
5.5
|
61.2
|
|
|
Interest, net
|
–
|
–
|
–
|
21.2
|
21.2
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
246.0
|
$
92.3
|
$
38.0
|
$
(168.0)
|
$
208.3
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, 2010
|
|
|
Drilling
&
Production
Systems
|
Valves
&
Measurement
|
Process
&
Compression
Systems
|
Corporate
|
Total
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ 202.9
|
$ 50.6
|
$ 35.5
|
$ (73.7)
|
$ 215.3
|
|
|
Depreciation &
amortization
|
24.1
|
10.4
|
10.4
|
3.0
|
47.9
|
|
|
Interest, net
|
–
|
–
|
–
|
21.7
|
21.7
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
227.0
|
$
61.0
|
$
45.9
|
$
(49.0)
|
$
284.9
|
|
|
|
|
|
|
|
|
Cameron
Reconciliation of GAAP to
Non-GAAP Financial Information
($ millions)
|
|
|
Twelve
Months Ended December 31, 2011
|
|
|
Drilling
&
Production
Systems
|
Valves
&
Measurement
|
Process
&
Compression
Systems
|
Corporate
|
Total
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ 685.6
|
$ 294.1
|
$ 116.0
|
$ (444.6)
|
$ 651.1
|
|
|
Depreciation &
amortization
|
111.4
|
40.3
|
37.9
|
17.0
|
206.6
|
|
|
Interest, net
|
–
|
–
|
–
|
84.0
|
84.0
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
797.0
|
$
334.4
|
$
153.9
|
$
(343.6)
|
$
941.7
|
|
|
|
|
|
|
|
|
Twelve
Months Ended December 31, 2010
|
|
|
Drilling
&
Production
Systems
|
Valves
&
Measurement
|
Process
&
Compression
Systems
|
Corporate
|
Total
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ 666.7
|
$ 188.0
|
$ 131.9
|
$ (253.3)
|
$ 733.3
|
|
|
Depreciation &
amortization
|
93.0
|
42.4
|
54.9
|
11.3
|
201.6
|
|
|
Interest, net
|
–
|
–
|
–
|
78.0
|
78.0
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
759.7
|
$
230.4
|
$
186.8
|
$
(164.0)
|
$
1,012.9
|
|
|
|
|
|
|
|
|
Cameron
Reconciliation of GAAP to
Non-GAAP Financial Information
($ millions, except per share
amounts)
|
|
|
Three Months
Ended December 31, 2011
|
|
|
After
Tax(1)
|
Diluted
EPS(2)
|
|
|
|
|
|
|
Net income, as reported
|
$ 99.9
|
$ 0.40
|
|
|
Adjustments:
|
|
|
|
|
Costs associated with the
Deepwater Horizon matter
|
85.4
|
0.35
|
|
|
Mark-to-market impact on
currency derivatives(3)
|
2.3
|
0.01
|
|
|
Severance, acquisition and
other restructuring costs
|
2.8
|
0.01
|
|
|
Net
income excluding charges
|
$
190.4
|
$
0.77
|
|
|
|
|
(1) Individual adjustments
assume a 20.7% effective tax rate
(2) Based on 247.4 million
diluted shares
(3) These derivatives have not
been designated as accounting hedges
|
|
|
|
|
|
Three Months
Ended December 31, 2010
|
|
|
After
Tax(1)
|
Diluted
EPS(2)
|
|
|
|
|
|
|
Net income, as reported
|
$ 164.6
|
$ 0.66
|
|
|
Adjustments:
|
|
|
|
|
Costs associated with the
Deepwater Horizon matter
|
4.4
|
0.02
|
|
|
Severance, acquisition and
other restructuring costs
|
1.8
|
0.01
|
|
|
Net
income excluding charges
|
$
170.8
|
$
0.69
|
|
|
|
|
(1) Individual adjustments
assume a 23.5% effective tax rate
(2) Based on 249.0 million
diluted shares
|
|
|
|
|
|
Year Ended
December 31, 2011
|
|
|
After
Tax(1)
|
Diluted EPS(2)
|
|
|
|
|
|
|
Net income, as reported
|
$ 521.9
|
$ 2.09
|
|
|
Adjustments:
|
|
|
|
|
Costs associated with the
Deepwater Horizon matter
|
114.8
|
0.47
|
|
|
Mark-to-market impact on
currency derivatives(3)
|
7.5
|
0.03
|
|
|
Costs associated with retiring
the 2.5% convertible debentures
|
11.6
|
0.05
|
|
|
Severance, acquisition and
other restructuring costs
|
8.3
|
0.03
|
|
|
Net
income excluding charges
|
$
664.1
|
$
2.67
|
|
|
|
|
(1) Individual adjustments
assume a 19.8% effective tax rate
(2) Based on 249.2 million
diluted shares
(3) These derivatives have not
been designated as accounting hedges
|
|
|
|
|
|
Year Ended
December 31, 2010
|
|
|
After
Tax(1)
|
Diluted EPS(2)
|
|
|
|
|
|
|
Net income, as reported
|
$ 562.9
|
$ 2.27
|
|
|
Adjustments:
|
|
|
|
|
NATCO acquisition
integration costs
|
16.9
|
0.07
|
|
|
Costs associated with the
Deepwater Horizon matter
|
9.6
|
0.04
|
|
|
Severance, acquisition and
other restructuring costs
|
9.8
|
0.04
|
|
|
Net
income excluding charges
|
$
599.2
|
$
2.42
|
|
|
|
|
(1) Individual adjustments
assume a 23.2% effective tax rate
(2) Based on 247.5 million
diluted shares
|
|
|
|
|
SOURCE Cameron