Cooper Cameron Third Quarter Earnings Total $0.63 Per Share -
Earnings per share total $0.63; $0.42 before the cumulative effect
of an accounting change, vs. $0.37 a year ago - Orders ahead of
year-ago pace, backlog nearly $1 billion HOUSTON, Oct. 28
/PRNewswire-FirstCall/ -- Cooper Cameron Corporation reported net
income of $36.2 million, or $0.63 per share, for the quarter ended
September 30, 2003. This compares with net income of $20.7 million,
or $0.37 per share, for the third quarter of 2002. Included in the
current quarter was income of $12.2 million, or $0.21 per share,
related to the cumulative effect of adopting a newly issued
accounting standard. In addition, the quarter's selling and
administrative expense included after-tax charges totaling $4.3
million, or $0.08 per share, related to the Company's efforts to
acquire a certain oil service business and, to a lesser extent, for
severance costs in the Cameron division. Total revenues for the
quarter were $429.1 million, up 12 percent from 2002's $383.8
million, and income before the adoption of the accounting change
was $24.0 million, up nearly 16 percent from 2002's $20.7 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010706/CAMLOGO )
Accounting standard adopted, charges taken for acquisition efforts
and severance; consolidated revenues increase, both year-over-year
and sequentially Cooper Cameron Chairman, President and Chief
Executive Officer Sheldon R. Erikson said that the Company was
required to adopt Financial Accounting Standards No. 150 (FAS 150),
which came into effect July 1, 2003. Under FAS 150, the estimated
fair value of the Company's stock purchase agreements was recorded
as a cumulative effect of an accounting change upon adoption of the
Standard. In August, the Company closed out these agreements, which
had a market value of $50.2 million, for a cash payment of
approximately $38.0 million, resulting in a net $12.2 million gain.
The associated shares were placed into treasury stock. Cooper
Cameron currently has no agreements outstanding that are subject to
FAS 150. Erikson also noted that selling and administrative
expenses for the quarter included $4.3 million of after-tax
charges, or $0.08 per share, related to costs incurred in
connection with the Company's efforts to acquire a certain oil
service business, as well as employee severance costs associated
with a voluntary reduction in force program in Cameron. Erikson
further noted that Cameron expects to incur approximately $3.0
million, after tax, of additional costs associated with this
reduction in force program in the fourth quarter. He noted that the
annual savings associated with this program are expected to be
approximately $8.0 million. Erikson said Cooper Cameron's
consolidated revenues for the quarter were higher than year-ago
levels and on a sequential basis, due primarily to increases in the
Cameron division's subsea business. He also noted that the
Company's quarterly consolidated income before taxes was higher,
both year- over-year and sequentially, primarily due to an increase
at Cameron. Cameron results reflect increase in subsea project
revenues Erikson noted that although each of Cameron's product
lines showed revenue increases from year-ago levels, subsea-related
revenues accounted for the majority of the increase in the
division's profits. "While subsea revenues are higher
sequentially," Erikson said, "we have not seen them increase at the
pace we had expected during the second half of 2003." Erikson also
noted that the timing of equipment deliveries on subsea projects
will continue to be a significant factor in the Company's
performance for the next few quarters. Cooper Cameron Valves (CCV)
revenues increase due to Nutron acquisition CCV's oilfield valve
quarterly revenues were up from the prior year due mainly to the
December 2002 acquisition of Nutron Industries, offsetting a
decline in the engineered products business. Sequentially, revenues
increased about five percent and margins improved across the
division's product lines. Erikson noted that CCV's margins, while
relatively stable year-to-date, may come under some pressure during
the balance of the year as a result of continued weakness in the
pipeline ball valve market resulting from, among other factors,
fewer domestic projects and pricing deterioration. Cooper
Compression results reflect difficult market Cooper Compression's
quarterly revenues were flat sequentially, but previously
undertaken cost improvement programs positively impacted margins
for the quarter. Margins are expected to continue to show a
positive trend in the fourth quarter. Fourth quarter earnings to be
similar to third "We currently expect Cooper Cameron's fourth
quarter earnings to be approximately $0.45 to $0.50 per share,
which includes additional severance charges of approximately $0.05
per share," Erikson said. "This represents a reduction from our
earlier expectations, and primarily reflects manufacturing delays
caused by third-party suppliers of certain components for Cameron's
subsea equipment, as well as continued softness in the Gulf of
Mexico and North Sea markets." He noted that it is too early to
provide specific guidance for next year, and that the Company
expects to provide a forecast of 2004 results shortly after the
first of the year. Cash flows, balance sheet remain strong Cooper
Cameron's total debt, net of cash and short-term investments, at
September 30, 2003 was $151.7 million, down from $168.8 million at
December 31, 2002. Erikson noted that during the quarter, the
Company spent approximately $38.0 million on share repurchase and
$13.6 million on capital expenditures. The Company's net
debt-to-total capitalization ratio at the quarter's end was
approximately 12.1 percent. Erikson said that Cooper Cameron's
focus on generating cash from operations has given the Company the
flexibility to pursue such opportunities as acquisitions and stock
repurchases. Annual orders ahead of year-ago pace, backlog near
record levels Orders received during the third quarter of 2003
totaled $421 million, up three percent sequentially, but down 30
percent from $601 million a year ago, which was the highest
quarterly orders total in the Company's history. Erikson noted that
the Company's total orders for the first nine months of the year,
at $1.34 billion, are ahead of 2002's pace. "We expect full-year
2003 orders to exceed revenues," Erikson said, "allowing us to once
again post an increase in total backlog for the year." At September
30, 2003, the Company's backlog was $980 million, down slightly
from a high of $989 million, reached as of the end of the second
quarter. Backlog is up 15 percent from the September 30, 2002 level
of $850 million. Cooper Cameron Corporation (NYSE:CAM) 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. Cooper Cameron is also a leading manufacturer of
centrifugal air compressors, integral and separable gas compressors
and turbochargers. Visit Cooper Cameron's home page on the World
Wide Web at http://www.coopercameron.com/ In addition to the
historical data contained herein, this document includes
forward-looking statements regarding future order levels, revenues
and earnings of the Company (including fourth quarter earnings per
share estimates), 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 that 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 projects it has been awarded;
changes in the price of (and demand for) oil and gas in both
domestic and international markets; political and social issues
affecting the countries in which the Company does business;
fluctuations in currency markets worldwide; variations in global
economic activity; and changes in the financial markets. In
particular, current and projected oil and gas prices historically
have 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 in reliance thereon. 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
securities laws and regulations. Cooper Cameron Corporation
Unaudited Consolidated Results Of Operations ($ and shares in
millions except per share data) Three months ended Nine months
ended September 30, September 30, 2003 2002 2003 2002 Revenues:
Cameron $267.7 $220.1 $738.3 $672.6 Cooper Cameron Valves 79.9 74.8
227.7 213.9 Cooper Compression 81.5 88.9 225.1 266.8 Total revenues
429.1 383.8 1,191.1 1,153.3 Costs and Expenses: Cost of sales
(exclusive of depreciation and amortization) 305.4 271.8 845.9
818.4 Depreciation and amortization 21.2 19.3 62.0 57.5 Selling and
administrative expenses 69.5 64.0 209.0 188.8 Interest income (1.5)
(2.3) (4.0) (6.2) Interest expense 2.1 1.9 6.3 6.3 Total costs and
expenses 396.7 354.7 1,119.2 1,064.8 Income before income taxes and
cumulative effect of accounting change 32.4 29.1 71.9 88.5 Income
tax provision (8.4) (8.4) (18.7) (25.7) Income before cumulative
effect of accounting change 24.0 20.7 53.2 62.8 Cumulative effect
of accounting change 12.2 --- 12.2 --- Net income $36.2 $20.7 $65.4
$62.8 Basic earnings per common share: Before cumulative effect of
accounting change $0.44 $0.38 $0.97 $1.16 Cumulative effect of
accounting change 0.23 --- 0.23 --- Net income $0.67 $0.38 $1.20
$1.16 Diluted earnings per common share: Before cumulative effect
of accounting change $0.42 $0.37 $0.95 $1.11 Cumulative effect of
accounting change 0.21 --- 0.20 --- Net income $0.63 $0.37 $1.15
$1.11 Cooper Cameron Corporation Unaudited Consolidated Results Of
Operations ($ and shares in millions except per share data) Three
months ended Nine months ended September 30, September 30, 2003
2002 2003 2002 Average common shares outstanding 54.4 54.3 54.6
54.2 Average shares utilized in diluted calculation 59.7 59.7 60.0
59.8 EBITDA: Cameron $39.2 $29.2 $101.8 $92.7 Cooper Cameron Valves
12.7 12.3 36.2 37.7 Cooper Compression 10.3 11.3 18.3 29.0 Other
(8.0) (4.8) (20.1) (13.3) Total $54.2 $48.0 $136.2 $146.1 Cooper
Cameron Corporation Consolidated Balance Sheets ($ millions, except
shares and per share data) (unaudited) Sept. 30, Dec. 31, 2003 2002
Current Assets: Cash and cash equivalents $237.5 $273.8 Short-term
investments 79.2 25.3 Receivables, net 311.3 304.8 Inventories, net
465.6 387.2 Other 38.0 26.8 Total current assets 1,131.6 1,017.9
Plant and equipment, net 463.1 475.9 Goodwill, net 308.2 301.9
Other assets 199.4 202.0 Total Assets $2,102.3 $1,997.7 Current
Liabilities: Current portion of long-term debt $261.9 $4.9 Accounts
payable and accrued liabilities 397.7 354.4 Accrued income taxes
17.5 15.5 Total current liabilities 677.1 374.8 Long-term debt
206.5 463.0 Postretirement benefits other than pensions 42.3 45.2
Deferred income taxes 45.6 45.6 Other long-term liabilities 26.9
27.8 Total liabilities 998.4 956.4 Stockholders' Equity: Common
stock, par value $.01 per share, 150,000,000 shares authorized,
54,933,658 shares issued (54,566,054 at December 31, 2002) 0.5 0.5
Capital in excess of par value 958.9 949.2 Retained earnings 173.6
108.2 Accumulated other elements of comprehensive income 17.9
(14.8) Less: Treasury stock at cost, 945,440 shares (54,954 shares
at December 31, 2002) (47.0) (1.8) Total stockholders' equity
1,103.9 1,041.3 Total Liabilities and Stockholders' Equity $2,102.3
$1,997.7 Cooper Cameron Corporation Unaudited Consolidated
Statements Of Cash Flows ($ millions) Three months ended Nine
months ended September 30, September 30, 2003 2002 2003 2002 Cash
flows from operating activities: Net income $36.2 $20.7 $65.4 $62.8
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation 16.6 16.6 50.2 50.0 Amortization
(primarily capitalized software) 4.6 2.7 11.8 7.5 Cumulative effect
of accounting change (12.2) --- (12.2) --- Deferred income taxes
and other 5.3 0.5 3.3 2.4 Changes in assets and liabilities, net of
translation, acquisitions and non-cash items: Receivables (32.0)
0.2 1.7 18.1 Inventories (31.6) 16.9 (64.4) 44.9 Accounts payable
and accrued liabilities 26.4 26.2 36.8 (1.5) Other assets and
liabilities, net (5.2) (4.3) (6.3) (11.7) Net cash provided by
operating activities 8.1 79.5 86.3 172.5 Cash flows from investing
activities: Capital expenditures (13.6) (23.6) (42.8) (64.3)
Acquisitions --- (14.7) --- (20.2) Sales of short-term investments
26.2 1.1 89.0 76.0 Purchases of short-term investments (80.8) (1.5)
(142.7) (20.8) Other 4.9 0.3 6.4 3.7 Net cash used for investing
activities (63.3) (38.4) (90.1) (25.6) Cash flows from financing
activities: Loan borrowings (repayments), net --- (0.8) (0.8) (5.7)
Purchase of treasury stock (38.0) --- (38.0) --- Activity under
stock option plans and other 0.6 (1.2) 1.1 1.4 Net cash used for
financing activities (37.4) (2.0) (37.7) (4.3) Effect of
translation on cash 1.4 1.9 5.2 11.4 Increase (decrease) in cash
and cash equivalents (91.2) 41.0 (36.3) 154.0 Cash and cash
equivalents, beginning of period 328.7 224.6 273.8 111.6 Cash and
cash equivalents, end of period $237.5 $265.6 $237.5 $265.6 Cooper
Cameron Corporation Orders and Backlog ($ millions) Orders Three
months ended Nine months ended September 30, September 30, 2003
2002 2003 2002 Cameron $255.5 $457.5 $848.8 $865.8 Cooper Cameron
Valves 73.9 58.8 232.8 190.3 Cooper Compression 91.8 84.5 262.3
251.1 Total $421.2 $600.8 $1,343.9 $1,307.2 Backlog Sept. 30, Dec.
31, Sept. 30, 2003 2002 2002 Cameron $807.1 $695.8 $718.5 Cooper
Cameron Valves 64.0 56.1 48.0 Cooper Compression 109.4 75.9 83.2
Total $980.5 $827.8 $849.7 Cooper Cameron Corporation
Reconciliation of GAAP to Non-GAAP Financial Information ($
millions) Three Months Ended September 30, 2003 Cooper Cameron
Cooper Cameron Valves Compression Corporate Total Income (loss)
before income taxes $26.6 $9.5 $5.5 $(9.2) $32.4 Depreciation &
amortization 12.6 3.2 4.8 0.6 21.2 Interest income --- --- ---
(1.5) (1.5) Interest expense --- --- --- 2.1 2.1 EBITDA $39.2 $12.7
$10.3 $(8.0) $54.2 Three Months Ended September 30, 2002 Cooper
Cameron Cooper Cameron Valves Compression Corporate Total Income
(loss) before income taxes $17.8 $10.3 $6.1 $(5.1) $29.1
Depreciation & amortization 11.4 2.0 5.2 0.7 19.3 Interest
income --- --- --- (2.3) (2.3) Interest expense --- --- --- 1.9 1.9
EBITDA $29.2 $12.3 $11.3 $(4.8) $48.0 Cooper Cameron Corporation
Reconciliation of GAAP to Non-GAAP Financial Information ($
millions) Nine Months Ended September 30, 2003 Cooper Cameron
Cooper Cameron Valves Compression Corporate Total Income (loss)
before income taxes $64.0 $26.5 $5.6 $(24.2) $71.9 Depreciation
& amortization 37.8 9.7 12.7 1.8 62.0 Interest income --- ---
--- (4.0) (4.0) Interest expense --- --- --- 6.3 6.3 EBITDA $101.8
$36.2 $18.3 $(20.1) $136.2 Nine Months Ended September 30, 2002
Cooper Cameron Cooper Cameron Valves Compression Corporate Total
Income (loss) before income taxes $59.0 $30.1 $14.8 $(15.4) $88.5
Depreciation & amortization 33.7 7.6 14.2 2.0 57.5 Interest
income --- --- --- (6.2) (6.2) Interest expense --- --- --- 6.3 6.3
EBITDA $92.7 $37.7 $29.0 $(13.3) $146.1
http://www.newscom.com/cgi-bin/prnh/20010706/CAMLOGO
http://photoarchive.ap.org/ 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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