England and Wales | 001-37983 | 98-1283037 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
One St. Paul’s Churchyard London, United Kingdom | EC4M 8AP | |||
(Address of principal executive offices) | (Zip Code) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
Exhibit No. | Description |
99.1 | News Release issued by TechnipFMC dated July 26, 2017 |
By: /s/ Maryann T. Mannen | ||
Dated: July 26, 2017 | Name: Maryann T. Mannen | |
Title: Executive Vice President and Chief Financial Officer |
Exhibit No. | Description |
99.1 | News Release issued by TechnipFMC plc dated July 26, 2017 |
• | Company reported net income of $164.9 million and adjusted EBITDA of $501.3 million |
• | Diluted earnings per share were $0.35; excluding charges and credits of $0.10 per share, adjusted diluted earnings per share were $0.45 |
• | Inbound orders were $3.2 billion, including Subsea of $1.8 billion and Onshore/Offshore of $1.1 billion |
(In millions except per share amounts) | Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 (Pro Forma) | Change | ||
Revenue | $3,845.0 | $4,959.3 | (22.5%) | ||
Net income | 164.9 | 55.2 | 198.7% | ||
Diluted EPS | $0.35 | ||||
Adjusted EBITDA | $501.3 | $347.5 | 44.3% | ||
Adjusted EBITDA margin | 13.0% | 7.0% | +600 bps | ||
Net income, excluding charges and credits | 211.9 | ||||
Diluted EPS, excluding charges and credits | $0.45 | ||||
Inbound orders | 3,153.0 | ||||
Backlog | 15,182.9 |
1 All prior year quarter comparisons are to pro forma results for 2016 as if the merger had been completed on January 1, 2016 and fully consolidated the Yamal LNG joint venture for the full period. |
Subsea |
(In millions) | Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 (Pro Forma) | Change | |
Revenue | $1,730.3 | $2,401.8 | (28.0%) | |
Operating profit | 236.1 | 261.7 | (9.8%) | |
Adjusted EBITDA | 376.7 | 405.4 | (7.1%) | |
Adjusted EBITDA margin | 21.8% | 16.9% | +490 bps | |
Inbound orders | 1,773.0 | |||
Backlog | 6,186.8 |
• | Statoil Trestakk iEPCI™ |
• | ENI Jangkrik |
• | BP Quad 204 |
• | Total Moho Nord |
• | ENI Coral South FLNG in Mozambique |
• | ExxonMobil Liza in Guyana |
• | Woodside Riserless Light Well Intervention and subsea services contract in Australia |
• | Statoil Visund Nord in Norway |
Estimated Backlog Scheduling as of June 30, 2017 (In millions) | Subsea |
2017 (6 months) | $2,292 |
2018 | 2,056 |
2019 and beyond | 1,839 |
Total | $6,187 |
• | Backlog schedule does not include subsea services. |
• | For the ENI Coral South project, the scope of work attributed to the risers and subsea flowlines, as well the installation of the umbilical and subsea equipment, is fully consolidated in the financial results of our Subsea business. |
Onshore/Offshore |
(In millions) | Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 (Pro Forma) | Change | ||
Revenue | $1,812.9 | $2,261.4 | (19.8%) | ||
Operating profit | 204.5 | 62.5 | 227.2% | ||
Adjusted EBITDA | 187.7 | 101.8 | 84.4% | ||
Adjusted EBITDA margin | 10.4% | 4.5% | +590 bps | ||
Inbound orders | 1,103.7 | ||||
Backlog | 8,582.0 |
• | Yamal LNG |
• | Shell Prelude FLNG |
• | BP Juniper |
• | Statoil Aasta Hansteen Spar |
• | CP Chem Polyethylene |
• | ENI Coral South FLNG in Mozambique |
• | Novatek Arctic LNG 2 FEED |
Estimated Backlog Scheduling as of June 30, 2017 (In millions) | Onshore/Offshore | |
2017 (6 months) | $3,673 | |
2018 | 3,295 | |
2019 and beyond | 1,614 | |
Total | $8,582 |
• | Backlog does not capture all revenue potential in the coming years given reimbursable scope portions of existing contracts. |
• | The Company is not a majority holder of the Coral FLNG joint venture and therefore does not fully consolidate the financial results. Inbound orders and backlog for this portion of the Coral project only reflects work awarded directly to affiliates of TechnipFMC by the joint venture. |
Surface Technologies |
(In millions) | Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 (Pro Forma) | Change | ||
Revenue | $300.0 | $303.8 | (1.3%) | ||
Operating profit | (1.0) | (24.2 | ) | n/m | |
Adjusted EBITDA | 35.9 | 8.8 | 308.0% | ||
Adjusted EBITDA margin | 12.0% | 2.9% | +910 bps | ||
Order intake | 276.3 | ||||
Backlog | 414.1 |
• |
• | Onshore/Offshore EBITDA margin2 of at least 8.0% (excluding charges and credits), versus prior guidance of at least 6.5%. The increase incorporates the strong results of the first half relative to guidance. |
• | Other updates include net interest expense, tax rate, and merger integration and restructuring costs. |
Subsea |
Revenue at least $6.1 billion |
EBITDA margin2 at least 17% (excluding amortization related impact of purchase price accounting, and other charges and credits) |
Onshore/Offshore |
Revenue at least $7.3 billion |
EBITDA margin2 at least 8% (excluding amortization related impact of purchase price accounting, and other charges and credits)* |
Surface Technologies |
Revenue at least $1.4 billion |
EBITDA margin2 at least 13% (excluding amortization related impact of purchase price accounting, and other charges and credits) |
TechnipFMC | ||||
Corporate Expense $50-$55 million per quarter (excluding the impact foreign currency fluctuations) | ||||
Net Interest Expense $20-$22 million per quarter* | ||||
Tax Rate 28% - 32%* | ||||
Capital Expenditures approximately $300 million | ||||
Merger Integration and Restructuring Costs $125 million Q3-Q4 (total)* | ||||
Cost Synergies target remains $400 million annual savings ($200 million exit run-rate 12/31/17, $400 million exit run-rate 12/31/18) | ||||
*Items updated July 26, 2017 |
2 Our guidance measure, adjusted EBITDA margin, is a non-GAAP measure. We are unable to provide a reconciliation to a comparable GAAP measure on a forward-looking basis without unreasonable effort because of the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results. |
• | unanticipated changes relating to competitive factors in our industry; |
• | demand for our products and services, which is affected by changes in the price of, and demand for, crude oil and natural gas in domestic and international markets; |
• | our ability to develop and implement new technologies and services, as well as our ability to protect and maintain critical intellectual property assets; |
• | potential liabilities arising out of the installation or use of our products; |
• | cost overruns related to our fixed price contracts or asset construction projects that may affect revenue; |
• | disruptions in the timely delivery of our backlog and its effect on our future sales, profitability, and our relationships with our customers; |
• | risks related to reliance on subcontractors, suppliers and joint venture partners in the performance of our contracts; |
• | ability to hire and retain key personnel; |
• | piracy risks for our maritime employees and assets; |
• | the cumulative loss of major contracts or alliances; |
• | U.S. and international laws and regulations, including environmental regulations, that may increase our costs, limit the demand for our products and services or restrict our operations; |
• | disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; |
• | risks associated with The Depository Trust Company and Euroclear for clearance services for shares traded on the NYSE and Euronext Paris, respectively; |
• | results of the United Kingdom’s referendum on withdrawal from the European Union; |
• | risks associated with being an English public limited company, including the need for court approval of “distributable profits” and stockholder approval of certain capital structure decisions; |
• | ability to pay dividends or repurchase shares in accordance with our announced capital allocation plan; |
• | compliance with covenants under our debt instruments and conditions in the credit markets; |
• | downgrade in the ratings of our debt could restrict our ability to access the debt capital markets; |
• | the outcome of uninsured claims and litigation against us; |
• | the risks of currency exchange rate fluctuations associated with our international operations; |
• | risks that the legacy businesses of FMC Technologies, Inc. and Technip S.A. will not be integrated successfully or that the combined company will not realize estimated cost savings, value of certain tax assets, synergies and growth or that such benefits may take longer to realize than expected; |
• | unanticipated merger-related costs; |
• | failure of our information technology infrastructure or any significant breach of security; |
• | risks associated with tax liabilities, or changes in U.S. federal or international tax laws or interpretations to which they are subject; and |
• | such other risk factors set forth in our filings with the United States Securities and Exchange Commission and in our filings with the Autorité des marchés financiers or the U.K. Financial Conduct Authority. |
Investor relations | Media relations |
Matt Seinsheimer Vice President Investor Relations Tel: +1 281 260 3665 Email: Matt Seinsheimer | Christophe Belorgeot Vice President Corporate Communications Tel: +33 1 47 78 39 92 Email: Christophe Belorgeot |
James Davis Senior Manager Investor Relations Tel: +1 281 260 3665 Email: James Davis | Delphine Nayral Manager Public Relations Tel: +33 1 47 78 34 83 Email: Delphine Nayral |
Lisa Adams Senior Manager Digital Communications Tel: +1 281 405 4659 Email: Lisa Adams |
• | On January 16, 2017, TechnipFMC was created by the business combination of Technip S.A. (Technip) and FMC Technologies, Inc. (FMC Technologies). |
• | In December of 2016, Technip increased its ownership in the Yamal LNG Joint Venture and became the controlling shareholder. Under US GAAP, this resulted in full consolidation of the Joint Venture on the date of the transaction. |
1. | Include Technip for the full period; |
2. | Include the results of FMC Technologies for the period January 17 to June 30, 2017; revenues of $112.9 million during the period from January 1 to January 16, 2017 were excluded, of which approximately 70 percent came from the Subsea segment; and |
3. | Fully consolidate the Yamal LNG Joint Venture for the full period, within the Onshore/Offshore segment. |
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | $ | 3,845.0 | $ | 2,370.5 | $ | 7,233.0 | $ | 4,776.2 | |||||||
Costs and expenses | 3,490.1 | 2,176.4 | 6,832.3 | 4,385.7 | |||||||||||
354.9 | 194.1 | 400.7 | 390.5 | ||||||||||||
Other income (expense), net | (37.6 | ) | (77.2 | ) | 35.3 | (93.8 | ) | ||||||||
Income before net interest expense and income taxes | 317.3 | 116.9 | 436.0 | 296.7 | |||||||||||
Net interest expense | (72.1 | ) | (7.7 | ) | (154.2 | ) | (21.0 | ) | |||||||
Income before income taxes | 245.2 | 109.2 | 281.8 | 275.7 | |||||||||||
Provision for income taxes | 86.2 | 5.4 | 138.0 | 51.3 | |||||||||||
Net income | 159.0 | 103.8 | 143.8 | 224.4 | |||||||||||
Net (income) loss attributable to noncontrolling interests | 5.9 | 0.2 | 2.4 | 0.3 | |||||||||||
Net income attributable to TechnipFMC plc | $ | 164.9 | $ | 104.0 | $ | 146.2 | $ | 224.7 | |||||||
Earnings per share attributable to TechnipFMC plc: | |||||||||||||||
Basic | $ | 0.35 | $ | 0.87 | $ | 0.31 | $ | 1.89 | |||||||
Diluted | $ | 0.35 | $ | 0.83 | $ | 0.31 | $ | 1.81 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 466.7 | 119.5 | 466.7 | 118.9 | |||||||||||
Diluted | 468.4 | 125.2 | 468.2 | 124.5 | |||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | |||||||||||||||
Subsea | $ | 1,730.3 | $ | 1,547.2 | $ | 3,107.0 | $ | 3,064.4 | |||||||
Onshore/Offshore | 1,812.9 | 823.3 | 3,576.9 | 1,711.8 | |||||||||||
Surface Technologies | 300.0 | — | 548.4 | — | |||||||||||
Other revenue and intercompany eliminations | 1.8 | — | 0.7 | — | |||||||||||
$ | 3,845.0 | $ | 2,370.5 | $ | 7,233.0 | $ | 4,776.2 | ||||||||
Income before income taxes | |||||||||||||||
Segment operating profit (loss) | |||||||||||||||
Subsea | $ | 236.1 | $ | 191.5 | $ | 290.3 | $ | 387.9 | |||||||
Onshore/Offshore | 204.5 | 30.5 | 347.3 | 68.9 | |||||||||||
Surface Technologies | (1.0 | ) | — | (19.6 | ) | — | |||||||||
Total segment operating profit | 439.6 | 222.0 | 618.0 | 456.8 | |||||||||||
Corporate items | |||||||||||||||
Corporate expense, net (1) | (122.3 | ) | (105.1 | ) | (182.0 | ) | (160.1 | ) | |||||||
Interest expense | (72.1 | ) | (7.7 | ) | (154.2 | ) | (21.0 | ) | |||||||
Total corporate items | (194.4 | ) | (112.8 | ) | (336.2 | ) | (181.1 | ) | |||||||
Net income before income taxes (2) | $ | 245.2 | $ | 109.2 | $ | 281.8 | $ | 275.7 | |||||||
(1) Corporate expense, net primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses. (2) Includes amounts attributable to noncontrolling interests. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Inbound Orders (1) | |||||||||||||||
Subsea | $ | 1,773.0 | $ | 840.1 | $ | 2,439.0 | $ | 1,330.5 | |||||||
Onshore/Offshore | 1,103.7 | 811.3 | 1,785.7 | 1,342.0 | |||||||||||
Surface Technologies | 276.3 | — | 517.8 | — | |||||||||||
Total inbound orders | $ | 3,153.0 | $ | 1,651.4 | $ | 4,742.5 | $ | 2,672.5 |
June 30 | |||||||
2017 | 2016 | ||||||
Order Backlog (2) | |||||||
Subsea | $ | 6,186.8 | $ | 6,547.8 | |||
Onshore/Offshore | 8,582.0 | 8,528.2 | |||||
Surface Technologies | 414.1 | — | |||||
Total order backlog | $ | 15,182.9 | $ | 15,076.0 | |||
(1) Inbound orders represent the estimated sales value of confirmed customer orders received during the reporting period. | |||||||
(2) Order backlog is calculated as the estimated sales value of unfilled, confirmed customer orders at the reporting date. |
(unaudited) | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 7,179.1 | $ | 6,269.3 | |||
Trade receivables, net | 2,159.3 | 2,024.5 | |||||
Costs in excess of billings | 1,168.3 | 485.8 | |||||
Inventories, net | 899.1 | 334.7 | |||||
Other current assets | 2,524.9 | 1,822.9 | |||||
Total current assets | 13,930.7 | 10,937.2 | |||||
Property, plant and equipment, net | 3,867.0 | 2,620.1 | |||||
Goodwill | 9,072.3 | 3,718.3 | |||||
Intangible assets, net | 1,444.4 | 173.7 | |||||
Other assets | 1,210.1 | 1,240.4 | |||||
Total assets | $ | 29,524.5 | $ | 18,689.7 | |||
Short-term debt and current portion of long-term debt | $ | 471.2 | $ | 683.6 | |||
Accounts payable, trade | 4,092.3 | 3,837.7 | |||||
Advance payments | 129.6 | 411.1 | |||||
Billings in excess of costs | 3,751.9 | 3,323.0 | |||||
Other current liabilities | 3,053.4 | 2,633.5 | |||||
Total current liabilities | 11,498.4 | 10,888.9 | |||||
Long-term debt, less current portion | 3,301.3 | 1,869.3 | |||||
Other liabilities | 1,175.5 | 819.6 | |||||
TechnipFMC plc stockholders’ equity | 13,551.2 | 5,123.6 | |||||
Noncontrolling interests | (1.9 | ) | (11.7 | ) | |||
Total liabilities and equity | $ | 29,524.5 | $ | 18,689.7 |
(unaudited) | |||||||
Six Months Ended | |||||||
June 30 | |||||||
2017 | 2016 | ||||||
Cash provided (required) by operating activities: | |||||||
Net income | $ | 143.8 | $ | 224.4 | |||
Depreciation and amortization | 310.7 | 147.7 | |||||
Trade accounts receivable, net and costs in excess of billings | 715.1 | (398.9 | ) | ||||
Inventories, net | 190.2 | 38.9 | |||||
Accounts payable, trade | (245.3 | ) | 64.2 | ||||
Advance payments and billings in excess of costs | (376.2 | ) | 194.7 | ||||
Other | (444.0 | ) | 155.2 | ||||
Net cash provided by operating activities | 294.3 | 426.2 | |||||
Cash provided (required) by investing activities: | |||||||
Capital expenditures | (107.5 | ) | (68.9 | ) | |||
Cash acquired in merger of Technip and FMC Technologies | 1,479.2 | — | |||||
Other | 15.1 | (79.3 | ) | ||||
Net cash provided (required) by investing activities | 1,386.8 | (148.2 | ) | ||||
Cash provided (required) by financing activities: | |||||||
Net increase (decrease) in debt | (663.9 | ) | (291.5 | ) | |||
Dividends paid | — | (112.3 | ) | ||||
Other | (121.3 | ) | 0.8 | ||||
Net cash required by financing activities | (785.2 | ) | (403.0 | ) | |||
Effect of changes in foreign exchange rates on cash and cash equivalents | 13.9 | 79.4 | |||||
Increase (decrease) in cash and cash equivalents | 909.8 | (45.6 | ) | ||||
Cash and cash equivalents, beginning of period | 6,269.3 | 3,178.0 | |||||
Cash and cash equivalents, end of period | $ | 7,179.1 | $ | 3,132.4 |
• | On January 16, 2017, TechnipFMC was created by the business combination of Technip S.A. (Technip) and FMC Technologies, Inc. (FMC Technologies). |
• | In December of 2016, Technip increased its ownership in the Yamal LNG joint venture and became the controlling shareholder. Under US GAAP, this would have resulted in full consolidation of the joint venture on the date of the transaction. |
1. | Include the results of Technip for the full period; |
2. | Include the results of FMC Technologies for the period January 17 to June 30, 2017; revenues of $112.9 million during the period from January 1 to January 16, 2017 were excluded, of which approximately 70 percent from Subsea and the remainder from Surface Technologies; and |
3. | Fully consolidate the Yamal LNG Joint Venture for the full period, within the Onshore/Offshore segment. |
1. | Include the results of both Technip and FMC Technologies for the full period; |
2. | Combine FMC Technologies’ former Surface Technologies and Energy Infrastructure segments to form the pro forma Surface Technologies segment; |
3. | Purchase price accounting adjustments applied on an equal basis to results for the three and six months ended June 30, 2017 to provide comparability; and |
4. | Fully consolidate the Yamal LNG joint venture for the full period, within the Onshore/Offshore segment. |
Three Months Ended | |||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||
Net income attributable to TechnipFMC plc | Net (income) loss attributable to noncontrolling interests | Provision for income taxes | Net interest expense | Income before net interest expense and income taxes (Operating profit) | Depreciation and amortization | Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) | |||||||||||||||||||||
TechnipFMC plc, as reported | $ | 164.9 | $ | 5.9 | $ | 86.2 | $ | (72.1 | ) | $ | 317.3 | $ | 159.5 | $ | 476.8 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 0.3 | — | 0.1 | — | 0.4 | — | 0.4 | ||||||||||||||||||||
Restructuring and other severance charges | (7.9 | ) | — | (4.8 | ) | — | (12.7 | ) | — | (12.7 | ) | ||||||||||||||||
Business combination transaction and integration costs | 15.2 | — | 8.1 | — | 23.3 | — | 23.3 | ||||||||||||||||||||
Change in accounting estimate | 16.0 | — | 5.9 | — | 21.9 | — | 21.9 | ||||||||||||||||||||
Purchase price accounting adjustments | 23.4 | 8.6 | 32.0 | (40.4 | ) | (8.4 | ) | ||||||||||||||||||||
Adjusted financial measures | $ | 211.9 | $ | 5.9 | $ | 104.1 | $ | (72.1 | ) | $ | 382.2 | $ | 119.1 | $ | 501.3 |
Pro Forma Three Months Ended | |||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||
(including legacy FMC Technologies and PPA adjustments) | Net income attributable to TechnipFMC plc | Net (income) loss attributable to noncontrolling interests | Provision for income taxes | Net interest expense | Income before net interest expense and income taxes (Operating profit) | Depreciation and amortization | Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) | ||||||||||||||||||||
TechnipFMC plc, as reported | $ | 55.2 | $ | 0.3 | $ | 60.8 | $ | 13.0 | $ | 102.7 | $ | 161.5 | $ | 264.2 | |||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 25.7 | — | 12.5 | — | 38.2 | — | 38.2 | ||||||||||||||||||||
Restructuring and other severance charges | 25.0 | — | 11.8 | — | 36.8 | — | 36.8 | ||||||||||||||||||||
Business combination transaction and integration costs | 11.1 | — | 5.6 | — | 16.7 | — | 16.7 | ||||||||||||||||||||
Purchase price accounting adjustments | 23.4 | 8.6 | 32.0 | (40.4 | ) | (8.4 | ) | ||||||||||||||||||||
Adjusted financial measures | $ | 140.4 | $ | 0.3 | $ | 99.3 | $ | 13.0 | $ | 226.4 | $ | 121.1 | $ | 347.5 |
Six Months Ended | |||||||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||||||
Net income attributable to TechnipFMC plc | Net (income) loss attributable to noncontrolling interests | Provision for income taxes | Net interest expense | Income before net interest expense and income taxes (Operating profit) | Depreciation and amortization | Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) | |||||||||||||||||||||
TechnipFMC plc, as reported | $ | 146.2 | $ | 2.4 | $ | 138.0 | $ | (154.2 | ) | $ | 436.0 | $ | 310.7 | $ | 746.7 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 0.3 | — | 0.5 | — | 0.8 | — | 0.8 | ||||||||||||||||||||
Restructuring and other severance charges | (1.1 | ) | — | (2.3 | ) | — | (3.4 | ) | — | (3.4 | ) | ||||||||||||||||
Business combination transaction and integration costs | 54.0 | — | 24.0 | — | 78.0 | — | 78.0 | ||||||||||||||||||||
Change in accounting estimate | 16.0 | — | 5.9 | — | 21.9 | — | 21.9 | ||||||||||||||||||||
Purchase price accounting adjustments | 117.9 | — | 43.5 | 0.3 | 161.1 | (83.3 | ) | 77.8 | |||||||||||||||||||
Adjusted financial measures | $ | 333.3 | $ | 2.4 | $ | 209.6 | $ | (153.9 | ) | $ | 694.4 | $ | 227.4 | $ | 921.8 |
Pro Forma Six Months Ended | |||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||
(including legacy FMC Technologies and PPA adjustments) | Net income attributable to TechnipFMC plc | Net (income) loss attributable to noncontrolling interests | Provision for income taxes | Net interest expense | Income before net interest expense and income taxes (Operating profit) | Depreciation and amortization | Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) | ||||||||||||||||||||
TechnipFMC plc, as reported | $ | 151.8 | $ | 0.4 | $ | 85.9 | $ | (0.6 | ) | $ | 237.9 | $ | 322.0 | $ | 559.9 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 79.5 | — | 12.5 | — | 92.0 | — | 92.0 | ||||||||||||||||||||
Restructuring and other severance charges | 47.2 | — | 11.8 | — | 59.0 | — | 59.0 | ||||||||||||||||||||
Business combination transaction and integration costs | 11.1 | — | 5.6 | — | 16.7 | — | 16.7 | ||||||||||||||||||||
Purchase price accounting adjustments | 117.9 | — | 43.5 | 0.3 | 161.1 | (83.3 | ) | 77.8 | |||||||||||||||||||
Adjusted financial measures | $ | 407.5 | $ | 0.4 | $ | 159.3 | $ | (0.3 | ) | $ | 566.7 | $ | 238.7 | $ | 805.4 |
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(after-tax) | |||||||||||||||
Net income attributable to TechnipFMC plc, as reported | $ | 165 | $ | 104 | $ | 146 | $ | 225 | |||||||
Charges and (credits): | |||||||||||||||
Impairment and other charges (1) | — | 22 | — | 35 | |||||||||||
Restructuring and other severance charges (2) | (8 | ) | 20 | (1 | ) | 32 | |||||||||
Business combination transaction and integration costs (3) | 15 | 11 | 54 | 11 | |||||||||||
Change in accounting estimate (4) | 16 | — | 16 | — | |||||||||||
Purchase price accounting adjustments (5) | 24 | — | 118 | — | |||||||||||
Adjusted net income attributable to TechnipFMC plc | $ | 212 | $ | 157 | $ | 333 | $ | 303 | |||||||
Diluted EPS attributable to TechnipFMC plc, as reported | $ | 0.35 | $ | 0.83 | $ | 0.31 | $ | 1.81 | |||||||
Adjusted diluted EPS attributable to TechnipFMC plc | $ | 0.45 | $ | 1.25 | $ | 0.71 | $ | 2.44 | |||||||
(1) Tax effect of nil and $11 million during the three months ended and nil and $17 million during the six months ended June 30, 2017 and 2016, respectively. (2) Tax effect of $(5) million and $10 million during the three months ended and $(2) million and $15 million during the six months ended June 30, 2017 and 2016, respectively. (3) Tax effect of $8 million and $6 million during the three months ended and $24 million and $6 million during the six months ended June 30, 2017 and 2016, respectively. (4) Tax effect of $6 million and nil during the three months ended and $6 million and nil during the six months ended June 30, 2017 and 2016, respectively. (5) Tax effect of $9 million and nil during the three months ended and $44 million and nil during the six months ended June 30, 2017 and 2016, respectively. |
Three Months Ended | |||||||||||||||||||
June 30, 2017 | |||||||||||||||||||
Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 1,730.3 | $ | 1,812.9 | $ | 300.0 | $ | 1.8 | $ | 3,845.0 | |||||||||
Operating profit, as reported (pre-tax) | $ | 236.1 | $ | 204.5 | $ | (1.0 | ) | $ | (122.3 | ) | $ | 317.3 | |||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 0.4 | — | — | — | 0.4 | ||||||||||||||
Restructuring and other severance charges | 5.6 | (27.7 | ) | 2.8 | 6.6 | (12.7 | ) | ||||||||||||
Business combination transaction and integration costs | 1.5 | — | 0.2 | 21.6 | 23.3 | ||||||||||||||
Change in accounting estimate | 11.8 | — | 10.1 | — | 21.9 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | (11.6 | ) | — | 8.2 | (5.0 | ) | (8.4 | ) | |||||||||||
Purchase price accounting adjustments - amortization related | 38.6 | — | 2.2 | (0.4 | ) | 40.4 | |||||||||||||
Subtotal | 46.3 | (27.7 | ) | 23.5 | 22.8 | 64.9 | |||||||||||||
Adjusted Operating profit | 282.4 | 176.8 | 22.5 | (99.5 | ) | 382.2 | |||||||||||||
Adjusted Depreciation and amortization | 94.3 | 10.9 | 13.4 | 0.5 | 119.1 | ||||||||||||||
Adjusted EBITDA | $ | 376.7 | $ | 187.7 | $ | 35.9 | $ | (99.0 | ) | $ | 501.3 | ||||||||
Operating profit margin, as reported | 13.6 | % | 11.3 | % | (0.3 | )% | 8.3 | % | |||||||||||
Adjusted Operating profit margin | 16.3 | % | 9.8 | % | 7.5 | % | 9.9 | % | |||||||||||
Adjusted EBITDA margin | 21.8 | % | 10.4 | % | 12.0 | % | 13.0 | % |
Pro Forma Three Months Ended | |||||||||||||||||||
June 30, 2016 | |||||||||||||||||||
(including legacy FMC Technologies and PPA adjustments) | Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | ||||||||||||||
Revenue, as pro forma | $ | 2,401.8 | $ | 2,261.4 | $ | 303.8 | $ | (7.7 | ) | $ | 4,959.3 | ||||||||
Operating profit (pre-tax), as pro forma | $ | 261.7 | $ | 62.5 | $ | (24.2 | ) | $ | (197.3 | ) | $ | 102.7 | |||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 2.8 | 18.6 | 1.6 | 15.2 | 38.2 | ||||||||||||||
Restructuring and other severance charges | 21.8 | 10.6 | 3.9 | 0.5 | 36.8 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 16.7 | 16.7 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | (11.6 | ) | — | 8.2 | (5.0 | ) | (8.4 | ) | |||||||||||
Purchase price accounting adjustments - amortization related | 38.6 | — | 2.2 | (0.4 | ) | 40.4 | |||||||||||||
Subtotal | 51.6 | 29.2 | 15.9 | 27.0 | 123.7 | ||||||||||||||
Adjusted Operating profit | 313.3 | 91.7 | (8.3 | ) | (170.3 | ) | 226.4 | ||||||||||||
Adjusted Depreciation and amortization | 92.1 | 10.1 | 17.1 | 1.8 | 121.1 | ||||||||||||||
Adjusted EBITDA | $ | 405.4 | $ | 101.8 | $ | 8.8 | $ | (168.5 | ) | $ | 347.5 | ||||||||
Operating profit margin, as pro forma | 10.9 | % | 2.8 | % | (8.0 | )% | 2.1 | % | |||||||||||
Adjusted Operating profit margin | 13.0 | % | 4.1 | % | (2.7 | )% | 4.6 | % | |||||||||||
Adjusted EBITDA margin | 16.9 | % | 4.5 | % | 2.9 | % | 7.0 | % |
Six Months Ended | |||||||||||||||||||
June 30, 2017 | |||||||||||||||||||
Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 3,107.0 | $ | 3,576.9 | $ | 548.4 | $ | 0.7 | $ | 7,233.0 | |||||||||
Operating profit, as reported (pre-tax) | $ | 290.3 | $ | 347.3 | $ | (19.6 | ) | $ | (182.0 | ) | $ | 436.0 | |||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 0.6 | — | 0.2 | — | 0.8 | ||||||||||||||
Restructuring and other severance charges | 12.1 | (28.0 | ) | 4.0 | 8.5 | (3.4 | ) | ||||||||||||
Business combination transaction and integration costs | 3.0 | — | 1.0 | 74.0 | 78.0 | ||||||||||||||
Change in accounting estimate | 11.8 | — | 10.1 | — | 21.9 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | 43.4 | — | 42.4 | (8.0 | ) | 77.8 | |||||||||||||
Purchase price accounting adjustments - amortization related | 72.6 | — | 11.2 | (0.5 | ) | 83.3 | |||||||||||||
Subtotal | 143.5 | (28.0 | ) | 68.9 | 74.0 | 258.4 | |||||||||||||
Adjusted Operating profit | 433.8 | 319.3 | 49.3 | (108.0 | ) | 694.4 | |||||||||||||
Adjusted Depreciation and amortization | 181.5 | 20.6 | 22.6 | 2.7 | 227.4 | ||||||||||||||
Adjusted EBITDA | $ | 615.3 | $ | 339.9 | $ | 71.9 | $ | (105.3 | ) | $ | 921.8 | ||||||||
Operating profit margin, as reported | 9.3 | % | 9.7 | % | (3.6 | )% | 6.0 | % | |||||||||||
Adjusted Operating profit margin | 14.0 | % | 8.9 | % | 9.0 | % | 9.6 | % | |||||||||||
Adjusted EBITDA margin | 19.8 | % | 9.5 | % | 13.1 | % | 12.7 | % |
Pro Forma Six Months Ended | |||||||||||||||||||
June 30, 2016 | |||||||||||||||||||
(including legacy FMC Technologies and PPA adjustments) | Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | ||||||||||||||
Revenue, as pro forma | $ | 4,779.8 | $ | 4,230.3 | $ | 653.4 | $ | (12.6 | ) | $ | 9,650.9 | ||||||||
Operating profit (pre-tax), as pro forma | $ | 478.6 | $ | 120.9 | $ | (99.3 | ) | $ | (262.3 | ) | $ | 237.9 | |||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 2.9 | 38.0 | 35.9 | 15.2 | 92.0 | ||||||||||||||
Restructuring and other severance charges | 22.1 | 26.6 | 9.8 | 0.5 | 59.0 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 16.7 | 16.7 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | 43.4 | — | 42.4 | (8.0 | ) | 77.8 | |||||||||||||
Purchase price accounting adjustments - amortization related | 72.6 | — | 11.2 | (0.5 | ) | 83.3 | |||||||||||||
Subtotal | 141.0 | 64.6 | 99.3 | 23.9 | 328.8 | ||||||||||||||
Adjusted Operating profit | 619.6 | 185.5 | — | (238.4 | ) | 566.7 | |||||||||||||
Adjusted Depreciation and amortization | 181.8 | 19.2 | 37.9 | (0.2 | ) | 238.7 | |||||||||||||
Adjusted EBITDA | $ | 801.4 | $ | 204.7 | $ | 37.9 | $ | (238.6 | ) | $ | 805.4 | ||||||||
Operating profit margin, as pro forma | 10.0 | % | 2.9 | % | (15.2 | )% | 2.5 | % | |||||||||||
Adjusted Operating profit margin | 13.0 | % | 4.4 | % | — | % | 5.9 | % | |||||||||||
Adjusted EBITDA margin | 16.8 | % | 4.8 | % | 5.8 | % | 8.3 | % |
June 30, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 7,179.1 | $ | 6,269.3 | |||
Short-term debt and current portion of long-term debt | (417.2 | ) | (683.6 | ) | |||
Long-term debt, less current portion | (3,301.3 | ) | (1,869.3 | ) | |||
Net cash | $ | 3,460.6 | $ | 3,716.4 |