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 October 25, 2017 |
By: /s/ Maryann T. Mannen | ||
Dated: October 25, 2017 | Name: Maryann T. Mannen | |
Title: Executive Vice President and Chief Financial Officer |
Exhibit No. | Description |
99.1 |
(In millions except per share amounts) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 (Pro Forma) | Change | ||
Revenue | $4,140.9 | $5,038.2 | (17.8%) | ||
Net income | 121.0 | 327.0 | (63.0%) | ||
Diluted EPS | $0.26 | ||||
Adjusted EBITDA | $536.2 | $699.3 | (23.3%) | ||
Adjusted EBITDA margin | 12.9 | % | 13.9 | % | (100 bps) |
Net income, excluding charges and credits | 183.6 | ||||
Diluted EPS, excluding charges and credits | $0.39 | ||||
Inbound orders | 2,461.9 | ||||
Backlog | 13,902.4 |
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 September 30, 2017 | Three Months Ended September 30, 2016 (Pro Forma) | Change | ||
Revenue | $1,478.2 | $2,346.6 | (37.0%) | ||
Operating profit | 102.8 | 357.7 | (71.3%) | ||
Adjusted EBITDA | 260.4 | 503.4 | (48.3%) | ||
Adjusted EBITDA margin | 17.6 | % | 21.5 | % | (390 bps) |
Inbound orders | 979.8 | ||||
Backlog | 5,948.9 |
• | Total Kaombo |
• | Shell Appomattox |
• | Shell Prelude FLNG |
• | Hurricane Lancaster iEPCI™ Project West of Shetland |
• | Statoil Peregrino Phase 2 Project in Brazil |
• | Husky Energy West White Rose Project in Canada |
Estimated Backlog Scheduling as of September 30, 2017 (In millions) | Subsea | |
2017 (3 months) | $1,334 | |
2018 | 2,572 | |
2019 and beyond | 2,043 | |
Total | $5,949 |
Onshore/Offshore |
(In millions) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 (Pro Forma) | Change | |
Revenue | $2,308.1 | $2,398.8 | (3.8%) | |
Operating profit | 206.4 | 118.6 | 74.0% | |
Adjusted EBITDA | 224.6 | 132.4 | 84.7% | |
Adjusted EBITDA margin | 10.6 | % | 5.5% | +510 bps |
Inbound orders | 1,153.0 | |||
Backlog | 7,559.3 |
• | Yamal LNG |
• | Shell Prelude FLNG |
• | ENOC Jebel Ali Refinery Upgrade |
Estimated Backlog Scheduling as of September 30, 2017 (In millions) | Onshore/Offshore |
2017 (3 months) | $1,693 |
2018 | 3,729 |
2019 and beyond | 2,137 |
Total | $7,559 |
• | Backlog does not capture all revenue potential in future periods given reimbursable scope portions of existing contracts. |
Surface Technologies |
(In millions) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 (Pro Forma) | Change | |
Revenue | $353.9 | $295.2 | 19.9% | |
Operating profit | 49.0 | (17.4) | n/m | |
Adjusted EBITDA | 71.2 | 14.8 | 381.1% | |
Adjusted EBITDA margin | 20.1 | % | 5.0% | +1,510 bps |
Inbound orders | 329.1 | |||
Backlog | 394.2 |
• | Onshore/Offshore revenue of at least $7.7 billion, versus prior guidance of at least $7.3 billion; EBITDA margin2 of at least 9.5% (excluding charges and credits), versus prior guidance of at least 8%. |
• | Surface Technologies revenue of at least $1.3 billion, versus prior guidance of at least $1.4 billion; EBITDA margin2 of at least 16.5% (excluding charges and credits), versus prior guidance of at least 13%. |
• | Other updates include net interest expense, tax rate, capital expenditures, and merger integration and restructuring costs. |
2017 Guidance *Items updated October 25, 2017 |
Subsea | Onshore/Offshore* | Surface Technologies* | ||
Revenue at least $6.1 billion | Revenue at least $7.7 billion | Revenue at least $1.3 billion | ||
EBITDA margin2 at least 17% (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin2 at least 9.5%* (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin2 at least 16.5%* (excluding amortization related impact of purchase price accounting, and other charges and credits) | ||
TechnipFMC | ||||
Corporate Expense $50-$55 million per quarter (excluding the impact of foreign currency fluctuations) | ||||
Net Interest Expense approximately $15 million in Q4* | ||||
Tax Rate 30%-32% in Q4* | ||||
Capital Expenditures approximately $250 million for the full year* | ||||
Merger Integration and Restructuring Costs approximately $75 million in Q4* | ||||
Cost Synergies $400 million annual savings ($200 million exit run-rate 12/31/17, $400 million exit run-rate 12/31/18) | ||||
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. |
2018 Segment Guidance |
Subsea | Onshore/Offshore | Surface Technologies | ||
Revenue in a range of $5.0-5.3 billion | Revenue in a range of $5.3-5.7 billion | Revenue in a range of $1.5-1.6 billion | ||
EBITDA margin2 at least 14% (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin2 at least 9.5% (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin2 at least 17.5% (excluding amortization related impact of purchase price accounting, and other charges and credits) |
• | 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 September 30, 2017; revenue 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 | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | $ | 4,140.9 | $ | 2,375.7 | $ | 11,373.9 | $ | 7,151.9 | |||||||
Costs and expenses | 3,872.3 | 2,120.2 | 10,704.6 | 6,505.9 | |||||||||||
268.6 | 255.5 | 669.3 | 646.0 | ||||||||||||
Other income (expense), net | 47.3 | 149.1 | 82.6 | 55.3 | |||||||||||
Income before net interest expense and income taxes | 315.9 | 404.6 | 751.9 | 701.3 | |||||||||||
Net interest expense | (86.3 | ) | (0.4 | ) | (240.5 | ) | (21.4 | ) | |||||||
Income before income taxes | 229.6 | 404.2 | 511.4 | 679.9 | |||||||||||
Provision for income taxes | 111.7 | 102.5 | 249.7 | 153.8 | |||||||||||
Net income | 117.9 | 301.7 | 261.7 | 526.1 | |||||||||||
Net loss attributable to noncontrolling interests | 3.1 | 0.7 | 5.5 | 1.0 | |||||||||||
Net income attributable to TechnipFMC plc | $ | 121.0 | $ | 302.4 | $ | 267.2 | $ | 527.1 | |||||||
Earnings per share attributable to TechnipFMC plc: | |||||||||||||||
Basic | $ | 0.26 | $ | 2.50 | $ | 0.57 | $ | 4.41 | |||||||
Diluted | $ | 0.26 | $ | 2.39 | $ | 0.57 | $ | 4.22 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 467.2 | 121.0 | 466.8 | 119.6 | |||||||||||
Diluted | 469.7 | 126.9 | 468.3 | 125.3 | |||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | |||||||||||||||
Subsea | $ | 1,478.2 | $ | 1,560.3 | $ | 4,585.2 | $ | 4,624.7 | |||||||
Onshore/Offshore | 2,308.1 | 815.4 | 5,885.0 | 2,527.2 | |||||||||||
Surface Technologies | 353.9 | — | 902.3 | — | |||||||||||
Other revenue and intercompany eliminations | 0.7 | — | 1.4 | — | |||||||||||
$ | 4,140.9 | $ | 2,375.7 | $ | 11,373.9 | $ | 7,151.9 | ||||||||
Income before income taxes | |||||||||||||||
Segment operating profit (loss) | |||||||||||||||
Subsea | $ | 102.8 | $ | 282.0 | $ | 393.1 | $ | 669.9 | |||||||
Onshore/Offshore | 206.4 | 70.9 | 553.7 | 139.8 | |||||||||||
Surface Technologies | 49.0 | — | 29.4 | — | |||||||||||
Total segment operating profit | 358.2 | 352.9 | 976.2 | 809.7 | |||||||||||
Corporate items | |||||||||||||||
Corporate expense, net (1) | (42.3 | ) | 51.7 | (224.3 | ) | (108.4 | ) | ||||||||
Interest expense | (86.3 | ) | (0.4 | ) | (240.5 | ) | (21.4 | ) | |||||||
Total corporate items | (128.6 | ) | 51.3 | (464.8 | ) | (129.8 | ) | ||||||||
Net income before income taxes (2) | $ | 229.6 | $ | 404.2 | $ | 511.4 | $ | 679.9 | |||||||
(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 | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Inbound Orders (1) | |||||||||||||||
Subsea | $ | 979.8 | $ | 550.8 | $ | 3,418.8 | $ | 1,881.3 | |||||||
Onshore/Offshore | 1,153.0 | 1,155.6 | 2,938.7 | 2,497.6 | |||||||||||
Surface Technologies | 329.1 | — | 846.9 | — | |||||||||||
Total inbound orders | $ | 2,461.9 | $ | 1,706.4 | $ | 7,204.4 | $ | 4,378.9 |
September 30 | |||||||
2017 | 2016 | ||||||
Order Backlog (2) | |||||||
Subsea | $ | 5,948.9 | $ | 5,662.9 | |||
Onshore/Offshore | 7,559.3 | 8,035.9 | |||||
Surface Technologies | 394.2 | — | |||||
Total order backlog | $ | 13,902.4 | $ | 13,698.8 | |||
(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) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 6,896.1 | $ | 6,269.3 | |||
Trade receivables, net | 2,724.3 | 2,024.5 | |||||
Costs in excess of billings | 1,317.9 | 485.8 | |||||
Inventories, net | 930.7 | 334.7 | |||||
Other current assets | 2,266.0 | 1,822.9 | |||||
Total current assets | 14,135.0 | 10,937.2 | |||||
Property, plant and equipment, net | 3,950.0 | 2,620.1 | |||||
Goodwill | 8,896.0 | 3,718.3 | |||||
Intangible assets, net | 1,391.8 | 173.7 | |||||
Other assets | 1,255.4 | 1,240.4 | |||||
Total assets | $ | 29,628.2 | $ | 18,689.7 | |||
Short-term debt and current portion of long-term debt | $ | 473.2 | $ | 683.6 | |||
Accounts payable, trade | 4,647.7 | 3,837.7 | |||||
Advance payments | 137.9 | 411.1 | |||||
Billings in excess of costs | 3,026.4 | 3,323.0 | |||||
Other current liabilities | 3,296.2 | 2,633.5 | |||||
Total current liabilities | 11,581.4 | 10,888.9 | |||||
Long-term debt, less current portion | 3,167.4 | 1,869.3 | |||||
Other liabilities | 1,154.5 | 819.6 | |||||
TechnipFMC plc stockholders’ equity | 13,729.4 | 5,123.6 | |||||
Noncontrolling interests | (4.5 | ) | (11.7 | ) | |||
Total liabilities and equity | $ | 29,628.2 | $ | 18,689.7 |
(Unaudited) | |||||||
Nine Months Ended | |||||||
September 30 | |||||||
2017 | 2016 | ||||||
Cash provided (required) by operating activities: | |||||||
Net income | $ | 261.7 | $ | 526.1 | |||
Depreciation and amortization | 461.7 | 223.6 | |||||
Trade accounts receivable, net and costs in excess of billings | 225.8 | (727.8 | ) | ||||
Inventories, net | 198.0 | 68.4 | |||||
Accounts payable, trade | 150.2 | 131.2 | |||||
Advance payments and billings in excess of costs | (1,195.3 | ) | (72.5 | ) | |||
Other | 176.9 | 119.4 | |||||
Net cash provided by operating activities | 279.0 | 268.4 | |||||
Cash provided (required) by investing activities: | |||||||
Capital expenditures | (170.4 | ) | (107.6 | ) | |||
Cash acquired in merger of Technip and FMC Technologies | 1,479.2 | — | |||||
Other | 25.6 | (79.7 | ) | ||||
Net cash provided (required) by investing activities | 1,334.4 | (187.3 | ) | ||||
Cash provided (required) by financing activities: | |||||||
Net increase (decrease) in debt | (931.3 | ) | (320.1 | ) | |||
Dividends paid | — | (112.4 | ) | ||||
Other | (124.8 | ) | (151.0 | ) | |||
Net cash required by financing activities | (1,056.1 | ) | (583.5 | ) | |||
Effect of changes in foreign exchange rates on cash and cash equivalents | 69.5 | 121.8 | |||||
Increase (decrease) in cash and cash equivalents | 626.8 | (380.6 | ) | ||||
Cash and cash equivalents, beginning of period | 6,269.3 | 3,178.0 | |||||
Cash and cash equivalents, end of period | $ | 6,896.1 | $ | 2,797.4 |
• | 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 September 30, 2017; revenue 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 nine months ended September 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 | |||||||||||||||||||||||||||
Septemeber 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 | $ | 121.0 | $ | 3.1 | $ | 111.7 | $ | (86.3 | ) | $ | 315.9 | $ | 151.0 | $ | 466.9 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 4.9 | — | 3.3 | — | 8.2 | — | 8.2 | ||||||||||||||||||||
Restructuring and other severance charges | 31.3 | — | 19.9 | — | 51.2 | — | 51.2 | ||||||||||||||||||||
Business combination transaction and integration costs | 2.6 | — | 6.6 | — | 9.2 | — | 9.2 | ||||||||||||||||||||
Change in accounting estimate | — | — | — | — | — | — | — | ||||||||||||||||||||
Purchase price accounting adjustments | 23.8 | — | 8.9 | — | 32.7 | (32.0 | ) | 0.7 | |||||||||||||||||||
Adjusted financial measures | $ | 183.6 | $ | 3.1 | $ | 150.4 | $ | (86.3 | ) | $ | 417.2 | $ | 119.0 | $ | 536.2 |
Pro Forma Three Months Ended | |||||||||||||||||||||||||||
September 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 pro forma | $ | 327.0 | $ | (13.0 | ) | $ | 110.4 | $ | (13.9 | ) | $ | 464.3 | $ | 155.7 | $ | 620.0 | |||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | (2.9 | ) | — | (1.7 | ) | — | (4.6 | ) | — | (4.6 | ) | ||||||||||||||||
Restructuring and other severance charges | 27.0 | — | 11.6 | — | 38.6 | — | 38.6 | ||||||||||||||||||||
Business combination transaction and integration costs | 31.5 | — | 13.1 | — | 44.6 | — | 44.6 | ||||||||||||||||||||
Purchase price accounting adjustments | 23.8 | — | 8.9 | — | 32.7 | (32.0 | ) | 0.7 | |||||||||||||||||||
Adjusted financial measures | $ | 406.4 | $ | (13.0 | ) | $ | 142.3 | $ | (13.9 | ) | $ | 575.6 | $ | 123.7 | $ | 699.3 |
Nine Months Ended | |||||||||||||||||||||||||||
September 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 | $ | 267.2 | $ | 5.5 | $ | 249.7 | $ | (240.5 | ) | $ | 751.9 | $ | 461.7 | $ | 1,213.6 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 5.5 | — | 3.5 | — | 9.0 | — | 9.0 | ||||||||||||||||||||
Restructuring and other severance charges | 29.1 | — | 18.7 | — | 47.8 | — | 47.8 | ||||||||||||||||||||
Business combination transaction and integration costs | 53.1 | — | 34.1 | — | 87.2 | — | 87.2 | ||||||||||||||||||||
Change in accounting estimate | 16.0 | — | 5.9 | — | 21.9 | — | 21.9 | ||||||||||||||||||||
Purchase price accounting adjustments | 141.7 | — | 52.4 | 0.3 | 193.8 | (115.3 | ) | 78.5 | |||||||||||||||||||
Adjusted financial measures | $ | 512.6 | $ | 5.5 | $ | 364.3 | $ | (240.2 | ) | $ | 1,111.6 | $ | 346.4 | $ | 1,458.0 |
Pro Forma Nine Months Ended | |||||||||||||||||||||||||||
September 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 | $ | 478.8 | $ | (12.6 | ) | $ | 196.3 | $ | (14.5 | ) | $ | 702.2 | $ | 477.7 | $ | 1,179.9 | |||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 76.6 | — | 10.8 | — | 87.4 | — | 87.4 | ||||||||||||||||||||
Restructuring and other severance charges | 74.2 | — | 23.4 | — | 97.6 | — | 97.6 | ||||||||||||||||||||
Business combination transaction and integration costs | 42.6 | — | 18.7 | — | 61.3 | — | 61.3 | ||||||||||||||||||||
Purchase price accounting adjustments | 141.7 | — | 52.4 | 0.3 | 193.8 | (115.3 | ) | 78.5 | |||||||||||||||||||
Adjusted financial measures | $ | 813.9 | $ | (12.6 | ) | $ | 301.6 | $ | (14.2 | ) | $ | 1,142.3 | $ | 362.4 | $ | 1,504.7 |
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(after-tax) | |||||||||||||||
Net income attributable to TechnipFMC plc, as reported | $ | 121 | $ | 302 | $ | 267 | $ | 527 | |||||||
Charges and (credits): | |||||||||||||||
Impairment and other charges (1) | 5 | (4 | ) | 6 | 31 | ||||||||||
Restructuring and other severance charges (2) | 31 | 10 | 29 | 42 | |||||||||||
Business combination transaction and integration costs (3) | 3 | 9 | 53 | 20 | |||||||||||
Change in accounting estimate (4) | — | — | 16 | — | |||||||||||
Purchase price accounting adjustments (5) | 24 | — | 142 | — | |||||||||||
Adjusted net income attributable to TechnipFMC plc | $ | 184 | $ | 317 | $ | 513 | $ | 620 | |||||||
Diluted EPS attributable to TechnipFMC plc, as reported | $ | 0.26 | $ | 2.39 | $ | 0.57 | $ | 4.22 | |||||||
Adjusted diluted EPS attributable to TechnipFMC plc | $ | 0.39 | $ | 2.51 | $ | 1.10 | $ | 4.96 | |||||||
(1) Tax effect of $3 million and $(2) million during the three months ended and $4 million and $15 million during the nine months ended September 30, 2017 and 2016, respectively. (2) Tax effect of $20 million and $5 million during the three months ended and $19 million and $20 million during the nine months ended September 30, 2017 and 2016, respectively. (3) Tax effect of $7 million and $5 million during the three months ended and $34 million and $10 million during the nine months ended September 30, 2017 and 2016, respectively. (4) Tax effect of nil and nil during the three months ended and $6 million and nil during the nine months ended September 30, 2017 and 2016, respectively. (5) Tax effect of $9 million and nil during the three months ended and $52 million and nil during the nine months ended September 30, 2017 and 2016, respectively. |
Three Months Ended | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 1,478.2 | $ | 2,308.1 | $ | 353.9 | $ | 0.7 | $ | 4,140.9 | |||||||||
Operating profit, as reported (pre-tax) | $ | 102.8 | $ | 206.4 | $ | 49.0 | $ | (42.3 | ) | $ | 315.9 | ||||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 1.4 | — | 6.8 | — | 8.2 | ||||||||||||||
Restructuring and other severance charges | 21.4 | 28.9 | 1.0 | (0.1 | ) | 51.2 | |||||||||||||
Business combination transaction and integration costs | (3.0 | ) | — | (1.0 | ) | 13.2 | 9.2 | ||||||||||||
Change in accounting estimate | — | — | — | — | — | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | 11.9 | — | (0.1 | ) | (11.1 | ) | 0.7 | ||||||||||||
Purchase price accounting adjustments - amortization related | 32.1 | — | 0.3 | (0.4 | ) | 32.0 | |||||||||||||
Subtotal | 63.8 | 28.9 | 7.0 | 1.6 | 101.3 | ||||||||||||||
Adjusted Operating profit | 166.6 | 235.3 | 56.0 | (40.7 | ) | 417.2 | |||||||||||||
Adjusted Depreciation and amortization | 93.8 | 9.3 | 15.2 | 0.7 | 119.0 | ||||||||||||||
Adjusted EBITDA | $ | 260.4 | $ | 244.6 | $ | 71.2 | $ | (40.0 | ) | $ | 536.2 | ||||||||
Operating profit margin, as reported | 7.0 | % | 8.9 | % | 13.8 | % | 7.6 | % | |||||||||||
Adjusted Operating profit margin | 11.3 | % | 10.2 | % | 15.8 | % | 10.1 | % | |||||||||||
Adjusted EBITDA margin | 17.6 | % | 10.6 | % | 20.1 | % | 12.9 | % |
Pro Forma Three Months Ended | |||||||||||||||||||
September 30, 2016 | |||||||||||||||||||
(including legacy FMC Technologies and PPA adjustments) | Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | ||||||||||||||
Revenue, as pro forma | $ | 2,346.6 | $ | 2,398.8 | $ | 295.2 | $ | (2.4 | ) | $ | 5,038.2 | ||||||||
Operating profit (pre-tax), as pro forma | $ | 357.7 | $ | 118.6 | $ | (17.4 | ) | $ | 5.4 | $ | 464.3 | ||||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 1.4 | (6.3 | ) | 0.3 | — | (4.6 | ) | ||||||||||||
Restructuring and other severance charges | 3.2 | 11.5 | 14.9 | 9.0 | 38.6 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 44.6 | 44.6 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | 11.9 | — | (0.1 | ) | (11.1 | ) | 0.7 | ||||||||||||
Purchase price accounting adjustments - amortization related | 32.1 | — | 0.3 | (0.4 | ) | 32.0 | |||||||||||||
Subtotal | 48.6 | 5.2 | 15.4 | 42.1 | 111.3 | ||||||||||||||
Adjusted Operating profit | 406.3 | 123.8 | (2.0 | ) | 47.5 | 575.6 | |||||||||||||
Adjusted Depreciation and amortization | 97.1 | 8.6 | 16.8 | 1.2 | 123.7 | ||||||||||||||
Adjusted EBITDA | $ | 503.4 | $ | 132.4 | $ | 14.8 | $ | 48.7 | $ | 699.3 | |||||||||
Operating profit margin, as pro forma | 15.2 | % | 4.9 | % | (5.9 | )% | 9.2 | % | |||||||||||
Adjusted Operating profit margin | 17.3 | % | 5.2 | % | (0.7 | )% | 11.4 | % | |||||||||||
Adjusted EBITDA margin | 21.5 | % | 5.5 | % | 5.0 | % | 13.9 | % |
Nine Months Ended | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 4,585.2 | $ | 5,885.0 | $ | 902.3 | $ | 1.4 | $ | 11,373.9 | |||||||||
Operating profit, as reported (pre-tax) | $ | 393.1 | $ | 553.7 | $ | 29.4 | $ | (224.3 | ) | $ | 751.9 | ||||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 2.0 | — | 7.0 | — | 9.0 | ||||||||||||||
Restructuring and other severance charges | 33.5 | 0.9 | 5.0 | 8.4 | 47.8 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 87.2 | 87.2 | ||||||||||||||
Change in accounting estimate | 11.8 | — | 10.1 | — | 21.9 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | 55.3 | — | 42.3 | (19.1 | ) | 78.5 | |||||||||||||
Purchase price accounting adjustments - amortization related | 104.7 | — | 11.5 | (0.9 | ) | 115.3 | |||||||||||||
Subtotal | 207.3 | 0.9 | 75.9 | 75.6 | 359.7 | ||||||||||||||
Adjusted Operating profit | 600.4 | 554.6 | 105.3 | (148.7 | ) | 1,111.6 | |||||||||||||
Adjusted Depreciation and amortization | 275.3 | 29.9 | 37.8 | 3.4 | 346.4 | ||||||||||||||
Adjusted EBITDA | $ | 875.7 | $ | 584.5 | $ | 143.1 | $ | (145.3 | ) | $ | 1,458.0 | ||||||||
Operating profit margin, as reported | 8.6 | % | 9.4 | % | 3.3 | % | 6.6 | % | |||||||||||
Adjusted Operating profit margin | 13.1 | % | 9.4 | % | 11.7 | % | 9.8 | % | |||||||||||
Adjusted EBITDA margin | 19.1 | % | 9.9 | % | 15.9 | % | 12.8 | % |
Pro Forma Nine Months Ended | |||||||||||||||||||
September 30, 2016 | |||||||||||||||||||
(including legacy FMC Technologies and PPA adjustments) | Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | ||||||||||||||
Revenue, as pro forma | $ | 7,126.4 | $ | 6,629.1 | $ | 948.6 | $ | (15.0 | ) | $ | 14,689.1 | ||||||||
Operating profit (pre-tax), as pro forma | $ | 836.3 | $ | 239.5 | $ | (116.7 | ) | $ | (256.9 | ) | $ | 702.2 | |||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 4.3 | 31.7 | 36.2 | 15.2 | 87.4 | ||||||||||||||
Restructuring and other severance charges | 25.3 | 38.1 | 24.7 | 9.5 | 97.6 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 61.3 | 61.3 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | 55.3 | — | 42.3 | (19.1 | ) | 78.5 | |||||||||||||
Purchase price accounting adjustments - amortization related | 104.7 | — | 11.5 | (0.9 | ) | 115.3 | |||||||||||||
Subtotal | 189.6 | 69.8 | 114.7 | 66.0 | 440.1 | ||||||||||||||
Adjusted Operating profit | 1,025.9 | 309.3 | (2.0 | ) | (190.9 | ) | 1,142.3 | ||||||||||||
Adjusted Depreciation and amortization | 278.9 | 27.8 | 54.7 | 1.0 | 362.4 | ||||||||||||||
Adjusted EBITDA | $ | 1,304.8 | $ | 337.1 | $ | 52.7 | $ | (189.9 | ) | $ | 1,504.7 | ||||||||
Operating profit margin, as pro forma | 11.7 | % | 3.6 | % | (12.3 | )% | 4.8 | % | |||||||||||
Adjusted Operating profit margin | 14.4 | % | 4.7 | % | (0.2 | )% | 7.8 | % | |||||||||||
Adjusted EBITDA margin | 18.3 | % | 5.1 | % | 5.6 | % | 10.2 | % |
September 30, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 6,896.1 | $ | 6,269.3 | |||
Short-term debt and current portion of long-term debt | (473.2 | ) | (683.6 | ) | |||
Long-term debt, less current portion | (3,167.4 | ) | (1,869.3 | ) | |||
Net cash | $ | 3,255.5 | $ | 3,716.4 |