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 February 21, 2018 |
Exhibit No. | Description |
99.1 |
By: /s/ Maryann T. Mannen | ||
Dated: February 21, 2018 | Name: Maryann T. Mannen | |
Title: Executive Vice President and Chief Financial Officer |
• | Successful first year; strong operational performance across all segments |
• | Full-year subsea orders of $5.1 billion increased 27%1 over the prior year |
• | Onshore/Offshore adjusted EBITDA margin guidance for 2018 raised to at least 10.5%, excluding charges and credits |
(In millions, except per share amounts) | Three Months Ended December 31, 2017 | Three Months Ended December 31, 2016 (Pro Forma) | Change |
Revenue | $3,683.0 | $4,379.7 | (15.9%) |
Net income (loss) | $(153.9) | $(100.6) | (53.0%) |
EPS (loss) | $(0.33) | ||
Adjusted EBITDA | $573.1 | $525.9 | 9.0% |
Adjusted EBITDA margin | 15.6% | 12.0% | 360 bps |
Net income, excluding charges and credits | $90.9 | ||
Diluted EPS, excluding charges and credits | $0.20 | ||
Inbound orders | $2,991.9 | ||
Backlog | $12,982.8 |
(In millions, except per share amounts) | Twelve Months Ended December 31, 2017 | Twelve Months Ended December 31, 2016 (Pro Forma) | Change |
Revenue | $15,056.9 | $19,068.8 | (21.0%) |
Net income | $113.3 | $378.2 | (70.0%) |
Diluted EPS | $0.24 | ||
Adjusted EBITDA | $2,031.1 | $2,030.6 | n/m |
Adjusted EBITDA margin | 13.5% | 10.6% | 290 bps |
Net income, excluding charges and credits | $603.5 | ||
Diluted EPS, excluding charges and credits | $1.29 | ||
Inbound orders | $10,196.3 | ||
Backlog | $12,982.8 |
Subsea |
(In millions) | Three Months Ended December 31, 2017 | Three Months Ended December 31, 2016 (Pro Forma) | Change |
Revenue | $1,292.2 | $2,024.1 | (36.2%) |
Operating profit | $67.4 | $146.3 | (53.9%) |
Adjusted EBITDA | $244.1 | $395.9 | (38.3%) |
Adjusted EBITDA margin | 18.9% | 19.6% | (70 bps) |
Inbound orders | $1,724.8 | ||
Backlog | $6,203.9 |
• | Total Kaombo |
• | Shell Appomattox |
• | Statoil Trestakk iEPCI™ |
• | VNG Norge Fenja iEPCI™ Project in Norwegian Sea |
• | Statoil Snorre Expansion Project in North Sea |
• | Murphy Sabah Oil Block H Gas Development Project in Malaysia |
Estimated Backlog Scheduling as of December 31, 2017 (In millions) | Subsea |
2018 | $3,358.7 |
2019 | $1,566.2 |
2020 and beyond | $1,279.0 |
Total | $6,203.9 |
• | Backlog does not capture all revenue potential for subsea services. |
Onshore/Offshore |
(In millions) | Three Months Ended December 31, 2017 | Three Months Ended December 31, 2016 (Pro Forma) | Change |
Revenue | $2,019.5 | $2,060.9 | (2.0%) |
Operating profit (loss) | $257.2 | $(55.0) | n/m |
Adjusted EBITDA | $294.5 | $134.6 | 118.8% |
Adjusted EBITDA margin | 14.6% | 6.5% | 810 bps |
Inbound orders | $874.2 | ||
Backlog | $6,369.1 |
• | Yamal LNG |
• | SIBUR Zapsib 2 |
• | ENOC Jebel Ali Refinery Upgrade |
• | Shell Prelude FLNG |
• | Statoil Aasta Hansteen Spar |
• | Bapco Sitra Refinery Expansion in Bahrain |
Estimated Backlog Scheduling as of December 31, 2017 (In millions) | Onshore/Offshore |
2018 | $4,236.3 |
2019 | $1,494.3 |
2020 and beyond | $638.5 |
Total | $6,369.1 |
• | Backlog does not capture all revenue potential in future periods given reimbursable scope portions of existing contracts. |
Surface Technologies |
(In millions) | Three Months Ended December 31, 2017 | Three Months Ended December 31, 2016 (Pro Forma) | Change |
Revenue | $372.3 | $303.6 | 22.6% |
Operating profit (loss) | $53.3 | $(5.3) | n/m |
Adjusted EBITDA | $75.8 | $17.5 | 333.1% |
Adjusted EBITDA margin | 20.4% | 5.8% | 1,460bps |
Inbound orders | $392.9 | ||
Backlog | $409.8 |
• | Onshore/Offshore revenue in a range of $5.3 - 5.7 billion; EBITDA margin4 of at least 10.5% (excluding charges and credits); margin guidance has been increased from the previous guidance of at least 9.5%. |
• | Subsea revenue in a range of $5.0 - 5.3 billion; EBITDA margin4 of at least 14% (excluding charges and credits). |
• | Surface Technologies revenue in a range of $1.5 - 1.6 billion; EBITDA margin4 of at least 17.5% (excluding charges and credits). |
2018 Guidance *Items updated February 21, 2018 | ||||
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 margin4 at least 14% (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin4 at least 10.5%* (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin4 at least 17.5% (excluding amortization related impact of purchase price accounting, and other charges and credits) | ||
TechnipFMC | ||||
Corporate expense $40 - 45 million per quarter (excluding the impact of foreign currency fluctuations) | ||||
Net interest expense approximately $20 - 22 million per quarter (excluding the impact of revaluation of partners’ redeemable financial liability) | ||||
Tax rate 28 - 32% for the full year (excluding the impact of discrete items) | ||||
Capital expenditures approximately $300 million for the full year | ||||
Merger integration and restructuring costs approximately $100 million for the full year | ||||
Cost synergies $450 million annual savings ($200 million exit run-rate 12/31/17, $400 million exit run-rate 12/31/18, $450 million exit run-rate 12/31/19) |
• | 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 laws and 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; |
• | risks relating to the amount of our existing and future debt and compliance with covenants under our debt instruments; |
• | 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 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 or significant merger-related costs; |
• | failure of our information technology infrastructure, including as a result of cyberattacks, or any significant breach of security; |
• | risks associated with tax liabilities, changes in U.S. federal or international tax laws or interpretations of, or future changes to, such laws; |
• | risks related to seasonal variations and adverse weather conditions; and |
• | such other risks 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 Matt Seinsheimer Vice President Investor Relations Tel: +1 281 260 3665 Email: Matt Seinsheimer Phillip Lindsay Director Investor Relations (Europe) Tel: +44 (0) 20 3429 3929 Email: Phillip Lindsay | Media relations Christophe Belorgeot Vice President Corporate Communications Tel: +33 1 47 78 39 92 Email: Christophe Belorgeot Delphine Nayral Manager Public Relations Tel: +33 1 47 78 34 83 Email: Delphine Nayral |
• | 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 U.S. 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 December 31, 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 | Twelve Months Ended | ||||||||||||||
December 31 | December 31 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | $ | 3,683.0 | $ | 2,047.7 | $ | 15,056.9 | $ | 9,199.6 | |||||||
Costs and expenses | 3,387.1 | 2,237.7 | 14,091.7 | 8,743.6 | |||||||||||
295.9 | (190.0 | ) | 965.2 | 456.0 | |||||||||||
Other income (expense), net | (4.8 | ) | 68.9 | 77.8 | 124.2 | ||||||||||
Income before net interest expense and income taxes | 291.1 | (121.1 | ) | 1,043.0 | 580.2 | ||||||||||
Net interest expense | (122.8 | ) | (7.4 | ) | (363.3 | ) | (28.8 | ) | |||||||
Income before income taxes | 168.3 | (128.5 | ) | 679.7 | 551.4 | ||||||||||
Provision for income taxes | 295.8 | 26.5 | 545.5 | 180.3 | |||||||||||
Net income | (127.5 | ) | (155.0 | ) | 134.2 | 371.1 | |||||||||
Net loss attributable to noncontrolling interests | (26.4 | ) | 21.2 | (20.9 | ) | 22.2 | |||||||||
Net income attributable to TechnipFMC plc | $ | (153.9 | ) | $ | (133.8 | ) | $ | 113.3 | $ | 393.3 | |||||
Earnings per share attributable to TechnipFMC plc: | |||||||||||||||
Basic | $ | (0.33 | ) | $ | (1.13 | ) | $ | 0.24 | $ | 3.29 | |||||
Diluted | $ | (0.33 | ) | $ | (1.13 | ) | $ | 0.24 | $ | 3.16 | |||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 466.2 | 118.7 | 466.7 | 119.4 | |||||||||||
Diluted | 466.2 | 118.7 | 468.3 | 125.1 | |||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31 | December 31 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | |||||||||||||||
Subsea | $ | 1,292.2 | $ | 1,225.8 | $ | 5,877.4 | $ | 5,850.5 | |||||||
Onshore/Offshore | 2,019.5 | 821.9 | 7,904.5 | 3,349.1 | |||||||||||
Surface Technologies | 372.3 | — | 1,274.6 | — | |||||||||||
Other revenue and intercompany eliminations | (1.0 | ) | — | 0.4 | — | ||||||||||
$ | 3,683.0 | $ | 2,047.7 | $ | 15,056.9 | $ | 9,199.6 | ||||||||
Income before income taxes | |||||||||||||||
Segment operating profit (loss) | |||||||||||||||
Subsea | $ | 67.4 | $ | 62.1 | $ | 460.5 | $ | 732.0 | |||||||
Onshore/Offshore | 257.2 | (105.7 | ) | 810.9 | 34.1 | ||||||||||
Surface Technologies | 53.3 | — | 82.7 | — | |||||||||||
Total segment operating profit | 377.9 | (43.6 | ) | 1,354.1 | 766.1 | ||||||||||
Corporate items | |||||||||||||||
Corporate expense, net (1) | (86.8 | ) | (77.5 | ) | (311.1 | ) | (185.9 | ) | |||||||
Interest expense | (122.8 | ) | (7.4 | ) | (363.3 | ) | (28.8 | ) | |||||||
Total corporate items | (209.6 | ) | (84.9 | ) | (674.4 | ) | (214.7 | ) | |||||||
Net income before income taxes (2) | $ | 168.3 | $ | (128.5 | ) | $ | 679.7 | $ | 551.4 | ||||||
(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 | Twelve Months Ended | ||||||||||||||
December 31 | December 31 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Inbound Orders (1) | |||||||||||||||
Subsea | $ | 1,724.8 | $ | 503.6 | $ | 5,143.6 | $ | 2,384.9 | |||||||
Onshore/Offshore | 874.2 | 1,191.4 | 3,812.9 | 3,689.0 | |||||||||||
Surface Technologies | 392.9 | — | 1,239.8 | — | |||||||||||
Total inbound orders | $ | 2,991.9 | $ | 1,695.0 | $ | 10,196.3 | $ | 6,073.9 |
December 31 | |||||||
2017 | 2016 | ||||||
Order Backlog (2) | |||||||
Subsea | $ | 6,203.9 | $ | 4,909.0 | |||
Onshore/Offshore | 6,369.1 | 11,834.9 | |||||
Surface Technologies | 409.8 | — | |||||
Total order backlog | $ | 12,982.8 | $ | 16,743.9 | |||
(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) | |||||||
December 31, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 6,737.4 | $ | 6,269.3 | |||
Trade receivables, net | 1,735.2 | 1,469.5 | |||||
Costs in excess of billings | 1,770.1 | 1,040.8 | |||||
Inventories, net | 987.0 | 334.7 | |||||
Other current assets | 2,094.6 | 1,822.9 | |||||
Total current assets | 13,324.3 | 10,937.2 | |||||
Property, plant and equipment, net | 3,871.5 | 2,620.1 | |||||
Goodwill | 8,929.8 | 3,718.3 | |||||
Intangible assets, net | 1,333.8 | 173.7 | |||||
Other assets | 1,111.5 | 1,172.4 | |||||
Total assets | $ | 28,570.9 | $ | 18,621.7 | |||
Short-term debt and current portion of long-term debt | $ | 77.1 | $ | 683.6 | |||
Accounts payable, trade | 4,003.2 | 3,837.7 | |||||
Advance payments | — | — | |||||
Billings in excess of costs | 3,461.9 | 4,141.8 | |||||
Other current liabilities | 2,634.4 | 2,225.8 | |||||
Total current liabilities | 10,176.6 | 10,888.9 | |||||
Long-term debt, less current portion | 3,777.9 | 1,869.3 | |||||
Other liabilities | 1,207.0 | 819.4 | |||||
TechnipFMC plc stockholders’ equity | 13,387.9 | 5,055.8 | |||||
Noncontrolling interests | 21.5 | (11.7 | ) | ||||
Total liabilities and equity | $ | 28,570.9 | $ | 18,621.7 |
(Unaudited) | |||||||
Twelve Months Ended | |||||||
December 31 | |||||||
2017 | 2016 | ||||||
Cash provided (required) by operating activities: | |||||||
Net income | $ | 134.2 | $ | 371.1 | |||
Depreciation and amortization | 614.7 | 300.7 | |||||
Trade accounts receivable, net and costs in excess of billings | 552.2 | (268.7 | ) | ||||
Inventories, net | 130.9 | 172.7 | |||||
Accounts payable, trade | (570.3 | ) | 115.5 | ||||
Advance payments and billings in excess of costs | (880.1 | ) | (124.2 | ) | |||
Other | 229.1 | (73.3 | ) | ||||
Net cash provided by operating activities | 210.7 | 493.8 | |||||
Cash provided (required) by investing activities: | |||||||
Capital expenditures | (255.7 | ) | (312.9 | ) | |||
Cash acquired in merger of Technip and FMC Technologies | 1,479.2 | — | |||||
Other | 26.5 | 3,582.2 | |||||
Net cash provided (required) by investing activities | 1,250.0 | 3,269.3 | |||||
Cash provided (required) by financing activities: | |||||||
Net increase (decrease) in debt | (733.8 | ) | (238.1 | ) | |||
Dividends paid | (60.6 | ) | (111.5 | ) | |||
Other | (260.4 | ) | (185.0 | ) | |||
Net cash required by financing activities | (1,054.8 | ) | (534.6 | ) | |||
Effect of changes in foreign exchange rates on cash and cash equivalents | 62.2 | (137.2 | ) | ||||
Increase (decrease) in cash and cash equivalents | 468.1 | 3,091.3 | |||||
Cash and cash equivalents, beginning of period | 6,269.3 | 3,178.0 | |||||
Cash and cash equivalents, end of period | $ | 6,737.4 | $ | 6,269.3 |
• | 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 U.S. 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 December 31, 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 twelve months ended December 31, 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 | |||||||||||||||||||||||||||
December 31, 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 | $ | (153.9 | ) | $ | (26.4 | ) | $ | 295.8 | $ | (122.8 | ) | $ | 291.1 | $ | 153.0 | $ | 444.1 | ||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 11.7 | — | 6.8 | — | 18.5 | — | 18.5 | ||||||||||||||||||||
Restructuring and other severance charges | 73.5 | — | 42.7 | — | 116.2 | — | 116.2 | ||||||||||||||||||||
Business combination transaction and integration costs | 10.6 | — | 4.0 | — | 14.6 | — | 14.6 | ||||||||||||||||||||
Change in accounting estimate | — | — | — | — | — | — | — | ||||||||||||||||||||
Purchase price accounting adjustments | 10.8 | — | 4.0 | — | 14.8 | (35.1 | ) | (20.3 | ) | ||||||||||||||||||
Tax reform | 138.2 | — | (138.2 | ) | — | — | — | — | |||||||||||||||||||
Adjusted financial measures | $ | 90.9 | $ | (26.4 | ) | $ | 215.1 | $ | (122.8 | ) | $ | 455.2 | $ | 117.9 | $ | 573.1 |
Pro Forma Three Months Ended | |||||||||||||||||||||||||||
December 31, 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 | $ | (100.6 | ) | $ | 26.1 | $ | 88.4 | $ | (14.6 | ) | $ | (23.7 | ) | $ | 234.8 | $ | 211.1 | ||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | (4.2 | ) | — | (2.4 | ) | — | (6.6 | ) | — | (6.6 | ) | ||||||||||||||||
Restructuring and other severance charges | 175.3 | — | 89.9 | — | 265.2 | — | 265.2 | ||||||||||||||||||||
Business combination transaction and integration costs | 51.4 | — | 25.1 | — | 76.5 | — | 76.5 | ||||||||||||||||||||
Purchase price accounting adjustments | 10.8 | — | 4.0 | — | 14.8 | (35.1 | ) | (20.3 | ) | ||||||||||||||||||
Adjusted financial measures | $ | 132.7 | $ | 26.1 | $ | 205.0 | $ | (14.6 | ) | $ | 326.2 | $ | 199.7 | $ | 525.9 |
Twelve Months Ended | |||||||||||||||||||||||||||
December 31, 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 | $ | 113.3 | $ | (20.9 | ) | $ | 545.5 | $ | (363.3 | ) | $ | 1,043.0 | $ | 614.7 | $ | 1,657.7 | |||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 17.2 | — | 10.3 | — | 27.5 | — | 27.5 | ||||||||||||||||||||
Restructuring and other severance charges | 102.6 | — | 61.4 | — | 164.0 | — | 164.0 | ||||||||||||||||||||
Business combination transaction and integration costs | 63.7 | — | 38.1 | — | 101.8 | — | 101.8 | ||||||||||||||||||||
Change in accounting estimate | 16.0 | — | 5.9 | — | 21.9 | — | 21.9 | ||||||||||||||||||||
Purchase price accounting adjustments | 152.5 | — | 56.4 | 0.3 | 208.6 | (150.4 | ) | 58.2 | |||||||||||||||||||
Tax reform | 138.2 | — | (138.2 | ) | — | — | — | ||||||||||||||||||||
Adjusted financial measures | $ | 603.5 | $ | (20.9 | ) | $ | 579.4 | $ | (363.0 | ) | $ | 1,566.8 | $ | 464.3 | $ | 2,031.1 |
Pro Forma Twelve Months Ended | |||||||||||||||||||||||||||
December 31, 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 | $ | 378.2 | $ | 13.5 | $ | 284.7 | $ | (29.1 | ) | $ | 678.5 | $ | 712.5 | $ | 1,391.0 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 72.4 | — | 8.4 | — | 80.8 | — | 80.8 | ||||||||||||||||||||
Restructuring and other severance charges | 249.5 | — | 113.3 | — | 362.8 | — | 362.8 | ||||||||||||||||||||
Business combination transaction and integration costs | 94.0 | — | 43.8 | — | 137.8 | — | 137.8 | ||||||||||||||||||||
Purchase price accounting adjustments | 152.5 | — | 56.4 | 0.3 | 208.6 | (150.4 | ) | 58.2 | |||||||||||||||||||
Adjusted financial measures | $ | 946.6 | $ | 13.5 | $ | 506.6 | $ | (28.8 | ) | $ | 1,468.5 | $ | 562.1 | $ | 2,030.6 |
(Unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31 | December 31 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(after-tax) | ||||||||||||||||
Net income attributable to TechnipFMC plc, as reported | $ | (154 | ) | $ | (134 | ) | $ | 113 | $ | 393 | ||||||
Charges and (credits): | ||||||||||||||||
Impairment and other charges (1) | 11 | (6 | ) | 17 | 25 | |||||||||||
Restructuring and other severance charges (2) | 74 | 159 | 103 | 201 | ||||||||||||
Business combination transaction and integration costs (3) | 11 | 41 | 64 | 61 | ||||||||||||
Change in accounting estimate (4) | — | — | 16 | — | ||||||||||||
Purchase price accounting adjustments (5) | 11 | — | 153 | — | ||||||||||||
Tax reform (6) | 138 | — | 138 | — | ||||||||||||
Adjusted net income attributable to TechnipFMC plc | $ | 91 | $ | 60 | $ | 604 | $ | 680 | ||||||||
Diluted EPS attributable to TechnipFMC plc, as reported | $ | (0.33 | ) | $ | (1.13 | ) | $ | 0.24 | $ | 3.16 | ||||||
Adjusted diluted EPS attributable to TechnipFMC plc | $ | 0.20 | $ | 0.50 | $ | 1.29 | $ | 5.45 | ||||||||
(1) Tax effect of $7 million and $(3) million during the three months ended and $10 million and $12 million during the twelve months ended December 31, 2017 and 2016, respectively. (2) Tax effect of $43 million and $83 million during the three months ended and $61 million and $103 million during the twelve months ended December 31, 2017 and 2016, respectively. (3) Tax effect of $4 million and $21 million during the three months ended and $38 million and $31 million during the twelve months ended December 31, 2017 and 2016, respectively. (4) Tax effect of nil and nil during the three months ended and $6 million and nil during the twelve months ended December 31, 2017 and 2016, respectively. (5) Tax effect of $4 million and nil during the three months ended and $56 million and nil during the twelve months ended December 31, 2017 and 2016, respectively. (6) Tax effect of $138 million and nil during the three months ended and $138 million and nil during the twelve months ended December 31, 2017 and 2016, respectively. | ||||||||||||||||
Three Months Ended | |||||||||||||||||||
December 31, 2017 | |||||||||||||||||||
Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 1,292.2 | $ | 2,019.5 | $ | 372.3 | $ | (1.0 | ) | $ | 3,683.0 | ||||||||
Operating profit, as reported (pre-tax) | $ | 67.4 | $ | 257.2 | $ | 53.3 | $ | (86.8 | ) | $ | 291.1 | ||||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 9.3 | — | 3.2 | 6.0 | 18.5 | ||||||||||||||
Restructuring and other severance charges | 55.0 | 26.1 | 4.1 | 31.0 | 116.2 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 14.6 | 14.6 | ||||||||||||||
Change in accounting estimate | — | — | — | — | — | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | (14.8 | ) | — | 1.0 | (6.5 | ) | (20.3 | ) | |||||||||||
Purchase price accounting adjustments - amortization related | 34.5 | — | 0.9 | (0.3 | ) | 35.1 | |||||||||||||
Subtotal | 84.0 | 26.1 | 9.2 | 44.8 | 164.1 | ||||||||||||||
Adjusted Operating profit | 151.4 | 283.3 | 62.5 | (42.0 | ) | 455.2 | |||||||||||||
Adjusted Depreciation and amortization | 92.7 | 11.2 | 13.3 | 0.7 | 117.9 | ||||||||||||||
Adjusted EBITDA | $ | 244.1 | $ | 294.5 | $ | 75.8 | $ | (41.3 | ) | $ | 573.1 | ||||||||
Operating profit margin, as reported | 5.2 | % | 12.7 | % | 14.3 | % | 7.9 | % | |||||||||||
Adjusted Operating profit margin | 11.7 | % | 14.0 | % | 16.8 | % | 12.4 | % | |||||||||||
Adjusted EBITDA margin | 18.9 | % | 14.6 | % | 20.4 | % | 15.6 | % |
Pro Forma Three Months Ended | |||||||||||||||||||
December 31, 2016 | |||||||||||||||||||
(including legacy FMC Technologies and PPA adjustments) | Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | ||||||||||||||
Revenue, as pro forma | $ | 2,024.1 | $ | 2,060.9 | $ | 303.6 | $ | (8.9 | ) | $ | 4,379.7 | ||||||||
Operating profit (pre-tax), as pro forma | $ | 146.3 | $ | (55.0 | ) | $ | (5.3 | ) | $ | (109.7 | ) | $ | (23.7 | ) | |||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 21.7 | (17.1 | ) | 2.1 | (13.3 | ) | (6.6 | ) | |||||||||||
Restructuring and other severance charges | 44.6 | 184.0 | 5.0 | 31.6 | 265.2 | ||||||||||||||
Business combination transaction and integration costs | 1.2 | — | 0.4 | 74.9 | 76.5 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | (14.8 | ) | — | 1.0 | (6.5 | ) | (20.3 | ) | |||||||||||
Purchase price accounting adjustments - amortization related | 34.5 | — | 0.9 | (0.3 | ) | 35.1 | |||||||||||||
Subtotal | 87.2 | 166.9 | 9.4 | 86.4 | 349.9 | ||||||||||||||
Adjusted Operating profit | 233.5 | 111.9 | 4.1 | (23.3 | ) | 326.2 | |||||||||||||
Adjusted Depreciation and amortization | 162.4 | 22.7 | 13.4 | 1.2 | 199.7 | ||||||||||||||
Adjusted EBITDA | $ | 395.9 | $ | 134.6 | $ | 17.5 | $ | (22.1 | ) | $ | 525.9 | ||||||||
Operating profit margin, as pro forma | 7.2 | % | (2.7 | )% | (1.7 | )% | (0.5 | )% | |||||||||||
Adjusted Operating profit margin | 11.5 | % | 5.4 | % | 1.4 | % | 7.4 | % | |||||||||||
Adjusted EBITDA margin | 19.6 | % | 6.5 | % | 5.8 | % | 12.0 | % |
Twelve Months Ended | |||||||||||||||||||
December 31, 2017 | |||||||||||||||||||
Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 5,877.4 | $ | 7,904.5 | $ | 1,274.6 | $ | 0.4 | $ | 15,056.9 | |||||||||
Operating profit, as reported (pre-tax) | $ | 460.5 | $ | 810.9 | $ | 82.7 | $ | (311.1 | ) | $ | 1,043.0 | ||||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 11.3 | — | 10.2 | 6.0 | 27.5 | ||||||||||||||
Restructuring and other severance charges | 88.5 | 27.0 | 9.1 | 39.4 | 164.0 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 101.8 | 101.8 | ||||||||||||||
Change in accounting estimate | 11.8 | — | 10.1 | — | 21.9 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | 40.5 | — | 43.3 | (25.6 | ) | 58.2 | |||||||||||||
Purchase price accounting adjustments - amortization related | 139.2 | — | 12.4 | (1.2 | ) | 150.4 | |||||||||||||
Subtotal | 291.3 | 27.0 | 85.1 | 120.4 | 523.8 | ||||||||||||||
Adjusted Operating profit | 751.8 | 837.9 | 167.8 | (190.7 | ) | 1,566.8 | |||||||||||||
Adjusted Depreciation and amortization | 368.0 | 41.1 | 51.1 | 4.1 | 464.3 | ||||||||||||||
Adjusted EBITDA | $ | 1,119.8 | $ | 879.0 | $ | 218.9 | $ | (186.6 | ) | $ | 2,031.1 | ||||||||
Operating profit margin, as reported | 7.8 | % | 10.3 | % | 6.5 | % | 6.9 | % | |||||||||||
Adjusted Operating profit margin | 12.8 | % | 10.6 | % | 13.2 | % | 10.4 | % | |||||||||||
Adjusted EBITDA margin | 19.1 | % | 11.1 | % | 17.2 | % | 13.5 | % |
Pro Forma Twelve Months Ended | |||||||||||||||||||
December 31, 2016 | |||||||||||||||||||
(including legacy FMC Technologies and PPA adjustments) | Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | ||||||||||||||
Revenue, as pro forma | $ | 9,150.5 | $ | 8,690.0 | $ | 1,252.2 | $ | (23.9 | ) | $ | 19,068.8 | ||||||||
Operating profit (pre-tax), as pro forma | $ | 982.6 | $ | 184.5 | $ | (122.0 | ) | $ | (366.6 | ) | $ | 678.5 | |||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 26.0 | 14.6 | 38.3 | 1.9 | 80.8 | ||||||||||||||
Restructuring and other severance charges | 69.9 | 222.1 | 29.7 | 41.1 | 362.8 | ||||||||||||||
Business combination transaction and integration costs | 1.2 | — | 0.4 | 136.2 | 137.8 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | 40.5 | — | 43.3 | (25.6 | ) | 58.2 | |||||||||||||
Purchase price accounting adjustments - amortization related | 139.2 | — | 12.4 | (1.2 | ) | 150.4 | |||||||||||||
Subtotal | 276.8 | 236.7 | 124.1 | 152.4 | 790.0 | ||||||||||||||
Adjusted Operating profit | 1,259.4 | 421.2 | 2.1 | (214.2 | ) | 1,468.5 | |||||||||||||
Adjusted Depreciation and amortization | 441.3 | 50.5 | 68.1 | 2.2 | 562.1 | ||||||||||||||
Adjusted EBITDA | $ | 1,700.7 | $ | 471.7 | $ | 70.2 | $ | (212.0 | ) | $ | 2,030.6 | ||||||||
Operating profit margin, as pro forma | 10.7 | % | 2.1 | % | (9.7 | )% | 3.6 | % | |||||||||||
Adjusted Operating profit margin | 13.8 | % | 4.8 | % | 0.2 | % | 7.7 | % | |||||||||||
Adjusted EBITDA margin | 18.6 | % | 5.4 | % | 5.6 | % | 10.6 | % |
December 31, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 6,737.4 | $ | 6,269.3 | |||
Short-term debt and current portion of long-term debt | (77.1 | ) | (683.6 | ) | |||
Long-term debt, less current portion | (3,777.9 | ) | (1,869.3 | ) | |||
Net cash | $ | 2,882.4 | $ | 3,716.4 |