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 24, 2018 |
Exhibit No. | Description |
99.1 |
TechnipFMC plc | ||
By: /s/ Maryann T. Mannen | ||
Dated: | October 24, 2018 | Name: Maryann T. Mannen |
Title: Executive Vice President and Chief Financial Officer |
• | Net income of $136.9 million and adjusted EBITDA of $430.5 million |
• | Inbound orders of $3.6 billion; Subsea orders exceeded revenue for the fourth consecutive quarter |
• | Backlog increased year-over-year in all segments |
• | Updated 2018 guidance reflects strong execution in Onshore/Offshore and revised market outlook for Surface Technologies |
• | $34.4 million, or $0.05 per diluted share, of foreign exchange losses included in corporate expense; and |
• | $93.2 million, or $0.20 per diluted share, of increased liability payable to joint venture partners included in interest expense. |
Three Months Ended | Three Months Ended | ||||||
(In millions, except per share amounts) | September 30, 2018 | September 30, 2017 | Change | ||||
Revenue | $3,143.8 | $4,140.9 | (24.1%) | ||||
Net income | $136.9 | $121.0 | 13.1% | ||||
Diluted EPS | $0.30 | $0.26 | 15.4% | ||||
Adjusted EBITDA | $430.5 | $536.2 | (19.7%) | ||||
Adjusted EBITDA margin | 13.7 | % | 12.9 | % | 74 bps | ||
Net income, excluding charges and credits | $139.8 | $183.6 | (23.9%) | ||||
Diluted EPS, excluding charges and credits | $0.31 | $0.39 | (20.5%) | ||||
Inbound orders | $3,647.2 | $2,461.9 | 48.1% | ||||
Backlog | $15,178.0 | $13,902.4 | 9.2% |
Subsea |
Three Months Ended | Three Months Ended | ||||||
(In millions) | September 30, 2018 | September 30, 2017 | Change | ||||
Revenue | $1,209.1 | $1,478.2 | (18.2%) | ||||
Operating profit | $79.7 | $102.8 | (22.5%) | ||||
Adjusted EBITDA | $188.5 | $260.4 | (27.6%) | ||||
Adjusted EBITDA margin | 15.6 | % | 17.6 | % | (203 bps) | ||
Inbound orders | $1,553.9 | $979.8 | 58.6% | ||||
Backlog | $6,343.4 | $5,948.9 | 6.6% |
• | Equinor Trestakk iEPCI™ (Norway) |
• | Equinor Visund Nord IOR iEPCI™ (Norway) |
• | Total Kaombo (Angola) |
• | ExxonMobil Liza Phase 2 Project (Guyana) |
Subsea | Consolidated backlog* | Non-consolidated backlog** | ||||
Estimated Backlog Scheduling as of September 30, 2018 | ||||||
(In millions) | ||||||
2018 (3 months) | $1,102.7 | $23.4 | ||||
2019 | $2,798.2 | $179.7 | ||||
2020 and beyond | $2,442.5 | $792.8 | ||||
Total | $6,343.4 | $995.9 |
* | Backlog does not capture all revenue potential for subsea services. |
Onshore/Offshore |
Three Months Ended | Three Months Ended | ||||||
(In millions) | September 30, 2018 | September 30, 2017 | Change | ||||
Revenue | $1,532.5 | $2,308.1 | (33.6%) | ||||
Operating profit | $243.4 | $206.4 | 17.9% | ||||
Adjusted EBITDA | $227.3 | $244.6 | (7.1%) | ||||
Adjusted EBITDA margin | 14.8 | % | 10.6 | % | 423 bps | ||
Inbound orders | $1,666.1 | $1,153.0 | 44.5% | ||||
Backlog | $8,378.8 | $7,559.3 | 10.8% |
• | Yamal LNG (Russia) |
• | ENI Coral South FLNG (Mozambique) |
• | Martin Linge (Norway) |
• | Long Son Petrochemicals Co., Ltd. Olefins Plant (Vietnam) |
Onshore/Offshore | Consolidated backlog | Non-consolidated backlog* | ||||
Estimated Backlog Scheduling as of September 30, 2018 | ||||||
(In millions) | ||||||
2018 (3 months) | $1,602.0 | $63.3 | ||||
2019 | $4,194.7 | $718.5 | ||||
2020 and beyond | $2,582.1 | $1,142.4 | ||||
Total | $8,378.8 | $1,924.2 |
Surface Technologies |
Three Months Ended | Three Months Ended | ||||||
(In millions) | September 30, 2018 | September 30, 2017 | Change | ||||
Revenue | $402.2 | $353.9 | 13.6% | ||||
Operating profit (loss) | $51.9 | $49.0 | 5.9% | ||||
Adjusted EBITDA | $72.5 | $71.2 | 1.8% | ||||
Adjusted EBITDA margin | 18.0 | % | 20.1 | % | (209) bps | ||
Inbound orders | $427.2 | $329.1 | 29.8% | ||||
Backlog | $455.8 | $394.2 | 15.6% |
2018 Guidance *Updated October 24, 2018 | ||||
Subsea | Onshore/Offshore | Surface Technologies | ||
Revenue in a range of $5.0 - 5.3 billion | Revenue in a range of $5.8 - 6.1 billion* | Revenue in a range of $1.5 - 1.6 billion | ||
EBITDA margin at least 14% (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin at least 13%* (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin at least 16%* (excluding amortization related impact of purchase price accounting, and other charges and credits) | ||
TechnipFMC | ||||
Corporate expense, net $40 - 45 million per quarter (excluding the impact of foreign currency fluctuations) | ||||
Net interest expense* approximately $10 - 12 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) | ||||
• | Onshore/Offshore revenue in a range of $5.8 - 6.1 billion, increased from the previous guidance range of $5.6 - 5.9 billion. |
• | Onshore/Offshore EBITDA margin of at least 13% (excluding charges and credits), increased from the previous guidance of at least 12% (excluding charges and credits). |
• | Surface Technologies EBITDA margin of at least 16% (excluding charges and credits), reduced from the previous guidance of at least 17.5% (excluding charges and credits). |
• | Net interest expense of approximately $10 - 12 million per quarter (excluding the impact of revaluation of partners’ redeemable financial liability), reduced from the previous guidance of approximately $20 - 22 million per quarter (excluding the impact of revaluation of partners’ redeemable financial liability). |
• | the remedial measures to address our material weaknesses could be insufficient or additional issues relating to disclosure controls and procedures or internal control over financial reporting could be identified; |
• | 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 revenues; |
• | our ability to timely deliver our backlog and its effect on our future sales, profitability, and our relationships with our customers; |
• | our reliance on subcontractors, suppliers and joint venture partners in the performance of our contracts; |
• | our ability to hire and retain key personnel; |
• | piracy risks for our maritime employees and assets; |
• | the potential impacts of seasonal and weather conditions; |
• | 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; |
• | our 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, including related to cyber attacks; |
• | risks associated with tax liabilities, 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 Phillip Lindsay Director Investor Relations (Europe) Tel: +44 (0) 20 3429 3929 Email: Phillip Lindsay | Christophe Bélorgeot Vice President Corporate Communications Tel: +33 1 47 78 39 92 Email: Christophe Belorgeot Delphine Nayral Senior 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). |
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 was reported in Subsea and the remainder in Surface Technologies. |
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 3,143.8 | $ | 4,140.9 | $ | 9,229.9 | $ | 11,373.9 | |||||||
Costs and expenses | 2,863.7 | 3,872.3 | 8,527.2 | 10,704.6 | |||||||||||
280.1 | 268.6 | 702.7 | 669.3 | ||||||||||||
Other (expense) income, net | 26.8 | 47.3 | 58.0 | 82.6 | |||||||||||
Income before net interest expense and income taxes | 306.9 | 315.9 | 760.7 | 751.9 | |||||||||||
Net interest expense | (106.0 | ) | (86.3 | ) | (244.3 | ) | (240.5 | ) | |||||||
Income before income taxes | 200.9 | 229.6 | 516.4 | 511.4 | |||||||||||
Provision for income taxes | 66.7 | 111.7 | 180.7 | 249.7 | |||||||||||
Net income | 134.2 | 117.9 | 335.7 | 261.7 | |||||||||||
Net loss (income) attributable to noncontrolling interests | 2.7 | 3.1 | 2.0 | 5.5 | |||||||||||
Net income attributable to TechnipFMC plc | $ | 136.9 | $ | 121.0 | $ | 337.7 | $ | 267.2 | |||||||
Earnings per share attributable to TechnipFMC plc: | |||||||||||||||
Basic | $ | 0.30 | $ | 0.26 | $ | 0.73 | $ | 0.57 | |||||||
Diluted | $ | 0.30 | $ | 0.26 | $ | 0.73 | $ | 0.57 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 454.5 | 467.2 | 460.0 | 466.8 | |||||||||||
Diluted | 459.0 | 469.7 | 464.0 | 468.3 | |||||||||||
Cash dividends declared per share | $ | 0.13 | $ | — | $ | 0.39 | $ | — |
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | |||||||||||||||
Subsea | $ | 1,209.1 | $ | 1,478.2 | $ | 3,606.7 | $ | 4,585.2 | |||||||
Onshore/Offshore | 1,532.5 | 2,308.1 | 4,448.3 | 5,885.0 | |||||||||||
Surface Technologies | 402.2 | 353.9 | 1,174.9 | 902.3 | |||||||||||
Other revenue | — | 0.7 | — | 1.4 | |||||||||||
$ | 3,143.8 | $ | 4,140.9 | $ | 9,229.9 | $ | 11,373.9 | ||||||||
Income before income taxes | |||||||||||||||
Segment operating profit (loss) | |||||||||||||||
Subsea | $ | 79.7 | $ | 102.8 | $ | 210.0 | $ | 393.1 | |||||||
Onshore/Offshore | 243.4 | 206.4 | 617.6 | 553.7 | |||||||||||
Surface Technologies | 51.9 | 49.0 | 134.0 | 29.4 | |||||||||||
Total segment operating profit | 375.0 | 358.2 | 961.6 | 976.2 | |||||||||||
Corporate items | |||||||||||||||
Corporate expense, net (1) | (68.1 | ) | (42.3 | ) | (200.9 | ) | (224.3 | ) | |||||||
Net interest expense | (106.0 | ) | (86.3 | ) | (244.3 | ) | (240.5 | ) | |||||||
Total corporate items | (174.1 | ) | (128.6 | ) | (445.2 | ) | (464.8 | ) | |||||||
Net Income before income taxes (2) | $ | 200.9 | $ | 229.6 | $ | 516.4 | $ | 511.4 |
(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 | Nine Months Ended | ||||||||||||||
Inbound Orders (1) | September 30, | September 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Subsea | $ | 1,553.9 | $ | 979.8 | $ | 4,297.9 | $ | 3,418.8 | |||||||
Onshore/Offshore | 1,666.1 | 1,153.0 | 5,816.5 | 2,938.7 | |||||||||||
Surface Technologies | 427.2 | 329.1 | 1,251.5 | 846.9 | |||||||||||
Total inbound orders | $ | 3,647.2 | $ | 2,461.9 | $ | 11,365.9 | $ | 7,204.4 |
Order Backlog (2) | September 30, | ||||||
2018 | 2017 | ||||||
Subsea | $ | 6,343.4 | $ | 5,948.9 | |||
Onshore/Offshore | 8,378.8 | 7,559.3 | |||||
Surface Technologies | 455.8 | 394.2 | |||||
Total order backlog | $ | 15,178.0 | $ | 13,902.4 |
(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, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 5,553.3 | $ | 6,737.4 | |||
Trade receivables, net | 2,079.3 | 1,484.4 | |||||
Contract assets | 1,394.6 | 1,755.5 | |||||
Inventories, net | 1,171.0 | 987.0 | |||||
Other current assets | 1,472.7 | 2,012.8 | |||||
Total current assets | 11,670.9 | 12,977.1 | |||||
Property, plant and equipment, net | 3,670.5 | 3,871.5 | |||||
Goodwill | 9,003.4 | 8,929.8 | |||||
Intangible assets, net | 1,223.1 | 1,333.8 | |||||
Other assets | 1,199.8 | 1,151.5 | |||||
Total assets | $ | 26,767.7 | $ | 28,263.7 | |||
Short-term debt and current portion of long-term debt | $ | 78.4 | $ | 77.1 | |||
Accounts payable, trade | 2,800.9 | 3,958.7 | |||||
Contract liabilities | 3,819.6 | 3,314.2 | |||||
Other current liabilities | 2,111.6 | 2,479.4 | |||||
Total current liabilities | 8,810.5 | 9,829.4 | |||||
Long-term debt, less current portion | 4,017.1 | 3,777.9 | |||||
Other liabilities | 1,076.1 | 1,247.0 | |||||
Redeemable noncontrolling interest | 39.7 | — | |||||
TechnipFMC plc stockholders’ equity | 12,804.8 | 13,387.9 | |||||
Noncontrolling interests | 19.5 | 21.5 | |||||
Total liabilities and equity | $ | 26,767.7 | $ | 28,263.7 |
(Unaudited) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2018 | 2017 | ||||||
Cash provided (required) by operating activities | |||||||
Net income | $ | 335.7 | $ | 261.7 | |||
Adjustments to reconcile net income (loss) to cash provided (required) by operating activities | |||||||
Depreciation | 276.3 | 276.8 | |||||
Amortization | 136.2 | 184.9 | |||||
Employee benefit plan and share-based compensation costs | 27.1 | 30.5 | |||||
Deferred income tax provision, net | (44.6 | ) | 3.5 | ||||
Unrealized gain on derivative instruments and foreign exchange | 19.0 | (70.5 | ) | ||||
Impairments | 14.1 | 9.0 | |||||
Income from equity affiliates, net of dividends received | (67.3 | ) | (36.3 | ) | |||
Other | 58.9 | 20.9 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions | |||||||
Trade receivables, net and contract assets | (25.9 | ) | 225.8 | ||||
Inventories, net | (259.6 | ) | 198.0 | ||||
Accounts payable, trade | (938.2 | ) | 150.2 | ||||
Contract liabilities | (18.6 | ) | (1,195.3 | ) | |||
Income taxes payable (receivable), net | (91.8 | ) | (88.1 | ) | |||
Other current assets and liabilities, net | 416.6 | 217.3 | |||||
Other noncurrent assets and liabilities, net | (182.6 | ) | 90.6 | ||||
Cash provided (required) by operating activities | (344.7 | ) | 279.0 | ||||
Cash provided (required) by investing activities | |||||||
Capital expenditures | (255.2 | ) | (170.4 | ) | |||
Cash acquired in merger of FMC Technologies, Inc. and Technip S.A. | — | 1,479.2 | |||||
Acquisitions, net of cash acquired | (103.4 | ) | — | ||||
Cash divested from deconsolidation | (7.5 | ) | — | ||||
Proceeds from sale of assets | 7.9 | 13.6 | |||||
Other | — | 12.0 | |||||
Cash provided (required) by investing activities | (358.2 | ) | 1,334.4 | ||||
Cash required by financing activities | |||||||
Net decrease in short-term debt | (29.5 | ) | (28.4 | ) | |||
Net increase (decrease) in commercial paper | 309.3 | (363.0 | ) | ||||
Proceeds from issuance of long-term debt | 2.5 | 7.3 | |||||
Repayments of long-term debt | — | (547.2 | ) | ||||
Payments related to taxes withheld on share-based compensation | — | (46.6 | ) | ||||
Purchase of treasury shares | (384.2 | ) | (1.3 | ) | |||
Dividends paid | (179.2 | ) | — | ||||
Settlements of mandatorily redeemable financial liability | (124.2 | ) | (76.6 | ) | |||
Other | 2.3 | (0.3 | ) | ||||
Cash required by financing activities | (403.0 | ) | (1,056.1 | ) | |||
Effect of changes in foreign exchange rates on cash and cash equivalents | (78.2 | ) | 69.5 | ||||
Increase (decrease) in cash and cash equivalents | (1,184.1 | ) | 626.8 | ||||
Cash and cash equivalents, beginning of period | 6,737.4 | 6,269.3 | |||||
Cash and cash equivalents, end of period | $ | 5,553.3 | $ | 6,896.1 |
• | On January 16, 2017, TechnipFMC was created by the business combination of Technip S.A. (Technip) and FMC Technologies, Inc. (FMC Technologies). |
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 was reported in Subsea and the remainder in Surface Technologies. |
Three Months Ended | |||||||||||||||||||||||||||
September 30, 2018 | |||||||||||||||||||||||||||
Net income attributable to TechnipFMC plc | Net loss (income) 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 | $ | 136.9 | $ | 2.7 | $ | 66.7 | $ | (106.0 | ) | $ | 306.9 | $ | 142.0 | $ | 448.9 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 0.3 | — | 1.3 | — | 1.6 | — | 1.6 | ||||||||||||||||||||
Restructuring and other severance charges | 4.7 | — | 3.4 | — | 8.1 | — | 8.1 | ||||||||||||||||||||
Business combination transaction and integration costs | 3.3 | — | 3.0 | — | 6.3 | — | 6.3 | ||||||||||||||||||||
Gain on divestitures | (21.1 | ) | — | (10.5 | ) | — | (31.6 | ) | — | (31.6 | ) | ||||||||||||||||
Purchase price accounting adjustment | 15.7 | — | 4.8 | — | 20.5 | (23.3 | ) | (2.8 | ) | ||||||||||||||||||
Adjusted financial measures | $ | 139.8 | $ | 2.7 | $ | 68.7 | $ | (106.0 | ) | $ | 311.8 | $ | 118.7 | $ | 430.5 |
Three Months Ended | |||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
Net income attributable to TechnipFMC plc | Net loss (income) 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 | ||||||||||||||||||||
Purchase price accounting adjustment | 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 |
Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2018 | |||||||||||||||||||||||||||
Net income attributable to TechnipFMC plc | Net loss (income) 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 | $ | 337.7 | $ | 2.0 | $ | 180.7 | $ | (244.3 | ) | $ | 760.7 | $ | 412.5 | $ | 1,173.2 | ||||||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 9.4 | — | 4.7 | — | 14.1 | — | 14.1 | ||||||||||||||||||||
Restructuring and other severance charges | 12.3 | — | 6.2 | — | 18.5 | — | 18.5 | ||||||||||||||||||||
Business combination transaction and integration costs | 13.9 | — | 7.0 | — | 20.9 | — | 20.9 | ||||||||||||||||||||
Gain on divestitures | (21.1 | ) | — | (10.5 | ) | — | (31.6 | ) | — | (31.6 | ) | ||||||||||||||||
Purchase price accounting adjustment | 50.9 | — | 15.6 | — | 66.5 | (67.3 | ) | (0.8 | ) | ||||||||||||||||||
Adjusted financial measures | $ | 403.1 | $ | 2.0 | $ | 203.7 | $ | (244.3 | ) | $ | 849.1 | $ | 345.2 | $ | 1,194.3 |
Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
Net income attributable to TechnipFMC plc | Net loss (income) 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 adjustment | 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 |
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(after-tax) | |||||||||||||||
Net income (loss) attributable to TechnipFMC plc, as reported | $ | 137 | $ | 121 | $ | 338 | $ | 267 | |||||||
Charges and (credits): | |||||||||||||||
Impairment and other charges (1) | — | 5 | 9 | 6 | |||||||||||
Restructuring and other severance charges (2) | 5 | 31 | 12 | 29 | |||||||||||
Business combination transaction and integration costs (3) | 3 | 3 | 14 | 53 | |||||||||||
Gain on divestitures (4) | (21 | ) | — | (21 | ) | — | |||||||||
Change in accounting estimate (5) | — | — | — | 16 | |||||||||||
Purchase price accounting adjustments (6) | 16 | 24 | 51 | 142 | |||||||||||
Total | 3 | 63 | 65 | 246 | |||||||||||
Adjusted net income attributable to TechnipFMC plc | $ | 140 | $ | 184 | $ | 403 | $ | 513 | |||||||
Earnings (loss) per diluted EPS attributable to TechnipFMC plc, as reported | $ | 0.30 | $ | 0.26 | $ | 0.73 | $ | 0.57 | |||||||
Adjusted diluted EPS attributable to TechnipFMC plc | $ | 0.31 | $ | 0.39 | $ | 0.87 | $ | 1.10 |
(1) | Tax effect of $1 million and $3 million during the three months ended September 30, 2018 and 2017, respectively, and $5 million and $4 million during the nine months ended September 30, 2018 and 2017, respectively. |
(2) | Tax effect of $3 million and $20 million during the three months ended September 30, 2018 and 2017, respectively, and $6 million and $19 million during the nine months ended September 30, 2018 and 2017, respectively. |
(3) | Tax effect of $3 million and $7 million during the three months ended September 30, 2018 and 2017, respectively, and $7 million and $34 million during the nine months ended September 30, 2018 and 2017, respectively. |
(4) | Tax effect of $(11) million and nil during the three months ended September 30, 2018 and 2017, respectively, and $(11) million and nil during the nine months ended September 30, 2018 and 2017, respectively. |
(5) | Tax effect of nil and nil during the three months ended September 30, 2018 and 2017, respectively, and nil and $6 million during the nine months ended September 30, 2018 and 2017, respectively. |
(6) | Tax effect of $5 million and $9 million during the three months ended September 30, 2018 and 2017, respectively, and $16 million and $52 million during the nine months ended September 30, 2018 and 2017, respectively. |
Three Months Ended | |||||||||||||||||||
September 30, 2018 | |||||||||||||||||||
Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 1,209.1 | $ | 1,532.5 | $ | 402.2 | $ | — | $ | 3,143.8 | |||||||||
Operating profit, as reported (pre-tax) | $ | 79.7 | $ | 243.4 | $ | 51.9 | $ | (68.1 | ) | $ | 306.9 | ||||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 1.4 | — | 0.2 | — | 1.6 | ||||||||||||||
Restructuring and other severance charges | 3.6 | (0.2 | ) | 1.1 | 3.6 | 8.1 | |||||||||||||
Business combination transaction and integration costs | — | — | — | 6.3 | 6.3 | ||||||||||||||
Gain on divestitures | (3.3 | ) | (28.3 | ) | — | — | (31.6 | ) | |||||||||||
Purchase price accounting adjustments - non-amortization related | (3.5 | ) | — | 0.9 | (0.2 | ) | (2.8 | ) | |||||||||||
Purchase price accounting adjustments - amortization related | 23.4 | — | (0.1 | ) | — | 23.3 | |||||||||||||
Subtotal | 21.6 | (28.5 | ) | 2.1 | 9.7 | 4.9 | |||||||||||||
Adjusted Operating profit | 101.3 | 214.9 | 54.0 | (58.4 | ) | 311.8 | |||||||||||||
Adjusted Depreciation and amortization | 87.2 | 12.4 | 18.5 | 0.6 | 118.7 | ||||||||||||||
Adjusted EBITDA | $ | 188.5 | $ | 227.3 | $ | 72.5 | $ | (57.8 | ) | $ | 430.5 | ||||||||
Operating profit margin, as reported | 6.6 | % | 15.9 | % | 12.9 | % | 9.8 | % | |||||||||||
Adjusted Operating profit margin | 8.4 | % | 14.0 | % | 13.4 | % | 9.9 | % | |||||||||||
Adjusted EBITDA margin | 15.6 | % | 14.8 | % | 18.0 | % | 13.7 | % |
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 | ||||||||||||
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 | % |
Nine Months Ended | |||||||||||||||||||
September 30, 2018 | |||||||||||||||||||
Subsea | Onshore/Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 3,606.7 | $ | 4,448.3 | $ | 1,174.9 | $ | — | $ | 9,229.9 | |||||||||
Operating profit, as reported (pre-tax) | $ | 210.0 | $ | 617.6 | $ | 134.0 | $ | (200.9 | ) | $ | 760.7 | ||||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 8.6 | — | 1.6 | 3.9 | 14.1 | ||||||||||||||
Restructuring and other severance charges | 10.5 | (5.8 | ) | 6.4 | 7.4 | 18.5 | |||||||||||||
Business combination transaction and integration costs | — | — | — | 20.9 | 20.9 | ||||||||||||||
Gain on divestitures | (3.3 | ) | (28.3 | ) | — | — | (31.6 | ) | |||||||||||
Purchase price accounting adjustments - non-amortization related | (6.1 | ) | — | 5.7 | (0.4 | ) | (0.8 | ) | |||||||||||
Purchase price accounting adjustments - amortization related | 67.7 | — | (0.4 | ) | — | 67.3 | |||||||||||||
Subtotal | 77.4 | (34.1 | ) | 13.3 | 31.8 | 88.4 | |||||||||||||
Adjusted Operating profit | 287.4 | 583.5 | 147.3 | (169.1 | ) | 849.1 | |||||||||||||
Adjusted Depreciation and amortization | 264.3 | 29.7 | 48.1 | 3.1 | 345.2 | ||||||||||||||
Adjusted EBITDA | $ | 551.7 | $ | 613.2 | $ | 195.4 | $ | (166.0 | ) | $ | 1,194.3 | ||||||||
Operating profit margin, as reported | 5.8 | % | 13.9 | % | 11.4 | % | 8.2 | % | |||||||||||
Adjusted Operating profit margin | 8.0 | % | 13.1 | % | 12.5 | % | 9.2 | % | |||||||||||
Adjusted EBITDA margin | 15.3 | % | 13.8 | % | 16.6 | % | 12.9 | % |
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 | % |
September 30, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 5,553.3 | $ | 6,737.4 | |||
Short-term debt and current portion of long-term debt | (78.4 | ) | (77.1 | ) | |||
Long-term debt, less current portion | (4,017.1 | ) | (3,777.9 | ) | |||
Net cash | $ | 1,457.8 | $ | 2,882.4 |