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 20, 2019 |
Exhibit No. | Description |
99.1 |
TechnipFMC plc | ||
By: /s/ Maryann T. Mannen | ||
Dated: | February 20, 2019 | Name: Maryann T. Mannen |
Title: Executive Vice President and Chief Financial Officer |
• | Full-year Company orders of $14.3 billion, up 40 percent year-over-year |
• | Strong project execution drives early delivery of Yamal LNG Train 3 |
• | Non-cash after-tax asset impairment charges of $1.7 billion |
• | Full-year distributions of $681 million from dividends and share repurchase |
1) | After-tax charges and credits impacting operating results of $2,006.1 million, which included the following (Exhibit 8): |
• | Asset impairments totaling $1,688.8 million for goodwill and other fixed assets; |
• | A provision of $280 million as a probable estimate for the aggregate settlement of investigations regarding historical projects; and |
• | Restructuring charges, business combination costs, and purchase price accounting adjustments totaling $37.3 million. |
2) | Charges and credits impacting the tax provision of $214.2 million, which included the following (Exhibit 8): |
• | A tax provision for the true-up of U.S. tax reform of $11.8 million; and |
• | A tax provision for valuation allowances of $202.4 million. |
• | $38.7 million of foreign exchange losses included in corporate expense, or $0.05 per diluted share on an after-tax basis; and |
• | $108.8 million of increased liability payable to joint venture partners included in interest expense, or $0.24 per diluted share on an after-tax basis. |
Three Months Ended (In millions, except per share amounts) | December 31, 2018 | December 31, 2017 | Change |
Revenue | $3,323.0 | $3,683.0 | (9.8%) |
Net income (loss) | $(2,259.3) | $(153.9) | n/m |
Diluted earnings (loss) per share | $(5.00) | $(0.33) | n/m |
Adjusted EBITDA | $342.4 | $525.0 | (34.8%) |
Adjusted EBITDA margin | 10.3% | 14.3% | (395 bps) |
Adjusted net income (loss) | $(39.0) | $90.9 | n/m |
Adjusted diluted earnings (loss) per share | $(0.09) | $0.20 | n/m |
Inbound orders | $2,925.1 | $2,991.9 | (2.2%) |
Backlog | $14,560.0 | $12,982.8 | 12.1% |
1) | After-tax charges and credits impacting the operating results of $2,073.1 million, which included the following (Exhibit 8): |
• | Asset impairments totaling $1,698.2 million for goodwill and other fixed assets; |
• | A provision of $280 million as a probable estimate for the aggregate settlement of investigations regarding historical projects; and |
• | Restructuring charges, business combination costs, purchase price accounting adjustments, and a gain on divestitures totaling $94.9 million. |
• | A tax provision for the true-up of U.S. tax reform of $11.8 million; and |
• | A tax provision for valuation allowances of $213.8 million. |
• | $116.5 million of foreign exchange losses included in corporate expense, or $0.16 per diluted share on an after-tax basis; and |
• | $322.3 million of increased liability payable to joint venture partners included in interest expense, or $0.70 per diluted share on an after-tax basis. |
Twelve Months Ended (In millions, except per share amounts) | December 31, 2018 | December 31, 2017 | Change |
Revenue | $12,552.9 | $15,056.9 | (16.6%) |
Net income (loss) | $(1,921.6) | $113.3 | n/m |
Diluted earnings (loss) per share | $(4.20) | $0.24 | n/m |
Adjusted EBITDA | $1,536.8 | $1,983.0 | (22.5%) |
Adjusted EBITDA margin | 12.2% | 13.2% | (93 bps) |
Adjusted net income (loss) | $377.1 | $603.5 | (37.5%) |
Adjusted diluted earnings (loss) per share | $0.82 | $1.29 | (36.4%) |
Inbound orders | $14,291.0 | $10,196.3 | 40.2% |
Backlog | $14,560.0 | $12,982.8 | 12.1% |
Subsea |
Three Months Ended (In millions) | December 31, 2018 | December 31, 2017 | Change |
Revenue | $1,233.3 | $1,292.2 | (4.6%) |
Operating profit (loss) | $(1,739.5) | $67.4 | n/m |
Adjusted EBITDA | $148.5 | $244.1 | (39.2%) |
Adjusted EBITDA margin | 12.0% | 18.9% | (685 bps) |
Inbound orders | $880.6 | $1,724.8 | (48.9%) |
Backlog | $5,999.6 | $6,203.9 | (3.3%) |
• | Total Egina (Nigeria) |
• | Total Kaombo (Angola) |
Subsea Estimated Backlog Scheduling as of December 31, 2018 (In millions) | Consolidated backlog* | Non-consolidated backlog** |
2019 | $3,379.2 | $184.7 |
2020 | $1,382.1 | $135.7 |
2021 and beyond | $1,238.3 | $653.6 |
Total | $5,999.6 | $974.0 |
* Backlog does not capture all revenue potential for subsea services. | ||
** Non-consolidated backlog reflects the proportional share of backlog related to joint ventures that is not consolidated due to our minority ownership position. |
Onshore/Offshore |
Three Months Ended (In millions) | December 31, 2018 | December 31, 2017 | Change |
Revenue | $1,672.4 | $2,019.5 | (17.2%) |
Operating profit | $206.4 | $257.2 | (19.8%) |
Adjusted EBITDA | $217.2 | $294.5 | (26.2%) |
Adjusted EBITDA margin | 13.0% | 14.6% | (160 bps) |
Inbound orders | $1,609.4 | $874.2 | 84.1% |
Backlog | $8,090.5 | $6,369.1 | 27.0% |
• | Energean Karish iEPCI™ (Israel) |
• | ENI Coral South FLNG (Mozambique) |
• | Equinor Martin Linge (Norway) |
• | Neste Renewable Products Facility Expansion (Singapore) |
• | MIDOR Refinery Expansion and Modernization (Egypt) |
Onshore/Offshore Estimated Backlog Scheduling as of December 31, 2018 (In millions) | Consolidated backlog | Non-consolidated backlog* |
2019 | $5,335.1 | $676.1 |
2020 | $1,732.9 | $587.7 |
2021 and beyond | $1,022.5 | $484.7 |
Total | $8,090.5 | $1,748.5 |
* Non-consolidated backlog reflects the proportional share of backlog related to joint ventures that is not consolidated due to our minority ownership position. |
Surface Technologies |
Three Months Ended (In millions) | December 31, 2018 | December 31, 2017 | Change |
Revenue | $417.3 | $372.3 | 12.1% |
Operating profit | $38.8 | $53.3 | (27.2%) |
Adjusted EBITDA | $64.9 | $75.8 | (14.4%) |
Adjusted EBITDA margin | 15.6% | 20.4% | (481 bps) |
Inbound orders | $435.1 | $392.9 | 10.7% |
Backlog | $469.9 | $409.8 | 14.7% |
• | Chevron Frame Agreement (North America) |
• | Capital expenditures of approximately $350 million for the full year, a decrease from the previous guidance of approximately $400 million for the full year. |
2019 Guidance *Updated February 20, 2019 | ||||
Subsea | Onshore/Offshore | Surface Technologies | ||
Revenue in a range of $5.4 - 5.7 billion | Revenue in a range of $5.7 - 6.0 billion | Revenue in a range of $1.7 - 1.8 billion | ||
EBITDA margin at least 11% (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin at least 12% (excluding amortization related impact of purchase price accounting, and other charges and credits) | EBITDA margin at least 17% (excluding amortization related impact of purchase price accounting, and other charges and credits) | ||
TechnipFMC | ||||
Corporate expense, net $160 - 170 million for the full year (excluding the impact of foreign currency fluctuations) | ||||
Net interest expense $40 - 60 million for the full year (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 $350 million for the full year | ||||
Cash flow from operating activities positive for the full year | ||||
Merger integration and restructuring costs approximately $50 million for the full year | ||||
Cost synergies $450 million total savings ($220m exit run-rate 12/31/17, $400m exit run-rate 12/31/18, $450m exit run-rate 12/31/19) |
• | 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; |
• | the United Kingdom’s proposed 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; |
• | a 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; |
• | significant merger-related costs; |
• | risks related to our acquisition and divestiture activities; |
• | failure of our information technology infrastructure or any significant breach of security, including related to cyber attacks, and risks related to compliance with data security and privacy obligations; |
• | 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; |
• | 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. |
Contacts 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 Bélorgeot Senior Vice President Corporate Engagement Tel: +33 1 47 78 39 92 Email: Christophe Belorgeot Delphine Nayral Director 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 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 was reported in Subsea and the remainder in Surface Technologies. |
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 3,323.0 | $ | 3,683.0 | $ | 12,552.9 | $ | 15,056.9 | |||||||
Costs and expenses | 4,943.3 | 3,387.1 | 13,470.5 | 14,091.7 | |||||||||||
(1,620.3 | ) | 295.9 | (917.6 | ) | 965.2 | ||||||||||
Other (expense) income, net | (267.6 | ) | (52.9 | ) | (209.6 | ) | 29.7 | ||||||||
Income (loss) before net interest expense and income taxes | (1,887.9 | ) | 243.0 | (1,127.2 | ) | 994.9 | |||||||||
Net interest expense | (116.6 | ) | (74.7 | ) | (360.9 | ) | (315.2 | ) | |||||||
Income (loss) before income taxes | (2,004.5 | ) | 168.3 | (1,488.1 | ) | 679.7 | |||||||||
Provision for income taxes | 242.0 | 295.8 | 422.7 | 545.5 | |||||||||||
Net income (loss) | (2,246.5 | ) | (127.5 | ) | (1,910.8 | ) | 134.2 | ||||||||
Net loss (income) attributable to noncontrolling interests | (12.8 | ) | (26.4 | ) | (10.8 | ) | (20.9 | ) | |||||||
Net income (loss) attributable to TechnipFMC plc | $ | (2,259.3 | ) | $ | (153.9 | ) | $ | (1,921.6 | ) | $ | 113.3 | ||||
Earnings (loss) per share attributable to TechnipFMC plc: | |||||||||||||||
Basic | $ | (5.00 | ) | $ | (0.33 | ) | $ | (4.20 | ) | $ | 0.24 | ||||
Diluted | $ | (5.00 | ) | $ | (0.33 | ) | $ | (4.20 | ) | $ | 0.24 | ||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 452.0 | 466.2 | 458.0 | 466.7 | |||||||||||
Diluted | 452.0 | 466.2 | 458.0 | 468.3 | |||||||||||
Cash dividends declared per share | $ | 0.13 | $ | 0.13 | $ | 0.52 | $ | 0.13 |
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | |||||||||||||||
Subsea | $ | 1,233.3 | $ | 1,292.2 | $ | 4,840.0 | $ | 5,877.4 | |||||||
Onshore/Offshore | 1,672.4 | 2,019.5 | 6,120.7 | 7,904.5 | |||||||||||
Surface Technologies | 417.3 | 372.3 | 1,592.2 | 1,274.6 | |||||||||||
Other revenue | — | (1.0 | ) | — | 0.4 | ||||||||||
$ | 3,323.0 | $ | 3,683.0 | $ | 12,552.9 | $ | 15,056.9 | ||||||||
Income before income taxes | |||||||||||||||
Segment operating profit (loss) | |||||||||||||||
Subsea | $ | (1,739.5 | ) | $ | 67.4 | $ | (1,529.5 | ) | $ | 460.5 | |||||
Onshore/Offshore | 206.4 | 257.2 | 824.0 | 810.9 | |||||||||||
Surface Technologies | 38.8 | 53.3 | 172.8 | 82.7 | |||||||||||
Total segment operating profit (loss) | (1,494.3 | ) | 377.9 | (532.7 | ) | 1,354.1 | |||||||||
Corporate items | |||||||||||||||
Corporate expense, net (1) | (393.6 | ) | (134.9 | ) | (594.5 | ) | (359.2 | ) | |||||||
Net interest expense | (116.6 | ) | (74.7 | ) | (360.9 | ) | (315.2 | ) | |||||||
Total corporate items | (510.2 | ) | (209.6 | ) | (955.4 | ) | (674.4 | ) | |||||||
Net income (loss) before income taxes (2) | $ | (2,004.5 | ) | $ | 168.3 | $ | (1,488.1 | ) | $ | 679.7 |
(1) | Corporate expense, net primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses. |
(2) | Includes amounts attributable to noncontrolling interests. |
Three Months Ended | Year Ended | ||||||||||||||
Inbound Orders (1) | December 31, | December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Subsea | $ | 880.6 | $ | 1,724.8 | $ | 5,178.5 | $ | 5,143.6 | |||||||
Onshore/Offshore | 1,609.4 | 874.2 | 7,425.9 | 3,812.9 | |||||||||||
Surface Technologies | 435.1 | 392.9 | 1,686.6 | 1,239.8 | |||||||||||
Total inbound orders | $ | 2,925.1 | $ | 2,991.9 | $ | 14,291.0 | $ | 10,196.3 |
Order Backlog (2) | December 31, | ||||||
2018 | 2017 | ||||||
Subsea | $ | 5,999.6 | $ | 6,203.9 | |||
Onshore/Offshore | 8,090.5 | 6,369.1 | |||||
Surface Technologies | 469.9 | 409.8 | |||||
Total order backlog | $ | 14,560.0 | $ | 12,982.8 |
(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) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 5,540.0 | $ | 6,737.4 | |||
Trade receivables, net | 2,644.7 | 1,484.4 | |||||
Contract assets | 1,295.0 | 1,755.5 | |||||
Inventories, net | 1,251.2 | 987.0 | |||||
Other current assets | 1,270.1 | 2,012.8 | |||||
Total current assets | 12,001.0 | 12,977.1 | |||||
Property, plant and equipment, net | 3,259.8 | 3,871.5 | |||||
Goodwill | 7,607.6 | 8,929.8 | |||||
Intangible assets, net | 1,176.7 | 1,333.8 | |||||
Other assets | 959.2 | 1,151.5 | |||||
Total assets | $ | 25,004.3 | $ | 28,263.7 | |||
Short-term debt and current portion of long-term debt | $ | 67.4 | $ | 77.1 | |||
Accounts payable, trade | 2,600.3 | 3,958.7 | |||||
Contract liabilities | 4,260.1 | 3,314.2 | |||||
Other current liabilities | 2,426.4 | 2,479.4 | |||||
Total current liabilities | 9,354.2 | 9,829.4 | |||||
Long-term debt, less current portion | 4,124.3 | 3,777.9 | |||||
Other liabilities | 1,056.4 | 1,247.0 | |||||
Redeemable noncontrolling interest | 38.5 | — | |||||
TechnipFMC plc stockholders’ equity | 10,399.6 | 13,387.9 | |||||
Noncontrolling interests | 31.3 | 21.5 | |||||
Total liabilities and equity | $ | 25,004.3 | $ | 28,263.7 |
(Unaudited) | |||||||
Year Ended | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Cash provided (required) by operating activities | |||||||
Net income (loss) | $ | (1,910.8 | ) | $ | 134.2 | ||
Adjustments to reconcile net income (loss) to cash provided (required) by operating activities | |||||||
Depreciation | 367.8 | 370.2 | |||||
Amortization | 182.6 | 244.5 | |||||
Employee benefit plan and share-based compensation costs | 22.4 | 18.7 | |||||
Deferred income tax provision (benefit), net | 48.8 | 141.6 | |||||
Unrealized loss (gain) on derivative instruments and foreign exchange | 102.7 | (73.5 | ) | ||||
Impairments | 1,792.6 | 34.3 | |||||
Income from equity affiliates, net of dividends received | (110.7 | ) | (37.9 | ) | |||
Other | 571.8 | 4.7 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions | |||||||
Trade receivables, net and contract assets | (839.1 | ) | 286.8 | ||||
Inventories, net | (339.4 | ) | 130.9 | ||||
Accounts payable, trade | (1,248.7 | ) | (525.8 | ) | |||
Contract liabilities | 937.7 | (1,111.4 | ) | ||||
Income taxes payable (receivable), net | (190.7 | ) | (152.2 | ) | |||
Other current assets and liabilities, net | 641.2 | 646.5 | |||||
Other noncurrent assets and liabilities, net | (213.6 | ) | 99.1 | ||||
Cash provided (required) by operating activities | (185.4 | ) | 210.7 | ||||
Cash provided (required) by investing activities | |||||||
Capital expenditures | (368.1 | ) | (255.7 | ) | |||
Cash acquired in merger of FMC Technologies, Inc. and Technip S.A. | — | 1,479.2 | |||||
Acquisitions, net of cash acquired | (104.9 | ) | — | ||||
Cash divested from deconsolidation | (6.7 | ) | — | ||||
Proceeds from sale of assets | 19.5 | 14.4 | |||||
Other | — | 12.1 | |||||
Cash provided (required) by investing activities | (460.2 | ) | 1,250.0 | ||||
Cash required by financing activities | |||||||
Net decrease in short-term debt | (31.3 | ) | (106.4 | ) | |||
Net increase in commercial paper | 496.6 | 234.9 | |||||
Proceeds from issuance of long-term debt | (3.6 | ) | 25.7 | ||||
Repayments of long-term debt | — | (888.0 | ) | ||||
Payments related to taxes withheld on share-based compensation | — | (46.6 | ) | ||||
Purchase of ordinary shares | (442.6 | ) | (58.5 | ) | |||
Dividends paid | (238.1 | ) | (60.6 | ) | |||
Settlements of mandatorily redeemable financial liability | (225.8 | ) | (156.5 | ) | |||
Other | — | 1.2 | |||||
Cash required by financing activities | (444.8 | ) | (1,054.8 | ) | |||
Effect of changes in foreign exchange rates on cash and cash equivalents | (107.0 | ) | 62.2 | ||||
Increase (decrease) in cash and cash equivalents | (1,197.4 | ) | 468.1 | ||||
Cash and cash equivalents, beginning of period | 6,737.4 | 6,269.3 | |||||
Cash and cash equivalents, end of period | $ | 5,540.0 | $ | 6,737.4 |
• | 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 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 was reported in Subsea and the remainder in Surface Technologies. |
Three Months Ended | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Net income (loss) attributable to TechnipFMC plc | Net loss (income) attributable to noncontrolling interests | Provision for income taxes | Net interest expense | Income (loss) before net interest expense and income taxes (Operating profit) | Depreciation and amortization | Earnings (loss) before net interest expense, income taxes, depreciation and amortization (EBITDA) | |||||||||||||||||||||
TechnipFMC plc, as reported | $ | (2,259.3 | ) | $ | (12.8 | ) | $ | 242.0 | $ | (116.6 | ) | $ | (1,887.9 | ) | $ | 137.9 | $ | (1,750.0 | ) | ||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 1,688.8 | — | 89.7 | — | 1,778.5 | — | 1,778.5 | ||||||||||||||||||||
Restructuring and other severance charges | 11.6 | — | 8.5 | — | 20.1 | — | 20.1 | ||||||||||||||||||||
Business combination transaction and integration costs | 8.7 | — | 6.9 | — | 15.6 | — | 15.6 | ||||||||||||||||||||
Legal provision | 280.0 | — | — | — | 280.0 | — | 280.0 | ||||||||||||||||||||
Purchase price accounting adjustment | 17.0 | — | 5.2 | — | 22.2 | (24.0 | ) | (1.8 | ) | ||||||||||||||||||
Tax reform | 11.8 | — | (11.8 | ) | — | — | — | — | |||||||||||||||||||
Valuation allowance | 202.4 | — | (202.4 | ) | — | — | — | — | |||||||||||||||||||
Adjusted financial measures | $ | (39.0 | ) | $ | (12.8 | ) | $ | 138.1 | $ | (116.6 | ) | $ | 228.5 | $ | 113.9 | $ | 342.4 |
Three Months Ended | |||||||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||
Net income (loss) 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 | $ | (153.9 | ) | $ | (26.4 | ) | $ | 295.8 | $ | (74.7 | ) | $ | 243.0 | $ | 153.0 | $ | 396.0 | ||||||||||
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 | ||||||||||||||||||||
Purchase price accounting adjustment | 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 | $ | (74.7 | ) | $ | 407.1 | $ | 117.9 | $ | 525.0 |
Year Ended | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Net income (loss) attributable to TechnipFMC plc | Net loss (income) attributable to noncontrolling interests | Provision for income taxes | Net interest expense | Income (loss) before net interest expense and income taxes (Operating profit) | Depreciation and amortization | Earnings (loss) before net interest expense, income taxes, depreciation and amortization (EBITDA) | |||||||||||||||||||||
TechnipFMC plc, as reported | $ | (1,921.6 | ) | $ | (10.8 | ) | $ | 422.7 | $ | (360.9 | ) | $ | (1,127.2 | ) | $ | 550.4 | $ | (576.8 | ) | ||||||||
Charges and (credits): | |||||||||||||||||||||||||||
Impairment and other charges | 1,698.2 | — | 94.4 | — | 1,792.6 | — | 1,792.6 | ||||||||||||||||||||
Restructuring and other severance charges | 23.9 | — | 14.7 | — | 38.6 | — | 38.6 | ||||||||||||||||||||
Business combination transaction and integration costs | 22.6 | — | 13.9 | — | 36.5 | — | 36.5 | ||||||||||||||||||||
Legal provision | 280.0 | — | — | — | 280.0 | — | 280.0 | ||||||||||||||||||||
Gain on divestitures | (19.5 | ) | — | (12.1 | ) | — | (31.6 | ) | — | (31.6 | ) | ||||||||||||||||
Purchase price accounting adjustment | 67.9 | — | 20.9 | — | 88.8 | (91.3 | ) | (2.5 | ) | ||||||||||||||||||
Tax reform | 11.8 | — | (11.8 | ) | — | — | — | — | |||||||||||||||||||
Valuation allowance | 213.8 | — | (213.8 | ) | — | — | — | — | |||||||||||||||||||
Adjusted financial measures | $ | 377.1 | $ | (10.8 | ) | $ | 328.9 | $ | (360.9 | ) | $ | 1,077.7 | $ | 459.1 | $ | 1,536.8 |
Year Ended | |||||||||||||||||||||||||||
December 31, 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 | $ | 113.3 | $ | (20.9 | ) | $ | 545.5 | $ | (315.2 | ) | $ | 994.9 | $ | 614.7 | $ | 1,609.6 | |||||||||||
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 adjustment | 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 | $ | (314.9 | ) | $ | 1,518.7 | $ | 464.3 | $ | 1,983.0 |
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(after-tax) | |||||||||||||||
Net income (loss) attributable to TechnipFMC plc, as reported | $ | (2,259 | ) | $ | (154 | ) | $ | (1,922 | ) | $ | 113 | ||||
Charges and (credits): | |||||||||||||||
Impairment and other charges (1) | 1,689 | 11 | 1,698 | 17 | |||||||||||
Restructuring and other severance charges (2) | 11 | 74 | 24 | 103 | |||||||||||
Business combination transaction and integration costs (3) | 9 | 11 | 23 | 64 | |||||||||||
Legal provision (4) | 280 | — | 280 | — | |||||||||||
Gain on divestitures (5) | — | — | (20 | ) | — | ||||||||||
Change in accounting estimate (6) | — | — | — | 16 | |||||||||||
Purchase price accounting adjustments (7) | 17 | 11 | 68 | 153 | |||||||||||
Tax reform (8) | 12 | 138 | 12 | 138 | |||||||||||
Valuation allowance (9) | 202 | — | 214 | — | |||||||||||
Total | 2,220 | 245 | 2,299 | 491 | |||||||||||
Adjusted net income (loss) attributable to TechnipFMC plc | $ | (39 | ) | $ | 91 | $ | 377 | $ | 604 | ||||||
Diluted earnings (loss) per share attributable to TechnipFMC plc, as reported | $ | (5.00 | ) | $ | (0.33 | ) | $ | (4.20 | ) | $ | 0.24 | ||||
Adjusted diluted earnings (loss) per share attributable to TechnipFMC plc | $ | (0.09 | ) | $ | 0.20 | $ | 0.82 | $ | 1.29 |
(1) | Tax effect of $90 million and $7 million during the three months ended December 31, 2018 and 2017, respectively, and $94 million and $10 million during the twelve months ended December 31, 2018 and 2017, respectively. |
(2) | Tax effect of $9 million and $43 million during the three months ended December 31, 2018 and 2017, respectively, and $15 million and $61 million during the twelve months ended December 31, 2018 and 2017, respectively. |
(3) | Tax effect of $7 million and $4 million during the three months ended December 31, 2018 and 2017, respectively, and $14 million and $38 million during the twelve months ended December 31, 2018 and 2017, respectively. |
(4) | There was no tax effect during the three and twelve months ended December 31, 2018 and 2017, respectively. |
(5) | Tax effect of nil and nil during the three months ended December 31, 2018 and 2017, respectively, and $(12) million and nil during the twelve months ended December 31, 2018 and 2017, respectively. |
(6) | Tax effect of nil and nil during the three months ended December 31, 2018 and 2017, respectively, and nil and $6 million during the twelve months ended December 31, 2018 and 2017, respectively. |
(7) | Tax effect of $5 million and $4 million during the three months ended December 31, 2018 and 2017, respectively, and $21 million and $56 million during the twelve months ended December 31, 2018 and 2017, respectively. |
(8) | Tax effect of $12 million and $138 million during the three months ended and $12 million and $138 million during the twelve months ended December 31, 2018 and 2017, respectively. |
(9) | Tax effect of $202 million and nil during the three months ended and $214 million and nil during the twelve months ended December 31, 2018 and 2017, respectively. |
Three Months Ended | |||||||||||||||||||
December 31, 2018 | |||||||||||||||||||
Subsea | Onshore/ Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 1,233.3 | $ | 1,672.4 | $ | 417.3 | $ | — | $ | 3,323.0 | |||||||||
Operating profit (loss), as reported (pre-tax) | $ | (1,739.5 | ) | $ | 206.4 | $ | 38.8 | $ | (393.6 | ) | $ | (1,887.9 | ) | ||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 1,775.6 | — | 2.9 | — | 1,778.5 | ||||||||||||||
Restructuring and other severance charges | 7.2 | 2.4 | 2.9 | 7.6 | 20.1 | ||||||||||||||
Business combination transaction and integration costs | — | — | — | 15.6 | 15.6 | ||||||||||||||
Legal provision | — | — | — | 280.0 | 280.0 | ||||||||||||||
Purchase price accounting adjustments - non-amortization related | (3.3 | ) | — | 1.4 | 0.1 | (1.8 | ) | ||||||||||||
Purchase price accounting adjustments - amortization related | 23.6 | — | 0.4 | — | 24.0 | ||||||||||||||
Subtotal | 1,803.1 | 2.4 | 7.6 | 303.3 | 2,116.4 | ||||||||||||||
Adjusted Operating profit (loss) | 63.6 | 208.8 | 46.4 | (90.3 | ) | 228.5 | |||||||||||||
Adjusted Depreciation and amortization | 84.9 | 8.4 | 18.5 | 2.1 | 113.9 | ||||||||||||||
Adjusted EBITDA | $ | 148.5 | $ | 217.2 | $ | 64.9 | $ | (88.2 | ) | $ | 342.4 | ||||||||
Operating profit margin, as reported | -141.0 | % | 12.3 | % | 9.3 | % | -56.8 | % | |||||||||||
Adjusted Operating profit margin | 5.2 | % | 12.5 | % | 11.1 | % | 6.9 | % | |||||||||||
Adjusted EBITDA margin | 12.0 | % | 13.0 | % | 15.6 | % | 10.3 | % |
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 | $ | (134.9 | ) | $ | 243.0 | ||||||||
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 | ||||||||||||||
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 (loss) | 151.4 | 283.3 | 62.5 | (90.1 | ) | 407.1 | |||||||||||||
Adjusted Depreciation and amortization | 92.7 | 11.2 | 13.3 | 0.7 | 117.9 | ||||||||||||||
Adjusted EBITDA | $ | 244.1 | $ | 294.5 | $ | 75.8 | $ | (89.4 | ) | $ | 525.0 | ||||||||
Operating profit margin, as reported | 5.2 | % | 12.7 | % | 14.3 | % | 6.6 | % | |||||||||||
Adjusted Operating profit margin | 11.7 | % | 14.0 | % | 16.8 | % | 11.1 | % | |||||||||||
Adjusted EBITDA margin | 18.9 | % | 14.6 | % | 20.4 | % | 14.3 | % |
Year Ended | |||||||||||||||||||
December 31, 2018 | |||||||||||||||||||
Subsea | Onshore/ Offshore | Surface Technologies | Corporate and Other | Total | |||||||||||||||
Revenue | $ | 4,840.0 | $ | 6,120.7 | $ | 1,592.2 | $ | — | $ | 12,552.9 | |||||||||
Operating profit (loss), as reported (pre-tax) | $ | (1,529.5 | ) | $ | 824.0 | $ | 172.8 | $ | (594.5 | ) | $ | (1,127.2 | ) | ||||||
Charges and (credits): | |||||||||||||||||||
Impairment and other charges | 1,784.2 | — | 4.5 | 3.9 | 1,792.6 | ||||||||||||||
Restructuring and other severance charges | 17.7 | (3.4 | ) | 9.3 | 15.0 | 38.6 | |||||||||||||
Business combination transaction and integration costs | — | — | — | 36.5 | 36.5 | ||||||||||||||
Legal provision | — | — | — | 280.0 | 280.0 | ||||||||||||||
Gain on divestitures | (3.3 | ) | (28.3 | ) | — | — | (31.6 | ) | |||||||||||
Purchase price accounting adjustments - non-amortization related | (9.4 | ) | — | 7.1 | (0.2 | ) | (2.5 | ) | |||||||||||
Purchase price accounting adjustments - amortization related | 91.3 | — | — | — | 91.3 | ||||||||||||||
Subtotal | 1,880.5 | (31.7 | ) | 20.9 | 335.2 | 2,204.9 | |||||||||||||
Adjusted Operating profit (loss) | 351.0 | 792.3 | 193.7 | (259.3 | ) | 1,077.7 | |||||||||||||
Adjusted Depreciation and amortization | 349.2 | 38.1 | 66.6 | 5.2 | 459.1 | ||||||||||||||
Adjusted EBITDA | $ | 700.2 | $ | 830.4 | $ | 260.3 | $ | (254.1 | ) | $ | 1,536.8 | ||||||||
Operating profit margin, as reported | -31.6 | % | 13.5 | % | 10.9 | % | -9.0 | % | |||||||||||
Adjusted Operating profit margin | 7.3 | % | 12.9 | % | 12.2 | % | 8.6 | % | |||||||||||
Adjusted EBITDA margin | 14.5 | % | 13.6 | % | 16.3 | % | 12.2 | % |
Year 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 | $ | (359.2 | ) | $ | 994.9 | ||||||||
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 (loss) | 751.8 | 837.9 | 167.8 | (238.8 | ) | 1,518.7 | |||||||||||||
Adjusted Depreciation and amortization | 368.0 | 41.1 | 51.1 | 4.1 | 464.3 | ||||||||||||||
Adjusted EBITDA | $ | 1,119.8 | $ | 879.0 | $ | 218.9 | $ | (234.7 | ) | $ | 1,983.0 | ||||||||
Operating profit margin, as reported | 7.8 | % | 10.3 | % | 6.5 | % | 6.6 | % | |||||||||||
Adjusted Operating profit margin | 12.8 | % | 10.6 | % | 13.2 | % | 10.1 | % | |||||||||||
Adjusted EBITDA margin | 19.1 | % | 11.1 | % | 17.2 | % | 13.2 | % |
December 31, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 5,540.0 | $ | 6,737.4 | |||
Short-term debt and current portion of long-term debt | (67.4 | ) | (77.1 | ) | |||
Long-term debt, less current portion | (4,124.3 | ) | (3,777.9 | ) | |||
Net cash | $ | 1,348.3 | $ | 2,882.4 |
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