Delaware | 001-11442 | 34-1712937 | ||
(State of other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
3055 Torrington Drive, Ball Ground, Georgia | 30107 | |||
(Address of principal executive offices) | (ZIP Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Chart Industries, Inc. | |
Date: October 18, 2018 | |
By: /s/ Jillian C. Evanko Jillian C. Evanko President, Chief Executive Officer and Chief Financial Officer | |
• | Realigned segmentation to support the announced acquisition of VRV, s.p.a. and its subsidiaries (collectively “VRV”), and divestiture of CAIRE Medical, the oxygen-related products from within the former BioMedical segment. |
• | Orders of $264 million grew 21% (3% organically) over the third quarter of 2017 on a continuing operations basis driven by a 28% increase in orders in D&S Eastern Hemisphere, reflecting strength in trailers and standard tanks in the region. |
• | Sales of $272 million grew 34% (16%) organically over the third quarter of 2017, on a continuing operations basis. |
• | Reported EPS from continuing operations of $0.65 excludes $0.02 of reported EPS from discontinued operations. Adjusted EPS from continuing operations of $0.74 reflects continued margin expansion execution and early 80/20 wins. |
• | Increased full year adjusted EPS guidance range to $1.90 to $2.00 on a continuing operations basis. |
• | First look at 2019 guidance of revenue of $1.24 to $1.30 billion (16% to 18% growth or 6 to 7% organic growth) and adjusted EPS of $2.40 to $2.75 (assuming closure of VRV and CAIRE deals by the end of the fourth quarter of 2018, and no large LNG project revenue). |
• | Prior 2018 guidance (included CAIRE for full year 2018) |
◦ | Sales guidance was expected to be in the range of $1.20 billion to $1.25 billion. |
◦ | Full year adjusted earnings per diluted share (non-GAAP) was expected to be in the range of $1.85 to $2.05 per share, on approximately 32.0 million weighted average shares outstanding. This excludes any restructuring costs and transaction-related costs, and assumed continued ownership of all assets for the entire calendar year, and as such was a non-GAAP measure. |
◦ | Effective tax rate was estimated to be approximately 27% for the full year. |
◦ | Capital expenditures were expected to be $35 million to $45 million. |
• | Current 2018 guidance excluding CAIRE (on a continuing operations basis for the full year). This does not include any VRV information in 2018 and normalizes for the entire year for CAIRE. |
◦ | Sales guidance is expected to be in the range of $1.06B to $1.10B up from $1.04B to $1.09B (excluding full year CAIRE revenue in both instances). |
◦ | Full year adjusted earnings per diluted share (non-GAAP) is expected to be in the range of $1.90 to $2.00 per share up from $1.64 to $1.84 per share, on approximately 32.0 million weighted average shares outstanding. This excludes any restructuring costs and transaction-related costs and excludes full year CAIRE adjusted EPS contribution, in both instances. |
◦ | Full year capital expenditures are expected to be approximately $40 million. |
◦ | Effective tax rate is anticipated to be 24% for the fourth quarter of 2018. |
Jillian Evanko |
Chief Executive Officer and Chief Financial Officer |
630-418-9403 |
jillian.evanko@chartindustries.com |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2018 | September 30, 2017 | June 30, 2018 | September 30, 2018 | September 30, 2017 | |||||||||||||||
Sales (1) | $ | 272.2 | $ | 202.7 | $ | 277.9 | $ | 794.2 | $ | 573.5 | |||||||||
Cost of sales | 189.9 | 144.8 | 205.1 | 572.2 | 415.0 | ||||||||||||||
Gross profit | 82.3 | 57.9 | 72.8 | 222.0 | 158.5 | ||||||||||||||
Selling, general, and administrative expenses | 45.8 | 48.1 | 48.1 | 140.5 | 133.9 | ||||||||||||||
Amortization expense | 5.0 | 2.6 | 5.1 | 15.7 | 7.0 | ||||||||||||||
Operating expenses | 50.8 | 50.7 | 53.2 | 156.2 | 140.9 | ||||||||||||||
Operating income (1) (2) (3) (4) (5) (6) | 31.5 | 7.2 | 19.6 | 65.8 | 17.6 | ||||||||||||||
Other expenses: | |||||||||||||||||||
Interest expense, net | 5.3 | 4.8 | 6.2 | 17.9 | 13.0 | ||||||||||||||
Financing costs amortization | 0.3 | 0.3 | 0.4 | 1.0 | 1.0 | ||||||||||||||
Foreign currency (gain) loss and other | (0.3 | ) | 1.4 | (1.6 | ) | (0.2 | ) | 3.1 | |||||||||||
Other expenses, net | 5.3 | 6.5 | 5.0 | 18.7 | 17.1 | ||||||||||||||
Income from continuing operations before income taxes | 26.2 | 0.7 | 14.6 | 47.1 | 0.5 | ||||||||||||||
Income tax expense | 4.2 | 0.7 | 3.9 | 9.7 | 0.6 | ||||||||||||||
Net income (loss) from continuing operations | 22.0 | — | 10.7 | 37.4 | (0.1 | ) | |||||||||||||
Income from discontinued operations, net of tax | 0.7 | 2.1 | 2.4 | 4.7 | 2.6 | ||||||||||||||
Net Income | 22.7 | 2.1 | 13.1 | 42.1 | 2.5 | ||||||||||||||
Less: Income attributable to noncontrolling interests of continuing operations, net of taxes | 0.5 | 0.6 | 0.8 | 1.8 | 1.1 | ||||||||||||||
Net income attributable to Chart Industries, Inc. | $ | 22.2 | $ | 1.5 | $ | 12.3 | $ | 40.3 | $ | 1.4 | |||||||||
Net income (loss) attributable to Chart Industries, Inc. | |||||||||||||||||||
Income (loss) from continuing operations | $ | 21.5 | $ | (0.6 | ) | $ | 9.9 | $ | 35.6 | $ | (1.2 | ) | |||||||
Income from discontinued operations, net of tax | 0.7 | 2.1 | 2.4 | 4.7 | 2.6 | ||||||||||||||
Net income attributable to Chart Industries, Inc. | $ | 22.2 | $ | 1.5 | $ | 12.3 | $ | 40.3 | $ | 1.4 | |||||||||
Basic earnings (loss) per common share attributable to Chart Industries, Inc. | |||||||||||||||||||
Income (loss) from continuing operations | $ | 0.70 | $ | (0.02 | ) | $ | 0.32 | $ | 1.15 | $ | (0.04 | ) | |||||||
Income from discontinued operations | 0.02 | 0.07 | 0.08 | 0.15 | 0.08 | ||||||||||||||
Net income attributable to Chart Industries, Inc. | $ | 0.72 | $ | 0.05 | $ | 0.40 | $ | 1.30 | $ | 0.04 | |||||||||
Diluted earnings (loss) per common share attributable to Chart Industries, Inc. | |||||||||||||||||||
Income (loss) from continuing operations | $ | 0.65 | $ | (0.02 | ) | $ | 0.31 | $ | 1.11 | $ | (0.04 | ) | |||||||
Income from discontinued operations | 0.02 | 0.07 | 0.07 | 0.14 | 0.08 | ||||||||||||||
Net income attributable to Chart Industries, Inc. | $ | 0.67 | $ | 0.05 | $ | 0.38 | $ | 1.25 | $ | 0.04 | |||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||||
Basic | 31.03 | 30.76 | 30.95 | 30.97 | 30.73 | ||||||||||||||
Diluted (7) | 32.95 | 31.31 | 32.08 | 32.14 | 31.29 |
(1) | Includes sales and operating income for Hudson, included in the E&C segment results since the acquisition date, September 20, 2017 as follows: |
• | Sales were $44.1 and $6.1 for the three months ended September 30, 2018 and 2017, respectively and $47.5 for the three months ended June 30, 2018. |
• | Sales were $134.9 and $6.1 for the nine months ended September 30, 2018 and 2017, respectively. |
• | Operating income was $4.3 and $1.2 for the three months ended September 30, 2018 and 2017, respectively, and $6.1 for the three months ended June 30, 2018. |
• | Operating income was $14.6 and $1.2 for the nine months ended September 30, 2018 and 2017, respectively. |
(2) | Includes depreciation expense of: |
• | $6.9, $6.5, and $7.0 for the three months ended September 30, 2018, September 30, 2017, and June 30, 2018, respectively, and |
• | $21.1 and $18.2 for the nine months ended September 30, 2018 and 2017, respectively. |
(3) | Includes restructuring costs of: |
• | $2.0, $2.3, and $0.5 for the three months ended September 30, 2018, September 30, 2017, and June 30, 2018, respectively, and |
• | $3.5 and $8.5 for the nine months ended September 30, 2018 and 2017, respectively. |
(4) | Includes an expense of $3.8 recorded to cost of sales related to the estimated costs of the aluminum cryobiological tank recall for the nine months ended September 30, 2018. |
(5) | Includes transaction-related costs of: |
• | $2.0, $7.4, and $0.8 for the three months ended September 30, 2018, September 30, 2017, and June 30, 2018, respectively, and |
• | $4.1 and $8.6 for the nine months ended September 30, 2018 and 2017, respectively. |
(6) | Includes net severance costs of $0.9 related to headcount reductions associated with the strategic realignment of our segment structure, which includes $1.8 in payroll severance costs partially offset by a $0.9 credit due to related share-based compensation forfeitures for both the three and nine months ended September 30, 2018. Includes net severance costs of $1.4 related to the departure of our former CEO on June 11, 2018, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures for the nine months ended September 30, 2018. |
(7) | Includes an additional 1.07 and 0.34 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the three and nine months ended September 30, 2018, respectively. The associated hedge, which helps offset this dilution, cannot be taken into account under U.S. generally accepted accounting principles (“GAAP”). If the hedge could have been considered, it would have reduced the additional shares by 0.93 and 0.34 for the three and nine months ended September 30, 2018, respectively. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2018 | September 30, 2017 | June 30, 2018 | September 30, 2018 | September 30, 2017 | |||||||||||||||
Net Cash Provided By Operating Activities | $ | 21.2 | $ | 19.1 | $ | 22.7 | $ | 63.6 | $ | 14.3 | |||||||||
Investing Activities | |||||||||||||||||||
Acquisition of businesses, net of cash acquired | — | (422.8 | ) | — | (12.5 | ) | (446.0 | ) | |||||||||||
Capital expenditures | (8.4 | ) | (6.4 | ) | (12.2 | ) | (26.4 | ) | (21.8 | ) | |||||||||
Proceeds from sale of assets | — | 0.2 | — | — | 0.9 | ||||||||||||||
Government grants | 0.1 | 0.1 | 0.6 | 0.8 | 0.4 | ||||||||||||||
Net Cash Used In Investing Activities | (8.3 | ) | (428.9 | ) | (11.6 | ) | (38.1 | ) | (466.5 | ) | |||||||||
Financing Activities | |||||||||||||||||||
Borrowings on revolving credit facilities | 123.3 | 300.0 | 27.0 | 188.3 | 302.2 | ||||||||||||||
Repayments on revolving credit facilities | (68.5 | ) | — | (28.0 | ) | (123.3 | ) | (5.1 | ) | ||||||||||
Repurchase of convertible notes | (57.1 | ) | — | — | (57.1 | ) | — | ||||||||||||
Repayments on term loan | — | — | (3.0 | ) | (3.0 | ) | — | ||||||||||||
Payments for debt issuance costs | — | — | — | (0.2 | ) | — | |||||||||||||
Proceeds from exercise of stock options | 3.6 | 0.2 | 0.6 | 5.4 | 1.1 | ||||||||||||||
Common stock repurchases | (0.1 | ) | (0.2 | ) | (0.1 | ) | (2.4 | ) | (2.0 | ) | |||||||||
Dividend distribution to noncontrolling interest | — | — | (0.4 | ) | (0.4 | ) | — | ||||||||||||
Net Cash Provided By (Used In) Financing Activities | 1.2 | 300.0 | (3.9 | ) | 7.3 | 296.2 | |||||||||||||
DISCONTINUED OPERATIONS | |||||||||||||||||||
Cash (Used In) Provided By Operating Activities | (2.8 | ) | 1.3 | 1.0 | 1.5 | 3.2 | |||||||||||||
Cash Provided By (Used In) Investing Activities | 0.3 | (0.3 | ) | (0.3 | ) | (0.8 | ) | (1.6 | ) | ||||||||||
Cash (Used In) Provided By Discontinued Operations | (2.5 | ) | 1.0 | 0.7 | 0.7 | 1.6 | |||||||||||||
Effect of exchange rate changes on cash | (2.9 | ) | 1.3 | (7.7 | ) | (6.7 | ) | 4.9 | |||||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 8.7 | (107.5 | ) | 0.2 | 26.8 | (149.5 | ) | ||||||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period (1) | 149.5 | 240.9 | 149.3 | 131.4 | 282.9 | ||||||||||||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD (1) | $ | 158.2 | $ | 133.4 | $ | 149.5 | $ | 158.2 | $ | 133.4 |
(1) | Includes restricted cash and restricted cash equivalents as follows: |
• | $1.0 in other assets at both September 30, 2018 and June 30, 2018, |
• | $6.5 ($5.5 in other current assets and $1.0 in other assets) at March 31, 2018, and |
• | $8.7 ($7.7 in other current assets and $1.0 in other assets) at both December 31, 2017 and June 30, 2017. |
September 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 157.2 | $ | 122.6 | |||
Accounts receivable, net | 177.3 | 196.4 | |||||
Inventories, net | 188.2 | 173.7 | |||||
Other current assets | 58.4 | 74.6 | |||||
Property, plant, and equipment, net | 288.4 | 285.0 | |||||
Goodwill | 457.2 | 459.7 | |||||
Identifiable intangible assets, net | 270.3 | 286.4 | |||||
Other assets | 18.1 | 21.4 | |||||
Total assets of discontinued operations | 123.4 | 104.9 | |||||
TOTAL ASSETS | $ | 1,738.5 | $ | 1,724.7 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | $ | 281.4 | $ | 371.7 | |||
Long-term debt | 500.5 | 439.2 | |||||
Other long-term liabilities | 80.8 | 90.1 | |||||
Total liabilities of discontinued operations | 34.8 | 18.5 | |||||
Equity | 841.0 | 805.2 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 1,738.5 | $ | 1,724.7 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2018 | September 30, 2017 | June 30, 2018 | September 30, 2018 | September 30, 2017 | |||||||||||||||
Sales | |||||||||||||||||||
Energy & Chemicals (1) | $ | 98.1 | $ | 46.6 | $ | 100.8 | $ | 288.8 | $ | 126.5 | |||||||||
D&S West | 119.0 | 99.6 | 117.6 | 337.2 | 295.6 | ||||||||||||||
D&S East | 56.8 | 63.2 | 62.4 | 174.3 | 166.7 | ||||||||||||||
Intersegment eliminations | (1.7 | ) | (6.7 | ) | (2.9 | ) | (6.1 | ) | (15.3 | ) | |||||||||
Consolidated | $ | 272.2 | $ | 202.7 | $ | 277.9 | $ | 794.2 | $ | 573.5 | |||||||||
Gross Profit | |||||||||||||||||||
Energy & Chemicals | $ | 26.9 | $ | 8.6 | $ | 21.3 | $ | 67.6 | $ | 22.4 | |||||||||
D&S West | 44.7 | 37.0 | 38.2 | 119.0 | 105.3 | ||||||||||||||
D&S East | 11.2 | 13.7 | 14.1 | 37.1 | 34.4 | ||||||||||||||
Intersegment eliminations | (0.5 | ) | (1.4 | ) | (0.8 | ) | (1.7 | ) | (3.6 | ) | |||||||||
Consolidated | $ | 82.3 | $ | 57.9 | $ | 72.8 | $ | 222.0 | $ | 158.5 | |||||||||
Gross Profit Margin | |||||||||||||||||||
Energy & Chemicals | 27.4 | % | 18.5 | % | 21.1 | % | 23.4 | % | 17.7 | % | |||||||||
D&S West | 37.6 | % | 37.1 | % | 32.5 | % | 35.3 | % | 35.6 | % | |||||||||
D&S East | 19.7 | % | 21.7 | % | 22.6 | % | 21.3 | % | 20.6 | % | |||||||||
Consolidated | 30.2 | % | 28.6 | % | 26.2 | % | 28.0 | % | 27.6 | % | |||||||||
Operating Income (Loss) (2) (3) | |||||||||||||||||||
Energy & Chemicals (1) | $ | 12.1 | $ | 0.3 | $ | 5.9 | $ | 20.8 | $ | (2.4 | ) | ||||||||
D&S West | 31.9 | 23.1 | 23.6 | 77.7 | 62.3 | ||||||||||||||
D&S East | 3.3 | 5.6 | 6.6 | 13.5 | 11.8 | ||||||||||||||
Corporate (5) (6) | (15.3 | ) | (20.4 | ) | (15.7 | ) | (44.5 | ) | (50.5 | ) | |||||||||
Intersegment eliminations | (0.5 | ) | (1.4 | ) | (0.8 | ) | (1.7 | ) | (3.6 | ) | |||||||||
Consolidated | $ | 31.5 | $ | 7.2 | $ | 19.6 | $ | 65.8 | $ | 17.6 | |||||||||
Operating Margin (Loss) | |||||||||||||||||||
Energy & Chemicals | 12.3 | % | 0.6 | % | 5.9 | % | 7.2 | % | (1.9 | )% | |||||||||
D&S West | 26.8 | % | 23.2 | % | 20.1 | % | 23.0 | % | 21.1 | % | |||||||||
D&S East | 5.8 | % | 8.9 | % | 10.6 | % | 7.7 | % | 7.1 | % | |||||||||
Consolidated | 11.6 | % | 3.6 | % | 7.1 | % | 8.3 | % | 3.1 | % |
(1) | Includes sales and operating income for Hudson, included in the E&C segment results since the acquisition date, September 20, 2017 as follows: |
• | Sales were $44.1 and $6.1 for the three months ended September 30, 2018 and 2017, respectively and $47.5 for the three months ended June 30, 2018. |
• | Sales were $134.9 and $6.1 for the nine months ended September 30, 2018 and 2017, respectively. |
• | Operating income was $4.3 and $1.2 for the three months ended September 30, 2018 and 2017, respectively, and $6.1 for the three months ended June 30, 2018. |
• | Operating income was $14.6 and $1.2 for the nine months ended September 30, 2018 and 2017, respectively. |
(2) | Restructuring costs for the three months ended: |
• | September 30, 2018 were $2.0 ($0.1 – E&C, $0.1 – D&S East, and $1.8 – Corporate). |
• | September 30, 2017 were $2.3 ($0.2 – E&C, $0.2 – D&S West, $0.5 – D&S East, and $1.4 – Corporate) |
• | June 30, 2018 were $0.5 ($0.2 – E&C and $0.3 – D&S East) |
(3) | Restructuring costs for the nine months ended: |
• | September 30, 2018 were $3.5 ($0.5 – E&C, $0.6 – D&S East, and $2.4 – Corporate) |
• | September 30, 2017 were $8.5 ($2.3 – E&C, $0.9 – D&S West, $0.8 – D&S East, and $4.5 – Corporate) |
(4) | Includes an expense of $3.8 recorded to cost of sales related to the estimated costs of the aluminum cryobiological tank recall for the nine months ended September 30, 2018. |
(5) | Includes transaction-related costs of: |
• | $2.0, $7.4, and $0.8 for the three months ended September 30, 2018, September 30, 2017, and June 30, 2018, respectively, and |
• | $4.1 and $8.6 for the nine months ended September 30, 2018 and 2017, respectively. |
(6) | Includes net severance costs of $0.9 related to headcount reductions associated with the strategic realignment of our segment structure, which includes $1.8 in payroll severance costs partially offset by a $0.9 credit due to related share-based compensation forfeitures for the nine months ended September 30, 2018. Includes net severance costs of $1.4 related to the departure of our former CEO on June 11, 2018, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures for the nine months ended September 30, 2018. |
Three Months Ended | |||||||||||
September 30, 2018 | September 30, 2017 | June 30, 2018 | |||||||||
Orders | |||||||||||
Energy & Chemicals (1) | $ | 84.9 | $ | 65.9 | $ | 122.5 | |||||
D&S West | 103.3 | 92.3 | 126.9 | ||||||||
D&S East | 75.6 | 59.2 | 67.8 | ||||||||
Consolidated | $ | 263.8 | $ | 217.4 | $ | 317.2 |
As of | |||||||||||
September 30, 2018 | September 30, 2017 | June 30, 2018 | |||||||||
Backlog | |||||||||||
Energy & Chemicals (2) (3) | $ | 226.0 | $ | 234.6 | $ | 238.6 | |||||
D&S West | 130.7 | 111.0 | 147.2 | ||||||||
D&S East | 144.8 | 120.2 | 128.0 | ||||||||
Consolidated | $ | 501.5 | $ | 465.8 | $ | 513.8 |
(1) | E&C orders includes $43.1 and $92.2 in orders related to Hudson for the three months ended September 30, 2018 and June 30, 2018, respectively. Included in our second quarter of 2018 orders was a $28 million order for our Hudson Products air cooled heat exchangers on a large LNG project, as well as a $13 million order for equipment for a natural gas liquids fractionation project. These orders will ship partially in 2018 and the remainder in 2019. |
(2) | E&C backlog as of September 30, 2018 and June 30, 2018 includes $102.0 and $104.3 related to Hudson, respectively. |
(3) | Included in the E&C backlog as of September 30, 2018, September 30, 2017, and June 30, 2018 is approximately $40 million related to the previously announced Magnolia LNG order. |
Three Months Ended | |||||||||||
September 30, 2018 | September 30, 2017 | June 30, 2018 | |||||||||
Earnings (loss) per diluted share as reported (U.S. GAAP) – Continuing Operations | $ | 0.65 | $ | (0.02 | ) | $ | 0.31 | ||||
Aluminum cryobiological tank recall reserve expense (1) | — | — | 0.09 | ||||||||
Restructuring and transaction-related costs (2) | 0.07 | 0.24 | 0.04 | ||||||||
CEO departure net costs (3) | — | — | 0.03 | ||||||||
Dilution impact of convertible notes | 0.02 | — | 0.01 | ||||||||
Adjusted earnings per diluted share (non-GAAP) – Continuing Operations | $ | 0.74 | $ | 0.22 | $ | 0.48 |
Three Months Ended | |||||||||||
September 30, 2018 | September 30, 2017 | June 30, 2018 | |||||||||
Earnings per diluted share as reported (U.S. GAAP) –Discontinued Operations | $ | 0.02 | $ | 0.07 | $ | 0.07 |
Three Months Ended | |||||||||||
September 30, 2018 | September 30, 2017 | June 30, 2018 | |||||||||
Earnings per diluted share as reported (U.S. GAAP) – Consolidated | $ | 0.67 | $ | 0.05 | $ | 0.38 | |||||
Aluminum cryobiological tank recall reserve expense (1) | — | — | 0.09 | ||||||||
Restructuring and transaction-related costs (2) | 0.07 | 0.24 | 0.04 | ||||||||
CEO departure net costs (3) | — | — | 0.03 | ||||||||
Dilution impact of convertible notes | 0.02 | — | 0.01 | ||||||||
Adjusted earnings per diluted share (non-GAAP) – Consolidated | $ | 0.76 | $ | 0.29 | $ | 0.55 |
(1) | During the three months ended June 30, 2018, we recorded an expense of $3.8 to cost of sales related to the estimated costs of the aluminum cryobiological tank recall. |
(2) | During the three months ended September 30, 2018, we recorded net severance costs of $0.9 related to headcount reductions associated with the strategic realignment of our segment structure, which includes $1.8 in payroll severance costs partially offset by a $0.9 credit due to related share-based compensation forfeitures. |
(3) | During the three months ended June 30, 2018, we recorded net severance costs of $1.4 related to the departure of our former CEO on June 11, 2018, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Income (loss) from continuing operations attributable to Chart Industries, Inc., as reported (U.S. GAAP) | $ | 21.5 | $ | (0.6 | ) | $ | 35.6 | $ | (1.2 | ) | |||||
Interest accretion of convertible notes discount | 2.3 | 3.4 | 7.3 | 10.0 | |||||||||||
Employee share-based compensation expense | 0.5 | 1.4 | 3.5 | 9.1 | |||||||||||
Financing costs amortization | 0.3 | 0.3 | 1.0 | 1.0 | |||||||||||
Unrealized foreign currency transaction (gain) loss | (0.2 | ) | — | (1.0 | ) | 0.2 | |||||||||
Other non-cash operating activities | 1.3 | 1.3 | 1.3 | 1.0 | |||||||||||
Income from continuing operations attributable to Chart Industries, Inc., adjusted (non-GAAP) | $ | 26.9 | $ | 8.5 | $ | 54.2 | $ | 23.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net cash provided by operating activities from continuing operations | $ | 21.2 | $ | 19.1 | $ | 63.6 | $ | 14.3 | |||||||
Capital expenditures from continuing operations | (8.4 | ) | (6.4 | ) | (26.4 | ) | (21.8 | ) | |||||||
Free cash flow (non-GAAP) | $ | 12.8 | $ | 12.7 | $ | 37.2 | $ | (7.5 | ) |
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