Date of Report (Date of earliest event reported):
|
July 28, 2011
|
Delaware
___________________
(State or other
jurisdiction of
incorporation)
|
1-13884
_________________
(Commission
File Number)
|
76-0451843
___________________
(I.R.S. Employer
Identification No.)
|
1333 West Loop South, Suite 1700,
Houston, Texas
________________________________________
|
77027
_______________
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(713) 513-3300
|
Item 2.02
|
Results of Operations and Financial Condition
|
Item 9.01
|
Financial Statements and Exhibits.
|
Exhibit
Number
|
Exhibit Title or Description
|
|
Exhibit 99.1
|
Press Release of Cameron International Corporation, dated July 28, 2011 – Cameron Second Quarter Earnings Per Share $0.66, Excluding Charges of $0.07 Per Share
|
CAMERON INTERNATIONAL CORPORATION
|
|
By: /s/ Charles M. Sledge
|
|
Charles M. Sledge
|
|
Senior Vice President and Chief Financial Officer
|
Exhibit
Number
|
Exhibit Title or Description
|
|
Exhibit 99.1
|
Press Release of Cameron International Corporation, dated July 28, 2011 – Cameron Second Quarter Earnings Per Share $0.66, Excluding Charges of $0.07 Per Share
|
·
|
Earnings total $0.59 per share, including charges, versus $0.52, including charges, in second quarter of 2010
|
·
|
Orders $2.4 billion, up $1.0 billion from a year ago, backlog grows to $5.5 billion
|
·
|
Full-year 2011 earnings guidance raised, new range between $2.55 to $2.65 per share
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues:
|
||||||||||||||||
Drilling & Production Systems(1)
|
$ | 1,002.7 | $ | 836.4 | $ | 1,868.3 | $ | 1,656.1 | ||||||||
Valves & Measurement
|
426.5 | 325.3 | 766.4 | 624.4 | ||||||||||||
Process & Compression Systems(1)
|
311.9 | 291.0 | 607.6 | 518.9 | ||||||||||||
Total revenues
|
1,741.1 | 1,452.7 | 3,242.3 | 2,799.4 | ||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
1,213.4 | 984.7 | 2,271.2 | 1,898.8 | ||||||||||||
Selling and administrative expenses
|
250.5 | 205.0 | 480.3 | 401.7 | ||||||||||||
Depreciation and amortization
|
47.6 | 52.9 | 92.4 | 101.0 | ||||||||||||
Interest, net
|
22.1 | 19.4 | 42.2 | 36.4 | ||||||||||||
Other costs
|
20.1 | 18.4 | 29.0 | 28.7 | ||||||||||||
Total costs and expenses
|
1,553.7 | 1,280.4 | 2,915.1 | 2,466.6 | ||||||||||||
Income before income taxes
|
187.4 | 172.3 | 327.2 | 332.8 | ||||||||||||
Income tax provision
|
(39.4 | ) | (43.1 | ) | (69.6 | ) | (83.2 | ) | ||||||||
Net income
|
$ | 148.0 | $ | 129.2 | $ | 257.6 | $ | 249.6 | ||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$ | 0.60 | $ | 0.53 | $ | 1.05 | $ | 1.02 | ||||||||
Diluted
|
$ | 0.59 | $ | 0.52 | $ | 1.03 | $ | 1.01 | ||||||||
Shares used in computing earnings per common share:
|
||||||||||||||||
Basic
|
245.0 | 242.9 | 244.8 | 243.6 | ||||||||||||
Diluted
|
249.9 | 246.4 | 251.1 | 247.7 | ||||||||||||
EBITDA:
|
||||||||||||||||
Drilling & Production Systems(1)
|
$ | 187.3 | $ | 168.1 | $ | 327.8 | $ | 347.1 | ||||||||
Valves & Measurement
|
85.6 | 56.2 | 150.8 | 115.4 | ||||||||||||
Process & Compression Systems (1)
|
43.3 | 56.1 | 82.1 | 84.3 | ||||||||||||
Corporate and other(2)
|
(59.1 | ) | (35.8 | ) | (98.9 | ) | (76.6 | ) | ||||||||
Total
|
$ | 257.1 | $ | 244.6 | $ | 461.8 | $ | 470.2 |
(1)
|
Prior period segment data has been retrospectively revised to reflect the change in segments during the third quarter of 2010.
|
(2)
|
Corporate EBITDA amounts include $20.1 million and $29.0 million of other costs for the three- and six-month periods ended June 30, 2011; and $18.4 million and $28.7 million for the three- and six-month periods ended June 30, 2010.
|
|
Cameron
|
|
Consolidated Condensed Balance Sheets
|
|
($ millions)
|
June 30,
2011
|
December 31,
2010
|
|||||||
(unaudited) | ||||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$ | 2,043.1 | $ | 1,832.5 | ||||
Receivables, net
|
1,287.8 | 1,056.1 | ||||||
Inventories, net
|
2,108.0 | 1,779.3 | ||||||
Other
|
268.5 | 265.0 | ||||||
Total current assets
|
5,707.4 | 4,932.9 | ||||||
Plant and equipment, net
|
1,342.4 | 1,247.8 | ||||||
Goodwill
|
1,531.3 | 1,475.8 | ||||||
Other assets
|
345.9 | 348.6 | ||||||
Total Assets
|
$ | 8,927.0 | $ | 8,005.1 | ||||
Liabilities and Stockholders’ Equity:
|
||||||||
Current portion of long-term debt
|
$ | 431.0 | $ | 519.9 | ||||
Accounts payable and accrued liabilities
|
1,928.4 | 2,016.0 | ||||||
Accrued income taxes
|
23.8 | 38.0 | ||||||
Total current liabilities
|
2,383.2 | 2,573.9 | ||||||
Long-term debt
|
1,523.6 | 772.9 | ||||||
Deferred income taxes
|
85.5 | 95.7 | ||||||
Other long-term liabilities
|
193.2 | 170.2 | ||||||
Total liabilities
|
4,185.5 | 3,612.7 | ||||||
Stockholders’ Equity:
|
||||||||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at June 30, 2011 and December 31, 2010
|
2.6 | 2.6 | ||||||
Capital in excess of par value
|
2,215.2 | 2,259.3 | ||||||
Retained earnings
|
3,105.9 | 2,848.3 | ||||||
Accumulated other elements of comprehensive income (loss)
|
77.9 | (27.1 | ) | |||||
Less: Treasury stock, 18,045,968 shares at June 30, 2011 (19,197,642 shares at December 31, 2010)
|
(660.1 | ) | (690.7 | ) | ||||
Total stockholders’ equity
|
4,741.5 | 4,392.4 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 8,927.0 | $ | 8,005.1 |
|
Cameron
|
|
Unaudited Consolidated Condensed Statements of Cash Flows
|
|
($ millions)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
148.0
|
129.2
|
257.6
|
249.6
|
||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
|
||||||||||||||||
Depreciation
|
37.6
|
37.6
|
72.2
|
71.4
|
||||||||||||
Amortization
|
10.0
|
15.3
|
20.2
|
29.6
|
||||||||||||
Non-cash stock compensation expense
|
9.4
|
6.4
|
17.5
|
18.5
|
||||||||||||
Deferred income taxes and tax benefit of employee stock compensation plan transactions
|
(31.8
|
)
|
12.9
|
(13.0
|
)
|
7.5
|
||||||||||
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
|
||||||||||||||||
Receivables
|
(169.5
|
)
|
(39.8
|
)
|
(201.2
|
)
|
20.1
|
|||||||||
Inventories
|
(111.5
|
)
|
(21.9
|
)
|
(285.0
|
)
|
(65.9
|
)
|
||||||||
Accounts payable and accrued liabilities
|
115.9
|
(139.8
|
)
|
(133.4
|
)
|
(367.5
|
)
|
|||||||||
Other assets and liabilities, net
|
93.3
|
(39.6
|
)
|
39.8
|
(118.7
|
)
|
||||||||||
Net cash provided by (used for) operating activities
|
101.4
|
(39.7
|
)
|
(225.3
|
)
|
(155.4
|
)
|
|||||||||
Cash flows from investing activities:
|
||||||||||||||||
Capital expenditures
|
(72.4
|
)
|
(38.2
|
)
|
(134.3
|
)
|
(68.1
|
)
|
||||||||
Acquisitions, net of cash acquired
|
(14.9
|
)
|
(13.0
|
)
|
(42.5
|
)
|
(40.9
|
)
|
||||||||
Proceeds from sale of plant and equipment
|
3.2
|
4.7
|
9.9
|
7.6
|
||||||||||||
Net cash used for investing activities
|
(84.1
|
)
|
(46.5
|
)
|
(166.9
|
)
|
(101.4
|
)
|
||||||||
Cash flows from financing activities:
|
||||||||||||||||
Short-term loan borrowings (repayments), net
|
33.5
|
(2.1
|
)
|
31.5
|
(18.7
|
)
|
||||||||||
Issuance of senior debt
|
747.8
|
–
|
747.8
|
–
|
||||||||||||
Debt issuance costs
|
(4.7
|
)
|
–
|
(4.7
|
)
|
–
|
||||||||||
Redemption of convertible debentures
|
(181.2
|
)
|
–
|
(181.2
|
)
|
–
|
||||||||||
Premium for purchased call options
|
(21.9
|
)
|
–
|
(21.9
|
)
|
–
|
||||||||||
Purchase of treasury stock
|
–
|
(84.1
|
)
|
–
|
(123.9
|
)
|
||||||||||
Proceeds from stock option exercises, net of tax payments from stock compensation
plan transactions
|
0.9
|
(5.7
|
) |
16.6
|
(12.2
|
)
|
||||||||||
Excess tax benefits from employee stock compensation plan transactions
|
0.1
|
1.5
|
4.8
|
5.4
|
||||||||||||
Principal payments on capital leases
|
(2.0
|
)
|
(1.7
|
)
|
(3.8
|
)
|
(3.3
|
)
|
||||||||
Net cash provided by (used for) financing activities
|
572.5
|
(92.1
|
)
|
589.1
|
(152.7
|
)
|
||||||||||
Effect of translation on cash
|
3.7
|
(12.2
|
)
|
13.7
|
(23.0
|
)
|
||||||||||
Increase (decrease) in cash and cash equivalents
|
593.5
|
(190.5
|
)
|
210.6
|
(432.5
|
)
|
||||||||||
Cash and cash equivalents, beginning of period
|
1,449.6
|
1,619.0
|
1,832.5
|
1,861.0
|
||||||||||||
Cash and cash equivalents, end of period
|
2,043.1
|
1,428.5
|
2,043.1
|
1,428.5
|
|
Cameron
|
|
Orders and Backlog
($ millions)
|
|
Orders
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Drilling & Production Systems(1)
|
$ | 1,442.7 | $ | 782.6 | $ | 2,261.0 | $ | 1,316.5 | ||||||||
Valves & Measurement
|
526.5 | 339.1 | 953.9 | 740.2 | ||||||||||||
Process & Compression Systems(1)
|
418.1 | 267.4 | 694.8 | 543.3 | ||||||||||||
Total
|
$ | 2,387.3 | $ | 1,389.1 | $ | 3,909.7 | $ | 2,600.0 |
|
Backlog
|
June 30,
2011
|
December 31,
2010
|
June 30,
2010
|
||||||||||
Drilling & Production Systems(1)
|
$ | 3,628.3 | $ | 3,195.9 | $ | 3,583.8 | ||||||
Valves & Measurement
|
1,016.2 | 833.8 | 630.8 | |||||||||
Process & Compression Systems(1)
|
875.1 | 787.4 | 707.0 | |||||||||
Total
|
$ | 5,519.6 | $ | 4,817.1 | $ | 4,921.6 |
|
Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions)
|
Three Months Ended June 30, 2011
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 161.4 | $ | 75.5 | $ | 34.0 | $ | (83.5 | ) (1) | $ | 187.4 | |||||||||
Depreciation & amortization
|
25.9 | 10.1 | 9.3 | 2.3 | 47.6 | |||||||||||||||
Interest, net
|
– | – | – | 22.1 | 22.1 | |||||||||||||||
EBITDA
|
$ | 187.3 | $ | 85.6 | $ | 43.3 | $ | (59.1 | ) (1) | $ | 257.1 |
(1)
|
Corporate loss before income taxes and EBITDA amounts include $20.1 million of other costs.
|
Three Months Ended June 30, 2010
|
||||||||||||||||||||
Drilling &
Production
Systems(2)
|
Valves &
Measurement
|
Process &
Compression
Systems(2)
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 145.4 | $ | 45.3 | $ | 39.5 | $ | (57.9 | ) (3) | $ | 172.3 | |||||||||
Depreciation & amortization
|
22.7 | 10.9 | 16.6 | 2.7 | 52.9 | |||||||||||||||
Interest, net
|
– | – | – | 19.4 | 19.4 | |||||||||||||||
EBITDA
|
$ | 168.1 | $ | 56.2 | $ | 56.1 | $ | (35.8 | ) (3) | $ | 244.6 |
(2)
|
Prior period segment data has been retrospectively revised to reflect the change in segments during the third quarter of 2010.
|
(3)
|
Corporate loss before income taxes and EBITDA amounts include $18.4 million of other costs.
|
|
Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions)
|
Six Months Ended June 30, 2011
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 277.6 | $ | 130.7 | $ | 64.5 | $ | (145.6 | ) (1) | $ | 327.2 | |||||||||
Depreciation & amortization
|
50.2 | 20.1 | 17.6 | 4.5 | 92.4 | |||||||||||||||
Interest, net
|
– | – | – | 42.2 | 42.2 | |||||||||||||||
EBITDA
|
$ | 327.8 | $ | 150.8 | $ | 82.1 | $ | (98.9 | ) (1) | $ | 461.8 |
(1)
|
Corporate loss before income taxes and EBITDA amounts include $29.0 million of other costs.
|
Six Months Ended June 30, 2010
|
||||||||||||||||||||
Drilling &
Production
Systems(2)
|
Valves &
Measurement
|
Process &
Compression
Systems(2)
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 302.0 | $ | 94.3 | $ | 54.9 | $ | (118.4 | ) (3) | $ | 332.8 | |||||||||
Depreciation & amortization
|
45.1 | 21.1 | 29.4 | 5.4 | 101.0 | |||||||||||||||
Interest, net
|
– | – | – | 36.4 | 36.4 | |||||||||||||||
EBITDA
|
$ | 347.1 | $ | 115.4 | $ | 84.3 | $ | (76.6 | ) (3) | $ | 470.2 |
(2)
|
Prior period segment data has been retrospectively revised to reflect the change in segments during the third quarter of 2010.
|
(3)
|
Corporate loss before income taxes and EBITDA amounts include $28.7 million of other costs.
|