Date of Report (Date of earliest event reported):
|
October 27, 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 October 27, 2011 – Cameron Third Quarter Earnings Per Share $0.78, Excluding Charges
|
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 October 27, 2011 – Cameron Third Quarter Earnings Per Share $0.78, Excluding Charges
|
·
|
Earnings total $0.67 per share, including charges, versus $0.61, including charges, in third quarter of 2010
|
·
|
Orders $2.0 billion, up over $500 million from a year ago, backlog grows to $5.8 billion
|
·
|
Full year 2011 earnings guidance between $2.63 and $2.66 per share
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues:
|
||||||||||||||||
Drilling & Production Systems
|
$ | 977.2 | $ | 944.0 | $ | 2,845.5 | $ | 2,600.1 | ||||||||
Valves & Measurement
|
434.4 | 312.7 | 1,200.8 | 937.0 | ||||||||||||
Process & Compression Systems
|
274.3 | 270.4 | 881.9 | 789.4 | ||||||||||||
Total revenues
|
1,685.9 | 1,527.1 | 4,928.2 | 4,326.5 | ||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
1,136.6 | 1,048.7 | 3,407.9 | 2,947.5 | ||||||||||||
Selling and administrative expenses
|
243.4 | 210.2 | 723.6 | 611.9 | ||||||||||||
Depreciation and amortization
|
53.1 | 52.7 | 145.5 | 153.7 | ||||||||||||
Interest, net
|
20.6 | 20.0 | 62.7 | 56.4 | ||||||||||||
Other costs
|
34.2 | 10.4 | 63.2 | 39.1 | ||||||||||||
Total costs and expenses
|
1,487.9 | 1,342.0 | 4,402.9 | 3,808.6 | ||||||||||||
Income before income taxes
|
198.0 | 185.1 | 525.3 | 517.9 | ||||||||||||
Income tax provision
|
(33.5 | ) | (36.4 | ) | (103.2 | ) | (119.7 | ) | ||||||||
Net income
|
$ | 164.5 | $ | 148.7 | $ | 422.1 | $ | 398.2 | ||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$ | 0.67 | $ | 0.61 | $ | 1.72 | $ | 1.64 | ||||||||
Diluted
|
$ | 0.67 | $ | 0.61 | $ | 1.69 | $ | 1.61 | ||||||||
Shares used in computing earnings per common share:
|
||||||||||||||||
Basic
|
245.1 | 242.2 | 244.9 | 243.2 | ||||||||||||
Diluted
|
247.1 | 245.5 | 249.8 | 247.0 | ||||||||||||
EBITDA:
|
||||||||||||||||
Drilling & Production Systems
|
$ | 223.1 | $ | 185.6 | $ | 551.0 | $ | 532.7 | ||||||||
Valves & Measurement
|
91.4 | 54.0 | 242.2 | 169.4 | ||||||||||||
Process & Compression Systems
|
33.8 | 56.4 | 115.9 | 140.8 | ||||||||||||
Corporate and other(1)
|
(76.6 | ) | (38.2 | ) | (175.6 | ) | (114.9 | ) | ||||||||
Total
|
$ | 271.7 | $ | 257.8 | $ | 733.5 | $ | 728.0 |
1
|
Corporate EBITDA amounts include $34.2 and $63.2 of other costs for the three- and nine-month periods ended September 30, 2011; and $10.4 million and $39.1 million for the three- and nine-month periods ended September 30, 2010.
|
|
|
Cameron
|
|
Consolidated Condensed Balance Sheets
|
|
($ millions)
|
September 30,
2011
|
December 31,
2010
|
|||||||
(unaudited)
|
||||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$ | 1,536.5 | $ | 1,832.5 | ||||
Receivables, net
|
1,396.2 | 1,056.1 | ||||||
Inventories, net
|
2,177.7 | 1,779.3 | ||||||
Other
|
328.6 | 265.0 | ||||||
Total current assets
|
5,439.0 | 4,932.9 | ||||||
Plant and equipment, net
|
1,339.5 | 1,247.8 | ||||||
Goodwill
|
1,496.7 | 1,475.8 | ||||||
Other assets
|
351.6 | 348.6 | ||||||
Total Assets
|
$ | 8,626.8 | $ | 8,005.1 | ||||
Liabilities and Stockholders’ Equity:
|
||||||||
Current portion of long-term debt
|
$ | 10.9 | $ | 519.9 | ||||
Accounts payable and accrued liabilities
|
2,029.8 | 2,016.0 | ||||||
Accrued income taxes
|
– | 38.0 | ||||||
Total current liabilities
|
2,040.7 | 2,573.9 | ||||||
Long-term debt
|
1,576.3 | 772.9 | ||||||
Deferred income taxes
|
159.5 | 95.7 | ||||||
Other long-term liabilities
|
240.5 | 170.2 | ||||||
Total liabilities
|
4,017.0 | 3,612.7 | ||||||
Stockholders’ Equity:
|
||||||||
Common stock, par value $.01 per share, 400,000,000 shares
authorized, 263,111,472 shares issued at September 30, 2011 and
December 31, 2010
|
2.6 | 2.6 | ||||||
Capital in excess of par value
|
2,070.9 | 2,259.3 | ||||||
Retained earnings
|
3,270.4 | 2,848.3 | ||||||
Accumulated other elements of comprehensive income (loss)
|
(77.5 | ) | (27.1 | ) | ||||
Less: Treasury stock, 17,913,815 shares at September 30, 2011
(19,197,642 shares at December 31, 2010)
|
(656.6 | ) | (690.7 | ) | ||||
Total stockholders’ equity
|
4,609.8 | 4,392.4 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 8,626.8 | $ | 8,005.1 |
|
Cameron
|
|
Unaudited Consolidated Condensed Statements of Cash Flows
|
|
($ millions)
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$ | 164.5 | $ | 148.7 | $ | 422.1 | $ | 398.2 | ||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
|
||||||||||||||||
Depreciation
|
42.9 | 36.4 | 115.1 | 107.8 | ||||||||||||
Amortization
|
10.2 | 16.3 | 30.4 | 45.9 | ||||||||||||
Non-cash stock compensation expense
|
9.1 | 6.7 | 26.7 | 25.2 | ||||||||||||
Tax benefit of employee stock compensation plan transactions and deferred income taxes
|
25.6 | (13.0 | ) | 12.5 | (5.5 | ) | ||||||||||
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
|
||||||||||||||||
Receivables
|
(159.1 | ) | (67.0 | ) | (360.4 | ) | (46.9 | ) | ||||||||
Inventories
|
(146.4 | ) | (25.1 | ) | (431.4 | ) | (91.0 | ) | ||||||||
Accounts payable and accrued liabilities
|
158.0 | (31.2 | ) | 24.6 | (398.8 | ) | ||||||||||
Other assets and liabilities, net
|
0.1 | 23.1 | 39.8 | (95.6 | ) | |||||||||||
Net cash provided by (used for) operating activities
|
104.9 | 94.9 | (120.6 | ) | (60.7 | ) | ||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Capital expenditures
|
(94.2 | ) | (47.0 | ) | (228.5 | ) | (115.0 | ) | ||||||||
Acquisitions, net of cash acquired
|
– | – | (42.5 | ) | (40.9 | ) | ||||||||||
Proceeds from sale of plant and equipment
|
7.8 | 1.4 | 17.6 | 8.9 | ||||||||||||
Net cash used for investing activities
|
(86.4 | ) | (45.6 | ) | (253.4 | ) | (147.0 | ) | ||||||||
Cash flows from financing activities:
|
||||||||||||||||
Short-term loan borrowings (repayments), net
|
18.2 | 12.1 | 49.7 | (6.6 | ) | |||||||||||
Issuance of senior debt
|
– | – | 747.8 | – | ||||||||||||
Debt issuance cost
|
– | – | (4.7 | ) | – | |||||||||||
Redemption of convertible debentures
|
(524.5 | ) | – | (705.7 | ) | – | ||||||||||
Sale (purchase) of equity call options, net
|
9.7 | – | (12.2 | ) | – | |||||||||||
Purchase of treasury stock
|
– | – | – | (123.9 | ) | |||||||||||
Proceeds from stock option exercises, net of tax payments
from stock compensation plan transactions
|
3.3 | 2.5 | 20.0 | (9.6 | ) | |||||||||||
Excess tax benefits from employee stock compensation plan transactions
|
0.5 | 0.9 | 5.4 | 6.3 | ||||||||||||
Principal payments on capital leases
|
(2.2 | ) | (1.6 | ) | (6.0 | ) | (4.9 | ) | ||||||||
Net cash provided by (used for) financing activities
|
(495.0 | ) | 13.9 | 94.3 | (138.7 | ) | ||||||||||
Effect of translation on cash
|
(30.1 | ) | 20.1 | (16.3 | ) | (2.8 | ) | |||||||||
Increase (decrease) in cash and cash equivalents
|
(506.6 | ) | 83.3 | (296.0 | ) | (349.2 | ) | |||||||||
Cash and cash equivalents, beginning of period
|
2,043.1 | 1,428.5 | 1,832.5 | 1,861.0 | ||||||||||||
Cash and cash equivalents, end of period
|
$ | 1,536.5 | $ | 1,511.8 | $ | 1,536.5 | $ | 1,511.8 |
|
Cameron
|
|
Orders and Backlog
|
|
($ millions)
|
|
Orders
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Drilling & Production Systems
|
$ | 1,149.1 | $ | 718.0 | $ | 3,410.1 | $ | 2,034.6 | ||||||||
Valves & Measurement
|
508.6 | 396.8 | 1,462.5 | 1,137.0 | ||||||||||||
Process & Compression Systems
|
345.4 | 365.0 | 1,040.2 | 908.3 | ||||||||||||
Total
|
$ | 2,003.1 | $ | 1,479.8 | $ | 5,912.8 | $ | 4,079.9 |
|
Backlog
|
September 30,
2011
|
December 31,
2010
|
September 30,
2010
|
||||||||||
Drilling & Production Systems
|
$ | 3,755.9 | $ | 3,195.9 | $ | 3,401.9 | ||||||
Valves & Measurement
|
1,090.4 | 833.8 | 740.0 | |||||||||
Process & Compression Systems
|
941.2 | 787.4 | 793.5 | |||||||||
Total
|
$ | 5,787.5 | $ | 4,817.1 | $ | 4,935.4 |
|
Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions)
|
Three Months Ended September 30, 2011
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 196.6 | $ | 81.5 | $ | 24.0 | $ | (104.1 | ) | $ | 198.0 | |||||||||
Depreciation & amortization
|
26.5 | 9.9 | 9.8 | 6.9 | 53.1 | |||||||||||||||
Interest, net
|
− | − | − | 20.6 | 20.6 | |||||||||||||||
EBITDA
|
$ | 223.1 | $ | 91.4 | $ | 33.8 | $ | (76.6 | ) | $ | 271.7 |
Three Months Ended September 30, 2010
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 161.8 | $ | 43.0 | $ | 41.4 | $ | (61.1 | ) | $ | 185.1 | |||||||||
Depreciation & amortization
|
23.8 | 11.0 | 15.0 | 2.9 | 52.7 | |||||||||||||||
Interest, net
|
− | − | − | 20.0 | 20.0 | |||||||||||||||
EBITDA
|
$ | 185.6 | $ | 54.0 | $ | 56.4 | $ | (38.2 | ) | $ | 257.8 |
|
Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions)
|
Nine Months Ended September 30, 2011
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 474.3 | $ | 212.2 | $ | 88.5 | $ | (249.7 | ) | $ | 525.3 | |||||||||
Depreciation & amortization
|
76.7 | 30.0 | 27.4 | 11.4 | 145.5 | |||||||||||||||
Interest, net
|
− | − | − | 62.7 | 62.7 | |||||||||||||||
EBITDA
|
$ | 551.0 | $ | 242.2 | $ | 115.9 | $ | (175.6 | ) | $ | 733.5 |
Nine Months Ended September 30, 2010
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 463.8 | $ | 137.3 | $ | 96.4 | $ | (179.6 | ) | $ | 517.9 | |||||||||
Depreciation & amortization
|
68.9 | 32.1 | 44.4 | 8.3 | 153.7 | |||||||||||||||
Interest, net
|
− | − | − | 56.4 | 56.4 | |||||||||||||||
EBITDA
|
$ | 532.7 | $ | 169.4 | $ | 140.8 | $ | (114.9 | ) | $ | 728.0 |
|
Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions, except per share amounts)
|
Three Months Ended September 30, 2011
|
||||||||
After Tax(1)
|
Diluted EPS(2)
|
|||||||
Net income, as reported
|
$ | 164.5 | $ | 0.67 | ||||
Adjustments:
|
||||||||
BOP litigation costs
|
11.0 | 0.04 | ||||||
Mark-to-market impact on currency derivatives(3)
|
5.3 | 0.02 | ||||||
Acquisition, refinancing and other restructuring costs(4)
|
12.1 | 0.05 | ||||||
Adjusted EPS
|
$ | 192.9 | $ | 0.78 |
Three Months Ended September 30, 2010
|
||||||||
After Tax(1)
|
Diluted EPS(2)
|
|||||||
Net income, as reported
|
$ | 148.7 | $ | 0.61 | ||||
Adjustments:
|
||||||||
NATCO acquisition integration costs
|
4.6 | 0.02 | ||||||
BOP litigation costs
|
3.3 | 0.01 | ||||||
Severance, acquisition, refinancing and other restructuring costs
|
0.5 | – | ||||||
Adjusted EPS
|
$ | 157.1 | $ | 0.64 |
Nine Months Ended September 30, 2011
|
||||||||
After Tax(1)
|
Diluted EPS(2)
|
|||||||
Net income, as reported
|
$ | 422.1 | $ | 1.69 | ||||
Adjustments:
|
||||||||
BOP litigation costs
|
28.5 | 0.11 | ||||||
Mark-to-market impact on currency derivatives(3)
|
5.1 | 0.02 | ||||||
Severance, acquisition, refinancing and other restructuring costs(4)
|
17.1 | 0.07 | ||||||
Adjusted EPS
|
$ | 472.8 | $ | 1.89 |
Nine Months Ended September 30, 2010
|
||||||||
After Tax(1)
|
Diluted EPS(2)
|
|||||||
Net income, as reported
|
$ | 398.2 | $ | 1.61 | ||||
Adjustments:
|
||||||||
NATCO acquisition integration costs
|
14.2 | 0.06 | ||||||
BOP litigation costs
|
5.2 | 0.02 | ||||||
Severance, acquisition, refinancing and other restructuring costs
|
10.6 | 0.04 | ||||||
Adjusted EPS
|
$ | 428.2 | $ | 1.73 |