Date of Report (Date of earliest event reported):
|
July 26, 2012
|
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 26, 2012 – Cameron Second Quarter Earnings Per Share $0.74, Excluding Charges of $0.04 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 26, 2012 – Cameron Second Quarter Earnings Per Share $0.74, Excluding Charges of $0.04 Per Share
|
·
|
Orders $2.6 billion, second highest quarter ever; $7.5 billion backlog a record level
|
·
|
Earnings total $0.74 per share, excluding charges, versus $0.66, excluding charges, in second quarter of 2011
|
·
|
Expect record orders in 2012
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenues:
|
||||||||||||||||
Drilling & Production Systems
|
$ | 1,155.8 | $ | 1,002.7 | $ | 2,197.9 | $ | 1,868.3 | ||||||||
Valves & Measurement
|
558.3 | 426.5 | 1,049.5 | 766.4 | ||||||||||||
Process & Compression Systems
|
339.6 | 311.9 | 610.6 | 607.6 | ||||||||||||
Total revenues
|
2,053.7 | 1,741.1 | 3,858.0 | 3,242.3 | ||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
1,448.9 | 1,213.4 | 2,729.3 | 2,271.2 | ||||||||||||
Selling and administrative expenses
|
286.2 | 250.5 | 557.6 | 480.3 | ||||||||||||
Depreciation and amortization
|
63.6 | 47.6 | 123.1 | 92.4 | ||||||||||||
Interest, net
|
22.0 | 22.1 | 44.7 | 42.2 | ||||||||||||
Other costs
|
9.9 | 20.1 | 8.4 | 29.0 | ||||||||||||
Total costs and expenses
|
1,830.6 | 1,553.7 | 3,463.1 | 2,915.1 | ||||||||||||
Income before income taxes
|
223.1 | 187.4 | 394.9 | 327.2 | ||||||||||||
Income tax provision
|
(48.5 | ) | (39.4 | ) | (86.3 | ) | (69.6 | ) | ||||||||
Net income
|
$ | 174.6 | $ | 148.0 | $ | 308.6 | $ | 257.6 | ||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$ | 0.71 | $ | 0.60 | $ | 1.25 | $ | 1.05 | ||||||||
Diluted
|
$ | 0.70 | $ | 0.59 | $ | 1.25 | $ | 1.03 | ||||||||
Shares used in computing earnings per common share:
|
||||||||||||||||
Basic
|
246.3 | 245.0 | 246.2 | 244.8 | ||||||||||||
Diluted
|
247.7 | 249.9 | 247.8 | 251.1 | ||||||||||||
EBITDA:
|
||||||||||||||||
Drilling & Production Systems
|
$ | 213.8 | $ | 187.3 | $ | 383.5 | $ | 327.8 | ||||||||
Valves & Measurement
|
121.5 | 85.6 | 224.4 | 150.8 | ||||||||||||
Process & Compression Systems
|
36.0 | 43.3 | 55.9 | 82.1 | ||||||||||||
Corporate and other(1)
|
(52.7 | ) | (39.0 | ) | (92.7 | ) | (69.9 | ) | ||||||||
Total
|
$ | 318.6 | $ | 277.2 | $ | 571.1 | $ | 490.8 |
(1)
|
Corporate EBITDA amounts exclude $9.9 million and $8.4 million of other costs for the three- and six-month periods ended June 30, 2012; and $20.1 million and $29.0 million for the three- and six-month periods ended June 30, 2011.
|
|
Cameron
|
|
Consolidated Condensed Balance Sheets
|
|
($ millions)
|
June 30,
2012
|
December 31,
2011
|
|||||||
(unaudited)
|
||||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$ | 829.0 | $ | 898.9 | ||||
Short-term investments
|
419.5 | 423.5 | ||||||
Receivables, net
|
1,824.0 | 1,757.3 | ||||||
Inventories, net
|
2,650.0 | 2,399.9 | ||||||
Other
|
359.3 | 349.0 | ||||||
Total current assets
|
6,081.8 | 5,828.6 | ||||||
Plant and equipment, net
|
1,614.1 | 1,500.1 | ||||||
Goodwill
|
1,966.9 | 1,615.3 | ||||||
Other assets
|
427.5 | 417.7 | ||||||
Total Assets
|
$ | 10,090.3 | $ | 9,361.7 | ||||
Liabilities and Stockholders’ Equity:
|
||||||||
Current portion of long-term debt
|
$ | 21.5 | $ | 10.6 | ||||
Accounts payable and accrued liabilities
|
2,621.1 | 2,669.7 | ||||||
Total current liabilities
|
2,642.6 | 2,680.3 | ||||||
Long-term debt
|
2,016.1 | 1,574.2 | ||||||
Deferred income taxes
|
165.5 | 184.5 | ||||||
Other long-term liabilities
|
229.4 | 215.3 | ||||||
Total liabilities
|
5,053.6 | 4,654.3 | ||||||
Stockholders’ Equity:
|
||||||||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at June 30, 2012 and December 31, 2011
|
2.6 | 2.6 | ||||||
Capital in excess of par value
|
2,073.4 | 2,072.4 | ||||||
Retained earnings
|
3,678.8 | 3,370.2 | ||||||
Accumulated other elements of comprehensive income (loss)
|
(89.8 | ) | (90.8 | ) | ||||
Less: Treasury stock, 16,839,018 shares at June 30, 2012 (17,579,397 shares at December 31, 2011)
|
(628.3 | ) | (647.0 | ) | ||||
Total stockholders’ equity
|
5,036.7 | 4,707.4 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 10,090.3 | $ | 9,361.7 |
|
Cameron
|
|
Unaudited Consolidated Condensed Statements of Cash Flows
|
|
($ millions)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$ | 174.6 | $ | 148.0 | $ | 308.6 | $ | 257.6 | ||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
|
||||||||||||||||
Depreciation
|
51.6 | 37.6 | 99.4 | 72.2 | ||||||||||||
Amortization
|
12.0 | 10.0 | 23.7 | 20.2 | ||||||||||||
Non-cash stock compensation expense
|
10.7 | 9.4 | 21.6 | 17.5 | ||||||||||||
Deferred income taxes and tax benefit of employee stock compensation plan transactions
|
12.2 | (31.8 | ) | 31.7 | (13.0 | ) | ||||||||||
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
|
||||||||||||||||
Receivables
|
(80.7 | ) | (169.5 | ) | 16.8 | (201.2 | ) | |||||||||
Inventories
|
(109.6 | ) | (111.5 | ) | (312.1 | ) | (285.0 | ) | ||||||||
Accounts payable and accrued liabilities
|
124.4 | 115.9 | (168.3 | ) | (133.4 | ) | ||||||||||
Other assets and liabilities, net
|
(31.7 | ) | 93.3 | (61.7 | ) | 39.8 | ||||||||||
Net cash provided by (used for) operating activities
|
163.5 | 101.4 | (40.3 | ) | (225.3 | ) | ||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Proceeds from sales and maturities of short-term investments
|
190.6 | – | 512.3 | – | ||||||||||||
Purchases of short-term investments
|
(265.4 | ) | – | (508.3 | ) | – | ||||||||||
Capital expenditures
|
(95.1 | ) | (72.4 | ) | (181.8 | ) | (134.3 | ) | ||||||||
Acquisitions, net of cash acquired
|
(248.1 | ) | (14.9 | ) | (309.6 | ) | (42.5 | ) | ||||||||
Proceeds from sale of plant and equipment
|
8.5 | 3.2 | 18.3 | 9.9 | ||||||||||||
Net cash used for investing activities
|
(409.5 | ) | (84.1 | ) | (469.1 | ) | (166.9 | ) | ||||||||
Cash flows from financing activities:
|
||||||||||||||||
Short-term loan borrowings (repayments), net
|
(62.9 | ) | 33.5 | (44.5 | ) | 31.5 | ||||||||||
Issuance of senior debt
|
499.3 | 747.8 | 499.3 | 747.8 | ||||||||||||
Debt issuance costs
|
(3.4 | ) | (4.7 | ) | (3.4 | ) | (4.7 | ) | ||||||||
Redemption of convertible debentures
|
– | (181.2 | ) | – | (181.2 | ) | ||||||||||
Premium for purchased call options
|
– | (21.9 | ) | – | (21.9 | ) | ||||||||||
Purchase of treasury stock
|
(4.4 | ) | – | (7.5 | ) | – | ||||||||||
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions
|
(0.3 | ) | 0.9 | 2.1 | 16.6 | |||||||||||
Excess tax benefits from employee stock compensation plan transactions | 0.5 | 0.1 | 5.2 | 4.8 | ||||||||||||
Principal payments on capital leases
|
(2.9 | ) | (2.0 | ) | (5.3 | ) | (3.8 | ) | ||||||||
Net cash provided by financing activities
|
425.9 | 572.5 | 445.9 | 589.1 | ||||||||||||
Effect of translation on cash
|
(13.4 | ) | 3.7 | (6.4 | ) | 13.7 | ||||||||||
Increase (decrease) in cash and cash equivalents
|
166.5 | 593.5 | (69.9 | ) | 210.6 | |||||||||||
Cash and cash equivalents, beginning of period
|
662.5 | 1,449.6 | 898.9 | 1,832.5 | ||||||||||||
Cash and cash equivalents, end of period
|
$ | 829.0 | $ | 2,043.1 | $ | 829.0 | $ | 2,043.1 |
|
Cameron
|
|
Orders and Backlog
|
|
($ millions)
|
|
Orders
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Drilling & Production Systems
|
$ | 1,617.2 | $ | 1,442.7 | $ | 3,306.6 | $ | 2,261.0 | ||||||||
Valves & Measurement
|
549.8 | 526.5 | 1,077.8 | 953.9 | ||||||||||||
Process & Compression Systems
|
407.0 | 418.1 | 759.0 | 694.8 | ||||||||||||
Total
|
$ | 2,574.0 | $ | 2,387.3 | $ | 5,143.4 | $ | 3,909.7 |
|
Backlog
|
June 30,
2012
|
December 31,
2011
|
June 30,
2011
|
||||||||||
Drilling & Production Systems
|
$ | 5,155.3 | $ | 3,811.1 | $ | 3,628.3 | ||||||
Valves & Measurement
|
1,144.0 | 1,144.9 | 1,016.2 | |||||||||
Process & Compression Systems
|
1,154.3 | 1,013.1 | 875.1 | |||||||||
Total
|
$ | 7,453.6 | $ | 5,969.1 | $ | 5,519.6 |
|
Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions)
|
Three Months Ended June 30, 2012
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves
& Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 176.1 | $ | 111.1 | $ | 26.9 | $ | (91.0 | ) | $ | 223.1 | |||||||||
Depreciation & amortization
|
37.7 | 10.4 | 9.1 | 6.4 | 63.6 | |||||||||||||||
Interest, net
|
– | – | – | 22.0 | 22.0 | |||||||||||||||
Other costs
|
– | – | – | 9.9 | 9.9 | |||||||||||||||
EBITDA, excluding other costs
|
$ | 213.8 | $ | 121.5 | $ | 36.0 | $ | (52.7 | ) | $ | 318.6 |
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 | ) | $ | 187.4 | |||||||||
Depreciation & amortization
|
25.9 | 10.1 | 9.3 | 2.3 | 47.6 | |||||||||||||||
Interest, net
|
– | – | – | 22.1 | 22.1 | |||||||||||||||
Other costs
|
– | – | – | 20.1 | 20.1 | |||||||||||||||
EBITDA, excluding other costs
|
$ | 187.3 | $ | 85.6 | $ | 43.3 | $ | (39.0 | ) | $ | 277.2 |
|
Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions)
|
Six Months Ended June 30, 2012
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves
& Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 311.4 | $ | 203.7 | $ | 37.5 | $ | (157.7 | ) | $ | 394.9 | |||||||||
Depreciation & amortization
|
72.1 | 20.7 | 18.4 | 11.9 | 123.1 | |||||||||||||||
Interest, net
|
– | – | – | 44.7 | 44.7 | |||||||||||||||
Other costs
|
– | – | – | 8.4 | 8.4 | |||||||||||||||
EBITDA, excluding other costs
|
$ | 383.5 | $ | 224.4 | $ | 55.9 | $ | (92.7 | ) | $ | 571.1 |
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 | ) | $ | 327.2 | |||||||||
Depreciation & amortization
|
50.2 | 20.1 | 17.6 | 4.5 | 92.4 | |||||||||||||||
Interest, net
|
– | – | – | 42.2 | 42.2 | |||||||||||||||
Other costs
|
– | – | – | 29.0 | 29.0 | |||||||||||||||
EBITDA, excluding other costs
|
$ | 327.8 | $ | 150.8 | $ | 82.1 | $ | (69.9 | ) | $ | 490.8 |
|
Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions, except per share amounts)
|
Three Months Ended June 30, 2012
|
||||||||
After Tax (1)
|
Diluted EPS (2)
|
|||||||
Net income, as reported
|
$ | 174.6 | $ | 0.70 | ||||
Adjustments:
|
||||||||
International pension settlement costs
|
4.8 | |||||||
Acquisition integration costs
|
2.6 | |||||||
BOP litigation costs
|
0.6 | |||||||
Mark-to-market impact on currency derivatives(3)
|
(1.2 | ) | ||||||
Severance, restructuring and other costs
|
1.0 | |||||||
Adjusted EPS
|
$ | 182.4 | $ | 0.74 |
Three Months Ended June 30, 2011
|
||||||||
After Tax (1)
|
Diluted EPS (2)
|
|||||||
Net income, as reported
|
$ | 148.0 | $ | 0.59 | ||||
Adjustments:
|
||||||||
BOP litigation costs
|
11.1 | |||||||
Severance, restructuring and other costs
|
4.8 | |||||||
Adjusted EPS
|
$ | 163.9 | $ | 0.66 |