-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KHUZajs9ybbXuOmLBp53vyqXvxKtkZ5qR7YoL8xYZ7LIGFzW7ezfvSOCkkUhdxBQ ci7OaTkUFQ/jDL/nZZG9kg== 0001140361-08-024017.txt : 20081030 0001140361-08-024017.hdr.sgml : 20081030 20081030073030 ACCESSION NUMBER: 0001140361-08-024017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20081030 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20081030 DATE AS OF CHANGE: 20081030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMERON INTERNATIONAL CORP CENTRAL INDEX KEY: 0000941548 STANDARD INDUSTRIAL CLASSIFICATION: OIL & GAS FILED MACHINERY & EQUIPMENT [3533] IRS NUMBER: 760451843 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13884 FILM NUMBER: 081149161 BUSINESS ADDRESS: STREET 1: 1333 WEST LOOP SOUTH STREET 2: STE 1700 CITY: HOUSTON STATE: TX ZIP: 77027 BUSINESS PHONE: 7135133322 MAIL ADDRESS: STREET 1: 1333 WEST LOOP SOUTH STREET 2: STE 1700 CITY: HOUSTON STATE: TX ZIP: 77027 FORMER COMPANY: FORMER CONFORMED NAME: COOPER CAMERON CORP DATE OF NAME CHANGE: 19950315 8-K 1 form8-k.htm 2008 - 3RD QTR EARNINGS form8-k.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported):
October 30, 2008


Cameron International Corporation
______________________________________________
(Exact Name of Registrant as Specified in its Charter)


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

Not Applicable
_______________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]           Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))


 
 
 



Item 2.02
Results of Operations and Financial Condition

On October 30, 2008, Cameron issued a press release announcing its results for the third quarter ended September 30, 2008.  The press release is attached hereto as Exhibit 99.1 and is incorporated by reference into this item.

 

Item 9.01
Financial Statements and Exhibits.
 
(d)  Exhibits.
 
    The following is being furnished as an exhibit to this report:

Exhibit
Number
  
 
Exhibit Title or Description
Exhibit 99.1
  
Press Release of Cameron International Corporation, dated October 30, 2008 – Cameron Third Quarter Earnings Per Share $0.73

 
Exhibit 99.1 to this report contains “non-GAAP financial measures” as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended. The non-GAAP financial measures reflect earnings before interest, taxes, depreciation and amortization expense (“EBITDA”).  A reconciliation of EBITDA to the most directly comparable financial measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) is included as an attachment to the press release.  The Company believes the presentation of EBITDA is useful to the Company’s investors because EBITDA is an appropriate measure of evaluating the Company’s operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company’s securities and making strategic acquisitions.  In addition, EBITDA is a widely used benchmark in the investment community.
 
The presentation of this additional information is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with GAAP.

 
 
 


 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


 
CAMERON INTERNATIONAL CORPORATION
 
By:         /s/    Charles M. Sledge                    
 
  Charles M. Sledge
 
  Vice President and Chief Financial Officer




Date:                      October 30, 2008






Cameron International Corporation
Current report on Form 8-K
Dated October 30, 2008


EXHIBIT INDEX

Exhibit
Number
  
 
Exhibit Title or Description
Exhibit 99.1
  
Press Release of Cameron International Corporation, dated October 30, 2008 – Cameron Third Quarter Earnings Per Share $0.73
 
 
 EX-99.1 2 exhibit99-1.htm 2008 - 3RD QTR EARNINGS PRESS RELEASE exhibit99-1.htm
Exhibit 99.1

 
2008-16
Contact:                 R. Scott Amann
Vice President, Investor Relations
(713) 513-3344

CAMERON THIRD QUARTER EARNINGS PER SHARE $0.73

·  
Earnings per share total $0.73, up 30 percent from year ago, excluding 2007 tax gain
·  
Revenues up 27 percent from prior year’s quarter, earnings before taxes up 24 percent
·  
Orders for subsea, drilling, valves businesses reach record levels; total company backlog increases to record $6.2 billion

HOUSTON (October 30, 2008) -- Cameron (NYSE: CAM) reported net income of $166.3 million, or $0.73 per diluted share, for the quarter ended September 30, 2008, compared with net income of $150.7 million, or $0.65 per diluted share, for the third quarter of 2007.  The third quarter 2007 results included a gain of $19.8 million, or $0.09 per share, related to the favorable resolution of certain tax matters.  Excluding that gain, the Company’s earnings were $0.56 per diluted share for the third quarter of 2007.
Total revenues were $1,504.7 million for the quarter, up 27 percent from 2007’s $1,186.2 million, while income before income taxes was $247.4 million, up 24 percent from the $198.9 million of a year ago.  Cameron President and Chief Executive Officer Jack B. Moore noted that the year-over-year increases reflect double-digit earnings increases in all three business groups, led by the longer-cycle drilling and subsea businesses.
Record orders in subsea and drilling businesses drive backlog to new high
Orders received during the third quarter of 2008 totaled $2,611.8 million, almost double (up 97 percent) the $1,329.0 million of a year ago, driven primarily by continued strength in the drilling and subsea markets.  “The $850 million booking for the initial phase of BP’s Block 31 development offshore West Africa marked the largest single order in Cameron’s history, and resulted in subsea orders totaling nearly $1 billion in the quarter.  This, coupled with a record level of drilling orders, resulted in Drilling & Production Systems (DPS) posting the highest quarterly orders in its history at $1.95 billion,” Moore said.  “In addition, Valves & Measurement (V&M) recorded its highest orders quarter to date, with each of its business lines reaching new highs.”  Moore said Cameron’s total orders exceeded revenues for the sixteenth consecutive quarter, and he noted that the Company’s $6.37 billion in total orders for the first nine months of the year already far exceeds 2007’s full-year total of $5.38 billion.
At September 30, 2008, the Company’s backlog totaled $6.15 billion, up 18 percent from the $5.22 billion level at the end of the second quarter, and up 49 percent from the year-ago level of $4.13 billion.
Cash flow reinvested in new facilities, acquisitions, share repurchases
Moore said that Cameron’s cash flow from operations totaled $512.7 million through the first nine months of 2008, compared with $167.6 million for the same period of 2007.  “Year-to-date capital expenditures total $160.4 million, compared with $161.2 million for the 2007 period, and our current estimate for full-year spending is about $260 million,” he noted.  “We will have spent approximately $40 million this year on our new Romanian surface equipment plant, which should begin operations before year-end, and we will invest about $14 million this year on the continuing expansion of our subsea facility in Malaysia.”  Moore also noted that through the end of the third quarter, the Company had spent approximately $98 million on acquisitions and expects to close the $85 million purchase of KB Industries, a blowout preventer manufacturer, during the fourth quarter.  In addition, Moore said that Cameron repurchased 1.4 million shares of its common stock during the quarter at an average price of $43.86 per share, and has spent more than $215 million on share repurchases through the first nine months of the year.
Moore said that Cameron’s financial health remains solid.  “At September 30, 2008, the cash and cash equivalents on our balance sheet totaled more than $1.43 billion, and exceeded our total debt by $24.2 million,” he said.  “With this cash on hand, amounts available under our revolver and our expected strong level of future operating cash flow, we will be able to take advantage of opportunities in this uncertain environment.”
Fourth quarter earnings per share estimated at $0.74 to $0.76, full-year 2008 expected to be $2.67 to $2.69, excluding final charge for pension plan termination
 
“Based on our current backlog and activity levels, we expect Cameron’s earnings for the fourth quarter of 2008 to be in the range of $0.74 to $0.76 per share, which would result in full-year earnings of approximately $2.67 to $2.69 per share,” Moore said.  “The primary factors affecting these expectations will be our customers’ spending, particularly on our shorter-cycle product lines, and our ability to execute on current project business and effectively manage costs.”
Moore noted that the above figures do not include an expected charge of approximately $0.09 per share related to the completion of the previously announced termination of the Company’s U.S. pension plans.  “This non-cash, pre-tax charge of approximately $31.0 million will represent the final settlement of the Company’s pension obligations under our U.S. plans,” Moore said.
Cameron (NYSE: CAM) is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries.
###
Website: www.c-a-m.com

In addition to the historical data contained herein, this document includes forward-looking statements regarding order levels, revenues and earnings of the Company (including fourth quarter and full-year 2008 earnings per share estimates), as well as expectations regarding  profitability, cash flow, full-year capital spending, capital spending for construction of new facilities, completion of pending acquisitions and the estimated costs related to terminating the U. S. pension plans, made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The Company’s actual results may differ materially from those described in forward-looking statements.  Such statements are based on current expectations of the Company’s performance and are subject to a variety of factors, some of which are not under the control of the Company, which can affect the Company’s results of operations, liquidity or financial condition.  Such factors may include overall demand for, and pricing of, the Company’s products; the size and timing of orders; the Company’s ability to successfully execute the large subsea systems and drilling projects it has been awarded; the Company’s ability to convert backlog into revenues on a timely and profitable basis; the Company’s ability to successfully implement its capital expenditures program; the impact of acquisitions the Company has made or may make; changes in the price of (and demand for) oil and gas in both domestic and international markets; raw material costs and availability; political and social issues affecting the countries in which the Company does business; fluctuations in currency markets worldwide; and variations in global economic activity.  In particular, current and projected oil and gas prices historically have generally directly affected customers’ spending levels and their related purchases of the Company’s products and services.  Additionally, changes in oil and gas price expectations may impact the Company’s financial results due to changes it makes as a result thereof in its cost structure, staffing or spending levels.
Because the information herein is based solely on data currently available, it is subject to change as a result of changes in conditions over which the Company has no control or influence, and should not therefore be viewed as assurance regarding the Company’s future performance.  Additionally, the Company is not obligated to make public indication of such changes unless required under applicable disclosure rules and regulations.

 
 
 

Cameron
Unaudited Consolidated Condensed Results of Operations
($ and shares in millions except per share data)

   
Three Months
Ended September 30,
    
Nine Months
Ended September 30,
  
   
2008
    
2007
    
2008
    
2007
  
Revenues:
                        
Drilling & Production Systems
   $ 957.0     $ 734.3     $ 2,773.6     $ 2,030.9  
Valves & Measurement                                                           
     383.7       329.4       1,095.1       940.8  
Compression Systems                                                           
     164.0       122.5       455.9       350.6  
Total revenues                                                      
     1,504.7       1,186.2       4,324.6       3,322.3  
                                 
Costs and Expenses:
                                
Cost of sales (exclusive of depreciation and amortization shown separately below)
     1,050.8       810.1       3,079.4       2,296.2  
Selling and administrative expenses
     165.3       149.8       484.5       419.1  
Depreciation and amortization
     32.5       28.0       95.7       81.0  
Interest income
     (9.7 )     (6.0 )     (22.2 )     (23.3 )
Interest expense
     18.4       5.4       30.5       18.3  
Total costs and expenses                                                      
     1,257.3       987.3       3,667.9       2,791.3  
                                 
Income before income taxes                                                              
     247.4       198.9       656.7       531.0  
Income tax provision                                                              
     (81.1 )     (48.2 )     (212.1 )     (156.0 )
Net income                                                              
   $ 166.3     $ 150.7     $ 444.6     $ 375.0  
                                 
Earnings per common share:(1)
                                
Basic                                                           
   $ 0.76     $ 0.69     $ 2.05     $ 1.71  
Diluted                                                           
   $ 0.73     $ 0.65     $ 1.93     $ 1.63  
                                 
Shares used in computing earnings per common share: (1)
                                
Basic                                                           
     218.5       217.8       217.3       219.5  
Diluted                                                           
     229.2       230.8       231.0       230.0  
                                 
EBITDA:
                                
Drilling & Production Systems
   $ 188.4     $ 146.6     $ 504.5     $ 386.3  
Valves & Measurement                                                              
     92.8       78.4       245.4       220.1  
Compression Systems                                                              
     32.3       23.0       84.1       59.8  
Corporate and other                                                              
     (24.9 )     (21.7 )     (73.3 )     (59.2 )
Total                                                           
   $ 288.6     $ 226.3     $ 760.7     $ 607.0  

1
Prior year earnings per common share and shares used in computing earnings per common share have been revised to reflect the 2-for-1 stock split effective December 28, 2007.



 
 
 

Cameron
Consolidated Condensed Balance Sheets
($ millions)

   
September 30,
2008
    
December 31,
2007
  
   
(unaudited)
        
Assets:
            
Cash and cash equivalents                                                                                     
   $ 1,435.5     $ 739.9  
Receivables, net                                                                                     
     967.9       797.5  
Inventories, net                                                                                     
     1,407.4       1,413.4  
Other                                                                                     
     144.8       121.1  
Total current assets                                                                             
     3,955.6       3,071.9  
                 
Plant and equipment, net                                                                                     
     884.2       821.1  
Goodwill                                                                                     
     694.4       647.8  
Other assets                                                                                     
     199.6       190.0  
Total Assets                                                                           
   $ 5,733.8     $ 4,730.8  
                 
Liabilities and Stockholders’ Equity:
                
Current portion of long-term debt                                                                                     
   $ 155.0     $ 8.8  
Accounts payable and accrued liabilities                                                                                     
     1,728.7       1,677.1  
Accrued income taxes                                                                                     
     76.5       7.0  
Total current liabilities                                                                             
     1,960.2       1,692.9  
                 
Long-term debt                                                                                     
     1,256.3       745.1  
Postretirement benefits other than pensions
     16.0       15.8  
Deferred income taxes                                                                                     
     81.4       68.7  
Other long-term liabilities                                                                                     
     116.8       113.4  
Total liabilities                                                                             
     3,430.7       2,635.9  
                 
Stockholders’ Equity:
                
Common stock, par value $.01 per share, 400,000,000 shares authorized, 236,315,983 shares issued at September 30, 2008 (232,341,726 shares issued at December 31, 2007)
     2.4       2.3  
Capital in excess of par value                                                                                   
     1,175.6       1,160.8  
Retained earnings                                                                                   
     1,701.4       1,256.8  
Accumulated other elements of comprehensive income
     2.8       101.0  
Less:  Treasury stock, 16,809,763 shares at September 30, 2008 (14,332,927 shares at December 31, 2007)
     (579.1 )     (426.0 )
Total stockholders’ equity                                                                             
     2,303.1       2,094.9  
                 
Total Liabilities and Stockholders’ Equity
   $ 5,733.8     $ 4,730.8  


 
 
 

Cameron
Unaudited Consolidated Condensed Statements of Cash Flows
($ millions)
   
Three Months
Ended September 30,
    
Nine Months
Ended September 30,
  
   
2008
    
2007
    
2008
    
2007
  
Cash flows from operating activities:
                        
Net income                                                                  
   $ 166.3     $ 150.7     $ 444.6     $ 375.0  
Adjustments to reconcile net income to net cash provided by operating activities:
                                
Depreciation                                                             
     25.2       20.6       72.6       60.1  
Amortization                                                             
     7.3       7.4       23.1       20.9  
Non-cash stock compensation expense
     7.6       5.8       23.6       20.0  
Tax benefit of employee stock compensation plan transactions and deferred income taxes
     (17.0 )     10.1       (14.5 )     21.9  
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
                                
Receivables                                                             
     (47.5 )     (47.0 )     (190.4 )     (98.0 )
Inventories                                                             
     (12.7 )     (102.5 )     (31.3 )     (374.0 )
Accounts payable and accrued liabilities
     86.6       98.9       116.0       212.7  
Other assets and liabilities, net                                                             
     47.5       (30.7 )     69.0       (71.0 )
Net cash provided by operating activities
     263.3       113.3       512.7       167.6  
                                 
Cash flows from investing activities:
                                
Capital expenditures                                                                  
     (64.4 )     (53.2 )     (160.4 )     (161.2 )
Acquisitions, net of cash acquired                                                                  
     (40.2 )     (0.7 )     (97.7 )     (76.4 )
Proceeds from sale of plant and equipment
     0.8       1.4       1.7       5.0  
Net cash used for investing activities
     (103.8 )     (52.5 )     (256.4 )     (232.6 )
                                 
Cash flows from financing activities:
                                
Short-term loan (repayments) borrowings, net
     (59.6 )     (2.4 )     20.7       (201.6 )
Redemption of convertible debt securities
     (106.9 )     —       (106.9 )     —  
Issuance of long-term senior notes                                                                  
     —       —       747.9       —  
Debt issuance costs                                                                  
     —       —       (5.5 )     —  
Purchase of treasury stock                                                                  
     (60.8 )     (4.7 )     (215.3 )     (282.1 )
Proceeds from stock option exercises
     7.0       19.3       17.1       41.6  
Excess tax benefits from employee stock compensation plan transactions
     2.7       10.0       17.2       21.7  
Principal payments on capital leases
     (1.9 )     (0.1 )     (5.2 )     (2.7 )
Net cash (used for) provided by financing activities
     (219.5 )     22.1       470.0       (423.1 )
                                 
Effect of translation on cash                                                                     
     (38.6 )     18.2       (30.7 )     23.1  
                                 
(Decrease) increase in cash and cash equivalents
     (98.6 )     101.1       695.6       (465.0 )
                                 
Cash and cash equivalents, beginning of period
     1,534.1       467.4       739.9       1,033.5  
                                 
Cash and cash equivalents, end of period
   $ 1,435.5     $ 568.5     $ 1,435.5     $ 568.5  

 
 
 

Cameron
Orders and Backlog
($ millions)





Orders
   
Three Months
Ended September 30,
    
Nine Months
Ended September 30,
  
   
2008
    
2007
    
2008
    
2007
  
                         
Drilling & Production Systems
   $ 1,945.4     $ 789.2     $ 4,511.0     $ 2,347.2  
Valves & Measurement                                                   
     475.4       341.3       1,260.5       1,041.6  
Compression Systems                                                   
     191.0       198.5       596.6       505.5  
Total                                                
   $ 2,611.8     $ 1,329.0     $ 6,368.1     $ 3,894.3  





Backlog
   
September 30,
2008
    
December 31, 2007
    
September 30, 2007
  
                   
Drilling & Production Systems
   $ 4,809.6     $ 3,203.0     $ 2,992.7  
Valves & Measurement                                                           
     829.9       685.2       738.2  
Compression Systems                                                           
     511.3       380.1       397.3  
Total                                                        
   $ 6,150.8     $ 4,268.3     $ 4,128.2  



 
 
 

Cameron
Reconciliation of GAAP to Non-GAAP Financial Information
($ millions)


   
Three Months Ended September 30, 2008
  
   
Drilling & Production Systems
    
Valves & Measurement
    
Compression Systems
    
Corporate
    
Total
  
                               
Income (loss) before income taxes
   $ 171.5     $ 84.7     $ 28.4     $ (37.2 )   $ 247.4  
Depreciation & amortization
     16.9       8.1       3.9       3.6       32.5  
Interest income
     —       —       —       (9.7 )     (9.7 )
Interest expense
     —       —       —       18.4       18.4  
                                         
EBITDA
   $ 188.4     $ 92.8     $ 32.3     $ (24.9 )   $ 288.6  





   
Three Months Ended September 30, 2007
  
   
Drilling & Production Systems
    
Valves & Measurement
    
Compression Systems
    
Corporate
    
Total
  
                               
Income (loss) before income taxes
   $ 132.3     $ 70.7     $ 19.5     $ (23.6 )   $ 198.9  
Depreciation & amortization
     14.3       7.7       3.5       2.5       28.0  
Interest income
     —       —       —       (6.0 )     (6.0 )
Interest expense
     —       —       —       5.4       5.4  
                                         
EBITDA
   $ 146.6     $ 78.4     $ 23.0     $ (21.7 )   $ 226.3  




 
 
 

Cameron
Reconciliation of GAAP to Non-GAAP Financial Information
($ millions)


   
Nine Months Ended September 30, 2008
  
   
Drilling & Production Systems
    
Valves & Measurement
    
Compression Systems
    
Corporate
    
Total
  
                               
Income (loss) before income taxes
   $ 453.7     $ 221.7     $ 72.9     $ (91.6 )   $ 656.7  
Depreciation & amortization
     50.8       23.7       11.2       10.0       95.7  
Interest income
     —       —       —       (22.2 )     (22.2 )
Interest expense
     —       —       —       30.5       30.5  
                                         
EBITDA
   $ 504.5     $ 245.4     $ 84.1     $ (73.3 )   $ 760.7  





   
Nine Months Ended September 30, 2007
  
   
Drilling & Production Systems
    
Valves & Measurement
    
Compression Systems
    
Corporate
    
Total
  
                               
Income (loss) before income taxes
   $ 345.0     $ 197.6     $ 49.7     $ (61.3 )   $ 531.0  
Depreciation & amortization
     41.3       22.5       10.1       7.1       81.0  
Interest income
     —       —       —       (23.3 )     (23.3 )
Interest expense
     —       —       —       18.3       18.3  
                                         
EBITDA
   $ 386.3     $ 220.1     $ 59.8     $ (59.2 )   $ 607.0  







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