Date of Report (Date of earliest event reported):
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July 25, 2013
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Delaware
___________________
(State or other
jurisdiction of
incorporation)
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1-13884
_________________
(Commission
File Number)
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76-0451843
___________________
(I.R.S. Employer
Identification No.)
|
1333 West Loop South, Suite 1700,
Houston, Texas
________________________________________
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77027
_______________
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(Address of Principal Executive Offices)
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(Zip Code)
|
Registrant’s telephone number, including area code:
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(713) 513-3300
|
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
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statements and Exhibits.
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Exhibit
Number
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Exhibit Title or Description
|
|
Exhibit 99.1
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Press Release of Cameron International Corporation, dated July 25, 2013 – Cameron Second Quarter Earnings.
|
CAMERON INTERNATIONAL CORPORATION
|
|
By: /s/ Charles M. Sledge
|
|
Charles M. Sledge
|
|
Senior Vice President and Chief Financial Officer
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Exhibit
Number
|
Exhibit Title or Description
|
|
Press Release of Cameron International Corporation, dated July 25, 2013 – Cameron Second Quarter Earnings.
|
|
·
|
Tax consequences related to the formation of OneSubsea
|
$ 0.10
|
|
·
|
Other costs, primarily related to the formation of OneSubsea
|
$ 0.11
|
|
·
|
Foreign currency losses during the quarter
|
$ 0.01
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Revenues:
|
||||||||||||||||
Drilling & Production Systems
|
$ | 1,438.4 | $ | 1,155.8 | $ | 2,707.4 | $ | 2,197.9 | ||||||||
Valves & Measurement
|
534.3 | 558.3 | 1,055.8 | 1,049.5 | ||||||||||||
Process & Compression Systems
|
314.7 | 339.6 | 641.9 | 610.6 | ||||||||||||
Total revenues
|
2,287.4 | 2,053.7 | 4,405.1 | 3,858.0 | ||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
1,625.0 | 1,448.9 | 3,119.1 | 2,729.3 | ||||||||||||
Selling and administrative expenses
|
325.5 | 286.2 | 639.6 | 557.6 | ||||||||||||
Depreciation and amortization
|
70.1 | 63.6 | 140.0 | 123.1 | ||||||||||||
Interest, net
|
25.3 | 22.0 | 51.2 | 44.7 | ||||||||||||
Other costs
|
35.6 | 9.9 | 66.4 | 8.4 | ||||||||||||
Total costs and expenses
|
2,081.5 | 1,830.6 | 4,016.3 | 3,463.1 | ||||||||||||
Income before income taxes
|
205.9 | 223.1 | 388.8 | 394.9 | ||||||||||||
Income tax provision
|
(65.5 | ) | (48.5 | ) | (100.0 | ) | (86.3 | ) | ||||||||
Net income
|
$ | 140.4 | $ | 174.6 | $ | 288.8 | $ | 308.6 | ||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$ | 0.57 | $ | 0.71 | $ | 1.17 | $ | 1.25 | ||||||||
Diluted
|
$ | 0.57 | $ | 0.70 | $ | 1.16 | $ | 1.25 | ||||||||
Shares used in computing earnings per common share:
|
||||||||||||||||
Basic
|
246.6 | 246.3 | 247.1 | 246.2 | ||||||||||||
Diluted
|
248.1 | 247.7 | 248.6 | 247.8 | ||||||||||||
EBITDA, excluding other costs:
|
||||||||||||||||
Drilling & Production Systems
|
$ | 239.2 | $ | 213.8 | $ | 437.4 | $ | 383.5 | ||||||||
Valves & Measurement
|
118.6 | 121.5 | 241.9 | 224.4 | ||||||||||||
Process & Compression Systems
|
32.0 | 36.0 | 62.8 | 55.9 | ||||||||||||
Corporate and other(1)
|
(52.9 | ) | (52.7 | ) | (95.7 | ) | (92.7 | ) | ||||||||
Total
|
$ | 336.9 | $ | 318.6 | $ | 646.4 | $ | 571.1 |
(1)
|
Corporate EBITDA amounts exclude $35.6 million and $66.4 million of other costs for the three- and six-month periods ended June 30, 2013; and $9.9 million and $8.4 million for the three- and six-month periods ended June 30, 2012.
|
June 30,
2013
|
December 31,
2012
|
|||||||
(unaudited)
|
||||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$ | 1,718.1 | $ | 1,185.8 | ||||
Short-term investments
|
310.2 | 517.0 | ||||||
Receivables, net
|
2,288.9 | 1,966.7 | ||||||
Inventories, net
|
3,060.3 | 2,741.2 | ||||||
Other
|
379.7 | 499.9 | ||||||
Total current assets
|
7,757.2 | 6,910.6 | ||||||
Plant and equipment, net
|
1,850.9 | 1,765.1 | ||||||
Goodwill
|
2,670.2 | 1,923.9 | ||||||
Other assets
|
1,387.6 | 558.6 | ||||||
Total Assets
|
$ | 13,665.9 | $ | 11,158.2 | ||||
Liabilities and Stockholders’ Equity:
|
||||||||
Current portion of long-term debt
|
$ | 32.3 | $ | 29.2 | ||||
Accounts payable and accrued liabilities
|
3,249.1 | 3,045.7 | ||||||
Accrued income taxes
|
97.2 | 94.1 | ||||||
Total current liabilities
|
3,378.6 | 3,169.0 | ||||||
Long-term debt
|
2,045.7 | 2,047.0 | ||||||
Deferred income taxes
|
370.4 | 131.7 | ||||||
Other long-term liabilities
|
206.9 | 244.4 | ||||||
Total liabilities
|
6,001.6 | 5,592.1 | ||||||
Stockholders’ Equity:
|
||||||||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at June 30, 2013 and December 31, 2012
|
2.6 | 2.6 | ||||||
Capital in excess of par value
|
3,155.5 | 2,094.6 | ||||||
Retained earnings
|
4,409.5 | 4,120.7 | ||||||
Accumulated other elements of comprehensive income (loss)
|
(155.8 | ) | (30.0 | ) | ||||
Less: Treasury stock, 17,001,730 shares at June 30, 2013 (16,415,336 shares at December 31, 2012)
|
(701.5 | ) | (621.8 | ) | ||||
Total Cameron stockholders’ equity
|
6,710.3 | 5,566.1 | ||||||
Noncontrolling interests
|
954.0 | – | ||||||
Total equity
|
7,664.3 | 5,566.1 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 13,665.9 | $ | 11,158.2 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$ | 140.4 | $ | 174.6 | $ | 288.8 | $ | 308.6 | ||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
|
||||||||||||||||
Depreciation
|
59.3 | 51.6 | 115.3 | 99.4 | ||||||||||||
Amortization
|
10.8 | 12.0 | 24.7 | 23.7 | ||||||||||||
Non-cash stock compensation expense
|
14.0 | 10.7 | 27.4 | 21.6 | ||||||||||||
Deferred income taxes and tax benefit of employee stock compensation plan transactions
|
(2.4 | ) | 12.2 | 11.6 | 31.7 | |||||||||||
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
|
||||||||||||||||
Receivables
|
(236.1 | ) | (80.7 | ) | (70.9 | ) | 16.8 | |||||||||
Inventories
|
(124.6 | ) | (109.6 | ) | (340.1 | ) | (312.1 | ) | ||||||||
Accounts payable and accrued liabilities
|
211.9 | 124.4 | 7.4 | (168.3 | ) | |||||||||||
Other assets and liabilities, net
|
(43.7 | ) | (31.7 | ) | (57.3 | ) | (61.7 | ) | ||||||||
Net cash provided by (used for) operating activities
|
29.6 | 163.5 | 6.9 | (40.3 | ) | |||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Proceeds from sales and maturities of short-term investments
|
353.1 | 190.6 | 628.3 | 512.3 | ||||||||||||
Purchases of short-term investments
|
(134.5 | ) | (265.4 | ) | (421.4 | ) | (508.3 | ) | ||||||||
Capital expenditures
|
(98.8 | ) | (95.1 | ) | (182.5 | ) | (181.8 | ) | ||||||||
Dispositions (acquisitions), net of cash acquired
|
7.8 | (248.1 | ) | 9.0 | (309.6 | ) | ||||||||||
Proceeds received and cash acquired from formation of OneSubsea
|
603.0 | – | 603.0 | – | ||||||||||||
Proceeds from sales of plant and equipment
|
2.6 | 8.5 | 4.4 | 18.3 | ||||||||||||
Net cash provided by (used for) investing activities
|
733.2 | (409.5 | ) | 640.8 | (469.1 | ) | ||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Short-term loan borrowings (repayments), net
|
(28.3 | ) | (62.9 | ) | 8.6 | (44.5 | ) | |||||||||
Issuance of senior debt
|
– | 499.3 | – | 499.3 | ||||||||||||
Debt issuance costs
|
– | (3.4 | ) | – | (3.4 | ) | ||||||||||
Purchase of treasury stock
|
(92.6 | ) | (4.4 | ) | (124.7 | ) | (7.5 | ) | ||||||||
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions
|
6.9 | (0.3 | ) | 29.1 | 2.1 | |||||||||||
Excess tax benefits from employee stock compensation plan transactions
|
2.5 | 0.5 | 8.1 | 5.2 | ||||||||||||
Principal payments on capital leases
|
(7.4 | ) | (2.9 | ) | (10.1 | ) | (5.3 | ) | ||||||||
Net cash provided by (used for) financing activities
|
(118.9 | ) | 425.9 | (89.0 | ) | 445.9 | ||||||||||
Effect of translation on cash
|
(8.2 | ) | (13.4 | ) | (26.4 | ) | (6.4 | ) | ||||||||
Increase (decrease) in cash and cash equivalents
|
635.7 | 166.5 | 532.3 | (69.9 | ) | |||||||||||
Cash and cash equivalents, beginning of period
|
1,082.4 | 662.5 | 1,185.8 | 898.9 | ||||||||||||
Cash and cash equivalents, end of period
|
$ | 1,718.1 | $ | 829.0 | $ | 1,718.1 | $ | 829.0 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Drilling & Production Systems
|
$ | 1,502.7 | $ | 1,617.2 | $ | 4,245.7 | $ | 3,306.6 | ||||||||
Valves & Measurement
|
523.8 | 549.8 | 1,062.3 | 1,077.8 | ||||||||||||
Process & Compression Systems
|
304.4 | 407.0 | 656.4 | 759.0 | ||||||||||||
Total
|
$ | 2,330.9 | $ | 2,574.0 | $ | 5,964.4 | $ | 5,143.4 |
June 30,
2013
|
December 31,
2012
|
June 30,
2012
|
||||||||||
Drilling & Production Systems
|
$ | 8,470.4 | $ | 6,576.4 | $ | 5,155.3 | ||||||
Valves & Measurement
|
1,063.0 | 1,051.0 | 1,144.0 | |||||||||
Process & Compression Systems
|
963.7 | 969.8 | 1,154.3 | |||||||||
Total
|
$ | 10,497.1 | $ | 8,597.2 | $ | 7,453.6 |
Three Months Ended June 30, 2013
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves & Measurement
|
Process & Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 195.6 | $ | 108.7 | $ | 23.2 | $ | (121.6 | ) | $ | 205.9 | |||||||||
Depreciation & amortization
|
43.6 | 9.9 | 8.8 | 7.8 | 70.1 | |||||||||||||||
Interest, net
|
– | – | – | 25.3 | 25.3 | |||||||||||||||
Other costs
|
– | – | – | 35.6 | 35.6 | |||||||||||||||
EBITDA, excluding other costs
|
$ | 239.2 | $ | 118.6 | $ | 32.0 | $ | (52.9 | ) | $ | 336.9 |
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 |
Six Months Ended June 30, 2013
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves & Measurement
|
Process & Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 350.0 | $ | 222.1 | $ | 45.2 | $ | (228.5 | ) | $ | 388.8 | |||||||||
Depreciation & amortization
|
87.4 | 19.8 | 17.6 | 15.2 | 140.0 | |||||||||||||||
Interest, net
|
– | – | – | 51.2 | 51.2 | |||||||||||||||
Other costs
|
– | – | – | 66.4 | 66.4 | |||||||||||||||
EBITDA, excluding other costs
|
$ | 437.4 | $ | 241.9 | $ | 62.8 | $ | (95.7 | ) | $ | 646.4 |
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 |
Three Months Ended June 30, 2013
|
||||||||
After Tax
|
Diluted EPS (2)
|
|||||||
Net income, as reported
|
$ | 140.4 | $ | 0.57 | ||||
Adjustments:
|
||||||||
Foreign currency losses(1)
|
3.3 | |||||||
OneSubsea tax consequences
|
24.2 | |||||||
Other costs(1) –
|
||||||||
OneSubsea formation costs
|
22.7 | |||||||
Acquisition integration costs
|
1.4 | |||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges
|
(2.2 | ) | ||||||
Currency devaluation, litigation, restructuring and other costs
|
6.6 | |||||||
Adjusted EPS
|
$ | 196.4 | $ | 0.79 |
(1)
|
Individual adjustments assume a 20.0% effective tax rate
|
(2)
|
Based on 248.1 million diluted shares
|
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 | |||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges
|
(1.2 | ) | ||||||
Litigation, restructuring and other costs
|
1.6 | |||||||
Adjusted EPS
|
$ | 182.4 | $ | 0.74 |
(1)
|
Individual adjustments assume a 21.7% effective tax rate
|
(2)
|
Based on 247.7 million diluted shares
|