Date of Report (Date of earliest event reported):
|
October 24, 2013
|
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
|
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
|
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
|
Item 9.01
|
Financial Statements and Exhibits.
|
Exhibit
Number
|
Exhibit Title or Description
|
|
Exhibit 99.1
|
Press Release of Cameron International Corporation, dated October 24, 2013 – Cameron Third Quarter Earnings.
|
CAMERON INTERNATIONAL CORPORATION
|
|
By: /s/ Charles M. Sledge
|
|
Charles M. Sledge
|
|
Senior Vice President and Chief Financial Officer
|
Exhibit
Number
|
Exhibit Title or Description
|
|
Press Release of Cameron International Corporation, dated October 24, 2013 – Cameron Third Quarter Earnings.
|
Contact:
|
Jeff Altamari
|
Vice President, Investor Relations
|
|
(713) 513-3344
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Drilling & Production Systems
|
$
|
1,636.8
|
$
|
1,279.7
|
$
|
4,344.2
|
$
|
3,477.6
|
||||||||
Valves & Measurement
|
502.5
|
536.0
|
1,558.3
|
1,585.5
|
||||||||||||
Process & Compression Systems
|
356.5
|
402.6
|
998.4
|
1,013.2
|
||||||||||||
Total revenues
|
2,495.8
|
2,218.3
|
6,900.9
|
6,076.3
|
||||||||||||
|
||||||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
1,780.7
|
1,568.2
|
4,899.8
|
4,297.5
|
||||||||||||
Selling and administrative expenses
|
346.6
|
285.0
|
986.2
|
842.6
|
||||||||||||
Depreciation and amortization
|
83.4
|
66.8
|
223.5
|
189.9
|
||||||||||||
Interest, net
|
23.2
|
25.1
|
74.4
|
69.8
|
||||||||||||
Other costs
|
13.9
|
3.4
|
80.2
|
11.8
|
||||||||||||
Total costs and expenses
|
2,247.8
|
1,948.5
|
6,264.1
|
5,411.6
|
||||||||||||
|
||||||||||||||||
Income before income taxes
|
248.0
|
269.8
|
636.8
|
664.7
|
||||||||||||
Income tax provision
|
(55.6
|
)
|
(46.2
|
)
|
(155.6
|
)
|
(132.5
|
)
|
||||||||
Net income
|
192.4
|
223.6
|
481.2
|
532.2
|
||||||||||||
Net income attributable to noncontrolling interests
|
2.8
|
–
|
2.8
|
–
|
||||||||||||
Net income attributable to Cameron
|
$
|
189.6
|
$
|
223.6
|
$
|
478.4
|
$
|
532.2
|
||||||||
|
||||||||||||||||
Earnings per share attributable to Cameron stockholders:
|
||||||||||||||||
Basic
|
$
|
0.78
|
$
|
0.91
|
$
|
1.95
|
$
|
2.16
|
||||||||
Diluted
|
$
|
0.78
|
$
|
0.90
|
$
|
1.94
|
$
|
2.15
|
||||||||
|
||||||||||||||||
Shares used in computing earnings per share attributable to Cameron stockholders:
|
||||||||||||||||
Basic
|
242.7
|
246.4
|
245.6
|
246.3
|
||||||||||||
Diluted
|
244.2
|
248.1
|
247.1
|
248.0
|
||||||||||||
|
||||||||||||||||
EBITDA, excluding other costs:
|
||||||||||||||||
Drilling & Production Systems
|
$
|
273.6
|
$
|
239.9
|
$
|
711.2
|
$
|
623.4
|
||||||||
Valves & Measurement
|
107.8
|
116.0
|
349.7
|
340.4
|
||||||||||||
Process & Compression Systems
|
43.1
|
50.6
|
105.9
|
106.5
|
||||||||||||
Corporate and other(1)
|
(56.0
|
)
|
(41.4
|
)
|
(151.9
|
)
|
(134.1
|
)
|
||||||||
Total
|
$
|
368.5
|
$
|
365.1
|
$
|
1,014.9
|
$
|
936.2
|
(1) | Corporate EBITDA amounts exclude $13.9 million and $80.2 million of other costs for the three- and nine-month periods ended September 30, 2013; and $3.4 million and $11.8 million for the three- and nine-month periods ended September 30, 2012. |
|
September 30,
2013
|
December 31,
2012
|
||||||
|
(unaudited)
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,257.0
|
$
|
1,185.8
|
||||
Short-term investments
|
498.2
|
517.0
|
||||||
Receivables, net
|
2,467.7
|
1,966.7
|
||||||
Inventories, net
|
3,216.3
|
2,741.2
|
||||||
Other
|
434.9
|
499.9
|
||||||
Total current assets
|
7,874.1
|
6,910.6
|
||||||
|
||||||||
Plant and equipment, net
|
1,926.9
|
1,765.1
|
||||||
Goodwill
|
2,939.9
|
1,923.9
|
||||||
Other assets
|
1,123.3
|
558.6
|
||||||
Total Assets
|
$
|
13,864.2
|
$
|
11,158.2
|
||||
|
||||||||
Liabilities and Stockholders’ Equity:
|
||||||||
Short-term debt
|
$
|
292.5
|
$
|
29.2
|
||||
Accounts payable and accrued liabilities
|
3,533.6
|
3,045.7
|
||||||
Accrued income taxes
|
88.1
|
94.1
|
||||||
Total current liabilities
|
3,914.2
|
3,169.0
|
||||||
|
||||||||
Long-term debt
|
1,820.5
|
2,047.0
|
||||||
Deferred income taxes
|
320.9
|
131.7
|
||||||
Other long-term liabilities
|
222.9
|
244.4
|
||||||
Total liabilities
|
6,278.5
|
5,592.1
|
||||||
|
||||||||
Stockholders’ Equity:
|
||||||||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at September 30, 2013 and December 31, 2012
|
2.6
|
2.6
|
||||||
Capital in excess of par value
|
3,170.5
|
2,094.6
|
||||||
Retained earnings
|
4,599.1
|
4,120.7
|
||||||
Accumulated other elements of comprehensive income (loss)
|
(92.2
|
)
|
(30.0
|
)
|
||||
Less: Treasury stock, 24,621,527 shares at September 30, 2013 (16,415,336 shares at December 31, 2012)
|
(1,145.1
|
)
|
(621.8
|
)
|
||||
Total Cameron stockholders’ equity
|
6,534.9
|
5,566.1
|
||||||
Noncontrolling interests
|
1,050.8
|
–
|
||||||
Total equity
|
7,585.7
|
5,566.1
|
||||||
|
||||||||
Total Liabilities and Stockholders’ Equity
|
$
|
13,864.2
|
$
|
11,158.2
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$
|
192.4
|
$
|
223.6
|
$
|
481.2
|
$
|
532.2
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation
|
61.7
|
53.6
|
177.1
|
153.0
|
||||||||||||
Amortization
|
21.7
|
13.2
|
46.4
|
36.9
|
||||||||||||
Non-cash stock compensation expense
|
13.4
|
9.7
|
40.7
|
31.3
|
||||||||||||
Deferred income taxes and tax benefit of employee stock compensation plan transactions transactions
|
18.8
|
(91.2
|
)
|
30.3
|
(59.6
|
)
|
||||||||||
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
|
||||||||||||||||
Receivables
|
(162.0
|
)
|
(65.9
|
)
|
(232.9
|
)
|
(49.1
|
)
|
||||||||
Inventories
|
(109.8
|
)
|
(127.3
|
)
|
(449.9
|
)
|
(439.5
|
)
|
||||||||
Accounts payable and accrued liabilities
|
211.4
|
74.2
|
218.9
|
(94.1
|
)
|
|||||||||||
Other assets and liabilities, net
|
(48.0
|
)
|
88.6
|
(105.3
|
)
|
27.1
|
||||||||||
Net cash provided by operating activities
|
199.6
|
178.5
|
206.5
|
138.2
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Proceeds from sales and maturities of short-term investments
|
259.3
|
262.7
|
887.6
|
775.0
|
||||||||||||
Purchases of short-term investments
|
(447.2
|
)
|
(207.3
|
)
|
(868.6
|
)
|
(715.6
|
)
|
||||||||
Capital expenditures
|
(123.3
|
)
|
(98.7
|
)
|
(305.9
|
)
|
(280.4
|
)
|
||||||||
Dispositions (acquisitions), net of cash acquired
|
(19.8
|
)
|
–
|
(10.8
|
)
|
(309.6
|
)
|
|||||||||
Proceeds received and cash acquired from formation of OneSubsea
|
–
|
–
|
603.0
|
–
|
||||||||||||
Proceeds from sales of plant and equipment
|
3.1
|
7.5
|
7.5
|
25.8
|
||||||||||||
Net cash provided by (used for) investing activities
|
(327.9
|
)
|
(35.8
|
)
|
312.8
|
(504.8
|
)
|
|||||||||
Cash flows from financing activities:
|
||||||||||||||||
Short-term loan borrowings (repayments), net
|
32.0
|
6.6
|
40.6
|
(37.9
|
)
|
|||||||||||
Issuance of senior debt
|
–
|
–
|
–
|
499.3
|
||||||||||||
Debt issuance costs
|
–
|
–
|
–
|
(3.4
|
)
|
|||||||||||
Purchase of treasury stock
|
(433.2
|
)
|
(5.0
|
)
|
(557.9
|
)
|
(12.5
|
)
|
||||||||
Contributions from noncontrolling interest owners
|
62.2
|
–
|
62.2
|
–
|
||||||||||||
Purchases of noncontrolling ownership interests
|
(7.2
|
)
|
–
|
(7.2
|
)
|
–
|
||||||||||
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions
|
0.9
|
8.3
|
30.0
|
10.4
|
||||||||||||
Excess tax benefits from employee stock compensation plan transactions
|
0.8
|
4.1
|
8.9
|
9.3
|
||||||||||||
Principal payments on capital leases
|
(2.9
|
)
|
(2.8
|
)
|
(13.0
|
)
|
(8.1
|
)
|
||||||||
Net cash provided by (used for) financing activities
|
(347.4
|
)
|
11.2
|
(436.4
|
)
|
457.1
|
||||||||||
Effect of translation on cash
|
14.6
|
7.8
|
(11.7
|
)
|
1.3
|
|||||||||||
Increase (decrease) in cash and cash equivalents
|
(461.1
|
)
|
161.7
|
71.2
|
91.8
|
|||||||||||
Cash and cash equivalents, beginning of period
|
1,718.1
|
829.0
|
1,185.8
|
898.9
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
1,257.0
|
$
|
990.7
|
$
|
1,257.0
|
$
|
990.7
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Drilling & Production Systems
|
$
|
2,205.1
|
$
|
1,475.6
|
$
|
6,450.8
|
$
|
4,782.2
|
||||||||
Valves & Measurement
|
497.3
|
485.8
|
1,559.6
|
1,563.6
|
||||||||||||
Process & Compression Systems
|
343.2
|
338.7
|
999.6
|
1,097.7
|
||||||||||||
Total
|
$
|
3,045.6
|
$
|
2,300.1
|
$
|
9,010.0
|
$
|
7,443.5
|
|
September 30,
2013
|
December 31,
2012
|
September 30,
2012
|
|||||||||
|
||||||||||||
Drilling & Production Systems
|
$
|
9,161.5
|
$
|
6,576.4
|
$
|
5,423.9
|
||||||
Valves & Measurement
|
1,057.6
|
1,051.0
|
1,083.8
|
|||||||||
Process & Compression Systems
|
940.4
|
969.8
|
1,090.0
|
|||||||||
Total
|
$
|
11,159.5
|
$
|
8,597.2
|
$
|
7,597.7
|
|
Three Months Ended September 30, 2013
|
|||||||||||||||||||
|
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
|||||||||||||||
Income (loss) before income taxes
|
$
|
216.2
|
$
|
98.1
|
$
|
34.2
|
$
|
(100.5
|
)
|
$
|
248.0
|
|||||||||
Depreciation & amortization
|
57.4
|
9.7
|
8.9
|
7.4
|
83.4
|
|||||||||||||||
Interest, net
|
−
|
−
|
−
|
23.2
|
23.2
|
|||||||||||||||
Other costs
|
−
|
−
|
−
|
13.9
|
13.9
|
|||||||||||||||
EBITDA, excluding other costs
|
$
|
273.6
|
$
|
107.8
|
$
|
43.1
|
$
|
(56.0
|
)
|
$
|
368.5
|
|
Three Months Ended September 30, 2012
|
|||||||||||||||||||
|
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
|||||||||||||||
Income (loss) before income taxes
|
$
|
198.8
|
$
|
105.6
|
$
|
41.7
|
$
|
(76.3
|
)
|
$
|
269.8
|
|||||||||
Depreciation & amortization
|
41.1
|
10.4
|
8.9
|
6.4
|
66.8
|
|||||||||||||||
Interest, net
|
–
|
–
|
–
|
25.1
|
25.1
|
|||||||||||||||
Other costs
|
–
|
–
|
–
|
3.4
|
3.4
|
|||||||||||||||
EBITDA, excluding other costs
|
$
|
239.9
|
$
|
116.0
|
$
|
50.6
|
$
|
(41.4
|
)
|
$
|
365.1
|
|
Nine Months Ended September 30, 2013
|
|||||||||||||||||||
|
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
|||||||||||||||
Income (loss) before income taxes
|
$
|
566.3
|
$
|
320.2
|
$
|
79.4
|
$
|
(329.1
|
)
|
$
|
636.8
|
|||||||||
Depreciation & amortization
|
144.9
|
29.5
|
26.5
|
22.6
|
223.5
|
|||||||||||||||
Interest, net
|
–
|
–
|
–
|
74.4
|
74.4
|
|||||||||||||||
Other costs
|
–
|
–
|
–
|
80.2
|
80.2
|
|||||||||||||||
EBITDA, excluding other costs
|
$
|
711.2
|
$
|
349.7
|
$
|
105.9
|
$
|
(151.9
|
)
|
$
|
1,014.9
|
|
Nine Months Ended September 30, 2012
|
|||||||||||||||||||
|
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
|||||||||||||||
Income (loss) before income taxes
|
$
|
510.2
|
$
|
309.3
|
$
|
79.2
|
$
|
(234.0
|
)
|
$
|
664.7
|
|||||||||
Depreciation & amortization
|
113.2
|
31.1
|
27.3
|
18.3
|
189.9
|
|||||||||||||||
Interest, net
|
–
|
–
|
–
|
69.8
|
69.8
|
|||||||||||||||
Other costs
|
–
|
–
|
–
|
11.8
|
11.8
|
|||||||||||||||
EBITDA, excluding other costs
|
$
|
623.4
|
$
|
340.4
|
$
|
106.5
|
$
|
(134.1
|
)
|
$
|
936.2
|
|
Three Months Ended September 30, 2013
|
|||||||
|
After Tax
|
Diluted EPS (3)
|
||||||
|
||||||||
Net income attributable to Cameron, as reported
|
$
|
189.6
|
$
|
0.78
|
||||
Adjustments:
|
||||||||
OneSubsea integration costs(1)
|
3.1
|
|||||||
Acquisition integration costs(2)
|
2.5
|
|||||||
Litigation, restructuring and other costs(2)
|
1.9
|
|||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges(2)
|
1.1
|
|||||||
Adjusted EPS attributable to Cameron stockholders
|
$
|
198.2
|
$
|
0.81
|
(1) | Cameron’s share of OneSubsea integration costs, net of tax at a rate of 25% |
(2) | Individual adjustments assume a 22.4% effective tax rate |
(3) | Based on 244.2 million diluted shares |
|
Three Months Ended September 30, 2012
|
|||||||
|
After Tax (1)
|
Diluted EPS (2)
|
||||||
|
||||||||
Net income attributable to Cameron, as reported
|
$
|
223.6
|
$
|
0.90
|
||||
Adjustments:
|
||||||||
Acquisition integration costs
|
4.4
|
|||||||
Mark-to-market impact on currency derivatives not designated as accounting hedges
|
(6.3
|
)
|
||||||
Litigation, restructuring and other costs
|
4.7
|
|||||||
Adjusted EPS attributable to Cameron stockholders
|
$
|
226.4
|
$
|
0.91
|
(1) | Individual adjustments assume a 17.1% effective tax rate |
(2) | Based on 248.1 million diluted shares |