[April 26, 2017] |
|
TechnipFMC Reports First Quarter 2017 Diluted Earnings per Share of $0.41; Excluding Charges and Credits, Adjusted Diluted Earnings per Share of $0.71
Regulatory News:
TechnipFMC plc (Paris:FTI) (NYSE:FTI) (ISIN:GB00BDSFG982) (NYSE and
Euronext: FTI) today reported first quarter 2017 revenue of $3.4 billion.
Diluted earnings per share were $0.41, which includes total Company
pre-tax charges and credits of $193.5 million, or $0.30 per diluted
share as detailed in the attached financial schedules. Adjusted1
diluted earnings per share were $0.71.
Total Company net income was $190.8 million, including corporate income
due to foreign exchange gains; adjusted EBITDA was $684.4 million.
The Company also announced that its Board of Directors approved a
capital allocation plan that includes the authorization of a share
repurchase program of up to $500 million of the Company's stock to be
completed by the end of 2018 and planning for a quarterly dividend
following third quarter 2017 results. The implementation of this capital
allocation program is subject to U.K. required approval of distributable
reserves, which is expected to be completed in the third quarter of 2017.
"Our merger is completed. We are now leveraging the unparalleled breadth
of capabilities of TechnipFMC - from our industry-leading front-end
engineering, our culture of innovation that is bringing to market
next-generation solutions, to our reputation of superior project
management," said Doug Pferdehirt, CEO of TechnipFMC. "These
capabilities, coupled with our unique commercial alignment to deliver
efficiencies across the value chain, allow us to drive the change
required for real, sustainable improvement to project economics -
improvements which enable our customers to sanction more projects with
greater confidence in cost and time to production."
1 Adjusted results exclude the impact of charges and credits.
See reconciliation of U.S. GAAP to non-GAAP financial measures in the
attached tables.
"Although the global energy market remains challenged, we benefit from
the recovery of the short-cycle North America market as well as strong
execution on our backlog of longer cycle projects."
"In subsea, market acceptance of our combined offering has been
demonstrated by an acceleration of front-end studies. These studies are
being converted to iEPCI™ awards including the Shell Kaikias project.
Other recent project awards, including our award of ExxonMobil Liza,
further illustrate returning confidence in the subsea market."
Pferdehirt added, "Execution remains fundamental to our performance, and
our strong project management capability has been demonstrated, for
example, in our LNG project portfolio which delivered Petronas Satu, the
first-ever floating LNG (FLNG) to be operational, and continues to make
progress on both the Shell Prelude FLNG and Yamal LNG projects."
Pferdehirt concluded, "As our first quarter results have shown, it is
the remarkable women and men of TechnipFMC - now working together - who
provide the unparalleled ability and determination to drive real change
required in our industry."
Order Intake and Backlog
During the first quarter of 2017, the Company's order intake was $1.6
billion. The breakdown by business segment was as follows:
-
Subsea order intake of $666 million;
-
Onshore/Offshore order intake of $682 million; and
-
Surface Technologies order intake of $241.5 million.
At the end of the first quarter 2017, the Company's backlog was $16.1
billion, composed of the following:
-
Subsea backlog of $6.6 billion;
-
Onshore/Offshore backlog of $9.1 billion; and
-
Surface Technologies backlog of $0.4 billion.
Operational and Financial Highlights - First Quarter 20172
Subsea
Subsea reported first quarter revenues of $1.4 billion. Major projects
include Total Kaombo and Moho Nord, and ENI Jangkrik.
Revenues were down 42 percent, primarily due to a reduction in project
activity within Europe and Africa, partially offset by increased project
activity in Asia Pacific. Prior-year declines in inbound orders continue
to impact near-term revenues.
Vessel utilization rate for the first quarter of 2017 was 68 percent,
down from the 78 percent rate in the fourth quarter of 2016.
Subsea reported operating profit of $54.2 million; adjusted EBITDA was
$238.6 million with margins of 17.3 percent. Adjusted EBITDA margins
increased from the prior year pro forma results, despite the 42 percent
revenue decline. Operating performance reflected the results of strong
project execution, cost reductions, and restructuring.
2 Because this is the first quarter of operation following
our merger, we have prepared pro forma financial statements for 2016 as
if the merger had been completed on January 1, 2016. All prior year
quarter comparisons are to these pro forma results. In addition, because
our merger did not close until January 16, 2017, we have a sixteen day
"stub period" for FMC Technologies, Inc. that has been excluded from
this quarter.
Onshore/Offshore
Onshore/Offshore reported first quarter revenues of $1.8 billion. Major
projects include Yamal LNG, Shell Prelude FLNG, and SIBUR Zapsib 2.
Revenues declined 19 percent from the prior-year quarter on a pro forma
basis, which includes the full consolidation of Yamal LNG. Revenues were
lower as a result of reduced project activity, notably in the Middle
East and Americas.
Onshore/Offshore reported operating profit of $139.9 million; adjusted
EBITDA was $152.2 million with margins of 8.6 percent.
Adjusted EBITDA and margins improved year-over-year, compared with the
pro forma results, despite the revenue decline as project profitability
improved with the achievement of key construction milestones.
Surface Technologies
Surface Technologies reported first quarter revenue of $248.4 million.
Revenues were down 29 percent from the prior-year quarter, due in part
to the exclusion of the first sixteen days of the current year quarter.
In addition, the favorable impact from the continuing recovery in North
America was partially offset by competitive pricing in international
markets and lower product sales.
Surface Technologies reported an operating loss of $18.6 million;
adjusted EBITDA was $36 million with margins of 14.5 percent.
Adjusted EBITDA and margins significantly improved year-over-year,
despite the revenue decline primarily due to the benefit of product mix
related to fluid control sales and a more favorable cost structure.
Corporate Items
Corporate income in the first quarter was $204.2 million, which included
charges and credits of $51.1 million. The income in the quarter was
primarily due to foreign exchange gains of $306.9 million.
Net interest expense was $81.7 million in the quarter, including $67.7
million from the remeasurement of a liability payable to joint venture
partners.
Total depreciation and amortization for the first quarter was $154.1
million, including depreciation and amortization related to purchase
price accounting for the merger of $42.9 million.
Capital expenditures were $51.2 million.
The Company recorded a tax provision of $103.7 million. The reported tax
rate was 34.8 percent. Excluding the effects of the liability
remeasurement within net interest expense, for which there is no tax
benefit, the effective tax rate was 28.4 percent for the first quarter.
Summary
TechnipFMC reported first quarter diluted earnings per share of $0.41,
which included corporate income due to foreign exchange gains. Excluding
charges and credits, adjusted diluted earnings per share were $0.71.
Total Company operating profit was $379.7 million; adjusted EBITDA was
$684.4 million.
Quarterly segment performance is summarized below when compared to 2016
on a pro forma basis:
-
Subsea reported operating profit of $54.2 million. Adjusted EBITDA was
$238.6 million. Subsea improved adjusted EBITDA margins to 17.3
percent, despite a 42 percent revenue decline from the prior-year
quarter.
-
Onshore/Offshore reported operating profit of $139.9 million. Adjusted
EBITDA was $152.2 million with margins of 8.6 percent. Adjusted EBITDA
and margins increased year-over-year, despite a 19 percent revenue
decline.
-
Surface Technologies reported an operating loss of $18.6 million.
Adjusted EBITDA was $36 million with margins of 14.5 percent. Adjusted
EBITDA and margins increased year-over-year, despite a 29 percent
revenue decline.
Full-year 2017 guidance will be discussed on the Company's first quarter
earnings conference call.
The teleconference is scheduled at 1 p.m. London time (8 a.m. New York
time) on Thursday, April 27, 2017 and will be accompanied by a
supporting presentation that will be made available at http://investors.technipfmc.com
prior to the start of the teleconference.
###
About TechnipFMC
TechnipFMC is a global leader in subsea, onshore/offshore, and
surface projects. With our proprietary technologies and production
systems, integrated expertise, and comprehensive solutions, we are
transforming our clients' project economics.
We are uniquely positioned to deliver greater efficiency across
project lifecycles from concept to project delivery and beyond. Through
innovative technologies and improved efficiencies, our offering unlocks
new possibilities for our clients in developing their oil and gas
resources.
Each of our more than 40,000 employees is driven by a steady
commitment to clients and a culture of purposeful innovation,
challenging industry conventions, and rethinking how the best results
are achieved.
To learn more about us and how we are enhancing the performance of
the world's energy industry, go to TechnipFMC.com and follow us on
Twitter @TechnipFMC.
This communication contains "forward-looking statements" as defined
in Section 27A of the United States Securities Act of 1933, as amended,
and Section 21E of the United States Securities Exchange Act of 1934, as
amended. Words such as "believe," "expect," "anticipate," "plan,"
"intend," "foresee," "should," "would," "could," "may," "estimate,"
"outlook" and similar expressions are intended to identify
forward-looking statements, which are generally not historical in
nature. Such forward-looking statements involve significant risks,
uncertainties and assumptions that could cause actual results to differ
materially from our historical experience and our present expectations
or projections, including the following known material factors:
-
reductions in client spending or a slowdown in client payments;
-
unanticipated changes relating to competitive factors in our
industry;
-
demand for our products and services, which is affected by changes
in the price of, and demand for, crude oil and natural gas in domestic
and international markets;
-
potential liabilities arising out of the installation or use of our
products;
-
cost overruns that may affect profit realized on our fixed price
contracts;
-
disruptions in the timely delivery of our backlog and its effect on
our future sales, profitability, and our relationships with our
customers;
-
rising costs and availability of raw materials;
-
ability to hire and retain key personnel;
-
piracy risks for our maritime employees and assets;
-
ability to attract new clients and retain existing clients in the
manner anticipated;
-
compliance with and changes in legislation or governmental
regulations affecting us;
-
international, national or local economic, social or political
conditions that could adversely affect us or our clients;
-
risks associated with The Depositary Trust Company and Euroclear
for clearance services for shares traded on the NYSE and Euronext
Paris, respectively;
-
results on the United Kingdom's referendum on withdrawal from the
European union;
-
risks associated with being an English public limited company,
including the need for court approval of "distributable profits" and
stockholder approval of certain capital structure decisions;
-
compliance with covenants under our debt instruments and conditions
in the credit markets;
-
risks associated with assumptions we make in connection with our
critical accounting estimates and legal proceedings;
-
the risk that we may not be able to pay dividends or repurchase
shares in accordance with our announced capital allocation plan, or at
all;
-
the risks of currency fluctuations and foreign exchange controls
associated with our international operations;
-
risks that the legacy businesses of FMC Technologies, Inc. and
Technip S.A. will not be integrated successfully or that the combined
company will not realize estimated cost savings, value of certain tax
assets, synergies and growth or that such benefits may take longer to
realize than expected;
-
unanticipated costs of integration;
-
reliance on and integration of information technology systems;
-
risks associated with tax liabilities, or changes in U.S. federal
or international tax laws or interpretations to which they are
subject; and
-
such other risk factors set forth in our filings with the United
States Securities and Exchange Commission and in our filings with the
Autorité des marchés financiers or the U.K. Financial Conduct
Authority.
We caution you not to place undue reliance on any forward-looking
statements, which speak only as of the date hereof. We undertake no
obligation to publicly update or revise any of our forward-looking
statements after the date they are made, whether as a result of new
information, future events or otherwise, except to the extent required
by law.
The event will be available at http://investors.technipfmc.com.
An archived audio replay will be available after the event at the
same website address. In the event of a disruption of service or
technical difficulty during the call, information will be posted at http://investors.technipfmc.com.
TECHNIPFMC plc AND CONSOLIDATED SUBSIDIARIES GAAP
FINANCIAL STATEMENTS
The U.S. GAAP financial statements for TechnipFMC plc and consolidated
subsidiaries are provided on the following pages. The financial results
reflect the following information:
-
On January 16, 2017, TechnipFMC was created by the business
combination of Technip S.A. (Technip) and FMC Technologies, Inc. (FMC
Technologies).
-
In December of 2016, Technip increased its ownership in the Yamal LNG
Joint Venture
and became the controlling shareholder. Under US
GAAP, this resulted in full consolidation of the Joint Venture on the
date of the transaction.
Therefore, the results for the three months ended March 31, 2017:
1. Include Technip for the full period;
2. Include the results of FMC Technologies for the period January 17 to
March 31, 2017; revenues of $112.9 million during the period from
January 1 to January 16, 2017 were excluded, of which approximately 70
percent came from the Subsea segment; and
3. Fully consolidate the Yamal LNG Joint Venture for the full period,
within the Onshore/Offshore segment.
The results for the three months ended March 31, 2016 only include the
results of Technip, inclusive of the equity in affiliate income from the
Yamal LNG Joint Venture.
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (In millions except per share amounts)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
Three Months Ended
|
|
|
March 31
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
Revenue
|
$
|
3,388.0
|
|
$
|
|
2,405.7
|
Costs and expenses
|
|
3,345.1
|
|
|
|
2,209.3
|
|
|
42.9
|
|
|
|
196.4
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
336.8
|
|
|
|
11.7
|
|
|
|
|
|
|
|
Income before net interest expense and income taxes
|
|
379.7
|
|
|
|
208.1
|
Net interest expense
|
|
(81.7)
|
|
|
|
(13.3)
|
|
|
|
|
|
|
|
Income before income taxes
|
|
298.0
|
|
|
|
194.8
|
Provision for income taxes
|
|
103.7
|
|
|
|
47.5
|
|
|
|
|
|
|
|
Net income
|
|
194.3
|
|
|
|
147.3
|
Net (income) loss attributable to noncontrolling interests
|
|
(3.5)
|
|
|
|
0.1
|
|
|
|
|
|
|
|
Net income attributable to TechnipFMC plc
|
$
|
190.8
|
|
$
|
|
147.4
|
|
|
|
|
|
|
|
Earnings per share attributable to TechnipFMC plc:
|
|
|
|
|
|
|
Basic
|
$
|
0.41
|
|
$
|
|
1.25
|
Diluted
|
$
|
0.41
|
|
$
|
|
1.21
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
466.6
|
|
|
|
118.2
|
Diluted
|
|
468.9
|
|
|
|
124.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES BUSINESS SEGMENT DATA (In
millions)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
Three Months Ended
|
|
|
March 31
|
|
|
2017
|
|
|
|
2016
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsea
|
$
|
1,376.7
|
|
$
|
|
1,517.2
|
Onshore/Offshore
|
|
1,764.0
|
|
|
|
888.5
|
Surface Technologies
|
|
248.4
|
|
|
|
-
|
Other revenue and intercompany eliminations
|
|
(1.1)
|
|
|
|
-
|
|
$
|
3,388.0
|
|
$
|
|
2,405.7
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating profit (loss)
|
|
|
|
|
|
|
Subsea
|
$
|
54.2
|
|
$
|
|
196.4
|
Onshore/Offshore
|
|
139.9
|
|
|
|
58.5
|
Surface Technologies
|
|
(18.6)
|
|
|
|
-
|
Total segment operating profit
|
|
175.5
|
|
|
|
254.9
|
|
|
|
|
|
|
|
Corporate items
|
|
|
|
|
|
|
Corporate income (expense) (1)
|
|
204.2
|
|
|
|
(46.8)
|
Interest expense
|
|
(81.7)
|
|
|
|
(13.3)
|
Total corporate items
|
|
122.5
|
|
|
|
(60.1)
|
|
|
|
|
|
|
|
Net Income before income taxes (2)
|
$
|
298.0
|
|
$
|
|
194.8
|
|
(1) Corporate income (expense) primarily includes corporate staff
expenses, stock-based compensation expenses, other employee
benefits, certain foreign exchange gains and losses, and merger-related
transaction expenses.
|
(2) Includes amounts attributable to noncontrolling interests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES BUSINESS SEGMENT DATA (Unaudited
and in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
Inbound Orders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsea
|
|
$
|
|
|
|
666.0
|
|
$
|
|
|
|
490.4
|
|
|
|
|
|
|
|
Onshore/Offshore
|
|
|
|
|
|
682.0
|
|
|
|
|
|
530.7
|
|
|
|
|
|
|
|
Surface Technologies
|
|
|
|
|
|
241.5
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Total inbound orders
|
|
$
|
|
|
|
1,589.5
|
|
$
|
|
|
|
1,021.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
Order Backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsea
|
|
$
|
|
|
|
6,558.2
|
|
$
|
|
|
|
6,978.8
|
|
|
|
|
|
|
|
Onshore/Offshore
|
|
|
|
|
|
9,066.0
|
|
|
|
|
|
9,401.7
|
|
|
|
|
|
|
|
Surface Technologies
|
|
|
|
|
|
432.0
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Total order backlog
|
|
$
|
|
|
|
16,056.2
|
|
$
|
|
|
|
16,380.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
March 31,
|
|
|
|
December 31,
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
7,041.7
|
|
$
|
|
6,269.3
|
Trade receivables, net
|
|
2,433.3
|
|
|
|
2,024.5
|
Costs in excess of billings
|
|
1,036.8
|
|
|
|
485.8
|
Inventories, net
|
|
983.5
|
|
|
|
334.7
|
Other current assets
|
|
2,239.5
|
|
|
|
1,822.9
|
Total current assets
|
|
13,734.8
|
|
|
|
10,937.2
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
3,975.5
|
|
|
|
2,620.1
|
Goodwill
|
|
9,023.6
|
|
|
|
3,718.3
|
Intangible assets, net
|
|
1,580.0
|
|
|
|
255.4
|
Other assets
|
|
1,256.6
|
|
|
|
1,168.1
|
Total assets
|
$
|
29,570.5
|
|
$
|
|
18,699.1
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt
|
$
|
499.0
|
|
$
|
|
683.6
|
Accounts payable, trade
|
|
4,131.5
|
|
|
|
3,837.7
|
Advance payments
|
|
314.9
|
|
|
|
411.1
|
Billings in excess of costs
|
|
3,478.7
|
|
|
|
3,364.5
|
Other current liabilities
|
|
3,072.9
|
|
|
|
2,633.5
|
Total current liabilities
|
|
11,497.0
|
|
|
|
10,930.4
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
3,082.8
|
|
|
|
1,869.3
|
Other liabilities
|
|
1,431.5
|
|
|
|
820.0
|
TechnipFMC plc stockholders' equity
|
|
13,552.8
|
|
|
|
5,091.1
|
Noncontrolling interests
|
|
6.4
|
|
|
|
(11.7)
|
Total liabilities and equity
|
$
|
29,570.5
|
|
$
|
|
18,699.1
|
|
|
|
|
|
|
|
|
|
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31
|
|
|
|
|
2017
|
|
|
|
2016
|
|
Cash provided (required) by operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
$
|
|
194.3
|
|
$
|
|
147.3
|
|
Depreciation and amortization
|
|
|
154.1
|
|
|
|
74.6
|
|
Asset impairment charges
|
|
|
0.4
|
|
|
|
-
|
|
Trade accounts receivable, net and costs in excess of billings
|
|
|
267.7
|
|
|
|
8.8
|
|
Inventories, net
|
|
|
126.6
|
|
|
|
42.0
|
|
Accounts payable, trade
|
|
|
(168.8)
|
|
|
|
(84.0)
|
|
Advance payments and billings in excess of costs
|
|
|
(220.6)
|
|
|
|
(91.6)
|
|
Other
|
|
|
(202.7)
|
|
|
|
63.3
|
|
Net cash provided by operating activities
|
|
|
151.0
|
|
|
|
160.4
|
|
|
|
|
|
|
|
|
|
|
Cash provided (required) by investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(51.2)
|
|
|
|
(25.5)
|
|
Cash acquired in merger of Technip and FMC Technologies
|
|
|
1,479.2
|
|
|
|
-
|
|
Other investing
|
|
|
14.9
|
|
|
|
0.5
|
|
Net cash provided (required) by investing activities
|
|
|
1,442.9
|
|
|
|
(25.0)
|
|
|
|
|
|
|
|
|
|
|
Cash provided (required) by financing activities:
|
|
|
|
|
|
|
|
|
Net increase (decrease) in debt
|
|
|
(820.1)
|
|
|
|
(249.8)
|
|
Other financing
|
|
|
(45.4)
|
|
|
|
(19.4)
|
|
Net cash required by financing activities
|
|
|
(865.5)
|
|
|
|
(269.2)
|
|
|
|
|
|
|
|
|
|
|
Effect of changes in foreign exchange rates on cash and cash
equivalents
|
|
|
44.0
|
|
|
|
(97.7)
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
|
772.4
|
|
|
|
(231.5)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
6,269.3
|
|
|
|
3,178.0
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
$
|
|
7,041.7
|
|
$
|
|
2,946.5
|
|
|
|
|
|
|
|
|
|
|
TECHNIPFMC plc AND CONSOLIDATED SUBSIDIARIES NON-GAAP
FINANCIAL MEASURES
The Reconciliation of U.S. GAAP to non-GAAP financial measures for
TechnipFMC plc and consolidated subsidiaries are provided on the
following page. The financial results reflect the following information:
-
On January 16, 2017, TechnipFMC was created by the business
combination of Technip S.A. (Technip) and FMC Technologies, Inc. (FMC
Technologies).
-
In December of 2016, Technip increased its ownership in the Yamal LNG
Joint Venture and became the controlling shareholder. Under US GAAP,
this would have resulted in full consolidation of the Joint Venture on
the date of the transaction.
The Non-GAAP results for the three months ended March 31, 2017:
1. Include the results of Technip for the full period;
2. Include the results of FMC Technologies for the period January 17 to
March 31, 2017; revenues of $112.9 million during the period from
January 1 to January 16, 2017 were excluded, of which approximately
70 percent from Subsea and the remainder from Surface Technologies; and
3. Fully consolidate the Yamal LNG Joint Venture for the full period,
within the Onshore/Offshore segment.
The Non-GAAP pro forma results for the three months ended March 31, 2016:
1. Include the results of both Technip and FMC Technologies for the full
period;
2. Combine FMC Technologies' former Surface Technologies and Energy
Infrastructure segments to form the pro forma Surface Technologies
segment;
3. Purchase price accounting adjustments applied on an equal basis to
first quarter 2017 results to provide comparability; and
4. Fully consolidate the Yamal LNG Joint Venture for the full period,
within the Onshore/Offshore segment.
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION
OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions,
unaudited)
Charges and Credits
In addition to financial results determined in accordance with U.S.
generally accepted accounting principles (GAAP), the First Quarter 2017
Earnings Release also includes non-GAAP financial measures (as defined
in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as
amended) and describes performance on a year-over-year basis against
2016 pro forma results and measures. Net income, excluding charges and
credits, as well as measures derived from it (including Diluted EPS,
excluding charges and credits; Income before net interest expense and
taxes, excluding charges and credits ("Adjusted Operating profit");
Depreciation and amortization, excluding charges and credits; Earnings
before net interest expense, income taxes, depreciation and
amortization, excluding charges and credits ("Adjusted EBITDA"); and net
cash) are non-GAAP financial measures. Management believes that the
exclusion of charges and credits from these financial measures enables
investors and management to more effectively evaluate TechnipFMC's
operations and consolidated results of operations period-over-period,
and to identify operating trends that could otherwise be masked or
misleading to both investors and management by the excluded items. These
measures are also used by management as performance measures in
determining certain incentive compensation. The foregoing non-GAAP
financial measures should be considered by investors in addition to, not
as a substitute for or superior to, other measures of financial
performance prepared in accordance with GAAP. The following is a
reconciliation of the most comparable financial measures under GAAP to
the non-GAAP financial measures.
|
|
|
|
|
Three Months Ended
March 31, 2017
|
|
|
Net income attributable to TechnipFMC
plc
|
|
|
Net (income) loss attributable to noncontrolling interests
|
|
|
Provision for income taxes
|
|
|
Net interest expense
|
|
|
Income before net interest expense and income
taxes (Operating profit)
|
|
|
Depreciation and amortization
|
|
|
Earnings before net interest expense,
income taxes, depreciation and amortization (EBITDA)
|
TechnipFMC plc, as reported
|
$
|
190.8
|
$
|
|
(3.5)
|
$
|
|
103.7
|
$
|
|
(81.7)
|
$
|
|
379.7
|
$
|
|
154.1
|
$
|
|
533.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and (credits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and other charges
|
|
-
|
|
|
-
|
|
|
0.4
|
|
|
-
|
|
|
0.4
|
|
|
-
|
|
|
0.4
|
Restructuring and other severance charges
|
|
6.8
|
|
|
-
|
|
|
2.5
|
|
|
-
|
|
|
9.3
|
|
|
-
|
|
|
9.3
|
Business combination transaction and integration costs
|
|
38.8
|
|
|
-
|
|
|
15.9
|
|
|
-
|
|
|
54.7
|
|
|
-
|
|
|
54.7
|
Purchase price accounting adjustments
|
|
94.5
|
|
|
-
|
|
|
34.9
|
|
|
0.3
|
|
|
129.1
|
|
|
(42.9)
|
|
|
86.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted financial measures
|
$
|
330.9
|
$
|
|
(3.5)
|
$
|
|
157.4
|
$
|
|
(81.4)
|
$
|
|
573.2
|
$
|
|
111.2
|
$
|
|
684.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Three Months Ended
March 31, 2016
|
|
|
|
|
|
Net income attributable to TechnipFMC
plc
|
|
Net (income) loss attributable to noncontrolling interests
|
|
Provision for income taxes
|
|
Net interest expense
|
|
Income before net interest expense and income
taxes (Operating profit)
|
|
Depreciation and amortization
|
|
Earnings before net interest expense,
income taxes, depreciation and amortization (EBITDA)
|
TechnipFMC plc, as reported
|
$
|
123.3
|
$
|
|
0.1
|
$
|
|
26.7
|
$
|
|
(13.6)
|
$
|
|
163.5
|
$
|
|
160.5
|
$
|
|
324.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and (credits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and other charges
|
|
53.8
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
53.8
|
|
|
-
|
|
|
53.8
|
Restructuring and other severance charges
|
|
22.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
22.2
|
|
|
-
|
|
|
22.2
|
Purchase price accounting adjustments
|
|
94.5
|
|
|
-
|
|
|
34.9
|
|
|
0.3
|
|
|
129.1
|
|
|
(42.9)
|
|
|
86.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted financial measures
|
$
|
293.8
|
$
|
|
0.1
|
$
|
|
61.6
|
$
|
|
(13.3)
|
$
|
|
368.6
|
$
|
|
117.6
|
$
|
|
486.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
(In millions except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
Three Months Ended
|
|
|
March 31
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
(after-tax)
|
|
|
|
|
|
|
Net income attributable to TechnipFMC plc, as reported
|
$
|
191
|
$
|
|
|
147
|
|
|
|
|
|
|
|
Charges and (credits):
|
|
|
|
|
|
|
Impairment and other charges (1)
|
|
-
|
|
|
|
13
|
Restructuring and other severance charges (2)
|
|
7
|
|
|
|
12
|
Business combination transaction and integration costs (3)
|
|
39
|
|
|
|
-
|
Purchase price accounting adjustments (4)
|
|
95
|
|
|
|
-
|
|
|
|
|
|
|
|
Adjusted net income attributable to TechnipFMC plc
|
$
|
331
|
$
|
|
|
172
|
|
|
|
|
|
|
|
Diluted EPS attributable to TechnipFMC plc, as reported
|
$
|
0.41
|
$
|
|
|
1.21
|
|
|
|
|
|
|
|
Adjusted diluted EPS attributable to TechnipFMC plc
|
$
|
0.71
|
$
|
|
|
1.41
|
|
|
|
|
|
|
|
(1) Tax effect of nil and $6 million during the three months ended
March 31, 2017 and 2016, respectively.
|
(2) Tax effect of $3 million and $5 million during the three months
ended March 31, 2017 and 2016, respectively.
|
(3) Tax effect of $16 million and nil during the three months ended
March 31, 2017 and 2016, respectively.
|
(4) Tax effect of $35 million and nil during the three months ended
March 31, 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (In millions, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
|
|
|
|
|
|
Subsea
|
|
|
|
|
|
|
|
Onshore/Offshore
|
|
|
|
Surface Technologies
|
|
|
|
Corporate and Other
|
|
|
|
Total
|
|
|
|
Revenue
|
|
$
|
|
|
1,376.7
|
|
|
|
$
|
|
|
|
1,764.0
|
|
|
|
$
|
|
|
|
248.4
|
|
|
|
$
|
|
|
|
(1.1)
|
|
|
|
$
|
|
|
|
3,388.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported (pre-tax)
|
|
$
|
|
|
54.2
|
|
|
|
$
|
|
|
|
139.9
|
|
|
|
$
|
|
|
|
(18.6)
|
|
|
|
$
|
|
|
|
204.2
|
|
|
|
$
|
|
|
|
379.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and (credits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
Impairment and other charges
|
|
|
|
|
0.2
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
0.2
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
0.4
|
|
|
|
Restructuring and other severance charges
|
|
|
|
6.5
|
|
|
|
|
|
|
|
(0.3)
|
|
|
|
|
|
|
|
1.2
|
|
|
|
|
|
|
|
1.9
|
|
|
|
|
|
|
|
9.3
|
|
|
|
Business combination transaction and integration costs
|
|
|
|
1.5
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
0.8
|
|
|
|
|
|
|
|
52.3
|
|
|
|
|
|
|
|
54.7
|
|
|
|
Purchase price accounting adjustments - non-amortization related
|
|
|
|
55.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.2
|
|
|
|
|
|
|
|
(3.0)
|
|
|
|
|
|
|
|
86.2
|
|
|
|
Purchase price accounting adjustments - amortization related
|
|
|
|
34.0
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
9.0
|
|
|
|
|
|
|
|
(0.1)
|
|
|
|
|
|
|
|
42.9
|
|
|
|
Subtotal
|
|
|
|
|
97.2
|
|
|
|
|
|
|
|
(0.3)
|
|
|
|
|
|
|
|
45.4
|
|
|
|
|
|
|
|
51.1
|
|
|
|
|
|
|
|
193.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating profit
|
|
|
|
|
151.4
|
|
|
|
|
|
|
|
139.6
|
|
|
|
|
|
|
|
26.8
|
|
|
|
|
|
|
|
255.3
|
|
|
|
|
|
|
|
573.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Depreciation and amortization
|
|
|
|
|
87.2
|
|
|
|
|
|
|
|
12.6
|
|
|
|
|
|
|
|
9.2
|
|
|
|
|
|
|
|
2.2
|
|
|
|
|
|
|
|
111.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1)
|
|
$
|
|
|
238.6
|
|
|
|
$
|
|
|
|
152.2
|
|
|
|
$
|
|
|
|
36.0
|
|
|
|
$
|
|
|
|
257.5
|
|
|
|
$
|
|
|
|
684.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit margin, as reported
|
|
|
|
|
3.9%
|
|
|
|
|
|
|
|
7.9%
|
|
|
|
|
|
|
|
-7.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating profit margin
|
|
|
|
|
11.0%
|
|
|
|
|
|
|
|
7.9%
|
|
|
|
|
|
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin(1)
|
|
|
|
|
17.3%
|
|
|
|
|
|
|
|
8.6%
|
|
|
|
|
|
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Three Months Ended
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
Subsea
|
|
|
|
|
|
|
|
Onshore/Offshore
|
|
|
|
Surface Technologies
|
|
|
|
Corporate and Other
|
|
|
|
Total
|
|
|
|
Revenue, as pro forma
|
|
$
|
|
|
2,378.0
|
|
|
|
$
|
|
|
|
2,181.9
|
|
|
|
$
|
|
|
|
349.6
|
|
|
|
$
|
|
|
|
(4.9)
|
|
|
|
$
|
|
|
|
4,904.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (pre-tax), as pro forma
|
|
$
|
|
|
216.9
|
|
|
|
$
|
|
|
|
58.4
|
|
|
|
$
|
|
|
|
(75.1)
|
|
|
|
$
|
|
|
|
(36.7)
|
|
|
|
$
|
|
|
|
163.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and (credits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and other charges
|
|
|
|
|
0.1
|
|
|
|
|
|
|
|
19.4
|
|
|
|
|
|
|
|
34.2
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
53.8
|
|
|
|
Restructuring and other severance charges
|
|
|
|
0.3
|
|
|
|
|
|
|
|
16.0
|
|
|
|
|
|
|
|
5.8
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
22.2
|
|
|
|
Purchase price accounting adjustments - non-amortization related
|
|
|
|
55.0
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
34.2
|
|
|
|
|
|
|
|
(3.0)
|
|
|
|
|
|
|
|
86.2
|
|
|
|
Purchase price accounting adjustments - amortization related
|
|
|
|
34.0
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
9.00
|
|
|
|
|
|
|
|
(0.1)
|
|
|
|
|
|
|
|
42.9
|
|
|
|
Subtotal
|
|
|
|
|
89.5
|
|
|
|
|
|
|
|
35.4
|
|
|
|
|
|
|
|
83.3
|
|
|
|
|
|
|
|
(3.1)
|
|
|
|
|
|
|
|
205.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit
|
|
|
|
|
306.4
|
|
|
|
|
|
|
|
93.8
|
|
|
|
|
|
|
|
8.2
|
|
|
|
|
|
|
|
(39.8)
|
|
|
|
|
|
|
|
368.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Depreciation and Amortization
|
|
|
|
|
89.7
|
|
|
|
|
|
|
|
9.1
|
|
|
|
|
|
|
|
20.8
|
|
|
|
|
|
|
|
(2.0)
|
|
|
|
|
|
|
|
117.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1)
|
|
$
|
|
|
396.1
|
|
|
|
$
|
|
|
|
102.9
|
|
|
|
$
|
|
|
|
29.0
|
|
|
|
$
|
|
|
|
(41.8)
|
|
|
|
$
|
|
|
|
486.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit margin, as pro forma
|
|
|
|
|
9.1%
|
|
|
|
|
|
|
|
2.7%
|
|
|
|
|
|
|
|
-21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating profit margin
|
|
|
|
|
12.9%
|
|
|
|
|
|
|
|
4.3%
|
|
|
|
|
|
|
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin(1)
|
|
|
|
|
16.7%
|
|
|
|
|
|
|
|
4.7%
|
|
|
|
|
|
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amounts attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES RECONCILIATION
OF GAAP TO NON-GAAP FINANCIAL MEASURES (In
millions, unaudited)
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
|
7,041.7
|
|
$
|
|
6,269.3
|
Short-term debt and current portion of long-term debt
|
|
|
|
|
(499.0)
|
|
|
|
(683.6)
|
Long-term debt, less current portion
|
|
|
|
|
(3,082.8)
|
|
|
|
(1,869.3)
|
Net cash
|
|
|
$
|
|
3,459.9
|
|
$
|
|
3,716.4
|
|
|
|
|
|
|
|
|
|
|
Net cash (debt) is a non-GAAP financial measure reflecting cash and
cash equivalents, net of debt. Management uses this non-GAAP
financial measure to evaluate TechnipFMC's capital structure and
financial leverage. Management believes net cash (debt) is a
meaningful financial measure that may also assist investors in
understanding TechnipFMC's financial condition and underlying trends
in its capital structure.
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170426006892/en/
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|