Chart Industries, Inc. reports record net profits for 1997's first quarter.EASTLAKE Eastlake, city (1990 pop. 21,161), Lake co., NE Ohio, a suburb of Cleveland, on the Chagrin River and Lake Erie; inc. 1949. It has diversified light manufacturing industries. , Ohio--(BUSINESS WIRE)--April 28, 1997--Chart Industries, Inc. (NYSE NYSE See: New York Stock Exchange :CTI (Computer Telephone Integration) Combining data with voice systems in order to enhance telephone services. For example, automatic number identification (ANI) allows a caller's records to be retrieved from the database while the call is routed to the appropriate party. ) today reported financial results for the first quarter that ended March 31, 1997, and registered a 22 percent increase in sales and a 40 percent increase in earnings over the first quarter of 1996. A strong operating performance led to record quarterly earnings per share of $0.45. This is Chart's eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval consecutive quarter of improved bottom-line performance. Sales for the first quarter of 1997 rose 22.2 percent to $42.4 million from $34.7 million for the corresponding quarter in 1996. Record net income of $4.5 million, or $0.45 per share, for the 1997 first quarter increased 39.6 percent from $3.2 million, or $0.32 per share, for the 1996 first quarter. Commenting on Chart's 1997 first-quarter results, Arthur S. Holmes, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "Our operating performance is very gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. . We maintained our strong earnings performance while managing a challenging mix of products. We continue to track to our plan. First quarter sales rose 22 percent in a year-over-year comparison, a pace which we expect to maintain as we continue to raise throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. in 1997." "We have been working hard to boost production rates and reduce product lead times to improve our responsiveness to our customers' needs. Our investments in capacity, throughput and productivity improvements will continue." "The air separation and hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen markets continue healthy. We expect to increase order intake going forward as we shorten (audio, compression) Shorten - A form of lossless audio compression. lead times for Chart products. I am confident that Chart's 1997 fiscal year will set new records for sales and net income." Financial highlights are as follows (all figures are in thousands of dollars except per share amounts) -0-
Three months ended March 31
1997 1996 % Change
Sales $42,440 $34,727 22.2
Gross Profit 12,168 10,017 21.5
Net Income 4,481 3,209 39.6
Net Income per Share 0.45 0.32 40.6
CONSOLIDATED FIRST-QUARTER 1997 FINANCIAL RESULTS Sales for the three-month period ended March 31, 1997, were $42.4 million versus $34.7 million for the comparable 1996 period, an increase of $7.7 million, or 22.2 percent. Improved pricing, a higher volume of brazed aluminum heat exchangers heat exchanger Any of several devices that transfer heat from a hot to a cold fluid. In many engineering applications, one fluid needs to be heated and another cooled, a requirement economically accomplished by a heat exchanger. and higher levels of work accomplished on the LIGO LIGO Laser Interferometer Gravitational-Wave Observatory (CIT & MIT) LIGO Long Island Geocaching Organization (Bellport, New York) project accounted for the majority of the sales increase compared with the same period last year. The LIGO project which began in September 1995 generated $4.9 million of sales during the 1997 first quarter. Strong market conditions, which resulted in better pricing, volume, capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. , and company-wide productivity improvements produced gross profit for the 1997 first quarter of $12.2 million versus $10 million for the comparable period in 1996, an improvement of $2.2 million, or 21.5 percent. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the three-month period that ended March 31, 1997, was 28.7 percent, compared to 28.8 percent in Chart's 1996 first quarter. Stronger pricing for brazed aluminum heat exchangers was offset by lower margins in cold boxes and softer prices in stainless steel stainless steel: see steel. stainless steel Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. tubing. Selling, general and administrative (SG&A) expense for the three-month period that ended March 31, 1997, was $5.4 million, an increase of $500,000 over the first quarter of 1996. As a percentage of sales, SG&A expense dropped to 12.7 percent for the 1997 first quarter from 14.1 percent for the first quarter of 1996. The improvement is the result of increasing volume without increasing fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . Net interest income for the 1997 first quarter was $8,000 versus $237,000 of net interest expense for the prior year's first quarter. Lower debt levels, which resulted as the company's cash flow increased with improving operations, and income on the IRB-related escrow funds Noun 1. escrow funds - funds held in escrow cash in hand, finances, funds, monetary resource, pecuniary resource - assets in the form of money , which will be spent in the second or third quarter this year, contributed to producing net interest income for the 1997 first quarter. Cash provided by operations for the 1997 first quarter was $3.5 million compared with $9.4 million in 1996's first quarter. The company's 1997 first-quarter cash flow reflects less customer advances and progress billings, and LIGO increasing its cash draw while moving into full-scale manufacturing. Capital expenditures for the first quarter of 1997 were $2.1 million compared with $762,000 for the same period in 1996. The majority of the 1997 expenditures related to machinery and equipment at ALTEC ALTEC Algorithms for Future Technologies ALTEC All Technical (original name for Altec Lansing) for its plant expansion. During the first quarter, the company purchased 247,700 shares of common stock under the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program that was announced on November 19, 1996. The company forecasts sufficient cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses and available borrowings to fund interest payments, dividends and capital expenditures. As of March 31, 1997, the company's borrowings on its $25 million credit facility totaled $1.25 million, a small increase from the year-end balance of zero. The company was in compliance with all covenants related to this facility at March 31, 1997. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. Chart's consolidated firm order backlog at March 31, 1997, was $118.1 million, a decrease of $10.2 million from December 31, 1996. First quarter orders totaled $31.7 million. Air separation equipment bookings continued at a strong rate, with orders totaling $17.7 million in the 1997 first quarter. The order level resulted in backlog of $42.8 million at March 31, 1997, a decrease of $900,000 from December 31, 1996. Hydrocarbon processing equipment backlog stood at $39.4 million at the end of the 1997 first quarter, a decrease of $5.5 million from the December 31, 1996 level. Orders in this area, which generally carry stronger gross margins, totaled $3.1 million and should increase as the company continues to bid on many large projects and reduces its delivery time. Cryogenic cryogenic /cry·o·gen·ic/ (-jen´ik) producing low temperatures. cry·o·gen·ic adj. 1. Relating to or producing low temperatures. 2. and high-vacuum equipment backlog was $31.6 million at March 31, 1997. Sales in this area included $4.9 million related to the LIGO project, which has $20.5 million of backlog remaining for 1997 and 1998. Specialty products backlog totaled $4.3 million at March 31, 1997, on orders of $7.1 million. Low backlog in this area is not indicative of future sales as the stainless steel tubing market, the largest part of this product area, runs on a few-week lead time basis. Chart Industries, Inc., manufactures standard and custom-built industrial process equipment primarily for low-temperature and cryogenic applications. The company also manufactures other industrial equipment such as structural pipe supports, stainless steel tubing and high-vacuum systems. Headquartered in Eastlake, Ohio Eastlake is a city in Lake County, Ohio, United States. The population was 20,255 at the 2000 census. Eastlake is the site where FirstEnergy's Eastlake Generating Station shutdown at 1:31pm EDT on August 14, 2003, eventually leading to the infamous 2003 North America , Chart has operations located in Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , Massachusetts Massachusetts (măsəch`sĭts), most populous of the New England states of the NE United States. , New Hampshire, Ohio New Hampshire is an unincorporated community located in central Goshen Township, Auglaize County, Ohio, United States.Located between Wapakoneta and Lakeview at the intersection of U.S. , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York and Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee . (See attached financial tables) -0-
CHART INDUSTRIES, INC. AND SUBSIDIARIES
MARKET INFORMATION
FOR 1997'S FIRST QUARTER
Three months ended March 31, 1997
Percent Gross Percent Gross
Sales of Profit of Profit
($000) Total ($000) Total Margin
________________ _______________ ______
Air Separation $18,617 43.9% $ 4,769 39.2% 25.6%
Hydrocarbon Processing 8,582 20.2% 3,307 27.2% 38.5%
Cryogenic & High-Vacuum 9,470 22.3% 2,197 18.1% 23.2%
Specialty Products 5,771 13.6% 1,895 15.5% 32.8%
_______ _______
$42,440 100.0% $12,168 100.0% 28.7%
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands, except per share amounts)
March 31, December 31,
1997 1996
ASSETS ____________________________
Current Assets
Cash and cash equivalents $ 496 $ 4,304
Restricted cash 5,093 5,104
Accounts receivable 26,339 25,922
Inventories 20,149 21,727
Other current assets 3,733 3,630
____________________________
Total Current Assets 55,810 60,687
Property, plant & equipment, net 19,381 17,882
Other assets, net 2,530 2,627
____________________________
TOTAL ASSETS $ 77,721 $ 81,196
____________________________
____________________________
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 8,760 $ 8,582
Customer advances 14,193 12,698
Billings in excess of contract revenue 7,254 11,444
Accrued expenses and other liabilities 14,556 14,955
Short-term borrowings 1,250
Current portion of long-term debt 357 361
____________________________
Total Current Liabilities 46,370 48,040
Long-term debt 4,376 4,469
Deferred incomedoes not include all
of the information and footnotes required by generally accepted
accounting principlesNTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
,710
__,907
____________________________
Operating Income ____________________________
Income Before Income Taxes 6,790 4,873
I $ 0.45 $ 0.32
____________________________
10,085
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASHd
on and amortization 679 701
Contribution of treasury stock
to Chart's 4ing assets and liabilities:
Accounts receivable (417) 2,403
Inven (221) 1,433
Billings in excess of contract
revenue and customer advances (2,695) 1,763
____________________________
Net Cash Provided By (Used In)
Operating Activities 3,490 9,392
INVESTING ACTIVITIES
Capital expenditures (2,120) (762)
Other investing activities 39 (4)
____________________________
Net Cash Used in Investing Activities (2,081) (766)
FINANCING ACTIVITIES
Repayments of long-term debt (97) (338)
Repayments on credit facility (1,500) (11,750)
Borrowings on credit facility 2,750 4,250
Treasury stock and stock option
transactions (5,490) (151)
Dividends/distributions paid to
shareholders (891) (699)
____________________________
Net Cash (Used In) Provided by
Financing Activities (5,228) (8,688)
____________________________
Net increase (decrease) in cash and
cash equivalents (3,819) (62)
Cash and cash equivalents at
beginning of period 9,408 229
____________________________
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 5,589 $ 167
____________________________
____________________________
CONTACT: Chart Industries, Inc. Don Baines, 216/946-2525 Chief Financial Officer |
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