Chart Industries Announces Financial Results for 1997's Second Quarter and First Half.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)--August 4, 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 second quarter and six months that ended June June: see month. 30, 1997. Continued strong sales of Chart's engineered equipment, combined with improvements in 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. and productivity, led to the Company's twelfth consecutive quarter of record earnings per share. Sales for the second quarter of 1997 were $41.8 million, an increase of 36.4 percent from $30.6 million for the same quarter last year. Net income for the 1997 second quarter rose to a new quarterly record of $4.7 million, or $.32 per share, from $3.5 million, or $.23 per share, for the 1996 second quarter. Earnings-per-share figures have been adjusted to reflect the 3 for 2 stock split distributed June 30, 1997. For the first six months of 1997, sales advanced 28.9 percent to $84.2 million from $65.3 million for the corresponding period in 1996. First-half net income increased 35.9 percent to $9.2 million, or $.62 per share, from $6.7 million, or $.45 per share, for the first half of 1996. Commenting on Chart's results, Arthur Arthur, king of Britain: see Arthurian legend. Arthur king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28] See : Heroism S. Holmes, Chairman and Chief Executive Officer, said, "I am very pleased with our operating performance for the second quarter and first half of 1997. Efforts to increase operating throughput have yielded continued strong sales and produced improved gross profit margins 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. , boosting our earnings to record levels." "The 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 and air separation markets continue to be exceptionally strong. New orders for the quarter exceeded sales by $8.6 million, which increased our consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: 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. to $126.6 million at mid-year. This is the second highest quarter-end backlog recorded by Chart and reflects our strong markets and Chart's market share gains." "The Company completed its acquisition of Cryenco Sciences, Inc. on July July: see month. 31, 1997. Effective August 1, 1997, Chart's financial results will include Cryenco's operations. Later in the third quarter, we are scheduled to bring additional production capacity on-line at our ALTEC ALTEC Algorithms for Future Technologies ALTEC All Technical (original name for Altec Lansing) International subsidiary. These major additions should further enhance our sales and net profit performance in the future." Financial highlights are as follows (all figures are in thousands of dollars except per share amounts): -0-
Three Months Ended June 30,
1997 1996 % Change
Sales $41,758 $30,612 36.4
Gross profit 13,474 9,784 37.7
Net income 4,701 3,548 32.5
Net income per share .32 .23 39.1
Six Months Ended June 30,
1997 1996 % Change
Sales $84,198 $65,339 28.9
Gross profit 25,642 19,801 29.5
Net income 9,182 6,757 35.9
Net income per share .62 .45 37.8
CONSOLIDATED SECOND QUARTER 1997 FINANCIAL RESULTS Sales for the three-month period that ended June 30, 1997, were $41.8 million versus $30.6 million for the comparable 1996 period, an increase of $11.1 million, or 36.4 percent. This quarter-over-quarter growth in sales was primarily the result of increased cold box sales for both the air separation and hydrocarbon processing equipment markets. Also showing strong sales for the quarter compared to last year's second quarter, were 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. , the LIGO LIGO Laser Interferometer Gravitational-Wave Observatory (CIT & MIT) LIGO Long Island Geocaching Organization (Bellport, New York) project, and other high-vacuum equipment. Gross profit for the three-month period that ended June 30, 1997, was $13.5 million versus $9.8 million for the comparable period in 1996, an improvement of $3.7 million, or 37.7 percent. For the first quarter of 1997, gross profit was $12.2 million. Strong market conditions, particularly in the air separation equipment market and increasingly in the hydrocarbon processing equipment market, continued to support good pricing and higher throughput. Gross profit margin for the three-month period that ended June 30, 1997, was 32.3 percent and tracks well to the 32 percent reported for the 1996 second quarter. The 1997 second quarter gross profit margin also reflects recovery from 28.7 percent for the 1997 first quarter. Products supporting this strong second quarter margin performance included brazed aluminum heat exchangers, cold box design and fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. , cryogenic cryogenic /cry·o·gen·ic/ (-jen´ik) producing low temperatures. cry·o·gen·ic adj. 1. Relating to or producing low temperatures. 2. tanks, and cryogenic components. Selling, general and administrative (SG&A) expense for the three-month period that ended June 30, 1997, was $6.3 million, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.9 million higher than the second quarter of 1996 and $900,000 higher than the first quarter of 1997. Increased SG&A expense in the second quarter of 1997 compared with the year-ago quarter was in support of increased sales and other one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. changes occurring during the quarter. As a percentage of sales, SG&A expense was 15.1 percent for the second quarter of 1997 versus 14.3 percent and 12.7 percent for the second quarter of 1996 and the first quarter of 1997, respectively. Net interest expense for the three-month period that ended June 30, 1997, was $26,000 versus $181,000 for the second quarter of 1996. For the first quarter of 1997, the Company reported net interest income of $8,000. The Company has significantly reduced its level of borrowings from last year but still has borrowings from time to time as cash needs vary. As a result of the foregoing, Chart reported record net income for the three-month period that ended June 30, 1997, of $4.7 million, or $.32 per share, versus $3.6 million, or $.23 per share, for the second quarter of 1996 and $4.5 million, or $.30 per share, for the first quarter of 1997. The improvement in net income from the previous quarter represents the Company's twelfth consecutive quarter of improved profitability. Cash provided by operations during the three-month period that ended June 30, 1997, was $600,000 compared with $10.4 million for 1996's second quarter and $3.5 million for 1997's first quarter. The Company's 1996 cash flow represented earnings in addition to significant cash flow from customer advances and milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. billings Billings, city (1990 pop. 81,151), seat of Yellowstone co., S Mont., on the Yellowstone River, in a valley surrounded by seven mountain ranges; inc. as a city 1885. on many jobs in backlog. During the second quarter of 1997, much of the LIGO-project work progressed against previous billings, thus, incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. costs without new inflows of cash. This will continue into the third quarter as Chart progresses further into the LIGO manufacturing program. Capital expenditures for the second quarter of 1997 were $2.1 million compared with $847,000 for the same period in 1996. Capital expenditures throughout 1997 are principally related to the expansion at the ALTEC facility. These expenditures will be funded, for the most part, from Chart's restricted cash derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the recent Industrial Revenue Bond. The Company anticipates 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, the acquisition of Cryenco and planned capital expenditures. As of June 30, 1997, the Company's borrowings on its $25 million credit facility totaled $2.5 million. The Company negotiated a new $45 million credit facility to enable it to complete the acquisition of Cryenco. Backlog Chart's consolidated firm order backlog at June 30, 1997, was $126.6 million versus $118.1 million at March 31, 1997. Air Separation equipment bookings continued at strong levels, with orders totaling $19.4 million for the 1997 second quarter. Backlog at June 30, 1997, was $45.4 million after supporting strong quarterly sales of $16.9 million. Hydrocarbon processing equipment backlog reached $53.2 million at June 30, 1997, an increase of $13.8 million over March 31, 1997 levels. New orders during the quarter totaled $23.0 million against sales of $9.8 million. The new orders included numerous brazed aluminum heat exchangers and LNG LNG (liquefied natural gas): see under natural gas. Core-in-Kettle(R) units as well as an order to fabricate several large coldboxes for export to Trinidad Trinidad (trēnēthäth`), town (1983 est. pop. 43,500), Sancti Spíritus prov., central Cuba. Tobacco processing is the chief industry, although other agricultural processing has been developed. . The Company has experienced strong demand for hydrocarbon processing equipment, including the innovative Core-in-Kettle(R) products from the growth of the international ethylene ethylene (ĕth`əlēn') or ethene (ĕth`ēn), H2C=CH2, a gaseous unsaturated hydrocarbon. It is the simplest alkene. market. Cryogenic and high-vacuum equipment backlog was $24.9 million at the end of the 1997 second quarter, with the LIGO project accounting for $16.5 million of this backlog. New orders totaled $2.5 million, reflecting continued demand for Chart's standard cryogenic products, including helium helium (hē`lēəm), gaseous chemical element; symbol He; at. no. 2; at. wt. 4.0026; m.p. below −272°C; at 26 atmospheres pressure; b.p. −268.934°C; at 1 atmosphere pressure; density 0. systems and large cryopumps. Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. products backlog totaled $3.1 million at June 30, 1997, down $1.1 million from the first quarter of 1997. Chart Industries Inc., manufactures standard and custom-built cus·tom-built adj. Built according to the specifications of the buyer. custom-built or -made Adjective made according to the specifications of an individual customer Noun industrial process equipment primarily for low-temperature and cryogenic applications. The Company also manufactures other industrial equipment such as structural pipe supports, 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 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). , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , 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 SECOND QUARTER AND HALF YEAR
Three months ended June 30, 1997
Percent Gross Percent Gross
Sales of Margin of Profit
($000) Total ($000) Total Margin
___________________ ________________ ______
Air Separation $16,857 40.4% $5,961 44.2% 35.4%
Hydrocarbon Processing 9,761 23.4% 3,864 28.7% 39.6%
Cryogenic &
High-Vacuum 9,411 22.5% 1,861 13.8% 19.8%
Specialty Products 5,729 13.7% 1,788 13.3% 31.2%
_______ _______ _______ ______ _____
$41,758 100.0% $13,474 100.0% 32.3%
Six months ended June 30, 1997
Percent Gross Percent Gross
Sales of Margin of Profit
($000) Total ($000) Total Margin
_________________ ________________ ______
Air Separation $35,474 42.1% $10,730 41.8% 30.3%
Hydrocarbon
Processing 18,343 21.8% 7,171 28.0% 39.1%
Cryogenic &
High-Vacuum 18,881 22.4% 4,058 15.8% 21.5%
Specialty Products 11,500 13.7% 3,683 14.4% 32.0%
_______ ______ _______ ______ _____
$84,198 100.0% $25,642 100.0% 30.5%
For more information on Chart Industries Inc., via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , visit our Corporate News on the Net page at http://www.businesswire.com/cnn/cti.htm or via fax through our News On Demand service at (800) 311-7462. -0-
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands, except per share amounts)
June 30, 1997 December 31, 1996
___________________________________
ASSETS
Current Assets
Cash and cash equivalents $41 $4,304
Restricted cash 4,597 5,104
Accounts receivable 21,993 25,922
Inventories 19,984 21,727
Other current assets 5,478 3,630
___________________________________
Total Current Assets 52,093 60,687
Property, plant & equipment, net 20,864 17,882
Other assets, net 2,324 2,627
___________________________________
TOTAL ASSETS $75,281 $81,196
___________________________________
___________________________________
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $5,755 $8,582
Customer advances 15,359 12,698
Billings in excess of
contract revenues 2,325 11,444
Accrued expenses and other
liabilities 13,641 14,955
Current portion of long-term debt 2,896 361
___________________________________
Total Current Liabilities $39,976 $48,040
Long-term debt 4,238 4,469
Deferred income taxes 591 591
Shareholders' Equity 30,476 28,096
___________________________________
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $75,281 $81,196
___________________________________
___________________________________
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
__________________ _________________
1997 1996 1997 1996
__________________ _________________
Sales $41,758 $30,612 $84,198 $65,339
Cost of products sold 28,284 20,828 58,556 45,538
__________________ _________________
Gross profit 13,474 9,784 25,642 19,801
Selling, general &
administrative expense 6,326 4,383 11,712 9,290
__________________ _________________
Operating income 7,148 5,401 13,930 10,511
Interest expense, net 26 181 18 418
__________________ _________________
Income before
income taxes 7,122 5,220 13,912 10,093
Income taxes 2,421 1,672 4,730 3,336
__________________ _________________
Net income $4,701 $3,548 $9,182 $6,757
__________________ _________________
__________________ _________________
Net income per
Common Share $0.32 $0.23 $0.62 $0.45
__________________ _________________
__________________ _________________
Shares used in per share
calculations 14,733 15,195 14,846 15,167
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
Three Months Ended
June 30,
__________________
1997 1996
__________________
OPERATING ACTIVITIES
Net income $4,701 $3,548
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 685 721
Contribution of treasury stock
to 401K plans 150 198
Deferred income taxes 0 (110)
Increase (decrease) in cash resulting from
changes in operating assets and liabilities:
Accounts receivable 4,346 4,344
Inventory and other current assets (1,580) (3,739)
Accounts payable and accrued liabilities(3,920) (293)
Billings in excess of contract revenue
and customer advances (3,763) 5,738
__________________
Net Cash Provided By Operating Activities 619 10,407
INVESTING ACTIVITIES
Capital expenditures (2,119) (847)
Purchase of land and building at PSI 0 (3,578)
Other investing activities 157 66
__________________
Net Cash Used In Investing Activities (1,962) (4,359)
FINANCING ACTIVITIES
Repayments of long-term debt (99) (2,715)
Repayments on credit facility (6,250) (12,250)
Borrowings on credit facility 7,500 10,250
Treasury stock and stock option transactions 117 (231)
Dividends/distributions paid to shareholders (876) (700)
__________________
Net Cash Used In Financing Activities 392 (5,646)
__________________
Net increase (decrease) in cash and
cash equivalents (951) 402
Cash and cash equivalents at
beginning of period 5,589 167
__________________
CASH AND CASH EQUIVALENTS AT END OF PERIOD $4,638 $569
__________________
__________________
Six Months Ended
June 30,
________________
1997 1996
________________
OPERATING ACTIVITIES
Net income $9,182 $6,757
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 1,364 1,422
Contribution of treasury stock to
401K plans 338 305
Deferred income taxes 0 (110)
Increase (decrease) in cash resulting from
changes in operating assets and liabilities:
Accounts receivable 3,929 6,747
Inventory and other current assets (105) (3,963)
Accounts payable and accrued
liabilities (4,141) 1,140
Billings in excess of contract revenue
and customer advances (6,458) 7,501
________________
Net Cash Provided By Operating Activities 4,109 19,799
INVESTING ACTIVITIES
Capital expenditures (4,239) (1,609)
Purchase of land and building at PSI 0 (3,578)
Other investing activities 196 62
________________
Net Cash Used In Investing Activities (4,043) (5,125)
FINANCING ACTIVITIES
Repayments of long-term debt (196) (3,053)
Repayments on credit facility (7,750) (24,000)
Borrowings on credit facility 10,250 14,500
Treasury stock and stock option
transactions (5,373) (382)
Dividends/distributions paid to
shareholders (1,767) (1,399)
________________
Net Cash Used In Financing Activities (4,836) (14,334)
________________
Net increase (decrease) in cash and
cash equivalents (4,770) 340
Cash and cash equivalents at
beginning of period 9,408 229
________________
CASH AND CASH EQUIVALENTS AT END OF PERIOD $4,638 $569
________________
________________
CONTACT: Chart Industries, Inc. Don Baines Baines is a surname, and may refer to
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