Chart Industries Reports 2002 Third-Quarter Results.Business Editors CLEVELAND--(BUSINESS WIRE)--Nov. 4, 2002 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 results for the third quarter and nine months ended September September: see month. 30, 2002. Sales for the third quarter of 2002 were $74.2 million, down eight percent from $80.6 million for the corresponding quarter of 2001. The net loss was $0.7 million, or $0.03 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the third quarter of 2002 compared with a net loss of $1.2 million, or $0.05 per diluted share, for the third quarter of 2001. Orders in the third quarter of 2002 totaled $87.8 million, compared with $77.2 million in the second quarter of 2002 and $68.0 million in the third quarter of 2001. Effective January January: see month. 1, 2002, the Company adopted the non-amortization provisions of Statement of Financial Accounting Standards ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ") No. 142 "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ." If such provisions had been in effect for 2001, the Company would have had net income in the third quarter of 2001 of $0.1 million, or $0.00 per diluted share. In the third quarter of 2002, the Company recorded employee separation and plant closure costs of $2.2 million and non-cash write-offs of inventory included in cost of sales of $0.6 million for the previously announced consolidations of certain manufacturing facilities. These charges compare with $0.2 million of employee separation and plant closure costs and a $0.5 million gain on the sale of a product line recorded in the third quarter of 2001. The net effect of these items was an increase in net loss of $2.8 million, or $0.07 per diluted share, in the third quarter of 2002 and a decrease in net loss of $0.3 million, or $0.01 per diluted share, in the third quarter of 2001. Sales for the first nine months of 2002 were $221.1 million, down 13 percent from $254.4 million for the corresponding period in 2001. For the first nine months of 2002, the net loss was $3.8 million, or $0.15 per diluted share, compared with a net loss of $1.2 million, or $0.05 per diluted share, for the first nine months of 2001. If the non-amortization provisions of SFAS No. 142 had been in effect for 2001, the Company would have had net income in the first nine months of 2001 of $2.8 million, or $0.11 per diluted share. The Company and its lenders use earnings before interest, taxes, depreciation, amortization and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. ("EBITDAR Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring Costs - EBITDAR An indicator of a company's financial performance calculated as: = Revenue - Expenses (excluding tax, interest, depreciation, amortization, and restructuring costs) "), an alternative measure of performance, in the calculations that measure the Company's compliance with the financial covenants of its Credit Agreement. Restructuring charges, as defined under the Company's Credit Agreement, include several expenses that are not considered restructuring charges under accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In addition to the employee separation and plant closure costs and inventory write-offs described above, the Company's Credit Agreement permits the add-back of an additional $1.1 million, or $0.03 per diluted share, of expenses incurred in the third quarter of 2002 to compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. EBITDAR. This definition of EBITDAR is not comparable to similarly titled measures reported by other companies. The Company and its lenders believe EBITDAR is an indicator of the recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. amount of cash available to service principal and interest payments related to the Company's debt obligations. The Company generated $10.5 million of EBITDAR in both the third quarter of 2002 and the third quarter of 2001 and $8.8 million of EBITDAR in the second quarter of 2002. Actual 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 in the third quarter of 2002 was $8.5 million compared with $7.0 million in the third quarter of 2001 and $0.1 million in the second quarter of 2002. Commenting on Chart's results for the third quarter and first nine months of 2002, 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, "Although our operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $3.5 million for the third quarter of 2002 was lower than our operating income of $5.5 million in the second quarter of 2002, EBITDAR as computed under our Credit Agreement was up 19 percent in the third quarter of 2002 compared with the second quarter of 2002. This increase occurred despite a sales decline of six percent and a gross profit decline of seven percent." "The Process Systems and Equipment ("PS&E") segment recorded strong order intake, led by the award of significant orders from Bechtel  This article requires authentication or verification by an expert.Please assist in recruiting an expert or [ improve this article] yourself. See the talk page for details. for 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 cold boxes to equip e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. a large liquid natural gas ("LNG LNG (liquefied natural gas): see under natural gas. ") facility. These orders increased the PS&E 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 $41.8 million, the highest backlog level for this segment in two years. Sales for the PS&E segment were below plan for the quarter due to timing and mix of shipments. The gross margin level was abnormally ab·nor·mal adj. Not typical, usual, or regular; not normal; deviant. [Alteration (influenced by ab-1) of obsolete anormal, from Medieval Latin depressed during the quarter due to some non-cash inventory write-offs and under-absorption of fixed manufacturing facility costs caused by low production volume in the Company's heat exchanger business." Mr. Holmes continued, "Our Distribution and Storage ("D&S") segment was below plan in orders and sales for the third quarter of 2002. Macro-economic indicators suggest that portions of the economy are currently experiencing a reduction in economic growth. The D&S segment experienced the start of a recovery in the second quarter of 2002 and then a sudden downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in industrial demand in the third quarter of 2002. This has resulted in sales and earnings growth compared to recent quarters, but at growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. lower than our earlier expectations. Gross profit and gross margin improved in the third quarter of 2002, but on a lower sales volume than anticipated." "The Applied Technologies ("AT") segment performed as anticipated in the third quarter of 2002. Although sales were somewhat below plan, gross margin performance continued to improve and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was above plan. Excellent performance in our biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. product lines provided the uplift. Order intake for this segment was down, primarily due to timing delays on LNG fueling opportunities." Commenting further, Mr. Holmes stated, "During the third quarter of 2002, we continued our plans to restructure our organization and consolidate manufacturing facilities to remove excess capacity and lower our fixed overhead costs overhead costs see fixed costs. . A total of $2.8 million of restructuring charges were included in employee separation and plant closure costs and cost of sales related to these initiatives. Early in the third quarter of 2002 we requested bank approval to proceed with the third phase of our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan, which includes the closure of several manufacturing facilities. While we anticipate approval of this request, we have not yet been given authorization The right or permission to use a system resource; the process of granting access. See access control. to proceed. When approved, these closures will result in further restructuring expenses, but the anticipated operating savings are expected to recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. the expenses in approximately one year." Continuing, Mr. Holmes, said, "Looking ahead to the fourth quarter of 2002, I anticipate a slight increase in sales and gross profit from the third-quarter 2002 levels. However, anticipated continued softness in the D&S segment and the impact of delayed order-bookings for LNG fueling products will hinder hin·der 1 v. hin·dered, hin·der·ing, hin·ders v.tr. 1. To be or get in the way of. 2. To obstruct or delay the progress of. v.intr. our opportunity for significant improved operating performance. This operating outlook, combined with the more stringent financial covenants of the Company's Credit Agreement that are effective December December: see month. 31, 2002, will make covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the compliance in the fourth quarter of 2002 a challenge." "We are actively pursuing several financial restructuring initiatives in order to improve the Company's financial condition and reduce its leverage. This includes a potential substantial equity investment in the Company, and we are in advanced negotiations with one investor group toward that end. We are also considering alternatives with our senior lenders regarding a restructuring of the Company's outstanding senior debt. I am hopeful that we will reach agreement on an equity investment and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: in the fourth quarter of 2002. At the same time, we have advanced the possible sale of several non-core assets, the proceeds from which will be used to reduce debt." Mr. Holmes concluded, "I am encouraged by the PS&E segment's third-quarter 2002 order intake, which was exceptionally strong in 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 processing market, and the related improved outlook for this business going forward into 2003. Our AT products seem poised for continued strong performance. Our main concern at present is the possibility of a prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. downturn in the industrial sector of the U.S. and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. economies, which would adversely impact our D&S business and would hinder the full recovery of the PS&E business. The belt-tightening belt-tight·en·ing n. Increased thrift and frugality; a reduction in spending. and cost reduction initiatives we have completed and have planned should contribute to improving our performance going forward." Financial highlights are as follows (all figures are in thousands of dollars except per-share amounts, which are based on average shares outstanding on a diluted basis):
Three months ended September 30,
2002 2001 % Change
---- ---- --------
Sales $ 74,225 $ 80,595 (7.9)%
Gross profit 19,152 21,180 (9.6)%
Net loss (722) (1,170) N/M
Net loss per share - assuming dilution (0.03) (0.05) N/M
Nine months ended September 30,
2002 2001 % Change
---- ---- --------
Sales $221,113 $254,424 (13.1)%
Gross profit 56,502 69,780 (19.0)%
Net loss (3,816) (1,189) N/M
Net loss per share - assuming dilution (0.15) (0.05) N/M
N/M -- (Not meaningful)
THIRD-QUARTER 2002 FINANCIAL RESULTS Sales for the third quarter of 2002 were $74.2 million versus $80.6 million for the third quarter of 2001, a decrease of $6.4 million, or 7.9 percent. AT segment sales in the third quarter of 2002 were $33.2 million, down 8.2 percent from the third-quarter 2001 sales of $36.2 million. Record quarterly sales of GE/MRI products and strong biomedical sales were offset by weak cryogenic cryogenic /cry·o·gen·ic/ (-jen´ik) producing low temperatures. cry·o·gen·ic adj. 1. Relating to or producing low temperatures. 2. systems and beverage systems sales. D&S segment sales decreased 19.3 percent from the third quarter of 2001, with third-quarter 2002 sales of $26.4 million. The decline primarily occurred in the standard tank and packaged gas businesses, with customers continuing to delay purchases due to overall economic uncertainty. PS&E segment sales increased 24.8 percent to $14.6 million in the third quarter of 2002 from sales of $11.7 million in the third quarter of 2001. The improved hydrocarbon processing market for heat exchangers and cold boxes contributed to this increase. Gross profit for the third quarter of 2002 was $19.2 million versus $21.2 million for the third quarter of 2001, a decrease of $2.0 million, or 9.4 percent. Gross margin for the third quarter of 2002 was 25.8 percent versus 26.3 percent for the third quarter of 2001. Under-absorption of manufacturing facility 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). driven by low production volumes, particularly in the D&S segment, continue to drive these lower gross margin levels. Gross profit in the AT segment was reduced by $0.6 million in the third quarter of 2002 for the non-cash write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of inventory at Costa Mesa, California Costa Mesa is a suburban middle class city in Orange County, California, United States. The population was 108,724 at the 2000 census. Since its incorporation in 1953, the city has grown from a semi-rural farming community of 16,840 to a suburban city with an economy based on and Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. as a result of the manufacturing consolidations. Additionally, gross profit in the PS&E segment was reduced by $1.1 million related to inventory write-offs and increased warranty expense related to certain contracts. Selling, general and administrative ("SG&A") expense was $13.6 million for the third quarter of 2002 compared with $13.2 million in the third quarter of 2001. As percentage of sales, SG&A expense was 18.3 percent for the third quarter of 2002 versus 16.4 percent for the third quarter of 2001. Although exceeding prior year levels, the Company has lowered its SG&A expense in each successive quarter in 2002, and the current and planned organization restructuring initiatives are expected to continue to drive additional decreases. During the third quarter of 2002, the Company recorded $2.2 million of employee separation and plant closure costs primarily related to the consolidation of its Columbus, Ohio, Costa Mesa, California, and Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. (East), Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. facilities. These costs primarily related to lease termination and other facility-related closure costs and employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when . The Company incurred $0.2 million of employee separation and plant closure costs in the third quarter of 2001 related primarily to its Cryogenic Services business as the Ottawa Ottawa, city, Canada Ottawa (ŏt`əwə), city (1991 pop. 313,987), capital of Canada, SE Ont., at the confluence of the Ottawa and Rideau rivers. Hull, Que. Lake, Michigan Lake, Michigan may refer to a few places in the U.S. state of Michigan:
Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. , equipment, and severance costs. The Company recorded $1.2 million and $3.8 million of goodwill amortization in the third quarter and first nine months of 2001, respectively. Due to the Company's adoption of SFAS No. 142 on January 1, 2002, the Company is no longer recording goodwill amortization. During the second quarter of 2002, the Company completed the transitional impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. tests of SFAS No. 142 and determined there were no indicators of impairment for its reporting units with goodwill. As such, the Company was not required to record a cumulative effect charge as of January 1, 2002 for the adoption of SFAS No. 142. The required annual impairment test under SFAS No. 142 will be performed during the fourth quarter of 2002. The Company sold its minority interest in Restaurant Technologies Inc. for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $2.4 million during the third quarter of 2001, resulting in a gain of $0.5 million. Net interest expense for the third quarter of 2002 was $4.3 million versus $5.3 million for the third quarter of 2001, reflecting lower rates. The Company recorded $0.7 million of derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. contracts valuation expense in the third quarter of 2002, compared with $1.6 million in the third quarter of 2001, primarily related to a further decline in the forward interest rate yield curve. The Company's one remaining interest rate collar covering $30.8 million of the debt outstanding at September 30, 2002 expires in March 2006. As of September 30, 2002, the Company had borrowings of $262.2 million on its Credit Agreement and was in compliance with all related covenants. These covenants became more stringent to meet as of September 30, 2002 and will become more restrictive as of December 31, 2002. Income tax benefit of $1.4 million in the third quarter of 2002 was recorded based on the Company's estimated annual effective tax rate. The Company's operations provided $8.9 million of cash in the first nine months of 2002 compared with $0.5 million in the first nine months of 2001. The Company received an income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. of $9.3 million in the third quarter of 2002 due to the new tax law allowing for a five-year carry-back The name given to the method provided under federal tax law that allows a taxpayer to apply net operating losses incurred during one year to the recomputation of Income Tax owed to the government for three preceding taxable years. of net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. . Capital expenditures for the first nine months of 2002 were $2.4 million compared with $5.7 million in the first nine months of 2001. The Company presently does not have any large capital projects in process and anticipates a low level of capital expenditures for the fourth quarter of this year. Pursuant to the Company's amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Credit Agreement, the Company was required to issue to its lenders warrants at September 30, 2002 to purchase, in the aggregate, 1,353,531 shares of Chart Common Stock at an exercise price of $0.898 per share. These warrants have been valued at $1.3 million and will be amortized to financing costs amortization expense over the remaining term of the Company's Credit Agreement, which expires in March 2006. In addition, the interest rate on the Company's debt outstanding under its Credit Agreement will increase by 25 basis points beginning in the fourth quarter of 2002. ORDERS AND BACKLOG Chart's consolidated orders for the third quarter of 2002 totaled $87.8 million, compared with orders of $77.2 million for the second quarter of 2002. Chart's consolidated firm order backlog at September 30, 2002 was $78.3 million, an increase of $9.5 million from $68.8 million at June June: see month. 30, 2002. AT orders for the third quarter of 2002 totaled $35.0 million, compared with $37.5 million for the second quarter of 2002. Third-quarter orders were strong in GE/MRI and biomedical products, while LNG fueling stations and vehicle tanks were weak. D&S orders for the third quarter of 2002 totaled $23.2 million, compared with $25.3 million for the second quarter of 2002. The D&S segment experienced a drop off in orders for packaged gas equipment and engineered tanks, compared with the second quarter of 2002, largely the result of the continued slow global industrial gas market. PS&E orders for the third quarter of 2002 totaled $29.6 million, compared with $14.5 million in the second quarter of 2002. Order activity was very strong in the hydrocarbon processing market, with the inclusion of significant orders from Bechtel for heat exchangers and cold boxes to equip a large LNG facility. PS&E backlog at September 30, 2002, was $41.8 million, up from $28.1 million at June 30, 2002. General This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such statements or could reduce the liquidity of the Company's common stock. Such risks and uncertainties include, but are not limited to, continued slowness in Chart's major markets, the impact of competition, the timing and effectiveness of operational changes and restructuring initiatives expected to increase efficiency and productivity and reduce operating costs operating costs npl → gastos mpl operacionales , the ability of Chart to satisfy covenants and make required principal payments or prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. under its credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , the success of Chart in restructuring its debt arrangements, obtaining additional sources of capital and selling certain assets and the ultimate terms Terms in Ultimate Frisbee Term Definition Reference Aggro abbr. aggressive. Referring to poor spirited, overly aggressive play by an individual or team. You must specify title = and url = when using . and conditions of such transactions, the Company's ability to satisfy the NYSE's continued listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. and remain listed on the NYSE, changes in worldwide economical and political conditions, the threat of terrorism and the impact of responses to that threat, and foreign currency fluctuations that may affect worldwide results of operations. The Company does not assume any obligation to update any of these forward-looking statements. Chart Industries, Inc. is a leading global supplier of standard and custom-engineered products and systems serving a wide variety of low-temperature and cryogenic applications. Headquartered in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. , Chart has domestic operations located in 11 states and international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. located in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , China, the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and the United Kingdom. For more information on Chart Industries, Inc. visit the Company's web site at www.chart-ind.com.
CHART INDUSTRIES, INC.
QUARTERLY SEGMENT INFORMATION (UNAUDITED)
LAST FIVE-QUARTER TREND
2001 2002
----------------- --------------------------
Third Fourth First Second Third
Quarter Quarter Quarter Quarter Quarter
----------------- --------------------------
(Dollars in thousands)
Sales
Applied Technologies $36,160 $33,967 $30,507 $35,187 $33,202
Distribution &
Storage Equipment 32,739 29,027 24,796 25,906 26,426
Process Systems
& Equipment 11,696 10,572 12,405 18,087 14,597
-------- -------- -------- -------- --------
Total $80,595 $73,566 $67,708 $79,180 $74,225
======== ======== ======== ======== ========
Gross Profit
Applied Technologies $13,155 $11,043 $9,711 $11,610 $11,872
Distribution &
Storage Equipment 6,823 4,450 4,558 4,873 5,401
Process Systems
& Equipment 1,202 1,088 2,490 4,108 1,879
-------- -------- -------- -------- --------
Total $21,180 $16,581 $16,759 $20,591 $19,152
======== ======== ======== ======== ========
Gross Profit Margin
Applied Technologies 36.4% 32.5% 31.8% 33.0% 35.8%
Distribution &
Storage Equipment 20.8% 15.3% 18.4% 18.8% 20.4%
Process Systems
& Equipment 10.3% 10.3% 20.1% 22.7% 12.9%
Total 26.3% 22.5% 24.8% 26.0% 25.8%
Orders
Applied Technologies $32,817 $38,450 $33,251 $37,508 $34,976
Distribution &
Storage Equipment 24,919 22,854 22,493 25,251 23,167
Process Systems
& Equipment 10,305 18,961 19,715 14,470 29,641
-------- -------- -------- -------- --------
Total $68,041 $80,265 $75,459 $77,229 $87,784
======== ======== ======== ======== ========
Backlog
Applied Technologies $9,406 $13,782 $17,171 $16,444 $16,132
Distribution &
Storage Equipment 33,692 26,635 24,955 24,256 20,347
Process Systems
& Equipment 16,050 24,395 31,711 28,106 41,820
-------- -------- -------- -------- --------
Total $59,148 $64,812 $73,837 $68,806 $78,299
======== ======== ======== ======== ========
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars and shares in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2002 2001 2002 2001
--------------------- ---------------------
Sales $ 74,225 $ 80,595 $ 221,113 $ 254,424
Cost of sales 55,073 59,415 164,611 184,644
--------------------- ---------------------
Gross profit 19,152 21,180 56,502 69,780
Selling, general and
administrative expense 13,558 13,192 45,113 43,065
Goodwill amortization
expense - 1,239 - 3,778
Employee separation and
plant closure costs 2,175 198 3,483 1,737
Equity income
in joint venture ( 103) ( 96) ( 382) ( 379)
--------------------- ---------------------
15,630 14,533 48,214 48,201
--------------------- ---------------------
Operating income 3,522 6,647 8,288 21,579
Other income (expense):
Gain on sale of assets 538 1,420 538
Interest expense, net ( 4,329) ( 5,269) ( 13,084) ( 17,465)
Financing costs
amortization ( 638) ( 377) ( 2,383) ( 1,120)
Derivative contracts
valuation expense ( 702) ( 1,616) ( 1,114) ( 2,678)
Foreign currency
gain (loss) 1 ( 537) ( 661) ( 519)
--------------------- ---------------------
( 5,668) ( 7,261) ( 15,822) ( 21,244)
--------------------- ---------------------
(Loss) income before
income taxes, minority
interest and cumulative
effect of change in
accounting principle ( 2,146) ( 614) ( 7,534) 335
Income tax
(benefit) expense ( 1,447) 506 ( 3,742) 1,340
--------------------- ---------------------
Loss before minority
interest and cumulative
effect of change in
accounting principle ( 699) ( 1,120) ( 3,792) ( 1,005)
Minority interest,
net of taxes 23 50 24 96
--------------------- ---------------------
Loss before cumulative
effect of change in
accounting principle ( 722) ( 1,170) ( 3,816) ( 1,101)
Cumulative effect of
change in accounting
principle, net of taxes 88
--------------------- ---------------------
Net loss $( 722) $( 1,170) $( 3,816) $( 1,189)
===================== =====================
Net loss per common
share - basic and
assuming dilution:
Loss before cumulative
effect of change in
accounting principle $( 0.03) $( 0.05) $( 0.15) $( 0.05)
Cumulative effect of
change in accounting
principle 0.00
--------------------- ---------------------
Net loss
per common share $( 0.03) $( 0.05) $( 0.15) $( 0.05)
===================== =====================
Shares used in per share
calculations - basic and
assuming dilution 25,129 24,634 24,977 24,519
===================== =====================
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
2002 2001
------------- -------------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 13,989 $ 11,801
Accounts receivable, net 43,853 45,427
Inventories, net 53,551 56,490
Other current assets 33,841 26,062
------------- -------------
Total Current Assets 145,234 139,780
Property, plant and equipment, net 58,520 62,070
Goodwill, net 169,255 168,282
Other assets, net 37,072 38,848
------------- -------------
TOTAL ASSETS $ 410,081 $ 408,980
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 25,851 $ 25,634
Customer advances and billings
in excess of contract revenue 9,310 9,290
Accrued expenses and other liabilities 35,479 35,617
Current portion of long-term debt 42,249 12,963
------------- -------------
Total Current Liabilities 112,889 83,504
Long-term debt 228,312 259,120
Other long-term liabilities 16,630 17,016
Shareholders' Equity 52,250 49,340
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 410,081 $ 408,980
============= =============
The balance sheet at December 31, 2001 has been derived from the
audited financial statements at that date but does not include all of
the information and footnotes required by accounting principles
generally accepted in the United States for complete financial
statements.
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Nine Months Ended
September 30,
--------------------
2002 2001
--------- ---------
OPERATING ACTIVITIES
Net loss $( 3,816) $( 1,189)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Cumulative effect of
change in accounting principle 88
Gain on sale of assets ( 1,420) ( 538)
Depreciation and amortization 8,677 12,590
Financing costs amortization 2,383 1,120
Amendment-related professional fees expensed 3,756
Employee separation and plant closure costs 868 1,297
Other non-cash operating activities 1,250 1,634
Increase (decrease) in cash resulting from
changes in operating assets and liabilities:
Accounts receivable 2,214 ( 2,086)
Inventory and other current assets ( 4,283) 5,312
Accounts payable and
other current liabilities ( 9,592) (19,583)
Income tax refund 9,258
Customer advances and billings
in excess of contract revenue ( 421) 1,886
--------- ---------
Net Cash Provided By Operating Activities 8,874 531
INVESTING ACTIVITIES
Capital expenditures ( 2,444) ( 5,740)
Proceeds from sale of assets 2,300 2,365
Dividends received from joint venture 492
Other investing activities 741 5
--------- ---------
Net Cash Provided By (Used In)
Investing Activities 1,089 ( 3,370)
FINANCING ACTIVITIES
Borrowings on revolving credit facilities 37,411 88,188
Repayments on revolving credit facilities (36,596) (71,471)
Principal payments on long-term debt ( 3,056) (14,888)
Other financing activities ( 6,018) ( 254)
--------- ---------
Net Cash (Used In) Provided By
Financing Activities ( 8,259) 1,575
--------- ---------
Net increase (decrease)
in cash and cash equivalents 1,704 ( 1,264)
Effect of exchange rate changes on cash 484 ( 359)
Cash and cash equivalents at beginning of period 11,801 4,921
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 13,989 $ 3,298
========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion