Chart Industries announces fifth consecutive quarter of improving net profits; third-quarter and nine-month results show improving financial trends.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)--November 6, 1995--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 announced sales for the third quarter of 1995 of $26.7 million versus $18.8 million for the same period last year. Net income of $2.1 million, or $.20 per share, rose sharply from $304,000, or $.03 per share, in the third quarter of 1994. Commenting on Chart's 1995 third quarter 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, "Very strong market demand continues for most of Chart's business areas. In particular, we have enjoyed brisk Brisk as a proper name may refer to:
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 excellent order activity for our cryogenic cryogenic /cry·o·gen·ic/ (-jen´ik) producing low temperatures. cry·o·gen·ic adj. 1. Relating to or producing low temperatures. 2. components and systems. In addition to replacing our sales for the period with new orders, the sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. LIGO LIGO Laser Interferometer Gravitational-Wave Observatory (CIT & MIT)LIGO Long Island Geocaching Organization (Bellport, New York) project award has pushed our 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 the record level of $97.7 million. Our strong market position has permitted us to increase the margin level in our backlog and produce our fifth consecutive quarter of improving net profits." The third-quarter results reflect continued strength in demand for durable equipment supplied by all of Chart's operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . Bookings this quarter in 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. were Chart's second highest ever and should have a positive effect on sales in both 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 processing markets in the coming quarters. The Company's backlog, which has grown steadily throughout 1994 and 1995, now stands at $97.7 million, compared with $53.8 million at the end of 1994. As announced in September September: see month. , Chart's Process Systems International (PSI) subsidiary received a $39.1 million contract to supply vacuum equipment to the Laser Interferometer interferometer: see interference under Interference as a Scientific Tool. See also virtual telescope. An instrument that measures the wavelengths of light and distances. Gravitational Wave gravitational wave n. A hypothetical wave that is held to propagate the force of gravity and to travel at the speed of light. Also called gravity wave. Observatory observatory, scientific facility especially equipped to detect and record naturally occurring scientific phenomena. Although geological and meteorological observatories exist, the term is generally applied to astronomical observatories. (LIGO) project. The project is being managed by the California Institute of Technology California Institute of Technology, at Pasadena, Calif.; originally for men, became coeducational in 1970; founded 1891 as Throop Polytechnic Institute; called Throop College of Technology, 1913–20. and funded by the National Science Foundation. PSI's responsibilities for design, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and installation of the required vacuum systems vacuum system Urology A mechanical system used to facilitate and maintain an erection; an erection erector. Cf Penile implant. extend for a scheduled 39-month period. For the first nine months of 1995, sales were $81.5 million versus $60.1 million for the first nine months of 1994. Net income of $4.5 million, or $.45 per share, for the 1995 nine-month period compared favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with a net loss for the prior year period of $1.9 million, or $.19 per share, which included a restructuring charge 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. of $2.2 million. Mr. Holmes added, "The Company's financial results are gaining momentum, and we anticipate continued strong operating performance based upon our healthy backlog and markets. Our Process Engineering (PEI) subsidiary has contributed positively during the quarter and is expected to continue to improve going forward. Chart Coastal Fabrication (CCF CCF abbr. Cooperative Commonwealth Federation of Canada ) shipped its first cold box assembly in early October October: see month. . As the planned start-up Start-up The earliest stage of a new business venture. expenses for this operation fall behind us, the CCF division is expected to contribute to Chart's sales and profits in 1996." Chart also announced today that the Board of Directors declared a regular quarterly cash dividend of $.07 per common share payable on December December: see month. 15, 1995, to shareholders of record at the close of business on December 1, 1995. Financial highlights are as follows (all figures are in thousands of dollars except per-share amounts): -0-
Three months ended September 30,
1995 1994 % Change
____ ____ ________
Sales $26,730 $18,774 42.4%
Gross profit 7,266 3,079 136.0%
Net income 2,057 304 576.6%
Net income per share .20 .03 566.7%
Dividends paid per share .07 .07 --
Nine months ended September 30,
1995 1994 % Change
____ ____ ________
Sales $81,461 $60,059 35.6%
Gross profit 21,741 10,095 115.4%
Net income (loss) 4,485 (1,944) N/M
Net income (loss) per share .45 (.19) N/M
Dividends paid per share .21 .21 --
CONSOLIDATED THIRD QUARTER 1995 FINANCIAL RESULTS Sales for the three-month period ended September 30, 1995, were $26.7 million versus $18.8 million for the comparable 1994 period, an increase of $8.0 million, or 42.4 percent. Sales grew across all markets and were additionally bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by CVI CVI C (Language) Virtual Instrument CVI Clinical and Vaccine Immunology (journal) CVI Chronic Venous Insufficiency CVI Coastal Vulnerability Index CVI Canaan Valley Institute , which was acquired in the fourth quarter of 1994. When compared with the 1995 second quarter, sales were down 8.6 percent, but a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. sales mix sales mix See product mix. improved the 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. . Strong market conditions, productivity improvements at PEI, a continuing favorable exchange rate relative to the Japanese yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. and strong 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. at each of our plants resulted in gross profits for the three-month period ended September 30, 1995, of $7.3 million versus $3.1 million for the comparable period in 1994, an improvement of $4.2 million, or 136.0 percent. This result, although slightly lower than the gross profit of $7.9 million reported in the second quarter of 1995, reflects an improved gross profit margin to 27.2 percent from 16.4 percent and 26.9 percent, respectively, in Chart's 1994 third-quarter and 1995 second-quarter periods. The products supporting this improved third-quarter margin performance were mainly cryogenic storage tanks and transport vessels. This improved performance included anticipated low-margin sales in several long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. high vacuum projects and the start-up costs of our Chart Coastal Fabrication facility in New Iberia, Louisiana The city of New Iberia (French: La Nouvelle-Ibérie) is the parish seat of Iberia Parish, in the US state of Louisiana, 125 miles (201 km) west of New Orleans. [1] [2] . As a percentage of sales, selling, general and administrative (SG&A) expense improved to 14.1 percent versus 18.3 percent and 16.2 percent, respectively, for the third quarter of 1994 and the second quarter of 1995. SG&A expense for the three-month period ended September 30, 1995, was $3.8 million, approximately $300,000 higher than the third quarter of 1994. When adjusted for the CVI acquisition, SG&A expense was actually lower in the 1995 third quarter than in the corresponding quarter last year. Compared with the second quarter of 1995, SG&A expense declined $1.0 million in the 1995 third quarter because of lower sales commissions and better-than-expected performance on certain warranty claims. Operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the second quarter of 1994 included a restructuring charge of $3.3 million related to proposed relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of the PEI operations. Ultimately, these operations were significantly restructured and the third quarter of 1994 favorably included the reduction of $1.1 million in this restructuring charge. Net interest expense for the three-month period ended September 30, 1995, was $529,000 versus $248,000 and $462,000, respectively, in the third quarter of 1994 and second quarter of 1995. Increased interest charges in the third quarter of 1995 reflect higher borrowing levels to meet increased working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. across the Company. As of October 1, 1995, the interest rate at which Chart borrows from its bank group was lowered by 1/4 percent because of the Company's improving financial condition. The 1995 third-quarter effective tax rate of 30.8 percent reflects the positive offset of certain tax credits taken in the most recently filed income tax returns and the anticipated effect of these on the 1995 returns. The Company expects an on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" effective tax rate between 34 and 36 percent. Chart reported net income for the three-month period ended September 30, 1995, of $2.1 million, or $.20 per share, versus net income of $304,000, or $.03 per share, in the third quarter of 1994. Net income reported in the third quarter of 1995 is Chart's fifth consecutive quarter of improved profitability and compares favorably with Chart's second quarter 1995 net profit of $1.6 million, or $.16 per share. Cash provided by operations during the three-month period ended September 30, 1995, was $1.0 million compared to $1.8 million in 1994's third quarter and $1.9 million in 1995's second quarter. The Company's 1995 third-quarter cash flow represents current earnings offset by investments in raw materials, work-in-process inventory, and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying as the plants respond to higher backlog levels. Capital expenditures for the third quarter of 1995 were $750,000 compared to $300,000 for the same period in 1994. The majority of these 1995 expenditures relate to equipment for Chart Coastal Fabrication and the continued expenditures being made at all locations to improve throughput and cost reduction. The Company expects 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, capital expenditures, and the repayment of scheduled maturities of debt from the acquisition of CVI. As of September 30, 1995, the Company's borrowings on its $25 million credit facility totaled $16.5 million, an increase of $1.5 million since June June: see month. 30, 1995. The Company is in compliance with all covenants related to this facility as of September 30, 1995. Backlog Chart's consolidated firm order backlog at September 30, 1995, was $97.7 million versus $57.3 million at June 30, 1995. Even excluding the contribution of the LIGO project, the Company's backlog at the end of the 1995 third quarter was the highest in Chart's history as a public company. Air separation equipment bookings continued at strong levels, with orders totaling $15.3 million in the 1995 third quarter. The strong order level resulted in an increased backlog of $26.3 million, more than replacing strong sales of $9.3 million. Hydrocarbon processing equipment backlog stood at $19.2 million on September 30, 1995, an increase of $900,000 over June 30, 1995, levels. New orders during the quarter totaled $6.9 million against sales of $6.0 million. Cryogenic and high vacuum equipment backlog was $46.8 million at September 30, 1995. As discussed earlier, the $39.1 million LIGO project will favorably impact this area of our business for the next three years. Specialty products backlog totaled $5.4 million at September 30, 1995, a decrease from $7.9 million at June 30, 1995, reflecting reductions in orders for pipe hangers hangers used for hanging x-ray films to dry. There is a clip type, with a clip at each corner, and a channel type in which the film sits in channels in the sides of the frame. and supports. 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 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-
CONSOLIDATED THIRD QUARTER 1995 FINANCIAL RESULTS
CHART INDUSTRIES, INC. AND SUBSIDIARIES
MARKET INFORMATION (UNAUDITED)
FOR 1995'S THIRD QUARTER
Three Months Ended September 30, 1995
Sales Gross Profit
Percent Percent Gross
of of Profit
($000) Total ($000) Total Margin
___________________________________________
Air Separation $ 9,299 34.8% $2,356 32.4% 25.3%
Hydrocarbon Processing 6,027 22.6% 1,553 21.4% 25.8%
Cryogenic & High Vacuum 4,018 15.0% 252 3.5% 6.3%
Specialty Products 7,386 27.6% 3,105 42.7% 42.0%
___________________________________________
$26,730 100.0% $7,266 100.0% 27.2%
___________________________________________
___________________________________________
Nine Months Ended September 30, 1995
Sales Gross Profit
Percent Percent Gross
of of Profit
($000) Total ($000) Total Margin
___________________________________________
Air Separation $29,647 36.4% $7,182 33.0% 24.2%
Hydrocarbon Processing 17,937 22.0% 5,491 25.3% 30.6%
Cryogenic & High Vacuum 12,617 15.5% 811 3.7% 6.4%
Specialty Products 21,260 26.1% 8,257 38.0% 38.8%
___________________________________________
$81,461 100.0% $21,741 100.0% 26.7%
___________________________________________
___________________________________________
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per-share amounts)
September 30, 1995 December 31, 1994
_______________________________________
(unaudited)
ASSETS
Current Assets
Cash and cash equivalents $653 $206
Accounts receivable 26,712 19,894
Inventories 19,991 14,741
Other current assets 1,403 4,089
__________________________________
Total Current Assets 48,759 38,930
Property, plant & equipment, net 12,013 11,939
Other assets, net 3,641 4,012
__________________________________
TOTAL ASSETS $64,413 $54,881
__________________________________
__________________________________
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $6,700 $6,800
Customer advances 4,562 3,960
Billings in excess of costs plus
estimated earnings 5,060 3,453
Accrued expenses and other
liabilities 9,991 7,227
Current portion of long-term debt 2,007 2,007
_________________________________
Total Current Liabilities $28,320 $23,447
Long-term debt 18,558 16,073 Deferred income taxes 798 997
Shareholders' Equity
Preferred stock 1,000 shares
authorized, none issued or
outstanding
Common stock, par value $.01 per
share - 30,000,000 shares authorized,
10,094,594 and 10,025,623 shares
issued at September 30, 1995, and
December 31, 1994, respectively 101 100
Additional paid-in capital 16,993 16,916
Retained earnings (deficit) 455 (1,940)
Treasury stock, at cost, 145,833 and
141,108 shares at September 30, 1995,
and December 31, 1994, respectively (812) (712)
________________________________
16,737 14,364
________________________________
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 64,413 $54,881
________________________________
________________________________
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
________________________________________
Sales $26,730 $18,774 $81,461 $60,059
Cost of products sold 19,464 15,695 59,720 49,964
________________________________________
Gross profit 7,266 3,079 21,741 10,095
Selling, general &
administrative expense 3,765 3,442 13,399 10,450
Restructuring charge (1,100) 2,151
________________________________________
Operating income (loss) 3,501 737 8,342 (2,506)
Interest expense, net 529 248 1,453 629
________________________________________
Income (loss) before
income taxes 2,972 489 6,889 (3,135)
Income taxes (benefit) 915 185 2,404 (1,191)
________________________________________
Net income (loss) $2,057 $304 $4,485 ($1,944)
________________________________________
________________________________________
Net income (loss) per
Common Share $0.20 $0.03 $0.45 ($0.19)
________________________________________
________________________________________
Shares used in per share
calculations 10,098 10,044 10,057 10,028
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
Three Months Ended
September 30,
1995 1994
___________________
OPERATING ACTIVITIES
Net income (loss) $2,057 $304
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 735 612
Restructuring charge (1,778)
Contribution of treasury stock to 401K plans 112 66
Deferred income taxes 256 (947)
Increase (decrease) in cash resulting from
changes in operating assets and liabilities:
Accounts receivable (7,351) (2,930)
Inventory and other current assets 2,072 (1,202)
Accounts payable and accrued liabilities (486) 4,679
Billings in excess of costs plus estimated
earnings and customer advances 3,652 2,946
___________________
Net Cash Provided By Operating Activities 1,047 1,750
INVESTING ACTIVITIES
Capital expenditures (750) (300)
Other investing activities (307) (476)
___________________
Net Cash Used In Investing Activities (1,057) (776)
FINANCING ACTIVITIES
Repayments of long-term debt (339) (4)
Repayments on credit facility (8,000) (7,000)
Borrowings on credit facility 9,500 5,750
Stock options exercised 125
Treasury stock purchased - net (322)
Dividends/distributions paid to shareholders (696) (693)
___________________
Net Cash Provided By (Used In) Financing Activities 268 (1,947)
___________________
Net increase (decrease) in cash and cash equivalents 258 (973)
Cash and cash equivalents at beginning of period 395 1,426
___________________
CASH AND CASH EQUIVALENTS AT END OF PERIOD $653 $453
___________________
___________________
Nine Months Ended
September 30,
1995 1994
___________________
OPERATING ACTIVITIES
Net income (loss) $4,485 ($1,944)
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 2,072 1,685
Restructuring charge 1,473
Contribution of treasury stock to 401K plans 189 250
Deferred income taxes (199) (1,130)
Increase (decrease) in cash resulting from
changes in operating assets and liabilities:
Accounts receivable (6,818) (1,379)
Inventory and other current assets (2,564) 1,003
Accounts payable and accrued liabilities 2,664 2,762
Billings in excess of costs plus estimated
earnings and customer advances 2,209 2,545
___________________
Net Cash Provided By Operating Activities 2,038 5,265
INVESTING ACTIVITIES
Capital expenditures (1,676) (945)
Other investing activities (99) (430)
___________________
Net Cash Used In Investing Activities (1,775) (1,375)
FINANCING ACTIVITIES
Repayments of long-term debt (1,015) (12)
Repayments on credit facility (25,000) (22,750)
Borrowings on credit facility 28,500 20,750
Stock options exercised 194 (58)
Treasury stock purchased - net (405)
Dividends/distributions paid to shareholders (2,090) (2,071)
___________________
Net Cash Provided By (Used In) Financing
Activities 184 (4,141)
___________________
Net increase (decrease) in cash and cash equivalents 447 (251)
Cash and cash equivalents at beginning of period 206 704
___________________
CASH AND CASH EQUIVALENTS AT END OF PERIOD $653 $453
___________________
___________________
CONTACT: Chart Industries, Inc., Eastlake Don Baines Baines is a surname, and may refer to
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