Dresser--Rand Group Inc Dresser Inc. (NYSE: DRC) Fourth Quarter 2011 Conference Call March 1, 1 2012 Copyright 2009 9
2011 was a Good Year Record bookings 2.9 billion Operating Income of 257 million (11.1% of sales) Incremental Growth through strategic investments Guascor and Echogen Executed comprehensive financial plan 375 million 6.5% notes…
Synchrony Technology development company Portfolio of world-class technologies and products including active magnetic bearings (AMB), high speed motors and generators Strategic importance - able to offer oil-free solutions in high…
Bookings December YTD ( in i Millions) Milli ) 3,000 2,858 2011 Total Bookings 28% higher than 2010 2,500 2011 bookings by market: 2,236 Upstream 41% Midstream 12% 2,000 Downstream 27% Environmental 17% 1,500 Other…
New Unit Bookings December YTD ( in i Millions) Milli ) 1,500 Record 2011 New Unit 1,500 Bookings 24% higher than 4Q Q 226 1,210 2010 Guascor bookings 105 (8 months) 1,000 4Q 480 1 274 1,274 2011 BBookings ki b by market k…
Aftermarket Bookings December YTD ( in Millions) 1,400 1,358 Record 2011 Aftermarket bookings - 32% higher vs. 4Q 336 year ago despite; d it 1,026 1,050 Guascor bookings 4Q 273 1 022 1,022 4Q11 Q = 73 3 700 2011 (8 months)…
Backlog by Segment ( in Millions) 2,600 2,552 Backlog of 2.6 billion - 477 30% higher than at 12/10 1,965 1,950 354 New unit backlog up 29% vs last year vs. 1,300 2,075 1.2 billion 1,611 650 scheduled to ship in 2012 0 Dec.…
Sales by Segment ( in Millions) 738 750 395 T t l sales Total l up 37% 600 537 Aftermarket sales up 40% 282 450 New Unit sales up 35% 300 343 but 200 lower than 255 expected 150 0 4Q10 4Q11 Copyright 2011 N New U…
New Unit Revenue Delays 200 Million ( in Millions) 50% 49% Principal issues were: 41% Client driven 25% MBO Suppliers supply finished goods (e.g., major 6% 0% 4% buyouts such as C M O M lie B th is motors) nt O er c. s Su…
Client Driven Delays 60% 7 projects in total 51% 40% One project was 41% 40% of the client- driven delays due to 20% specification changes 8% 0% Client preference C S 50% of client-driven O pe lie th…
Major Buyouts / Finished Good Delays 75% 71% 75% of impact p from 50% motors 70% came from one 25% supplier 19% Process upset & 0% 6% 4% changes at supplier drove issues M V Lu M es ot ot be or se or…
Shipment Delays to 2012 200 Million 75% Most projects 68% expected to ship in 1Q12 50% Of 32% scheduled to ship in 2Q12, 32% half is one project 25% 0% Copyright 2011 1Q12 2Q12 13
Shipment Delays from 1Q12 Supplier issues have also delayed previously scheduled Q1 shipments Problem under control Completed a review of all projects with major buyouts Remedies include: Executive oversight Management reviews…
Fourth Quarter 2011 Results ( in i Millions) Milli ) 4Q11 4Q10 Change Revenues 738.0 537.2 37% Cost of Sales 505.2 381.2 33% - % of Revenues 68.5% 71.0% Selling & Administrative 98.4 81.5 21% Research & Development 69 6.9 46 4.6…
New Unit Operating Income & Margins ( in Millions) 44.5 45 16.0% 4Q11 operating 13.0% income and margin g 36 11.0% 12.0% increased vs. prior 28.0 year principally due to: 27 8.0% Guascor 18 acquisition 4.0% Benefits of 9…
Aftermarket Operating Income & Margins ( in Millions) 120 30% 4Q11 operating 108.3 income increased vs vs. 27.4% prior year principally 90 24.2% 20% due to higher revenues 68 3 68.3 60 4Q11 operating margin increased vs.…
Operating Cash Flow ( in Millions)) Twelve Months Ended 12/31/11 12/31/10 Net Income 120 147 D&A 80 52 Deferred Income Taxes 20 2 Stock-based Compensation 15 14 Amort of Debt Financing Costs Amort. 12 3 Pension Contributions (33)…
Net Working Capital ( in Millions) 12/31/11 12/31/10 Accts. Receivable, Net 477 304 Inventories, Gross 779 501 Less Progress Payments (370) (209) Inventories, Net 409 292 Prepaid Expenses 67 36 Accounts Payable & Accruals (595)…
Cash Flow ( in Millions)) Twelve Months Ended 12/31/11 12/31/10 Net Cash Provided by Oper.Activities 108 376 Investing Activities (346) (106) Financing Activities (53) (68) Effect of Exchange Rate (1) (4) Net Change in Cash…
Liquidity ( in i Millions) Milli ) 750 750 Liquidity more than 421 adequate to meet operating 600 needs 450 428 Outstanding Letters of 128 Credit issued under the 300 329 300 revolver 198 150 Additional Letters of Credit…
Net Debt to Capital at End of Period ( in Millions) 65% Total debt 1,027 51% 56% S Sub. Sr. S b N Notes t - 375 45% 46% 37% Term Loan - 304 32% Revolver - 202 23% 20% Guascor / Other - 146 9% 14% 11% Net debt 869 -3% -5%…
2012 Market Outlook New Units New Unit market strong Expect new unit bookings of 1.7 to 1.9 billion for 2012 g US Given stronger effectively y represents p an increase of 100 million vs. prior guidance Aftermarket Expect…
2012 Outlook ( and d Shares Sh iin Milli Millions)) New Units Revenue Up 35 to 40% Aftermarket Revenue Up 15% to 20% Operating Income 360 to 420 - New Unit Operating Margins Low Double Digits - Aftermarket Operating Margins 22%…
First Quarter 2012 Outlook Continued seasonality in business 1Q11 operating income 7% of full year 2011 Supplier issues relating to major buyouts delayed previously scheduled shipments Expect p Q Q1 operating p g income to be…
Appendix Copyright 2009 9
NWC Reconciliation to GAAP ( in Millions) 12/30/2010 12/31/2011 C Current tAAssets t 1 084 2 1,084.2 1 151 0 1,151.0 Less: Current Liabilities (669.1) (926.8) GAAP Net Working Capital (NWC) 415.1 224.2 Adjustments: Cash and…
GAAP Reconciliation - Net Debt to Capital ( in Millions) 31-Dec 2004 2005 2006 2007 2008 2009 2010 2011 Total Debt 823.4 598.2 505.6 370.3 370.1 370.0 370.0 1,027.2 Less Cash (111.5) (98.0) (146.8) (206.2) (147.1) (223.2) (420.8)…
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