Dresser-Rand Group Inc. (NYSE: DRC) Second Quarter 2012 Conference Call August 3, 2012 Copyright 2009
Second Quarter 2012 Highlights ( in Millions) Operating Income 72.6 (61 to 80 Guidance) Operating Margins: 1Q12 2Q12 2012 Guidance New Units 5.5% 9.5% Low Double Digits Aftermarket 18.1% 20.1% 22 - 24% Currency translation impact…
Second Quarter 2012 Highlights (cont) Bookings: Guidance 2Q12 June YTD Full Year New Units 346 MM 788 MM 1.7 - 1.9 Bn Aftermarket 392 MM 776 MM 1.4 - 1.6 Bn Backlog: Total 2.8 billion (Record) New Units scheduled for 2013 = 1.1…
Aftermarket Bookings ( in Millions) Another solid bookings 400 quarter +22% 392 Middle East and Latin 300 321 America are especially strong 200 Aftermarket bookings up 22% vs. the corresponding 100 period in 2011 Excluding…
Historical Aftermarket Bookings ( in Millions) 1,600 1,200 800 400 0 2001 2003 2005 2007 2009 2011 2012** '12 Reliable, recurring revenue & cash flow Copyright 2011 * Based on first half 2012 annualized 6
Major Applied Technology Award Experiencing strong revamp activity - - reconditioning of existing rotating machinery to make it suitable for a new application In 2Q12, order to revamp five compressors originally manufactured by one…
New Unit Bookings ( in Millions) 350 New Unit bookings up 22% +22% 346 vs. the corresponding period in 2011 283 1H12 = 788 Major pipeline award 95 175 million - strong value proposition based on technology and delivery cycle…
CAES Acquired IP Expands Range of Offerings Complements Dresser-Rands current SMARTCAES technology Now able to provide solutions for the smallest to the largest CAES projects to meet specific grid scale requirements Makes…
Excelerate Floating LNG 4 million ton per year floating liquefaction facility Excelerate selected the Black & Veatch PRICO liquefaction system Black & Veatch has declared its intent to utilize Dresser-Rand centrifugal compressors…
LTM Bookings by Segment ( in Millions) 3,297 LTM bookings through 6/30/12: 3,400 1,551 47% higher than 12-months ended 6/30/11 2,550 2,240 New unit bookings up 52% 1,092 Aftermarket bookings up 42% 1,700 1,746 By Market (as a % of…
Backlog by Segment ( in Millions) 2,797 2,800 Backlog of 2.8 billion 25% 603 2,246 higher than 6/30/11 2,100 454 2,194 New unit backlog up 22% vs. 1,792 last year 1,400 1,060 scheduled to ship in 2013 Record level at this 700…
Revenues by Segment ( in Millions) 700 636 Total up 8% vs. 2Q11 589 349 Stronger US impact vs. 525 288 2Q11 40 lower 350 New Unit down 5% 301 287 Stronger US impact vs. 175 2Q11 19 lower 0 Aftermarket up 21% 2Q11 2Q12 Stronger…
Second Quarter 2012 Results ( in Millions) 2Q12 2Q11 Change Revenues 635.8 588.9 8% Cost of Sales 468.0 442.9 6% - % of Revenues 73.6% 75.2% Selling & Administrative 88.5 99.6 -11% Research & Development 6.7 7.7 -13% Operating…
New Unit Operating Income & Margins ( in Millions) 30 15.0% 27.3 Margin increase due 22.4 to: 9.5% 20 10.0% 2Q11 adverse impact 7.4% of Wellsville flood Lower overhead 10 5.0% allocations Maintaining full year guidance - low…
Aftermarket Operating Income & Margins ( in Millions) 75 69.9 25% Operating income increase due to: 20% 2Q11 adversely 20.1% impacted by Wellsville 50 46.5 15% flood 16.2% Higher revenues / benefits of operating 10% 25…
Second Half 2012 Performance Strong first half 2012 aftermarket bookings Scheduled new unit backlog 4Q11 supplier issues under control Demonstrated capability with 4Q11 volumes Copyright 2011 17
1H Operating Cash Flow ( in Millions) 1H12 1H11 Net Income 59.3 10.1 D&A 42.8 36.2 Working Capital (97.2) (36.7) Pension Contributions (15.5) (25.7) Other 9.1 (4.3) Net Cash Used in Operating Activities (1.5) (20.4)…
Net Working Capital ( in Millions) 06/30/12 12/31/11 Accts Receivable, Net 409 477 Invenories, Gross 830 778 Less Progress Payments (357) (370) Inventories, Net 473 408 Prepaid Expenses 76 67 Accounts Payable & Accruals (511)…
Net Working Capital ( in Millions) 200 185.0 10.0% Principally driven by 4 NWC as a % of LTM Sales Net Working Capital 6.9% major projects 150 106.0 No change in 100 4.0% 5.0% contracting philosophy on progress…
1H Cash Flow ( in Millions) 1H12 1H11 Net Cash Used In Operating Activities (1.5) (20.4) Investing Activities (77.3) (308.0) Financing Activities 88.9 (1.4) Effect of Exchange Rate (3.5) 14.8 Net Change in Cash 6.6 (315.0) Ending…
Liquidity ( in Millions) 500 763 Revolver matures 2016 428 399 (includes amendment for 400 128 135 EURO facility 63 US) 300 291 borrowed under 300 264 Revolver 200 New 50 million EURO facility 100 (US 63) Outstanding Letters…
Capital Structure at End of Period ( in Millions) Net Debt to Capital 45% Total debt 1,107 45% 46%46% 32% 6.5% Notes 375 due 2021 20% 20% Term Loan - 298 14% 11% Revolver - 291 -3% -5% Other - 143 05 06 07 08…
Sensitivity to Changes in Foreign Currencies ( Millions) revenues non-US dollar denominated 40 to 50% non-US dollar revenues denominated in EUROs Operating income more heavily weighted toward foreign currencies due to corporate…
2012 Outlook ( and Shares in Millions) New Unit Bookings 1.7 to 1.9 Aftermarket Bookings 1.4 to 1.6 New Unit Operating Margins Low Double Digits Aftermarket Operating Margins 22% to 24% Unallocated Expenses 105 to 110 Interest…
Appendix Copyright 2009
NWC Reconciliation to GAAP ( in Millions) 12/31/2011 6/30/2012 Current Assets 1,150.2 1,162.4 Less: Current Liabilities (932.3) (838.3) GAAP Net Working Capital (NWC) 217.9 324.1 Adjustments: Cash and Cash Equivalents (157.6)…
GAAP Reconciliation - Net Debt to Capital ( in Millions) 31-Dec 30-Jun 2005 2006 2007 2008 2009 2010 2011 2012 Total Debt 598.2 505.6 370.3 370.1 370.0 370.0 1,029.7 1,107.2 Less Cash (98.0) (146.8) (206.2) (147.1) (223.2)…
GAAP Reconciliation - Net Debt to EBITDA ( in Millions) 2005 2006 2007 2008 2009 2010 2011 LTM 6/30/12 Net Income 37.1 78.8 106.7 197.7 210.8 146.7 120.8 166.7 Income Taxes 15.5 58.5 60.9 103.6 101.1 69.0 62.9 86.8 Interest Expense…
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