Dresser-Rand Group Inc. (NYSE: DRC) Fourth Quarter 2013 Conference Call March 12, 2014 copyright 2013
2013 Operating Income vs. Pre-release ( in Millions) Pre-release Range Actual OI before impact of draft regulation* 381 391 383 Potential impact of draft regulation: - Asset impairment 50 50 40 - Retroactive tariff reduction 25 25…
History of Good Performance ( in Millions) Revenue Operating Income 400 3,000 3033 383 2736.4 349 338 336 2,400 300 2290 2312 2195 263 258.7 1,800 1954 1665 200 197 1502 176 1,200 1208 100 116 600 0 0 05 06…
2013 Outlook ( and Shares in Millions, except Bookings & Revenues are in Billions) Guidance 3Q12 Call 2013 Pro-forma* New Unit Bookings 1.8 to 2.0 1.3 Aftermarket Bookings 1.6 to 1.8 1.6 Revenue 3.5 to 3.7 3.0 Operating Income 450…
2013 Actual Performance vs. Guidance ( in Millions) Revenue OI Revenue / Operating Income (OI) Guidance Midpoint 3,600 490 Pro-forma adjustments: Kaggio / West-to-East pipeline 83 19 Technical delays (delivered in 1Q14) 135 25…
Continued Focus on Operational Excellence Potential to Accelerate to From 11/11/2010 Investor/Analyst presentation 2014 with GG A critical success factor is copyright 2013 continued operational discipline 7
Major Reasons for the Revenue Shortfall ( in Millions) Change vs. 2010 Assumption New Units: Upstream project delays 800 Reducton in alternate energy demand (engines & steam turbines) 100 Aftermarket: Gas turbine repair -…
Fourth Quarter 2013 Pro-forma Analysis ( in Millions) Revenues Operating Income Amount Amount % of Sales Reported 827.0 86.9 10.5% Pro-forma adjustments: Kaggio / West - East pipeline 83.0 19.0 Asset impairment 40.0 Retroactive…
Fourth Quarter 2013 Pro-forma Analysis ( in Millions) Revenues Operating Income Amount Amount % of Sales Reported 827.0 86.9 10.5% Pro-forma adjustments: Kaggio / West - East pipeline 83.0 19.0 Asset impairment 40.0 Retroactive…
Forecasting Accuracy Process Change Traditional Process: New Process: Plan generated in summer of Preliminary Plan generated in previous year summer of previous year Bookings assumed for August Bookings / Backlog verified at to…
New Unit Bookings ( in Millions) 18% lower than 2012 - project 1,700 1,630 delays especially upstream Major 4Q13 new unit awards: 4Q 363 1,331 LNG project in Australia; 1,360 Two refinery projects India 1,267 4Q 365 & Spain 1,020…
New Unit Markets Upstream - fundamentals remain solid but the timing of orders remains less clear Midstream - strength in large transmission - well positioned to secure work in Central Asia and Mexico Downstream: Refining -…
Aftermarket Bookings ( in Millions) 1,800 1,610 1,533 Record Aftermarket 1,440 4Q 369 bookings 5% higher vs. 4Q 362 year ago 1,241 1,080 1,171 Ongoing recovery in most regions 720 4Q13 bookings 2% higher vs. 4Q12 360 0…
Backlog by Segment ( in Millions) 3,000 2,946 2,849 Backlog of 2.9 billion 575 3% lower than at 12/12 2,500 661 New unit backlog down 2,000 8% vs. last year 1,500 2,371 2,188 1.5 billion scheduled 1,000 to ship in 2014 500…
Sales by Segment ( in Millions) 1,000 844 827 Total sales down 2% 750 Draft Spanish regulation 445 439 reduced sales 23.7 500 New Unit sales down 3% 250 Aftermarket sales down 1% 399 388 Adjusted for impact of draft 0 regulation…
New Unit Operating Income & Margins ( in Millions) 60 18.0% 52.4 4Q13 operating income 49.3 16.0% increased vs. prior year principally due to higher 40 13.5% 14.0% volume 12.4% 4Q13 margin increased 12.0% due to a more favorable…
Aftermarket Operating Income & Margins ( in Millions) 123.9 125 30% Decreases vs. prior 101.5 year principally due to 100 27.8% 26.7% 25% the draft Spanish 75 61.5 regulation 20% 50 Impact of the draft 15% Spanish regulation…
Operating Cash Flow ( in Millions) Twelve Months Ended 12/31/13 (B) 12/31/12 Net Income 169 183 D&A 92 86 Deferred Income Taxes 4 9 Stock-based Compensation 26 22 Amort. of Debt Financing Costs 3 4 Pension Contributions (22) (21)…
Cash Flow ( in Millions) Twelve Months Ended 12/31/13 12/31/12 Net Cash Provided by Oper.Activities (67) 93 Investing Activities (84) (124) Financing Activities 232 27 Effect of Exchange Rate (14) (1) Net Change in Cash 67…
2014 Outlook ( and Shares in Millions, except Bookings are in Billions) New Unit Bookings Up 5% to 10% Aftermarket Bookings Up 5% to 10% Revenue 2,900 to 3,100 Operating Income 377 to 396 Unallocated Expenses 110 to 115 Interest…
2014 Revenues Initial Projections vs. Present ( in Millions) Range Initial New Unit Projection 1,650 1,800 Assumed 4Q13 NU bookings to ship in 2014 (530) (550) Actual 4Q13 NU bookings 365 365 Actual 4Q13 NU bookings to ship in 2015…
First Quarter 2014 Outlook Continued seasonality in business 1Q operating income averaged 13% of full year OI over the 2005 to 2013 period (excluding 2010 - 25%) Q1 OI has ranged between 8% and 20% 1Q14 operating income as a % of…
Appendix copyright 2013
NWC Reconciliation to GAAP ( in Millions) Current Assets 1,735.9 1,356.0 Less: Current Liabilities (969.8) (963.0) GAAP Net Working Capital (NWC) 766.1 393.0 Adjustments: Cash and Cash Equivalents (198.5) (140.4) Deferred Income…
GAAP Reconciliation - Net Debt to Capital ( in Millions) 31-Dec 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Debt 598.2 505.6 370.3 370.1 370.0 370.0 1,029.7 1,050.8 1,287.0 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 2012 2013 Net Income 37.1 78.8 106.7 197.7 210.8 146.7 120.8 179.0 168.4 Income Taxes 15.5 58.5 60.9 103.6 101.1 69.0 62.9 92.8 88.2 Interest…
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