Dresser-Rand Group Inc. (NYSE: DRC) Second Quarter 2013 Conference Call July 26, 2013 Copyright 2013
Second Quarter 2013 Highlights ( in Millions) Operating Income 87 (75 to 90 Guidance) up 20% from 2Q12 Forecasting 2013 revenues and operating income at record levels Strong bookings New units 432 million (472 without 40 de-booking…
New Unit Bookings Moving to the Right 2012 (Q4) 2013 2014+ 1H13 2H13 4 upstream projects 150 13 upstream projects 800 Fundamentals do not appear to have changed and activity continues to be high Copyright 2013 4
Aftermarket Bookings ( in Millions) 450 +12% Another solid bookings 436 quarter 360 392 Latin America especially 270 strong Aftermarket bookings up 180 12% vs. the corresponding 90 period in 2012 0 2Q12 2Q13 Aftermarket…
New Unit Bookings ( in Millions) +25% 2Q13 25% higher vs. 2Q12 450 Major 2Q13 new unit awards: 432 CAES U.S. 360 FPSO - Brazil 346 Gas treatment - Canada 270 Pipeline station - U.S. Methanol plant - China 180 Oil platform -…
Apex CAES - 200 Million Project Award 317 MW facility to be constructed in Texas Validation that CAES is a viable economic investment Expected to lead to further CAES projects in the coming years Approximately 40 projects being…
LTM Bookings by Segment ( in Millions) 3,297 LTM bookings through 6/30/13: 3,400 3,135 1,551 5% lower than 12-months 1,592 ended 6/30/12 2,550 New unit bookings down 12% Aftermarket bookings up 3% 1,700 1,746 By Market (as a % of…
Backlog by Segment ( in Millions) 2,945 3,000 2,797 Backlog of 2.9 billion 5% 691 603 higher than 6/30/12 2,000 2,194 2,254 New unit backlog up 3% vs. last year 900 scheduled to ship in 1,000 2014 Aftermarket backlog up 15% 0…
Revenues by Segment ( in Millions) 805 825 Total up 27% vs. 2Q12 385 636 New Unit up 46% 660 349 495 Aftermarket up 10% 330 420 287 165 0 2Q12 2Q13 New Units Aftermarket Copyright 2013 10
Second Quarter 2013 Results ( in Millions) 2Q13 2Q12 Change Revenues 805.3 635.8 27% Cost of Sales 607.1 468.0 30% - % of Revenues 75.4% 73.6% Selling & Administrative 98.4 88.5 11% Research & Development 12.6 6.7 88% Operating…
New Unit Operating Income & Margins ( in Millions) 30 15.0% Operating margin 27.3 25.8 decreased due to: less favorable sales 9.5% 20 10.0% mix higher fixed cost 6.1% allcation vs. parts 10 5.0% partially offset by better…
Aftermarket Operating Income & Margins ( in Millions) 100 92.8 30.0% Operating margin increased due to: 80 more favorable sales 69.9 24.1% 25.0% mix 60 price increases lower fixed cost 40 20.1% allocations vs. units 20.0%…
1H Operating Cash Flow ( in Millions) 1H13 1H12 Net Income 88.8 59.3 D&A 45.9 42.8 Working Capital (157.3) (97.2) Pension Contributions (10.1) (15.5) Other (1.7) 9.1 Net Cash Used in Operating Activities (34.4) (1.5)…
Net Working Capital ( in Millions) 6/30/13 12/31/12 Accts. Receivable, Net 647 566 Inventories, Gross 957 970 Less Progress Payments (392) (418) Inventories, Net 565 553 Prepaid Expenses 76 67 Accounts Payable & Accruals (661)…
Net Working Capital Components (At End of Period) 16% 15.3% 100% 14% 90% Solar Park Advances from Customers % of Gross Inventory 80% 12% 11.1% POC 70% NWC % of Revenue 10% NOC 60% 8% Traditional Business 50%…
1H Cash Flow ( in Millions) 1H13 1H12 Net Cash Used In Operating Activities (34.4) (1.5) Investing Activities (44.3) (77.3) Financing Activities 128.9 88.9 Effect of Exchange Rate (10.7) (3.5) Net Change in Cash 39.5 6.6…
Liquidity ( in Millions) 388 398 400 765 Revolver matures 2016 123 162 (includes amendment for 300 EURO facility 65 US) 265 413 borrowed under 200 236 Revolver Outstanding Letters of Credit: 100 Revolver - 117 0…
Capital Structure at End of Period ( in Millions) Net Debt to Capital 65% Total debt 1,167 56% 51% 45% 46% Sr. Sub. Notes - 375 42% 43% 37% 32% Sr. Secured Credit 23% 14% 20% facility - 738 9% 11% -5% -3% Other - 54…
2013 Outlook ( and Shares in Millions, except Bookings & Revenues are in Billions) New Unit Bookings 1.5 to 1.7 Aftermarket Bookings 1.6 to 1.8 Revenue 3,400 to 3,600 Operating Income 430 to 450 - New Unit Operating Margins 8% to…
Third Quarter 2013 Outlook Continued seasonality in business 1st 9 Months OI as a % of Full Year Over the 2005 to 2012 period: 80% 76% 73% First nine months OI ranged 57% 59% 62% 61% 59% 60% 50% between 50% and 76% of full…
Appendix Copyright 2013
NWC Reconciliation to GAAP ( in Millions) 12/31/2012 6/30/2013 Current Assets 1,356.0 1,491.2 Less: Current Liabilities (963.0) (891.4) GAAP Net Working Capital (NWC) 393.0 599.8 Adjustments: Cash and Cash Equivalents (140.4)…
GAAP Reconciliation - Net Debt to Capital ( in Millions) December 31, 30-Jun 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Debt 598.2 505.6 370.3 370.1 370.0 370.0 1,027.1 1,050.8 1,166.7 Less Cash (98.0) (146.8) (206.2)…
GAAP Reconciliation - Net Debt to EBITDA ( in Millions) Twelve Months Ended 2005 2006 2007 2008 2009 2010 2011 2012 2Q13 Net Income 37.1 78.8 106.7 197.7 210.8 146.7 120.3 179.0 207.6 Income Taxes 15.5 58.5 60.9 103.6 101.1 69.0…
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