Dresser--Rand Dresser 3Q09 Conference Call October 30, 2009 Copyright 2009
Strong 3Q09 Performance Net Income 74.6 million + 59% EPS 0.91 per share + 60% Sales 612.1 million + 13% Operating Income 105.6 million + 28% Acquired Compressor Renewal Services, Ltd. Note: % change versus 3Q08…
LTM Bookings - Third Quarter ( in Millions) 2,426 LTM Total Bookings: 2,500 2,137 27% lower than 9/30/08 2,000 1,064 1,762 18% lower than 9/30/07 837 1,500 By Market (as a % of total 989 bookings): 1,000 30% Upstream 21% Midstream…
New Unit Bookings ( in Millions) 442 450 3Q09 bookings 82% lower than 3Q08 360 Hanas LNG project award 270 1 million TPY 180 Two liquefaction trains 79 90 0 3Q08 3Q09 Copyright 2009 5
New Unit Market Improving . . . October Bookings / Commitments 250 Million Greenfield Refinery Project in Middle East all of the mission critical rotating equipment (21 units) FPSO destined for W. Africa compression and power…
Aftermarket Bookings 1st Nine Months ( in Millions) 900 9 months 2009 105 or 13% lower 799 vs. year ago 68 694 47 18 Reduction in orders from one 600 NOC (50) Unfavorable foreign exchange impact (47) 684 676 300 Quote activity…
Backlog by Segment ( in Millions) 2,500 2,386 Backlog of 1,645 420 31% lower than 9/30/08 2,000 1,751 1,645 6% lower than 9/30/07 294 1,500 356 New unit backlog down 34% vs. last year 1,000 1,966 1,457 Aftermarket backlog down…
Sales by Segment ( in Millions) 625 612 544 265 Total sales + 12.5% vs. 500 237 3Q08 375 New Unit sales + 13.2% vs. 347 3Q08 250 307 Aftermarket sales + 11.7% 125 vs. 3Q08 0 3Q08 3Q09 Copyright 2009 New Units Aftermarket 9
Third Quarter Results ( in Millions) 3Q09 3Q08 Change Sales 612.1 543.9 12.5% Operating Income 105.6 82.8 - Unusual Items 0.0 5.0 Adjusted Operating Income 105.6 87.8 20.2% Interest Expense - net (8.3) (7.1) Other Income 3.2 (5.4)…
Operating Income ( in Millions) 3Q09 3Q08 GAAP Operating Income 105.6 82.8 Adjustments: - Hurricanes / Decompression Incident 0.0 5.0 Adjusted Non-GAAP OI 105.6 87.8 Operating Income Margin 17.2% 16.1% Copyright 2009 11
New Unit Operating Margins 18% 16.1% Improved from 2008 primarily due to: 12.3% 12% Higher revenues Material & labor productivity 6% Lower manufacturing capacity costs Steady state OI margin more 0% 3Q08 3Q09 likely low…
Aftermarket Operating Margins 30% 26.9% 26.5% Essentially flat with last year 20% 10% 0% 3Q08 3Q09 Copyright 2009 13
Liquidity ( in Millions) 518 Liquidity more than adequate 525 198 to meet operating needs 420 327 Outstanding letters of credit 315 180 103 320 210 224 105 0 Sept. 08 Sept. 09 Revolver Cash Copyright 2009 14
Operating Cash Flow ( in Millions) Nine Months Ended Sept. '09 Sept. '08 Net Income 169.4 120.7 D&A 37.9 37.0 Plan Settlement / Curtailment Amend. (0.2) (11.8) Working Capital (103.7) 44.5 Pension Contribution (32.3) (7.6) Other…
Cash Flow ( in Millions) Nine Months Ended Sept. '09 Sept. '08 Net Cash Provided by Operating Activities 79.6 167.0 Investing Activities (37.8) (116.9) Financing Activities 2.0 (149.0) Effect of Exchange Rate 7.3 (4.2) Net…
2009 Estimates ( and Shares in Millions) Full Year Operating Income 340 to 360 Fourth Quarter Operating Income 74 to 94 Interest Expense 8.5 to 9.0 Effective Tax Rate 33% Diluted Shares Outstanding 82.2 Copyright 2009 17
Business Model Characteristics revenues tied to new build-out cyclical Flexible manufacturing model to effectively meet demand swings mitigates large swings in new unit margins revenues tied to installed base much less cycle…
2010 New Units Outlook Inquiries remain at a high level Recovery in New Unit market appears underway New unit backlog at 9/30/09 = 1.3 billion Backlog scheduled to ship in 2010 = 680 million Revenues between 800 million to 1.0…
2010 Aftermarket Outlook ( in Millions) High Book / Ship 1,100 1,200 (mid-point) Short cycle time CAGR 10% High of transactions Revenues between 1.0 to 1.2 900 billion Sales Market recovery NOC recovery 600 475 Local presence…
2010 Summary (Preliminary) ( and Shares in Millions) New Units Revenue 800 to 1,000 Aftermarket Revenue 1,000 to 1,200 Operating Income 260 to 300 - Unallocated Expenses 80 to 85 Interest Expense 30 to 35 Effective Tax Rate…
Appendix Copyright 2009
Third Quarter 2009 Results ( in Millions) 3Q09 3Q08 3Q07 Sales 612.1 543.9 389.3 Operating Income 105.6 82.8 36.4 - Painted Post Strike 0.0 0.0 20.0 - Hurricanes / Painted Post Accident 0.0 5.0 0.0 Adjusted Operating Income 105.6…
EPS 3Q09 3Q08 3Q07 GAAP EPS 0.91 0.57 0.25 Adjustments to (from) Net Income - Hurricanes / Painted Post Accident 0.00 0.04 0.00 - Painted Post Strike 0.00 0.00 0.15 Adjusted Non-GAAP EPS 0.91 0.61 0.40 Copyright 2009 24
Adjusted EBITDA Reconciliation to GAAP ( in Millions) 3Q09 3Q08 3Q07 GAAP Net Income 74.6 46.8 21.3 Interest Expense - net 8.3 7.1 9.3 Depreciation & Amortization 12.4 12.0 12.2 Income Tax Expense 25.9 23.5 11.4 EBITDA 121.2 89.4…
Net Working Capital ( in Millions) 9/30/09 9/30/08 9/30/07 Accts. Receivable, Net 310 300 236 Inventories, Gross 651 741 452 Less Progress Payments (278) (400) (206) Inventories, Net 373 341 246 Prepaid Expenses 43 41 31 Accounts…
Net Debt Reconciliation to GAAP ( in Millions) At 9/30 2009 2008 2007 Total Debt 370 370 370 Less Cash (198) (103) (184) Net Debt 172 267 186 Copyright 2009 27
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