Dresser-Rand Group Inc. (NYSE: DRC) Third Quarter 2012 Conference Call November 2, 2012 Copyright 2009
Highlights 3Q12 Results Short-term Long-term (Negative) (Positive) Revenue shortfall due Strong new unit mainly to 4 projects: bookings Documents incomplete Upstream / Midstream Reiterating guidance 1.7 Client delayed acceptance…
Full Year 2012 Operating Income ( in Millions) Solar Park Repair & Operation required prior to Impact of asset sale these two National Oil Company EPC release items on delay 2012 Contract in-hand 1 year 20 Awaiting required L/C…
Aftermarket Bookings ( in Millions) 439 450 Another solid bookings Pre-salt 394 60 quarter 375 379 Middle East and Latin 300 America are especially strong 225 Excluding pre-salt award, 150 aftermarket bookings up 75 slightly…
New Unit Bookings ( in Millions) 750 732 Excluding pre-salt award in Pre-salt 3Q11, new unit bookings up 600 410 49% vs. the corresponding 479 period in 2011 450 Major 3Q12 awards: 300 3 offshore platforms 206 322 2 Pipelines…
Awarded 110 Million Project - Supplying DATUM I for Offshore Production Platform Client: Major National Oil Company (NOC) Scope of supply: two single lift modules using DATUM I compressors Large machines - power rating 18 MW each…
Awarded 140 Million Pipeline Projects Strong demand for gas transmission especially in China and former CIS 2Q12 booked a major pipeline award of 95 million in Central Asia. In 3Q12, booked 2 pipeline projects valued at 140 million…
Signed Worldwide Exclusive License Agreement for Small Scale LNG Technology Definitive agreement with Expansion Energy Proprietary VX CycleTM for the small-scale production of Liquefied Natural Gas (LNG) Exclusive rights to market…
Dresser-Rand Equipment Content Significant existing D-R equipment content Solution greatly enhanced by (Guascor) engine offering Extends D-R LNG exposure to very small capacities Capitalizes on low natural gas prices Builds…
Revenues by Segment ( in Millions) 700 631 Total down 6% vs. 3Q11 594 338 Stronger US impact: would 525 347 have been 43 higher by applying exchange rates from 350 3Q11 293 New Unit down 15% 175 248 Stronger US impact: applying…
Third Quarter 2012 Results ( in Millions) 3Q12 3Q11 Change Revenues 594.4 630.5 -6% Cost of Sales 423.8 459.1 -8% - % of Revenues 71.3% 72.8% Selling & Administrative 90.2 89.6 1% Research & Development 6.4 8.6 -26% Operating…
New Unit Operating Income & Margins ( in Millions) 35 15.0% Standard variable margin 30.2 (SVM) improved due to 28 favorable mix 21.1 Operating margin 21 10.3% 10.0% decrease due to: 14 8.5% Lower volume / period costs…
Aftermarket Operating Income & Margins ( in Millions) 85 30.0% Standard variable 76.1 68.8 margin (SVM) 68 improved due to 21.9% favorable mix 51 20.4% 20.0% Operating margin 34 increased due principally due to SVM 17…
Operating Cash Flow ( in Millions) 9 Mos. 12 9 Mos. 11 Net Income 101.4 51.2 D&A 64.2 59.9 Working Capital (104.7) 0.1 Pension Contributions (19.0) (28.8) Other 7.4 (3.6) Net Cash Provided by Operating Activities 49.3…
Net Working Capital ( in Millions) 09/30/12 12/31/11 Accts Receivable, Net 412 477 Inventories, Gross 926 778 Less Progress Payments (420) (370) Inventories, Net 506 408 Prepaid Expenses 87 67 Accounts Payable & Accruals (544)…
Cash Flow ( in Millions) 9 Mos. 12 9 Mos. 11 Net Cash Used In Operating Activities 49.3 78.8 Investing Activities (104.9) (324.3) Financing Activities 77.5 (29.5) Effect of Exchange Rate 0.8 1.3 Net Change in Cash 22.7…
Liquidity ( in Millions) 500 764 Revolver matures 2016 428 396 (includes amendment for 400 128 151 EURO facility 64 US) 300 305 borrowed under 300 245 Revolver 200 New 50 million EURO facility 100 (US 64) Outstanding Letters…
Capital Structure at End of Period ( in Millions) Net Debt to Capital 45% Total debt 1,096 45% 46% 44% 32% 6.5% Notes 375 due 2021 20% 20% Term Loan - 299 14% 11% Revolver - 305 -3% -5% Other - 117 05 06 07 08…
Business Model Volatility ( in Millions) Large Projects (50) as % of New Unit Bookings (excludes Revamps) Overall business becoming 50% more & more complex with higher order values 25% Accounting method (Delivery & Acceptance 0%…
2012 Outlook ( and Shares in Millions) Operating Income 340 New Unit Operating Margins 10% Aftermarket Operating Margins 22% to 24% Unallocated Expenses 100 to 110 R&D (included in unallocated above) 35 to 40 Interest Expense 60…
2013 Outlook ( and Shares in Millions, except Bookings & Revenues are in Billions) New Unit Bookings 1.8 to 2.0 Aftermarket Bookings 1.6 to 1.8 Revenue 3.5 to 3.7 Operating Income 450 to 530 - New Unit Operating Margins Low Double…
Appendix Copyright 2009
NWC Reconciliation to GAAP ( in Millions) 12/31/2011 9/30/2012 Current Assets 1,150.2 1,221.0 Less: Current Liabilities (932.3) (844.3) GAAP Net Working Capital (NWC) 217.9 376.7 Adjustments: Cash and Cash Equivalents (157.6)…
GAAP Reconciliation - Net Debt to Capital ( in Millions) 31-Dec 30-Sep 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 1,095.9 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 9/30/12 Net Income 37.1 78.8 106.7 197.7 210.8 146.7 120.8 167.5 Income Taxes 15.5 58.5 60.9 103.6 101.1 69.0 62.9 86.3 Interest…
Loading...
