Chart Industries Reports Third Quarter 2024 Financial Results
Chart Industries (NYSE: GTLS) reported strong Q3 2024 results with sales of $1.06 billion, up 22.4% year-over-year. Orders reached $1.17 billion, increasing 5.4%. The company achieved record reported gross profit margin of 34.1% and adjusted operating margin of 22.2%. Free cash flow was $174.6 million, contributing to a net leverage ratio reduction to 3.04.
Key financial metrics include reported EBITDA of $248.4 million (23.4% of sales) and adjusted EBITDA of $260.7 million (24.5% of sales). The company reported diluted EPS of $1.34 and adjusted diluted EPS of $2.18. For full-year 2024, Chart expects sales of $4.20-4.30 billion and adjusted EBITDA of $1.015-1.045 billion.
Chart Industries (NYSE: GTLS) ha riportato risultati solidi per il terzo trimestre del 2024 con vendite pari a 1,06 miliardi di dollari, in aumento del 22,4% rispetto all'anno precedente. Gli ordini hanno raggiunto 1,17 miliardi di dollari, con un incremento del 5,4%. L'azienda ha ottenuto un margine di profitto lordo riportato record del 34,1% e un margine operativo rettificato del 22,2%. Il flusso di cassa libero è stato di 174,6 milioni di dollari, contribuendo a una riduzione del rapporto di indebitamento netto a 3,04.
Le principali metriche finanziarie includono un EBITDA riportato di 248,4 milioni di dollari (23,4% delle vendite) e un EBITDA rettificato di 260,7 milioni di dollari (24,5% delle vendite). L'azienda ha riportato un utile per azione diluito di 1,34 dollari e un utile per azione rettificato diluito di 2,18 dollari. Per l'intero anno 2024, Chart prevede vendite comprese tra 4,20 e 4,30 miliardi di dollari e un EBITDA rettificato tra 1,015 e 1,045 miliardi di dollari.
Chart Industries (NYSE: GTLS) informó resultados sólidos para el tercer trimestre de 2024, con ventas de 1.06 mil millones de dólares, un aumento del 22.4% interanual. Los pedidos alcanzaron 1.17 mil millones de dólares, aumentando un 5.4%. La compañía alcanzó un margen de ganancia bruta reportado récord del 34.1% y un margen operativo ajustado del 22.2%. El flujo de caja libre fue de 174.6 millones de dólares, contribuyendo a una reducción en la relación de apalancamiento neto a 3.04.
Las métricas financieras clave incluyen un EBITDA reportado de 248.4 millones de dólares (23.4% de las ventas) y un EBITDA ajustado de 260.7 millones de dólares (24.5% de las ventas). La empresa reportó un EPS diluido de 1.34 dólares y un EPS diluido ajustado de 2.18 dólares. Para el año completo 2024, Chart espera ventas entre 4.20 y 4.30 mil millones de dólares y un EBITDA ajustado de 1.015 a 1.045 mil millones de dólares.
Chart Industries (NYSE: GTLS)는 2024년 3분기 실적을 발표하며 매출이 10억 6천만 달러로 전년 대비 22.4% 증가했다고 보고했습니다. 주문량은 11억 7천만 달러에 달해 5.4% 증가했습니다. 이 회사는 기록적인 34.1%의 총 매출 이익률과 22.2%의 조정된 운영 이익률을 달성했습니다. 자유 현금 흐름은 1억 7천 4백 60만 달러로, 순 레버리지 비율이 3.04로 감소하는 데 기여했습니다.
주요 재무 지표로는 보고된 EBITDA가 2억 4천 8백 40만 달러(매출의 23.4%)이고 조정된 EBITDA는 2억 6천 7백만 달러(매출의 24.5%)로 나타났습니다. 이 회사는 희석된 EPS가 1.34 달러, 조정된 희석 EPS가 2.18 달러라고 보고했습니다. 2024년 전체 연도에 대해 Chart는 매출이 42억에서 43억 달러, 조정된 EBITDA가 10억 1천5백만에서 10억 4천5백만 달러에 이를 것으로 예상하고 있습니다.
Chart Industries (NYSE: GTLS) a annoncé des résultats solides pour le troisième trimestre 2024 avec des ventes de 1,06 milliard de dollars, en hausse de 22,4 % par rapport à l'année précédente. Les commandes ont atteint 1,17 milliard de dollars, en augmentation de 5,4 %. L'entreprise a réalisé une marge brute rapportée record de 34,1 % et une marge opérationnelle ajustée de 22,2 %. Le flux de trésorerie libre était de 174,6 millions de dollars, ce qui a contribué à réduire le ratio d'endettement net à 3,04.
Les indicateurs financiers clés incluent un EBITDA rapporté de 248,4 millions de dollars (23,4 % des ventes) et un EBITDA ajusté de 260,7 millions de dollars (24,5 % des ventes). L'entreprise a déclaré un BPA dilué de 1,34 dollar et un BPA dilué ajusté de 2,18 dollars. Pour l'année complète 2024, Chart s'attend à des ventes comprises entre 4,20 et 4,30 milliards de dollars et un EBITDA ajusté de 1,015 à 1,045 milliard de dollars.
Chart Industries (NYSE: GTLS) meldete im dritten Quartal 2024 starke Ergebnisse mit einem Umsatz von 1,06 Milliarden US-Dollar, was einem Anstieg von 22,4 % im Vergleich zum Vorjahr entspricht. Die Aufträge beliefen sich auf 1,17 Milliarden US-Dollar, was einem Anstieg von 5,4 % entspricht. Das Unternehmen erzielte eine Rekordbruttomarge von 34,1 % und eine angepasste Betriebsmarge von 22,2 %. Der freie Cashflow betrug 174,6 Millionen US-Dollar, was zu einer Reduzierung des Nettoverschuldungsverhältnisses auf 3,04 beitrug.
Wichtige Finanzkennzahlen sind EBITDA von 248,4 Millionen US-Dollar (23,4 % des Umsatzes) und angepasstes EBITDA von 260,7 Millionen US-Dollar (24,5 % des Umsatzes). Das Unternehmen meldete einen verwässerten Gewinn pro Aktie von 1,34 US-Dollar und einen angepassten verwässerten Gewinn pro Aktie von 2,18 US-Dollar. Für das Gesamtjahr 2024 erwartet Chart einen Umsatz von 4,20 bis 4,30 Milliarden US-Dollar und ein angepasstes EBITDA von 1,015 bis 1,045 Milliarden US-Dollar.
- Sales increased 22.4% YoY to $1.06 billion
- Orders grew 5.4% YoY to $1.17 billion
- Record gross profit margin of 34.1%, up 350 basis points
- Adjusted EBITDA increased 39.3% to $260.7 million
- Generated $174.6 million in free cash flow
- Cost synergies exceeded $250 million target ahead of schedule
- Foreign exchange headwind impact of $9.3 million on adjusted EBITDA
- Higher than anticipated tax rate affecting EPS
- Net leverage ratio at 3.04, above target range of 2.0-2.5
- Slowing demand observed in China market
Insights
Strong Q3 2024 performance with significant margin expansion and cash flow generation. Sales increased 22.4% to
- Record gross margin of
34.1% and adjusted operating margin of22.2% - Generated
$174.6 million in free cash flow, reducing net leverage to 3.04x - Cost synergies from Howden acquisition exceeded
$250 million , reaching 2026 target early
Notable wins in LNG and hydrogen sectors, including ExxonMobil's Rovuma LNG project selection. 2024 guidance shows
Strong market positioning across key growth sectors including LNG, hydrogen and carbon capture. Strategic wins demonstrate technology leadership, particularly the IPSMR® process selection for ExxonMobil's Rovuma project. The order backlog of
The Repair, Service & Leasing segment's
ATLANTA, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (NYSE: GTLS) today reported results for the third quarter ended September 30, 2024. Results shown are from continuing operations. When referring to any comparative period, all metrics are pro forma for continuing operations of the combined business of Chart and Howden (pro forma excludes the following businesses that were divested in 2023: Roots, American Fan, Cofimco and Cryo Diffusion). The Howden acquisition closed on March 17, 2023.
Third quarter 2024 highlights compared to third quarter 2023, pro forma:
- Orders of
$1.17 billion , an increase of5.4% - Sales of
$1.06 billion , an increase of22.4% - Reported gross margin of
34.1% , an increase of 350 basis points (“bps”) - Reported operating income of
$178.5 million (16.8% of sales) or$235.9 million when adjusted for unusual items primarily related to the Howden integration and headcount restructuring, resulting in22.2% adjusted operating margin, an increase of 450 bps - Reported EBITDA of
$248.4 million (23.4% of sales) increased53.9% - Adjusted EBITDA of
$260.7 million (24.5% of sales) when adjusting for the items described above was an increase of39.3% - Reported diluted earnings per share (“EPS”) of
$1.34 ; adjusted diluted EPS of$2.18 which would have been$2.48 when considering negative$9.3 million of foreign exchange impact ($0.15 negative EPS impact net of tax) and a higher than originally anticipated tax rate driven by geographic mix ($0.15 negative EPS impact) - Reported net cash from operating activities of
$200.7 million less capital expenditures of$26.1 million resulted in$174.6 million of free cash flow (“FCF”); reiterate our anticipated approximately$400 million full year 2024 FCF outlook
“We generated
Summary of third quarter 2024.
Third quarter 2024 sales of
Orders of
To date, our cost synergies from the Howden acquisition have exceeded
EBITDA of
LNG, hydrogen, data center, and carbon capture (“CCUS”) demand for our equipment and technology is growing.
Our IPSMR® process technology for modular LNG liquefaction and our associated proprietary equipment continues to gain traction, with dozens of technical validations approved for its use in current and potential future projects, including the following:
- ExxonMobil – on behalf of Mozambique Rovuma Venture (MRV), operator of the Area 4 concession in northern Mozambique’s Rovuma Basin – recently announced its strategic decision to select our IPSMR® liquefaction technology and proprietary equipment for the Rovuma LNG project at the Afungi peninsula. The Rovuma LNG Project will produce, liquefy and market natural gas from reservoirs of the Area 4 block of the offshore Rovuma Basin and includes the construction of 12 modules of 1.5 MTA each, with a total LNG capacity of 18 MTPA, as well as associated onshore facilities. The selection of Chart IPSMR® for the 12 liquefaction modules is expected to help enable increased project competitiveness, improved reliability and lower GHG emissions. This project content is not yet in backlog, although early engineering work has been booked.
- The sale of Tellurian to Woodside Energy was completed on October 8, 2024. The Woodside Louisiana LNG (formerly the Driftwood project) will utilize our IPSMR® process technology and associated equipment. The project content is not yet in backlog; we received a small engineering release in October 2024.
- Viability Gap Plc., N Gas Tanzania Ltd., and Tanzania Petroleum Development Corporation have chosen to partner with Chart Industries to utilize our IPSMR® process and associated equipment for their small-scale LNG project in Tanzania, which is anticipated to commence after the finalization of the FEED (Front-End Engineering Design) phase. This project is not yet in backlog.
Additionally, in the third quarter 2024 and October 2024, we have executed the following hydrogen-related agreements, which do not yet have any content in our backlog:
- We have partnered with Renergy Group Partners LLC (“Renergy”), a renewable energy and infrastructure solutions provider, on Renergy’s green hydrogen plant in Egypt, which is anticipated to produce 450,000 tons of hydrogen per year. As part of this partnership, Chart will provide Renergy with hydrogen liquefaction, storage, and compression equipment. Final investment decision (FID) is expected in first quarter 2026, and the first phase of the 160,000MT liquid green hydrogen per year project is expected to be operational in 2030.
- We executed a Memorandum of Understanding (“MOU”) with a developer of hydrogen production projects in Europe for a 30 ton per day hydrogen liquefier and associated ISO containers. Total anticipated Chart project content is anticipated to be approximately
$85 million . The project is expected to FID in 2025. - We executed a Collaboration Agreement to work with PETROJET, Egypt’s largest state-owned construction company, to advance hydrogen projects across Egypt.
- We signed a MOU with the Region Bretagne, BrestPort, Bretagne Development Innovation and EO Concept as part of their European projects to convert their fleet of ships to use LH2 and to develop a port energy hub for the supply of renewable fuels. Chart will bring its expertise for the development of a 10 ton per day (“TPD”) hydrogen liquefaction and refueling at the Port of Brest.
We are seeing increasing scope and size for our CCUS offering, including providing our liquid oxygen bulk storage tanks to the “Catch4Climate” (CI4C) project, an oxyfuel technology carbon capture project led by four European cement manufacturers.
In October 2024, we received another data center air-cooler order and we were awarded a hydrogen liquefaction project with our partner, indigenous owned Salish Elements out of Vancouver, British Columbia (“BC”) for the first phase of their BC Hydrogen Highway project.
Third quarter 2024 segment results (as compared to the third quarter 2023, pro forma continuing operations unless noted otherwise).
Cryo Tank Solutions (“CTS”): Third quarter 2024 CTS orders of
Heat Transfer Systems: Third quarter 2024 HTS orders of
Specialty Products: Third quarter 2024 Specialty Products orders of
Repair, Service and Leasing: Third quarter 2024 RSL orders of
FCF of
Third quarter 2024 reported net cash from operating activities of
We anticipate our 2017 seven-year convertible notes to settle at maturity in November 2024 by paying the principal in cash (approximately
Additional cash-generating and debt paydown activities are currently underway and are anticipated to be completed in the coming few months. These include but are not limited to property sales, the potential of a small product line divestiture and the repatriation of foreign cash.
2024 Outlook.
Our current full year 2024 sales outlook is approximately
2025 Outlook.
Our 2025 sales are anticipated to be in the range of
FORWARD-LOOKING STATEMENTS
Certain statements made in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company’s business plans, including statements regarding completed acquisitions, divestitures, and investments, cost and commercial synergies and efficiency savings, objectives, future orders, revenues, margins, segment sales mix, earnings or performance, liquidity and cash flow, repayment or settlement of maturing debt, inventory levels, capital expenditures, supply chain challenges, inflationary pressures including material cost and pricing increases, business trends, clean energy market opportunities including addressable markets, and governmental initiatives, including executive orders and other information that is not historical in nature. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,” “guidance,” "continue," “target,” or the negative of such terms or comparable terminology.
Forward-looking statements contained in this press release or in other statements made by the Company are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those matters expressed or implied by forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements include: the Company’s ability to successfully integrate the Howden acquisition and other recent acquisitions and achieve the anticipated revenue, earnings, accretion and other benefits from these acquisitions; slower than anticipated growth and market acceptance of new clean energy product offerings; inability to achieve expected pricing increases or continued supply chain challenges including volatility in raw materials and supply; risks relating to the outbreak and continued uncertainty associated with the coronavirus (COVID-19) and regional conflicts and unrest, including the recent turmoil in the Middle East and the conflict between Russia and Ukraine including potential energy shortages in Europe and elsewhere; and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recent Annual Report on Form 10-K filed with the SEC, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement.
USE OF NON-GAAP FINANCIAL INFORMATION
This press release contains non-GAAP financial information, including adjusted operating income, adjusted earnings per diluted share, net income attributable to Chart Industries, Inc. adjusted, free cash flow and EBITDA and adjusted EBITDA. The release also contains various pro forma measures (including pro forma orders, sales, gross profit, adjusted EBITDA, operating income and adjusted operating income), to reflect the following businesses that were divested in 2023: Roots, American Fan, Cofimco and Cryo Diffusion. For additional information regarding the Company's use of non-GAAP financial information, as well as reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), please see the reconciliation pages at the end of this news release.
The Company believes these non-GAAP measures are of interest to investors and facilitate useful period-to-period comparisons of the Company’s financial results, and this information is used by the Company in evaluating internal performance. With respect to the Company’s 2024 and 2025 full year earnings outlook, the Company is not able to provide a reconciliation of the adjusted EBITDA, FCF or adjusted EPS because certain items may have not yet occurred or are out of the Company’s control and/or cannot be reasonably predicted.
CONFERENCE CALL
As previously announced, the Company has scheduled a conference call for Friday, November 1, 2024 at 8:30 a.m. ET to discuss its third quarter 2024 financial results. Participants wishing to join the live Q&A session must dial-in with the following information:
PARTICIPANT INFORMATION:
Toll-Free – North America: (+1) 800 549 8228
Toll North America and other locations: (+1) 289 819 1520
Conference ID: 35817
A live webcast and replay, as well as presentation slides, will be available on the Company’s investor relations website through the following link: Q3 2024 Webcast Registration. A telephone replay of the conference call can be accessed approximately two hours following the end of the call at 1-888-660-6264 with passcode 35817 through December 1, 2024.
About Chart Industries, Inc.
Chart Industries, Inc. is a leading independent global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling for the Nexus of Clean™ - clean power, clean water, clean food, and clean industrials, regardless of molecule. The company’s unique product and solution portfolio across stationary and rotating equipment is used in every phase of the liquid gas supply chain, including engineering, service and repair from installation to preventive maintenance and digital monitoring. Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 capture amongst other applications. Chart is committed to excellence in environmental, social and corporate governance (ESG) issues both for its company as well as its customers. With 64 global manufacturing locations and over 50 service centers from the United States to Asia, Australia, India, Europe and South America, the company maintains accountability and transparency to its team members, suppliers, customers and communities. To learn more, visit www.chartindustries.com
For more information, click here:
http://ir.chartindustries.com/
Chart Industries Investor Relations Contact:
John Walsh
SVP, Investor and Government Relations
1-770-721-8899
john.walsh@chartindustries.com
| CHART INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars and shares in millions, except per share amounts) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| Sales | $ | 1,062.5 | $ | 897.9 | $ | 3,053.5 | $ | 2,337.5 | |||||||
| Cost of sales | 699.9 | 621.7 | 2,037.0 | 1,631.4 | |||||||||||
| Gross profit | 362.6 | 276.2 | 1,016.5 | 706.1 | |||||||||||
| Selling, general and administrative expenses | 135.7 | 122.8 | 413.4 | 356.4 | |||||||||||
| Amortization expense | 48.4 | 49.0 | 143.9 | 115.0 | |||||||||||
| Operating expenses | 184.1 | 171.8 | 557.3 | 471.4 | |||||||||||
| Operating income | 178.5 | 104.4 | 459.2 | 234.7 | |||||||||||
| Acquisition related finance fees | — | — | — | 26.1 | |||||||||||
| Interest expense, net | 80.6 | 90.5 | 248.7 | 202.7 | |||||||||||
| Other (income) expense, net | (2.6 | ) | 3.4 | 4.2 | 6.4 | ||||||||||
| Income (loss) from continuing operations before income taxes and equity in (loss) income of unconsolidated affiliates, net | 100.5 | 10.5 | 206.3 | (0.5 | ) | ||||||||||
| Income tax expense (benefit) | 26.6 | 0.1 | 50.9 | (4.2 | ) | ||||||||||
| Income from continuing operations before equity in (loss) income of unconsolidated affiliates, net | 73.9 | 10.4 | 155.4 | 3.7 | |||||||||||
| Equity in (loss) income of unconsolidated affiliates, net | (0.8 | ) | 1.3 | (2.4 | ) | 2.4 | |||||||||
| Net income from continuing operations | 73.1 | 11.7 | 153.0 | 6.1 | |||||||||||
| Loss from discontinued operations, net of tax | (0.4 | ) | (6.0 | ) | (2.8 | ) | (2.6 | ) | |||||||
| Net income | 72.7 | 5.7 | 150.2 | 3.5 | |||||||||||
| Less: Income attributable to noncontrolling interests of continuing operations, net of taxes | 3.7 | 2.3 | 11.3 | 6.0 | |||||||||||
| Net income (loss) attributable to Chart Industries, Inc. | $ | 69.0 | $ | 3.4 | $ | 138.9 | $ | (2.5 | ) | ||||||
| Amounts attributable to Chart common stockholders | |||||||||||||||
| Income from continuing operations | $ | 69.4 | $ | 9.4 | $ | 141.7 | $ | 0.1 | |||||||
| Less: Mandatory convertible preferred stock dividend requirement | 6.8 | 6.8 | 20.4 | 20.5 | |||||||||||
| Income (loss) from continuing operations attributable to Chart | 62.6 | 2.6 | 121.3 | (20.4 | ) | ||||||||||
| Loss from discontinued operations, net of tax | (0.4 | ) | (6.0 | ) | (2.8 | ) | (2.6 | ) | |||||||
| Net income (loss) attributable to Chart common shareholders | $ | 62.2 | $ | (3.4 | ) | $ | 118.5 | $ | (23.0 | ) | |||||
| Basic earnings per common share attributable to Chart Industries, Inc. | |||||||||||||||
| Income (loss) from continuing operations | $ | 1.49 | $ | 0.06 | $ | 2.89 | $ | (0.49 | ) | ||||||
| Loss from discontinued operations | (0.01 | ) | (0.14 | ) | (0.07 | ) | (0.06 | ) | |||||||
| Net income (loss) attributable to Chart Industries, Inc. | $ | 1.48 | $ | (0.08 | ) | $ | 2.82 | $ | (0.55 | ) | |||||
| Diluted earnings per common share attributable to Chart Industries, Inc. | |||||||||||||||
| Income (loss) from continuing operations | $ | 1.34 | $ | 0.05 | $ | 2.59 | $ | (0.49 | ) | ||||||
| (Loss) income from discontinued operations | (0.01 | ) | (0.12 | ) | (0.06 | ) | (0.06 | ) | |||||||
| Net income (loss) attributable to Chart Industries, Inc. | $ | 1.33 | $ | (0.07 | ) | $ | 2.53 | $ | (0.55 | ) | |||||
| Weighted-average number of common shares outstanding: | |||||||||||||||
| Basic | 42.05 | 41.98 | 42.04 | 41.96 | |||||||||||
| Diluted(1) (2) | 46.67 | 47.61 | 46.89 | 41.96 | |||||||||||
_______________
(1) Includes an additional 4.43 and 5.39 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the three months ended September 30, 2024 and 2023, respectively. The associated hedge, which helps offset this dilution, cannot be taken into account under U.S. generally accepted accounting principles (“GAAP”). If the hedge could have been considered, it would have reduced the additional shares by 2.43 and 2.86 for the three months ended September 30, 2024 and 2023, respectively.
(2) Includes an additional 4.66 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the nine months ended September 30, 2024. The associated hedge, which helps offset this dilution, cannot be taken into account under U.S. GAAP. If the hedge could have been considered, it would have reduced the additional shares by 2.54 for the nine months ended September 30, 2024.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in millions) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| Operating Activities | |||||||||||||||
| Net income | $ | 72.7 | $ | 5.7 | $ | 150.2 | $ | 3.5 | |||||||
| Less: Loss from discontinued operations, net of tax | (0.4 | ) | (6.0 | ) | (2.8 | ) | (2.6 | ) | |||||||
| Net income from continuing operations | 73.1 | 11.7 | 153.0 | 6.1 | |||||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||
| Bridge loan facility fees | — | — | — | 26.1 | |||||||||||
| Depreciation and amortization | 68.1 | 67.0 | 200.0 | 163.2 | |||||||||||
| Employee share-based compensation expense | 4.2 | 2.6 | 14.3 | 9.2 | |||||||||||
| Financing costs amortization | 4.8 | 4.8 | 14.2 | 12.0 | |||||||||||
| Unrealized foreign currency transaction loss (gain) | 8.6 | 1.3 | (5.1 | ) | 0.4 | ||||||||||
| Unrealized (gain) loss on investments in equity securities | (12.8 | ) | 5.2 | (10.8 | ) | 11.8 | |||||||||
| Equity in loss (income) of unconsolidated affiliates | 0.8 | (1.2 | ) | 2.4 | (2.4 | ) | |||||||||
| Loss on sale of business | — | — | 7.8 | — | |||||||||||
| Other non-cash operating activities | 2.0 | (6.3 | ) | 3.0 | (4.9 | ) | |||||||||
| Changes in assets and liabilities, net of acquisitions: | |||||||||||||||
| Accounts receivable | (45.2 | ) | (1.7 | ) | (45.0 | ) | (61.9 | ) | |||||||
| Inventories | 19.4 | 7.6 | 24.4 | 2.6 | |||||||||||
| Unbilled contract revenue | (9.5 | ) | (50.6 | ) | (195.7 | ) | (133.4 | ) | |||||||
| Prepaid expenses and other current assets | 26.6 | 21.6 | (16.4 | ) | 34.0 | ||||||||||
| Accounts payable and other current liabilities | 67.2 | (42.9 | ) | 109.6 | 86.2 | ||||||||||
| Customer advances and billings in excess of contract revenue | (19.3 | ) | (15.5 | ) | (13.3 | ) | 19.1 | ||||||||
| Long-term assets and liabilities | 12.7 | (32.9 | ) | (15.2 | ) | (62.0 | ) | ||||||||
| Net Cash Provided By (Used In) Continuing Operating Activities | 200.7 | (29.3 | ) | 227.2 | 106.1 | ||||||||||
| Net Cash (Used In) Provided By Discontinued Operating Activities | (0.1 | ) | 6.7 | (5.6 | ) | (69.2 | ) | ||||||||
| Net Cash Provided By (Used In) Operating Activities | 200.6 | (22.6 | ) | 221.6 | 36.9 | ||||||||||
| Investing Activities | |||||||||||||||
| Acquisition of businesses, net of cash acquired | — | 17.5 | — | (4,322.3 | ) | ||||||||||
| Proceeds from sale of business | — | 291.9 | (6.1 | ) | 291.9 | ||||||||||
| Capital expenditures | (26.1 | ) | (63.1 | ) | (100.3 | ) | (115.4 | ) | |||||||
| Investments | — | (6.2 | ) | (13.1 | ) | (8.8 | ) | ||||||||
| Other investing activities | 0.1 | 3.3 | 0.4 | 2.3 | |||||||||||
| Net Cash (Used In) Provided By Continuing Investing Activities | (26.0 | ) | 243.4 | (119.1 | ) | (4,152.3 | ) | ||||||||
| Net Cash Used In Discontinued Investing Activities | — | (0.5 | ) | (2.5 | ) | (2.6 | ) | ||||||||
| Net Cash (Used In) Provided By Investing Activities | (26.0 | ) | 242.9 | (121.6 | ) | (4,154.9 | ) | ||||||||
| Financing Activities | |||||||||||||||
| Borrowings on credit facilities | 801.9 | 611.5 | 2,286.7 | 1,334.3 | |||||||||||
| Repayments on credit facilities | (910.2 | ) | (849.5 | ) | (2,246.5 | ) | (1,234.3 | ) | |||||||
| Borrowings on term loan | — | — | — | 1,747.2 | |||||||||||
| Repayments on term loan | — | (4.4 | ) | — | (8.2 | ) | |||||||||
| Payments for debt issuance costs | (4.8 | ) | (0.1 | ) | (10.1 | ) | (133.5 | ) | |||||||
| Payment of contingent consideration | — | (2.7 | ) | — | (4.4 | ) | |||||||||
| Proceeds from issuance of common stock, net | — | — | — | 11.7 | |||||||||||
| Proceeds from exercise of stock options | — | 0.7 | 0.4 | 0.9 | |||||||||||
| Common stock repurchases from share-based compensation plans | (0.2 | ) | (0.3 | ) | (3.3 | ) | (3.0 | ) | |||||||
| Dividend distribution to noncontrolling interests | — | (3.8 | ) | — | (12.2 | ) | |||||||||
| Dividends paid on mandatory convertible preferred stock | (6.8 | ) | (6.8 | ) | (20.4 | ) | (20.5 | ) | |||||||
| Net Cash (Used In) Provided By Financing Activities | (120.1 | ) | (255.4 | ) | 6.8 | 1,678.0 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 7.4 | (2.3 | ) | 4.6 | (0.4 | ) | |||||||||
| Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents including cash classified within current assets held for sale | 61.9 | (37.4 | ) | 111.4 | (2,440.4 | ) | |||||||||
| Less: net increase in cash classified within current assets held for sale | — | (5.0 | ) | — | (5.0 | ) | |||||||||
| Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 61.9 | (42.4 | ) | 111.4 | (2,445.4 | ) | |||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period(1) | 250.6 | 202.3 | 201.1 | 2,605.3 | |||||||||||
| CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD(1) | $ | 312.5 | $ | 159.9 | $ | 312.5 | $ | 159.9 | |||||||
_______________
(1) Includes restricted cash and restricted cash equivalents of
| CHART INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in millions) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 310.2 | $ | 188.3 | |||
| Accounts receivable, less allowances of | 805.6 | 758.9 | |||||
| Inventories, net | 539.4 | 576.3 | |||||
| Unbilled contract revenue | 680.2 | 481.7 | |||||
| Prepaid expenses | 98.8 | 74.9 | |||||
| Other current assets | 114.1 | 134.3 | |||||
| Total Current Assets | 2,548.3 | 2,214.4 | |||||
| Property, plant, and equipment, net | 888.8 | 837.6 | |||||
| Goodwill | 2,987.7 | 2,906.8 | |||||
| Identifiable intangible assets, net | 2,660.4 | 2,791.9 | |||||
| Equity method investments | 103.9 | 109.9 | |||||
| Investments in equity securities | 116.2 | 91.2 | |||||
| Other assets | 193.1 | 150.6 | |||||
| TOTAL ASSETS | $ | 9,498.4 | $ | 9,102.4 | |||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 1,010.1 | $ | 811.0 | |||
| Customer advances and billings in excess of contract revenue | 366.0 | 376.6 | |||||
| Accrued salaries, wages, and benefits | 66.0 | 81.5 | |||||
| Accrued interest | 74.4 | 92.5 | |||||
| Accrued income taxes | 54.4 | 60.0 | |||||
| Current portion of warranty reserve | 17.5 | 29.4 | |||||
| Current portion of long-term debt | 260.7 | 258.5 | |||||
| Operating lease liabilities, current | 20.4 | 18.5 | |||||
| Other current liabilities | 132.9 | 138.2 | |||||
| Total Current Liabilities | 2,002.4 | 1,866.2 | |||||
| Long-term debt | 3,623.9 | 3,576.4 | |||||
| Deferred tax liabilities | 571.8 | 568.2 | |||||
| Accrued pension liabilities | 7.1 | 6.7 | |||||
| Operating lease liabilities, non-current | 61.7 | 50.7 | |||||
| Other long-term liabilities | 96.1 | 95.2 | |||||
| Total Liabilities | 6,363.0 | 6,163.4 | |||||
| Equity | |||||||
| Preferred stock, par value | — | — | |||||
| Common stock, par value | 0.4 | 0.4 | |||||
| Additional paid-in capital | 1,883.6 | 1,872.5 | |||||
| Treasury stock; 760,782 shares at both September 30, 2024 and December 31, 2023 | (19.3 | ) | (19.3 | ) | |||
| Retained earnings | 1,040.6 | 922.1 | |||||
| Accumulated other comprehensive income | 65.9 | 10.8 | |||||
| Total Chart Industries, Inc. Shareholders’ Equity | 2,971.2 | 2,786.5 | |||||
| Noncontrolling interests | 164.2 | 152.5 | |||||
| Total Equity | 3,135.4 | 2,939.0 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 9,498.4 | $ | 9,102.4 | |||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES OPERATING SEGMENTS (UNAUDITED) (Dollars in millions) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| Sales | |||||||||||||||
| Cryo Tank Solutions | $ | 162.5 | $ | 159.0 | $ | 487.7 | $ | 435.2 | |||||||
| Heat Transfer Systems | 256.2 | 232.5 | 746.5 | 636.0 | |||||||||||
| Specialty Products | 283.3 | 240.0 | 797.4 | 602.9 | |||||||||||
| Repair, Service & Leasing | 360.5 | 271.3 | 1,022.0 | 688.5 | |||||||||||
| Intersegment eliminations | — | (4.9 | ) | (0.1 | ) | (25.1 | ) | ||||||||
| Consolidated | $ | 1,062.5 | $ | 897.9 | $ | 3,053.5 | $ | 2,337.5 | |||||||
| Gross Profit | |||||||||||||||
| Cryo Tank Solutions | $ | 40.7 | $ | 35.2 | $ | 106.9 | $ | 85.5 | |||||||
| Heat Transfer Systems | 76.4 | 61.5 | 207.3 | 170.1 | |||||||||||
| Specialty Products | 74.6 | 62.0 | 214.3 | 158.9 | |||||||||||
| Repair, Service & Leasing | 170.9 | 117.5 | 488.0 | 291.6 | |||||||||||
| Consolidated | $ | 362.6 | $ | 276.2 | $ | 1,016.5 | $ | 706.1 | |||||||
| Gross Profit Margin | |||||||||||||||
| Cryo Tank Solutions | 25.0 | % | 22.1 | % | 21.9 | % | 19.6 | % | |||||||
| Heat Transfer Systems | 29.8 | % | 26.5 | % | 27.8 | % | 26.7 | % | |||||||
| Specialty Products | 26.3 | % | 25.8 | % | 26.9 | % | 26.4 | % | |||||||
| Repair, Service & Leasing | 47.4 | % | 43.3 | % | 47.7 | % | 42.4 | % | |||||||
| Consolidated | 34.1 | % | 30.8 | % | 33.3 | % | 30.2 | % | |||||||
| Operating Income (Loss) | |||||||||||||||
| Cryo Tank Solutions | $ | 23.5 | $ | 17.1 | $ | 53.5 | $ | 31.9 | |||||||
| Heat Transfer Systems | 61.3 | 43.4 | 157.6 | 120.5 | |||||||||||
| Specialty Products | 41.9 | 33.7 | 122.0 | 84.6 | |||||||||||
| Repair, Service & Leasing | 102.0 | 42.3 | 265.1 | 121.0 | |||||||||||
| Corporate | (50.2 | ) | (32.1 | ) | (139.0 | ) | (123.3 | ) | |||||||
| Consolidated | $ | 178.5 | $ | 104.4 | $ | 459.2 | $ | 234.7 | |||||||
| Operating Margin | |||||||||||||||
| Cryo Tank Solutions | 14.5 | % | 10.8 | % | 11.0 | % | 7.3 | % | |||||||
| Heat Transfer Systems | 23.9 | % | 18.7 | % | 21.1 | % | 18.9 | % | |||||||
| Specialty Products | 14.8 | % | 14.0 | % | 15.3 | % | 14.0 | % | |||||||
| Repair, Service & Leasing | 28.3 | % | 15.6 | % | 25.9 | % | 17.6 | % | |||||||
| Consolidated | 16.8 | % | 11.6 | % | 15.0 | % | 10.0 | % | |||||||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES ORDERS AND BACKLOG (UNAUDITED) (Dollars in millions) | ||||||
| Three Months Ended | ||||||
| September 30, 2024 | September 30, 2023 | |||||
| Orders | ||||||
| Cryo Tank Solutions | $ | 126.2 | $ | 155.6 | ||
| Heat Transfer Systems | 424.7 | 176.1 | ||||
| Specialty Products | 237.8 | 469.1 | ||||
| Repair, Service & Leasing | 377.9 | 331.2 | ||||
| Intersegment eliminations | 0.9 | (4.7 | ) | |||
| Consolidated | $ | 1,167.5 | $ | 1,127.3 | ||
| As of | |||||||
| September 30, 2024 | September 30, 2023 | ||||||
| Backlog | |||||||
| Cryo Tank Solutions | $ | 316.5 | $ | 449.4 | |||
| Heat Transfer Systems | 1,878.0 | 1,657.5 | |||||
| Specialty Products | 1,755.3 | 1,460.7 | |||||
| Repair, Service & Leasing | 593.4 | 609.7 | |||||
| Intersegment eliminations | (7.9 | ) | (36.6 | ) | |||
| Consolidated | $ | 4,535.3 | $ | 4,140.7 | |||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF EARNINGS (LOSS) AND EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CHART INDUSTRIES, INC. – CONTINUING OPERATIONS TO ADJUSTED EARNINGS (LOSS) AND ADJUSTED EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CHART INDUSTRIES, INC. - CONTINUING OPERATIONS (UNAUDITED) (Dollars in millions, except per share amounts) | |||||||||||||||||||
| Q3 2023 | Q1 2024 | Q2 2024 | Q3 2024 | YTD September 2024 | |||||||||||||||
| Amounts attributable to Chart common stockholders | |||||||||||||||||||
| Net income attributable to Chart Industries, Inc. | $ | 3.4 | $ | 11.3 | $ | 58.6 | $ | 69.0 | $ | 138.9 | |||||||||
| Less: Loss from discontinued operations, net of tax | (6.0 | ) | (2.2 | ) | (0.2 | ) | (0.4 | ) | (2.8 | ) | |||||||||
| Income from continuing operations | 9.4 | 13.5 | 58.8 | 69.4 | 141.7 | ||||||||||||||
| Less: Mandatory convertible preferred stock dividend requirement | 6.8 | 6.8 | 6.8 | 6.8 | 20.4 | ||||||||||||||
| Income from continuing operations attributable to Chart (U.S. GAAP) | 2.6 | 6.7 | 52.0 | 62.6 | 121.3 | ||||||||||||||
| Unrealized loss (gain) on investments in equity securities and loss from strategic equity method investments(1) | 5.1 | 4.3 | 2.4 | (11.0 | ) | (4.3 | ) | ||||||||||||
| Deal related and integration costs(3) | 5.9 | 14.3 | 7.4 | 8.2 | 29.9 | ||||||||||||||
| Howden amortization | 47.6 | 46.6 | 46.9 | 46.3 | 139.8 | ||||||||||||||
| Restructuring & related costs | 4.7 | 5.1 | 4.3 | 1.7 | 11.1 | ||||||||||||||
| Other one-time items(2) | — | — | 2.0 | 3.9 | 5.9 | ||||||||||||||
| Tax effects | (11.8 | ) | (14.4 | ) | (11.8 | ) | (9.8 | ) | (36.0 | ) | |||||||||
| Adjusted earnings attributable to Chart Industries, Inc. (non-GAAP) | $ | 54.1 | $ | 62.6 | $ | 103.2 | $ | 101.9 | $ | 267.7 | |||||||||
| Q3 2023 Diluted EPS | Q1 2024 Diluted EPS | Q2 2024 Diluted EPS | Q3 2024 Diluted EPS | YTD September 2024 Diluted EPS | |||||||||||||||
| Reported income from continuing operations attributable to Chart (U.S. GAAP) | $ | 0.05 | $ | 0.14 | $ | 1.10 | $ | 1.34 | $ | 2.59 | |||||||||
| Unrealized loss (gain) on investments in equity securities and loss from strategic equity method investments(1) | 0.11 | 0.09 | 0.05 | (0.24 | ) | (0.09 | ) | ||||||||||||
| Deal related and integration costs(3) | 0.12 | 0.31 | 0.15 | 0.18 | 0.64 | ||||||||||||||
| Howden amortization | 1.00 | 1.00 | 1.00 | 0.99 | 2.98 | ||||||||||||||
| Restructuring & related costs | 0.10 | 0.11 | 0.09 | 0.04 | 0.24 | ||||||||||||||
| Other one-time items(2) | — | 0.04 | 0.08 | 0.12 | |||||||||||||||
| Tax effects | (0.25 | ) | (0.31 | ) | (0.25 | ) | (0.21 | ) | (0.77 | ) | |||||||||
| Adjusted earnings attributable to Chart Industries, Inc. (non-GAAP) | $ | 1.13 | $ | 1.34 | $ | 2.18 | $ | 2.18 | $ | 5.71 | |||||||||
| Share count | 47.61 | 46.73 | 47.25 | 46.67 | 46.89 | ||||||||||||||
_______________
(1) Includes the mark-to-market of our inorganic investments in Avina, McPhy, Stabilis and certain of our minority investments as well as losses from strategic equity method investments.
(2) Other includes administrative costs related to certain equity investments, asset impairments and associated insurance recoveries, non-repeating legal costs and a one-time adjustment related to a 2022 settlement adjusted for in the second quarter of 2024.
(3) Deal related and integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures
_______________
Adjusted earnings per common share attributable to Chart Industries, Inc. is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to earnings per share in accordance with U.S. GAAP. Management believes that adjusted earnings per common share attributable to Chart Industries, Inc. facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies. Prior to the second quarter of 2024, the impacts of the mandatory convertible preferred stock dividend were excluded from adjusted earnings per common share attributable to Chart Industries, Inc. (non-GAAP). The impacts are now included in adjusted earnings per common share attributable to Chart Industries, Inc. (non-GAAP) and historical periods have been restated to reflect the change in treatment.
| RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO FREE CASH FLOW FROM CONTINUING OPERATIONS AND RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS TO FREE CASH FLOW FROM DISCONTINUED OPERATIONS (UNAUDITED) (Dollars in millions) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| Net cash provided by (used in) operating activities from continuing operations | $ | 200.7 | $ | (29.3 | ) | $ | 227.2 | $ | 106.1 | ||||||
| Capital expenditures | (26.1 | ) | (63.1 | ) | (100.3 | ) | (115.4 | ) | |||||||
| Free cash flow from continuing operations (non-GAAP) | $ | 174.6 | $ | (92.4 | ) | $ | 126.9 | $ | (9.3 | ) | |||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||
| Net cash (used in) provided by operating activities from discontinued operations | $ | (0.1 | ) | $ | 6.7 | $ | (5.6 | ) | $ | (69.2 | ) | |||
| Capital expenditures | — | — | — | (2.6 | ) | |||||||||
| Free cash flow from discontinued operations (non-GAAP) | $ | (0.1 | ) | $ | 6.7 | $ | (5.6 | ) | $ | (71.8 | ) | |||
_______________
Free cash flow is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net cash provided by (used in) operating activities in accordance with U.S. GAAP. Management believes that free cash flow facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of this non-GAAP measure may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATIONS OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (UNAUDITED) (Dollars in millions) | ||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | ||||||||||||||||||||
| Sales | $ | 162.5 | $ | 256.2 | $ | 283.3 | $ | 360.5 | $ | — | $ | — | $ | 1,062.5 | ||||||||||||
| Operating income (loss) as reported (U.S. GAAP) | $ | 23.5 | $ | 61.3 | $ | 41.9 | $ | 102.0 | $ | — | $ | (50.2 | ) | 178.5 | ||||||||||||
| Operating margin | 14.5 | % | 23.9 | % | 14.8 | % | 28.3 | % | 16.8 | % | ||||||||||||||||
| Restructuring & related costs | $ | 0.3 | $ | 0.2 | $ | 0.3 | $ | 0.7 | $ | — | $ | 0.2 | $ | 1.7 | ||||||||||||
| Deal related & integration costs(2) | — | — | — | 0.3 | — | 7.9 | 8.2 | |||||||||||||||||||
| Step-up amortization | 2.1 | 1.1 | 4.8 | 38.4 | — | (0.1 | ) | 46.3 | ||||||||||||||||||
| Other(1) | 0.4 | 0.1 | 0.2 | (0.1 | ) | — | 0.6 | 1.2 | ||||||||||||||||||
| Adjusted operating income (loss) (non-GAAP) | $ | 26.3 | $ | 62.7 | $ | 47.2 | $ | 141.3 | $ | — | $ | (41.6 | ) | $ | 235.9 | |||||||||||
| Adjusted operating margin (non-GAAP) | 16.2 | % | 24.5 | % | 16.7 | % | 39.2 | % | 22.2 | % | ||||||||||||||||
______________
(1) Other includes administrative costs related to certain equity investments, asset impairments and associated insurance recoveries and non-repeating legal costs.
(2) Deal related and integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures
| Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | |||||||||||||||||||||
| Sales | $ | 159.0 | $ | 232.5 | $ | 240.0 | $ | 271.3 | $ | (4.9 | ) | $ | — | $ | 897.9 | ||||||||||||
| Operating income (loss) as reported (U.S. GAAP) | $ | 17.1 | $ | 43.4 | $ | 33.7 | $ | 42.3 | $ | — | $ | (32.1 | ) | $ | 104.4 | ||||||||||||
| Operating margin | 10.8 | % | 18.7 | % | 14.0 | % | 15.6 | % | 11.6 | % | |||||||||||||||||
| Restructuring & related costs | $ | 0.1 | $ | 0.5 | $ | 0.4 | $ | 0.9 | $ | — | $ | 2.3 | $ | 4.2 | |||||||||||||
| Deal related & integration costs(1) | 0.4 | 0.5 | 0.5 | — | — | 3.8 | 5.2 | ||||||||||||||||||||
| Step-up amortization | 2.5 | 1.3 | 5.0 | 38.8 | — | — | 47.6 | ||||||||||||||||||||
| Adjusted operating income (loss) (non-GAAP) | $ | 20.1 | $ | 45.7 | $ | 39.6 | $ | 82.0 | $ | — | $ | (26.0 | ) | $ | 161.4 | ||||||||||||
| Adjusted operating margin (non-GAAP) | 12.6 | % | 19.7 | % | 16.5 | % | 30.2 | % | 18.0 | % | |||||||||||||||||
(1) Deal related and integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures
_______________
Adjusted operating income (loss) is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to operating income (loss) in accordance with U.S. GAAP. Management believes that adjusted operating income (loss) facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF OPERATING SEGMENT ORDERS TO PRO FORMA ORDERS, SALES TO PRO FORMA SALES AND GROSS PROFIT TO PRO FORMA GROSS PROFIT (UNAUDITED) (Dollars in millions) | ||||||||||||||||||||||||||
| Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | ||||||||||||||||||||
| Orders | $ | 155.6 | $ | 176.1 | $ | 469.1 | $ | 331.2 | $ | (4.7 | ) | $ | — | $ | 1,127.3 | |||||||||||
| Less: Orders from businesses divested in the fourth quarter 2023 | 2.7 | 6.9 | 3.6 | 6.8 | — | — | 20.0 | |||||||||||||||||||
| Pro forma orders (non-GAAP) | $ | 152.9 | $ | 169.2 | $ | 465.5 | $ | 324.4 | $ | (4.7 | ) | $ | — | $ | 1,107.3 | |||||||||||
| Sales | $ | 159.0 | $ | 232.5 | $ | 240.0 | $ | 271.3 | $ | (4.9 | ) | $ | — | $ | 897.9 | |||||||||||
| Less: Sales from businesses divested in the fourth quarter 2023 | 3.7 | 4.7 | 15.0 | 6.5 | 0.1 | — | 30.0 | |||||||||||||||||||
| Pro forma sales (non-GAAP) | $ | 155.3 | $ | 227.8 | $ | 225.0 | $ | 264.8 | $ | (5.0 | ) | $ | — | $ | 867.9 | |||||||||||
| Gross Profit | $ | 35.2 | $ | 61.5 | $ | 62.0 | $ | 117.5 | $ | — | $ | — | $ | 276.2 | ||||||||||||
| Gross Profit Margin | 22.1 | % | 26.5 | % | 25.8 | % | 43.3 | % | — | % | 30.8 | % | ||||||||||||||
| Less: Gross profit from businesses divested in the fourth quarter 2023 | 0.7 | 1.3 | 4.1 | 4.1 | 0.1 | — | 10.3 | |||||||||||||||||||
| Pro forma gross profit (non-GAAP) | $ | 34.5 | $ | 60.2 | $ | 57.9 | $ | 113.4 | $ | (0.1 | ) | $ | — | $ | 265.9 | |||||||||||
| Pro forma gross profit margin (non-GAAP) | 22.2 | % | 26.4 | % | 25.7 | % | 42.8 | % | 2.0 | % | 30.6 | % | ||||||||||||||
_______________
Businesses divested in the fourth quarter of 2023 include American Fan, Cofimco and Cryo Diffusion. Pro forma orders, pro forma sales, pro forma gross profit and pro forma gross profit margin are not measures of financial performance under U.S. GAAP and should not be considered as an alternative to orders, sales, gross profit and gross profit margin in accordance with U.S. GAAP. Management believes that pro forma orders, pro forma sales, pro forma gross profit and pro forma gross profit margin facilitate useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) (Dollars in millions) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||
| Net income from continuing operations | $ | 73.1 | $ | 11.7 | $ | 153.0 | $ | 6.1 | ||||||
| Income tax expense (benefit) | 26.6 | 0.1 | 50.9 | (4.2 | ) | |||||||||
| Interest expense, net | 80.6 | 90.5 | 248.7 | 202.7 | ||||||||||
| Acquisition related finance fees | — | — | — | 26.1 | ||||||||||
| Loss on extinguishment of debt | — | — | 0.7 | — | ||||||||||
| Depreciation and amortization | 68.1 | 67.0 | 200.0 | 163.2 | ||||||||||
| EBITDA (non-GAAP) | 248.4 | 169.3 | 653.3 | 393.9 | ||||||||||
| Non-recurring costs: | ||||||||||||||
| Deal related & integration costs(3) | 8.2 | 5.9 | 29.9 | 39.4 | ||||||||||
| Restructuring & related costs | 1.7 | 4.2 | 11.1 | 11.2 | ||||||||||
| Amortization of step-up value of inventory | 6.4 | 7.3 | 21.0 | 18.2 | ||||||||||
| Other one-time items(2) | 2.8 | 0.6 | 4.9 | 4.5 | ||||||||||
| Employee share-based compensation expense | 4.2 | 2.6 | 14.3 | 9.2 | ||||||||||
| Unrealized (gain) loss on investments in equity securities and loss from strategic equity method investments(1) | (11.0 | ) | 5.1 | (4.3 | ) | 11.7 | ||||||||
| Howden FX Hedge | — | — | — | 2.8 | ||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 260.7 | $ | 195.0 | $ | 730.2 | $ | 490.9 | ||||||
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(1) Includes the mark-to-market of our inorganic investments in Avina, McPhy, Stabilis and certain of our minority investments as well as losses from strategic equity method investments.
(2) Other includes administrative costs related to certain equity investments, asset impairments and associated insurance recoveries, non-repeating legal costs and a one-time adjustment related to a 2022 settlement adjusted for in the second quarter of 2024.
(3) Deal related and integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures.
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The reconciliation from net income from continuing operations to EBITDA (non-GAAP) includes acquisition related finance fees and loss on extinguishment of debt. EBITDA and adjusted EBITDA are not measures of financial performance under U.S. GAAP and should not be considered as an alternative to net income from continuing operations in accordance with U.S. GAAP. Management believes that EBITDA and adjusted EBITDA facilitate useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF ORDERS TO PRO FORMA ORDERS, SALES TO PRO FORMA SALES, GROSS PROFIT TO PRO FORMA GROSS PROFIT, ADJUSTED EBITDA TO PRO FORMA ADJUSTED EBITDA, AND OPERATING INCOME TO PRO FORMA ADJUSTED OPERATING INCOME (UNAUDITED) (Dollars in millions) | |||
| Three Months Ended September 30, 2023 | |||
| Orders | $ | 1,127.3 | |
| Less: Orders from businesses divested in the fourth quarter 2023 | 20.0 | ||
| Pro forma orders (non-GAAP) | $ | 1,107.3 | |
| Sales | $ | 897.9 | |
| Less: Sales from businesses divested in the fourth quarter 2023 | 30.0 | ||
| Pro forma sales (non-GAAP) | $ | 867.9 | |
| Gross profit | $ | 276.2 | |
| Less: Gross profit from businesses divested in the fourth quarter 2023 | 10.3 | ||
| Pro forma gross profit (non-GAAP) | $ | 265.9 | |
| Pro forma gross profit margin (non-GAAP) | 30.6 | % | |
| EBITDA (non-GAAP) | $ | 169.3 | |
| Less: Adjusted EBITDA from businesses divested in the fourth quarter 2023 | 7.9 | ||
| Pro forma EBITDA (non-GAAP) | $ | 161.4 | |
| Non-recurring costs: | |||
| Deal related & integration costs(2) | 5.9 | ||
| Restructuring & related costs | 4.2 | ||
| Amortization of step-up value of inventory | 7.3 | ||
| Other one-time items | 0.6 | ||
| Employee share-based compensation expense | 2.6 | ||
| Unrealized (gain) loss on investments in equity securities and loss from strategic equity method investments(1) | 5.1 | ||
| Pro forma adjusted EBITDA (non-GAAP) | $ | 187.1 | |
| Pro forma adjusted EBITDA margin (non-GAAP) | 21.6 | % | |
| Operating income | $ | 104.4 | |
| Less: Operating income from businesses divested in the fourth quarter 2023 | 7.4 | ||
| Pro forma operating income (non-GAAP) | $ | 97.0 | |
| Pro forma operating income margin (non-GAAP) | 11.2 | % | |
| Restructuring related, deal-related, integration and other one time costs | $ | 57.0 | |
| Pro forma adjusted operating income (non-GAAP) | $ | 154.0 | |
| Pro forma adjusted operating income margin (non-GAAP) | 17.7 | % | |
(1) Includes the mark-to-market of our inorganic investments in Avina, McPhy, Stabilis and certain of our minority investments as well as losses from strategic equity method investments.
(2) Deal related and integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures.
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Businesses divested in the fourth quarter of 2023 include American Fan, Cofimco and Cryo Diffusion. Pro forma orders, pro forma sales, pro forma gross profit, adjusted EBITDA, pro forma adjusted EBITDA, pro forma operating income and pro forma adjusted operating income are not measures of financial performance under U.S. GAAP and should not be considered as an alternative to sales and net income from continuing operations in accordance with U.S. GAAP. Management believes that pro forma orders, pro forma sales, pro forma gross profit, adjusted EBITDA, pro forma adjusted EBITDA, pro forma operating income and pro forma adjusted operating income facilitate useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
This press release was published by a CLEAR® Verified individual.
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