USA: Chart Industries Q1 Sales Up 27 Pct

Chart Industries, Inc., a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases, today reported results for the first quarter ended March 31, 2013.

Highlights include:

• Sales up 27% from prior year quarter
• Reiterates 2013 earnings guidance
• Announces new award in excess of $45 million to provide LNG equipment to PetroChina

Net income for the first quarter of 2013 was $15.5 million, or $0.51 per diluted share. This compares with $14.1 million, or $0.47 per diluted share, for the first quarter of 2012. First quarter 2013 earnings would have been $0.54 per diluted share excluding $1.2 million, or $0.03 per diluted share, of acquisition related retention and severance expense recorded in the quarter. First quarter 2012 earnings would have been $0.48 per share excluding $0.5 million, or $0.01 per diluted share, of acquisition related earn-out adjustments.

Net sales for the first quarter of 2013 increased 27% to $273.6 million from $216.1 million in the comparable period a year ago. Gross profit for the first quarter of 2013 was $79.5 million, or 29.0% of sales, versus $67.6 million, or 31% of sales, in the comparable quarter of 2012.

“Chart is well positioned to capitalize on growing global demand fueled by major investments across the LNG value chain,” stated Sam Thomas, Chart’s Chairman, President and Chief Executive Officer. “The major order we announced today, which will be reflected in second quarter 2013 orders and backlog, continues to validate our status as an integrated supplier of mission critical equipment for the liquefaction, distribution, storage and end use of liquefied natural gas (“LNG”).”

Mr. Thomas continued, “This latest award from PetroChina, in excess of $45 million, is similar to the order we received in the fourth quarter of 2012, it includes LNG fueling stations, self-contained LNG station modules, storage tanks and trailers for LNG service, and is indicative of the significant commitment that China has made to LNG use. In addition, the recent LNG liquefaction and long-haul trucking investments announced by several companies highlight the opportunities in the North American market due to low-cost natural gas, which are encouraging and continue to validate the LNG infrastructure build-out that is underway. We remain excited about our prospects going forward.”

Backlog at March 31, 2013 was $586.6 million, down 5% from the December 31, 2012 level of $617.4 million. Orders for the first quarter of 2013 were $243.6 million and do not include the recent PetroChina award, which will be reflected in second quarter 2013 orders and backlog. First quarter 2012 had record orders of $385.1 million including major LNG project awards in excess of $150 million for several baseload LNG projects in Australia.

Selling, general and administrative (“SG&A”) expenses for the first quarter of 2013 increased $6.6 million compared with the same period in 2012 to $47.2 million, or 17.2% of sales, which was down as a percentage of sales from 18.8% in the prior year’s quarter. The additional costs are primarily due to the AirSep acquisition and employee-related costs as we pursue LNG-related growth opportunities.

Interest expense was $4.0 million for the first quarter of 2013, which included $2.4 million of non-cash accretion expense associated with the Company’s Convertible Notes. Therefore, cash interest was $1.6 million.

Income tax expense was $6.6 million for the first quarter of 2013 and represented an effective tax rate of 29%, the same as the prior year quarter.

Cash and short-term investments were $126.3 million at March 31, 2013, compared to $141.5 million at December 31, 2012.

[mappress]
LNG World News Staff, April 26, 2013