Chart Industries, Inc. (NYSE: GTLS) (“Chart”) today reported
results for the fourth quarter and full year ended December 31,
2023. Results shown are from continuing operations. When referring
to the fourth quarter 2022, full year 2022 or any quarter of 2023
comparative period, all metrics are pro forma for continuing
operations of the combined business of Chart and Howden; this
includes Howden (includes the stub period of January 1, 2023 to
March 16, 2023 where we did not own Howden), excludes Roots™, and
excludes the impacted periods of November and December in
2022 of American Fan, Cofimco, and CryoDiffusion divestitures.
Fourth quarter 2023 highlights (as
compared to the fourth quarter 2022 pro forma):
- Record orders,
backlog, sales, gross profit, gross profit margin, operating
income, operating income margin, EBITDA, EBITDA margin, adjusted
EPS, reported free cash flow (“FCF”) and adjusted free cash
flow
- Record orders of
$1.21 billion, an increase of 28.3%
- Record sales of
$1.02 billion, an increase of $113 million, or 12.5%
- Record backlog
of $4.28 billion, up 3.3% versus Q3 2023
- Record reported
gross margin of 32.9%, an increase of 540 basis points (“bps”)
- Record operating
income of $156.0 million, EBITDA of $220.5 million and adjusted
EBITDA of $245.2 million which represents 24.2% of sales
- Reported diluted
earnings per share (“EPS”) of $0.88; adjusted diluted EPS of
$2.25
- Exceeded
year-one Howden commercial and cost synergy targets; $529.9 million
of commercial synergies, and $181.4 million of cost synergies
achieved to date
- Reported net
cash from operating activities of $130.3 million less capital
expenditures of $20.2 million resulted in $110.1 million of
reported FCF; adjusted FCF was $119.9 million
- Debt repayment
and an increase in cash on hand totaling approximately $291 million
resulted in net leverage ratio of 3.35X
- 2024 guidance
of total sales growth of 28% to 37% and adjusted EBITDA growth
of 52% to 68%
Full year 2023 Highlights (as compared
to full year 2022 pro forma):
- Reported full year 2023 sales of
$3.35 billion; pro forma sales for the full year 2023 from
continuing operations were $3.66 billion, an increase of 11.0%
(11.9% when removing foreign exchange rate impacts)
- Reported full year 2023 gross
margin of 31.0%; pro forma full year reported 2023 gross margin of
31.0%, an increase of 320 basis points when compared to full year
pro forma 2022 gross margin of 27.8%
- Reported full year 2023 operating
income of $390.7 million; pro forma full year reported EBITDA of
$680.3 million and adjusted EBITDA of $774.8 million, which
represents 21.2% of sales
Summary
“We are extremely pleased with the integration
of Howden, having exceeded our year-one commercial and cost
synergies targets ahead of schedule. This is one of many
contributors to our above market growth and increasing operating
margin profile as we provide more full solutions to customers”
stated Jill Evanko, Chart’s CEO and President. “Our 2024 outlook
reflects our record backlog, exposure to secular growth trends such
as energy transition, industrial decarbonization, and clean water
as well as continued automation, productivity, and capacity
actions. Further, our focus on cash generation for debt paydown and
balance sheet deleveraging positions the business to deliver on our
reiterated medium-term financial targets.”
Record fourth quarter 2023 backlog of $4.28
billion was supported by record fourth quarter 2023 orders of $1.21
billion. Full year pro forma 2023 orders of $4.50 billion included
approximately $385 million of global Big LNG related orders.
Additional drivers of our fourth quarter 2023 orders included
hydrogen, small-scale LNG, water treatment, traditional energy,
clean mining, and carbon capture (“CCUS”), many of which
contributed to our fourth quarter 2023 record 172 orders that
individually were over $1 million. This further demonstrates the
traction of our full solution offering in the market. Overall, for
the full year 2023, we booked orders with 322 new customers (new to
both Chart and Howden) and had 106 first-of-a-kind orders,
including an order for a SDOX water treatment project for Saitia
Papers in India as well as an order for a Ventsim™ Control System
for a gold mine in Japan during the fourth quarter 2023.
Additionally, of our 75 Memoranda of Understandings (“MOUs”) and
partnerships that were executed in 2022 and 2023, over 67% of these
partners have placed orders with us. Also, we have a new
partnership with Veolia Chile for water treatment solutions in the
region.
Fourth quarter 2023 sales were a record of $1.02
billion. When compared to the fourth quarter 2022, sales increased
$113 million or 12.5%, and $117 million or 13% compared to the
third quarter 2023.
Fourth quarter 2023 was a record for reported
gross profit as a percent of sales of 32.9%, driven by each of our
four segments having their highest gross margin quarter of the
year. Additionally, our two largest regions, the Americas and
Europe, each had their highest gross profit as a percent of sales
of the year in the fourth quarter 2023. Fourth quarter 2023 gross
profit as a percent of sales grew 540 bps when compared to the
fourth quarter 2022 and grew 210 bps sequentially compared to the
third quarter 2023. This margin increase was the result of ongoing
cost synergy achievement, strong aftermarket, service & repair
margin, price/cost actions, and operational execution. Since the
close of the Howden acquisition, each quarter has produced both
reported and adjusted gross margin over 30%, resulting in record
full-year 2023 reported gross profit as a percent of sales of
31.0%.
Fourth quarter 2023 reported operating income of
$156.0 million was a record and represented 15.4% of sales.
Adjusting for unusual or one-time items primarily related to the
Howden integration, adjusted operating income was $213.4 million
which represents 21.0% of sales.
Reported diluted earnings per share for the
fourth quarter 2023 was $0.88 and when adjusted for one-time costs,
adjusted diluted EPS was $2.25.
Fourth Quarter 2023 Segment Results (as
compared to the fourth quarter 2022 pro forma):
|
Q4 2023 Record |
Cryo Tank Solutions(“CTS”) |
Heat TransferSystems (“HTS”) |
Repair, Service &Leasing (“RSL”) |
SpecialtyProducts |
Chart Industries, Inc |
|
Orders |
|
|
|
|
X |
|
Backlog |
|
X |
|
X |
X |
|
Sales |
X |
X |
X |
|
X |
|
Gross Profit |
X |
X |
X |
|
X |
|
Gross ProfitMargin % |
|
X |
|
|
X |
|
Operating Income |
X |
X |
X |
X |
X |
|
Operating Income Margin % |
|
X |
|
|
X |
|
EBITDA |
|
X |
X |
X |
X |
|
EBITDA Margin % |
|
|
|
|
X |
Cryo Tank Solutions (“CTS”):
Fourth quarter 2023 CTS orders of $157.6 million was the highest
order quarter of 2023, approximately flat to the fourth quarter
2022, and an increase of 1.3% when compared to the third quarter
2023. Fourth quarter 2023 sales of $205.6 million increased 37.4%
and 29.3% when compared to the fourth quarter 2022 and the third
quarter 2023, respectively. Strong fourth quarter 2023 sales
performance was driven by improving throughput, new locations being
certified to work on engineered tanks, and revenue recognition
related to previously booked mobile equipment. Reported gross
profit margin of 22.6% increased 50 bps sequentially driven
primarily by volume, productivity and the long-term agreement
price/cost mechanism normalizing.
Heat Transfer Systems (“HTS”):
Fourth quarter 2023 HTS orders of $324.7 million increased 17.9%
and 84.4% when compared to the fourth quarter 2022 and the third
quarter 2023, respectively. The fourth quarter 2023 HTS orders
included multiple LNG-related awards, as announced on December 28,
2023. Record full year 2023 HTS orders of $1.11 billion included
approximately $385 million of BigLNG related orders and contributed
to December 31, 2023 backlog of $1.72 billion (which does not
include the IPSMR® BigLNG award from an international oil company
that we expect to book in approximately one year). Fourth quarter
2023 HTS sales of $255.2 million was the highest sales quarter of
2023 and had associated reported gross profit margin of 30.1%, the
highest in the past five years. Sales increased 34.3% and 9.8% when
compared to the fourth quarter 2022 and the third quarter 2023,
respectively.
Specialty Products: Fourth
quarter 2023 Specialty Products orders of $399.8 million increased
54.1% when compared to the fourth quarter 2022 and decreased 14.8%
when compared to the third quarter 2023. Fourth quarter 2023 sales
of $217.0 million decreased 24.4% when compared to the fourth
quarter 2022 and sequentially decreased 9.6% when compared to the
third quarter 2023, driven by timing of hydrogen liquefaction
revenue, a specific project for Howden compression for hydrogen
that had higher third quarter 2023 revenue, and the timing of space
exploration revenue (note that we had record space exploration
orders in the full year 2023, setting up a strong revenue year in
2024 for the space end market). Reported gross profit margin of
28.8% increased 300 basis points when compared to the third quarter
2023. Based on the timing of projects in our Specialty Products
backlog, we forecast sales mix to be a tailwind in 2024 relative to
2023.
We are excited to announce that last week we
were awarded a significant Howden hydrogen compression solution
within the renewable hydrogen industry. This synergy award, using
Howden’s industry-leading reciprocating compression technology, is
the largest single compressor award (in dollars) in Howden’s
167-year history, enabled under Chart ownership. This is a
synergy win due to both the commercial and product solution which
combines Chart pressure vessel equipment in the system solution. In
addition, this project brings the future opportunity for
installation and post-installation monitoring.
Repair, Service and Leasing
(“RSL”): Fourth quarter 2023 RSL orders of
$328.4 million increased 24.8% when compared to the fourth quarter
2022 and decreased 0.8% when compared the third quarter 2023.
Fourth quarter 2023 sales of $340.7 million was a record, an
increase of 20.6% and 25.6% when compared to the fourth quarter
2022 and the third quarter 2023, respectively. Reported gross
profit margin of 43.6% increased 30 basis points compared to the
third quarter 2023. It is also worth noting as we look ahead to
2024 that our Digital Uptime assets connected increased more than
53% from 2022 to 2023.
Howden Acquisition Integration and
Synergy Achievement Update
As a reminder, we closed on the acquisition of
Howden on March 17, 2023. Total commercial synergy awards to date
of $529.9 million exceeded our year-one commercial synergy target
of $150 million as well as our original year-three target of $350
million. The orders are primarily related to full solutions and
aftermarket, service, and repair. The breadth of our fourth quarter
2023 commercial synergy awards range from hydrogen compressors for
FleetPilot 350 Bar fueling, to aftermarket orders in North America
for chemicals and mining customers to multiple marine
applications.
We have exceeded our target year-one annualized
cost synergies of $175 million (actual to date of $181.4 million),
a month ahead of our one-year Howden ownership period. More cost
synergy potential has been identified as the teams continue to
generate new ideas and projects inflight conclude. We reiterate our
target for approximately $250 million of cost synergies by the end
of our third year of ownership.
Multiple deleveraging actions drove
December 31, 2023 net leverage ratio of 3.35X.
During the full year 2023, we achieved
approximately $500 million of divestiture proceeds from a portion
of our originally communicated asset sales; of this, approximately
$183 million of cash was received in the fourth quarter 2023, net
of deal-related costs.
Reported fourth quarter 2023 cash from operating
activities was $130.3 million. Capital expenditures were $20.2
million which resulted in free cash flow of $110.1 million. When
adjusting for specific one-time costs, primarily related to the
integration of Howden, adjusted FCF was $119.9 million.
Fourth quarter 2023 capital expenditures of
$20.2 million declined on a sequential basis in line with our
expectations. We continue to fund the Theodore, Alabama expansion
(“Teddy 2”), which we anticipate will complete around the end of
the first quarter 2024, in addition to other productivity actions
such as the brazed aluminum heat exchanger (BAHX) production line
project in Tulsa, Oklahoma.
All of these actions resulted in a net leverage
ratio of 3.35X, marking significant progress toward our anticipated
net leverage ratio range of 2.5X to 2.9X by mid-2024 as well as our
target net leverage ratio range of 2.0X to 2.5X.
2024 Outlook
Global end market demand continues to be strong
as we start 2024. We have over $21 billion of identified potential
orders in our commercial pipeline for the next three years, even
considering the record orders of $1.21 billion in the fourth
quarter 2024. Our fourth quarter 2023 and full year 2023
cancellation rate was consistently and significantly below 1% of
backlog.
We anticipate our full year 2024 sales to be in
a range of $4.7 to $5.0 billion with forecasted full year 2024
adjusted EBITDA in the range of $1.175 to $1.30 billion. Reported
free cash flow guidance of $575 to $625 million is defined as
operating cash flow less capital expenditures. Capital
expenditures are forecast in a range of $115 to $125 million. Our
anticipated 2024 full year adjusted EPS range is $12.00 to $14.00.
This range is based on a tax rate of approximately 20% and a
diluted share count of 47 to 48 million.
FORWARD-LOOKING STATEMENTSCertain 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, 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
regional conflicts and unrest, including the recent turmoil in the
Middle East and the conflict between Russia and Ukraine; 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 INFORMATIONThis press
release contains non-GAAP financial information, including pro
forma information relating to the Howden acquisition, adjusted
gross profit and gross profit as a percent of sales, adjusted net
income, adjusted operating income, adjusted earnings per diluted
share, net income attributable to Chart Industries, Inc. adjusted,
free cash flow and adjusted free cash flow and EBITDA and adjusted
EBITDA. 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 and the slides titled "Fourth Quarter and Full Year
2023 Adjusted EPS," “Fourth Quarter and Full Year 2023 Free Cash
Flow”, “Fourth Quarter and Full Year 2023 Adjusted EBITDA” and
“Fourth Quarter and Full Year 2023 Adjusted Gross Margin” included
in the supplemental slides accompanying this 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 full year
earnings outlook, the Company is not able to provide a
reconciliation of the adjusted EBITDA or free cash flow because
certain items may have not yet occurred or are out of the Company’s
control and/or cannot be reasonably predicted.
CONFERENCE CALLAs previously announced, the
Company has scheduled a conference call for Wednesday, February 28,
2024 at 8:30 a.m. ET to discuss its fourth quarter 2023 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) 888 259 6580Toll North America and other locations:
(+1) 416 764 8624Conference ID: 05384471
A live webcast and replay, as well as presentation slides, will
be available on the Company’s investor relations website through
the following link: Q4 2023 Webcast
Registration. A telephone replay of the conference call
can be accessed approximately two hours following the end of the
call at 1-877-674-7070 with passcode 384471 through March 29,
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 WalshVP, Investor
Relations1-770-721-8899john.walsh@chartindustries.com
|
|
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) (Dollars and shares in millions,
except per share amounts) |
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Sales |
$ |
1,015.0 |
|
|
$ |
441.4 |
|
|
$ |
3,352.5 |
|
|
$ |
1,612.4 |
|
|
Cost of sales |
680.7 |
|
|
317.1 |
|
|
2,312.1 |
|
|
1,205.0 |
|
|
Gross profit |
334.3 |
|
|
124.3 |
|
|
1,040.4 |
|
|
407.4 |
|
|
Selling, general and administrative expenses |
129.9 |
|
|
55.2 |
|
|
486.3 |
|
|
214.5 |
|
|
Amortization expense |
48.4 |
|
|
9.0 |
|
|
163.4 |
|
|
41.4 |
|
|
Operating expenses |
178.3 |
|
|
64.2 |
|
|
649.7 |
|
|
255.9 |
|
|
Operating income (1) (2) (3) (4) |
156.0 |
|
|
60.1 |
|
|
390.7 |
|
|
151.5 |
|
|
Acquisition related finance fees |
— |
|
|
37.0 |
|
|
26.1 |
|
|
37.0 |
|
|
Interest expense, net |
81.2 |
|
|
15.5 |
|
|
271.9 |
|
|
28.8 |
|
|
Financing costs amortization |
5.2 |
|
|
0.8 |
|
|
17.2 |
|
|
2.9 |
|
|
Loss on extinguishment of debt |
7.8 |
|
|
— |
|
|
7.8 |
|
|
— |
|
|
Unrealized loss (gain) on investment in equity securities |
2.6 |
|
|
(24.0 |
) |
|
14.4 |
|
|
(13.1 |
) |
|
Realized gain on equity method investments |
— |
|
|
— |
|
|
— |
|
|
(0.3 |
) |
|
Foreign currency loss (gain) |
4.0 |
|
|
1.8 |
|
|
(4.1 |
) |
|
(0.8 |
) |
|
Other income, net |
(3.3 |
) |
|
(0.4 |
) |
|
(0.6 |
) |
|
(1.9 |
) |
|
Income from continuing operations before income taxes and equity in
earnings of unconsolidated affiliates, net |
58.5 |
|
|
29.4 |
|
|
58.0 |
|
|
98.9 |
|
|
Income tax expense, net |
7.2 |
|
|
11.9 |
|
|
3.0 |
|
|
15.9 |
|
|
Income from continuing operations before equity in earnings of
unconsolidated affiliates, net |
51.3 |
|
|
17.5 |
|
|
55.0 |
|
|
83.0 |
|
|
Equity in earnings (loss) of unconsolidated affiliates, net |
0.1 |
|
|
(0.1 |
) |
|
2.5 |
|
|
(0.4 |
) |
|
Net income from continuing operations |
51.4 |
|
|
17.4 |
|
|
57.5 |
|
|
82.6 |
|
|
Income (loss) from discontinued operations, net of tax |
2.0 |
|
|
(57.6 |
) |
|
(0.6 |
) |
|
(57.6 |
) |
|
Net income (loss) |
53.4 |
|
|
(40.2 |
) |
|
56.9 |
|
|
25.0 |
|
|
Less: Income attributable to noncontrolling interests of continuing
operations, net of taxes |
3.6 |
|
|
0.2 |
|
|
9.6 |
|
|
1.0 |
|
|
Net income (loss) attributable to Chart Industries |
$ |
49.8 |
|
|
$ |
(40.4 |
) |
|
$ |
47.3 |
|
|
$ |
24.0 |
|
|
|
|
|
|
|
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) —
(Continued) (Dollars and shares in millions,
except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Chart common
stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
47.8 |
|
|
17.2 |
|
|
$ |
47.9 |
|
|
$ |
81.6 |
|
|
Less: Mandatory convertible preferred stock dividend
requirement |
6.8 |
|
|
1.4 |
|
|
27.3 |
|
|
1.4 |
|
|
Income from continuing operations attributable to Chart |
41.0 |
|
|
15.8 |
|
|
20.6 |
|
|
80.2 |
|
|
Income (loss) from discontinued operations, net of tax |
2.0 |
|
|
(57.6 |
) |
|
(0.6 |
) |
|
(57.6 |
) |
|
Net income (loss) attributable to Chart common stockholders |
$ |
43.0 |
|
|
$ |
(41.8 |
) |
|
$ |
20.0 |
|
|
$ |
22.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share attributable to Chart
Industries, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.98 |
|
|
$ |
0.42 |
|
|
$ |
0.49 |
|
|
$ |
2.21 |
|
|
Income (loss) from discontinued operations |
0.04 |
|
|
(1.54 |
) |
|
(0.01 |
) |
|
(1.59 |
) |
|
Net income (loss) attributable to Chart Industries, Inc. |
$ |
1.02 |
|
|
$ |
(1.12 |
) |
|
$ |
0.48 |
|
|
$ |
0.62 |
|
|
Diluted earnings per common share attributable to Chart
Industries, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.88 |
|
|
$ |
0.37 |
|
|
$ |
0.44 |
|
|
$ |
1.92 |
|
|
Income (loss) from discontinued operations |
0.04 |
|
|
(1.34 |
) |
|
(0.01 |
) |
|
(1.38 |
) |
|
Net income (loss) attributable to Chart Industries, Inc. |
$ |
0.92 |
|
|
$ |
(0.97 |
) |
|
$ |
0.43 |
|
|
$ |
0.54 |
|
|
Weighted-average number of common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
41.99 |
|
|
37.42 |
|
|
41.97 |
|
|
36.25 |
|
|
Diluted (5) (6) |
46.74 |
|
|
42.93 |
|
|
46.82 |
|
|
41.80 |
|
_______________(1) Includes
depreciation expense of:
- $19.5 and $10.5 for the quarter ended December 31, 2023
and 2022, respectively, and
- $67.7 and $40.5 for the year ended December 31, 2023 and
2022, respectively.
(2) Includes restructuring
costs/(credits) of:
- $2.3 and $0.1 for the quarter ended December 31, 2023 and
2022, respectively, and
- $13.5 and $(1.0) for the year ended December 31, 2023 and
2022, respectively.
(3) Includes acquisition-related
contingent consideration charges/(credits) of:
- $0.1 and $(1.1) for the quarter ended December 31, 2023
and 2022, respectively, and
- $(8.7) and $(3.9) for the year ended December 31, 2023 and
2022, respectively.
(4) Includes deal-related and
integration costs of:
- $8.9 and $1.6 for the quarter ended December 31, 2023 and
2022, respectively, and
- $38.5 and $17.6 for the year ended December 31, 2023 and
2022, respectively.
(5) Includes an additional 4.56 and
4.87 shares related to the convertible notes due 2024 and
associated warrants in our diluted earnings per share calculation
for the fourth quarter and full year 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 2.49 and 2.53 for the fourth
quarter and full year 2023, respectively.
(6) Includes an additional 5.23 and
5.28 shares related to the convertible notes due 2024 and
associated warrants in our diluted earnings per share calculation
for the fourth quarter and full year 2022, respectively. 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 2.80 and
2.81 for the fourth quarter and full year ended 2022,
respectively.
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (Dollars in millions) |
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net Cash Provided By Continuing Operating
Activities |
$ |
130.3 |
|
|
$ |
30.5 |
|
|
$ |
234.8 |
|
|
$ |
80.8 |
|
|
Net Cash Used In Discontinued Operating Activities
(2) |
|
— |
|
|
|
— |
|
|
|
(67.6 |
) |
|
|
— |
|
|
Net Cash Provided By Operating Activities |
|
130.3 |
|
|
|
30.5 |
|
|
|
167.2 |
|
|
|
80.8 |
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Acquisition of business, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(4,322.3 |
) |
|
|
(25.8 |
) |
|
Proceeds from sale of businesses, net of cash divested |
|
182.9 |
|
|
|
— |
|
|
|
474.8 |
|
|
|
— |
|
|
Capital expenditures |
|
(20.2 |
) |
|
|
(26.0 |
) |
|
|
(135.6 |
) |
|
|
(74.2 |
) |
|
Investments |
|
(2.8 |
) |
|
|
(5.0 |
) |
|
|
(11.6 |
) |
|
|
(9.9 |
) |
|
Cash received from settlement of cross-currency swap agreement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.4 |
|
|
Proceeds from sale of assets |
|
5.0 |
|
|
|
— |
|
|
|
8.6 |
|
|
|
— |
|
|
Government grants and other |
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(1.4 |
) |
|
|
(1.1 |
) |
|
Net Cash Provided By (Used In) Continuing Investing
Activities |
|
164.8 |
|
|
|
(31.3 |
) |
|
|
(3,987.5 |
) |
|
|
(101.6 |
) |
|
Net Cash Used In Discontinued Investing
Activities |
|
— |
|
|
|
— |
|
|
|
(2.6 |
) |
|
|
— |
|
|
Net Cash Provided By (Used In) Investing
Activities |
|
164.8 |
|
|
|
(31.3 |
) |
|
|
(3,990.1 |
) |
|
|
(101.6 |
) |
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Borrowings on senior secured and senior unsecured notes |
|
— |
|
|
|
1,940.0 |
|
|
|
— |
|
|
|
1,940.0 |
|
|
Borrowings on credit facilities |
|
560.8 |
|
|
|
132.0 |
|
|
|
1,895.1 |
|
|
|
635.3 |
|
|
Repayments on credit facilities |
|
(666.9 |
) |
|
|
(617.0 |
) |
|
|
(1,901.2 |
) |
|
|
(1,128.2 |
) |
|
Borrowings on term loan |
|
0.1 |
|
|
|
— |
|
|
|
1,747.3 |
|
|
|
— |
|
|
Repayments on term loan |
|
(150.1 |
) |
|
|
— |
|
|
|
(158.3 |
) |
|
|
— |
|
|
Payments for debt issuance costs |
|
(2.7 |
) |
|
|
(4.7 |
) |
|
|
(136.2 |
) |
|
|
(4.7 |
) |
|
Payment of contingent consideration |
|
— |
|
|
|
— |
|
|
|
(4.4 |
) |
|
|
— |
|
|
Proceeds from issuance of common stock, net |
|
— |
|
|
|
675.5 |
|
|
|
11.7 |
|
|
|
675.5 |
|
|
Proceeds from issuance of preferred stock, net |
|
— |
|
|
|
388.4 |
|
|
|
— |
|
|
|
388.4 |
|
|
Payments for equity issuance costs |
|
— |
|
|
|
(0.7 |
) |
|
|
— |
|
|
|
(0.7 |
) |
|
Proceeds from exercise of stock options |
|
0.1 |
|
|
|
0.3 |
|
|
|
1.0 |
|
|
|
2.2 |
|
|
Common stock repurchases from share-based compensation plans |
|
— |
|
|
|
(0.2 |
) |
|
|
(3.0 |
) |
|
|
(3.6 |
) |
|
Dividend distribution to noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
(12.2 |
) |
|
|
— |
|
|
Dividends paid on mandatory convertible preferred stock |
|
(6.8 |
) |
|
|
— |
|
|
|
(27.3 |
) |
|
|
— |
|
|
Net Cash Provided By Financing Activities |
|
(265.5 |
) |
|
|
2,513.6 |
|
|
|
1,412.5 |
|
|
|
2,504.2 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
6.6 |
|
|
|
3.0 |
|
|
|
6.2 |
|
|
|
(0.5 |
) |
|
Net increase (decrease) in cash, cash equivalents, restricted cash,
and restricted cash equivalents including cash classified within
current assets held for sale |
|
36.2 |
|
|
|
2,515.8 |
|
|
|
(2,404.2 |
) |
|
|
2,482.9 |
|
|
Less: net decrease in cash classified within current assets held
for sale |
|
5.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net increase (decrease) in cash, cash equivalents, restricted cash,
and restricted cash equivalents |
|
41.2 |
|
|
|
2,515.8 |
|
|
|
(2,404.2 |
) |
|
|
2,482.9 |
|
|
Cash, cash equivalents, restricted cash, and restricted cash
equivalents at beginning of period |
|
159.9 |
|
|
|
89.5 |
|
|
|
2,605.3 |
|
|
|
122.4 |
|
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH
EQUIVALENTS AT END OF PERIOD (1) |
$ |
201.1 |
|
|
$ |
2,605.3 |
|
|
$ |
201.1 |
|
|
$ |
2,605.3 |
|
_______________(1) Includes cash and
restricted cash equivalents of $12.8 and $1,941.7 classified within
restricted cash on our consolidated balance sheet as of
December 31, 2023 and December 31, 2022,
respectively.
(2) Includes the settlement of
claims related to the Pacific Fertility Clinic lawsuits in the
amount of $73.0 in March 2023.
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in millions) |
|
|
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
188.3 |
|
|
$ |
663.6 |
|
|
Restricted cash |
|
12.8 |
|
|
|
1,941.7 |
|
|
Accounts receivable, net |
|
758.9 |
|
|
|
278.4 |
|
|
Inventories, net |
|
576.3 |
|
|
|
357.9 |
|
|
Other current assets |
|
678.1 |
|
|
|
449.3 |
|
|
Property, plant, and equipment, net |
|
837.6 |
|
|
|
430.0 |
|
|
Goodwill |
|
2,906.8 |
|
|
|
992.0 |
|
|
Identifiable intangible assets, net |
|
2,791.9 |
|
|
|
535.3 |
|
|
Equity method investments |
|
109.9 |
|
|
|
93.0 |
|
|
Investments in equity securities |
|
91.2 |
|
|
|
96.5 |
|
|
Other assets |
|
150.6 |
|
|
|
64.2 |
|
|
TOTAL ASSETS |
$ |
9,102.4 |
|
|
$ |
5,901.9 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current liabilities |
|
1,866.2 |
|
|
|
1,081.6 |
|
|
Long-term debt |
|
3,576.4 |
|
|
|
2,039.8 |
|
|
Other long-term liabilities |
|
720.8 |
|
|
|
96.2 |
|
|
Equity |
|
2,939.0 |
|
|
|
2,684.3 |
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
9,102.4 |
|
|
$ |
5,901.9 |
|
|
|
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
OPERATING SEGMENTS (UNAUDITED) (Dollars in
millions) |
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Sales |
|
|
|
|
|
|
|
|
Cryo Tank Solutions |
$ |
205.6 |
|
|
$ |
126.4 |
|
|
$ |
640.8 |
|
|
$ |
504.3 |
|
|
Heat Transfer Systems |
|
255.2 |
|
|
|
148.4 |
|
|
|
891.2 |
|
|
|
462.7 |
|
|
Specialty Products |
|
217.0 |
|
|
|
117.4 |
|
|
|
819.9 |
|
|
|
448.3 |
|
|
Repair, Service & Leasing |
|
340.7 |
|
|
|
55.2 |
|
|
|
1,029.2 |
|
|
|
209.6 |
|
|
Intersegment eliminations |
|
(3.5 |
) |
|
|
(6.0 |
) |
|
|
(28.6 |
) |
|
|
(12.5 |
) |
|
Consolidated |
$ |
1,015.0 |
|
|
$ |
441.4 |
|
|
$ |
3,352.5 |
|
|
$ |
1,612.4 |
|
|
Gross Profit |
|
|
|
|
|
|
|
|
Cryo Tank Solutions |
$ |
46.5 |
|
|
$ |
28.9 |
|
|
$ |
132.0 |
|
|
$ |
98.7 |
|
|
Heat Transfer Systems |
|
76.7 |
|
|
|
37.2 |
|
|
|
246.8 |
|
|
|
90.6 |
|
|
Specialty Products |
|
62.5 |
|
|
|
32.4 |
|
|
|
221.4 |
|
|
|
138.6 |
|
|
Repair, Service & Leasing |
|
148.6 |
|
|
|
25.8 |
|
|
|
440.2 |
|
|
|
79.5 |
|
|
Consolidated |
$ |
334.3 |
|
|
$ |
124.3 |
|
|
$ |
1,040.4 |
|
|
$ |
407.4 |
|
|
Gross Profit Margin |
|
|
|
|
|
|
|
|
Cryo Tank Solutions |
|
22.6 |
% |
|
|
22.9 |
% |
|
|
20.6 |
% |
|
|
19.6 |
% |
|
Heat Transfer Systems |
|
30.1 |
% |
|
|
25.1 |
% |
|
|
27.7 |
% |
|
|
19.6 |
% |
|
Specialty Products |
|
28.8 |
% |
|
|
27.6 |
% |
|
|
27.0 |
% |
|
|
30.9 |
% |
|
Repair, Service & Leasing |
|
43.6 |
% |
|
|
46.7 |
% |
|
|
42.8 |
% |
|
|
37.9 |
% |
|
Consolidated |
|
32.9 |
% |
|
|
28.2 |
% |
|
|
31.0 |
% |
|
|
25.3 |
% |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
Cryo Tank Solutions |
$ |
22.6 |
|
|
$ |
17.8 |
|
|
$ |
54.5 |
|
|
$ |
54.0 |
|
|
Heat Transfer Systems |
|
55.3 |
|
|
|
27.9 |
|
|
|
175.8 |
|
|
|
51.7 |
|
|
Specialty Products |
|
35.1 |
|
|
|
19.2 |
|
|
|
119.7 |
|
|
|
72.9 |
|
|
Repair, Service & Leasing |
|
82.3 |
|
|
|
18.7 |
|
|
|
203.3 |
|
|
|
51.0 |
|
|
Corporate |
|
(39.3 |
) |
|
|
(23.5 |
) |
|
|
(162.6 |
) |
|
|
(78.1 |
) |
|
Consolidated (1) (2) (3) (4)(5) |
$ |
156.0 |
|
|
$ |
60.1 |
|
|
$ |
390.7 |
|
|
$ |
151.5 |
|
|
Operating Margin |
|
|
|
|
|
|
|
|
Cryo Tank Solutions |
|
11.0 |
% |
|
|
14.1 |
% |
|
|
8.5 |
% |
|
|
10.7 |
% |
|
Heat Transfer Systems |
|
21.7 |
% |
|
|
18.8 |
% |
|
|
19.7 |
% |
|
|
11.2 |
% |
|
Specialty Products |
|
16.2 |
% |
|
|
16.4 |
% |
|
|
14.6 |
% |
|
|
16.3 |
% |
|
Repair, Service & Leasing |
|
24.2 |
% |
|
|
33.9 |
% |
|
|
19.8 |
% |
|
|
24.3 |
% |
|
Consolidated |
|
15.4 |
% |
|
|
13.6 |
% |
|
|
11.7 |
% |
|
|
9.4 |
% |
_______________(1) Restructuring
costs/(credits) for the quarter ended:
- December 31, 2023 were $2.3 ($1.6 – Repair, Service &
Leasing, $0.9 – Specialty Products, $(0.8) – Corporate, $0.4 - Cryo
Tank Solutions, and $0.2 – Heat Transfer Systems).
- December 31, 2022 were $0.1 ($0.2 – Heat Transfer Systems,
and $(0.1) – Repair, Service & Leasing).
(2) Restructuring costs/(credits)
for the year ended:
- December 31, 2023 were $13.5 ($5.2 – Corporate, $4.0 –
Repair, Service & Leasing, $1.8 - Specialty Products, $1.6 –
Cryo Tank Solutions, and $0.9 - Heat Transfer Systems).
- December 31, 2022 were $(1.0) ($(1.4) – Repair, Service
& Leasing, $0.3 – Heat Transfer Systems and $0.1 – Cryo Tank
Solutions).
(3) Acquisition-related contingent
consideration credits for the three months ended:
- December 31, 2023 were nil.
- December 31, 2022 were $1.1 – Specialty
Products
(4) Acquisition-related contingent
consideration credits for the years ended:
- December 31, 2023 were $8.7 ($8.5 – Specialty Products and
$0.2 – Repair, Service & Leasing).
- December 31, 2022 were $3.9 – Specialty
Products.
(5) Includes deal-related and
integration costs of:
- $8.9 and $1.6 for the quarter ended
December 31, 2023 and 2022, respectively, and
- $38.5 and $17.6 for the year ended December 31, 2023 and
2022, respectively
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
ORDERS AND BACKLOG (UNAUDITED) (Dollars in
millions) |
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Orders |
|
|
|
|
|
|
|
|
Cryo Tank Solutions |
$ |
157.6 |
|
|
$ |
139.7 |
|
|
$ |
608.8 |
|
|
$ |
508.4 |
|
|
Heat Transfer Systems |
|
324.7 |
|
|
|
235.8 |
|
|
|
1,114.2 |
|
|
|
1,417.6 |
|
|
Specialty Products |
|
399.8 |
|
|
|
96.4 |
|
|
|
1,341.6 |
|
|
|
665.5 |
|
|
Repair, Service & Leasing |
|
328.4 |
|
|
|
66.3 |
|
|
|
1,100.8 |
|
|
|
218.9 |
|
|
Intersegment eliminations |
|
(1.4 |
) |
|
|
(12.3 |
) |
|
|
(25.2 |
) |
|
|
(30.5 |
) |
|
Consolidated |
$ |
1,209.1 |
|
|
$ |
525.9 |
|
|
$ |
4,140.2 |
|
|
$ |
2,779.9 |
|
|
|
As of |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
Backlog |
|
|
|
|
|
|
Cryo Tank Solutions |
$ |
361.9 |
|
|
$ |
449.4 |
|
|
$ |
371.0 |
|
|
Heat Transfer Systems |
|
1,716.5 |
|
|
|
1,657.5 |
|
|
|
1,300.1 |
|
|
Specialty Products |
|
1,631.1 |
|
|
|
1,460.7 |
|
|
|
645.9 |
|
|
Repair, Service & Leasing |
|
587.9 |
|
|
|
609.7 |
|
|
|
57.0 |
|
|
Intersegment eliminations |
|
(18.6 |
) |
|
|
(36.6 |
) |
|
|
(35.9 |
) |
|
Consolidated |
$ |
4,278.8 |
|
|
$ |
4,140.7 |
|
|
$ |
2,338.1 |
|
|
|
|
CHART INDUSTRIES, INC. AND
SUBSIDIARIESRECONCILIATION OF EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO CHART INDUSTRIES, INC.–
CONTINUING OPERATIONS TO ADJUSTED EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO CHART INDUSTRIES INC.
(UNAUDITED)(Dollars in millions, except per share
amounts) |
|
|
|
|
Q4 2023 DilutedEPS |
|
FY 2023 DilutedEPS |
|
Amounts attributable to Chart common
stockholders |
|
|
|
|
Income (loss) from continuing operations |
$ |
47.8 |
|
|
$ |
47.9 |
|
|
Less: Mandatory convertible preferred stock dividend
requirement |
|
6.8 |
|
|
|
27.3 |
|
|
Reported income (loss) from continuing operations attributable to
Chart (U.S. GAAP) |
|
41.0 |
|
|
|
20.6 |
|
|
Earnings per common share attributable to Chart Industries, Inc. –
continuing operations |
$ |
0.88 |
|
|
$ |
0.44 |
|
|
Investment equities mark-to-market (1) |
|
0.06 |
|
|
|
0.32 |
|
|
Debt and financing costs |
|
— |
|
|
|
1.28 |
|
|
Mandatory convertible preferred stock dividend |
|
0.14 |
|
|
|
0.58 |
|
|
Deal related and integration costs (2) |
|
0.21 |
|
|
|
1.04 |
|
|
Howden amortization |
|
0.99 |
|
|
|
3.24 |
|
|
Startup costs – organic |
|
— |
|
|
|
0.03 |
|
|
Restructuring & related costs (3) |
|
0.05 |
|
|
|
0.31 |
|
|
Loss on extinguishment of debt |
|
0.16 |
|
|
|
0.16 |
|
|
Other one-time items |
|
— |
|
|
|
0.01 |
|
|
Tax effects |
|
(0.24 |
) |
|
|
(1.32 |
) |
|
Adjusted earnings per common share attributable to Chart
Industries, Inc. (non-GAAP) |
$ |
2.25 |
|
|
$ |
6.09 |
|
|
Share Count |
|
46.74 |
|
|
|
46.82 |
|
_______________(1) Includes the
mark-to-market of our inorganic investments in McPhy, Stabilis and
other minority investments.
(2) Includes third party support
fees for the three months ended December 31, 2023 and the year
ended December 31, 2023.
(3) Includes restructuring
costs/(credits) of:
- $2.3 and $0.1 for the quarter ended December 31, 2023 and
2022, respectively, and
- $13.5 and $(1.0) for the year ended December 31, 2023 and
2022, respectively.
_______________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.
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES TO FREE CASH FLOW AND ADJUSTED FREE CASH FLOW
(UNAUDITED) (Dollars in millions) |
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net cash provided by operating activities from continuing
operations |
$ |
130.3 |
|
|
$ |
30.5 |
|
|
$ |
234.8 |
|
|
$ |
80.8 |
|
|
Capital expenditures |
|
(20.2 |
) |
|
|
(26.0 |
) |
|
|
(135.6 |
) |
|
|
(74.2 |
) |
|
Free cash flow (non-GAAP) |
|
110.1 |
|
|
|
4.5 |
|
|
|
99.2 |
|
|
|
6.6 |
|
|
Restructuring, transaction-related and other one-time costs |
|
9.8 |
|
|
|
67.0 |
|
|
|
208.2 |
|
|
|
132.9 |
|
|
Adjusted free cash flow (non-GAAP) |
$ |
119.9 |
|
|
$ |
71.5 |
|
|
$ |
307.4 |
|
|
$ |
139.5 |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net cash used in operating activities from discontinued
operations |
$ |
— |
|
|
$ |
— |
|
|
$ |
(67.6 |
) |
|
$ |
— |
|
|
Capital expenditures |
|
— |
|
|
|
— |
|
|
|
(2.6 |
) |
|
|
— |
|
|
Free cash flow (non-GAAP) |
$ |
— |
|
|
$ |
— |
|
|
$ |
(70.2 |
) |
|
$ |
— |
|
_______________Free cash flow and adjusted free
cash flow are not measures 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 and adjusted free cash flow
facilitate 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 GROSS PROFIT TO
ADJUSTED GROSS PROFIT AND OPERATING INCOME (LOSS) TO ADJUSTED
OPERATING INCOME (LOSS) (UNAUDITED)
(Dollars in millions) |
|
|
|
|
Year Ended December 31, 2023 |
|
|
Cryo TankSolutions |
|
Heat TransferSystems |
|
SpecialtyProducts |
|
Repair,Service &Leasing |
|
IntersegmentEliminations |
|
Corporate |
|
Consolidated |
|
Sales |
$ |
640.8 |
|
|
$ |
891.2 |
|
|
$ |
819.9 |
|
|
$ |
1,029.2 |
|
|
$ |
(28.6 |
) |
|
$ |
— |
|
|
$ |
3,352.5 |
|
|
Gross profit as reported (U.S. GAAP) |
|
132.0 |
|
|
|
246.8 |
|
|
|
221.4 |
|
|
|
440.2 |
|
|
|
— |
|
|
|
— |
|
|
|
1,040.4 |
|
|
Restructuring, transaction-related and other one-time costs |
|
7.3 |
|
|
|
2.7 |
|
|
|
7.8 |
|
|
|
15.7 |
|
|
|
— |
|
|
|
— |
|
|
|
33.5 |
|
|
Adjusted gross profit (non-GAAP) |
$ |
139.3 |
|
|
$ |
249.5 |
|
|
$ |
229.2 |
|
|
$ |
455.9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,073.9 |
|
|
Adjusted gross profit margin (non-GAAP) |
|
21.7 |
% |
|
|
28.0 |
% |
|
|
28.0 |
% |
|
|
44.3 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
32.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as reported (U.S.
GAAP) |
$ |
54.5 |
|
|
$ |
175.8 |
|
|
$ |
119.7 |
|
|
$ |
203.3 |
|
|
$ |
— |
|
|
$ |
(162.6 |
) |
|
|
390.7 |
|
|
Restructuring, transaction-related and other one-time costs |
|
8.5 |
|
|
|
5.5 |
|
|
|
10.8 |
|
|
|
135.5 |
|
|
|
— |
|
|
|
48.9 |
|
|
|
209.2 |
|
|
Adjusted operating income (loss) (non-GAAP) |
$ |
63.0 |
|
|
$ |
181.3 |
|
|
$ |
130.5 |
|
|
$ |
338.8 |
|
|
$ |
— |
|
|
$ |
(113.7 |
) |
|
$ |
599.9 |
|
|
Adjusted operating margin (non-GAAP) |
|
9.8 |
% |
|
|
20.3 |
% |
|
|
15.9 |
% |
|
|
32.9 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
17.9 |
% |
|
|
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS)
(UNAUDITED) (CONTINUED) (Dollars in
millions) |
|
|
|
|
Three Months Ended December 31, 2023 |
|
|
Cryo TankSolutions |
|
Heat TransferSystems |
|
SpecialtyProducts |
|
Repair,Service &Leasing |
|
IntersegmentEliminations |
|
Corporate |
|
Consolidated |
|
Sales |
$ |
205.6 |
|
|
$ |
255.2 |
|
|
$ |
217.0 |
|
|
$ |
340.7 |
|
|
$ |
(3.5 |
) |
|
$ |
— |
|
|
$ |
1,015.0 |
|
|
Gross profit as reported (U.S. GAAP) |
|
46.5 |
|
|
|
76.7 |
|
|
|
62.5 |
|
|
|
148.6 |
|
|
|
— |
|
|
|
— |
|
|
|
334.3 |
|
|
Restructuring, transaction-related and other one-time costs |
|
0.9 |
|
|
|
0.3 |
|
|
|
2.5 |
|
|
|
4.3 |
|
|
|
— |
|
|
|
— |
|
|
|
8.0 |
|
|
Adjusted gross profit (non-GAAP) |
$ |
47.4 |
|
|
$ |
77.0 |
|
|
$ |
65.0 |
|
|
$ |
152.9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
342.3 |
|
|
Adjusted gross profit margin (non-GAAP) |
|
23.1 |
% |
|
|
30.2 |
% |
|
|
30.0 |
% |
|
|
44.9 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
33.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as reported (U.S.
GAAP) |
$ |
22.6 |
|
|
$ |
55.3 |
|
|
$ |
35.1 |
|
|
$ |
82.3 |
|
|
$ |
— |
|
|
$ |
(39.3 |
) |
|
|
156.0 |
|
|
Restructuring, transaction-related and other one-time costs |
|
2.4 |
|
|
|
1.3 |
|
|
|
6.4 |
|
|
|
39.9 |
|
|
|
— |
|
|
|
7.4 |
|
|
|
57.4 |
|
|
Adjusted operating income (loss) (non-GAAP) |
$ |
25.0 |
|
|
$ |
56.6 |
|
|
$ |
41.5 |
|
|
$ |
122.2 |
|
|
$ |
— |
|
|
$ |
(31.9 |
) |
|
$ |
213.4 |
|
|
Adjusted operating margin (non-GAAP) |
|
12.2 |
% |
|
|
22.2 |
% |
|
|
19.1 |
% |
|
|
35.9 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
21.0 |
% |
|
|
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS)
(UNAUDITED) (CONTINUED) (Dollars in
millions) |
|
|
|
|
Year Ended December 31, 2022 |
|
|
Cryo TankSolutions |
|
Heat TransferSystems |
|
SpecialtyProducts |
|
Repair,Service &Leasing |
|
IntersegmentEliminations |
|
Corporate |
|
Consolidated |
|
Sales |
$ |
504.3 |
|
|
$ |
462.7 |
|
|
$ |
448.3 |
|
|
$ |
209.6 |
|
|
$ |
(12.5 |
) |
|
$ |
— |
|
|
$ |
1,612.4 |
|
|
Gross profit as reported (U.S. GAAP) |
|
98.7 |
|
|
|
90.6 |
|
|
|
138.6 |
|
|
|
79.5 |
|
|
|
— |
|
|
|
— |
|
|
$ |
407.4 |
|
|
Restructuring, transaction-related and other one-time costs |
|
9.3 |
|
|
|
11.4 |
|
|
|
9.6 |
|
|
|
1.8 |
|
|
|
— |
|
|
|
— |
|
|
|
32.1 |
|
|
Adjusted gross profit (non-GAAP) |
$ |
108.0 |
|
|
$ |
102.0 |
|
|
$ |
148.2 |
|
|
$ |
81.3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
439.5 |
|
|
Adjusted gross profit margin (non-GAAP) |
|
21.4 |
% |
|
|
22.0 |
% |
|
|
33.1 |
% |
|
|
38.8 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
27.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as reported
(U.S.GAAP) |
$ |
54.0 |
|
|
$ |
51.7 |
|
|
$ |
72.9 |
|
|
$ |
51.0 |
|
|
$ |
— |
|
|
$ |
(78.1 |
) |
|
$ |
151.5 |
|
|
Restructuring, transaction-related and other one-time costs |
|
9.5 |
|
|
|
11.8 |
|
|
|
10.9 |
|
|
|
2.0 |
|
|
|
— |
|
|
|
11.8 |
|
|
|
46.0 |
|
|
Adjusted operating income (loss) (non-GAAP) |
$ |
63.5 |
|
|
$ |
63.5 |
|
|
$ |
83.8 |
|
|
$ |
53.0 |
|
|
$ |
— |
|
|
$ |
(66.3 |
) |
|
$ |
197.5 |
|
|
Adjusted operating margin (non-GAAP) |
|
12.6 |
% |
|
|
13.7 |
% |
|
|
18.7 |
% |
|
|
25.3 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
12.2 |
% |
|
|
|
CHART INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS)
(UNAUDITED) (CONTINUED) (Dollars in
millions) |
|
|
|
|
Three Months Ended December 31, 2022 |
|
|
Cryo TankSolutions |
|
Heat TransferSystems |
|
SpecialtyProducts |
|
Repair,Service &Leasing |
|
IntersegmentEliminations |
|
Corporate |
|
Consolidated |
|
Sales |
$ |
126.4 |
|
|
$ |
148.4 |
|
|
$ |
117.4 |
|
|
$ |
55.2 |
|
|
$ |
(6.0 |
) |
|
$ |
— |
|
|
$ |
441.4 |
|
|
Gross profit as reported (U.S. GAAP) |
|
28.9 |
|
|
|
37.2 |
|
|
|
32.4 |
|
|
|
25.8 |
|
|
|
— |
|
|
|
— |
|
|
|
124.3 |
|
|
Restructuring, transaction-related and other one-time costs |
|
1.0 |
|
|
|
4.5 |
|
|
|
2.0 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
|
Adjusted gross profit (non-GAAP) |
$ |
29.9 |
|
|
$ |
41.7 |
|
|
$ |
34.4 |
|
|
$ |
26.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
132.1 |
|
|
Adjusted gross profit margin (non-GAAP) |
|
23.7 |
% |
|
|
28.1 |
% |
|
|
29.3 |
% |
|
|
47.3 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
29.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as reported
(U.S.GAAP) |
$ |
17.8 |
|
|
$ |
27.9 |
|
|
$ |
19.2 |
|
|
$ |
18.7 |
|
|
$ |
— |
|
|
$ |
(23.5 |
) |
|
$ |
60.1 |
|
|
Restructuring, transaction-related and other one-time costs |
|
1.1 |
|
|
|
4.4 |
|
|
|
1.6 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
7.4 |
|
|
|
14.9 |
|
|
Adjusted operating income (loss) (non-GAAP) |
$ |
18.9 |
|
|
$ |
32.3 |
|
|
$ |
20.8 |
|
|
$ |
19.1 |
|
|
$ |
— |
|
|
$ |
(16.1 |
) |
|
$ |
75.0 |
|
|
Adjusted operating margin (non-GAAP) |
|
15.0 |
% |
|
|
21.8 |
% |
|
|
17.7 |
% |
|
|
34.6 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
17.0 |
% |
_______________Adjusted gross profit and
adjusted operating income (loss) are not measures of financial
performance under U.S. GAAP and should not be considered as an
alternative to gross profit and operating income (loss) in
accordance with U.S. GAAP. Management believes that adjusted gross
profit and adjusted operating income (loss) 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
PRO FORMA ORDERS, SALES, GROSS MARGIN AND ADJUSTED EBITDA
(UNAUDITED) (Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2022 |
|
Q2 2022 |
|
Q3 2022 |
|
Q4 2022 |
|
FY 2022 |
|
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
FY 2023 |
|
Orders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chart Industries, continuing operations |
$ |
636.8 |
|
$ |
887.8 |
|
$ |
729.4 |
|
$ |
525.9 |
|
|
$ |
2,779.9 |
|
|
$ |
740.7 |
|
$ |
1,063.1 |
|
$ |
1,127.3 |
|
$ |
1,209.1 |
|
$ |
4,140.2 |
|
Howden standalone (excluding Roots) |
|
490.5 |
|
|
462.7 |
|
|
473.5 |
|
|
433.0 |
|
|
|
1,859.7 |
|
|
|
355.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
355.0 |
|
Chart Industries, continuing operations pro forma |
|
1,127.3 |
|
|
1,350.5 |
|
|
1,202.9 |
|
|
958.9 |
|
|
|
4,639.6 |
|
|
|
1,095.7 |
|
|
1,063.1 |
|
|
1,127.3 |
|
|
1,209.1 |
|
|
4,495.2 |
|
Less: American Fan, Cofimco, CryoDiffusion impact |
|
— |
|
|
— |
|
|
— |
|
|
(16.2 |
) |
|
|
(16.2 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Chart Industries, continuing operations pro forma to exclude 2022
additional divestitures |
$ |
1,127.3 |
|
$ |
1,350.5 |
|
$ |
1,202.9 |
|
$ |
942.7 |
|
|
$ |
4,623.4 |
|
|
$ |
1,095.7 |
|
$ |
1,063.1 |
|
$ |
1,127.3 |
|
$ |
1,209.1 |
|
$ |
4,495.2 |
|
Fourth quarter orders % change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28.3% |
|
|
|
Year-to-date orders % change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2.8)% |
|
|
Q1 2022 |
|
Q2 2022 |
|
Q3 2022 |
|
Q4 2022 |
|
FY 2022 |
|
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
FY 2023 |
|
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chart Industries, continuing operations |
$ |
354.1 |
|
$ |
404.8 |
|
$ |
412.1 |
|
$ |
441.4 |
|
|
$ |
1,612.4 |
|
|
$ |
531.5 |
|
$ |
908.1 |
|
$ |
897.9 |
|
$ |
1,015.0 |
|
$ |
3,352.5 |
|
Howden standalone (excluding Roots) |
|
396.8 |
|
|
418.6 |
|
|
405.7 |
|
|
481.1 |
|
|
|
1,702.2 |
|
|
|
305.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
305.2 |
|
Chart Industries, continuing operations pro forma |
|
750.9 |
|
|
823.4 |
|
|
817.8 |
|
|
922.5 |
|
|
|
3,314.6 |
|
|
|
836.7 |
|
|
908.1 |
|
|
897.9 |
|
|
1,015.0 |
|
|
3,657.7 |
|
Less: American Fan, Cofimco, CryoDiffusion impact |
|
— |
|
|
— |
|
|
— |
|
|
(20.4 |
) |
|
|
(20.4 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Chart Industries, continuing operations pro forma to exclude 2022
additional divestitures |
$ |
750.9 |
|
$ |
823.4 |
|
$ |
817.8 |
|
$ |
902.1 |
|
|
$ |
3,294.2 |
|
|
$ |
836.7 |
|
$ |
908.1 |
|
$ |
897.9 |
|
$ |
1,015.0 |
|
$ |
3,657.7 |
|
Fourth quarter sales % change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.5% |
|
|
|
Year-to-date sales % change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.0% |
|
|
Q1 2022 |
|
Q2 2022 |
|
Q3 2022 |
|
Q4 2022 |
|
FY 2022 |
|
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
FY 2023 |
|
Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chart Industries, continuing operations |
$ |
83.7 |
|
|
$ |
94.8 |
|
|
$ |
104.6 |
|
|
$ |
124.3 |
|
|
$ |
407.4 |
|
|
$ |
149.3 |
|
|
$ |
280.6 |
|
|
$ |
276.2 |
|
|
$ |
334.3 |
|
|
$ |
1,040.4 |
|
|
Howden standalone (excluding Roots) |
|
120.5 |
|
|
|
135.0 |
|
|
|
127.9 |
|
|
|
129.8 |
|
|
|
513.2 |
|
|
|
94.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
94.2 |
|
|
Chart Industries, continuing operations pro forma |
|
204.2 |
|
|
|
229.8 |
|
|
|
232.5 |
|
|
|
254.1 |
|
|
|
920.6 |
|
|
|
243.5 |
|
|
|
280.6 |
|
|
|
276.2 |
|
|
|
334.3 |
|
|
|
1,134.6 |
|
|
Gross margin as a % of sales |
|
27.2 |
% |
|
|
27.9 |
% |
|
|
28.4 |
% |
|
|
27.5 |
% |
|
|
27.8 |
% |
|
|
29.1 |
% |
|
|
30.9 |
% |
|
|
30.8 |
% |
|
|
32.9 |
% |
|
|
31.0 |
% |
|
Less: American Fan, Cofimco, CryoDiffusion impact |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6.2 |
) |
|
$ |
(6.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Chart Industries, continuing operations pro forma to exclude 2022
additional divestitures |
$ |
204.2 |
|
|
$ |
229.8 |
|
|
$ |
232.5 |
|
|
$ |
247.9 |
|
|
$ |
914.4 |
|
|
$ |
243.5 |
|
|
$ |
280.6 |
|
|
$ |
276.2 |
|
|
$ |
334.3 |
|
|
$ |
1,134.6 |
|
|
Gross margin as a % of sales |
|
|
|
|
|
|
|
27.5 |
% |
|
|
27.8 |
% |
|
|
|
|
|
|
|
|
32.9 |
% |
|
|
31.0 |
% |
|
|
Q1 2022 |
|
Q2 2022 |
|
Q3 2022 |
|
Q4 2022 |
|
FY 2022 |
|
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
FY 2023 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chart Industries, continuing operations |
$ |
55.0 |
|
|
$ |
65.5 |
|
|
$ |
78.0 |
|
|
$ |
97.5 |
|
|
$ |
296.0 |
|
|
$ |
100.6 |
|
|
$ |
195.3 |
|
|
$ |
195.0 |
|
|
$ |
245.2 |
|
|
$ |
736.1 |
|
|
Howden standalone (excluding Roots) |
|
54.2 |
|
|
|
70.2 |
|
|
|
63.3 |
|
|
|
55.2 |
|
|
|
242.9 |
|
|
|
38.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38.7 |
|
|
Chart Industries, continuing operations pro forma |
|
109.2 |
|
|
|
135.7 |
|
|
|
141.3 |
|
|
|
152.7 |
|
|
|
538.9 |
|
|
|
139.3 |
|
|
|
195.3 |
|
|
|
195.0 |
|
|
|
245.2 |
|
|
|
774.8 |
|
|
Adjusted EBITDA as a % of sales |
|
14.5 |
% |
|
|
16.5 |
% |
|
|
17.3 |
% |
|
|
16.6 |
% |
|
|
16.3 |
% |
|
|
16.6 |
% |
|
|
21.5 |
% |
|
|
21.7 |
% |
|
|
24.2 |
% |
|
|
21.2 |
% |
|
Less: American Fan, Cofimco, CryoDiffusion impact |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3.3 |
) |
|
$ |
(3.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
— |
|
|
Chart Industries, continuing operations pro forma to exclude 2022
additional divestitures |
$ |
109.2 |
|
|
$ |
135.7 |
|
|
$ |
141.3 |
|
|
$ |
149.4 |
|
|
$ |
535.6 |
|
|
$ |
139.3 |
|
|
$ |
195.3 |
|
|
$ |
195.0 |
|
|
$ |
245.2 |
|
|
$ |
774.8 |
|
|
Adjusted EBITDA as a % of sales |
|
|
|
|
|
|
|
16.6 |
% |
|
|
16.3 |
% |
|
|
|
|
|
|
|
|
24.2 |
% |
|
|
21.2 |
% |
Chart Industries (NYSE:GTLS)
Historical Stock Chart
Von Jan 2025 bis Feb 2025
Chart Industries (NYSE:GTLS)
Historical Stock Chart
Von Feb 2024 bis Feb 2025
