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Exhibit 99.1

Chart Industries Reports 2013 First Quarter Results

Cleveland, Ohio – April 25, 2013 – Chart Industries, Inc. (NASDAQ: GTLS), 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.

SEGMENT HIGHLIGHTS

Energy & Chemical (“E&C”) segment sales increased 17.5% to $80.9 million for the first quarter of 2013 compared with $68.8 million for the same quarter in the prior year. Gross margins were lower due to project mix and some higher costs as we execute on multiple projects, including a record number of large baseload projects, and concentrate on maximizing throughput. Higher costs due to some labor inefficiencies and project scope changes negatively impacted margins about 4% in the quarter. This project was shipped during the second quarter and certain costs associated with the project scope changes may possibly be recovered. In addition, the prior year quarter margin improved about 3.5% due to completion of projects including income recognition of project reserves.

Distribution & Storage (“D&S”) segment sales increased 22.5% to $128.7 million for the first quarter of 2013 compared with $105.1 million for the same quarter in the prior year. The increase was led by substantial growth in sales of LNG equipment. D&S gross profit margin was 28.4% in the quarter compared with 28% a year ago. Gross margins improved due to product mix and higher volume.

BioMedical segment sales increased 51.8% to $64.1 million for the first quarter of 2013 compared with $42.2 million for the same quarter in the prior year. This increase is due to the AirSep acquisition that was completed during the third quarter of 2012, partially offset by continued weakness in the European market and the delay in the Medicare competitive bidding process in the U.S. BioMedical gross profit margin decreased to 34.4% in the quarter compared with 38.9% for the same period in 2012. Lower respiratory volume and product mix contributed to the decline.

OUTLOOK

Order and shipment trends are progressing as expected in 2013, with significant growth in LNG and petro-chemical opportunities, including related inquiries. We are reiterating our 2013 guidance with sales expected to be in the range of $1.2 to $1.3 billion. Full year earnings per share for 2013 are still expected to be in the range of $2.90 to $3.30 per diluted share, on approximately 30.5 million weighted average shares outstanding. Included in our 2013 earnings estimates are approximately $0.10 per diluted share for acquisition related restructuring charges associated with the AirSep acquisition. Excluding these charges, earnings are expected to be in a range of $3.00 to $3.40 per share.


Our weighted average shares projection excludes any potential future dilution impact associated with the Company’s Convertible Notes and related derivative securities, which is driven by the Company’s average stock price and would, if applicable, result in additional shares being included in weighted average shares outstanding. Upon conversion, our hedge on the Convertible Notes protects against dilution up to $84.96 per share, but until conversion occurs, the hedge is considered anti-dilutive under Generally Accepted Accounting Principles and cannot be factored when computing earnings per share.


FORWARD-LOOKING STATEMENTS

Certain statements made in this news 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 plans, objectives, future orders, revenues, earnings or performance, liquidity and cash flow, capital expenditures, business trends, and other information that is not historical in nature. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “expects,” “anticipates,” “believes,” “projects,” “forecasts,” “outlook,” “guidance,” “continue,” or the negative of such terms or comparable terminology.

Forward-looking statements contained in this news 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. These factors and uncertainties include, among others, the following: the cyclicality of the markets that the Company serves and the vulnerability of those markets to economic downturns; a delay, significant reduction in or loss of purchases by large customers; a delay in the anticipated timing of LNG infrastructure build out or respiratory therapy demand recovery; fluctuations in energy prices; the potential for negative developments in the natural gas industry related to hydraulic fracturing; changes in government energy policy or the failure of expected changes in policy to materialize; competition; economic downturns and deteriorating financial conditions; our ability to manage our fixed-price contract exposure; our ability to successfully manage our planned operational expansions; our reliance on key suppliers and potential supplier failures or defects; the modification or cancellation of orders in our backlog; changes in government healthcare regulations and reimbursement policies; general economic, political, business and market risks associated with the Company’s international operations and transactions; challenges and uncertainties associated with efforts to acquire and integrate new product lines or businesses; the Company’s ability to successfully integrate AirSep’s business; loss of key employees and deterioration of employee or labor relations; litigation and disputes involving the Company, including product liability, contract, warranty, employment and environmental claims; variability in operating results associated with unanticipated increases in warranty returns of Company products; fluctuations in foreign currency exchange and interest rates; financial distress of third parties; the regulation of our products by the U.S. Food & Drug Administration and other governmental authorities; the pricing and availability of raw materials; potential future impairment of the Company’s significant goodwill and other intangibles; the cost of compliance with environmental, health and safety laws; additional liabilities related to taxes; the impact of severe weather; and volatility and fluctuations in the price of the Company’s stock.

For a discussion of these and additional factors that could cause actual results to differ from those described in the forward-looking statements, see the Company’s filings with the Securities and Exchange Commission, including Item 1A (Risk Factors) in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement.

Chart is a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The majority of Chart’s products are used throughout the liquid gas supply chain for purification, liquefaction,


distribution, storage and end-use applications, the largest portion of which are energy-related. Chart has domestic operations located across the United States and an international presence in Asia, Australia and Europe. For more information, visit: http://www.chartindustries.com.

Use of Non-GAAP Financial Information:

To supplement the unaudited condensed consolidated financial statements presented in accordance with U.S. GAAP in this news release, certain non-GAAP financial measures as defined by the SEC rules are used. The non-GAAP measures included in this news release have been reconciled to the comparable GAAP measures within an accompanying table, shown on the last page of this news release.

As previously announced, the Company will discuss its first quarter 2013 results on a conference call on Thursday, April 25, 2013 at 10:30 a.m. ET. Participants may join the conference call by dialing (877) 312-9395 in the U.S. or (970) 315-0456 from outside the U.S. A live webcast presentation will also be accessible at 10:30 a.m. ET at http://www.chartindustries.com. Please log-in or dial-in at least five minutes prior to the start time.

A taped replay of the conference call will be archived on the Company’s website, www.chartindustries.com, approximately one hour after the call concludes. You may also listen to a taped replay of the conference call by dialing (855) 859-2056 in the U.S. or (404) 537-3406 outside the U.S. and entering Conference Number 35423263. The telephone replay will be available beginning 1:30 p.m. ET, Thursday April 25, 2013 until 11:59 p.m. ET, Friday, May 3, 2013.

For more information, click here:

http://ir.chartindustries.com/

 

Contact:       
Michael F. Biehl   or      Kenneth J. Webster
Executive Vice President,        Vice President, Chief Accounting Officer and
Chief Financial Officer and Treasurer        Controller
216-626-1216        216-626-1216
michael.biehl@chartindustries.com        ken.webster@chartindustries.com


CHART INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars and shares in thousands, except per share amounts)

 

     Three Months Ended March 31,  
     2013      2012  

Sales

   $ 273,648       $ 216,106   

Cost of sales

     194,198         148,549   
  

 

 

    

 

 

 

Gross profit

     79,450         67,557   

Selling, general and administrative expenses

     47,204         40,626   

Amortization expense

     4,895         3,070   
  

 

 

    

 

 

 
     52,099         43,696   
  

 

 

    

 

 

 

Operating income (1)

     27,351         23,861   

Other expenses (income):

     

Interest expense and financing costs amortization, net

     4,317         4,283   

Foreign currency loss (gain)

     346         (352
  

 

 

    

 

 

 
     4,663         3,931   
  

 

 

    

 

 

 

Income before income taxes

     22,688         19,930   

Income tax expense

     6,580         5,778   
  

 

 

    

 

 

 

Net income

     16,108         14,152   

Noncontrolling interest, net of taxes

     573         69   
  

 

 

    

 

 

 

Net income attributable to Chart Industries, Inc.

   $ 15,535       $ 14,083   
  

 

 

    

 

 

 

Net income attributable to Chart Industries, Inc. per common share:

     

Basic

   $ 0.52       $ 0.48   
  

 

 

    

 

 

 

Diluted

   $ 0.51       $ 0.47   
  

 

 

    

 

 

 

Weighted average number of common shares outstanding:

     

Basic

     30,035         29,593   
  

 

 

    

 

 

 

Diluted

     30,426         30,061   
  

 

 

    

 

 

 

 

(1) 

Includes depreciation expense of $5,019 and $4,153 for the three months ended March 31, 2013 and 2012, respectively.


CHART INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

     Three Months Ended March 31,  
     2013     2012  

Net Cash Used In Operating Activities

   $ (23,638   $ (9,172

Investing Activities

    

Capital expenditures

     (12,078     (6,345
  

 

 

   

 

 

 

Net Cash Used In Investing Activities

     (12,078     (6,345
  

 

 

   

 

 

 

Financing Activities

    

Borrowings on revolving credit facilities

     48,978        —     

Repayments on revolving credit facilities

     (31,738     —     

Principal payments on long-term debt

     (938     (1,625

Proceeds from exercise of stock options

     3,913        1,725   

Tax benefit from exercise of stock options

     4,383        6,355   

Common stock repurchases

     (1,879     (4,473
  

 

 

   

 

 

 

Net Cash Provided By Financing Activities

     22,719        1,982   

Effect of exchange rate changes on cash

     (2,233     (806
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (15,230     (14,341

Cash and cash equivalents at beginning of period

     141,498        256,861   
  

 

 

   

 

 

 

Cash And Cash Equivalents At End of Period

   $ 126,268      $ 242,520   
  

 

 

   

 

 

 


CHART INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

     March 31,
2013
     December 31,
2012
 
     (Unaudited)         

ASSETS

     

Cash and cash equivalents

   $ 126,268       $ 141,498   

Other current assets

     457,559         414,926   

Property, plant and equipment, net

     176,115         169,776   

Goodwill

     398,287         398,941   

Identifiable intangible assets, net

     184,391         189,463   

Other assets, net

     14,721         13,237   
  

 

 

    

 

 

 

TOTAL ASSETS

   $ 1,357,341       $ 1,327,841   
  

 

 

    

 

 

 

LIABILITIES AND EQUITY

     

Current liabilities

   $ 280,252       $ 273,775   

Long-term debt

     253,474         252,021   

Other long-term liabilities

     99,754         102,262   

Equity

     723,861         699,783   
  

 

 

    

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 1,357,341       $ 1,327,841   
  

 

 

    

 

 

 


CHART INDUSTRIES, INC. AND SUBSIDIARIES

OPERATING SEGMENTS (UNAUDITED)

(Dollars in thousands)

 

     Three Months Ended March 31,  
     2013     2012  

Sales

    

Energy & Chemicals

   $ 80,861      $ 68,824   

Distribution & Storage

     128,733        105,092   

BioMedical

     64,054        42,190   
  

 

 

   

 

 

 

Total

   $ 273,648      $ 216,106   
  

 

 

   

 

 

 

Gross Profit

    

Energy & Chemicals

   $ 20,927      $ 21,689   

Distribution & Storage

     36,502        29,448   

BioMedical

     22,021        16,420   
  

 

 

   

 

 

 

Total

   $ 79,450      $ 67,557   
  

 

 

   

 

 

 

Gross Profit Margin

    

Energy & Chemicals

     25.9     31.5

Distribution & Storage

     28.4     28.0

BioMedical

     34.4     38.9

Total

     29.0     31.3

Operating Income

    

Energy & Chemicals

   $ 12,819      $ 13,192   

Distribution & Storage

     19,289        18,732   

BioMedical

     6,753        4,592   

Corporate

     (11,510     (12,655
  

 

 

   

 

 

 

Total

   $ 27,351      $ 23,861   
  

 

 

   

 

 

 


CHART INDUSTRIES, INC. AND SUBSIDIARIES

ORDERS AND BACKLOG (UNAUDITED)

(Dollars in thousands)

 

     Three Months Ended  
     March 31,
2013
     December 31,
2012
 

Orders

     

Energy & Chemicals

   $ 38,807       $ 62,173   

Distribution & Storage(1)

     132,774         150,874   

BioMedical

     72,002         64,951   
  

 

 

    

 

 

 

Total

   $ 243,583       $ 277,998   
  

 

 

    

 

 

 

Backlog

     

Energy & Chemicals

   $ 322,936       $ 365,470   

Distribution & Storage

     231,141         228,204   

BioMedical

     32,512         23,760   
  

 

 

    

 

 

 

Total

   $ 586,589       $ 617,434   
  

 

 

    

 

 

 

 

(1) 

The three months ended December 31, 2012 includes a $40 million order from PetroChina for LNG equipment.


CHART INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF DILUTED EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE

(UNAUDITED)

 

     Three Months Ended March 31,  
     2013      2012  

Earnings per diluted share

   $ 0.51       $ 0.47   

Acquisition earn-out adjustment

     —           0.01   

Severance/retention

     0.03         —     
  

 

 

    

 

 

 

Adjusted earnings per diluted share

   $ 0.54       $ 0.48