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| 8-K - 8-K - CHART INDUSTRIES INC | gtls-march2018investorpres.htm |
© 2018 Chart Industries, Inc. Confidential and Proprietary
Chart Industries, Inc.
Investor Presentation
Exhibit 99.1
© 2018 Chart Industries, Inc. Confidential and Proprietary 2
Forward-Looking Statements
Certain statements made in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning Chart Industries’ plans, objectives, future orders, revenues, margins, tax rates and tax planning,
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," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,”
“guidance,” "continue," or the negative of such terms or comparable terminology.
Forward-looking statements contained in this presentation or in other statements made by Chart Industries are made based on management's expectations and
beliefs concerning future events impacting Chart Industries and are subject to uncertainties and factors relating to Chart Industries’ operations and business
environment, all of which are difficult to predict and many of which are beyond Chart Industries’ control, that could cause Chart Industries’ actual results to
differ materially from those matters expressed or implied by forward-looking statements. Factors that could cause Chart Industries’ actual results to differ
materially from those described in the forward-looking statements include the implementation of and realization of benefits under the Tax Cuts and Jobs Act
and those other risks and uncertainties found in Item 1A (Risk Factors) in Chart Industries’ 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.
Chart Industries is a leading diversified global manufacturer of highly engineered equipment for the industrial gas, energy, and biomedical industries. The
majority of Chart Industries' products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end-use
applications, a large portion of which are energy-related. Chart Industries has domestic operations located across the United States and an international presence
in Asia, Australia, Europe and Latin America. For more information, visit: http://www.chartindustries.com.
© 2018 Chart Industries, Inc. Confidential and Proprietary 3
Company Overview
Healthcare
Chart is a leading diversified global manufacturer of highly-engineered equipment, packaged
solutions and value-add services for the energy, industrial gas and biomedical industries
Technology leader providing premium equipment to energy and industrial liquid gas
supply chain end markets
A leading supplier in all primary markets served
Global footprint for our operations on four continents with approximately 4,400
employees
Balanced expansion in the US and International markets
FY 2017 Sales by Segment
BioMed
22%
Energy &
Chemicals
23%
Distribution &
Storage
55%
FY 2017 Sales by Segment Pro Forma Hudson*
BioMed
20%
Energy, &
Chemicals
32%
Distribution &
Storage
48%
* Assumes Hudson Acquisition occurred as of 1 January 2017
© 2018 Chart Industries, Inc. Confidential and Proprietary 4
Supplier of Brazed Aluminum
Heat Exchangers (BAHX), Air
Cooled Heat Exchangers
(ACHX) and Cold Boxes
Provider of integrated
systems and aftermarket
services for gas processing,
LNG and petrochemical
applications
Technology leader
Complete portfolio of
cryogenic distribution and
storage equipment
Leading innovator in
cryogenic packaged gas and
MicroBulk systems
Over 20 years of experience
in LNG applications
Leading Supplier of Mission Critical Equipment
End-to-end provider of
respiratory therapy
equipment
Set the standard for storage
of biological materials at low
temperatures
Reliable, high quality
solutions for environmental
market applications
BioMed Distribution & Storage Energy & Chemicals
A B C
© 2018 Chart Industries, Inc. Confidential and Proprietary 5
23%
of Total Chart Sales
$211M
Backlog at 12/31/17
20%
Gross Margin
BioMed
Broad End-Market Exposure
Distribution & Storage Energy & Chemicals
Sales
b
y
Indust
ry
*
H
ig
h
li
g
h
ts
10%
35%
55%
5%
8%
7%
22%
58%
Healthcare
Life
Sciences
Environ-
mental
Manufacturing/
Fabrication
LNG
Food/
Beverage
Electronics
Healthcare
Natural Gas
Processing/
Petrochemical
10%
13%
68%
9%
Industrial
Gas
LNG
$226M $223M $540M
22%
of Total Chart Sales
$23M
Backlog at 12/31/17
36%
Gross Margin
55%
of Total Chart Sales
$228M
Backlog at 12/31/17
27%
Gross Margin
Sales
b
y
G
e
o
g
ra
p
h
y
*
75%
41%
49% 53%
4%
30%
26% 22%
9% 17%
19% 16%
4% 2%
8% 12% 6% 7%
E&C BioMed D&S Total
$226M $223M $540M $989M
United States
Asia
Europe
Middle East
Rest of World
A B C
FY 2017
FY 2017 Highlights
FY 2017
* FY 2017 as per SEC filings
HVAC, power
and refining
© 2018 Chart Industries, Inc. Confidential and Proprietary 6
Adds highly-complementary Fans business
Strengthens aftermarket presence
Consistent with core strategy to enhance Air
Cooled Heat Exchanger (ACHX) business
Expected to be accretive to growth, margins and
EPS
Significant cost synergies
Efficient use of Chart’s strong balance sheet
position
Product Split*
OEM
63%
End Market Split* Aftermarket Split*
Aftermarket
37% Fans
38%
ACHEs
62%
Industrial /
Other /
HVAC
23%
Chemical
6%
LNG
22%
Power
10%
Oil & Gas
19%
Refining
20%
Key
Products
Chart Product Offerings
End Market Mix
Axial Flow Fans ACHEs Brazed Aluminum
Heat Exchangers
Integrated
Process
Systems
Natural Gas Industrial Gas LNG
Power HVAC Refining
Oil & Gas Petrochemical
Expands Industrial Gas Offerings
Maximizes LNG Opportunity
Hudson Transaction Broadens Offering
Denotes Chart
offering pre-
acquisition
* Hudson stand-alone
© 2018 Chart Industries, Inc. Confidential and Proprietary 7
Fourth Quarter 2017 Financial Results
$214
$306
Q4 2016 Q4 2017
Sales & Revenue
($USD Million)
$306
Earnings Per Share
$0.85
Adjusted
Earnings per Share1
$0.46
($0.11)
$0.85
Q4 2016 Q4 2017
$0.00
$0.46
Q4 2016 Q4 2017
Q4 Highlights
• Sales increase of 43% over
the fourth quarter of 2016,
19% excluding Hudson
• Reported earnings per
diluted share increased
$0.96 over the fourth quarter
of 2016
• Adjustments Q4 2017
• Restructuring and
acquisition related costs
• China litigation award
• Refinancing debt
extinguishment costs
• Tax reform benefits
• Adjustments Q4 2016
• Restructuring and
acquisition related costs
1. Adjusted earnings per share is a non-GAAP measure, see reconciliation to the comparable GAAP measure on page 9.
2017 and 2016 exclude restructuring and acquisition related costs. 2017 excludes China litigation award, debt extinguishment and impact of US tax reform.
© 2018 Chart Industries, Inc. Confidential and Proprietary 8
Full Year 2017 Financial Results
$859
$989
FY 2016 FY 2017
Sales & Revenue
($USD Million)
$989
Earnings Per Share
$0.89
Adjusted
Earnings per Share1
$0.96
$0.91 $0.89
FY 2016 FY 2017
$0.65
1, 3
$0.96
$0.52
2
FY 2016 FY 2017
Full Year Highlights
• Sales increase of 15% over
2016, with 5% organic
growth
• Adjustments Full Year 2017
• Restructuring and
acquisition related costs
• China litigation award
• Refinancing debt
extinguishment costs
• Tax reform benefits
• Adjustments Full Year 2016
• Restructuring and
acquisition related costs
• Asset impairments
• Flood insurance
settlement
1. Adjusted earnings per share is a non-GAAP measure, see reconciliation to the comparable GAAP measure on page 9
2. 2017 excludes restructuring and acquisition costs, China litigation award, debt extinguishment and impact from U.S. tax reform. 2016 excludes asset impairments, flood insurance
settlement, and restructuring and acquisition costs.
3. 2016 includes Q3 AirSep insurance settlement of $15.9M, or $0.52 of EPS.
4. 2016 includes ~$38.7 million of benefit from E&C short lead-time replacement sales and contract expiration fees in 2016 which equates to ~$0.84 per share in 2016, as compared to ~$0.12
per share of short-lead time replacement equipment sales in 2017.
$1.17
© 2018 Chart Industries, Inc. Confidential and Proprietary 9
Adjusted EPS
$ millions Q4 2016 Q4 2017 Change V.
PY
(Q4)
2016 FY 2017 FY Change V.
PY
(FY)
Net Income (Loss) ($3.29) $26.66 $29.95 $28.23 $28.04 ($0.19)
EPS (1) ($0.11) $0.85 $0.96 $0.91 $0.89 ($0.02)
Restructuring and acquisition-related Costs 0.11 0.11 0.00 0.24 0.57 0.33
Debt Extinguishment 0.10 0.10 0.10 0.10
China Litigation Award (2) 0.11 0.11 0.11 0.11
Tax Reform (3) (0.71) (0.71) (0.71) (0.71)
Asset Impairments 0.04 (0.04)
Flood Insurance Settlement (0.02) 0.02
Adjusted EPS (4, 5) $0.00 $0.46 $0.46 $1.17 $0.96 ($0.21)
AirSep Insurance Settlement (0.52) 0.52
Normalized Adjusted EPS on a Comparable
Basis (5, 6)
($0.00) $0.46 $0.46 $0.65 $0.96 $0.31
(1) 2016 FY includes $0.84 of EPS from short lead-time replacement equipment sales and contract expiration fees in the Energy & Chemicals (“E&C”)
segment. 2017 includes $0.12 of EPS from short lead-time replacement equipment sales in E&C.
(2) Chinese court ruling over disputed commissions to a former external sales representative.
(3) One-time adjustments related to impact of Tax Reform.
(4) Adjusted EPS (a non-gaap measure) is as reported on a historical basis.
(5) Tax effected adjustments are at normalized statutory quarterly rates.
(6) “Normalized Adjusted EPS on a Comparable Basis” is not recognized under generally accepted accounting principles (“GAAP”) and is referred to as a
“non-GAAP financial measure” in Regulation G under the Exchange Act. The Company believes this figure is of interest to investors and facilitates useful
period-to-period comparisons of the Company’s operating results, eliminating the impact of the non-recurring AirSep insurance settlement.
A
B
C
D
E
F
© 2018 Chart Industries, Inc. Confidential and Proprietary 10
2018 Guidance
FY 2018 Guidance
Sales
$1.15B - $1.20B
Up 16% – 21%
5-7% organic growth
Adjusted EPS
$1.65 - $1.90
Up 72% – 98%
Inclusive of ~$0.15 of impact from U.S. tax reform
Assumes 27% - 29% full year tax rate
Capital Expenditures
$35M - $45M
Flat to 2017
Inclusive of ~$11M for finalization of La Crosse, WI capacity expansion
© 2017 Chart Industries, Inc. Confidential and Proprietary 11
Profitable Growth Focus
Continue facility consolidation efforts to create further operating
efficiencies and leverage support functions across the business
Focus on operational excellence and strategic goals for long-
term growth when market returns
Invest in additional capacity at our brazed aluminum heat
exchanger facility and LNG vehicle tank line expansion in
Georgia
Pursue acquisition targets in our core technologies and
adjacencies
© 2018 Chart Industries, Inc. Confidential and Proprietary
www.ChartIndustries.com
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