-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Nogx3+JjgvtA4AwMVfHEnVgd34FxAibub+br9LOhZKLzq8cStDJBlmdAmHyQE+xL eePEvxcIdTI3kZi7jvcprQ== 0001140361-08-017856.txt : 20080730 0001140361-08-017856.hdr.sgml : 20080730 20080730073309 ACCESSION NUMBER: 0001140361-08-017856 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080730 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080730 DATE AS OF CHANGE: 20080730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMERON INTERNATIONAL CORP CENTRAL INDEX KEY: 0000941548 STANDARD INDUSTRIAL CLASSIFICATION: OIL & GAS FILED MACHINERY & EQUIPMENT [3533] IRS NUMBER: 760451843 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13884 FILM NUMBER: 08977301 BUSINESS ADDRESS: STREET 1: 1333 WEST LOOP SOUTH STREET 2: STE 1700 CITY: HOUSTON STATE: TX ZIP: 77027 BUSINESS PHONE: 7135133322 MAIL ADDRESS: STREET 1: 1333 WEST LOOP SOUTH STREET 2: STE 1700 CITY: HOUSTON STATE: TX ZIP: 77027 FORMER COMPANY: FORMER CONFORMED NAME: COOPER CAMERON CORP DATE OF NAME CHANGE: 19950315 8-K 1 form8-k.htm 2008 - 2ND QTR EARNINGS form8-k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported):
July 30, 2008


Cameron International Corporation
______________________________________________
(Exact Name of Registrant as Specified in its Charter)


Delaware
___________________
(State or other
jurisdiction of
incorporation)
 
1-13884
_________________
(Commission
File Number)
76-0451843
___________________
 (I.R.S. Employer
Identification No.)

1333 West Loop South, Suite 1700,
Houston, Texas
________________________________________
77027
 
_______________
(Address of Principal Executive Offices)
(Zip Code)

 
Registrant’s telephone number, including area code:
(713) 513-3300

Not Applicable
_______________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]           Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))


 
 
 



Item 2.02
Results of Operations and Financial Condition

On July 30, 2008, Cameron issued a press release announcing its results for the second quarter ended June 30, 2008.  The press release is attached hereto as Exhibit 99.1 and is incorporated by reference into this item.

 

Item 9.01
Financial Statements and Exhibits.
 
(d)  Exhibits.
 
    The following is being furnished as an exhibit to this report:

Exhibit
Number
  
 
Exhibit Title or Description
Exhibit 99.1
  
Press Release of Cameron International Corporation, dated July 30, 2008 – Cameron Second Quarter Earnings Per Share $0.65 vs $0.54 Last Year

 
Exhibit 99.1 to this report contains “non-GAAP financial measures” as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended. The non-GAAP financial measures reflect earnings before interest, taxes, depreciation and amortization expense (“EBITDA”).  A reconciliation of EBITDA to the most directly comparable financial measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) is included as an attachment to the press release.  The Company believes the presentation of EBITDA is useful to the Company’s investors because EBITDA is an appropriate measure of evaluating the Company’s operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company’s securities and making strategic acquisitions.  In addition, EBITDA is a widely used benchmark in the investment community.
 
The presentation of this additional information is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with GAAP.

 
 
 


 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


 
CAMERON INTERNATIONAL CORPORATION
 
By:           /s/ Charles M. Sledge                 
 
  Charles M. Sledge
 
  Vice President and Chief Financial Officer




Date:                      July 30, 2008






Cameron International Corporation
Current report on Form 8-K
Dated July 30, 2008


EXHIBIT INDEX

Exhibit
Number
  
 
Exhibit Title or Description
Exhibit 99.1
  
Press Release of Cameron International Corporation, dated July 30, 2008 – Cameron Second Quarter Earnings Per Share $0.65 vs $0.54 Last Year
 
 
 
 
 EX-99.1 2 exhibit99-1.htm 2008 - 2ND QTR EARNINGS PRESS RELEASE exhibit99-1.htm
 
 
2008-13

Contact:  R. Scott Amann
Vice President, Investor Relations
(713) 513-3344

CAMERON SECOND QUARTER EARNINGS PER SHARE $0.65 VS $0.54 LAST YEAR

·  
Earnings per share up 27 percent from prior year, excluding 2007 gain on tax matters
·  
Orders again exceed revenues, backlog reaches $5.2 billion
·  
2008 full-year earnings expectations raised to $2.64 to $2.68 per share

HOUSTON (July 30, 2008) -- Cameron (NYSE: CAM) reported net income of $152.0 million, or $0.65 per diluted share, for the quarter ended June 30, 2008, compared with net income of $123.2 million, or $0.54 per diluted share, for the second quarter of 2007.  The 2007 results included a gain of $0.03 per diluted share related to the favorable resolution of certain tax matters.
Total revenues were $1,480.6 million for the quarter, up 30 percent from 2007’s $1,139.0 million, and income before income taxes was $223.5 million, up 26 percent from the $176.8 million of a year ago.  Cameron President and Chief Executive Officer Jack B. Moore said that the results reflect an increase of nearly 40 percent in revenues and income before income taxes for the Drilling & Production Systems (DPS) group, driven primarily by gains in the subsea and drilling product lines.  “Project delivery performance in DPS exceeded our expectations,” Moore said, “leading to a stronger level of earnings than we had originally forecast for the quarter.”
Record orders posted in valves, compression businesses; backlog at another new record
Total orders for the second quarter of 2008 were $1.80 billion, up 37 percent from year-ago levels.  Moore noted that both the Valves & Measurement (V&M) group and the Compression Systems division posted the highest quarterly orders in their history, and that the DPS group orders exceeded $1 billion for the third consecutive quarter.  “The V&M orders reflected another strong quarter for the engineered valves business and continued strength in the other valves product lines,” Moore said.  “In addition, the Compression business saw record orders, driven by higher levels of international bookings in the centrifugal product line.  Meanwhile, the sequential decline in subsea bookings for DPS was due to the lack of any large project orders, and was partially offset by a strong level of orders for drilling equipment.”  He noted that year-to-date orders totaled approximately $3.76 billion, up 47 percent from the $2.56 billion of the first half of 2007, and that at June 30, 2008, total backlog was a record $5.22 billion, up from the prior quarter’s record of $4.90 billion and the June 30, 2007 level of $3.98 billion.
Cash flow remains healthy, further investment in facilities under way
Moore said that the Company’s year-to-date cash flow from operations was approximately $249 million, compared with approximately $54 million in the first half of 2007.  “Higher net income and a moderation in inventory growth contributed to the improvement in cash flow,” he said.  “For the full year, we expect our free cash flow, or cash available after capital expenditures, to be in excess of $350 million.”
Moore said that Cameron spent approximately $96 million in capital expenditures in the first half, with most of that directed toward continued plant capacity expansions and machine tool upgrades.  He noted that the Company anticipates capital expenditures to total approximately $270 million for the full year 2008, including the construction of the new surface facility in Romania.  “We have also elected to make an additional investment of approximately $70 million to add capacity in our subsea facility in Malaysia,” Moore said.  “This will increase our effective subsea tree manufacturing capacity to more than 200 trees company-wide, reflecting the continuing active level of orders and inquiries from subsea customers.”   Moore said most of the expenditures related to the Malaysian capacity increase will be made in 2009, with the expansion to be complete by early 2010.
Moore also said that the Company completed a $750 million Senior Notes offering in June, adding to Cameron’s balance sheet flexibility and extending maturities on the Company’s outstanding debt.
Balance sheet solid, share repurchase continues
At June 30, 2008, Cameron’s total debt, net of cash and short-term investments, was $49.3 million, down from $179.1 million at March 31, 2008, and the Company’s net debt-to-capitalization ratio was approximately 2.1 percent.
Moore said that Cameron repurchased 755,600 shares of its common stock during the quarter at an average price of $50.12 per share, and has now spent more than $154 million on share buybacks in the first half of 2008.  He said that the Company continues to consider acquisition opportunities, and also expects to pursue additional repurchases of common stock.
Full-year earnings expectations increased
Moore said that Cameron’s third quarter earnings are expected to be in the range of approximately $0.69 to $0.71 per share, and that full-year earnings are expected to be approximately $2.64 to $2.68 per share, compared with the Company’s previous guidance of $2.50 to $2.60 per share for the year.  
Cameron (NYSE: CAM) is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries.
 
###
Website: www.c-a-m.com

In addition to the historical data contained herein, this document includes forward-looking statements regarding future earnings of the Company (including third quarter and full year 2008 earnings per share estimates), as well as expectations regarding future cash flows and use of funds for capital spending, acquisitions and stock repurchases, made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The Company’s actual results may differ materially from those described in forward-looking statements.  Such statements are based on current expectations of the Company’s performance and are subject to a variety of factors, some of which are not under the control of the Company, which can affect the Company’s results of operations, liquidity or financial condition.  Such factors may include overall demand for, and pricing of, the Company’s products; the size and timing of orders; the Company’s ability to successfully execute the large subsea and drilling systems projects it has been awarded; the Company’s ability to convert backlog into revenues on a timely and profitable basis; the impact of acquisitions the Company has made or may make; changes in the price of (and demand for) oil and gas in both domestic and international markets; raw material costs and availability; political and social issues affecting the countries in which the Company does business; fluctuations in currency markets worldwide; and variations in global economic activity.  In particular, current and projected oil and gas prices historically have generally directly affected customers’ spending levels and their related purchases of the Company’s products and services.  Additionally, changes in oil and gas price expectations may impact the Company’s financial results due to changes it may make in its cost structure, staffing or spending levels based on these expectations.
Because the information herein is based solely on data currently available, it is subject to change as a result of changes in conditions over which the Company has no control or influence, and should not therefore be viewed as assurance regarding the Company’s future performance.  Additionally, the Company is not obligated to make public indication of such changes unless required under applicable disclosure rules and regulations.
 
 
 


Cameron
Unaudited Consolidated Condensed Results of Operations
($ and shares in millions except per share data)


   
Three Months
Ended June 30,
    
Six Months
Ended June 30,
  
   
2008
    
2007
    
2008
    
2007
  
Revenues:
                        
Drilling & Production Systems
   $ 951.8     $ 682.9     $ 1,816.6     $ 1,296.6  
Valves & Measurement                                                           
     366.9       315.5       711.4       611.4  
Compression Systems                                                           
     161.9       140.6       291.9       228.1  
Total revenues                                                      
     1,480.6       1,139.0       2,819.9       2,136.1  
                                 
Costs and Expenses:
                                
Cost of sales (exclusive of depreciation and amortization shown separately below)
     1,063.2       792.2       2,028.6       1,486.1  
Selling and administrative expenses
     161.8       143.2       319.2       269.3  
Depreciation and amortization
     31.3       27.1       63.2       53.0  
Interest income
     (6.4 )     (6.3 )     (12.5 )     (17.3 )
Interest expense
     7.2       6.0       12.2       12.8  
Total costs and expenses                                                      
     1,257.1       962.2       2,410.7       1,803.9  
                                 
Income before income taxes                                                              
     223.5       176.8       409.2       332.2  
Income tax provision                                                              
     (71.5 )     (53.6 )     (130.9 )     (108.0 )
Net income                                                              
   $ 152.0     $ 123.2     $ 278.3     $ 224.2  
                                 
Earnings per common share:(1)
                                
Basic                                                           
   $ 0.70     $ 0.56     $ 1.28     $ 1.02  
Diluted                                                           
   $ 0.65     $ 0.54     $ 1.20     $ 0.98  
                                 
Shares used in computing earnings per common share:(1)
                                
Basic                                                           
     216.6       218.7       216.7       220.4  
Diluted                                                           
     233.1       228.8       231.8       229.5  
                                 
EBITDA:
                                
Drilling & Production Systems
   $ 169.4     $ 123.1     $ 316.1     $ 239.7  
Valves & Measurement                                                              
     78.6       72.6       152.6       141.7  
Compression Systems                                                              
     29.4       26.3       51.7       36.9  
Corporate and other                                                              
     (21.8 )     (18.4 )     (48.3 )     (37.6 )
Total                                                           
   $ 255.6     $ 203.6     $ 472.1     $ 380.7  


1
Prior year earnings per common share and shares used in computing earnings per common share have been revised to reflect the 2-for-1 stock split effective December 28, 2007.

 
 
 

 
Cameron
 
Consolidated Condensed Balance Sheets
 
($ millions)

   
June 30,
2008
    
December 31, 2007
  
   
(unaudited)
        
Assets:
            
Cash and cash equivalents                                                                                     
   $ 1,534.1     $ 739.9  
Receivables, net                                                                                     
     950.9       797.5  
Inventories, net                                                                                     
     1,467.2       1,413.4  
Other                                                                                     
     141.5       121.1  
Total current assets                                                                             
     4,093.7       3,071.9  
                 
Plant and equipment, net                                                                                     
     893.7       821.1  
Goodwill                                                                                     
     685.6       647.8  
Other assets                                                                                     
     205.9       190.0  
Total Assets                                                                           
   $ 5,878.9     $ 4,730.8  
                 
Liabilities and Stockholders’ Equity:
                
Current portion of long-term debt                                                                                     
   $ 327.7     $ 8.8  
Accounts payable and accrued liabilities                                                                                     
     1,713.0       1,677.1  
Accrued income taxes                                                                                     
     44.1       7.0  
Total current liabilities                                                                             
     2,084.8       1,692.9  
                 
Long-term debt                                                                                     
     1,255.7       745.1  
Postretirement benefits other than pensions
     15.9       15.8  
Deferred income taxes                                                                                     
     80.3       68.7  
Other long-term liabilities                                                                                     
     110.0       113.4  
Total liabilities                                                                             
     3,546.7       2,635.9  
                 
Stockholders’ Equity:
                
Common stock, par value $.01 per share, 400,000,000 shares authorized, 232,341,726 shares issued at June 30, 2008 and December 31, 2007
     2.3       2.3  
Capital in excess of par value                                                                                   
     1,167.6       1,160.8  
Retained earnings                                                                                   
     1,535.1       1,256.8  
Accumulated other elements of comprehensive income
     155.5       101.0  
Less:  Treasury stock, 15,880,501 shares at June 30, 2008 (14,332,927 shares at December 31, 2007)
     (528.3 )     (426.0 )
Total stockholders’ equity                                                                             
     2,332.2       2,094.9  
                 
Total Liabilities and Stockholders’ Equity
   $ 5,878.9     $ 4,730.8  


 
 
 

 
Cameron
 
Unaudited Consolidated Condensed Statements Of Cash Flows
 
($ millions)
 
   
Three Months
Ended June 30,
    
Six Months
Ended June 30,
  
   
2008
    
2007
    
2008
    
2007
  
Cash flows from operating activities:
                        
Net income                                                                     
   $ 152.0     $ 123.2     $ 278.3     $ 224.2  
Adjustments to reconcile net income to net cash provided by operating activities:
                                
Depreciation                                                                
     24.2       20.0       47.5       39.4  
Amortization                                                                
     7.1       7.1       15.7       13.6  
Non-cash stock compensation expense
     6.0       7.7       16.0       14.2  
Tax benefit of employee stock compensation plan transactions and deferred income taxes
     3.3       (7.9 )     2.5       11.8  
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
                                
Receivables                                                                
     (81.8 )     (61.8 )     (143.0 )     (51.0 )
Inventories                                                                
     24.4       (124.4 )     (18.6 )     (271.5 )
Accounts payable and accrued liabilities
     60.1       81.2       29.4       113.9  
Other assets and liabilities, net                                                                
     9.7       (27.6 )     21.6       (40.3 )
Net cash provided by operating activities
     205.0       17.5       249.4       54.3  
                                 
Cash flows from investing activities:
                                
Capital expenditures                                                                     
     (50.9 )     (55.0 )     (96.0 )     (108.0 )
Acquisitions, net of cash acquired                                                                     
     —       (31.7 )     (57.5 )     (75.7 )
Proceeds from sale of plant and equipment
     0.6       2.0       0.9       3.6  
Net cash used for investing activities
     (50.3 )     (84.7 )     (152.6 )     (180.1 )
                                 
Cash flows from financing activities:
                                
Short-term loan (repayments) borrowings, net
     (90.2 )     (207.2 )     80.3       (199.1 )
Issuance of long-term senior notes                                                                     
     747.9       —       747.9       —  
Debt issuance costs                                                                     
     (5.5 )     —       (5.5 )     —  
Purchase of treasury stock                                                                     
     (34.1 )     (126.5 )     (154.5 )     (277.4 )
Proceeds from stock option exercises                                                                     
     9.2       13.1       10.1       22.3  
Excess tax benefits from employee stock compensation plan transactions
     7.6       6.6       14.4       11.6  
Principal payments on capital leases                                                                     
     (1.6 )     (1.6 )     (3.3 )     (2.6 )
Net cash provided by (used for) financing activities
     633.3       (315.6 )     689.4       (445.2 )
                                 
Effect of translation on cash                                                                        
     1.7       1.3       8.0       4.9  
                                 
Increase (decrease) in cash and cash equivalents
     789.7       (381.5 )     794.2       (566.1 )
                                 
Cash and cash equivalents, beginning of period
     744.4       848.9       739.9       1,033.5  
                                 
Cash and cash equivalents, end of period
   $ 1,534.1     $ 467.4     $ 1,534.1     $ 467.4  

 
 
 

 
Cameron
 
Orders and Backlog
 
($ millions)
 

 
Orders

   
Three Months
Ended June 30,
    
Six Months
Ended June 30,
  
   
2008
    
2007
    
2008
    
2007
  
                         
Drilling & Production Systems
   $ 1,165.9     $ 828.6     $ 2,565.6     $ 1,558.1  
Valves & Measurement                                                   
     418.6       345.6       785.1       700.3  
Compression Systems                                                   
     217.3       139.9       405.6       307.0  
Total                                                
   $ 1,801.8     $ 1,314.1     $ 3,756.3     $ 2,565.4  


 

 
Backlog

   
June 30,
2008
    
December 31, 2007
    
June 30,
2007
  
                   
Drilling & Production Systems
   $ 3,960.9     $ 3,203.0     $ 2,938.9  
Valves & Measurement                                                              
     768.5       685.2       718.3  
Compression Systems                                                              
     488.1       380.1       323.2  
Total                                                           
   $ 5,217.5     $ 4,268.3     $ 3,980.4  



 
 
 

 
Cameron
 
Reconciliation of GAAP to Non-GAAP Financial Information
 
($ millions)


 
   
Three Months Ended June 30, 2008
  
   
Drilling & Production
Systems
    
Valves & Measurement
    
Compression
Systems
    
Corporate
    
Total
  
                               
Income (loss) before income taxes
   $ 153.2     $ 70.8     $ 25.7     $ (26.2 )   $ 223.5  
Depreciation & amortization
     16.2       7.8       3.7       3.6       31.3  
Interest income
     —       —       —       (6.4 )     (6.4 )
Interest expense
     —       —       —       7.2       7.2  
                                         
EBITDA
   $ 169.4     $ 78.6     $ 29.4     $ (21.8 )   $ 255.6  




   
Three Months Ended June 30, 2007
  
   
Drilling & Production
Systems
    
Valves & Measurement
    
Compression
Systems
    
Corporate
    
Total
  
                               
Income (loss) before income taxes
   $ 109.4     $ 65.1     $ 23.0     $ (20.7 )   $ 176.8  
Depreciation & amortization
     13.7       7.5       3.3       2.6       27.1  
Interest income
     —       —       —       (6.3 )     (6.3 )
Interest expense
     —       —       —       6.0       6.0  
                                         
EBITDA
   $ 123.1     $ 72.6     $ 26.3     $ (18.4 )   $ 203.6  







 
 
 

 
Cameron
 
Reconciliation of GAAP to Non-GAAP Financial Information
 
($ millions)


 

   
Six Months Ended June 30, 2008
  
   
Drilling & Production
Systems
    
Valves & Measurement
    
Compression
Systems
    
Corporate
    
Total
  
                               
Income (loss) before income taxes
   $ 282.2     $ 137.0     $ 44.4     $ (54.4 )   $ 409.2  
Depreciation & amortization
     33.9       15.6       7.3       6.4       63.2  
Interest income
     —       —       —       (12.5 )     (12.5 )
Interest expense
     —       —       —       12.2       12.2  
                                         
EBITDA
   $ 316.1     $ 152.6     $ 51.7     $ (48.3 )   $ 472.1  




   
Six Months Ended June 30, 2007
  
   
Drilling & Production
Systems
    
Valves & Measurement
    
Compression
Systems
    
Corporate
    
Total
  
                               
Income (loss) before income taxes
   $ 212.7     $ 126.9     $ 30.3     $ (37.7 )   $ 332.2  
Depreciation & amortization
     27.0       14.8       6.6       4.6       53.0  
Interest income
     —       —       —       (17.3 )     (17.3 )
Interest expense
     —       —       —       12.8       12.8  
                                         
EBITDA
   $ 239.7     $ 141.7     $ 36.9     $ (37.6 )   $ 380.7  








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