Chart Industries Inc. (GTLS, Financial) filed Quarterly Report for the period ended 2010-03-31.
Chart Industries Inc. has a market cap of $707.4 million; its shares were traded at around $24.83 with a P/E ratio of 11.9 and P/S ratio of 1.1. GTLS is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Sales for the three months ended March 31, 2010 were $116.7 million compared to $180.2 million for the three months ended March 31, 2009, reflecting a decrease of $63.5 million, or 35.2%, primarily resulting from the global economic downturn. E&C segment sales were $26.1 million for the three months ended March 31, 2010 compared with sales of $90.4 million for three months ended March 31, 2009, which reflected a decrease of $64.3 million or 71.1%. This decrease in E&C sales for the three months ended March 31, 2010 was primarily due to lower volume in both brazed aluminum heat exchangers and process systems due to the completion of several large projects during 2009. In addition, reduced orders as a result of the global economic downturn also contributed to the decline, as orders and backlog take a longer time to be converted to revenue in this business due to the customized nature and size of some of the projects. D&S segment sales decreased $11.7 million, or 16.9%, to $57.7 million for the three months ended March 31, 2010 from $69.4 million for the three months ended March 31, 2009. Sales for bulk storage systems and package gas systems decreased $9.4 million and $2.3 million, respectively. These decreases were due to lower volume and prices. BioMedical segment sales for the three months ended March 31, 2010 were $32.9 million compared to $20.4 million for the same period in 2009, which reflected an increase of $12.5 million. The increase was primarily driven by the Covidien Acquisition in November 2009, which added $12.9 million of medical respiratory sales. Biological storage system sales increased $0.5 million during the three
Gross profit for the three months ended March 31, 2010 was $34.3 million, or 29.4% of sales, versus $62.7 million, or 34.8% of sales, for the three months ended March 31, 2009 and reflected a decrease of $28.4 million. E&C segment gross profit decreased $28.9 million, or 16.3 percentage points, due to significantly lower volume due to the absence of large project work as a result of the global economic downturn in addition to lower prices. Gross profit for the D&S segment decreased $2.7 million, but the margin improved 1.2 percentage points, for the three months ended March 31, 2010 compared to the same period in 2009, primarily due to improved mix and lower material costs. BioMedical gross profit increased $3.2 million, but the margin decreased by 5.3 percentage points, for the three months ended March 31, 2010 compared to the same period in 2009. The increase in gross profit is primarily due to higher sales volume and favorable product mix in medical respiratory product sales as a result of the Covidien Acquisition. The margin decline is attributable to a non-cash charge of $1.5 million related to the write up of acquired inventory to fair value in the Covidien Acquisition that was sold during the three months ended March 31, 2010.
SG&A expenses for the three months ended March 31, 2010 were $24.0 million, or 20.6% of sales, compared to $25.9 million, or 14.4% of sales, for the three months ended March 31, 2009. SG&A expenses for the E&C segment were $5.1 million for the three months ended March 31, 2010 compared to $8.7 million for the three months ended March 31, 2009, a decrease of $3.6 million. The decrease was primarily due to lower variable compensation and sales commission costs related to reduced sales volume and operating performance. D&S segment SG&A expenses for the three months ended March 31, 2010 were $7.1 million compared to $7.7 million for the three months ended March 31, 2009, a decrease of $0.6 million. This decrease was primarily attributable to lower compensation costs due to the reduction in workforce in 2009. SG&A expenses for the BioMedical segment were $5.1 million for the three months ended March 31, 2010 compared to $3.2 million for the three months ended March 31, 2009, an increase of $1.9 million, which was primarily due to increased compensation and integration costs, associated with the Covidien Acquisition. Corporate SG&A expenses for the three months ended March 31, 2010 were $6.7 million compared to $6.3 million for the three months ended March 31, 2009. This increase of $0.4 million was primarily attributable to employee related costs.
Cash used in investing activities for the three months ended March 31, 2010 was $6.3 million compared to $0.3 million for the three months ended March 31, 2009. Capital expenditures for the three months ended March 31, 2010 were $3.9 million compared with $2.3 million for the three months ended March 31, 2009. During the three months ended March 31, 2010, a deferred purchase payment of $2.3 million was made to the former owners of Golden Phoenix Liquid Nitrogen Container Co., Ltd. in accordance with the purchase agreement. During the three months ended March, 31, 2009, certain short-term investments matured and the proceeds totaled $2.0 million.
BioMedical orders for the three months ended March 31, 2010 were $36.1 million compared to $30.1 million for the three months ended December 31, 2009. BioMedical backlog at March 31, 2010 totaled $12.3 million compared to $9.5 million at December 31, 2009. The Covidien Acquisition contributed to the increase in orders of $5.9 million.
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Chart Industries Inc. has a market cap of $707.4 million; its shares were traded at around $24.83 with a P/E ratio of 11.9 and P/S ratio of 1.1. GTLS is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
For the three months ended March 31, 2010, orders were $139.4 million and backlog has increased to $204.6 million compared to $185.1 million at December 31, 2009. We experienced decreases in our sales, gross profit and operating income for the three months ended March 31, 2010 compared to the same period in 2009, which was largely due to the reduction in project backlog at E&C with the completion of several large LNG projects during 2009 and the reduction in orders as a result of the global economic downturn. This was partially offset by benefits from the acquisition of the liquid oxygen therapy business of Covidien (Covidien Acquisition) in November 2009. Sales for the three months ended March 31, 2010 were $116.7 million compared to sales of $180.2 million for the three months ended March 31, 2009, reflecting a decrease of $63.5 million, or 35.2%. Our gross profit for the three months ended March 31, 2010 was $34.3 million, or 29.4% of sales, as compared to $62.7 million, or 34.8% of sales, for the same period in 2009. In addition, our operating income for the three months ended March 31, 2010 was $7.6 million compared to $34.1 million for the same period in 2009.Sales for the three months ended March 31, 2010 were $116.7 million compared to $180.2 million for the three months ended March 31, 2009, reflecting a decrease of $63.5 million, or 35.2%, primarily resulting from the global economic downturn. E&C segment sales were $26.1 million for the three months ended March 31, 2010 compared with sales of $90.4 million for three months ended March 31, 2009, which reflected a decrease of $64.3 million or 71.1%. This decrease in E&C sales for the three months ended March 31, 2010 was primarily due to lower volume in both brazed aluminum heat exchangers and process systems due to the completion of several large projects during 2009. In addition, reduced orders as a result of the global economic downturn also contributed to the decline, as orders and backlog take a longer time to be converted to revenue in this business due to the customized nature and size of some of the projects. D&S segment sales decreased $11.7 million, or 16.9%, to $57.7 million for the three months ended March 31, 2010 from $69.4 million for the three months ended March 31, 2009. Sales for bulk storage systems and package gas systems decreased $9.4 million and $2.3 million, respectively. These decreases were due to lower volume and prices. BioMedical segment sales for the three months ended March 31, 2010 were $32.9 million compared to $20.4 million for the same period in 2009, which reflected an increase of $12.5 million. The increase was primarily driven by the Covidien Acquisition in November 2009, which added $12.9 million of medical respiratory sales. Biological storage system sales increased $0.5 million during the three
Gross profit for the three months ended March 31, 2010 was $34.3 million, or 29.4% of sales, versus $62.7 million, or 34.8% of sales, for the three months ended March 31, 2009 and reflected a decrease of $28.4 million. E&C segment gross profit decreased $28.9 million, or 16.3 percentage points, due to significantly lower volume due to the absence of large project work as a result of the global economic downturn in addition to lower prices. Gross profit for the D&S segment decreased $2.7 million, but the margin improved 1.2 percentage points, for the three months ended March 31, 2010 compared to the same period in 2009, primarily due to improved mix and lower material costs. BioMedical gross profit increased $3.2 million, but the margin decreased by 5.3 percentage points, for the three months ended March 31, 2010 compared to the same period in 2009. The increase in gross profit is primarily due to higher sales volume and favorable product mix in medical respiratory product sales as a result of the Covidien Acquisition. The margin decline is attributable to a non-cash charge of $1.5 million related to the write up of acquired inventory to fair value in the Covidien Acquisition that was sold during the three months ended March 31, 2010.
SG&A expenses for the three months ended March 31, 2010 were $24.0 million, or 20.6% of sales, compared to $25.9 million, or 14.4% of sales, for the three months ended March 31, 2009. SG&A expenses for the E&C segment were $5.1 million for the three months ended March 31, 2010 compared to $8.7 million for the three months ended March 31, 2009, a decrease of $3.6 million. The decrease was primarily due to lower variable compensation and sales commission costs related to reduced sales volume and operating performance. D&S segment SG&A expenses for the three months ended March 31, 2010 were $7.1 million compared to $7.7 million for the three months ended March 31, 2009, a decrease of $0.6 million. This decrease was primarily attributable to lower compensation costs due to the reduction in workforce in 2009. SG&A expenses for the BioMedical segment were $5.1 million for the three months ended March 31, 2010 compared to $3.2 million for the three months ended March 31, 2009, an increase of $1.9 million, which was primarily due to increased compensation and integration costs, associated with the Covidien Acquisition. Corporate SG&A expenses for the three months ended March 31, 2010 were $6.7 million compared to $6.3 million for the three months ended March 31, 2009. This increase of $0.4 million was primarily attributable to employee related costs.
Cash used in investing activities for the three months ended March 31, 2010 was $6.3 million compared to $0.3 million for the three months ended March 31, 2009. Capital expenditures for the three months ended March 31, 2010 were $3.9 million compared with $2.3 million for the three months ended March 31, 2009. During the three months ended March 31, 2010, a deferred purchase payment of $2.3 million was made to the former owners of Golden Phoenix Liquid Nitrogen Container Co., Ltd. in accordance with the purchase agreement. During the three months ended March, 31, 2009, certain short-term investments matured and the proceeds totaled $2.0 million.
BioMedical orders for the three months ended March 31, 2010 were $36.1 million compared to $30.1 million for the three months ended December 31, 2009. BioMedical backlog at March 31, 2010 totaled $12.3 million compared to $9.5 million at December 31, 2009. The Covidien Acquisition contributed to the increase in orders of $5.9 million.
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