- Full-year Company orders of $14.3
billion, up 40 percent year-over-year
- Strong project execution drives
early delivery of Yamal LNG Train 3
- Non-cash after-tax asset impairment
charges of $1.7 billion
- Full-year distributions of $681
million from dividends and share repurchase
Regulatory News:
TechnipFMC plc (NYSE: FTI) (Paris: FTI)
(ISIN:GB00BDSFG982) today reported fourth quarter 2018
results.
Total Company revenue was $3,323 million. The Company reported a
net loss of $2,259.3 million, or $5.00 per diluted share. These
results included total after-tax charges and credits of $2,220.3
million, or $4.91 per diluted share. Adjusted net loss was $39
million, or $0.09 per diluted share.
Total after-tax charges and credits in the quarter of $2,220.3
million were as follows:
1) After-tax charges and credits impacting operating results of
$2,006.1 million, which included the following (Exhibit 8):
- Asset impairments totaling $1,688.8
million for goodwill and other fixed assets;
- A provision of $280 million as a
probable estimate for the aggregate settlement of investigations
regarding historical projects; and
- Restructuring charges, business
combination costs, and purchase price accounting adjustments
totaling $37.3 million.
2) Charges and credits impacting the tax provision of $214.2
million, which included the following (Exhibit 8):
- A tax provision for the true-up of U.S.
tax reform of $11.8 million; and
- A tax provision for valuation
allowances of $202.4 million.
Adjusted EBITDA, which excludes pre-tax charges and credits, was
$342.4 million; adjusted EBITDA margin was 10.3 percent (Exhibit
9).
Other significant pre-tax items impacting the quarter, for which
we do not provide guidance, included the following:
- $38.7 million of foreign exchange
losses included in corporate expense, or $0.05 per diluted share on
an after-tax basis; and
- $108.8 million of increased liability
payable to joint venture partners included in interest expense, or
$0.24 per diluted share on an after-tax basis.
Summary Financial Statements – Fourth Quarter
2018Reconciliation of U.S. GAAP to non-GAAP financial measures
are below and in financial schedules.
Three Months Ended
(In millions, except per share
amounts)
December 31,2018
December 31,2017
Change Revenue $3,323.0 $3,683.0
(9.8%)
Net income (loss) $(2,259.3)
$(153.9) n/m
Diluted earnings (loss) per share
$(5.00) $(0.33) n/m
Adjusted EBITDA $342.4
$525.0 (34.8%)
Adjusted EBITDA margin 10.3%
14.3% (395 bps)
Adjusted net income (loss)
$(39.0) $90.9 n/m
Adjusted diluted earnings
(loss) per share $(0.09) $0.20 n/m
Inbound orders
$2,925.1 $2,991.9 (2.2%)
Backlog
$14,560.0 $12,982.8 12.1%
As previously disclosed, we are cooperating with the U.S.,
Brazilian, and French authorities in their investigations of
potential violations of anticorruption laws relating to historical
projects in Brazil, Equatorial Guinea, and Ghana, and Unaoil
contracts. We have been informed that these authorities have been
coordinating their investigations, which could result in a global
resolution.
These matters have progressed to a point where a probable
estimate of the aggregate settlement amount with all authorities is
$280 million for which we have taken a provision in the fourth
quarter and year ended December 31, 2018. These matters involve
negotiations with law enforcement authorities in three separate
jurisdictions, and there is no certainty that a global settlement
will be reached or that settlement will not exceed the
provision.
Full Year 2018 Results
Total Company revenue was $12,552.9 million. The Company
reported a net loss of $1,921.6 million, or $4.20 per diluted
share. These results included total after-tax charges and credits
of $2,298.7 million, or $5.02 per diluted share. Adjusted net
income was $377.1 million, or $0.82 per diluted share.
Total after-tax charges and credits for the full year of
$2,298.7 million were as follows:
1) After-tax charges and credits impacting the operating results
of $2,073.1 million, which included the following (Exhibit 8):
- Asset impairments totaling $1,698.2
million for goodwill and other fixed assets;
- A provision of $280 million as a
probable estimate for the aggregate settlement of investigations
regarding historical projects; and
- Restructuring charges, business
combination costs, purchase price accounting adjustments, and a
gain on divestitures totaling $94.9 million.
2) Charges and credits impacting the tax provision of $225.6
million, which included the following (Exhibit 8):
- A tax provision for the true-up of U.S.
tax reform of $11.8 million; and
- A tax provision for valuation
allowances of $213.8 million.
Adjusted EBITDA, which excludes charges and credits, was
$1,536.8 million; adjusted EBITDA margin was 12.2 percent (Exhibit
10).
Other significant pre-tax items impacting the year, for which we
do not provide guidance, included the following:
- $116.5 million of foreign exchange
losses included in corporate expense, or $0.16 per diluted share on
an after-tax basis; and
- $322.3 million of increased liability
payable to joint venture partners included in interest expense, or
$0.70 per diluted share on an after-tax basis.
Summary Financial Statements – Full Year
2018Reconciliation of U.S. GAAP to non-GAAP financial measures
are below and in financial schedules.
Twelve Months Ended
(In millions, except per share
amounts)
December 31,2018
December 31,2017
Change Revenue $12,552.9
$15,056.9 (16.6%)
Net income (loss) $(1,921.6)
$113.3 n/m
Diluted earnings (loss) per share
$(4.20) $0.24 n/m
Adjusted EBITDA $1,536.8
$1,983.0 (22.5%)
Adjusted EBITDA margin 12.2%
13.2% (93 bps)
Adjusted net income (loss)
$377.1 $603.5 (37.5%)
Adjusted diluted
earnings (loss) per share $0.82 $1.29
(36.4%)
Inbound
orders $14,291.0 $10,196.3 40.2%
Backlog $14,560.0 $12,982.8 12.1%
Doug Pferdehirt, CEO of TechnipFMC, stated, “Many significant
achievements contributed to our success in 2018. We exceeded total
Company financial objectives for a second consecutive year, largely
driven by continued strength in Onshore/Offshore execution as
evidenced by early start-up of Trains 2 and 3 for Yamal LNG. We
also achieved notable milestones in Subsea, including the
successful delivery of the industry’s first full-cycle iEPCI™
projects and commercialization of our new Subsea 2.0™ product
platform.”
“Total Company orders were $14.3 billion for the full year, a 40
percent increase compared to the prior year. Orders exceeded
revenues in all segments, with Onshore/Offshore securing several
key awards in the downstream and petrochemical sectors, driving a
95 percent increase in orders year-over-year. In Surface
Technologies, strength outside the Americas drove orders 36 percent
higher than the previous year.”
“During the quarter, we progressed on outstanding investigations
of historical projects and took a $280 million provision as a
probable estimate for the aggregate settlement. We continue to
cooperate with all authorities in order to conclude this
matter.”
Pferdehirt continued, “In Subsea, the market is rapidly
embracing greater project integration. Already in 2019, we have
secured new iEPCI™ projects with BP and Lundin – both first-time
iEPCI™ customers. We are confident that our unique offering and
experience will lead to further growth in our iEPCI™ backlog in the
coming year. We also anticipate an acceleration in subsea services
growth, driven by both internal investment and increased market
activity.”
“The resurgence in LNG activity is confirmed with a new wave of
significant LNG project opportunities. Selectivity remains at the
core of our project success. With our global footprint, we are
tracking greenfield and brownfield projects across four continents,
representing a substantial portfolio of opportunities. We will
leverage our most successful reference projects, incumbent
positions, and client relationships toward those projects that are
most strategic to TechnipFMC and offer the highest probability of
successful execution.”
“In Surface Technologies, strong order and backlog growth in the
second half of 2018 further strengthens our conviction in increased
activity outside of the Americas, particularly in the Middle East.
Activity in North America continues to moderate. However, we
anticipate growth in the second half of 2019, driven in part by
additional pipeline capacity in the Permian region.”
“Disciplined capital allocation remains a priority. Capital
expenditures are focused on the best opportunities for growth and
returns across the markets we serve. In 2018, we also returned $681
million to shareholders through dividend and share repurchase
activity.”
Pferdehirt concluded, “Through the hard work and dedication of
the more than 37,000 women and men of TechnipFMC, we have done more
than simply navigate the industry downturn. We have successfully
pioneered a completely new integrated subsea model and restored
growth in total Company backlog, positioning us well for further
success in 2019 and beyond.”
Operational and Financial Highlights – Fourth Quarter
2018
Subsea
Financial HighlightsReconciliation of U.S. GAAP to
non-GAAP financial measures are below and in financial
schedules.
Three Months Ended
(In millions)
December 31,2018
December 31,2017
Change Revenue $1,233.3 $1,292.2
(4.6%)
Operating profit (loss) $(1,739.5)
$67.4 n/m
Adjusted EBITDA $148.5
$244.1 (39.2%)
Adjusted EBITDA margin 12.0%
18.9% (685 bps)
Inbound orders $880.6 $1,724.8
(48.9%)
Backlog $5,999.6 $6,203.9
(3.3%)
Subsea reported fourth quarter revenue of $1,233.3 million.
Revenue was down 4.6 percent from the prior year as projects in
Africa were completed or progressed further towards completion,
largely offset by increased activity in North America, Asia
Pacific, and South America.
In the quarter, the Company recorded pre-tax asset impairment
charges totaling $1,775.6 million in Subsea. These non-cash charges
resulted from our annual fair value assessment of our business and
assets; these include impairments to goodwill and fixed assets,
including a reduction in the carrying values of certain vessels
within our fleet.
Subsea reported an operating loss of $1,739.5 million; included
in the operating results are total pre-tax charges of $1,803.1
million. Adjusted EBITDA was $148.5 million with a margin of 12
percent. Adjusted EBITDA declined versus the prior-year quarter
primarily due to the execution of more competitively priced
backlog, partially offset by merger synergies and other cost
reduction activities.
Vessel utilization rate for the fourth quarter was 62 percent,
down from 69 percent in the third quarter and 65 percent in the
prior-year quarter.
Fourth Quarter Subsea Highlights
- Total Egina (Nigeria)First oil
achieved for one of the largest subsea projects to date in West
Africa; continuing involvement through a services contract.
- Total Kaombo
(Angola)Mobilization of the Skandi Africa in advance of the
hookup campaign for the South floating production, storage, and
offloading unit (FPSO).
Subsea inbound orders for the quarter were $880.6 million,
reflecting the continued strength in small project activity and
subsea services. Full-year inbound orders were $5,178.5 million,
resulting in a book-to-bill of 1.1.
Subsea
Estimated Backlog Scheduling as of
December 31, 2018
(In millions)
Consolidatedbacklog*
Non-consolidatedbacklog**
2019 $3,379.2 $184.7
2020
$1,382.1 $135.7
2021 and beyond $1,238.3
$653.6
Total $5,999.6
$974.0 * Backlog does not capture all revenue
potential for subsea services.
** Non-consolidated backlog
reflects the proportional share of backlog related to joint
venturesthat is not consolidated due to our minority ownership
position.
Onshore/Offshore
Financial HighlightsReconciliation of U.S. GAAP to
non-GAAP financial measures are below and in financial
schedules.
Three Months Ended
(In millions)
December 31,2018
December 31,2017
Change Revenue $1,672.4 $2,019.5
(17.2%)
Operating profit $206.4 $257.2
(19.8%)
Adjusted EBITDA $217.2 $294.5
(26.2%)
Adjusted EBITDA margin 13.0%
14.6% (160 bps)
Inbound orders $1,609.4 $874.2
84.1%
Backlog $8,090.5 $6,369.1 27.0%
Onshore/Offshore reported fourth quarter revenue of $1,672.4
million. Revenue declined 17.2 percent from the prior-year quarter
as we moved closer to completion on major projects, primarily Yamal
LNG.
Onshore/Offshore reported operating profit of $206.4 million;
adjusted EBITDA was $217.2 million with a margin of 13 percent.
Operating profit declined 19.8 percent versus the prior-year
quarter, primarily due to the revenue decline and a shift in
revenue mix to lower margin project work. Strong project execution
continued on Yamal LNG, with all three trains now handed over to
the customer; operating results in the period also benefitted from
a bonus for completion of further milestones on the project,
including Train 3. These same factors drove the year-over-year
decline in adjusted EBITDA.
Fourth Quarter Onshore/Offshore Highlights
- Energean Karish iEPCI™
(Israel)Hull cutting ceremony (China); steel cutting ceremonies
for the electrical house module (Indonesia) and topsides
(Singapore).
- ENI Coral South FLNG
(Mozambique)Topsides cutting ceremony in Korea.
- Equinor Martin Linge
(Norway)Early occupancy of living quarters; platform’s power
supply from shore achieved.
Onshore/Offshore inbound orders for the quarter were $1,609.4
million. Full-year inbound orders were $7,425.9 million, resulting
in a book-to-bill of 1.2. The following announced award was
included in the period:
- Neste Renewable Products Facility
Expansion (Singapore)Significant* Engineering, Procurement
support, and Construction management services contract by Neste for
the expansion of their renewable products refinery in Singapore.
The expansion aims at meeting the market demand for renewable
products.* A “significant” award ranges between $75 million and
$250 million (TechnipFMC share).
The following award was announced during the period and will be
included in the first quarter 2019 inbound orders:
- MIDOR Refinery Expansion and
Modernization (Egypt)Major* Engineering, Procurement, and
Construction (EPC) contract by Middle East Oil Refinery (MIDOR) for
the modernization and expansion of their existing complex near
Alexandria, Egypt. TechnipFMC has successfully completed the
remaining conditions required to enable work to commence on the
contract.* A “major” award is over $1 billion (TechnipFMC
share).
Onshore/Offshore
Estimated Backlog Scheduling as of
December 31, 2018
(In millions)
Consolidatedbacklog
Non-consolidatedbacklog*
2019 $5,335.1 $676.1
2020
$1,732.9 $587.7
2021 and beyond $1,022.5
$484.7
Total $8,090.5
$1,748.5
* Non-consolidated backlog reflects
the proportional share of backlog related to joint venturesthat is
not consolidated due to our minority ownership position.
Surface Technologies
Financial HighlightsReconciliation of U.S. GAAP to
non-GAAP financial measures are below and in financial
schedules.
Three Months Ended
(In millions)
December 31,2018
December 31,2017
Change Revenue $417.3 $372.3
12.1%
Operating profit $38.8 $53.3
(27.2%)
Adjusted EBITDA $64.9 $75.8
(14.4%)
Adjusted EBITDA margin 15.6%
20.4% (481 bps)
Inbound orders $435.1 $392.9
10.7%
Backlog $469.9 $409.8 14.7%
Surface Technologies reported fourth quarter revenue of $417.3
million. Revenue increased 12.1 percent from the prior-year
quarter. Increased drilling activity in North America as well as
market share gains drove wellhead product sales higher; sales of
hydraulic fracturing rental equipment also moved higher as market
share gains more than offset the market decline in completions
activity. International revenue growth was driven by pressure
control sales and aftermarket services.
Surface Technologies reported operating profit of $38.8 million;
adjusted EBITDA was $64.9 million with a margin of 15.6 percent.
Operating profit decreased versus the prior-year quarter primarily
due to the rapid decline in flowline product sales, which resulted
in an unfavorable product mix. The same factor drove the
year-over-year decrease in adjusted EBITDA.
Fourth Quarter Surface Technologies Highlights
- Chevron Frame Agreement (North
America)Covers the supply of surface wellheads, production
trees, and related services in the United States and Canada.
Inbound orders for the quarter were $435.1 million. Full-year
inbound orders were $1,686.6 million, resulting in a book-to-bill
of 1.1.
Backlog was $469.9 million. Given the short-cycle nature of the
business, most orders are quickly converted into sales revenue;
longer contracts are typically converted within twelve months.
Corporate and Other Items
Corporate expense in the fourth quarter was $393.6 million. This
includes a provision of $280 million as a probable estimate for the
aggregate settlement of investigations regarding historical
projects, and charges and credits totaling $23.3 million relating
to merger and integration costs, restructuring and other severance
charges, and purchase price accounting adjustments. Excluding
charges and credits, corporate expense was $90.3 million; this
included $38.7 million of foreign exchange losses.
Net interest expense was $116.6 million in the quarter, which
included an increase in the liability payable to joint venture
partners of $108.8 million.
The Company recorded a tax provision during the quarter of $242
million. The provision was impacted by a true-up for U.S. tax
reform of $11.8 million and a valuation allowance of $202.4
million.
Total depreciation and amortization for the quarter was $137.9
million, including depreciation and amortization related to
purchase price accounting for the merger of $24 million.
Capital expenditures were $112.9 million during the quarter;
expenditures were $368.1 million for the full year.
The Company repurchased 2.5 million shares during the quarter
for total consideration of $58.4 million. During the quarter, the
Company completed the $500 million share repurchase program that
was implemented in October 2017. The Board of Directors approved an
additional $300 million share repurchase program in December
2018.
Cash flow from operations in the quarter was $159.3 million. The
Company ended the period with cash and cash equivalents of $5,540
million; net cash was $1,348.3 million.
2019 Financial Guidance1
The Company’s full-year guidance for 2019 can be found in the
table below. The following update is reflected in the outlook:
- Capital expenditures of approximately
$350 million for the full year, a decrease from the previous
guidance of approximately $400 million for the full year.
2019 Guidance *Updated February 20, 2019
Subsea Onshore/Offshore Surface
Technologies
Revenue in a range of$5.4 – 5.7
billion
Revenue in a range of$5.7 – 6.0
billion
Revenue in a range of$1.7 – 1.8
billion
EBITDA margin at least11%
(excludingamortization relatedimpact of purchaseprice accounting,
andother charges andcredits)
EBITDA margin at least12%
(excludingamortization relatedimpact of purchaseprice accounting,
andother charges andcredits)
EBITDA margin at least17%
(excludingamortization relatedimpact of purchaseprice accounting,
andother charges andcredits)
TechnipFMC Corporate expense, net $160
– 170 million for the full year (excluding the impact of foreign
currency fluctuations)
Net interest expense $40 – 60
million for the full year (excluding the impact of revaluation of
partners’ redeemable financial liability)
Tax rate 28
– 32% for the full year (excluding the impact of discrete items)
Capital expenditures* approximately $350 million for
the full year
Cash flow from operating activities
positive for the full year
Merger integration and
restructuring costs approximately $50 million for the full year
Cost synergies $450 million total savings ($220m exit
run-rate 12/31/17, $400m exit run-rate 12/31/18, $450m exit
run-rate 12/31/19)
_______________1 Our guidance measures adjusted EBITDA margin,
corporate expense, net (excluding the impact of foreign currency
fluctuations), net interest expense excluding the impact of
revaluation of partners’ redeemable financial liability, and tax
rate (excluding the impact of discrete items) are non-GAAP
financial measures. We are unable to provide a reconciliation to
comparable GAAP financial measures on a forward-looking basis
without unreasonable effort because of the unpredictability of the
individual components of the most directly comparable GAAP
financial measure and the variability of items excluded from each
such measure. Such information may have a significant, and
potentially unpredictable, impact on our future financial
results.
Teleconference
The Company will host a teleconference on Thursday, February 21,
2019 to discuss the fourth quarter 2018 financial results. The call
will begin at 1 p.m. London time (8 a.m. New York time). Dial-in
information and an accompanying presentation can be found at
www.technipfmc.com.
Webcast access will also be available on our website prior to
the start of the call. An archived audio replay will be available
after the event at the same website address. In the event of a
disruption of service or technical difficulty during the call,
information will be posted on our website.
###
About TechnipFMC
TechnipFMC is a global leader in subsea, onshore/offshore, and
surface projects. With our proprietary technologies and production
systems, integrated expertise, and comprehensive solutions, we are
transforming our clients’ project economics.
We are uniquely positioned to deliver greater efficiency across
project lifecycles from concept to project delivery and beyond.
Through innovative technologies and improved efficiencies, our
offering unlocks new possibilities for our clients in developing
their oil and gas resources.
Each of our more than 37,000 employees is driven by a steady
commitment to clients and a culture of purposeful innovation,
challenging industry conventions, and rethinking how the best
results are achieved.
To learn more about us and how we are enhancing the performance
of the world’s energy industry, go to TechnipFMC.com and follow us
on Twitter @TechnipFMC.
This communication contains “forward-looking statements” as
defined in Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Words such as “guidance,”
“confident,” “believe,” “expect,” “anticipate,” “plan,” “intend,”
“foresee,” “should,” “would,” “could,” “may,” “will,” “likely,”
“predicated,” “estimate,” “outlook” and similar expressions are
intended to identify forward-looking statements, which are
generally not historical in nature. Such forward-looking statements
involve significant risks, uncertainties and assumptions that could
cause actual results to differ materially from our historical
experience and our present expectations or projections, including
the following known material factors:
- the remedial measures to address our
material weaknesses could be insufficient or additional issues
relating to disclosure controls and procedures or internal control
over financial reporting could be identified;
- unanticipated changes relating to
competitive factors in our industry;
- demand for our products and services,
which is affected by changes in the price of, and demand for, crude
oil and natural gas in domestic and international markets;
- our ability to develop and implement
new technologies and services, as well as our ability to protect
and maintain critical intellectual property assets;
- potential liabilities arising out of
the installation or use of our products;
- cost overruns related to our fixed
price contracts or asset construction projects that may affect
revenues;
- our ability to timely deliver our
backlog and its effect on our future sales, profitability, and our
relationships with our customers;
- our reliance on subcontractors,
suppliers and joint venture partners in the performance of our
contracts;
- our ability to hire and retain key
personnel;
- piracy risks for our maritime employees
and assets;
- the potential impacts of seasonal and
weather conditions;
- the cumulative loss of major contracts
or alliances;
- U.S. and international laws and
regulations, including environmental laws and regulations, that may
increase our costs, limit the demand for our products and services
or restrict our operations;
- disruptions in the political,
regulatory, economic and social conditions of the countries in
which we conduct business;
- risks associated with The Depository
Trust Company and Euroclear for clearance services for shares
traded on the NYSE and Euronext Paris, respectively;
- the United Kingdom’s proposed
withdrawal from the European Union;
- risks associated with being an English
public limited company, including the need for court approval of
“distributable profits” and stockholder approval of certain capital
structure decisions;
- our ability to pay dividends or
repurchase shares in accordance with our announced capital
allocation plan;
- compliance with covenants under our
debt instruments and conditions in the credit markets;
- a downgrade in the ratings of our debt
could restrict our ability to access the debt capital markets;
- the outcome of uninsured claims,
litigation, and government investigations against us;
- the risks of currency exchange rate
fluctuations associated with our international operations;
- significant merger-related costs;
- risks related to our acquisition and
divestiture activities;
- failure of our information technology
infrastructure or any significant breach of security, including
related to cyber attacks, and risks related to compliance with data
security and privacy obligations;
- risks that the legacy businesses of FMC
Technologies, Inc. and Technip S.A. will not be integrated
successfully or that the combined company will not realize
estimated cost savings, value of certain tax assets, synergies and
growth or that such benefits may take longer to realize than
expected;
- risks associated with tax liabilities,
changes in U.S. federal or international tax laws or
interpretations to which they are subject; and
- such other risk factors set forth in
our filings with the United States Securities and Exchange
Commission and in our filings with the Autorité des marchés
financiers or the U.K. Financial Conduct Authority.
We caution you not to place undue reliance on any
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any of our
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise, except to
the extent required by law.
TECHNIPFMC plc AND
CONSOLIDATED SUBSIDIARIESGAAP
FINANCIAL STATEMENTS
The U.S. GAAP financial statements for TechnipFMC plc and
consolidated subsidiaries are provided on the following pages. The
financial results reflect the following information:
- On January 16, 2017, TechnipFMC was
created by the business combination of Technip S.A. (Technip) and
FMC Technologies, Inc. (FMC Technologies).
Therefore, the results for the twelve months ended December 31,
2017:
1. Include the results of Technip for the full period;2. Include
the results of FMC Technologies for the period January 17 to
December 31, 2017; revenue of $112.9 million during the period from
January 1 to January 16, 2017 were excluded, of which approximately
70 percent was reported in Subsea and the remainder in Surface
Technologies.
When referencing these financial statements, adjusted EBITDA is
also used to describe EBITDA excluding amortization related to the
impact of purchase price accounting and other charges and
credits.
Exhibit 1
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
(In millions, except per share
data)
(Unaudited) Three Months Ended Year
Ended December 31, December 31, 2018
2017 2018 2017 Revenue $
3,323.0 $ 3,683.0 $ 12,552.9 $ 15,056.9 Costs and expenses 4,943.3
3,387.1 13,470.5 14,091.7 (1,620.3 )
295.9 (917.6 ) 965.2 Other (expense) income, net (267.6 )
(52.9 ) (209.6 ) 29.7 Income (loss) before net
interest expense and income taxes (1,887.9 ) 243.0 (1,127.2 ) 994.9
Net interest expense (116.6 ) (74.7 ) (360.9 ) (315.2 )
Income (loss) before income taxes (2,004.5 ) 168.3 (1,488.1 ) 679.7
Provision for income taxes 242.0 295.8 422.7
545.5 Net income (loss) (2,246.5 ) (127.5 ) (1,910.8
) 134.2 Net loss (income) attributable to noncontrolling interests
(12.8 ) (26.4 ) (10.8 ) (20.9 ) Net income (loss)
attributable to TechnipFMC plc $ (2,259.3 ) $ (153.9 ) $ (1,921.6 )
$ 113.3 Earnings (loss) per share attributable to
TechnipFMC plc: Basic $ (5.00 ) $ (0.33 ) $ (4.20 ) $ 0.24 Diluted
$ (5.00 ) $ (0.33 ) $ (4.20 ) $ 0.24 Weighted average shares
outstanding: Basic 452.0 466.2 458.0 466.7 Diluted 452.0 466.2
458.0 468.3 Cash dividends declared per share $ 0.13 $ 0.13
$ 0.52 $ 0.13
Exhibit 2
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
BUSINESS SEGMENT
DATA
(In millions)
(Unaudited) Three Months Ended Year
Ended December 31, December 31, 2018
2017 2018 2017
Revenue
Subsea $ 1,233.3 $ 1,292.2 $ 4,840.0 $ 5,877.4
Onshore/Offshore 1,672.4 2,019.5 6,120.7 7,904.5 Surface
Technologies 417.3 372.3 1,592.2 1,274.6 Other revenue —
(1.0 ) — 0.4 $ 3,323.0 $ 3,683.0 $
12,552.9 $ 15,056.9
Income before
income taxes
Segment operating
profit (loss)
Subsea $ (1,739.5 ) $ 67.4 $ (1,529.5 ) $ 460.5 Onshore/Offshore
206.4 257.2 824.0 810.9 Surface Technologies 38.8 53.3
172.8 82.7 Total segment operating profit
(loss) (1,494.3 ) 377.9 (532.7 ) 1,354.1
Corporate
items
Corporate expense, net (1) (393.6 ) (134.9 ) (594.5 ) (359.2 ) Net
interest expense (116.6 ) (74.7 ) (360.9 ) (315.2 ) Total corporate
items (510.2 ) (209.6 ) (955.4 ) (674.4 ) Net income (loss)
before income taxes (2) $ (2,004.5 ) $ 168.3 $ (1,488.1 ) $
679.7
(1) Corporate expense, net primarily includes corporate staff
expenses, stock-based compensation expenses, other employee
benefits, certain foreign exchange gains and losses, and
merger-related transaction expenses.(2) Includes amounts
attributable to noncontrolling interests.
Exhibit 3
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
BUSINESS SEGMENT
DATA
(In millions, unaudited)
Three Months Ended
Year Ended
Inbound Orders
(1)
December 31, December 31, 2018
2017 2018 2017 Subsea $ 880.6 $
1,724.8 $ 5,178.5 $ 5,143.6 Onshore/Offshore 1,609.4 874.2 7,425.9
3,812.9 Surface Technologies 435.1 392.9 1,686.6
1,239.8 Total inbound orders $ 2,925.1 $ 2,991.9
$ 14,291.0 $ 10,196.3
Order Backlog
(2)
December 31, 2018 2017 Subsea $ 5,999.6
$ 6,203.9 Onshore/Offshore 8,090.5 6,369.1 Surface Technologies
469.9 409.8 Total order backlog $ 14,560.0 $ 12,982.8
(1) Inbound orders represent the estimated sales value of
confirmed customer orders received during the reporting period.(2)
Order backlog is calculated as the estimated sales value of
unfilled, confirmed customer orders at the reporting date.
Exhibit 4
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(In millions)
(Unaudited) December 31, 2018
December 31, 2017 Cash and cash equivalents $
5,540.0 $ 6,737.4 Trade receivables, net 2,644.7 1,484.4 Contract
assets 1,295.0 1,755.5 Inventories, net 1,251.2 987.0 Other current
assets 1,270.1 2,012.8 Total current assets 12,001.0
12,977.1 Property, plant and equipment, net 3,259.8 3,871.5
Goodwill 7,607.6 8,929.8 Intangible assets, net 1,176.7 1,333.8
Other assets 959.2 1,151.5 Total assets $ 25,004.3 $
28,263.7 Short-term debt and current portion of long-term
debt $ 67.4 $ 77.1 Accounts payable, trade 2,600.3 3,958.7 Contract
liabilities 4,260.1 3,314.2 Other current liabilities 2,426.4
2,479.4 Total current liabilities 9,354.2 9,829.4
Long-term debt, less current portion 4,124.3 3,777.9 Other
liabilities 1,056.4 1,247.0 Redeemable noncontrolling interest 38.5
— TechnipFMC plc stockholders’ equity 10,399.6 13,387.9
Noncontrolling interests 31.3 21.5 Total liabilities and
equity $ 25,004.3 $ 28,263.7
Exhibit 5
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited) Year Ended December 31,
2018 2017 Cash provided (required) by
operating activities Net income (loss) $ (1,910.8 ) $ 134.2
Adjustments to reconcile net income (loss) to cash provided
(required) by operating activities Depreciation 367.8 370.2
Amortization 182.6 244.5 Employee benefit plan and share-based
compensation costs 22.4 18.7 Deferred income tax provision
(benefit), net 48.8 141.6 Unrealized loss (gain) on derivative
instruments and foreign exchange 102.7 (73.5 ) Impairments 1,792.6
34.3 Income from equity affiliates, net of dividends received
(110.7 ) (37.9 ) Other 571.8 4.7 Changes in operating assets and
liabilities, net of effects of acquisitions Trade receivables, net
and contract assets (839.1 ) 286.8 Inventories, net (339.4 ) 130.9
Accounts payable, trade (1,248.7 ) (525.8 ) Contract liabilities
937.7 (1,111.4 ) Income taxes payable (receivable), net (190.7 )
(152.2 ) Other current assets and liabilities, net 641.2 646.5
Other noncurrent assets and liabilities, net (213.6 ) 99.1
Cash provided (required) by operating activities (185.4 ) 210.7
Cash provided (required) by investing activities
Capital expenditures (368.1 ) (255.7 ) Cash acquired in merger of
FMC Technologies, Inc. and Technip S.A. — 1,479.2 Acquisitions, net
of cash acquired (104.9 ) — Cash divested from deconsolidation (6.7
) — Proceeds from sale of assets 19.5 14.4 Other — 12.1
Cash provided (required) by investing activities (460.2 )
1,250.0 Cash required by financing activities Net
decrease in short-term debt (31.3 ) (106.4 ) Net increase in
commercial paper 496.6 234.9 Proceeds from issuance of long-term
debt (3.6 ) 25.7 Repayments of long-term debt — (888.0 ) Payments
related to taxes withheld on share-based compensation — (46.6 )
Purchase of ordinary shares (442.6 ) (58.5 ) Dividends paid (238.1
) (60.6 ) Settlements of mandatorily redeemable financial liability
(225.8 ) (156.5 ) Other — 1.2 Cash required by
financing activities (444.8 ) (1,054.8 ) Effect of changes in
foreign exchange rates on cash and cash equivalents (107.0 ) 62.2
Increase (decrease) in cash and cash equivalents (1,197.4 )
468.1 Cash and cash equivalents, beginning of period 6,737.4
6,269.3 Cash and cash equivalents, end of period $ 5,540.0
$ 6,737.4
TECHNIPFMC plc AND
CONSOLIDATED SUBSIDIARIESNON-GAAP FINANCIAL MEASURES
The Reconciliation of U.S. GAAP to non-GAAP financial measures
for TechnipFMC plc and consolidated subsidiaries are provided on
the following pages. The financial results reflect the following
information:
- On January 16, 2017, TechnipFMC was
created by the business combination of Technip S.A. (Technip) and
FMC Technologies, Inc. (FMC Technologies).
The Non-GAAP results for the twelve months ended December 31,
2017:
1. Include the results of Technip for the full period;2. Include
the results of FMC Technologies for the period January 17 to
December 31, 2017; revenue of $112.9 million during the period from
January 1 to January 16, 2017 were excluded, of which approximately
70 percent was reported in Subsea and the remainder in Surface
Technologies.
When referencing these financial statements, adjusted EBITDA is
also used to describe EBITDA excluding amortization related to the
impact of purchase price accounting and other charges and
credits.
Exhibit 6
TECHNIPFMC PLC AND
CONSOLIDATED SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES(In millions, unaudited)Charges and
Credits
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (GAAP), the fourth
quarter 2018 Earnings Release also includes non-GAAP financial
measures (as defined in Item 10 of Regulation S-K of the Securities
Exchange Act of 1934, as amended) and describes performance on a
year-over-year basis against 2017 results and measures. Net income,
excluding charges and credits, as well as measures derived from it
(including Diluted EPS, excluding charges and credits; Income
before net interest expense and taxes, excluding charges and
credits ("Adjusted Operating profit"); Depreciation and
amortization, excluding charges and credits; Earnings before net
interest expense, income taxes, depreciation and amortization,
excluding charges and credits ("Adjusted EBITDA"); and net cash)
are non-GAAP financial measures. Management believes that the
exclusion of charges and credits from these financial measures
enables investors and management to more effectively evaluate
TechnipFMC's operations and consolidated results of operations
period-over-period, and to identify operating trends that could
otherwise be masked or misleading to both investors and management
by the excluded items. These measures are also used by management
as performance measures in determining certain incentive
compensation. The foregoing non-GAAP financial measures should be
considered by investors in addition to, not as a substitute for or
superior to, other measures of financial performance prepared in
accordance with GAAP. The following is a reconciliation of the most
comparable financial measures under GAAP to the non-GAAP financial
measures.
Three Months Ended December 31, 2018
Net
income(loss)attributable
toTechnipFMCplc
Net
loss(income)attributable
tononcontrollinginterests
Provision forincome
taxes
Net interestexpense
Income (loss)before
netinterestexpense andincome
taxes(Operatingprofit)
Depreciationandamortization
Earnings(loss) beforenet
interestexpense,income
taxes,depreciationandamortization(EBITDA)
TechnipFMC plc, as reported $ (2,259.3 ) $ (12.8 ) $ 242.0 $ (116.6
) $ (1,887.9 ) $ 137.9 $ (1,750.0 ) Charges and (credits):
Impairment and other charges 1,688.8 — 89.7 — 1,778.5 — 1,778.5
Restructuring and other severance charges 11.6 — 8.5 — 20.1 — 20.1
Business combination transaction
andintegration costs
8.7 — 6.9 — 15.6 — 15.6 Legal provision 280.0 — — — 280.0 — 280.0
Purchase price accounting adjustment 17.0 — 5.2 — 22.2 (24.0 ) (1.8
) Tax reform 11.8 — (11.8 ) — — — — Valuation allowance 202.4
— (202.4 ) — — — —
Adjusted financial measures $ (39.0 ) $ (12.8 ) $ 138.1 $
(116.6 ) $ 228.5 $ 113.9 $ 342.4
Three Months Ended December 31, 2017
Net
income(loss)attributable
toTechnipFMCplc
Net
loss(income)attributable
tononcontrollinginterests
Provision forincome
taxes
Net interestexpense
Income beforenet
interestexpense andincome
taxes(Operatingprofit)
Depreciationandamortization
Earningsbefore
netinterestexpense,income
taxes,depreciationandamortization(EBITDA)
TechnipFMC plc, as reported $ (153.9 ) $ (26.4 ) $ 295.8 $ (74.7 )
$ 243.0 $ 153.0 $ 396.0 Charges and (credits): Impairment
and other charges 11.7 — 6.8 — 18.5 — 18.5 Restructuring and other
severance charges 73.5 — 42.7 — 116.2 — 116.2
Business combination transaction
andintegration costs
10.6 — 4.0 — 14.6 — 14.6 Purchase price accounting adjustment 10.8
— 4.0 — 14.8 (35.1 ) (20.3 ) Tax reform 138.2 —
(138.2 ) — — — — Adjusted financial
measures $ 90.9 $ (26.4 ) $ 215.1 $ (74.7 ) $ 407.1
$ 117.9 $ 525.0
Exhibit 7
TECHNIPFMC PLC AND
CONSOLIDATED SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES(In millions, unaudited)Charges and
Credits
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (GAAP), the fourth
quarter 2018 Earnings Release also includes non-GAAP financial
measures (as defined in Item 10 of Regulation S-K of the Securities
Exchange Act of 1934, as amended) and describes performance on a
year-over-year basis against 2017 results and measures. Net income,
excluding charges and credits, as well as measures derived from it
(including Diluted EPS, excluding charges and credits; Income
before net interest expense and taxes, excluding charges and
credits ("Adjusted Operating profit"); Depreciation and
amortization, excluding charges and credits; Earnings before net
interest expense, income taxes, depreciation and amortization,
excluding charges and credits ("Adjusted EBITDA"); and net cash)
are non-GAAP financial measures. Management believes that the
exclusion of charges and credits from these financial measures
enables investors and management to more effectively evaluate
TechnipFMC's operations and consolidated results of operations
period-over-period, and to identify operating trends that could
otherwise be masked or misleading to both investors and management
by the excluded items. These measures are also used by management
as performance measures in determining certain incentive
compensation. The foregoing non-GAAP financial measures should be
considered by investors in addition to, not as a substitute for or
superior to, other measures of financial performance prepared in
accordance with GAAP. The following is a reconciliation of the most
comparable financial measures under GAAP to the non-GAAP financial
measures.
Year Ended December 31, 2018
Net
income(loss)attributable
toTechnipFMCplc
Net
loss(income)attributable
tononcontrollinginterests
Provision forincome
taxes
Net interestexpense
Income (loss)before
netinterestexpense andincome
taxes(Operatingprofit)
Depreciationandamortization
Earnings(loss) beforenet
interestexpense,income
taxes,depreciationandamortization(EBITDA)
TechnipFMC plc, as reported $ (1,921.6 ) $ (10.8 ) $ 422.7 $ (360.9
) $ (1,127.2 ) $ 550.4 $ (576.8 ) Charges and (credits):
Impairment and other charges 1,698.2 — 94.4 — 1,792.6 — 1,792.6
Restructuring and other severance charges 23.9 — 14.7 — 38.6 — 38.6
Business combination transaction
andintegration costs
22.6 — 13.9 — 36.5 — 36.5 Legal provision 280.0 — — — 280.0 — 280.0
Gain on divestitures (19.5 ) — (12.1 ) — (31.6 ) — (31.6 ) Purchase
price accounting adjustment 67.9 — 20.9 — 88.8 (91.3 ) (2.5 ) Tax
reform 11.8 — (11.8 ) — — — — Valuation allowance 213.8 —
(213.8 ) — — — — Adjusted
financial measures $ 377.1 $ (10.8 ) $ 328.9 $ (360.9
) $ 1,077.7 $ 459.1 $ 1,536.8
Year Ended December 31, 2017
Net incomeattributable
toTechnipFMCplc
Net
loss(income)attributable
tononcontrollinginterests
Provision forincome
taxes
Net interestexpense
Income beforenet
interestexpense andincome
taxes(Operatingprofit)
Depreciationandamortization
Earningsbefore
netinterestexpense,income
taxes,depreciationandamortization(EBITDA)
TechnipFMC plc, as reported $ 113.3 $ (20.9 ) $ 545.5 $ (315.2 ) $
994.9 $ 614.7 $ 1,609.6 Charges and (credits): Impairment
and other charges 17.2 — 10.3 — 27.5 — 27.5 Restructuring and other
severance charges 102.6 — 61.4 — 164.0 — 164.0
Business combination transaction
andintegration costs
63.7 — 38.1 — 101.8 — 101.8 Change in accounting estimate 16.0 —
5.9 — 21.9 — 21.9 Purchase price accounting adjustment 152.5 — 56.4
0.3 208.6 (150.4 ) 58.2 Tax reform 138.2 — (138.2 ) —
— — — Adjusted financial measures $ 603.5
$ (20.9 ) $ 579.4 $ (314.9 ) $ 1,518.7 $ 464.3
$ 1,983.0
Exhibit 8
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share
amounts)
(Unaudited) Three Months Ended Year
Ended December 31, December 31, 2018
2017 2018 2017 (after-tax) Net
income (loss) attributable to TechnipFMC plc, as reported $ (2,259
) $ (154 ) $ (1,922 ) $ 113
Charges and
(credits):
Impairment and other charges (1) 1,689 11 1,698 17 Restructuring
and other severance charges (2) 11 74 24 103 Business combination
transaction and integration costs (3) 9 11 23 64 Legal provision
(4) 280 — 280 — Gain on divestitures (5) — — (20 ) — Change in
accounting estimate (6) — — — 16 Purchase price accounting
adjustments (7) 17 11 68 153 Tax reform (8) 12 138 12 138 Valuation
allowance (9) 202 — 214 — Total 2,220
245 2,299 491 Adjusted net income (loss)
attributable to TechnipFMC plc $ (39 ) $ 91 $ 377 $
604
Diluted earnings (loss) per share
attributable to TechnipFMC plc, asreported
$ (5.00 ) $ (0.33 ) $ (4.20 ) $ 0.24
Adjusted diluted earnings (loss) per share
attributable to TechnipFMCplc
$ (0.09 ) $ 0.20 $ 0.82 $ 1.29
(1) Tax effect of $90 million and $7 million during the three
months ended December 31, 2018 and 2017, respectively, and $94
million and $10 million during the twelve months ended December 31,
2018 and 2017, respectively.
(2) Tax effect of $9 million and $43 million during the three
months ended December 31, 2018 and 2017, respectively, and $15
million and $61 million during the twelve months ended December 31,
2018 and 2017, respectively.
(3) Tax effect of $7 million and $4 million during the three
months ended December 31, 2018 and 2017, respectively, and $14
million and $38 million during the twelve months ended December 31,
2018 and 2017, respectively.
(4) There was no tax effect during the three and twelve months
ended December 31, 2018 and 2017, respectively.
(5) Tax effect of nil and nil during the three months ended
December 31, 2018 and 2017, respectively, and $(12) million and nil
during the twelve months ended December 31, 2018 and 2017,
respectively.
(6) Tax effect of nil and nil during the three months ended
December 31, 2018 and 2017, respectively, and nil and $6 million
during the twelve months ended December 31, 2018 and 2017,
respectively.
(7) Tax effect of $5 million and $4 million during the three
months ended December 31, 2018 and 2017, respectively, and $21
million and $56 million during the twelve months ended December 31,
2018 and 2017, respectively.
(8) Tax effect of $12 million and $138 million during the three
months ended and $12 million and $138 million during the twelve
months ended December 31, 2018 and 2017, respectively.
(9) Tax effect of $202 million and nil during the three months
ended and $214 million and nil during the twelve months ended
December 31, 2018 and 2017, respectively.
Exhibit 9
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, unaudited)
Three Months Ended December 31, 2018
Subsea
Onshore/Offshore
SurfaceTechnologies
Corporateand Other
Total Revenue $ 1,233.3 $ 1,672.4 $ 417.3 $ — $
3,323.0 Operating profit (loss), as reported (pre-tax) $
(1,739.5 ) $ 206.4 $ 38.8 $ (393.6 ) $ (1,887.9 ) Charges
and (credits): Impairment and other charges 1,775.6 — 2.9 — 1,778.5
Restructuring and other severance charges 7.2 2.4 2.9 7.6 20.1
Business combination transaction and integration costs — — — 15.6
15.6 Legal provision — — — 280.0 280.0 Purchase price accounting
adjustments - non-amortization related (3.3 ) — 1.4 0.1 (1.8 )
Purchase price accounting adjustments -
amortization related
23.6 — 0.4 — 24.0 Subtotal
1,803.1 2.4 7.6 303.3 2,116.4
Adjusted Operating profit (loss) 63.6 208.8 46.4
(90.3 ) 228.5 Adjusted Depreciation and
amortization 84.9 8.4 18.5 2.1 113.9
Adjusted EBITDA $ 148.5 $ 217.2 $ 64.9
$ (88.2 ) $ 342.4 Operating profit margin, as
reported -141.0 % 12.3 % 9.3 % -56.8 % Adjusted Operating
profit margin 5.2 % 12.5 % 11.1 % 6.9 % Adjusted EBITDA
margin 12.0 % 13.0 % 15.6 % 10.3 %
Three Months
Ended December 31, 2017 Subsea
Onshore/Offshore
SurfaceTechnologies
Corporateand Other
Total Revenue $ 1,292.2 $ 2,019.5 $ 372.3 $ (1.0 ) $ 3,683.0
Operating profit, as reported (pre-tax) $ 67.4 $ 257.2 $
53.3 $ (134.9 ) $ 243.0 Charges and (credits): Impairment
and other charges 9.3 — 3.2 6.0 18.5 Restructuring and other
severance charges 55.0 26.1 4.1 31.0 116.2 Business combination
transaction and integration costs — — — 14.6 14.6 Purchase price
accounting adjustments - non-amortization related (14.8 ) — 1.0
(6.5 ) (20.3 ) Purchase price accounting adjustments - amortization
related 34.5 — 0.9 (0.3 ) 35.1 Subtotal
84.0 26.1 9.2 44.8 164.1
Adjusted Operating profit (loss) 151.4 283.3 62.5
(90.1 ) 407.1 Adjusted Depreciation and
amortization 92.7 11.2 13.3 0.7 117.9
Adjusted EBITDA $ 244.1 $ 294.5 $ 75.8
$ (89.4 ) $ 525.0 Operating profit margin, as
reported 5.2 % 12.7 % 14.3 % 6.6 % Adjusted Operating profit
margin 11.7 % 14.0 % 16.8 % 11.1 % Adjusted EBITDA margin
18.9 % 14.6 % 20.4 % 14.3 %
Exhibit 10
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, unaudited)
Year Ended December 31, 2018 Subsea
Onshore/Offshore
SurfaceTechnologies
Corporateand Other
Total Revenue $ 4,840.0 $ 6,120.7 $ 1,592.2 $ — $
12,552.9 Operating profit (loss), as reported (pre-tax) $
(1,529.5 ) $ 824.0 $ 172.8 $ (594.5 ) $ (1,127.2 ) Charges
and (credits): Impairment and other charges 1,784.2 — 4.5 3.9
1,792.6 Restructuring and other severance charges 17.7 (3.4 ) 9.3
15.0 38.6 Business combination transaction and integration costs —
— — 36.5 36.5 Legal provision — — — 280.0 280.0 Gain on
divestitures (3.3 ) (28.3 ) — — (31.6 ) Purchase price accounting
adjustments - non-amortization related (9.4 ) — 7.1 (0.2 ) (2.5 )
Purchase price accounting adjustments - amortization related 91.3
— — — 91.3 Subtotal 1,880.5
(31.7 ) 20.9 335.2 2,204.9
Adjusted Operating profit (loss) 351.0 792.3 193.7
(259.3 ) 1,077.7 Adjusted Depreciation and
amortization 349.2 38.1 66.6 5.2 459.1
Adjusted EBITDA $ 700.2 $ 830.4 $ 260.3
$ (254.1 ) $ 1,536.8 Operating profit margin, as
reported -31.6 % 13.5 % 10.9 % -9.0 % Adjusted Operating
profit margin 7.3 % 12.9 % 12.2 % 8.6 % Adjusted EBITDA
margin 14.5 % 13.6 % 16.3 % 12.2 %
Year Ended December
31, 2017 Subsea
Onshore/Offshore
SurfaceTechnologies
Corporateand Other
Total Revenue $ 5,877.4 $ 7,904.5 $ 1,274.6 $ 0.4 $ 15,056.9
Operating profit, as reported (pre-tax) $ 460.5 $ 810.9 $
82.7 $ (359.2 ) $ 994.9 Charges and (credits): Impairment
and other charges 11.3 — 10.2 6.0 27.5 Restructuring and other
severance charges 88.5 27.0 9.1 39.4 164.0 Business combination
transaction and integration costs — — — 101.8 101.8 Change in
accounting estimate 11.8 — 10.1 — 21.9 Purchase price accounting
adjustments - non-amortization related 40.5 — 43.3 (25.6 ) 58.2
Purchase price accounting adjustments - amortization related 139.2
— 12.4 (1.2 ) 150.4 Subtotal 291.3 27.0
85.1 120.4 523.8 Adjusted
Operating profit (loss) 751.8 837.9 167.8
(238.8 ) 1,518.7 Adjusted Depreciation and
amortization 368.0 41.1 51.1 4.1 464.3
Adjusted EBITDA $ 1,119.8 $ 879.0 $ 218.9
$ (234.7 ) $ 1,983.0 Operating profit margin,
as reported 7.8 % 10.3 % 6.5 % 6.6 % Adjusted Operating
profit margin 12.8 % 10.6 % 13.2 % 10.1 % Adjusted EBITDA
margin 19.1 % 11.1 % 17.2 % 13.2 %
Exhibit 11
TECHNIPFMC PLC
AND CONSOLIDATED SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, unaudited)
December
31, 2018 December 31, 2017 Cash and
cash equivalents $ 5,540.0 $ 6,737.4 Short-term debt and current
portion of long-term debt (67.4 ) (77.1 ) Long-term debt, less
current portion (4,124.3 ) (3,777.9 ) Net cash $ 1,348.3 $
2,882.4
Net cash (debt) is a non-GAAP financial measure reflecting cash
and cash equivalents, net of debt. Management uses this non-GAAP
financial measure to evaluate TechnipFMC's capital structure and
financial leverage. Management believes net cash (debt) is a
meaningful financial measure that may also assist investors in
understanding TechnipFMC's financial condition and underlying
trends in its capital structure.
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Investor relationsMatt SeinsheimerVice President Investor
RelationsTel: +1 281 260 3665Email: Matt SeinsheimerPhillip
LindsayDirector Investor Relations (Europe)Tel: +44 (0) 20 3429
3929Email: Phillip Lindsay
Media relationsChristophe BélorgeotSenior Vice President
Corporate EngagementTel: +33 1 47 78 39 92Email: Christophe
BelorgeotDelphine NayralDirector Public RelationsTel: +33 1 47 78
34 83Email: Delphine Nayral