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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| McDermott International Inc | NYSE:MDR | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.7032 | 0 | 01:00:00 |
From Jul 2019 to Jul 2024
McDermott International, Inc. (NYSE: MDR) (“McDermott” or the “Company”) today reported net income from continuing operations of $45.5 million, or $0.19 per diluted share, for the 2010 fourth quarter. The results of the 2010 fourth quarter compare to net income from continuing operations of $73.4 million, or $0.32 per diluted share, in the corresponding period of 2009. Both periods exclude the results of The Babcock & Wilcox Company (“B&W”), which was spun-off to McDermott shareholders on July 30, 2010, as well as the operations of McDermott’s charter fleet business, which is classified as held for sale. Weighted average common shares outstanding on a fully diluted basis were approximately 237.0 million and 234.5 million in the quarters ended December 31, 2010 and December 31, 2009, respectively.
McDermott’s revenues for the 2010 fourth quarter were $539.6 million, compared to $756.8 million in the corresponding period of 2009. The year-over-year decrease was primarily due to lower revenues of $126.6 million in the Asia Pacific segment and $96.2 million in the Middle East segment. The lower revenues in the Asia Pacific segment were due to significant customer-approved change orders that were recorded in the 2010 fourth quarter which, as a result of the added scope, reduced the percentage complete of two major projects and lowered the revenue and income recognized in the period. However, the overriding impact of the change orders is that the contract values have increased and the combined expected profit at completion improved for these projects during the quarter. Within the Middle East segment, the reduced revenues were primarily due to fewer barge days on our major construction vessels as a result of the substantial completion of the Qatar pipeline projects.
The Company’s operating income was $59.3 million in the 2010 fourth quarter, compared to $90.9 million in the 2009 fourth quarter. The year-over-year decrease was primarily due to lower revenues in the Asia Pacific segment and the associated profit impact of the percentage complete reduction discussed above, as well as less activity for the Company’s major construction vessels.
“I am very pleased with McDermott’s operating and financial results for 2010. We had exceptional bookings of $4.2 billion during the year, including almost $2 billion in the fourth quarter, which provides a strong ending backlog and a solid foundation for the future,” said Stephen M. Johnson, President and Chief Executive Officer of McDermott. “During the fourth quarter, our productivity was largely as expected, however the percentage complete on a couple of projects declined as a result of significant scope growth, resulting in lower revenues and profits being recognized for the period as compared to our prior expectations. Nonetheless, the additional work is a positive development, and the overall contract size, as well as the current embedded profit, has increased on these projects.”
The Company’s other expense for the fourth quarter of 2010 was $5.4 million, compared to $5.5 million in the fourth quarter of 2009, which consists primarily of interest income, interest expense and foreign currency translation expenses.
At December 31, 2010, the Company’s backlog was $5.0 billion, compared to $3.6 billion and $3.3 billion at September 30, 2010 and December 31, 2009, respectively.
For the year ended December 31, 2010, McDermott reported from continuing operations revenues of $2.4 billion, operating income of $314.9 million and net income of $236.6 million, or $1.00 per fully diluted share. Included in the full year results are approximately $46 million of impairment and facility closure costs.
Balance Sheet Summary
As of December 31, 2010, McDermott reported total assets of $2.6 billion. Included in this amount was approximately $886.5 million of cash and investments. Net working capital, calculated as current assets less current liabilities, was $420.6 million. Additionally, total equity was approximately $1.5 billion, or 58% of total assets, with total debt of $55.3 million.
Discontinued Operations
For the fourth quarter of 2010, McDermott recorded a net loss from discontinued operations of $0.6 million, compared to net income from discontinued operations of $25.3 million in the corresponding period of 2009. Included in discontinued operations are the results of B&W, which was spun-off to McDermott’s shareholders on July 30, 2010, the charter fleet business, which is held for sale, as well as transaction-related costs.
OTHER INFORMATION
About the Company
McDermott is a leading engineering, procurement, construction and installation (“EPCI”) company focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott’s customers include national and major energy companies. Operating in approximately 20 countries across the Atlantic, Middle East and Asia Pacific, the Company’s integrated resources include more than 15,000 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923. To learn more, please visit McDermott’s website on the Internet at www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release, which are forward-looking and provide other than historical information, involve risks and uncertainties that may impact McDermott’s actual results of operations. These forward-looking statements include statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected profit at completion of projects in our Asia Pacific segment. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous uncertainties and risks, including adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog and changes in the scope or timing of contracts. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott’s annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2010. This news release reflects management’s views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Conference Call to Discuss Fourth Quarter 2010 Earnings Release
Date: Wednesday, March 2, 2011, at 10:00 a.m. ET (9:00 a.m. CT)
Live Webcast: Investor Relations section of Web site at www.mcdermott.com
Replay: Available for 2 weeks in the investor relations section of www.mcdermott.com
McDERMOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Year Ended December 31, December 31,2010
2009
2010
2009
(As adjusted) (As adjusted) (Unaudited) (In thousands) Revenues $ 539,622 $ 756,798 $ 2,403,743 $ 3,281,790 Costs and Expenses: Cost of operations 421,220 614,209 1,842,261 2,781,735 (Gain) loss on asset disposals and impairments – net 190 265 22,220 (914 ) Selling, general and administrative expenses 56,852 50,709 216,763 218,063 Total costs and expenses 478,262 665,183 2,081,244 2,998,884 Equity in Loss of Unconsolidated Affiliates (2,087 ) (760 ) (7,594 ) (3,557 ) Operating Income 59,273 90,855 314,905 279,349 Other Income (Expense): Interest income (expense) – net 443 (1,263 ) (1,089 ) 6,021 Other income (expense) – net (5,834 ) (4,248 ) (10,022 ) (15,257 ) Total Other Income (Expense) (5,391 ) (5,511 ) (11,111 ) (9,236 ) Income from continuing operations before provision for income taxes and noncontrolling interest 53,882 85,344 303,794 270,113 Provision for Income Taxes 5,953 16,455 41,182 60,561 Income from continuing operations before noncontrolling interest 47,929 68,889 262,612 209,552 Income (loss) from discontinued operations, net of tax (592 ) 25,343 (34,900 ) 180,898 Net Income 47,337 94,232 227,712 390,450 Less: Net income attributable to noncontrolling interests (2,449 ) 4,470 (26,046 ) (3,394 ) Net Income Attributable to McDermott International, Inc. $ 44,888 $ 98,702 $ 201,666 $ 387,056
McDERMOTT INTERNATIONAL, INC.
EARNINGS PER SHARE COMPUTATION
Three Months Ended Year Ended December 31, December 31,2010
2009
2010
2009
(Unaudited) (In thousands, except share and per share amounts) Income from continuing operations less noncontrolling interest $ 45,480 $ 73,359 $ 236,566 $ 206,158 Income (loss) from discontinued operations, net of tax (592 ) 25,343 (34,900 ) 180,898 Net Income Attributable to McDermott, Inc. $ 44,888 $ 98,702 $ 201,666 $ 387,056 Weighted average common shares (basic) 233,351,424 230,306,488 232,173,362 229,471,020 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 3,688,702 4,194,198 3,448,667 4,155,856 Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards 237,040,126 234,500,686 235,622,029 233,626,876Basic earnings per share:
Income from continuing operations less noncontrolling interest 0.20 0.32 1.02 0.90 Income (loss) from discontinued operations, net of tax - 0.11 (0.15 ) 0.79 Net Income 0.19 0.43 0.87 1.69 Diluted earnings per share: Income from continuing operations less noncontrolling interest 0.19 0.32 1.00 0.88 Income (loss) from discontinued operations, net of tax - 0.11 (0.15 ) 0.78 Net Income 0.19 0.43 0.85 1.66SUPPLEMENTARY DATA (1)
Three Months Ended Year Ended December 31, December 31, 2010 2009 2010 2009 (Unaudited) (In thousands) Pension and post retirement expense $ 5,532 $ 14,975 $ 21,814 $ 27,352 Depreciation & amortization expense $ 19,035 $ 20,153 $ 76,452 79,867 Capital expenditures $ 59,321 $ 47,219 $ 186,862 $ 186,518 Backlog $ 5,038,988 $ 3,260,834 $ 5,038,988 $ 3,260,834(1) Above metrics for all periods represents McDermott’s continuing operations only and thus excludes B&W and the charter fleet business.
McDERMOTT INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31, 2010 2009 (In thousands) Current Assets: Cash and cash equivalents $ 403,463 $ 899,270 Restricted cash and cash equivalents 197,861 69,920 Investments 209,463 12 Accounts receivable – trade, net 323,497 642,995 Accounts and notes receivable – unconsolidated affiliates 2,960 5,806 Accounts receivable – other 25,487 68,035 Contracts in progress 65,853 400,831 Inventories 1,675 101,494 Deferred income taxes 10,323 100,828 Assets held for sale 10,161-
Other current assets 34,895 68,730 Total Current Assets 1,285,638 2,357,921 Property, Plant and Equipment 1,720,040 2,608,740 Less: accumulated depreciation 804,471 1,271,135 Net Property, Plant and Equipment 915,5691,337,605 Assets Held for Sale 77,150
-
Investments 75,742 228,706 Goodwill 41,202 306,497 Deferred Income Taxes-
275,567 Investments in Unconsolidated Affiliates 45,016 86,932 Other Assets 158,371 255,882 TOTAL $ 2,598,688 $ 4,849,110
McDERMOTT INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS (continued)
LIABILITIES AND EQUITY
December 31, 2010 2009 (In thousands, except share amounts) Current Liabilities: Notes payable and current maturities of long-term debt $ 8,547 $ 16,270 Accounts payable 252,974 471,858 Accrued employee benefits 80,585 217,178 Accrued pension liability – current portion 8,797 173,271 Accrued liabilities – other 107,511 155,773 Accrued contract cost 89,888 103,041 Advance billings on contracts 250,053 689,334 Deferred Income Tax 12,849 4,735 Income taxes 32,851 59,294 Accrued warranty 50 118,278 Liabilities associated with assets held for sale 20,902-
Total Current Liabilities 865,007 2,009,032 Long-Term Debt 46,748 56,714 Accumulated Postretirement Benefit Obligation 5,258 105,605 Self-Insurance 35,655 87,222 Pension Liability 52,831 610,166 Other Liabilities 80,922 147,271 Commitments and Contingencies Stockholders’ Equity:Common stock, par value $1.00 per share, authorized 400,000,000 shares; issued 240,791,473 and 236,919,404 shares at December 31, 2010 and December 31, 2009, respectively
240,791 236,919 Capital in excess of par value 1,357,316 1,300,998 Retained earnings 100,373 951,647 Treasury stock at cost, 6,906,262 and 6,168,705 shares at December 31, 2010 and December 31, 2009, respectively (85,735 ) (69,370 ) Accumulated other comprehensive loss (163,717 ) (612,997 ) Stockholders’ Equity – McDermott International, Inc. 1,449,028 1,807,197 Noncontrolling interest 63,239 25,903 Total Equity 1,512,267 1,833,100 TOTAL $ 2,598,688 $ 4,849,110
McDERMOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,2010
2009
(In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 227,712 $ 390,450 (Income) loss from discontinued operations, net of tax 34,900 (180,898 ) Income from continuing operations 262,612 209,552 Non-cash items included in net income: Depreciation and amortization 76,452 79,867 Loss of investees 7,594 3,557 (Gains) losses on asset disposals and impairments – net 22,220 (914 ) Provision for deferred taxes 1,830 5,252 Amortization of pension and postretirement costs 21,814 27,352 Tax expense (benefits) from stock-based compensation (1,393 ) 912 Other 9,344 44,226 Changes in assets and liabilities, net of effects from acquisitions: Accounts receivable (6,457 ) 25,871 Net contracts in progress and advance billings on contracts 182,472 (295,110 ) Accounts payable (38,536 ) (8,054 ) Income taxes 84,269 5,882 Accrued and other current liabilities 40,110 (57,311 ) Pension liability, and accrued postretirement and employee benefits (106,338 ) 41,101 Other (171,666 ) 103,450 Net cash provided by (used in) operating activities – continuing operations 384,327 185,633 CASH FLOWS FROM INVESTING ACTIVITIES: (Increase) decrease in restricted cash and cash equivalents (142,853 ) (10,718 ) Purchases of property, plant and equipment (186,862 ) (186,518 ) Net (increase) decrease of short and long-term investments (127,526 ) 177,137 Proceeds from asset disposals 4,824 2,761 Investments in unconsolidated affiliate (32,550 ) (13,484 ) Acquisition of businesses, net of cash acquired (1,954 ) (28,293 ) Other-
(134 ) Net cash used in investing activities – continuing operations (486,921 ) (59,249 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payment of debt (8,540 ) (4,106 ) Debt issuance costs (17,881 ) (105 ) Issuance of common stock 1,040 1,042 Tax (expense) benefits from stock-based compensation 1,393 (912 ) Cash contribution from The Babcock & Wilcox Company 100,000-
Other 80 (127 ) Net cash provided by (used in) financing activities – continuing operations 76,092 (4,208 ) Effects of exchange rate changes on cash 498 1,096 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (26,004 ) 123,372 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 429,467 306,195 CASH AND CASH EQUIVALENTS AT END OF PERIOD – CONTINUING OPERATIONS $ 403,463 $ 429,467 CASH FLOWS FROM DISCONTINUED OPERATIONS: Net cash provided by (used in) operating activities $ (44,153 ) $ 232,441 Net cash used in investing activities (65,084 ) (51,598 ) Net cash provided by (used in) financing activities (109,600 ) (1,728 ) Effects of exchange rate changes on cash (578 ) 10,234 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (219,415 ) 189,349 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 469,803 280,454 Transfer of Cash Attributable to B&W 250,388-
CASH AND CASH EQUIVALENTS AT END OF PERIOD $-
$ 469,803
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