Chart Q4 2019 Earnings Report
Key Takeaways
Chart Industries reported a strong fourth quarter in 2019, contributing to record full-year orders, sales, and backlog. The company's performance was driven by significant demand for cryogenic equipment and solutions in both global infrastructure and specialty markets. Looking ahead, Chart anticipates continued order strength and expects 2020 to be another record year.
Full year record orders of $1.413 billion, a 23.7% increase over full year 2018.
Record backlog ($762.3 million), up 34.2% from the fourth quarter of 2018.
Received engineering release in December 2019 for a Big LNG project for which orders are expected to be received in 2020.
Full year reported earnings per diluted share $1.32 included substantial transaction, integration and restructuring costs, resulting in full year record adjusted diluted EPS of $2.52.
Chart
Chart
Chart Revenue by Segment
Forward Guidance
Chart Industries anticipates a positive impact on 2020 from the fourth quarter of 2019, expecting revenue between $1.645 billion and $1.71 billion, and adjusted diluted EPS in the range of $4.90 to $5.50 per share. The 2020 outlook is weighted to the second half of the year for both revenue and earnings.
Positive Outlook
- Revenue outlook is $1.645 billion to $1.71 billion.
- Adjusted Diluted EPS expected to be in the range of $4.90 to $5.50 per share.
- Increase is driven from the timing shifts of fourth quarter 2019 orders and revenue.
- 2020 tax rate is assumed at 20%.
- Free cash flow outlook is $180 million to $210 million.
Challenges Ahead
- Revenue shortfall of $30 million to prior guidance, driven by timing of fourth quarter orders from earlier in the quarter to December or into the first quarter of 2020.
- Inefficiencies from ramp up costs associated with our Big LNG 2020 manufacturing activity and the capacity expansion for trailers and fueling stations in D&S East.
- First quarter of the year is expected to be the lowest quarter.
- Calcasieu Pass revenue recognition will primarily be in the third and fourth quarters.
- Big LNG projects are not included in the outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income