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Dec 31, 2020
Chart Q4 2020 Earnings Report
Chart Industries reported fourth quarter and full year results for 2020.
Key Takeaways
Chart Industries reported a strong fourth quarter of 2020, with record orders, sales, gross margin, and free cash flow, contributing to multiple full year records. The company's strategic investments and acquisitions position it for expected double digit revenue growth in 2021.
Full year 2020 records include backlog of $810 million, gross margin dollars of $332 million, and operating income dollars of $108 million.
Booked orders with 65 new customers in the fourth quarter 2020, resulting in record full year 2020 new customers of 472.
Generated $60.2 million of net cash provided by operating activities resulting in $49.6 million of free cash flow.
Fourth quarter 2020 reported diluted earnings per share of $1.28, contributing to full year 2020 reported earnings per diluted share of $2.22; adjusted diluted EPS for the fourth quarter 2020 was $1.27 and full year 2020 adjusted diluted EPS was $2.73.
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Forward Guidance
Full year 2021 sales are expected to be approximately $1.32 billion to $1.38 billion and full year non-diluted adjusted earnings per share to be approximately $3.50 to $4.00.
Positive Outlook
- Full year 2021 sales are expected to be approximately $1.32 billion to $1.38 billion, inclusive of $21 million of Venture Global’s Calcasieu Pass revenue in the first quarter of 2021 as well as $30 million of 2021 revenue from the acquisition of Cryo Technologies.
- This is an increase over the prior full year 2021 sales guidance of $1.26 billion to $1.335 billion, resulting from the strong fourth quarter 2020 order book and commercial opportunities increasing from our inorganic investments and acquisitions completed in the fourth quarter 2020 and year-to-date 2021.
- We expect fueling stations and HLNG vehicle tanks for onboard heavy duty trucks to continue at or above 2020 levels throughout 2021.
- We anticipate full year non-diluted adjusted earnings per share to be approximately $3.50 to $4.00 on 35.5 million weighted average shares outstanding, up from our previous estimate of $3.10 to $3.45 per share.
- Our assumed effective tax rate is 18% for the full year 2021.
Challenges Ahead
- There is no additional Big LNG revenue included in our outlook although we believe new orders will be received during the year.
- There are many moving pieces that contribute to a range, and we have provided a walk to the low end of the range by segment and major market category in the supplemental presentation.
- Our pre-COVID-19 typical year would have low first and fourth quarters, with the second and third typically the highest quarters in the year.
- We expect the first half of 2021 to be lower than the second half of 2021 based on the lead-time of our backlog.
- We expect capital expenditure spend to be in the $40 million to $50 million range, driven by organic investments in our high growth areas inclusive of expanding product capabilities in our Teddy Trailer and Tank facility, completion of our repair and service facility in South Carolina, USA, R&D new product development for hydrogen and continued targeted lease fleet expansion.