TechnipFMC plc (NYSE: FTI) (Paris: FTI) today reported third quarter 2019 results.

 

Total Company revenue was $3,335.1 million. Net income was $21.8 million, or $0.05 per diluted share. These results included after-tax charges and credits totaling $32.6 million of expense, or $0.07 per diluted share. Adjusted net income was $54.4 million, or $0.12 per diluted share.

 

Adjusted EBITDA, which excludes pre-tax charges and credits, was $379.2 million; adjusted EBITDA margin was 11.4 percent (Exhibit 9).

 

Other significant pre-tax items impacting the quarter, for which we do not provide guidance, included the following:

 
 
    -- $53.2 million of foreign exchange losses included in corporate expense, or $0.09 per diluted share on an after-tax basis; and 
 
    -- $99.1 million of increased liability payable to joint venture partners included in interest expense, or $0.22 per diluted share on an after-tax basis. 
 

Summary Financial Statements - Third Quarter 2019

 

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

 
Three Months Ended          September 30, September 30, Change 
(In millions, except        2019          2018 
per share amounts) 
Revenue                     $3,335.1      $3,143.8      6.1% 
Net income                  $21.8         $136.9        (84.1%) 
Diluted earnings per share  $0.05         $0.30         (83.3%) 
Adjusted EBITDA             $379.2        $430.5        (11.9%) 
Adjusted EBITDA margin      11.4%         13.7%         (230 bps) 
Adjusted net income         $54.4         $139.8        (61.1%) 
Adjusted diluted earnings   $0.12         $0.31         (61.3%) 
per share 
Inbound orders              $2,610.6      $3,647.2      (28.4%) 
Backlog                     $24,115.3     $15,178.0     58.9% 
 
 

1iEPCIT refers to TechnipFMC's integrated engineering, procurement, construction and installation contracts.

 

Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated, "In the third quarter, we announced a transformational move to create two diversified, pure-play market leaders. The separation will enable both companies to benefit from dedicated focus of management, resources and capital while highlighting the unique value proposition and differentiated investment appeal of each company. We believe strongly that providing independence for these two world-class, high-performing businesses will unlock further opportunities and create value for all stakeholders."

 

Pferdehirt continued, "Subsea orders of $1.5 billion reflect continued strength in integrated project awards, increased services activity and the adoption of new technologies. We announced several new iEPCIT projects, including the Pyxis project, the first call-off of our recently executed iEPCIT frame agreement with Woodside. Subsea services activity continued to benefit from the industry's largest installed base, and we remain on track for double-digit growth for the full year. In the quarter, we also received the industry's first award of a 20K high-pressure, high-temperature system for LLOG's Shenandoah project in the Gulf of Mexico."

 

"Our strong Subsea order growth continues to be driven by our integrated commercial model. Inbound for the first nine months of the year was $6.8 billion, reflecting a book-to-bill of 1.7. We continue to believe that our order growth for the full year will exceed 50 percent - the highest annual growth rate in a decade. Our anticipated growth is more than double the expectation for the total subsea market."

 

"Operating performance in our other segments reflected diverging trends. Surface Technologies' operating margin weakened sequentially due to reduced activity and more competitive pricing in North America, offset in part by continued strength in international markets. Onshore/Offshore again posted robust operating results, benefiting from continued strength in execution on major projects."

 

Pferdehirt added, "Five LNG projects over the past five months have either been sanctioned or moved closer to final investment decision in 2020, including the Arctic LNG 2 and Rovuma LNG projects that were awarded to TechnipFMC and our partners. Rovuma builds upon our first mover advantage and early investment in Mozambique, where we are already executing the floating LNG scope on the Coral project. The award also serves as further confirmation of our leadership in LNG and our strong capabilities in the delivery of remote projects."

 

Pferdehirt concluded, "I want to recognize the dedication, commitment and demonstrated results of the women and men of TechnipFMC that have enabled us to take this next step to further reshape the industry. Thanks to their continued effort, we are making solid progress towards completing our planned separation in the first half of 2020."

 

Operational and Financial Highlights - Third Quarter 2019

 

Subsea

 

Financial Highlights

 

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

 
Three Months Ended      September 30, September 30, Change 
(In millions)           2019          2018 
Revenue                 $1,342.2      $1,209.1      11.0% 
Operating profit        $45.5         $79.7         (42.9%) 
Adjusted EBITDA         $139.1        $188.5        (26.2%) 
Adjusted EBITDA margin  10.4%         15.6%         (520 bps) 
Inbound orders          $1,509.9      $1,553.9      (2.8%) 
Backlog                 $8,655.8      $6,343.4      36.5% 
 
 

Subsea reported third quarter revenue of $1,342.2 million, up 11 percent from the prior year. Revenue increased due to higher project-related activity and growth in services. Revenue growth in the quarter was negatively impacted by the timing of key project milestones, shifting recognition of some anticipated revenue to future periods. The increase in services revenue was driven by higher installation, well intervention and asset refurbishment activities.

 

Subsea reported operating profit of $45.5 million; adjusted EBITDA was $139.1 million. Operating profit decreased from the prior year due to the impact of more competitively priced backlog and a higher proportion of projects in early phases. These same factors drove the year-over-year decrease in adjusted EBITDA; adjusted EBITDA margin decreased 520 basis points to 10.4 percent.

 

Vessel utilization rate for the third quarter was 70 percent, up from 69 percent in the second quarter and 69 percent in the prior-year quarter.

 

Third Quarter Subsea Highlights

 
 
    -- Equinor Peregrino Project (Brazil) 
 

Successful completion of Deep Blue campaign.

 
 
    -- Shell BC-10 (Brazil) 
 

Successful installation of Subsea 2.0T compact manifold.

 
 
    -- Enquest Scolty (United Kingdom) 
 

Offshore campaign completed ahead of schedule; builds upon previous track record for project delivery with Enquest.

 
 
    -- Wintershall DEA Dvalin (Norway) 
 

Offshore installation completed; subsea field to be tied back to the Heidrun platform.

 

Subsea inbound orders for the quarter were $1,509.9 million, resulting in a book-to-bill of 1.1. The following awards were announced subsequent to our second quarter earnings release:

 
 
    -- Neptune Energy Seagull iEPCIT Project (North Sea) 
 

Significant* iEPCIT contract from Neptune Energy for the Seagull project. The contract covers the manufacturing, delivery and installation of subsea equipment including production and water wash pipelines, umbilicals, subsea structures and control systems.

 

* A "significant" award ranges between $75 million and $250 million.

 
 
    -- Shell PowerNap iEPCIT Project (Gulf of Mexico) 
 

Significant* iEPCIT contract from Shell for the PowerNap project. The contract covers the design, manufacturing and installation of subsea hardware, including subsea tree systems, subsea distribution controls, topside controls, flying leads and connectors for three wells, in addition to the supply of 20 miles of production umbilical and flowlines.

 

* A "significant" award ranges between $75 million and $250 million.

 
 
    -- Woodside Pyxis iEPCIT Project (Australia) 
 

Significant* iEPCIT contract from Woodside for the development of the Pyxis and Xena fields. The contract covers the design, manufacturing, delivery and installation of subsea equipment including subsea production system, flexible flowlines and umbilicals.

 

* A "significant" award ranges between $75 million and $250 million.

 
 
    -- Shell Perdido Phase 2 iEPCIT Project (Gulf of Mexico) 
 

iEPCIT contract from Shell for the Perdido Phase 2 project. The contract covers the delivery and installation of subsea equipment, including flexible flowlines, flexible jumpers, steel flying leads and electrical flying leads, and will utilize the Subsea 2.0T In-Line Compact Manifold.

 

Note: this inbound order was included in the Company's second quarter financial results.

 
Subsea                     Consolidated backlog* Non-consolidated backlog** 
Estimated Backlog 
Scheduling 
as of September 30, 2019 
(In millions) 
2019 (3 months)            $1,425.6              $40.5 
2020                       $4,251.0              $138.3 
2021 and beyond            $2,979.2              $663.3 
Total                      $8,655.8              $842.1 
* Backlog does 
not capture 
all revenue 
potential for subsea 
services. 
** Non-consolidated 
backlog 
reflects the 
proportional share of 
backlog related to 
joint ventures that is 
not consolidated due 
to our minority ownership 
position. 
 
 

Onshore/Offshore

 

Financial Highlights

 

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

 
Three Months Ended      September 30, September 30, Change 
(In millions)           2019          2018 
Revenue                 $1,596.3      $1,532.5      4.2% 
Operating profit        $284.6        $243.4        16.9% 
Adjusted EBITDA         $304.2        $227.3        33.8% 
Adjusted EBITDA margin  19.1%         14.8%         430 bps 
Inbound orders          $696.0        $1,666.1      (58.2%) 
Backlog                 $15,030.8     $8,378.8      79.4% 
 
 

Onshore/Offshore reported third quarter revenue of $1,596.3 million. Revenue increased 4.2 percent from the prior-year quarter, primarily driven by higher activity on recent awards in the downstream, petrochemical and offshore sectors as well as first contribution from Arctic LNG 2. The increase was partially offset by lower activity on Yamal LNG as the project nears completion.

 

Onshore/Offshore reported operating profit of $284.6 million; adjusted EBITDA was $304.2 million. Operating profit increased 16.9 percent versus the prior-year quarter. Operating results in the period benefited primarily from continued strength in execution on Yamal LNG. These same factors drove the year-over-year increase in adjusted EBITDA; adjusted EBITDA margin increased 430 basis points from the prior-year results to 19.1 percent.

 

Third Quarter Onshore/Offshore Highlights

 
 
    -- ENI Coral FLNG (Mozambique) 
 

More than 75 percent of the topsides have been delivered.

 
 
    -- Energean Karish Gas FPSO (Israel) 
 

Hull was successfully undocked in September, a critical milestone ahead of sail away to Singapore.

 
 
    -- Neste Renewable Products Refinery Expansion (Singapore) 
 

Foundation stone ceremony took place for refinery expansion as we support Neste's renewable products (biofuels) growth strategy.

 

Onshore/Offshore inbound orders for the quarter were $696 million, resulting in a book-to-bill of 0.4. The inbound reflects the strength of our Process Technology business as we continue to enter into new strategic agreements:

 
 
    -- EPICEROL® Technology License Agreement with Meghmani Finechem (India) 
 

The license agreement marks TechnipFMC's first 'green' epichlorohydrin (ECH) technology license in India. EPICEROL® offers a cost-effective process to produce ECH from glycerol, with a reduced carbon footprint compared to traditional propylene-based processes.

 

The following award was announced subsequent to our second quarter earnings release:

 
 
    -- Mozambique Rovuma Venture S.p.A. Rovuma LNG Project (Mozambique) 
 

Engineering, Procurement and Construction (EPC) contract for the Rovuma LNG Project. TechnipFMC, in consortium with our partners JGC Corporation and Fluor Corporation, will construct two natural gas liquefaction trains, with a total LNG nameplate capacity of 15.2 million tons per annum, as well as associated onshore facilities.

 

Note: This award will be reflected in financial results once full notice to proceed has been issued.

 
Onshore/Offshore        Consolidated backlog Non-consolidated backlog* 
Estimated Backlog 
Scheduling 
as of September 
30, 2019 
(In millions) 
2019 (3 months)         $2,084.5             $194.5 
2020                    $5,254.4             $744.3 
2021 and beyond         $7,691.9             $1,693.2 
Total                   $15,030.8            $2,632.0 
* Non-consolidated 
backlog 
reflects the 
proportional 
share of backlog 
related to 
joint ventures that is 
not consolidated due 
to our minority 
ownership 
position. 
 
 

Surface Technologies

 

Financial Highlights

 

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

 
Three Months Ended      September 30, 2019 September 30, 2018 Change 
(In millions) 
Revenue                 $396.6             $402.2             (1.4%) 
Operating profit        $6.1               $51.9              (88.2%) 
Adjusted EBITDA         $44.4              $72.5              (38.8%) 
Adjusted EBITDA margin  11.2%              18.0%              (680 bps) 
Inbound orders          $404.7             $427.2             (5.3%) 
Backlog                 $428.7             $455.8             (5.9%) 
 
 

Surface Technologies reported third quarter revenue of $396.6 million, a decrease of 1.4 percent from the prior-year quarter. The revenue decline was driven mainly by lower sales in North America resulting from further reductions in drilling and completion activity, largely offset by revenue growth in international markets. Revenue outside North America represents more than 50 percent of the total segment, with activity now expected to reach low double-digit growth for the full year.

 

Surface Technologies reported operating profit of $6.1 million; adjusted EBITDA was $44.4 million with a margin of 11.2 percent, a decrease of 680 basis points from the prior-year quarter. Operating profit decreased versus the prior-year quarter primarily due to further declines in volume and pricing in North America. These same factors drove the year-over-year decrease in adjusted EBITDA.

 

Inbound orders for the quarter were $404.7 million. Backlog decreased 5.9 percent versus the prior-year quarter to $428.7 million. Given the short-cycle nature of the business, orders are generally converted into revenue within twelve months.

 

Third Quarter Surface Technologies Award Highlights

 
 
    -- ADNOC (United Arab Emirates) 
 

Award for various wellhead and tree configurations for both onshore and offshore oil and gas wells.

 
 
    -- Tatweer Petroleum (Bahrain) 
 

Award for wellheads, trees and control panels for onshore gas wells over five years, with first call-off made in September.

 
 
    -- Saipem (Mauritania and Senegal) 
 

Award to Loading Systems for the offshore marine loading arms scope on the BP Tortue project.

 

Corporate and Other Items

 

Corporate expense in the third quarter was $128.8 million. This includes charges and credits totaling $18.2 million of expense. Excluding charges and credits, corporate expense was $110.6 million which included $53.2 million of foreign exchange losses mainly due to the devaluation of unhedged currencies, primarily the Angolan Kwanza.

 

Net interest expense was $116.5 million in the quarter, which included an increase in the liability payable to joint venture partners of $99.1 million.

 

The Company recorded a tax provision in the quarter of $65.3 million. The effective tax rate year-to-date was 33.6 percent, including the impact of discrete items.

 

Total depreciation and amortization for the quarter was $141.6 million.

 

Cash flow from operations in the quarter was $92 million. The Company ended the period with cash and cash equivalents of $4,504.4 million; net cash was $596.2 million.

 

2019 Financial Guidance1

 

Updates to the Company's full-year guidance for 2019 are included in the revised table below and detailed on the following page:

 
2019 
Guidance 
*Updated 
October 
23, 
2019 
Subsea          Onshore/Offshore                                                                                                                  Surface Technologies 
Revenue         Revenue in a range of $6.0 - 6.3 billion                                                                                          Revenue in a range of $1.6 - 1.7 billion 
in 
a range 
of 
$5.6 - 
5.8 
billion 
EBITDA          EBITDA margin at least 16.5% (excluding amortization related impact of purchase price accounting, and other charges and credits)  EBITDA margin at least 10%* (excluding amortization related impact of purchase price accounting, and other charges and credits) 
margin 
at least 
11.5% 
(excluding 
amortization 
related 
impact 
of 
purchase 
price 
accounting, 
and 
other 
charges 
and 
credits) 
TechnipFMC 
Corporate 
expense, 
net* $210 
- 
215 
million 
for 
the full 
year 
(excluding 
the 
impact 
of 
foreign 
currency 
fluctuations) 
Net 
interest 
expense 
$30 - 40 
million 
for 
the full 
year 
(excluding 
the 
impact 
of 
revaluation 
of 
partners' 
mandatorily 
redeemable 
financial 
liability) 
Tax rate 
26 
- 30% 
for 
the full 
year 
Capital 
expenditures 
approximately 
$350 
million 
for 
the full 
year 
Cash 
flow 
from 
operating 
activities 
positive 
for the 
full 
year 
 
 

__________________________

 

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' mandatorily redeemable financial liability), and tax rate 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.

 

Updates to the Company's full-year guidance for 2019 are detailed below:

 
 
    -- Surface Technologies EBITDA margin of at least 10% (excluding amortization related impact of purchase price accounting, and other charges and credits); EBITDA margin guidance has been decreased from the previous guidance of at least 12%. 
 
    -- Corporate expense, net of $210 - 215 million for the full year (excluding the impact of foreign currency fluctuations); corporate expense, net has been increased from the previous guidance of $160 - 170 million. 
 

Teleconference

 

The Company will host a teleconference on Thursday, October 24, 2019 to discuss the third quarter 2019 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.

 

TechnipFMC utilizes its website www.TechnipFMC.com as a channel of distribution of material company information. To learn more about us and how we are enhancing the performance of the world's energy industry, go to www.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:

 
 
    -- risks associated with our ability to consummate our proposed separation and spin-off, and our ability to achieve the intended benefits and synergies of the transaction; 
 
    -- 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 capital 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 existing or future environmental 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 "distributable profits", shareholder approval of certain capital structure decisions, and the risk that we may not be able 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; 
 
    -- downgrade in the ratings of our debt could restrict our ability to access the debt capital markets; 
 
    -- the outcome of uninsured claims and litigation 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 actual or perceived failure to comply 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; 
 
    -- 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; 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.

 

Exhibit 1

 

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(In millions, except per share data)

 
                 (Unaudited) 
                 Three Months Ended                            Nine Months Ended 
                 September 30,                                 September 30, 
                 2019            2018                          2019            2018 
Revenue          $ 3,335.1       $ 3,143.8                     $ 9,682.3       $ 9,229.9 
Costs and        3,095.9         2,863.7                       8,994.7         8,527.2 
expenses 
                 239.2           280.1                         687.6           702.7 
Other (expense)  (31.8     )     26.8                          (102.5    )     58.0 
income, net 
Income before    207.4           306.9                         585.1           760.7 
net interest 
expense and 
income 
taxes 
Net interest     (116.5    )     (106.0    )                   (345.3    )     (244.3    ) 
expense 
Income before    90.9            200.9                         239.8           516.4 
income taxes 
Provision for    65.3            66.7                          80.7            180.7 
income taxes 
Net income       25.6            134.2                         159.1           335.7 
Net (income)     (3.8      )     2.7                           (19.4     )     2.0 
loss 
attributable 
to 
noncontrolling 
interests 
Net              $ 21.8          $ 136.9                       $ 139.7         $ 337.7 
income 
attributable 
to TechnipFMC 
plc 
Earnings per 
share 
attributable 
to TechnipFMC 
plc: 
Basic            $ 0.05          $ 0.30                        $ 0.31          $ 0.73 
Diluted          $ 0.05          $ 0.30                        $ 0.31          $ 0.73 
Weighted 
average 
shares 
outstanding: 
Basic            446.9           454.5                         448.6           460.0 
Diluted          451.9           459.0                         453.5           464.0 
Cash dividends   $ 0.13          $ 0.13                        $ 0.39          $ 0.39 
declared 
per share 
 
 

Exhibit 2

 

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESBUSINESS SEGMENT DATA(In millions)

 
                   (Unaudited) 
                   Three Months Ended                            Nine Months Ended 
                   September 30,                                 September 30, 
                   2019            2018                          2019            2018 
Revenue 
Subsea             $ 1,342.2       $ 1,209.1                     $ 4,036.2       $ 3,606.7 
Onshore/Offshore   1,596.3         1,532.5                       4,436.4         4,448.3 
Surface            396.6           402.2                         1,209.7         1,174.9 
Technologies 
                   $ 3,335.1       $ 3,143.8                     $ 9,682.3       $ 9,229.9 
Income before 
income taxes 
Segment 
operating 
profit 
Subsea             $ 45.5          $ 79.7                        $ 190.1         $ 210.0 
Onshore/Offshore   284.6           243.4                         714.3           617.6 
Surface            6.1             51.9                          42.1            134.0 
Technologies 
Total segment      336.2           375.0                         946.5           961.6 
operating 
profit 
Corporate items 
Corporate expense  (128.8    )     (68.1     )                   (361.4    )     (200.9    ) 
(1) 
Net interest       (116.5    )     (106.0    )                   (345.3    )     (244.3    ) 
expense 
Total corporate    (245.3    )     (174.1    )                   (706.7    )     (445.2    ) 
items 
Net income         $ 90.9          $ 200.9                       $ 239.8         $ 516.4 
before 
income taxes (2) 
 
 

(1) Corporate expense primarily includes corporate staff expenses, legal reserve, share-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, merger transaction and integration expenses and separation expenses.

 

(2) Includes amounts attributable to noncontrolling interests.

 

Exhibit 3

 

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESBUSINESS SEGMENT DATA(In millions, unaudited)

 
                  Three Months Ended                            Nine Months Ended 
Inbound           September 30,                                 September 30, 
Orders(1) 
                  2019            2018                          2019             2018 
Subsea            $ 1,509.9       $ 1,553.9                     $ 6,820.3        $ 4,297.9 
Onshore/Offshore  696.0           1,666.1                       11,966.0         5,816.5 
Surface           404.7           427.2                         1,188.3          1,251.5 
Technologies 
Total inbound     $ 2,610.6       $ 3,647.2                     $ 19,974.6       $ 11,365.9 
orders 
 
 
Order Backlog(2)      September 30, 
                      2019             2018 
Subsea                $ 8,655.8        $ 6,343.4 
Onshore/Offshore      15,030.8         8,378.8 
Surface Technologies  428.7            455.8 
Total order backlog   $ 24,115.3       $ 15,178.0 
 
 

(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 SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In millions)

 
                (Unaudited) 
                September 30,2019             December 31,2018 
Cash and cash   $ 4,504.4                     $ 5,540.0 
equivalents 
Trade           2,150.0                       2,469.7 
receivables, 
net 
Contract        1,503.0                       1,295.0 
assets 
Inventories,    1,411.9                       1,251.2 
net 
Other current   1,460.0                       1,225.3 
assets 
Total current   11,029.3                      11,781.2 
assets 
Property,       3,217.1                       3,259.8 
plant 
and 
equipment, 
net 
Goodwill        7,577.3                       7,607.6 
Intangible      1,105.6                       1,176.7 
assets, 
net 
Other assets    2,011.4                       959.2 
Total assets    $ 24,940.7                    $ 24,784.5 
Short-term      $ 299.4                       $ 67.4 
debt 
and current 
portion of 
long-term 
debt 
Accounts        2,556.4                       2,600.3 
payable, 
trade 
Contract        4,122.5                       4,085.1 
liabilities 
Other current   2,371.9                       2,386.6 
liabilities 
Total current   9,350.2                       9,139.4 
liabilities 
Long-term       3,608.8                       4,124.3 
debt, 
less 
current 
portion 
Other           1,659.3                       1,093.4 
liabilities 
Redeemable      38.5                          38.5 
noncontrolling 
interest 
TechnipFMC      10,239.0                      10,357.6 
plc 
stockholders' 
equity 
Noncontrolling  44.9                          31.3 
interests 
Total           $ 24,940.7                    $ 24,784.5 
liabilities 
and equity 
 
 

Exhibit 5

 

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)

 
                               (Unaudited) 
                               Nine Months Ended 
                               September 30, 
                               2019            2018 
Cash provided (required) 
by operating activities 
Net income                     $ 159.1         $ 335.7 
Adjustments to reconcile net 
income to cash provided 
(required) by operating 
activities 
Depreciation                   282.5           276.3 
Amortization                   96.0            136.2 
Impairments                    2.4             14.1 
Employee benefit plan          54.2            27.1 
and share-based 
compensation costs 
Deferred income tax provision  (102.5    )     (44.6     ) 
(benefit), net 
Unrealized loss on derivative  108.2           19.0 
instruments 
and foreign exchange 
Income from equity             (49.6     )     (67.3     ) 
affiliates, 
net of dividends received 
Other                          390.8           58.9 
Changes in operating assets 
and liabilities, 
net of effects of 
acquisitions 
Trade receivables, net         (23.0     )     (25.9     ) 
and contract assets 
Inventories, net               (190.6    )     (259.6    ) 
Accounts payable, trade        12.3            (938.2    ) 
Contract liabilities           115.1           (18.6     ) 
Income taxes payable           (82.6     )     (91.8     ) 
(receivable), net 
Other current assets           (519.4    )     416.6 
and liabilities, net 
Other noncurrent assets        34.6            (182.6    ) 
and liabilities, net 
Cash provided (required)       287.5           (344.7    ) 
by operating activities 
Cash provided (required) 
by investing activities 
Capital expenditures           (368.4    )     (255.2    ) 
Payment to acquire             (59.7     )     - 
debt securities 
Proceeds from sale             18.9            - 
of debt securities 
Acquisitions, net              -               (103.4    ) 
of cash acquired 
Cash divested from             -               (7.5      ) 
deconsolidation 
Proceeds from sale of assets   5.6             7.9 
Proceeds from repayment of     46.4            - 
advance to joint venture 
Cash required by investing     (357.2    )     (358.2    ) 
activities 
Cash required by financing 
activities 
Net decrease in short-term     (28.5     )     (29.5     ) 
debt 
Net (decrease) increase        (255.5    )     309.3 
in commercial paper 
Proceeds from issuance         96.2            2.5 
of long-term debt 
Purchase of ordinary shares    (92.7     )     (384.2    ) 
Dividends paid                 (174.7    )     (179.2    ) 
Settlements of mandatorily     (443.7    )     (124.2    ) 
redeemable 
financial liability 
Other                          -               2.3 
Cash required by financing     (898.9    )     (403.0    ) 
activities 
Effect of changes in           (67.0     )     (78.2     ) 
foreign exchange 
rates on cash and 
cash equivalents 
Decrease in cash and           (1,035.6  )     (1,184.1  ) 
cash equivalents 
Cash and cash equivalents,     5,540.0         6,737.4 
beginning of period 
Cash and cash equivalents,     $ 4,504.4       $ 5,553.3 
end of period 
 
 

Exhibit 6

 

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESBUSINESS SEGMENT DATA FOR YAMAL LNG JOINT VENTURE(In millions, unaudited)

 

We control the voting control interests in the legal onshore/offshore contract entities which own and account for the design, engineering, and construction of the Yamal LNG plant. Our partners have a 50% joint interest in these entities. Below is summarized financial information for the consolidated Yamal LNG joint venture as reflected at 100% in our consolidated financial statements.

 
                                            September 30, 
                                            2019 
Contract liabilities                        $ 1,437.3 
Mandatorily redeemable financial liability  288.8 
 
 
                                       Three Months Ended 
                                       September 30, 
                                       2019 
Cash provided by operating activities  $ 9.1 
Settlements of mandatorily redeemable  (223.1  ) 
financial liability 
 
 

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 third quarter 2019 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 2018 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 
                                                                        September 30, 2019 
                                                                        Net income (loss) attributable to TechnipFMC plc         Net income (loss) attributable to noncontrolling interests        Provision for income taxes         Net interest expense          Income (loss) before net interest expense and income taxes (Operating profit)          Depreciation and amortization          Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) 
TechnipFMC plc, as reported                                             $ 21.8                                                   $ 3.8                                                             $ 65.3                             $ 116.5                       $ 207.4                                                                                $ 141.6                                $ 349.0 
Charges and (credits): 
Impairment and other charges                                            1.0                                                      -                                                                 0.2                                -                             1.2                                                                                    -                                      1.2 
Restructuring and other severance charges                               12.2                                                     -                                                                 1.8                                -                             14.0                                                                                   -                                      14.0 
Business combination transaction and integration costs                  6.0                                                      -                                                                 0.2                                -                             6.2                                                                                    -                                      6.2 
Separation costs                                                        7.5                                                      -                                                                 1.9                                -                             9.4                                                                                    -                                      9.4 
Legal provision, net                                                    (0.6   )                                                 -                                                                 -                                  -                             (0.6    )                                                                              -                                      (0.6    ) 
Purchase price accounting adjustment                                    6.5                                                      -                                                                 2.0                                -                             8.5                                                                                    (8.5    )                              - 
Adjusted financial measures                                             $ 54.4                                                   $ 3.8                                                             $ 71.4                             $ 116.5                       $ 246.1                                                                                $ 133.1                                $ 379.2 
Diluted earnings per share attributable to TechnipFMC plc, as reported  $ 0.05 
Adjusted diluted earnings per share attributable to TechnipFMC plc      $ 0.12 
 
 
                                                                        Three Months Ended 
                                                                        September 30, 2018 
                                                                        Net income (loss) attributable to TechnipFMC plc          Net income (loss) attributable to noncontrolling interests         Provision for income taxes         Net interest expense          Income (loss) before net interest expense and income taxes (Operating profit)          Depreciation and amortization          Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) 
TechnipFMC plc, as reported                                             $ 136.9                                                   $ (2.7 )                                                           $ 66.7                             $ 106.0                       $ 306.9                                                                                $ 142.0                                $ 448.9 
Charges and (credits): 
Impairment and other charges                                            0.3                                                       -                                                                  1.3                                -                             1.6                                                                                    -                                      1.6 
Restructuring and other severance charges                               4.7                                                       -                                                                  3.4                                -                             8.1                                                                                    -                                      8.1 
Business combination transaction and integration costs                  3.3                                                       -                                                                  3.0                                -                             6.3                                                                                    -                                      6.3 
Gain on divestitures                                                    (21.1   )                                                 -                                                                  (10.5  )                           -                             (31.6   )                                                                              -                                      (31.6   ) 
Purchase price accounting adjustment                                    15.7                                                      -                                                                  4.8                                -                             20.5                                                                                   (23.3   )                              (2.8    ) 
Adjusted financial measures                                             $ 139.8                                                   $ (2.7 )                                                           $ 68.7                             $ 106.0                       $ 311.8                                                                                $ 118.7                                $ 430.5 
Diluted earnings per share attributable to TechnipFMC plc, as reported  $ 0.30 
Adjusted diluted earnings per share attributable to TechnipFMC plc      $ 0.31 
 
 

Exhibit 8

 

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 third quarter 2019 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 2018 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.

 
                                                                        Nine Months Ended 
                                                                        September 30, 2019 
                                                                        Net income attributable to TechnipFMC plc          Net income (loss) attributable to noncontrolling interests         Provision for income taxes          Net interest expense          Income before net interest expense and income taxes (Operating profit)          Depreciation and amortization          Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) 
TechnipFMC plc, as reported                                             $ 139.7                                            $ 19.4                                                             $ 80.7                              $ 345.3                       $ 585.1                                                                         $ 378.5                                $ 963.6 
Charges and (credits): 
Impairment and other charges                                            1.9                                                -                                                                  0.5                                 -                             2.4                                                                             -                                      2.4 
Restructuring and other severance charges                               30.5                                               -                                                                  8.0                                 -                             38.5                                                                            -                                      38.5 
Business combination transaction and integration costs                  24.7                                               -                                                                  6.5                                 -                             31.2                                                                            -                                      31.2 
Separation costs                                                        7.5                                                -                                                                  1.9                                 -                             9.4                                                                             -                                      9.4 
Reorganization                                                          19.2                                               -                                                                  6.1                                 -                             25.3                                                                            -                                      25.3 
Legal provision, net                                                    54.6                                               -                                                                  -                                   -                             54.6                                                                            -                                      54.6 
Purchase price accounting adjustment                                    19.5                                               -                                                                  6.0                                 -                             25.5                                                                            (25.5   )                              - 
Valuation allowance                                                     (40.3   )                                          -                                                                  40.3                                -                             -                                                                               -                                      - 
Adjusted financial measures                                             $ 257.3                                            $ 19.4                                                             $ 150.0                             $ 345.3                       $ 772.0                                                                         $ 353.0                                $ 1,125.0 
Diluted earnings per share attributable to TechnipFMC plc, as reported  $ 0.31 
Adjusted diluted earnings per share attributable to TechnipFMC plc      $ 0.57 
 
 
                                                                        Nine Months Ended 
                                                                        September 30, 2018 
                                                                        Net income attributable to TechnipFMC plc          Net income (loss) attributable to noncontrolling interests         Provision for income taxes          Net interest expense          Income before net interest expense and income taxes (Operating profit)          Depreciation and amortization          Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) 
TechnipFMC plc, as reported                                             $ 337.7                                            $ (2.0 )                                                           $ 180.7                             $ 244.3                       $ 760.7                                                                         $ 412.5                                $ 1,173.2 
Charges and (credits): 
Impairment and other charges                                            9.4                                                -                                                                  4.7                                 -                             14.1                                                                            -                                      14.1 
Restructuring and other severance charges                               12.3                                               -                                                                  6.2                                 -                             18.5                                                                            -                                      18.5 
Business combination transaction and integration costs                  13.9                                               -                                                                  7.0                                 -                             20.9                                                                            -                                      20.9 
Gain on divestitures                                                    (21.1   )                                          -                                                                  (10.5   )                           -                             (31.6   )                                                                       -                                      (31.6     ) 
Purchase price accounting adjustment                                    50.9                                               -                                                                  15.6                                -                             66.5                                                                            (67.3   )                              (0.8      ) 
Adjusted financial measures                                             $ 403.1                                            $ (2.0 )                                                           $ 203.7                             $ 244.3                       $ 849.1                                                                         $ 345.2                                $ 1,194.3 
Diluted earnings per share attributable to TechnipFMC plc, as reported  $ 0.73 
Adjusted diluted earnings per share attributable to TechnipFMC plc      $ 0.87 
 
 

Exhibit 9

 

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, unaudited)

 
                    Three Months Ended 
                    September 30, 2019 
                    Subsea            Onshore/            Surface Technologies          Corporate and Other           Total 
                                      Offshore 
Revenue             $ 1,342.2         $ 1,596.3           $ 396.6                       $ -                           $ 3,335.1 
Operating profit    $ 45.5            $ 284.6             $ 6.1                         $ (128.8 )                    $ 207.4 
(loss), 
as reported 
(pre-tax) 
Charges and 
(credits): 
Impairment and      1.2               -                   -                             -                             1.2 
other charges 
Restructuring       4.9               5.2                 0.7                           3.2                           14.0 
and other 
severance charges 
Business            -                 -                   -                             6.2                           6.2 
combination 
transaction 
and integration 
costs 
Separation costs    -                 -                   -                             9.4                           9.4 
Legal provision,    -                 -                   -                             (0.6     )                    (0.6      ) 
net 
Purchase price      8.5               -                   -                             -                             8.5 
accounting 
adjustments 
- amortization 
related 
Subtotal            14.6              5.2                 0.7                           18.2                          38.7 
Adjusted Operating  60.1              289.8               6.8                           (110.6   )                    246.1 
profit (loss) 
Adjusted            79.0              14.4                37.6                          2.1                           133.1 
Depreciation 
and amortization 
Adjusted EBITDA     $ 139.1           $ 304.2             $ 44.4                        $ (108.5 )                    $ 379.2 
Operating profit    3.4       %       17.8      %         1.5     %                                                   6.2       % 
margin, 
as reported 
Adjusted Operating  4.5       %       18.2      %         1.7     %                                                   7.4       % 
profit margin 
Adjusted EBITDA     10.4      %       19.1      %         11.2    %                                                   11.4      % 
margin 
 
 
                    Three Months Ended 
                    September 30, 2018 
                    Subsea            Onshore/Offshore            Surface Technologies          Corporate and Other          Total 
Revenue             $ 1,209.1         $ 1,532.5                   $ 402.2                       $ -                          $ 3,143.8 
Operating profit    $ 79.7            $ 243.4                     $ 51.9                        $ (68.1 )                    $ 306.9 
(loss), 
as reported 
(pre-tax) 
Charges and 
(credits): 
Impairment and      1.4               -                           0.2                           -                            1.6 
other charges 
Restructuring       3.6               (0.2      )                 1.1                           3.6                          8.1 
and other 
severance charges 
Business            -                 -                           -                             6.3                          6.3 
combination 
transaction 
and integration 
costs 
Gain                (3.3      )       (28.3     )                 -                             -                            (31.6     ) 
on divestitures 
Purchase price      (3.5      )       -                           0.9                           (0.2    )                    (2.8      ) 
accounting 
adjustments 
- non-amortization 
related 
Purchase price      23.4              -                           (0.1    )                     -                            23.3 
accounting 
adjustments 
- amortization 
related 
Subtotal            21.6              (28.5     )                 2.1                           9.7                          4.9 
Adjusted Operating  101.3             214.9                       54.0                          (58.4   )                    311.8 
profit (loss) 
Adjusted            87.2              12.4                        18.5                          0.6                          118.7 
Depreciation 
and amortization 
Adjusted EBITDA     $ 188.5           $ 227.3                     $ 72.5                        $ (57.8 )                    $ 430.5 
Operating profit    6.6       %       15.9      %                 12.9    %                                                  9.8       % 
margin, 
as reported 
Adjusted Operating  8.4       %       14.0      %                 13.4    %                                                  9.9       % 
profit margin 
Adjusted EBITDA     15.6      %       14.8      %                 18.0    %                                                  13.7      % 
margin 
 
 

Exhibit 10

 

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, unaudited)

 
                    Nine Months Ended 
                    September 30, 2019 
                    Subsea            Onshore/Offshore            Surface Technologies            Corporate and Other           Total 
Revenue             $ 4,036.2         $ 4,436.4                   $ 1,209.7                       $ -                           $ 9,682.3 
Operating profit    $ 190.1           $ 714.3                     $ 42.1                          $ (361.4 )                    $ 585.1 
(loss), 
as reported 
(pre-tax) 
Charges and 
(credits): 
Impairment and      1.8               -                           0.6                             -                             2.4 
other charges 
Restructuring       11.1              11.1                        2.8                             13.5                          38.5 
and other 
severance charges 
Business            -                 -                           -                               31.2                          31.2 
combination 
transaction 
and integration 
costs 
Separation costs    -                 -                           -                               9.4                           9.4 
Reorganization      -                 25.3                        -                               -                             25.3 
Legal provision,    -                 -                           -                               54.6                          54.6 
net 
Purchase price      25.5              -                           -                               -                             25.5 
accounting 
adjustments 
- amortization 
related 
Subtotal            38.4              36.4                        3.4                             108.7                         186.9 
Adjusted Operating  228.5             750.7                       45.5                            (252.7   )                    772.0 
profit (loss) 
Adjusted            236.6             30.2                        75.7                            10.5                          353.0 
Depreciation 
and amortization 
Adjusted EBITDA     $ 465.1           $ 780.9                     $ 121.2                         $ (242.2 )                    $ 1,125.0 
Operating profit    4.7       %       16.1      %                 3.5       %                                                   6.0       % 
margin, 
as reported 
Adjusted Operating  5.7       %       16.9      %                 3.8       %                                                   8.0       % 
profit margin 
Adjusted EBITDA     11.5      %       17.6      %                 10.0      %                                                   11.6      % 
margin 
 
 
                    Nine Months Ended 
                    September 30, 2018 
                    Subsea            Onshore/Offshore            Surface Technologies            Corporate and Other           Total 
Revenue             $ 3,606.7         $ 4,448.3                   $ 1,174.9                       $ -                           $ 9,229.9 
Operating profit    $ 210.0           $ 617.6                     $ 134.0                         $ (200.9 )                    $ 760.7 
(loss), 
as reported 
(pre-tax) 
Charges and 
(credits): 
Impairment and      8.6               -                           1.6                             3.9                           14.1 
other charges 
Restructuring       10.5              (5.8      )                 6.4                             7.4                           18.5 
and other 
severance charges 
Business            -                 -                           -                               20.9                          20.9 
combination 
transaction 
and integration 
costs 
Gain                (3.3      )       (28.3     )                 -                               -                             (31.6     ) 
on divestitures 
Purchase price      (6.1      )       -                           5.7                             (0.4     )                    (0.8      ) 
accounting 
adjustments 
- non-amortization 
related 
Purchase price      67.7              -                           (0.4      )                     -                             67.3 
accounting 
adjustments 
- amortization 
related 
Subtotal            77.4              (34.1     )                 13.3                            31.8                          88.4 
Adjusted Operating  287.4             583.5                       147.3                           (169.1   )                    849.1 
profit (loss) 
Adjusted            264.3             29.7                        48.1                            3.1                           345.2 
Depreciation 
and amortization 
Adjusted EBITDA     $ 551.7           $ 613.2                     $ 195.4                         $ (166.0 )                    $ 1,194.3 
Operating profit    5.8       %       13.9      %                 11.4      %                                                   8.2       % 
margin, 
as reported 
Adjusted Operating  8.0       %       13.1      %                 12.5      %                                                   9.2       % 
profit margin 
Adjusted EBITDA     15.3      %       13.8      %                 16.6      %                                                   12.9      % 
margin 
 
 

Exhibit 11

 

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, unaudited)

 
                 September 30,2019            December 31,2018 
Cash and cash    $ 4,504.4                    $ 5,540.0 
equivalents 
Short-term debt  (299.4    )                  (67.4     ) 
and current 
portion of 
long-term 
debt 
Long-term debt,  (3,608.8  )                  (4,124.3  ) 
less 
current portion 
Net cash         $ 596.2                      $ 1,348.3 
 
 

Net (debt) cash, is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net debt, or net cash, is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net (debt) cash should not be considered an alternative to, or more meaningful than, cash and cash equivalents as determined in accordance with U.S. GAAP or as an indicator of our operating performance or liquidity.

 

TechnipFMC plc

 

Investor relations

 

Matt SeinsheimerVice President Investor RelationsTel: +1 281 260 3665Email: Matt Seinsheimer

 

Phillip LindsayDirector Investor Relations (Europe)Tel: +44 (0) 20 3429 3929Email: Phillip Lindsay

 

Media relations

 

Christophe BélorgeotSenior Vice President Corporate EngagementTel: +33 1 47 78 39 92Email: Christophe Belorgeot

 

Delphine NayralDirector Public RelationsTel: +33 1 47 78 34 83Email: Delphine Nayral

 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191023005733/en/

 
This information is provided by Business Wire 
 
 

(END) Dow Jones Newswires

October 24, 2019 02:00 ET (06:00 GMT)