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Dresser-Rand Reports First Quarter 2013 Diluted EPS of $0.43

         Dresser-Rand Reports First Quarter 2013 Diluted EPS of $0.43

Sales and Net Income Up 16% and 39%, respectively, compared to Prior Year

Reiterates Operating Income and Bookings Guidance for the Full Year

PR Newswire

HOUSTON, April 25, 2013

HOUSTON, April 25, 2013 /PRNewswire/ --

Results Summary ($ in millions, except per share data):
                                        Three months ended March 31,
                                        (Unaudited)
                                        2013             2012
Total revenues                          $766.4           $661.8
Income from operations                  $65.5            $51.7
Interest expense, net                   ($14.3)          ($16.3)
Other (expense) income, net             ($1.0)           $0.1
Income before income taxes              $50.2            $35.5
Net income attributable to Dresser-Rand $32.9            $23.6
Diluted EPS                             $0.43            $0.31
Shares used to compute EPS (000)        76,749           76,049
Other information:
 Total bookings                       $667.8           $827.0
 Total backlog                        $2,863.7         $2,746.8

Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") (NYSE: DRC), a
global supplier of rotating equipment and aftermarket parts and services,
reported net income of $32.9 million, or $0.43 per diluted share, for the
first quarter 2013, compared with net income of $23.6 million, or $0.31 per
diluted share, for the first quarter 2012.

Vincent R. Volpe Jr., President and Chief Executive Officer of Dresser-Rand,
said, "Our first quarter 2013 financial results were generally in-line with
our expectations, with good earnings and aftermarket bookings set against
light new units bookings. Additionally, while net working capital increased at
quarter end to approximately 13.5% of trailing twelve months sales, looking at
scheduled commitments and anticipated receipts from clients, we continue to
expect that the average for the year will be at or below 10% of 2013 sales as
previously guided.

"We have a strong backlog of new unit orders scheduled to ship this year and
our aftermarket bookings, especially the increase in parts orders, give us a
solid start to the year. As new unit bookings start to ramp up in the second
quarter and then over the remainder of the year, we believe we are well
positioned for the future.

"Income from operations of $65.5 million was up 27% from year ago levels and
slightly above the midpoint of our guidance. Aftermarket bookings of $399
million were strong, while our new unit bookings of $269 million were, as
previously disclosed, well below the run-rate implied in our full year
bookings guidance, reflecting client delays in placing several major orders.

"As previously guided, we expect to see improved operating margins
commensurate with the increase in volume over the balance of the year and, as
a result, we are reiterating our full year operating income guidance of $450
to $530 million with a bias toward the lower half of the range. Similarly, we
are reiterating bookings guidance for new units and aftermarket parts and
services in the range of $1.8 to $2.0 billion and $1.6 to $1.8 billion,
respectively.

Bookings of $667.8 million for the first quarter 2013 were 19% lower than the
$827.0 million for the first quarter 2012. The decrease in bookings was due to
lower new unit bookings reflecting the lumpy nature of the new units segment,
in which bookings can be highly variable due to the subjectivity clients
exercise in placing large orders. For example, in the first quarter 2012, the
Company booked one order that amounted to more than $150 million, whereas in
the first quarter 2013, no single order was more than $50 million in size. The
$2,863.7 million backlog at the end of March 2013 was 4.3% higher than the
$2,746.8 million backlog at the end of March 2012.

Revenues for the first quarter 2013 of $766.4 million increased $104.6 million
or 15.8% compared to $661.8 million for the first quarter 2012. The increase
in revenues was principally due to higher volume and, to a much lesser extent,
higher prices.

Total operating income for the first quarter 2013 was $65.5 million, compared
to operating income of $51.7 million for the first quarter 2012. As a
percentage of revenues, operating income for the first quarter 2013 of 8.5%
compares with 7.8% for the corresponding period in 2012. First quarter 2013
operating income increased compared with the corresponding period in 2012
principally due to higher volume and, to a much lesser extent, price
increases. Operating margins improved principally from operating leverage on
higher volumes.

New Units Segment

New unit bookings of $268.8 million for the first quarter 2013 were 39.2%
lower than the bookings of $442.2 million for the corresponding period in
2012. The backlog at March 31, 2013, of $2,207.7 million was 1.5% higher than
the $2,174.3 million backlog at March31, 2012.

New unit revenues were $443.2 million for the first quarter 2013 compared to
$367.7 million for the first quarter 2012, an increase of $75.5 million or
20.5%. The increase in revenues was principally due to higher volume.

New unit operating income of $28.6 million for the first quarter 2013 compares
with operating income of $20.2 million for the first quarter 2012. This
segment's operating margin was 6.5% for the first quarter 2013, compared to
5.5% for the first quarter 2012. The increase in operating margin was
principally from operating leverage on higher volumes, partially offset by a
less favorable sales mix.

Aftermarket Parts and Services Segment

Aftermarket bookings of $399.0 million for the first quarter 2013 were 3.7%
higher than bookings of $384.8 million for the corresponding period in 2012.
The backlog at March31, 2013, of $656.0 million was 14.6% higher than the
$572.5million backlog at March31, 2012.

Aftermarket revenues were $323.2 million for the first quarter 2013, compared
to $294.1 million for the first quarter 2012, an increase of $29.1 million or
9.9%. The increase in revenues was principally due to volume growth in most
geographic regions, especially the Middle East and Latin America and, to a
much lesser extent, price increases.

Aftermarket operating income was $66.4million for the first quarter 2013,
compared to $53.3 million for the first quarter 2012. This segment's
operating margin was 20.5% for the first quarter 2013, compared to 18.1% for
the first quarter 2012. This increase was principally from the benefits of
favorable mix and higher prices.

Liquidity and Capital Resources

As of March 31, 2013, cash and cash equivalents totaled $157.0 million and
borrowing availability under the $764.1million revolving credit portion of
the Company's senior secured credit facility was $174.6 million, as
$172.9million was used for outstanding letters of credit and $416.6 million
of borrowings was outstanding.

In the first quarter 2013, cash used by operating activities was $44.7
million, compared with cash provided by operating activities of $9.9 million
for the corresponding period in 2012. In the first quarter 2013, net cash
used in investing activities was $31.2 million compared with $55.8 million for
the first quarter 2012. Cash used in investing activities in the first
quarter 2012 includes $48.8 million related to the acquisition of Synchrony,
Inc. Cash provided by financing activities was $110.9 million in the first
quarter of 2013, compared to $37.5 million in the first quarter of 2012. As
of March 31, 2013, net debt was approximately $966.1 million.

Outlook

The Company reiterates its guidance for 2013 new unit bookings of $1.8 to $2.0
billion. Given the delays in several major projects, the Company continues to
believe that as much as two-thirds of these bookings may occur in the second
half of the year. The Company also reiterates aftermarket bookings of $1.6 to
$1.8 billion and full year 2013 operating income guidance of $450 to $530
million with a continuing bias toward the lower half of the range. New unit
segment margins are expected to be approximately 10% and aftermarket segment
margins are expected to be in the range of 23% to 25%. The Company expects
its full year 2013 interest expense to be approximately $60 million and its
effective tax rate to be approximately 32% to 34%.

Conference Call

The Company will discuss its first quarter 2013 results at its conference call
on April 26, 2013, at 9:00 a.m. Eastern Time. You may access the live webcast
presentation at www.dresser-rand.com. Participants may also join the
conference call by dialing (877) 868-1831 in the U.S. and (914) 495-8595 from
outside the U.S. five to ten minutes prior to the scheduled start time.

A replay of the webcast will be available from 12:00 noon Eastern Time on
April 26, 2013, through 11:59 p.m. Eastern Time on May 3, 2013. You may
access the webcast replay at www.dresser-rand.com. The replay of the
conference can be accessed by dialing (855) 859-2056 in the U.S. and (404)
537-3406 from outside the U.S. The replay pass code is 41344279.

About Dresser-Rand

Dresser-Rand is among the largest suppliers of rotating equipment solutions to
the worldwide oil, gas, petrochemical, and process industries. The Company
operates manufacturing facilities in the United States, France, United
Kingdom, Spain, Germany, Norway, and India, and maintains a network of 49
service and support centers (including 6 engineering and R&D centers) covering
more than 150 countries.

This news release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include, without limitation, the Company's plans, objectives,
goals, strategies, future events, future bookings, revenues, or performance,
capital expenditures, financing needs, plans, or intentions relating to
acquisitions, business trends, executive compensation, and other information
that is not historical information. The words "anticipates", "believes",
"expects", "intends", "appears", "outlook," and similar expressions identify
such forward-looking statements. Although the company believes that such
statements are based on reasonable assumptions, these forward-looking
statements are subject to numerous factors, risks, and uncertainties that
could cause actual outcomes and results to be materially different from those
projected. These factors, risks, and uncertainties include, among others, the
following:economic or industry downturns; the variability of bookings due to
volatile market conditions, subjectivity clients exercise in placing orders,
and timing of large orders; volatility and disruption of the credit markets;
its inability to generate cash and access capital on reasonable terms and
conditions; its inability to implement its business strategy to increase
aftermarket parts and services revenue; its ability to comply with local
content requirements; delivery delays by certain third party suppliers of
large equipment; cost overruns and fixed-price contracts; its ability to
implement potential tax strategies; competition in its markets; failure to
complete or achieve the expected benefits from any future acquisitions;
economic, political, currency and other risks associated with international
sales and operations; fluctuations in currencies and volatility in exchange
rates; loss of senior management; environmental compliance costs and
liabilities; failure to maintain safety performance acceptable to its clients;
failure to negotiate new collective bargaining agreements; a failure or breach
of our information system security; unexpected product claims and regulations;
infringement on its intellectual property or infringement on others'
intellectual property; its pension expenses and funding requirements;
difficulty in implementing an information management system; and the Company's
brand name may be confused with others. These and other risks are discussed
in detail in the Company's filings with the Securities and Exchange Commission
at www.sec.gov. Actual results, performance, or achievements could differ
materially from those expressed in, or implied by, the forward-looking
statements. The Company can give no assurances that any of the events
anticipated by the forward-looking statements will occur or, if any of them
does, what impact they will have on results of operations and financial
condition. The company undertakes no obligation to update or revise
forward-looking statements, which may be made to reflect events or
circumstances that arise after the date made or to reflect the occurrence of
unanticipated events, except as required by applicable law. For information
about Dresser-Rand, go to its website at www.dresser-rand.com.

DRC-FIN





DRESSER-RAND GROUP INC.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
                                            Three months ended March 31,
                                            2013                   2012
                                            ($ in millions, except per share
                                            amounts)
Net sales of products                      $ 572.0                $ 494.7
Net sales of services                       194.4                  167.1
  Total revenues                            766.4                  661.8
Cost of products sold                       458.2                  395.2
Cost of services sold                       136.2                  121.7
  Total cost of sales                       594.4                  516.9
    Gross profit                            172.0                  144.9
Selling and administrative expenses        96.2                   88.7
Research and development expenses           10.3                   4.5
    Income from operations                  65.5                   51.7
Interest expense, net                       (14.3)                 (16.3)
Other (expense) income, net                (1.0)                  0.1
    Income before income taxes              50.2                   35.5
Provision for income taxes                  15.8                   11.2
    Net income                              34.4                   24.3
     Net income attributable to             (1.5)                  (0.7)
     noncontrolling interest
    Net income attributable to              $  32.9               $  23.6
    Dresser-Rand
Net income attributable to Dresser-Rand per
share
    Basic                                   $  0.43               $  0.31
    Diluted                                 $  0.43               $  0.31
Weighted average shares outstanding - (in
thousands)
    Basic                                   75,798                 75,293
    Diluted                                 76,749                 76,049





DRESSER-RAND GROUP INC.
CONSOLIDATED SEGMENT DATA
(Unaudited)
                                  Three months ended March 31,
                                  2013            2012
                                  ($ in millions)
Revenues
 New units                      $  443.2      $  367.7
 Aftermarket parts and services 323.2           294.1
 Total revenues                 $  766.4      $  661.8
Gross profit
 New units                      $   55.5     $   46.9
 Aftermarket parts and services 116.5           98.0
 Total gross profit             $  172.0      $  144.9
Income from operations
 New units                      $   28.6     $   20.2
 Aftermarket parts and services 66.4            53.3
 Unallocable                    (29.5)          (21.8)
 Total income from operations   $   65.5     $   51.7
Bookings
 New units                      $  268.8      $  442.2
 Aftermarket parts and services 399.0           384.8
 Total bookings                 $  667.8      $  827.0
Backlog - ending
 New units                      $ 2,207.7       $ 2,174.3
 Aftermarket parts and services 656.0           572.5
 Total backlog                  $ 2,863.7       $ 2,746.8





DRESSER-RAND GROUP INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
                                                       March 31,  December 31,
                                                       2013       2012
                                                       ($ in millions)
Assets
Current assets
   Cash and cash equivalents                           $        $     
                                                       157.0     122.8
   Restricted cash                                     25.0       17.6
   Accounts receivable, less allowance for losses of   513.2      565.9
   $8.9 at 2013 and $9.6 at 2012
   Inventories, net                                   618.3      552.5
   Prepaid expenses and other                          79.9       66.7
   Deferred income taxes, net                          29.5       30.5
      Total current assets                             1,422.9    1,356.0
Property, plant and equipment, net                    464.7      466.9
Goodwill                                             886.7      911.3
Intangible assets, net                                494.7      506.9
Deferred income taxes                                  13.9       14.9
Other assets                                           79.3       77.0
      Total assets                                     $         $    
                                                       3,362.2    3,333.0
Liabilities and Stockholders' Equity
Current liabilities
   Accounts payable and accruals                      $        $     
                                                       622.6     600.4
   Customer advance payments                           203.7      282.3
   Accrued income taxes payable                       37.0       44.4
   Current portion of long-term debt                   42.0       35.9
      Total current liabilities                        905.3      963.0
Deferred income taxes                                  37.1       35.8
Postemployment and other employee benefit              135.9      142.8
liabilities
Long-term debt                                        1,106.1    1,014.9
Other noncurrent liabilities                           70.0       81.6
      Total liabilities                                2,254.4    2,238.1
Stockholders' equity
   Common stock, $0.01 par value, 250,000,000 shares
   authorized; and 76,157,587 and 75,675,854 shares
   issued and outstanding at March 31, 2013, and      0.8        0.8
   December 31, 2012, respectively
   Additional paid-in capital                          142.5      140.5
   Retained earnings                                   1,117.5    1,084.6
   Accumulated other comprehensive loss                (157.2)    (134.7)
      Total Dresser-Rand stockholders' equity          1,103.6    1,091.2
   Noncontrolling interest                             4.2        3.7
      Total stockholders' equity                       1,107.8    1,094.9
      Total liabilities and stockholders' equity       $         $    
                                                       3,362.2    3,333.0





DRESSER-RAND GROUP INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
                                                      Three months ended March
                                                      31,
                                                      2013          2012
                                                      ($ in millions)
Cash flows from operating activities
 Net income                                          $  34.4      $  24.3
 Adjustments to reconcile net income to net cash
 (used in) provided by operating activities:
    Depreciation and amortization                     24.3          20.7
    Deferred income taxes                             0.2           1.8
    Stock-based compensation                          10.6          6.8
    Excess tax benefits from stock-based compensation (6.1)         (3.8)
    Amortization of debt financing costs              1.0           0.9
    Provision for losses on inventory                 0.4           0.1
    Loss on sale of property, plant and equipment     -             (0.1)
    (Gain) loss from equity investments               (0.3)         1.3
    Changes in working capital and other, net of
    acquisitions
         Accounts receivable                          48.1          75.2
         Inventories                                  (74.3)        (32.4)
         Accounts payable and accruals                14.2          (43.0)
         Customer advances                            (72.6)        (21.3)
    Other                                             (24.6)        (20.6)
         Net cash (used in) provided by operating     (44.7)        9.9
         activities
Cash flows from investing activities
 Capital expenditures                                 (19.9)        (10.0)
 Proceeds from sales of property, plant and equipment -             0.1
 Acquisitions, net of cash acquired                   -             (48.8)
 Other investments                                    (3.5)         (4.0)
 (Increase) decrease in restricted cash balances      (7.8)         6.9
         Net cash used in investing activities        (31.2)        (55.8)
Cash flows from financing activities
 Proceeds from exercise of stock options              1.1           1.6
 Proceeds from borrowings                             488.7         147.1
 Excess tax benefits from stock-based compensation    6.1           3.8
 Repayments of borrowings                             (385.0)       (115.0)
         Net cash provided by financing activities    110.9         37.5
Effect of exchange rate changes on cash and cash      (0.8)         3.3
equivalents
Net increase (decrease) in cash and cash equivalents  34.2          (5.1)
Cash and cash equivalents, beginning of period        122.8         128.2
Cash and cash equivalents, end of period              $ 157.0       $ 123.1





DRESSER-RAND GROUP INC.
 Reconciliation of GAAP to Non-GAAP Financial Information
 
 (Unaudited)
 Net Debt:
                                                    March 31,     December 31,
                                                    2013          2012
                                                    ($ in millions)
Components of net debt
 Cash, cash equivalents and restricted cash         $   182.0  $     
                                                                  140.4
 Current portion of long-term debt                 (42.0)        (35.9)
 Long-term debt                                     (1,106.1)     (1,014.9)
 Net debt                                           $  (966.1)  $     
                                                                  (910.4)

Net debt is defined as total debt minus cash and cash equivalents. The
Company's

management views net debt, a non-GAAP financial measure, to be a useful
measure of a

company's ability to reduce debt, add to cash balances, pay dividends,
repurchase

stock, and fund investing and financing activities.





SOURCE Dresser-Rand Group Inc.

Website: http://www.dresser-rand.com
Contact: Investors, Blaise Derrico, Vice-President Investor Relations (713)
973-5497
 
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