Chart Industries Inc (NASDAQ:GTLS) Q1 2015 Earnings Conference Call - Final Transcript

Apr 30, 2015 • 10:30 am ET

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Chart Industries Inc (NASDAQ:GTLS) Q1 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Chart Industries 2015 First Quarter Earnings Conference Call. [Operator Instructions]

You should have already received the company's earnings release that was issued earlier this morning. If you have not received the release, you may access it by visiting Chart's website at www.chartindustries.com. A telephone replay of today's broadcast will be available following the conclusion of the call until Thursday, May 7. The replay information is contained in the company's earnings release.

Before we begin, the company would like to remind you that statements made during this call that are not historical in fact are forward-looking statements. Forward-looking statements involves risks and uncertainties and could cause actual events or results to differ materially from those expressed or implied in the forward-looking statements. For further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, please refer to the information regarding forward-looking statements and risk factors included in the company's earnings release and latest filings with the SEC. These filings are available through the investor relations section of the company's website or through the SEC website, www.sec.gov. The company undertakes no obligation to update publicly or revise any forward-looking statement.

I would now like to turn the conference call over to Michael Biehl, Chart Industries' Executive Vice President and CFO. You may begin your conference.

Executive
Michael F. Biehl

Thank you, Tyrone. Good morning, everyone. I would like to thank you all for joining us today.

I'll begin by giving you a brief overview of our first quarter results, and then Sam Thomas will provide comments on current market and order trends we see in each of our business segments. I will then finish up by commenting on our outlook for the remainder of 2015.

Net income for the first quarter of 2015 was $5.2 million, or $0.17 per diluted share. This included acquisition-related retention costs, as well as Owatonna facility shutdown and other severance costs recorded in the quarter of approximately $900,000 or $0.02 per diluted share.

Excluding these items, first quarter 2015 earnings would have been $0.19 per diluted share. This compares with net income of $12 million, or $0.38 per diluted share for the first quarter of 2014. First quarter 2014 earnings would have been $0.41 per share, excluding $800,000, or $0.02 per diluted share of acquisition-related costs in that period, as well as $0.01 per diluted share impact associated with Chart's convertible notes.

In addition, we had a foreign currency transaction loss of $3.1 million for the first quarter of 2015, or $0.07 per diluted share, as the strength of the US dollar had a significant negative impact on our European operations. We also had a foreign currency loss in the first quarter of 2014, but it was relatively small, around $100,000.

Sales for the quarter were $245.1 million, an 8% decline from the prior year quarter. This was largely due to a decline in LNG sales in our D&S business, particularly in China, but currency