Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Q1 2020 Earnings Presentation
23 slides from Chart Industries's earnings presentation, Apr 23, 2020
Slide 1: Chart Industries Q1 2020 Earnings Call
Chart Industries Q1 2020 Earnings call Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company’s business plans, including statements regarding com
Slide 3: Our Focused Strategy
Our Focused Strategy A B D C Broadest Product Offering for Industrial Gas & Energy Application and Customer Expansion Cryo-pump opportunity Repair & Service Specialty Markets Innovative Solutions Upfront Engineering Partnerships for new turnkey solutions Retrofit for efficiencies existing brownfield
Slide 4: COVID-19 Update
COVID-19 Update © 2020 Chart Industries, Inc. Confidential and Proprietary
Slide 5: COVID-19 Related Actions
COVID-19 Related Actions © 2020 Chart Industries, Inc. Confidential and Proprietary Safety of Team Members Operations & Supply Chain Designated “Essential” production for energy and medical products by all governments in all manufacturing locations Produce medically critical product in 7 global loca
Slide 6: Amended Bank Covenants
Amended Bank Covenants © 2020 Chart Industries, Inc. Confidential and Proprietary (1) Adjusted EBITDA is defined by Credit Agreement Debt Covenant: Net Debt / LTM Adjusted EBITDA Debt Maturities Schedule Pricing Grid Largely Unchanged Tiers Unchanged New Pricing Tier No Meaningful Maturities Until 2
Slide 7: All facilities are considered essential by governments
All facilities are considered essential by governments © 2020 Chart Industries, Inc. Confidential and Proprietary United States: Emergency Declaration by DOT identifies the “transportation of medical supplies and equipment related to the testing, diagnosis and treatment of COVID-19” as essential US
Slide 8: Chart Critical Care Products
Chart Critical Care Products Liquid Nitrogen Dosing Systems Liquid Nitrogen Dosing Systems are critical to food preservation, bottling and canning water / other beverages Cryobiological Shippers and Freezers Used for transport of hazardous biological samples and storage of vaccinations, tissue, cell
Slide 9: Critical Care Demand
Critical Care Demand Chart DuraCyls to Select Gases in 2 days (normal 10-14 days) for the CDC and Emory University Chart 5500 Liter and 3000 Liter tanks for emergency backup oxygen supply at Stony Brook Hospital (NY); delivered to General Welding in 3 days Chart Permacyl 3000 Liter installed at Nola
Slide 10: Giving Back
Giving Back Donated thousands of N95 masks to our local hospitals Donated vapor shippers for COVID-19 research Provided disposable suits to healthcare workers in Italy Fannin, GA EMS St. John’s Hospital Tulsa, OK (USA) Decin Emergency Response (Czech Republic) Troy Beaumont Hospital Detroit, MI (USA
Slide 11: Business Update
Business Update © 2020 Chart Industries, Inc. Confidential and Proprietary
Slide 12: Macro Trends Driving Our Business
Macro Trends Driving Our Business Reducing annual CO2 emissions from 36.8 to 16.5 billion tons Global power demand to increase 40% by 2035 and 85% by 2050 Water scarcity impacts 40% of the world’s population Energy Transition Population Growth Sustainability Global LNG / Clean Energy Infrastructure
Slide 13: Q1 2020 Backlog
© 2020 Chart Industries, Inc. Confidential and Proprietary Q1 2020 Backlog E&C Cryo E&C FinFans D&S West D&S East Total Chart Includes $93M of VG Calcasieu Pass Included $135M of VG Calcasieu Pass Includes $93M of VG Calcasieu Pass Included $135M of VG Calcasieu Pass Includes $93M of VG Calcasieu Pa
Slide 14: Recent Demand Trends
Recent Demand Trends Strengthening Weakening Consistent D&S West D&S East Critical Care (Medical) China Order Activity (received the largest single industrial gas order in Chart China history) Regas terminals Critical Care (Medical) Cryobio (Medical) Hydrogen Cannabis Food & beverage Repair & servic
Slide 15: Recent Demand Trends
Recent Demand Trends Strengthening Weakening Consistent E&C Cryo E&C FinFans Lifecycle (service & repair) BAHX bidding activity from Sumitomo customers New Big LNG projects Nat gas processing Small-scale LNG (utility) Petrochemical Industrial gas Fans First of a kind designs for air coolers Air cool
Slide 16: Q1 2020 "First of A Kind" Orders For Chart
Q1 2020 “First of A Kind” Orders For Chart (15!) Liquid hydrogen passenger vessel study LCNG station order for new city gas network developer that owns 7 networks First LNG regas station in Malaysia First Flow Meter Sold into the Middle East First Canned Water Pilot with Major Beverage Customer Firs
Slide 17: Last Year, Chart Industries' Products Helped
Last Year, Chart Industries’ Products Helped: © 2020 Chart Industries, Inc. Confidential and Proprietary Treat over 1 billion gallons of water a day in the US Reduce 120 million gallons of diesel used in power generation in the Caribbean and Europe Produce over 45 million tons of LNG to replace coal
Slide 18: Financial Update
Financial Update © 2020 Chart Industries, Inc. Confidential and Proprietary
Slide 19: Q1 2020 Adjusted Diluted EPS
© 2020 Chart Industries, Inc. Confidential and Proprietary Q1 2020 Adjusted Diluted EPS Other one-time items were related to: Stabilis investment mark-to-market and Liberty LNG investment adjustment of $0.15 in Q1 2020, Commercial and legal settlements $0.02 in Q1 2020, aluminum cryobiological tank
Slide 20: Q1 2020 Free Cash Flow
© 2020 Chart Industries, Inc. Confidential and Proprietary Q1 2020 Free Cash Flow “Income from continuing operations attributable to Chart Industries Inc. adjusted” is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net income in accordance wi
Slide 21: Chart's Transformation
Chart’s Transformation Business Operations Higher customer concentration / lower geographic diversity 2014 revenue buoyed by single large LNG project Significant backlog with PetroChina that went away in 2016 ($150M) Few long-term contracts in place Limited actions taken for cost rationalization Lim
Slide 22: 2020 Data Points
2020 Data Points Venture Global Calcasieu Pass Revenue Expectation of $100M Products That Can Be Used in Medical Applications Were 21% of 2019 Chart Revenue Q1 2020 Free Cash Flow of $15M (ex share buyback) Expected Full Year Capital Expenditures of $25M-30M 35.45 million basic weighted average shar
Slide 23: Thank You
Thank You Chart Team © 2020 Chart Industries, Inc. Confidential and Proprietary