Mcdermott International Ltd · OTC:MCDIF
Mcdermott International — Q3 2003 Earnings Presentation
24 slides from Mcdermott International's earnings presentation, Nov 19, 2003
Slide 1: McDermott International Financial Review
M c D E R M O T T I N T E R N A T I O N A L , I N C .. Financial Review
Slide 2: B&W Revenues & Non-GAAP Op. Income
B&W Revenues & Non-GAAP [1] Op. Income ($ in millions; unaudited) [1] Excludes revaluation of settlement costs. See Appendix schedule I for reconciling items.
Slide 3: J. Ray Financial Information (Non-GAAP)
Non-GAAP [1] J. Ray Financial Information ($ in millions; unaudited) 9/30/03 9/30/02 GAAP Revenues $ 512.3 $ 276.8 Spar projects & Argentina ("Legacy") revenues (109.3) (66.8) Non-GAAP Revenues $ 403.0 $ 210.0 GAAP Operating Income $ 11.9 $ (370.3) Impairment of J. Ray goodwill - 313.0 Legacy Losses
Slide 4: BWXT Segment Financial Information
BWXT Segment Financial Information ($ in millions; unaudited) 9/30/03 9/30/02 Revenues $ 133.0 $ 136.3 No items 0.0 0.0 GAAP Revenues $ 133.0 $ 136.3 Operating Income $ 21.4 $ 12.2 No items - - GAAP Operating Income $ 21.4 $ 12.2 GAAP Operating Income % 16.1% 9.0% Three Months Ended BWXT
Slide 5: Corporate Financial Information
Corporate Financial Information ($ in millions; unaudited) 9/30/03 9/30/02 Departmental costs $ 10.2 $ 8.9 Billings to Operating Units (6.0) (6.8) Net Corporate Expense $ 4.2 $ 2.1 Pension Expense (non-cash) $ 20.8 $ 4.2 GAAP Corporate costs as reported $ 25.0 $ 6.3 Three Months Ended Corporate
Slide 6: J. Ray 2003 Revenues & Non-GAAP Op. Income
J. Ray 2003 Revenues & Non-GAAP [1] Op. Income ($ in millions; unaudited) [1] Excludes losses on spar and Argentina projects. See Appendix schedule II for reconciling items.
Slide 7: BWXT 2003 Revenues & Operating Income
BWXT 2003 Revenues & Operating Income ($ in millions; unaudited)
Slide 8: Corporate 2003 Operating Expense
Corporate 2003 Operating Expense ($ in millions; unaudited)
Slide 9: Consolidated 2003 Revenues & Non-GAAP Op. Income
Consolidated 2003 Revenues & Non-GAAP Op. Income [1] ($ in millions; unaudited) [1] Excludes losses on spar and Argentina projects. See Appendix schedule III for reconciling items.
Slide 10: Earnings per share – GAAP and Non-GAAP
Earnings per share – GAAP and Non-GAAP ($ per fully diluted share; unaudited) [1] Excludes losses on spar and Argentina projects, and B&W settlement revaluation. See Appendix schedule IV for reconciliation.
Slide 11: Consolidated Available Liquidity
Consolidated Available Liquidity ($ millions; unaudited)
Slide 12: Current Financing Structure
Current Financing Structure
Slide 13: Financing Strategy in 2003
Financing Strategy in 2003 Refinance BWXT on a stand-alone basis Refinance J. Ray on a stand-alone basis Establish permanent financing structure to facilitate growth
Slide 14: New Financing Arrangements
New Financing Arrangements New financings expected to close in fourth quarter 2003 BWXT credit facility sized at up to $150 million J. Ray announced $200 million offering of 144A notes J. Ray letter of credit facility sized at $75 million and being negotiated All financings will be stand-alone at th
Slide 15: Value of J. Ray Marine Fleet
Value of J. Ray Marine Fleet Estimated Value of Fleet The nine major vessels which are to be specifically pledged in support of the J. Ray debt offering have an estimated market value of over $295 million Two additional vessels, the DB-60 and the DB-17, are under review for possible sale and have ad
Slide 16: Proposed Financing Structure
Proposed Financing Structure
Slide 17: Consolidated Available Liquidity – Post Close
Consolidated Available Liquidity – Post Close [1] ($ millions; unaudited) 11/12/03 [1] [1] Includes cash and capacity after expected completion of current financing initiatives. See Appendix schedule V for reconciling items.
Slide 18: For more information contact
M c D E R M O T T I N T E R N A T I O N A L , I N C .. (NYSE: MDR) For more information contact: Jay Roueche Director of Investor Relations 281-870-5462
Slide 19: Appendix I – B&W Non-GAAP Reconciliation
Appendix I – B&W Non-GAAP Reconciliation ($ in millions; unaudited) 3/31/03 6/30/03 9/30/03 GAAP Revenues $ 381.0 $ 352.3 $ 318.5 GAAP Operating Income $ 19.9 $ (48.5) $ 19.2 Chapter 11 settlement adjustment - 70.0 (5.5) Non-GAAP Operating Income $ 19.9 $ 21.5 $ 13.7 Three Months Ended
Slide 20: Appendix II – J. Ray Non-GAAP Reconciliation
Appendix II – J. Ray Non-GAAP Reconciliation ($ in millions; unaudited) 3/31/03 6/30/03 9/30/03 GAAP Revenues $ 395.0 $ 468.0 $ 512.3 Legacy Revenues (82.8) (126.0) (109.3) Non-GAAP Revenues $ 312.2 $ 342.0 $ 403.0 GAAP Operating Income $ 16.6 $ (13.2) $ 11.9 Legacy losses - Spars - - 19.9 Legacy lo
Slide 21: Appendix III – Consolidated Non-GAAP Reconciliation
Appendix III – Consoldiated Non-GAAP Reconciliation ($ in millions; unaudited) 3/31/03 6/30/03 9/30/03 BWXT Revenues $ 117.7 $ 127.5 $ 133.0 J. Ray Revenues excl. Legacy 312.2 342.0 403.0 J. Ray Legacy Revenues 82.8 126.0 109.3 GAAP Revenues $ 512.7 $ 595.5 $ 645.3 GAAP Operating Income $ 13.9 $ (13
Slide 22: Appendix IV – Non-GAAP EPS Reconciliation
Appendix IV –Non-GAAP EPS Reconciliation ($ in millions except per share amounts; unaudited) 3/31/03 6/30/03 9/30/03 GAAP income before taxes $ 36.7 $ (55.9) $ 15.3 B&W Settlement revaluation (24.1) 39.4 (9.7) Legacy losses - Spars - - 19.9 Legacy losses - Argentina - 39.9 - Non-GAAP income before t
Slide 23: Appendix V – Post Close Liquidity Reconciliation
Appendix V – Post Close Liquidity Reconciliation ($ in millions except per share amounts; unaudited) Available cash at 11/12/03 $ 87.2 Proceeds from bond offering, net. 194.0 Release of Lender's Collateral 7.9 Available cash post closing $ 289.1 Available credit capacity at 11/12/03 $ 60.4 Cancellat
Slide 24: Revaluation of B&W Settlement Charge
Revaluation of B&W Settlement Charge ($ in millions; unaudited) 12/31/02 3/31/03 6/30/03 Q-3 9/30/03 Nominal Fair Fair Value Fair Value Value Value Change Value Components 4.75 Million Shares of MDR $ 20.8 $ 13.8 $ 30.1 $ (3.0) A $ 27.1 Share Price Guarantee 69.5 28.6 49.0 0.2 B 49.2 Note Payable 92
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