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HOUSTON, May 09, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today that Ty Lawrence has been appointed Vice President, Treasurer and Investor Relations, replacing Kathy Murray who has been appointed Vice President of Finance for Project Execution and Delivery. A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/90ba574b-e695-4191-adfe-0d1719d01e08 “These moves ensure McDermott continues to build the strength of our leadership team by expanding their breadth and depth of experience,” said Stuart Spence, Executive Vice President and Chief Financial Officer for McDermott. “These moves provide both Ty and Kathy new experiences and opportunities to broaden their understanding of McDermott’s vast business and position them for continued success within our company.” Prior to this appointment, Ty Lawrence was Senior Director of Finance for McDermott’s Americas, Europe and Africa Area (AEA). He joined McDermott in 2013 and has previously held the roles of Subsea Finance Director and Senior Finance Director for Commercial and Project Support. Ty is a trained chartered accountant with over 20 years of experience working for various listed and private equity companies across a variety of industry sectors mainly in London, in roles of increasing responsibility. “I look forward to working with the investment and financial communities to strategically broaden McDermott’s investor base and highlight the tremendous value McDermott brings as the engineering, procurement, construction and installation leader in the offshore and subsea market,” said Ty Lawrence. McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 13,500 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver.  McDermott has served the energy industry since 1923. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, please visit our website at www.mcdermott.com.


MINNEAPOLIS--(BUSINESS WIRE)--Piper Jaffray Companies (NYSE: PJC), a leading investment bank and asset management firm, is pleased to announce the hiring of Chris Geyer and Tim Shea. Based in Minneapolis, Geyer and Shea will be part of the firm’s diversified industrials & services investment banking group. “These hires represent another step forward in building upon our multi-year growth trajectory in investment banking and expanding our platform where we see concrete opportunities to expand our reach,” said Scott LaRue, global co-head of Piper Jaffray investment banking. “Adding Chris and Tim bolsters our coverage in this important sector and adds strength to our overall franchise.” “We continue to invest in domain expertise, and Tim and Chris bring significant expertise in facility services and chemicals, respectively. Our clients value deep sector knowledge along with world-class M&A execution, and that combination will drive our continued momentum,” said Michael Dillahunt, co-head of Piper Jaffray diversified industrials & services investment banking. Geyer re-joined Piper Jaffray from Lazard Middle Market’s industrials investment banking group, where he advised chemicals companies. Prior to Lazard, Geyer spent four years in corporate development at Entegris, Inc. and began his career with Piper Jaffray investment banking. Geyer has advised on approximately 30 transactions valued in aggregate at more than $5 billion. He earned a Master of Business Administration degree from the University of Minnesota – Carlson School of Management and a bachelor’s degree in business administration from the University of Colorado at Boulder. Shea was most recently the chief financial officer of Southwest Foodservice Excellence. Previously, he served as an investment banking director at Robert W. Baird & Co., covering companies in the facility services space. Shea has advised on dozens of transactions with an aggregate deal value of approximately $10 billion. He holds a Juris doctorate from the University of Wisconsin Law School, and a bachelor’s degree in business administration from the University of Wisconsin – Madison, and is a CPA. Recent Piper Jaffray industrials assignments include advising Industrial Container Services, a portfolio company of Aurora Capital on its sale to Centerbridge Partners L.P.; Arctic Glacier Group Holdings, Inc., a portfolio company of H.I.G. Capital on its $723 million sale to The Caryle Group; Evans Delivery Company, a portfolio company of AEA Investors SBF on its sale to Calera Capital; Unishippers Global Logistics, a portfolio company of Ridgemont Equity Partners on its merger with Worldwide Express, a portfolio company of Quad-C Management; Arrow Tru-Line Holdings, Inc., a portfolio company of Long Point Capital on its sale to Sun Capital Partners; and Universal Lubricants, LLC, a portfolio company of Pegasus Capital Advisors on its sale to Clean Harbors, Inc. Piper Jaffray Companies (NYSE: PJC) is a leading investment bank and asset management firm. Securities brokerage and investment banking services are offered in the U.S. through Piper Jaffray & Co., member SIPC and FINRA; in Europe through Piper Jaffray Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Jaffray Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Asset management products and services are offered through five separate investment advisory affiliates―U.S. Securities and Exchange Commission (SEC) registered Advisory Research, Inc., Piper Jaffray Investment Management LLC, PJC Capital Partners LLC and Piper Jaffray & Co., and Guernsey-based Parallel General Partners Limited, authorized and regulated by the Guernsey Financial Services Commission.


News Article | May 16, 2017
Site: www.businesswire.com

SAN RAMON, Calif.--(BUSINESS WIRE)--24 Hour Fitness USA, Inc. announced today that Chris Roussos has been named Chief Executive Officer. 24 Hour Fitness® is owned by AEA Investors, Ontario Teachers’ Pension Plan and Fitness Capital Partners. During his career, Roussos has driven the success of fast-growth, multi-unit companies. Most recently, he served as CEO of Epic Health Services, and his rise from business entrepreneur to head of private-equity backed companies has earned industry recognition. Roussos brings all of his talents, a passion for fitness and mission-based companies to his new role with 24 Hour Fitness. “I am elated to join such a strong company with an extremely talented executive team and enthusiastic, driven team members,” said Chris Roussos, CEO, 24 Hour Fitness. “24 Hour Fitness is well-positioned for future growth, and I look forward to the collaboration that will help us to achieve future success. I’d like to thank the Board of Directors and leaders of 24 Hour Fitness for this opportunity to lead such a revered company.” Frank Napolitano, President, 24 Hour Fitness, said, “Chris is a strong, engaging leader with a proven record for driving results at growth companies. He has tremendous energy and a vision for our company that gives us continuity as we continue on our path to greater success.” Headquartered in San Ramon, Calif., 24 Hour Fitness is a leading health club industry pioneer, serving nearly 4 million members in over 400 clubs across the U.S. For more than 30 years, the company has been dedicated to helping members change their lives and reach their individual fitness goals. With convenient club locations, personal training services, popular GX24® studio classes and a variety of strength, cardio and functional training equipment, 24 Hour Fitness offers fitness solutions for everyone. Please visit 24hourfitness.com for more information and to find the club nearest you.


News Article | April 20, 2017
Site: motherboard.vice.com

You might not remember your first time smoking weed. But you'll remember the first time smoking weed made you freak the fuck out. I was at a friend's house five years ago, curled into a ball after three hits of unequivocally good weed. My brain loomed in and out of consciousness. I was scared. Every few seconds, the room would turn black. I could feel my heart about to burst, and eventually, I succumbed to a comatose-like sleep. It wasn't like other times, and it sucked. Marijuana-induced anxiety is weed culture's Bigfoot—an urban legend that's perpetuated by hearsay, rather than fact. Everyone knows someone whose friend's cousin had a bad trip. ("But like, weed is really good for anxiety, right?"). As a result, the truth of the matter is muddled, and discussing reefer madness can actually make you feel insane. "I puked some indeterminate number of times. Then I basically just lay down on the tile floor. Some part of me was aware, the whole time, that I was just way too high, and it would eventually pass," one person told me about their experience. "I woke up on the bathroom floor in the morning. I felt extremely bad." "My boyfriend and I had tickets to a Kate Nash concert and smoked a joint before heading out," said another. "I remember feeling kind of floaty on the cab ride over—almost like I wasn't fully in my body…Then, during the opener, the room started to go dizzy and I suddenly couldn't see or hear anything. The next thing I remember is waking up on the floor several minutes later, a crowd of people hovering around me, feeling like I'd died." "I wasn't right for the next three days," one person who developed a later anxiety disorder told me. "My friends still talk about this event and we laugh, but that experience fucked me up and I never smoked weed again. And never will." I spoke to dozens of people whose symptoms were mostly the same: anxiety, distorted vision or hearing, dizziness, and blacking out. These aren't the nice effects of weed, mind you. And as someone with an anxiety disorder, I can tell you they feel a lot like a panic attack. Thanks in part to stringent marijuana laws, it's been difficult for researchers to gather data that isn't only self-reported. But it's not clear whether weed jumpstarts anxiety disorders, and the association is tenuous. When existing studies on this topic were reevaluated, and other anxiety stressors were controlled for, an almost insignificant amount of people showed a link between marijuana use and anxiety development. Research based on longitudinal data from a National Epidemiologic Survey on Alcohol and Related Conditions, which included interviews with 34,653 participants, also found negligible evidence that weed can catalyze anxiety. Still, thanks in part to stringent marijuana laws, it's been difficult for researchers to gather data that isn't only self-reported. Things like cannabis strain, for instance, which can determine the type of high that someone gets, are impossible to standardize in large studies. "It's not just whether or not a person has a genetic risk factor. It's really looking at the expression of those genes, and that's brought on by environmental factors that change the way genes are expressed," April Thames, an assistant professor at the University of California, Los Angeles' Department of Psychiatry and Biobehavioral Sciences, told me. "It's conceivable that the use of these substances could impact one's trajectory to develop anxiety, but need there needs to be more research." For people who already have anxiety disorders, it's a little different. Stress and anxiety are brother and sister—controlling one can help the other. A prominent theory suggests that naturally occurring cannabinoids in our brains can be produced in response to stress hormones. These molecules, in turn, may disrupt the amygdala, a region near the base of our brain that contributes to anxious feelings when overstimulated, according to a 2016 study published in the Journal of Neuroscience. It should be noted, however, that this was an animal study, which affects its ability to reliably predict these same results in humans. Another study, published one year earlier in Neuropsychopharmacology Reviews, also linked cannabinoids, specifically anandamide (AEA) and 2-arachidonoylglycerol (2-AG), to stress responses. It stated that certain cannabinoid receptors interact with these molecules to regulate stress. Based on this research, it's been theorized that when tetrahydrocannabinol, or THC—the psychoactive compound in weed that gets you high—binds with specific brain receptors, feelings of anxiety can either be increased or decreased. And for some people, smoking weed with higher levels of THC can induce symptoms common with anxiety. "If someone has a history of anxiety, panic episodes, or even depression, cannabis can exacerbate those effects, according to some literature," Thames added. "There's some thought that cannabis has a connection [with making these receptors more sensitive], bringing on an anxiety-like state." Different strains of weed can also play a role. Thoughtful sellers often prescribe indica, rather than sativa, to anxiety-prone people. There are shaky genetic differences between modern Cannabis indica and Cannabis sativa, but very broadly, certain types of indica can possess higher cannabidiol (CBD) levels. CBD is a cannabinoid like THC, but is non-psychoactive, resulting in a gentler high. (As with all homeopathic medicine, your method may vary.) If one thing's for certain, it's that weed is still drastically under-researched, and we won't know if and when weed will give us a panic attack until we surpass regulatory hurdles and embrace the science. Hopefully, as marijuana laws become less draconian, psychologists will have more freedom to study its effects—positive and negative. Until then, don't feel down if weed makes you feel bad. Experiment with different strains, and at the end of the day, remember that it's supposed to make you feel good. Motherboard is nominated for three Webby Awards for Best Science YouTube Channel , Best Drama , Best Tech/Science Podcast . Please vote for us!


News Article | April 25, 2017
Site: globenewswire.com

Strong Start to 2017 with Increased Guidance due to Increased Profitability and Cash Flow Strategic MOU with Saudi Aramco Supports Leadership Position in the Middle East Implementation Underway of First-of-its-Kind Software Platform to Deliver Best Industry Solutions for Project Lifecycle Acquisition and Sale Leaseback of Deepwater Pipelay and Construction Vessel Amazon Continued Focus on Company Taking the Lead Safety Culture led to 1-year LTI Free Company Wide Company to Host Conference Call and Webcast Today at 7:30 a.m. Central Time HOUSTON, April 25, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) (“McDermott,” the “Company,” “we” or “us”) today announced financial and operational results for the first quarter ended March 31, 2017. “McDermott saw a profitable and strategic start to 2017 and I am extremely pleased with our first quarter performance.  Excellent project execution and customer alignment led to cost savings, better than anticipated closeouts and customer driven change orders, driving McDermott’s profitability.  Over the past few years, we have worked to stabilize and optimize the business and are now taking long-term strategic steps to transform McDermott for sustainability and growth,” said David Dickson, President and Chief Executive Officer of McDermott.  “During the first quarter, we signed a strategic Memorandum of Understanding (“MOU”) with Saudi Aramco for a land lease at the new maritime facility at Ras Al Khair in Saudi Arabia, which we believe strengthens our leadership position in the Middle East.  We announced the strategic acquisition and sale leaseback of the Amazon vessel to build our ultradeepwater capabilities when upgraded as planned; and we also began implementation of a first-of-its-kind project lifecycle management software platform that will leverage data and analytics to improve efficiency and productivity and create a digital twin to mirror the as-built physical state with a living, up-to-date 3D model.  This new technology will position McDermott as a valued partner for our customers from concept to decommissioning.  Additionally, with continued focus on our Taking the Lead quality and safety culture, we achieved an outstanding full year LTI-free as a company.  While there were limited material contracts awarded in our market during the quarter, we still see a solid revenue pipeline, and these strategic investments help position McDermott for continued success as the market recovers.” First quarter 2017 earnings attributable to McDermott stockholders, computed in accordance with U.S. generally accepted accounting principles (“GAAP”), were $21.9 million, or $0.08 per fully diluted share, compared to a net loss of $2.2 million, or $0.01 per fully diluted share, for the prior-year first quarter.  We generated first quarter 2017 net income of $21.9 million, or $0.08 per fully diluted share, for which there were no adjustments from GAAP, compared to an adjusted net income of $36.3 million, or $0.13 per adjusted fully diluted share, excluding restructuring charges of $6.4 million and impairment charges of $32.3 million, in the prior-year first quarter. The Company reported first quarter 2017 revenues of $519.4 million, a decrease of $209.6 million, compared to revenues of $729.0 million for the prior-year first quarter.  The key projects driving revenue for the first quarter of 2017 were the ONGC Vashishta, Saudi Aramco Long Term Agreement II (“LTA II”), KJO Hout and INPEX Ichthys projects. The decrease from the prior-year first quarter is primarily due to reduced activity on Ichthys as the project progresses through the installation phase. Our operating income for the first quarter of 2017 was $56.0 million, or an operating margin of 10.8%, compared to $36.0 million, or an operating margin of 4.9%, for the first quarter of 2016.  Our operating income for the first quarter of 2017 was $56.0 million, or an operating margin of 10.8%, for which there were no adjustments from GAAP, compared to $74.7 million, or an adjusted operating margin of 10.2%, for the first quarter of 2016, excluding the restructuring charges and impairment mentioned above.  Operating income for the first quarter of 2017 was primarily driven by fabrication and marine activity under the Saudi Aramco LTA II, marine activity on Karan-45 and progress on the Marjan power system replacement, fabrication activity on Yamal and fabrication on Abkatun-A2. These activities were partially offset by a decrease in activity on Ichthys and a decrease in active projects in AEA compared to the same quarter last year. Cash provided by operating activities in the first quarter of 2017 was $48.5 million, a decrease compared to the $59.3 million of cash provided in the first quarter of 2016. The decrease was primarily driven by higher receivable collections from Pemex in the first quarter of 2016 compared to the first quarter of 2017. We report financial results under three reportable segments consisting of (1) the Americas, Europe and Africa (“AEA”), (2) the Middle East (“MEA”) and (3) Asia (“ASA”). We also report certain corporate and other non-operating activities under the heading “Corporate and Other”. Corporate and Other primarily reflects costs that are not allocated to our reportable segments. In the first quarter of 2017, we implemented changes to our financial reporting structure to better align with how we operate the business. Corporate expenses, certain centrally managed initiatives (such as restructuring charges), impairments, year-end mark-to-market (“MTM”) pension actuarial gains and losses, costs not attributable to a particular reportable segment, and unallocated direct operating expenses associated with the underutilization of vessels, fabrication facilities and engineering resources, are no longer apportioned to our reportable segments. Those expenses are now reported under “Corporate and Other”. As of March 31, 2017, the Company’s backlog was $3.9 billion, compared to $4.3 billion at December 31, 2016. Of the March 31, 2017 backlog, approximately 85% was related to offshore operations and approximately 15% was related to subsea operations. Order intake in the first quarter of 2017 totaled $96 million, resulting in a book-to-bill ratio of 0.2x.  At March 31, 2017, the Company had bids outstanding and target projects of approximately $3.1 billion and $12.6 billion, respectively, in its pipeline that it expects will be awarded in the market through June 30, 2018.  In total, the Company’s potential revenue pipeline, including backlog, was $19.6 billion as of March 31, 2017. In the Americas, Europe and Africa (“AEA”) Area, during the first quarter of 2017, detail design and fabrication of the compression platform for the Abkatun-A2 project progressed with the project continuing to advance on schedule.  Front-end engineering and design (“FEED”) and early detailed engineering for a Caribbean gas development continued throughout the quarter and is progressing ahead of plan.  During the quarter, we were awarded the Hess Penn State subsea scope, which includes installation of a rigid pipeline that is scheduled to be fabricated in our Gulfport Spoolbase and reeled onto the NO 105 for installation offshore.  The project scope also includes installation of a 4,500 foot umbilical and four electrical flying leads, fabrication and installation of two pipeline end terminations (“PLETS”) and pipeline pre-commissioning and system start-up support. In our Altamira fabrication yard, upgrades to increase skidway and loadout capabilities are substantially complete, and the blast and paint facility foundations and framing have been installed. These upgrades are on track for completion early in the second quarter of 2017. In the Middle East (“MEA”) Area, fabrication activity increased steadily through the first quarter, with the Jebel Ali and Dammam facilities operating at high levels of utilization.  Regional marine assets continued to operate in Qatar, Saudi Arabia and the Khafji Neutral Zone.  Qatar marine activity was focused on the RasGas Flow Assurance and Looping project, with the umbilical installation scope completed ahead of schedule.  Additionally, the DLV 2000 has now relocated to the Middle East, where she is expected to remain busy on existing contracts for most of 2017.  Installation of the KJO Hout structures was completed during the quarter, with pipeline activity and platform hook up and commissioning still remaining.  Project completion is still expected in the second quarter of 2017.  Engineering and procurement on the Saudi Aramco Lump Sum LTA II project are in the final stages, with focus now transitioning to fabrication.  Progress on the three Saudi Aramco projects awarded in the second quarter of 2016 remains on target.  The Safaniya Phase 5 and 4 Jackets and 3 Observation Platforms projects are in the engineering and procurement phases, with both slightly ahead of the overall planned progress. The Area’s exceptional QHSES performance was maintained through the quarter, now reaching 54 million man hours lost time incident (“LTI”) free. In the Asia (“ASA”) Area, during the first quarter of 2017, the LV 108 carried out subsea construction and pre-commissioning works to prepare for the arrival of the floating facilities on the INPEX Ichthys project.  Also on Ichthys, we continued working collaboratively with INPEX and the supplier to rectify the subsea connector component issue identified in January 2017.  Engineering, procurement and fabrication of the pre-lay structures, in-line tees (“ILTs”) and PLETs for the Woodside Greater Western Flank Phase 2 pipeline project commenced in February, and the project is progressing on schedule.  In India, the ONGC Vashishta project continues to achieve significant progress with the completion of the shallow water section of pipelines and umbilical installation by the DB 30.  The fabrication of pipe stalks for the deepwater pipelay was completed utilizing McDermott’s mobile spoolbase in our consortium partner Larsen & Toubro’s fabrication yard in Kattupalli, along with the first and second loadouts onboard the NO 105.  The NO 105 also completed the installation of the first two deepwater pipeline sections and continues to install the remaining two.  The DB 30 is scheduled to mobilize at the end of April 2017 for the Brunei Shell Petroleum offshore pipelines installation.  In our Batam fabrication yard, fabrication of the modules for the Yamal LNG project is reaching the final completion stage with sailaway scheduled in April 2017.  Also in Batam, the fabrication of 14 jackets for Saudi Aramco is progressing well, with 3 of the 14 jackets complete and sailed on a fast transport vessel to Ras Tanura, Saudi Arabia. In the first quarter of 2017 for Corporate and Other, costs were mainly attributable to selling, general, and administrative costs of $12.9 million and unallocated direct operating expenses of $27.3 million. Unallocated direct operating expenses were primarily driven by the underutilization of marine assets which incurred less than standard activity during the first quarter. These expenses were offset by a gain of $3.4 million on the sale of certain thrusters. The increase in 2017 guidance is mainly attributable to increased profitability and cash flow due to closeouts from excellent project execution in the first quarter of 2017, as well as customer driven change orders awarded this quarter.  While we expect change orders, close-outs and settlements to continue as part of our normal business activities, the period in which they are recognized is largely driven by the finalization of agreements with customers and suppliers and, as a result, is difficult to predict.  We previously reported it was reasonably possible costs on the INPEX Ichthys project could increase by an additional $10 million due to a failure identified in a supplier-provided subsea-pipe connector component, which had previously been installed. However, we have continued to mitigate the $10 million risk and now believe the range of reasonably possible additional costs has decreased to $5 million. Costs forecasted under Corporate and Other include $115 million of unallocated direct operating expenses resulting from the expected underutilization of our marine assets during 2017. Weighted average common shares outstanding on a fully diluted basis were approximately 282.3 million and 239.1 million for the quarters ended March 31, 2017 and 2016, respectively.  Additional shares of 38.0 million related to the Tangible Equity Units (“TEUs”), as well as other potentially dilutive shares, were included in the quarterly dilution calculation for the quarter ended March 31, 2017.  Subsequent to quarter end, on or about April 3, 2017, we delivered 40.8 million shares of our common stock related to the settlement of the TEUs. McDermott has scheduled a conference call and webcast related to its first quarter 2017 results today at 7:30 a.m. U.S. Central Time.  Interested parties may listen over the Internet through a link posted in the Investor Relations section of McDermott’s website. A replay of the webcast will be available for seven days after the call and may be accessed by dialing (855) 859-2056, Passcode 2104294. In addition, a presentation will be available on the Investor Relations section of McDermott’s website that contains supplemental information on McDermott’s financials, operations and 2017 Guidance. McDermott is a leading provider of integrated engineering, procurement, construction and installation (“EPCI”), front-end engineering and design (“FEED”) and module fabrication services for upstream field developments worldwide. McDermott delivers fixed and floating production facilities, pipelines, installations and subsea systems from concept to commissioning for complex Offshore and Subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons.  Our customers include national and major energy companies.  Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 13,500 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver.  McDermott has served the energy industry since 1923, and shares of its common stock are listed on the New York Stock Exchange. To learn more, please visit our website at www.mcdermott.com This press release includes several “non-GAAP” financial measures as defined under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), but believe that certain non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of those operations. Non-GAAP measures are comprised of the total and diluted per share amounts of adjusted net income (loss) attributable to the Company and adjusted operating income and operating income margin for the Company, in each case excluding the impact of certain identified items.  The excluded items represent items that our management does not consider to be representative of our normal operations.  We believe that total and diluted per share adjusted net income (loss) and adjusted operating income and operating margin are useful measures for investors to review because they provide a consistent measure of the underlying financial results of our ongoing business and, in our management’s view, allows for a supplemental comparison against historical results and expectations for future performance. Furthermore, our management uses adjusted net income (loss) and adjusted operating income as a measure of the performance of our operations for budgeting and forecasting, as well as employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for operating income, net income or other data prepared and reported in accordance with GAAP and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP. The Forecast non-GAAP measures we have presented in this press release include forecast free cash flow, adjusted free cash flow and EBITDA, in each case excluding the impact of certain identified items. We believe these forward-looking financial measures are within reasonable measure.  We define “free cash flow” as cash flows from operations less capital expenditures.  We believe investors consider free cash flow as an important measure, because it generally represents funds available to pursue opportunities that may enhance shareholder value, such as making acquisitions or other investments.  Our management uses free cash flow for that reason.  Additionally, adjusted free cash flow represents free cash flow plus cash expected as a result of the sale leaseback arrangement for the acquisition of the Amazon vessel.  We define EBITDA as net income plus depreciation and amortization, interest expense, net, and provision for income taxes.  We have included EBITDA disclosures in this press release because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry.  Our management also uses EBITDA to monitor and compare the financial performance of our operations.  EBITDA does not give effect to the cash that we must use to service our debt or pay our income taxes, and thus does reflect the funds actually available for capital expenditures, dividends or various other purposes.  In addition, our presentation of EBITDA may not be comparable to similarly titled measures in other companies’ reports.   You should not consider EBITDA in isolation from, or as a substitute for, net income or cash flow measures prepared in accordance with U.S. GAAP. Reconciliations of these non-GAAP financial measures and forecast non-GAAP financial measures to the most comparable GAAP measures are provided in the tables set forth at the end of this press release. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, bids and change orders outstanding, target projects and revenue pipeline, to the extent these may be viewed as indicators of future revenues or profitability, our beliefs with respect to the expected benefits to be derived from recent strategic activities, including the MOU signed with Saudi Aramco, the planned upgrades to the Amazon and the implementation of the project lifecycle management software platform, the expected scope, execution and timing associated with the projects discussed, the expected timing of upgrades to our Altamira fabrication yard, the expected utilization of the DLV 2000, McDermott’s earnings and other guidance for 2017 and expectations related to the guidance, expectations with respect to change orders, close-outs and settlements,  our expectations with respect to the range of additional costs on the Ichthys project related to the subsea-pipe connector component issue identified in January 2017 and the expected underutilization of our marine assets in 2017. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings.  If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected.  You should not place undue reliance on forward looking statements.  For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


News Article | May 5, 2017
Site: www.greentechmedia.com

TWiB: All You Need to Know About Batteries in a Dozen Tweets Is there a solid-state battery in your EV future?  Not unless you are less than 50 years old (assumption: life expectancy=70). I made it. Toshiba has turned down pre-emptive bids for its Swiss-based smart meter group Landis+Gyr, hoping for a higher price at auction, for which bankers have begun preparing debt packages of around $1 billion, people familiar with the matter said. Buyout group CVC and Japan's industrial conglomerate Hitachi several weeks ago offered to buy Landis+Gyr for almost $2 billion, and another private equity group also made an offer earlier this year, but both were declined, the sources said. Toshiba is instead waiting for tentative offers to come in by a May 22 deadline, they said, adding that groups including Advent, AEA, BC Partners, Bain, Blackstone, Carlyle, Cinven, CD&R, Onex and Triton are expected to bid. Toshiba is instead waiting for tentative offers to come in by a May 22 deadline, they said, adding that groups including Advent, AEA, BC Partners, Bain, Blackstone, Carlyle, Cinven, CD&R, Onex and Triton are expected to bid. Three French companies have emerged as the most prolific venture capital dealmakers for new energy technologies as the country starts to seek out low-polluting alternatives for its aging nuclear reactors. Engie SA, Demeter Partners SA and Total SA participated in more green-energy deals than any other venture capital firms last year, according to the most recent data compiled by Bloomberg New Energy Finance. While the $62.3 million that French funds put into the industry is a fraction of the overall $7.5 billion VCs invested in green energy, the number of deals indicates a budding community of early-stage financiers outside Silicon Valley. Even as Electricite de France SA seeks to prolong the lives of aging nuclear reactors, the leading presidential contender is pushing for a shift toward renewables and companies are gearing up to make bigger investments in wind and solar farms. The VC funds are backing technologies that modernize the power grid to cope with power supplies that vary with the weather and can accommodate more electric mobility. Even as Electricite de France SA seeks to prolong the lives of aging nuclear reactors, the leading presidential contender is pushing for a shift toward renewables and companies are gearing up to make bigger investments in wind and solar farms. The VC funds are backing technologies that modernize the power grid to cope with power supplies that vary with the weather and can accommodate more electric mobility. Inside Climate News: U.S. Wind Energy Installations Surge -- a New Turbine Rises Every 2.4 Hours Every two and a half hours, workers installed a new wind turbine in the United States during the first quarter of 2017, marking the strongest start for the wind industry in eight years, according to a new report by the American Wind Energy Association (AWEA) released on May 2. "We switched on more megawatts in the first quarter than in the first three quarters of last year combined," Tom Kiernan, CEO of AWEA, said in a statement. Nationwide, wind provided 5.6 percent of all electricity produced in 2016, an amount of electricity generation that has more than doubled since 2010. Much of the demand for new wind energy generation in recent years has come from Fortune 500 companies including Home Depot, GM, Walmart and Microsoft that are buying wind energy in large part for its low, stable cost. Nationwide, wind provided 5.6 percent of all electricity produced in 2016, an amount of electricity generation that has more than doubled since 2010. Much of the demand for new wind energy generation in recent years has come from Fortune 500 companies including Home Depot, GM, Walmart and Microsoft that are buying wind energy in large part for its low, stable cost. Yahoo Finance: FuelCell Energy Announces Closing of $15.4 Million Public Offering of Common Stock and Warrants FuelCell Energy, a global leader in delivering clean, innovative and affordable fuel cell solutions for the supply, recovery and storage of energy, announced today the completion of an underwritten public offering of (i) 12,000,000 shares of its common stock, (ii) Series C warrants to purchase 12,000,000 shares of its common stock and (iii) Series D warrants to purchase 12,000,000 shares of its common stock, for gross proceeds of approximately $15.4 million, at a public offering price of $1.28 per share and accompanying warrants.  Total net proceeds to the Company were approximately $13.8 million.  FuelCell Energy intends to use the net proceeds from this offering for project development, project financing, working capital and general corporate purposes.  Oppenheimer & Co. Inc. is acting as the sole book-running manager for the offering.


News Article | February 21, 2017
Site: globenewswire.com

Fourth Quarter Order Intake Maintains Leading Position in Middle East with 2016 Book-to-Bill of 1.0x $4.3B in Backlog and Schedule Responsiveness and Flexibility Drive Higher Guidance Profitable Full-Year 2016 Result of Strong Execution and Focus on Cost Management Proven Success of One McDermott Way Company to Host Conference Call and Webcast Today at 7:30 a.m. Central Time HOUSTON, Feb. 21, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) (“McDermott,” the “Company,” “we” or “us”) today announced financial and operational results for the fourth quarter and full-year ended December 31, 2016. 1 Adjusted Operating Income includes the following adjustments to GAAP Operating Income: 2 Adjusted Net Income includes the adjustments to GAAP Operating Income mentioned above and the following adjustment for non-operating activity: 3 Tax effects of Non-GAAP adjustments represent the tax impacts of the adjustments during the period.  The Non-GAAP adjusting items are primarily attributable to tax jurisdictions in which we currently do not pay taxes and, therefore, no tax impact is applied to them.  For the Non-GAAP adjusting items in jurisdictions where taxes are paid, the tax impacts on those adjustments are computed, individually, using the statutory tax rate in effect in each applicable taxable jurisdiction. 4 The calculations of total and per share adjusted net income and adjusted operating income and margins are shown in the appendix entitled “Reconciliation of Non-GAAP to GAAP Financial Measures.”  The appendix also includes additional information related to the adjustments mentioned above. “I am extremely pleased to report a profitable full-year 2016, despite the prolonged downturn.  Our 2016 operational and financial performance is a direct reflection of the changes made over the past three years.  The fourth quarter was an excellent quarter operationally, with strong order intake of $1 billion and ending backlog of $4.3 billion.  Unfortunately, net income ended in a slight loss due to an increase in the estimated costs on our INPEX Ichthys project in Australia.  This increase represents costs to replace failed subsea-pipe connector components which were a standard design and supplied by a reputable supplier.  Despite the increased costs, the project remains in a profitable position.  Our top priority is collaborating with the customer and supplier to replace the failed components and maintaining the agreed project schedule,” said David Dickson, President and Chief Executive Officer of McDermott. “2016 has proven to be a pivotal year for McDermott, as we turned the corner from stabilizing and optimizing the business to focusing on growth and building a sustainable, profitable business for the future.  Our strategic initiatives such as One McDermott Way and Taking the Lead have made great strides this year, as seen through a Middle East customer approving work share with fabrication in our Batam fabrication yard and our Middle East Area reaching an impressive 48 million man-hours LTI free.  Looking forward to 2017, we plan to build upon the successes of 2016, and we began the year by enhancing our current fleet through the strategic purchase and subsequent sale leaseback of the Amazon.  In 2017, we will continue to build upon our strengthened relationships by providing customer-driven solutions centered on our engineering expertise, vertically integrated capabilities and in-market presence, while we also increase our focus on technology and grow in our key markets as we prepare for the upturn,” Dickson said. Fourth quarter 2016 earnings attributable to McDermott stockholders, in accordance with U.S. generally accepted accounting principles (“GAAP”) were a net loss of $0.5 million, or $0.00 per fully diluted share, compared to a net loss of $18.7 million, or $0.08 per fully diluted share, for the prior-year fourth quarter.  We generated fourth quarter 2016 adjusted net income of $5.6 million, or $0.02 per adjusted fully diluted share, excluding restructuring charges of $0.6 million, an impairment loss of $10.9 million related to a marine asset and the year-end non-cash MTM pension gain of $5.4 million, compared to an adjusted net income of $15.3 million, or $0.05 per adjusted fully diluted share, excluding restructuring charges of $8.7 million and the year-end non-cash MTM pension loss of $26.0 million, in the prior-year fourth quarter.  This quarter, we recognized a reduction of $13.0 million in income tax expense as a result of a change in valuation allowances associated with deferred tax assets recognized due to improving results in Saudi Arabia and Mexico.  Additionally, we now operate under a tax holiday in Malaysia which further reduced income taxes in the fourth quarter and will also benefit future periods. The Company reported fourth quarter 2016 revenues of $641.8 million, a decrease of $25.6 million, compared to revenues of $667.4 million for the prior-year fourth quarter.  The key projects driving revenue for the fourth quarter of 2016 were the INPEX Ichthys, Saudi Aramco Long Term Agreement II (LTA II), KJO Hout and ONGC Vashishta projects. The decrease from the prior-year fourth quarter is primarily due to Pemex PB Litoral project and the additional costs on the INPEX Ichthys project caused by the failed subsea-pipe connector components, partially offset by increased activity on the Saudi Aramco LTA II Lump Sum projects. Our operating income for the fourth quarter of 2016 was $6.3 million, or an operating margin of 1.0%, compared to $16.3 million, or an operating margin of 2.4%, for the fourth quarter of 2015.  Our adjusted operating income for the fourth quarter of 2016 was $12.3 million, or an adjusted operating margin of 1.9%, excluding the restructuring charges, impairment loss and MTM pension adjustment mentioned above, compared to $51.0 million, or an adjusted operating margin of 7.6%, for the fourth quarter of 2015, excluding the restructuring charges and pension losses mentioned above.  Operating income for the fourth quarter of 2016 was primarily driven by marine activity on the INPEX Ichthys, Saudi Aramco LTA II and Pemex Ayatsil-C projects and offset by the increase in estimated costs at completion on our INPEX Ichthys project in Australia. During January 2017, we identified failures in supplier-provided, subsea-pipe connector components previously installed on the INPEX Ichthys project.  These failed components were a standard design provided by a reputable supplier.  As a result, we have determined that our estimated costs at completion for the project, as a whole, will increase by $34 million due to costs attributable to replacing the failed components.  These increased costs reduced fourth quarter operating income by $31 million, and net income by $25 million after taxes. Cash provided by operating activities in the fourth quarter of 2016 was $52.6 million, a decrease compared to the $60.6 million of cash provided in the fourth quarter of 2015. This was primarily driven by lower collections on the INPEX Ichthys project compared to the fourth quarter of 2015. Net income attributable to McDermott stockholders, in accordance with GAAP, for the full-year of 2016 was $34.1 million, or $0.12 per fully diluted share, compared to a net loss of $18.0 million, or $0.08 per fully diluted share, for the full-year of 2015.  For the full-year 2016, adjusted net income was $89.4 million, or $0.31 per fully diluted share, excluding restructuring charges of $11.3 million, impairment charges of $55.0 million, a gain of $5.0 million on the exit from our joint venture with THHE and a gain of $5.4 million non-cash MTM pension adjustment, compared to adjusted net income of $71.2 million, or $0.25 per adjusted fully diluted share, excluding restructuring charges of $40.8 million, impairment charges of $6.8 million, a legal settlement of $16.7 million and non-cash MTM pension loss of $26.0 million during the full-year of 2015.  Our income tax provision for the full-year of 2016 included approximately $13.0 million of tax adjustments recorded during the fourth quarter of 2016 as a result of a change in valuation allowances associated with deferred tax assets recognized due to improving results in Saudi Arabia and Mexico.  Additionally, we now operate under a tax holiday in Malaysia which further reduced income taxes in 2016 and will also benefit future years. The Company reported revenues of $2,636.0 million for the full-year of 2016, a decrease of $434.3 million, compared to $3,070.3 million of 2015 revenues. The decrease was primarily due to lower activity on our INPEX Ichthys project and completion of the 2015 campaign of the Brunei Shell Pipeline Replacement project. Revenue for the full-year of 2016 was primarily driven by the INPEX Ichthys, Saudi Aramco LTA II and Marjan power system replacement, and the RasGas Flow Assurance and Looping projects. Our operating income for the full-year of 2016 was $142.3 million, or an operating margin of 5.4%, compared to $112.7 million, or an operating margin of 3.7%, for the comparable 2015 period.  Our adjusted operating income for the full-year of 2016 was $203.1 million, or an adjusted operating margin of 7.7%, excluding the restructuring charges, impairment charges and pension MTM gain mentioned above, compared to $203.0 million, or an adjusted operating margin of 6.6%, for the full-year 2015, excluding the restructuring charges, impairment loss, legal settlement and pension MTM loss mentioned above.  Operating income for the full-year of 2016 was primarily driven by marine activity on the INPEX Ichthys, Saudi Aramco’s LTA II, Marjan power system replacement, and 12 Jackets projects, as well as a pipeline repair project in the Middle East region.  Our operating margin for the full-year of 2016 was higher due to project execution driven improvements, final closeouts, change orders driven by alignment with customer needs and the full impact of our cost restructuring programs. Cash provided by operating activities in the full-year of 2016 was $178.2 million, an increase compared to the $55.3 million of cash provided in 2015.  Overdue payments received from Pemex during the first quarter, as well as steady collections in the Middle East, positively impacted cash provided by operating activities for 2016. 1 The calculations of segment adjusted operating income and margins are shown in the appendix entitled “Reconciliation of Non-GAAP to GAAP Financial Measures.” As of December 31, 2016, the Company’s backlog was $4.3 billion, compared to $3.9 billion at September 30, 2016. Of the December 31, 2016 backlog, approximately 84% was related to offshore operations and approximately 16% was related to subsea operations. Order intake in the fourth quarter of 2016 totaled $1.0 billion, resulting in a book-to-bill ratio of 1.7x, with order intake of $2.7 billion and a book-to-bill ratio of 1.0x for the year ended December 31, 2016.  At December 31, 2016, the Company had bids outstanding and target projects of approximately $2.2 billion and $14.4 billion, respectively, in its pipeline that it expects will be awarded in the market through March 31, 2018.  In total, the Company’s potential revenue pipeline, including backlog, was $20.9 billion as of December 31, 2016. The Americas, Europe and Africa (“AEA”) Area, during the fourth quarter of 2016, completed the successful installation of the Pemex Ayatsil-C 7,500 ton jacket in the Bay of Campeche, Mexico, demonstrating customer alignment and proven execution. The Ayatsil-C jacket was launched off the McDermott I-600 barge and installed by the DB50.  Also in Mexico, fabrication of the compression platform on the Abkatun A-2 project commenced in October and is proceeding ahead of plan. The project remains on track to meet the 900-day execution schedule.  Strategically focusing on our engineering expertise as an enabler and building our in-market capabilities, we expanded our Mexico City office by hiring 80 engineers and support resources working to the One McDermott Way. In our Altamira fabrication yard, upgrades commenced to increase skidway and loadout capabilities and provide covered blast and paint facilities and are expected to be completed in April 2017.  Front-end engineering and design (“FEED”) and early detailed engineering for a Caribbean gas development has continued throughout the quarter and remains on track to meet the agreed deliverables; and a FEED project for a SURF facility off the coast of East Africa was substantially completed by year-end and is in the final stages of closeout. In the Middle East (“MEA”) Area, fabrication activity in the fourth quarter was driven by Saudi Aramco projects and the KJO Hout jacket and deck structures.  Marine operations continued in both Saudi Arabia and Qatar.  Execution of the Saudi Aramco Lump Sum LTA II project, awarded in 2015, is progressing according to schedule, and is in the fabrication phase, with work being shared between the Jebel Ali and Dammam fabrication facilities. Cooperation and consistency between all facilities is driven by our One McDermott Way and as a result, a Middle East customer approved work share on a specific project for the fabrication of jackets in our Batam yard. The KJO Hout Jacket and topside will be installed and pre-commissioned in the first quarter of 2017; the project is more than 55% complete and is expected to be fully complete in the second quarter of 2017. The Marjan power systems project continued to meet key milestones in line with client requirements, as did the three Saudi Aramco jobs awarded in the second quarter of 2016. The three jobs awarded in the second quarter are in the preliminary stages of fabrication, with activity expected during 2017. Fabrication and installation of the Bul Hanine jackets is complete, with minor closeout work remaining.  In Qatar, we focused on offshore work for the RasGas Flow Assurance and Looping project, which remains on schedule. The MEA area also continued to demonstrate McDermott’s Taking the Lead initiative, reaching an impressive 48-million man-hours lost time incident (“LTI”) free. In the Asia (“ASA”) Area, the INPEX Ichthys project continues to progress as we work collaboratively with the customer and supplier to rectify the subsea connector component issue and expect to keep in line with the overall project schedule.  The DLV 2000 completed her second campaign on the project alongside the CSV 108.  During the fourth quarter, the DLV 2000 installed infield umbilicals, subsea structures and subsea spools.  The Woodside Greater Western Flank Phase 2 pipeline project continues with the engineering, procurement and preparations for the start of fabrication in the first quarter of 2017. The Vashishta project for ONGC continues to achieve significant progress, commencing the offshore phase of the project with the mobilization of the DB30 and supporting fleet. Fabrication of the subsea structures continues in line with the project schedule at Larsen & Toubro, our consortium partner’s, fabrication yard in Kattupalli.  The mobilization of McDermott’s mobile spoolbase was completed, and production of the pipeline stalks has progressed well in preparation for the arrival of the NO 105 in the first quarter of 2017 when she is scheduled to install the deepwater pipeline sections. On the Brunei Shell Petroleum transportation and installation project, pre-installation survey for the pipelines was completed in the fourth quarter of 2016.  The project continues to prepare for the offshore campaign scheduled to commence in the second quarter of 2017. Fabrication of the Yamal LNG modules in our Batam yard is progressing well, with 89% progress achieved.  Also in Batam, fabrication and loadout of the subsea modules for the TechnipFMC Jangkrik project was completed in the fourth quarter with a total weight of approximately 3,100 tonnes. Early in 2017, we completed the purchase of a newly built deepwater pipelay and construction vessel named the Amazon. The vessel is equipped with 49,514 square feet (4,600 square meters) of deck space complete with two 440-ton (400-tonne) cranes, a service speed of 12 knots and accommodation for up to 200 crew and service staff. We plan to upgrade the vessel to address the ultradeepwater market with a state-of-the-art J-lay system and the latest vessel technology. In the near term, we plan to make minor capital expenditure investments to bring the vessel up to Company standards and use the vessel on existing construction and pipelay projects. In February of 2017, funding for the vessel acquisition was secured through a sale and leaseback arrangement under which we have control of the vessel in exchange for a daily charter-hire rate. The planned upgrade to the state-of-the-art J-lay system and related financing are expected to be considered in line with market conditions. All remaining activities for the McDermott Profitability Initiative (“MPI”) were completed in the third quarter of 2016.  MPI resulted in annualized cash savings of $150 million. All remaining activities for the Additional Overhead Reduction (“AOR”) program, which was initiated in the fourth quarter of 2015, were completed in the fourth quarter of 2016 and achieved in-year cash savings of $46 million and annualized cash savings of $51 million. Our restructuring costs for the fourth quarter of 2016 were $0.6 million and $11.3 million for the full-year of 2016. ~ = approximately 1 Our forecasted U.S. GAAP net income attributable to the Company does not include any amount representing forecasted pension actuarial gain or loss, because we have no basis to estimate pension actuarial gain or loss amounts for the forecast period and cannot estimate such amount without unreasonable effort.   2 Net Interest Expense is gross interest expense less capitalized interest and interest income. 3 The calculations of EBITDA, Free Cash Flow and Adjusted Free Cash Flow, which are Non-GAAP measures, are shown in the appendix entitled “Reconciliation of Forecast Non-GAAP Financial Measures to GAAP Financial Measures.” 4 Ending Gross Debt does not include any reduction related to debt issuance costs. In 2017, we expect higher revenue and margins driven by order intake as well as our responsiveness and flexibility in meeting customer drivers with associated rescheduling of work from 2018 into 2017.  Our expectations for capex were increased due to the purchase of the Amazon.  The Amazon purchase capex outflow will be offset by a sale and leaseback arrangement.  Our guidance for 2017 ending cash, cash from operating activities and free cash flow was negatively impacted by the additional costs associated with the failed, supplier-provided, subsea-pipe connector components on the INPEX Ichthys project.  Additionally, we are expecting negative free cash flow, primarily driven by a large use of working capital attributable to the ramp-up of the Pemex Abkatun Project and other projects in Asia and the Middle East.  The use of working capital for Abkatun is expected to be partially offset by specific project related financing.  It is reasonably possible that costs on the INPEX Ichthys project could increase by an additional $10 million due to the failed subsea-pipe connector components on the Ichthys project; however, that is not reflected in guidance at this time. Weighted average common shares outstanding on a fully diluted basis were approximately 241.3 million and 238.7 million for the quarters ended December 31, 2016 and 2015, respectively, and 284.2 million and 238.2 million for the years ended December 31, 2016 and 2015, respectively.  Common shares for the settlement of the common stock purchase contracts related to the Tangible Equity Units (“TEUs”) representing 40.8 million additional shares, as well as other potentially dilutive shares, were included on an adjusted and unadjusted basis for the year ended December 31, 2016. McDermott has scheduled a conference call and webcast related to its fourth quarter and full-year 2016 results today at 7:30 a.m. U.S. Central Time.  Interested parties may listen over the Internet through a link posted in the Investor Relations section of McDermott’s website. A replay of the webcast will be available for seven days after the call and may be accessed by dialing (855) 859-2056, Passcode 46148001. In addition, a presentation will be available on the Investor Relations section of McDermott’s website that contains supplemental information on McDermott’s financials, operations and 2017 Guidance. McDermott is a leading provider of integrated engineering, procurement, construction and installation (“EPCI”), front-end engineering and design (“FEED”) and module fabrication services for upstream field developments worldwide. McDermott delivers fixed and floating production facilities, pipelines, installations and subsea systems from concept to commissioning for complex Offshore and Subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons.  Our customers include national and major energy companies.  Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 12,400 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver.  McDermott has served the energy industry since 1923, and shares of its common stock are listed on the New York Stock Exchange. To learn more, please visit our website at www.mcdermott.com This press release includes several “non-GAAP” financial measures as defined under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of those operations. Non-GAAP measures are comprised of the total and diluted per share amounts of adjusted net income (loss) attributable to the Company and adjusted operating income and operating income margin for the Company as a whole and each of its segments, in each case excluding the impact of certain identified items.  The excluded items represent items that our management does not consider to be representative of our normal operations.  We believe that total and diluted per share adjusted net income (loss) and adjusted operating income and operating margin are useful measures for investors to review because they provide a consistent measure of the underlying financial results of our ongoing business and, in our management’s view, allows for a supplemental comparison against historical results and expectations for future performance. Furthermore, our management uses adjusted net income (loss) and adjusted operating income as a measure of the performance of our operations for budgeting and forecasting, as well as employee incentive compensation. However, Non-GAAP measures should not considered as substitutes for operating income, net income or other data prepared and reported in accordance with GAAP and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP. The Forecast non-GAAP measures we have presented in this press release include forecast free cash flow, adjusted free cash flow and EBITDA, in each case excluding the impact of certain identified items. We believe these forward-looking financial measures are within reasonable measure.  We define “free cash flow” as cash flows from operations less capital expenditures.  We believe investors consider free cash flow as an important measure, because it generally represents funds available to pursue opportunities that may enhance shareholder value, such as making acquisitions or other investments.  Our management uses free cash flow for that reason.  Additionally, adjusted free cash flow represents free cash flow plus cash expected as a result of the sale leaseback arrangement for the acquisition of the Amazon vessel.  We define EBITDA as net income plus depreciation and amortization, interest expense, net, and provision for income taxes.  We have included EBITDA disclosures in this press release because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry.  Our management also uses EBITDA to monitor and compare the financial performance of our operations.  EBITDA does not give effect to the cash that we must use to service our debt or pay our income taxes, and thus does reflect the funds actually available for capital expenditures, dividends or various other purposes.  In addition, our presentation of EBITDA may not be comparable to similarly titled measures in other companies’ reports.   You should not consider EBITDA in isolation from, or as a substitute for, net income or cash flow measures prepared in accordance with U.S. GAAP. Reconciliations of these non-GAAP financial measures and forecast non-GAAP financial measures to the most comparable GAAP measures are provided in the tables set forth at the end of this press release. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, bids and change orders outstanding, target projects and revenue pipeline, to the extent these may be viewed as indicators of future revenues or profitability, expectations and plans for 2017, the expected timing and specifications of upgrades to our Altamira fabrication yard, the expected scope, execution and timing associated with the projects discussed, the expected utilization of McDermott’s vessels and McDermott’s earnings and other guidance for 2017 and expectations related thereto. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings.  If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected.  You should not place undue reliance on forward looking statements.  For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement. McDERMOTT INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES McDermott reports its financial results in accordance with the U.S. generally accepted accounting principles (“GAAP”). This press release also includes several Non-GAAP financial measures as defined under the SEC’s Regulation G. The following tables reconcile Non-GAAP financial measures to comparable GAAP financial measures: 1 Restructuring charges were primarily associated with personnel reductions, facility closures, consultant fees, lease terminations and asset impairments. 2 Impairment Charges: 3 During the third quarter of 2016, we mutually and amicably exited our joint venture with THF, a subsidiary of THHE, in Malaysia. We sold our THF interest to THHE and recognized a $5.0 million gain is recorded in Other income (expense), net. This gain is not expected to be repeated in the future. 4 Costs related to a legal settlement of $16.7 million were recorded during the third quarter of 2015 5 Our Non-GAAP measures exclude 100% of pension actuarial loss (gain) included in our Consolidated Financial Statements. The $5.4 million gain from year-end MTM pension adjustments for the quarter and year ended December 31, 2016, and $26.0 million loss from year-end MTM pension adjustments for the quarter and year ended December 31, 2015. These adjustments are recorded in selling, general and administrative expenses in the fourth quarter of each respective year in accordance with our pension accounting policy. Actuarial gains and losses are primarily driven by changes in the actuarial assumptions, discount rates and actual return on pension assets. The $5.4 million 2016 MTM adjustment was comprised of a $4.5 million gain on our pension plan assets and $0.9 million of lower actuarial pension liabilities. The $4.5 million of MTM adjustment is the difference between $21.6 million of expected return on pension plan assets recognized during 2016 and a $26.1 million actual gain on plan assets as of December 31, 2016. The $26.0 million of 2015 MTM adjustment for actuarial loss was comprised of a $52.0 million actuarial loss on our pension plan assets, partially offset by a $26.0 million gain due to an increase in discount rates. The $52.0 million actuarial loss on our pension plan assets is the difference between $29.5 million of expected return on pension plan assets recognized during 2015 and $22.5 million of actuarial loss on plan assets as of December 31, 2015. Our non-GAAP pension adjustment does not include $1.0 million and $6.2 million of net pension benefit recognized during 2016 and 2015, respectively, related to expected return on plan assets net of interest costs for our non-contributory defined benefit pension plans. 6 Represents tax effects of Non-GAAP adjustments.  The Non-GAAP adjusting items are primarily attributable to tax jurisdictions in which we currently do not pay taxes and, therefore, no tax impact is applied to them.  For the Non-GAAP adjusting items in jurisdictions where taxes are paid, the tax impacts on those adjustments are computed, individually, using the statutory tax rate in effect in each applicable taxable jurisdiction. 7 Includes the Non-GAAP adjustments described in footnotes 1, 2, 4, and 5 above.  The $5.0 million adjustment described in footnote 3 above was excluded as the gain was reflected in Other Income (expense), net in our Consolidated Statement of Operations and thus was excluded from operating income. 8 Diluted EPS is calculated using a share count determined by whether the period has a net income or a net loss.  In the event of net income, Diluted EPS uses the fully diluted share count; however, in the event of a net loss, the potentially dilutive shares are excluded from the share count as they are anti-dilutive. 1 Segment restructuring charges excludes Corporate and other restructuring charges 2 Restructuring charges were primarily associated with personnel reductions, facility closures, consultant fees, lease terminations and asset impairments. 3 Impairment: 4 $5.4 million in gain was recorded in the quarter ended December 31, 2016, as a result of non-cash actuarial MTM adjustments related to pension plans.


News Article | February 16, 2017
Site: www.prweb.com

Spring break cash awaits a lucky educator with California Casualty’s next $2,500 Academic Award. The deadline to enter is March 10, 2017, at http://www.calcasacademicaward.com. The $2,500 Academic Award was created in 2012 to give public K-12 teachers, who often spend $500 to $1,000 of their own funds each year, a financial break buying necessities for students and projects. This will be the 13th Academic Award given since the program began. Illinois special education teacher Sharon H. will be able to set up an interactive listening center with the award she received in January. Another recent winner, Eduardo N., was able to purchase important chemistry equipment for his California high school science classes. New Jersey’s Tony M. bought exercise and workout equipment for physical education classes at the middle school where he teaches. “Working with educators for over 65 years, we’ve heard over and over how much they spend preparing their classrooms and helping students,” said California Casualty Sr. Vice President Mike McCormick. “This award is one of the many ways we show support and give thanks for what they do.” California Casualty is ready to pick up the cost for classroom supplies and materials. The deadline for the next $2,500 Academic Award is Friday, March 10, with a winner announced in April. Visit http://www.calcasacademicaward.com to enter. Eligibility requires membership in the AEA, CTA, NEA (National Education Association), or referral by a current member of the state NEA affiliate or one of our other participating educator associations including: ACSA, CASE, COSA, KASA, NASA, UAESP or UASSP. Headquartered in San Mateo, California, with Service Centers in Arizona, Colorado and Kansas, California Casualty provides auto and home insurance to educators, firefighters, law enforcement and nurses across the country. Founded in 1914, California Casualty has been led by four generations of the Brown family. To learn more about California Casualty, or to request an auto insurance quote, please visit http://www.calcas.com or call 1.800.800.9410.


News Article | February 21, 2017
Site: www.businesswire.com

TUCKER, Ga.--(BUSINESS WIRE)--GMS Inc. (NYSE:GMS) (the “Company”), a leading North American distributor of gypsum wallboard and suspended ceiling systems, announced today the launch of an underwritten secondary public offering of 6,000,000 shares of common stock by certain of the Company’s existing stockholders, including certain affiliates of AEA Investors LP (collectively, the “Selling Stockholders”). Additionally, in connection with the offering, the Selling Stockholders intend to grant to the underwriters a 30-day option to purchase up to 900,000 additional shares of common stock. The Company is not selling any shares in this offering and will not receive any proceeds from the sale of shares being sold by the Selling Stockholders in this offering. Barclays Capital Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets, LLC are acting as representatives of the underwriters and joint book-running managers for the offering. Robert W. Baird & Co. Incorporated and SunTrust Robinson Humphrey, Inc. are acting as additional joint book-running managers for the offering. Raymond James & Associates, Inc., Stephens Inc. and Wells Fargo Securities are acting as co-managers for the offering. The offering of these securities is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from: Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at (888) 603-5847 or by email at barclaysprospectus@broadridge.com; Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, by telephone at (800) 221-1037 or by email at newyork.prospectus@credit-suisse.com; or RBC Capital Markets, LLC, Attention: Equity Syndicate, 200 Vesey Street, 8th Floor, New York, NY 10281-8098, by telephone at (877) 822-4089 or by email at equityprospectus@rbccm.com. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Founded in 1971, GMS operates a network of more than 200 distribution centers across the United States. GMS’s extensive product offering of wallboard, suspended ceilings systems and complementary interior construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings.


News Article | February 23, 2017
Site: www.businesswire.com

TUCKER, Ga.--(BUSINESS WIRE)--GMS Inc. (NYSE:GMS) (the “Company”), a leading North American distributor of gypsum wallboard and suspended ceiling systems, announced today the pricing of an underwritten secondary public offering of 6,950,000 shares of common stock by certain of the Company’s existing stockholders, including certain affiliates of AEA Investors LP (collectively, the “Selling Stockholders”), at a public offering price of $29.25 per share. The offering includes an increase of 950,000 shares offered by the Selling Stockholders from the amount of shares previously announced. Additionally, in connection with the offering, the Selling Stockholders have granted to the underwriters a 30-day option to purchase up to 1,042,500 additional shares of common stock, which includes an increase of 142,500 shares from the amount of shares previously announced. The offering is expected to close on February 28, 2017, subject to the satisfaction of customary closing conditions. The Company is not selling any shares in this offering and will not receive any proceeds from the sale of shares being sold by the Selling Stockholders in this offering. Barclays Capital Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets, LLC are acting as representatives of the underwriters and joint book-running managers for the offering. Robert W. Baird & Co. Incorporated and SunTrust Robinson Humphrey, Inc. are acting as additional joint book-running managers for the offering. Raymond James & Associates, Inc., Stephens Inc. and Wells Fargo Securities are acting as co-managers for the offering. The offering of these securities is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from: Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at (888) 603-5847 or by email at barclaysprospectus@broadridge.com; Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, by telephone at (800) 221-1037 or by email at newyork.prospectus@credit-suisse.com; or RBC Capital Markets, LLC, Attention: Equity Syndicate, 200 Vesey Street, 8th Floor, New York, NY 10281-8098, by telephone at (877) 822-4089 or by email at equityprospectus@rbccm.com. A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on February 22, 2017. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Founded in 1971, GMS operates a network of more than 200 distribution centers across the United States. GMS’s extensive product offering of wallboard, suspended ceilings systems and complementary interior construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings.

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